ASATYAM SHAREM ASUNDARAM BY SHRIRAJU420

I don't know why you guys blame Sathyam for all this. In
fact Sathyam has helped thousands of down trodden telugu
youths to come up with convincing resumes to set foot in US
and Europe. But for them, many will still be struggling as
unemployable in India. When multinationals are exploting
India, Sathyam figured a decent way to exploit the west
using attractive resumes and enhanced experience
certificates for many unqualified youth.
Sathyam has earned so much of 'Punya' by prviding
opportunity for telugu people. This punya will help them
come out of this rut gloriously. I request other Andhra IT
companies not to be perturbed by this and continue their
social service of exporting 'Manavadus' to all parts of
the world. In this hour of crisis all our andhra brothers
should remain united and help employ a lot of andhra IT
consultants as we have been doing. Jai Andhra Pradesh

A biggest Black Spot on the Book of Corporate India.


The entire industry is surprised with the activities of the
Satyam’s board. Satyam created a history in the books of
corporate India .It had a put a question mark on the Quality
factor of corporate governance followed with the quality of
financial papers prepared and audited by ICAI. Cooked
balance sheets were not made in a day or a two. In fact
Satyam along with those culprits have fooled the investors
and all the institutional investors.

The investors are the ones who rely on the financial
papers. If the Audited financial papers Audited by the ICAI
are mere audited without following the highest standards of
certifications of corporate performance. It also puts a
question mark on the bankers who were engaged with Satyam
did not even provide valid certificates and statements
regarding the accumulated interest standing in the audited
financial books.
It puts a question on the face of FIIs regarding the
quality of trust and rely they will do while doing
investments in India. Satyam’s balance sheet as on Sep 30,
2008, carries an inflated (non-existent) cash and bank
balances of Rs 5,040 corer (as against Rs 5,361 reflected in
the books).In the letter to the SEBI the chairman revealed
that the gap in the balance sheet has arisen purely on
account of inflated profits over a period of last several
years.

It is very clear that all these discrepancies did not
happen in a small time frame. The platform of this fraud
practice was for a long time. As per the last audited
financial balance sheet the bankers have shown that the
amount of investment of Rs.4500cr and now the entire this
report and figure is declared to be cooked. The bankers have
really played the song with the culprits of Satyam.The
cooking up of this balnce sheet throws down a threat to
future corporate investments .The quality of the auditors
and their process of work makes doubtful for future
investments in India.

The cooking up of the balance sheet was not made alone by
the chairman .The entire team of The independent directors
,the board of directors the auditors who certified the
financial statements and the bankers who certified the
banking financial documents should be dragged on the street
and severe criminal actions should be taken.

They have played with the trust not only of the investors
but also with the dignity and the reliability of the
corporate position of Indian companies across all boards.

If one will not trust on the Audited financial papers along
with the statements provided by bankers then on which
documents the ordinary investors and other financial
investors will take decisions on investments. The type of
internal control which was running in Satyam revel now that
the entire process was a fraud practice. This Black spot
created on the Book of Corporate India will effect future
investments in India along with the quality of corporate
governance required to be implemented in future to protect
the investors across all segment. The entire blame cannot be
passed to the chairman, it is joint effort of all the
members who managed the management also with the bankers and
the auditors who certified the financial papers for so many
years.

The SEBI along with the government should not only take
actions against the entire team but also should make further
laws regarding stringent declaration by the promoters
regarding their holdings9whether pledged and other such
details. Satyam have made complete collapse of processes,
customs, policies, laws and institutions affecting the way a
corporation is directed, administered or controlled. It
damaged the relationships among the many stakeholders
involved and the goals for which the corporation is governed
including include customers, creditors (e.g., banks, bond
holders), employees, suppliers, regulators, and the
community at large.
The principles of corporate governance which include
honesty, trust and integrity, openness, performance
orientation, responsibility and accountability, mutual
respect, and commitment to the organization have been
totally wiped out from this activity of Satyam.

The setting up of corporate governance and the reliability
of the auditors on the financial papers validity have been
been broken in to pieces.

It is a the duty of any organizations that it should
clarify and make publicly known the roles and
responsibilities of board and management to provide
shareholders with a level of accountability. They should
also implement procedures to independently verify and
safeguard the integrity of the company's financial
reporting. Disclosure of material matters concerning the
organization should be timely and balanced to ensure that
all investors have access to clear, factual information. In
the case of Satyam it simply played a disguised role to fool
the common investors society.

The government should be stringent regarding corporate laws
and disclosure norms by the companies so that the so much
build Honesty and trust that the corporate India have build
in so many years is not being shattered in this way.

It took many years for Indian corporate to make a mark and
trust on the Global Economy.

Must we all be surprised. I don't think. One of the
poster boy companies in IT sector but imagine what it has
been doing all these years. Honest Auditing of all the
Reality Companies will unravel the biggest of all the frauds
and manipulation of their accounts. Most worrying is that
that those who are responsible for keeping the Books of
Accounts clean as per the laws have formed a sydicate of
CA/CS/Audit Firms, etc. etc. First of all, thee must be
brought to books to clean the system and there should be a
stringent qualification attached to the Auditing Firms.
Merely being CA's and their respective firms should not be
enough. I don't know any clear cut solutions but those
responsible at the top must honestly take this opportunity
to evolve a perfect, transparent and ethical systems and
processes to cleanse the entire Corporates of India. I am
sure with this starting there will be some more scams like
this that will come up in the open.... for sure...!!!! So
BE READY!!! for some more like SATYAM!!!