Satyam Saga- Is Corporate Intelligence adequate in India?
Obviously corporate intelligence is not adequate and investors are not safe. They all seem to be talking about a Rs. 7000 cr fraud, but what about the billions lost in capitalisation of the Satyam stock and consequenlty the market slide. This is the worst kind of fraud that have been perpetrated with a cold mind.
There are two questions that need to be answered:
1. After the corporate governance issues with the Maytas deal, why was Raju allowed so much time? Obviously there more top management people involved than just the Chairman (as he confesses)
2. What were the Auditors doing? Need to closely look at the various relationships that audit firms maintain with clients. That could result in compromising their position. Audit firms should only have one relationship…that is conducting audit. After Enron, Aurther Andersen was disbanded and sold off and the consulting arm became Accenture. All firms should delineate audit and consulting function in seperate entities.
All this proves that we need better corporate intelligence.
Vivek Parti, CEO, India Business Database.com, Business Credit Information Company
