Satyam scam

The startling disclosure by B. Ramalinga Raju, former chairman of Satyam Computers, that his company’s accounts were fudged over many years is shocking. One wonders how an individual could fudge a company’s accounts for years without anyone coming to know of it. Surely, the Satyam scam could not have taken place without the finance department collaborating with Mr. Raju in the misadventure. Now everyone — from the Department of Company Affairs to SEBI and the media — is crying hoarse. This is not to defend Mr. Raju but let us wait for the investigations against him to be completed without creating all-round panic. C.L. Gupta, New Delhi * * * Mr. Raju’s admission of what is perhaps the biggest scam in Indian corporate history is unbelievably shocking. What happened to the checks and balances institutionalised over the years by internal and external agencies? One is reminded of the Sherlock Holmes thriller Silver Blaze, which is about the theft of an expensive racehorse on the eve of an important race. Asked whether there is any point to which Holmes wants to draw the Scotland Yard detective’s attention, Holmes points to “the curious incident of the dog in the night-time.” The detective says the dog did nothing in the night-time to which Holmes replies “that was the curious incident.” The dog made no noise because he knew the midnight visitor well. Perhaps, we have an answer here on the role of the financial watchdogs. K.M. Sankar, Chennai * * * That even cash balance figures were inflated in Satyam’s balance sheet is shocking. Even a junior audit assistant verifies the figures while auditing accounts. What has happened in Satyam is a heinous white-collar crime, involving not just Mr. Raju but also a team of auditors. It is surprising that market analysts, managers of mutual funds and a host of regulators were not aware of the fudging of the figures for years together. One wonders whether corporate results can be relied upon any more. L. Srinivasan, Visakhapatnam * * * The Satyam episode cannot be brushed aside as an isolated one. The regulatory and controlling authorities, apart from the company’s auditors, have blatantly failed in performing their duty. The stakeholders of a company can no longer believe what is stated in the balance sheet. Investors are the worst hit in such circumstances. T.N. Ramachandran Nair, Thrissur * * * Satyam’s systematic fudging of accounts is a lesson for all auditors and auditing firms. They should exercise the utmost vigil while verifying the assets and liabilities, bank balance and financial transactions of their clients. The people, too, should learn a lesson or two. They should not invest their money sitting before the computers of stock brokers, wasting their time and energy. Only the money earned by original hard work is long-lasting. G.N. Devaraj, Bhavanisagar * * * In the corporate world, employers expect their employees to be good and efficient. They assess the performance of every employee using various parameters. But the employees have no such privilege even though they put their best foot forward for the company in which they work. The employees of Satyam throughout the world are in trouble for no fault of theirs. The erstwhile Board of Directors will easily escape using the loopholes in the legal system. What about the employees who face an uncertain future? V. Sundaresan, Hyderabad