Mr. B Ramalinga Raju, resigned as the chairman of Satyam and admitted to misreporting the finances of the company. There are reports of Rs.5000 crores missing from the cash and bank balances of the company. How did the auditors price waterhouse certify the balance sheet? Did they verify the bank accounts and find out whether the deposits actually existed on 31st March?
Do the auditors actually audit? or they send the interns to have a ball at company's expense and then tick whatever papers are dished out at them? Do the heads / honchos / partners of the auditors team get a cut on the amount mis-stated? Can we ask these questions to the ICAI or the auditors themselves?
Corporate Governance INDIA ISHTYLE
Take a look at the composition of the boards across the corporate India spectrum. You will find that there is a group of people who specialise in being Independent directors of companies. you will find familiar names on scores of companies. Most of these people are retired bureaucrats, powerful lawyers, retired senior executives from public listed companies, fellow industrialists, etc. the entire operation of appointing independent directors reeks of "You scratch my back and I scratch yours". Independent directors are treated as show pieces and are highly pliable to the whims of the promoters. The Audit committee, Remuneration committee and the Investor Grievance committee seem to work only in letter and not in spirit. Clause 49 report seems to be only a case of filling up a form and submitting it to the exchanges.
If promoters are going to camp with the booty on a continuous basis across the decades, remember MS Shoes, Time Shipping, DLF Cement, scores of vanishing companies, Finance-IT-Bio tech companies. We can only blame the gullible public of India and the slow and inept regulatory system for our woes. This calls for a massive effort on investor education in the interest of the investors and the companies who are doing it right.
Satyam Swaha!!
Do the auditors actually audit? or they send the interns to have a ball at company's expense and then tick whatever papers are dished out at them? Do the heads / honchos / partners of the auditors team get a cut on the amount mis-stated? Can we ask these questions to the ICAI or the auditors themselves?
Corporate Governance INDIA ISHTYLE
Take a look at the composition of the boards across the corporate India spectrum. You will find that there is a group of people who specialise in being Independent directors of companies. you will find familiar names on scores of companies. Most of these people are retired bureaucrats, powerful lawyers, retired senior executives from public listed companies, fellow industrialists, etc. the entire operation of appointing independent directors reeks of "You scratch my back and I scratch yours". Independent directors are treated as show pieces and are highly pliable to the whims of the promoters. The Audit committee, Remuneration committee and the Investor Grievance committee seem to work only in letter and not in spirit. Clause 49 report seems to be only a case of filling up a form and submitting it to the exchanges.
If promoters are going to camp with the booty on a continuous basis across the decades, remember MS Shoes, Time Shipping, DLF Cement, scores of vanishing companies, Finance-IT-Bio tech companies. We can only blame the gullible public of India and the slow and inept regulatory system for our woes. This calls for a massive effort on investor education in the interest of the investors and the companies who are doing it right.
Satyam Swaha!!
1 comment:
Satyam Swaha!! but what about those small investors they cant read the balance sheet, infact here no one read the balance sheet not even the auditors What can we do.
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