Partly supported
A material part is supported, but the published wording goes beyond the record.
Satyam's books overstated its cash and bank balances by Rs 5,040 crore, as its founder wrote to the board in January 2009.
It was like riding a tiger, not knowing how to get off without being eaten.
- Claim made by
- Satyam Computer Services, company statement
- Published
- 7 January 2009
- Evidence score
- 76 How it was scored
- Last reviewed
- 25 October 2026
Why this label
The letter filed by Satyam with the SEC lists inflated, non-existent cash and bank balances of Rs 5,040 crore, Rs 376 crore of non-existent accrued interest and overstated debtorsS2. The SEC said in 2011 that Satyam settled fraud charges and that the auditors' failed cash confirmation procedures let the fraud go undetectedS1. A Hyderabad court convicted the founder and others in 2015S5. These records support a large falsification of cash balances. The exact Rs 5,040 crore figure rests on the founder's own letter in the records read, and his defence later disputed the letterS3. No court or regulator figure for the cash gap was read for this review.
Current procedural position
SEC settlement with Satyam announced on 5 April 2011S1. Founder and nine others convicted on 9 April 2015, sentences suspended pending appeal on 11 May 2015S5. Appeal outcome not found as of October 2026.
Record supporting the assessment
Inflated (non-existent) cash and bank balances of Rs.5,040 crore (as against Rs. 5361 crore reflected in the books)
Satyam agreed to settle fraud charges, pay a $10 million penalty, and undertake a series of internal reforms.
failure to properly execute third-party confirmation procedures resulted in the fraud at Satyam going undetected
Conflicting or limiting record
never wrote any such letter
Evidence score: 76 of 100
The score grades how well the record establishes this assessment. It is not a score of Satyam Computer Services Limited. Score = source authority + directness + corroboration + procedural accuracy + currency + reproducibility.
| Component | Points | Max | Reason |
|---|---|---|---|
| Source authorityIs the source competent to establish the proposition? | 24 | 30 | An SEC release and a company filing, with the exact figure only in the founder's letter. |
| DirectnessDoes the source state the proposition or only discuss adjacent facts? | 15 | 20 | The letter states the figure, but the SEC release does not give a number. |
| CorroborationDo independent records support the same material point? | 11 | 15 | The SEC settlement and the conviction agree on fraud, not on the figure. |
| Procedural accuracyDoes the record settle the procedural state the claim describes? | 10 | 15 | The SEC matter is settled and the conviction is under appeal. |
| CurrencyHas the record been checked against later developments? | 6 | 10 | The appeal outcome was not found in 2025 or 2026 searches. |
| ReproducibilityCan a reader locate the passage and repeat the assessment? | 10 | 10 | Both SEC documents are public on sec.gov. |
| Total | 76 | 100 |
Timeline
Related cases
- SEC v. Satyam Computer Services Limited, and In the Matter of PwC India affiliatesUS Securities and Exchange Commission. Regulatory. Press Release 2011-82.Stage: Settled on 5 April 2011.
- Satyam settles fraud charges with a US$10 million penalty. PwC India affiliates agree to a US$6 million penaltyS1
- Central Bureau of Investigation v. B Ramalinga Raju and othersCourt of the Additional Chief Metropolitan Magistrate (special court), Hyderabad, and the Metropolitan Sessions Court, Hyderabad. Criminal. Not published.Stage: Convictions on 9 April 2015. Appeals pending with sentences suspended since 11 May 2015.
Revision history
- Assessment first published with label Partly supported.
Have a record that changes this assessment? See corrections and responses.
Sources
- S2Tier B EX-99.2 Resignation letter from Mr. B. Ramalinga RajuSatyam Computer Services (filed with the US SEC). Company filing. 7 January 2009.The founder's letter as filed by the company. It is his own account, later disputed by his defence.
- S1Tier A SEC Charges India-Based Affiliates of PWC for Role in Satyam Accounting FraudUS Securities and Exchange Commission. Regulator press release. 5 April 2011.Supports the settlements with Satyam and the PwC India affiliates. It gives no figure for the cash gap and the page read does not state admit or deny terms.
- S3Tier C The confession letter Ramalinga Raju wrote in 2009, and later deniedThe News Minute. Press report. 9 March 2015.Reports the July 2010 defence denial. It does not report how the court treated the letter.Link working, checked 25 October 2026
- S5Tier C Satyam's Raju, 9 others get bail, sentences suspended by courtBusiness Standard (Press Trust of India). Press report. 11 May 2015.Reports the April 2015 sentence and the May 2015 suspension and bail. It does not cover later appeal hearings.Link working, checked 25 October 2026
- S4Tier C Hyderabad court dismisses Satyam case convicts' appealThe News Minute. Press report. 21 April 2015.Reports an early petition rejected for lack of jurisdiction on a Monday, 20 April 2015. It gives a fine of Rs 5.5 crore each, which differs from S5. It is not a ruling on the merits.Link working, checked 25 October 2026
Other claims about Satyam Computer Services Limited
- Unresolved50Lawyers for Satyam's founder told a Hyderabad court in July 2010 that he never wrote the January 2009 confession letter.Press report, 9 March 20153 records citedFraud
- Outdated80SEBI ordered in July 2014 that Satyam's founder and others return Rs 1,849 crore in unlawful gains with interest and barred them from the securities market for 14 years.Press report, 12 May 20175 records citedMarket conduct
- Supported72A Hyderabad court convicted Satyam's founder and nine others in April 2015 and sentenced them to seven years' rigorous imprisonment.Press report, 11 May 20153 records citedFraud