In the face of the Satyam scam and its deadly repurcussions, Indian firms are looking into methods to avoid scenarios of such scams within their companies.
Indian companies have started to review and document their risk management policies and practices to check corporate fraud in the wake of the Rs.70 bn Satyam Computer Services scam, a survey by an industry lobby says.
A quick analysis by the Associated Chambers of Commerce and Industry of India (Assocham) with feedback of over 400 leading corporates, said that to deter possible corporate frauds, companies have commenced re-codifying their risk management policies.
However, about 85 percent of the respondents said although Clause 49 of the market regulator’s Listing Agreement clearly states that the management and the board of directors must accept responsibility for not issuing accurate financial statements, most officials at this level managed to get off the hook even if found guilty.
On the other hand, about 80 percent of respondents argued that putting these programmes and controls in place will help organisations to set the tone of zero-tolerance to fraud and create a mechanism for employees to report wrongdoing to the appropriate authorities.
Kiran Karnik, who has been appointed as the one of three members in the newly constituted is all set to take quick actions and restore investor confidence in Satyam.
A post-graduate from Indian Institute of Management, Kiran Karnik was the President of NASSCOM – the premier trade body and the “chamber of commerce” for the IT software and services industry in India till 2008. In this role, Karnik worked closely with the industry, and the Indian central and state governments to formulate policies and strategies for the advancement of this sector locally as well as internationally.
Kiran Karnik has been recognized as the guiding force for the Indian IT industry during the outsourcing backlash. By providing perspective and background information, Karnik has been instrumental in promoting India’s technology strength to the world.
Kiran Karnik Board of Satyam Computer on Sunday said ensuring business continuity of the IT major will be the Board’s first priority which is likely to meet within 24 hours.
“The first priority of the Board will be to ensure business continuity. We also have to make sure that India continues to be a safe, secure and reliabledestination for IT ,” past Presidentof Nasscom Kiran Karnik told media.
Talking about the appointment of seven other members to the Board he said, “It’s too early to comment on this. We will have to consult with the government for that. As of now I have not received any communication
from the government in this regard.”
The Government is leaving no stone unturned and is keen on finding out whether there remain any hidden ghosts in the Satyam files. In an update today, the CID has raided the Satyam premises.
The Andhra Pradesh CID on Sunday conducted raids on offices of Satyam Computer Services and residences of directors of the company’s disbanded Board here.
“As part of investigations, the raid have started today morning and are continuing,” a CB-CID official said.
While there is no doubt that the Satyam scandal could rock the entire nation and perpetrate deep cracks into the economy is not taken care of. Satyam’s survival is ultimately crucial and damge control needs to be done.
The big question on survival of Satyam Computer is giving anxious moments not only to its over 50,000 employees but also to over half-a-million people, who would get impacted indirectly if the IT firm does not come out of the trouble, CII President K V Kamath said on Saturday.
Despite cheaating all the staakeholders in Satyam to the tune of 7800 crores, Ramalinga Raju still seems to gather support from Hyderabad localites. He is still their role model and wil continue to love him.
“He has let down everyone, but he is not a criminal,” that’s how the public here seem to be backing Satyam’s former chairman B Ramalinga Raju.
Telugu news channels are flooded with such SMSs backing Raju.
Raju received an overwhelming public support through an SMS survey conducted by different Telugu news channels yesterday which asked viewers if Raju is guilty and whether he should be arrested.
Kiran Karnik, who has been appointed as the one of three members in the newly constituted Board of Satyam Computer on Sunday said
ensuring business continuity of the IT major will be the Board’s first priority which is likely to meet within 24 hours.
“The first priority of the Board will be to ensure business continuity. We also have to make sure that India continues to be a safe, secure and reliable destination for IT ,” past Presidentof Nasscom Kiran Karnik told media.
Talking about the appointment of seven other members to the Board he said, “It’s too early to comment on this. We will have to consult with the government for that. As of now I have not received any communication from the government in this regard.”
The government today nominated noted banker Deepak Parekh, ITexpert Kiran Karnik and former SEBI member C Achutan to the IT company’s Board.
The three-member board would meet within 24 hours to decide on the remaining up to seven members along with the Chairman, Corporate Affairs Minister Prem Chand Gupta told reporters in a hurriedly called press conference two days after disbanding the truncated Satyam Board.
