Opinion - Letters to the Editor   

Shocking disclosure

The startling disclosure by B. Ramalinga Raju, former chairman of Satyam Computers, that the company's accounts were systematically fudged over the years has sent shock waves in the corporate world. It has dented the image of Indian IT industry. The editorial "A gigantic fraud" (Jan. 8) is right in saying that the IT companies will have to strive hard to minimise the impact of the Satyam scam.

C.A.C. Murugappan,

Kothamangalam

The Satyam fiasco is condemnable. Competition and the urge to reach the top at all costs seem to be responsible for the manipulation of accounts by Mr. Raju. The nation, the corporate world, the employees of Satyam, and the shareholders have all become victims of the fraud for no fault of theirs. For a nation facing the consequences of the global meltdown, the Satyam scam is an additional headache.

U.T.R. Sridhar Prasad,

Secunderabad

The ultimate sufferers of the scam are the 53,000 employees, the investors and professionals who have received offer letters of employment from Satyam. It is difficult to believe Mr. Raju's claim that he and his family have not gained anything from the fudging of accounts. One can only hope that the company will overcome the crisis and that the Satyam fiasco will not have any impact on the IT industry as a whole.

Swetha Mannepalli,

Hyderabad

The Satyam fiasco, which is neither the first nor the last instance of corporate fraud, is a sad reflection of the system prevalent in our country. It signifies a collective failure of the board of directors. Each one of them should be taken to task.

The CEOs of most corporate companies are also chairpersons of the companies. This role needs to be de-linked and an independent person put in charge of operations. All those getting a share of the pie to falsify information should be dealt with strictly.

R. Girish,

Mumbai

Mr. Raju's admission to the corporate crime he committed and his claim that he or his family members did not take one rupee/dollar from the company will not help the investors who saw their investment drop by almost 80 per cent in a matter of hours. Their trauma was brought alive by the electronic media. Satyam's auditors who failed to check the details of the company's assets and liabilities are also answerable. Having said this, one feels all may not be lost for Satyam Computers. In the interest of its employees and countless investors, we wish the company a speedy recovery.

J. Victor Ponnudurai,

Tiruchi

If it is indeed true that Satyam's accounts have been fudged for several years and nobody noticed the fraud, it shows how ineffective the Satyam board of directors has been. The episode is a shameful reminder of the fact that even the urban-corporate sector is not free from corruption and falsehood. A check-and-balance system should be put in place to avoid scandals of this magnitude in future.

Nandhini Narayanan,

Chennai

The magnitude of the Satyam fraud raises serious questions about corporate governance and will hurt foreign investments in India at a time when the world is going through tough economic conditions.

Ray Shaik,

Melbourne

It is amusing to see regulators, banks, stakeholders and people from all walks of life expressing shock over Mr. Raju's revelations. It is common for businessmen to window dress balance sheets and indulge in corporate frauds with help from financial institutions, government authorities, regulators and auditors. One look at the list of loan defaulters and the amount written off by banks as NPAs and bad loans, and one can understand the level of corruption in our system. Corruption begins right from the credit appraisal stage. I am sure there are many more serious corporate frauds taking place with the knowledge of all concerned.

V.V. Chenulu,

Hyderabad

In the IT sphere, there is enormous pressure on companies to churn out results quarter after quarter. Companies that do not produce results resort to unfair means to ensure that they meet the expectations of the market analysts. Satyam's real operating margin is just about 3 per cent which means that most of its projects are loss-making.

As a proactive measure, the managements of IT companies should restate their books of accounts. The message that corporate India needs to send to the rest of the world should be one of transparency, integrity and adherence to a strong value system.

Navin Muralidharan,

Chennai

Corporate frauds are usually organised frauds. It is not possible for a single individual to fudge the accounts to the tune of Rs.7,106 crore. Mr. Raju's claim that he alone is responsible for the fraud is meant to mislead investors and employees.

G. Bhaskara Rao,

Hyderabad

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