Annexure: Satyam’s Founder, Chairman
and CEO, Mr. Raju’s Letter to His Board of
Directors
To The Board of Directors,
Satyam Computer Services Ltd.
From: B. Ramalinga Raju
Chairman, Satyam Computer Services Ltd.
January 7, 2009
Dear Board Members,
It is with deep regret, and tremendous burden that I am
carrying on my conscience, that I would like to bring the
following facts to your notice:
1) The Balance Sheet carries as of September 30,
2008:
a) Inflated (non-existent) cash and bank balances of Rs.
5040 crore (as against Rs. 5361 crore reflected in the
books); b) An accrued interest of Rs. 376 crore which is
non-existent; c) An understated liability of Rs. 1230
crore on account of funds arranged by me; and d) An
over stated debtors position of Rs. 490 crore (as against
Rs. 2651 reflected in the books).
2) For the September quarter (Q2), we reported a
revenue of Rs. 2700 crore and an operating margin of Rs.
649 crore (24% of revenues) as against the actual revenues
of
Rs.
2112
crore
and
an
actual
operating
margin
of
Rs.
61
crore
(3% of
revenues).
This
has
resulted
in
artificial
cash and
bank
balances
going
up
by
Rs.
588
crore
in
Q2
alone.