Karnik, the recipient of the Padma Shri awardalso said that the three newly named board members would meet as soon as possible and that the first priority is the arrangement of an operational management.
“I dont know when and where the Board will meet. Ideally, the Board meeting should be in Hyderabad,” he added.
Nasscom also welcomed the governments move to appoint Karnik as a member of the new Board. “He is still an active member of the the industry body. He had in depth understanding of the industry. his experience as an Industry insider will come in handy,”Nasscom Chairman Ganesh Natarajan said.
Karnik was the Managing Director at Discovery Networks in India from 1995-2001. He spearheaded the launch of Discovery Channel in South Asia in August 1995 and Animal Planet in 1999. Karnik has worked for over 20 years with the Indian Space Research Organisation.
Country’s second largest software exporter Infosys also welcomed the move. “I am happy that such illustrus people has been appointed to the board . Its a well thought off move to restore confidence and assure customers that services will be restored,” Infosys Director HR Mohandas Pai said.
So what do you readers feel, is it possible to turn around the mess created because of the Satyam scam.
Moving quickly to stabilise the fraud-devastated Satyam Computer, the government on Sunday nominated noted banker Deepak Parekh, IT expert Kiran Karnik and former SEBI member C Achutan to the IT company’s Board.
Deepak Parekh, chairman of HDFC Bank, said: “Govt and various industries from Bombay has requested me to be on Satyam Board because it’s a national meat. There are hundred steps that need to be taken but the first priority is to increase the number of the board from 3 members, restate the balance sheets and create a reassurance among clients, investors and employees of Satyam.”
The three-member board would meet within 24 hours to decide on the remaining up to seven members along with the Chairman, Corporate Affairs Minister Prem Chand Gupta told reporters in a hurriedly called press conference two days after disbanding the truncated Satyam Board.
Things are moving at a fast pace with the Government trying to take quick measures to control the damage caused by the Satyam scam. The board of Satyam had been dissolved and their board meeting stands cancelled. The government has elected three members to the board of Satyam — HDFC chief Deepak Parekh, former Nasscom president Kiran Karnik and former SEBI member C Achuthan–Minister for Corporate Affairs PC Gupta told reporters in the capital. Further appointments will be made subsequently as required.
“The new board will be fully independent, and will make its own assessment. The chairman would be decided by the board”,minister added while commenting on the powers granted to the new board.
With rumours abound that Satyam is planning to fire some 15,000 odd staff personnel due to inability to pay their salaries. There is also speculation that Satyam is likely to freeze the salaries of its employees for two months due to lack of cash in their accounts to pay them off.
“Even if we are not retrenched, we may face cuts in our salaries. This whole thing is not our fault,” said one employee who, like all others interacting with the media at Satyam campus, spoke on condition of anonymity.
With tears in his eyes, this ‘Satyamite’ of three years further added that he got Rs 72,000 per month till last year, and had bought a car and even taken a home loan.
“My total liabilities are now over Rs 45 lakh. I don’t mind selling my car. But what do I do about my home? I have to live in that with my family,” the employee said.
Life for the founder of Satyam Computer Services has taken a huge turnabout. From a business tycoon used to sleeping in luxurious beds and driving around in a Mercedes, B Ramalinga Raju, the disgraced chief of Satyam Computer Services, has now turned into someone who will sleep on a coarse thick mattress and share a cell that includes a common Indian toilet-with about 40 undertrials wanted for murder, rape, chain snatching, pocket picking and selling illicit liquor.
According to Chanchalguda jail officials, B Ramalinga Raju and his brother Rama Raju were brought to the prison at 8 pm and, after finishing the formalities, were ushered into the admission barrack, with 40 other day’s undertrials. The brothers were frisked at the reception and a metal detector was also run on them.
As part of the jail procedures, all valuables like jewellery, cash and prohibitive items like cell phone and knives belonging to the undertrials were taken away from them and kept in a locker. Ramalinga Raju and his brother have also deposited Rs 5,000 cash, which they had on them, with the jail officials. After that, the duo was led to the jail enclosure and put in the admission barrack, where all the day’s undertrials were kept.
On Sunday morning, a duty doctor will examine all new undertrials and give a health status report. Based on the medical report, the jail officials will segregate the prisoners and assign them to individual barracks or cells.
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