Scandal jolts confidence of global investing community

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: As a fresh articled clerk with PwC, I still remember that my first day in the company was spent with bank statements and original fixed deposit receipts given by clients. I had to confirm that the actual cash is physically lying in the bank and a confirmatory statement from the bank is submitted. Reading the Satyam debacle – I thought – have we got rid of all our time-tested good practices and following only power point presentations these days?

Satyam is today – Enron of India – no less. And, this incident raises so many questions that businessmen, professionals, shareholders et al will find it difficult to find answers to. There will be a seachange in the way we manage our affairs and appoint independent directors. Should this be on the basis of profile or actual achievements or should they be in the board only with a supervisory role? The role of every stakeholder in listed companies will now see a paradigm shift if Indian corporates have to shed this stigma and stand up as a pinnacle of pride in the forthcoming years.

Whistle blower- Everybody must be wondering where the professionals are inside the organisation who must have used the word so frequently – when the MCAP of Satyam was at its peak and those non-existent profits were showing in public domain. It would be interesting to know why the CMD alone should be blamed and what will happen to finance directors and financial controllers. What was their role during these ten years? What were the internal audit and audit committee doing? Is it a wholesome collusion between all these agencies involved?

Auditor- We have seen the sad demise of Arthur Andersen and have not learnt anything. If this is being perpetrated for last ten years – is there any chance that an auditor like PwC will not know about it?