Last night I was thinking how Satyam managed with very poor margins. Where did the money come for their operational expenses (not just salaries think new offices, business ventures in other countries etc) Most of all, if Satyam's margins were inflated I would suspect almost every other Indian company which are not all that bad. So, this margin theory has to be drilled and busted. I don't believe PwC would be party to such a big fraud. And the auditors are quite smart and so they won't let these pass by. I think there is a biger scandal that raju is probably trying to cover for. In fact this disclosure was probably triggered by Raju after he knew Merill would disclose their findings anyway... It's not as if he wanted to come clean. He was cruising on a thin line between getting caught and making a confession and he chose the later.