One more reason for a stock market crash !
Its new to India for a chairman of a company admits and confesses in public. Every one contributes to the Satyam debacle. And the resignation is only a beginning of a long and painful legal exercise
Its chilling to know that finally the fraud was not found by the so called auditors / regualtors, but has come out with his own admission while resigning.
we talk tall about corporate governance and controls. Does corporate governance stop with appointing so called independent directors? Will that not go to check how independent the independent directors are...
One of my friend, a chartered accountant expressed his surprise how cash balance could escape audit. Cash balance is one of the tangible and easy stuff for audit, its beyond imagination how there could be a misquote about the cash balance.
All stake holders, its employees and share holders life is at stake. who is responsible for this?
Blast in Mumbai has introduced fear in our minds about our safe living !
This big corporate debacle in Indian corporate history ever has just thrashed the hopes of a well informed investor who believes in a balance sheet and auditors to park his hard earned money!
The biggest challenge now is to bring back the investor's confidence. If we do not learn lessons, then the BSE and NSE would simply be equated with Casinos in Vegas.
While Enron costed Arthur and Anderson, will Satyam cost PWC?
Lets wait and watch,
People
The moral of the story is "Lets believe in our horoscopes rather than balance sheets"
Alright, got to go for lunch :) an important activity in one's official life ;))
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2 comments:
Karthika - I have couple of comments.... One is about the independent Auditors.... If I am right Board meets once in a quarter for couple of hours... In this couple of hours how can they find out the systematic fraud committed by the promoter over the years? At the most, they could have asked what the company intends to do with such a huge cash surplus....for which I am sure promoters would have had some answer or other....!!!!
About BSE and NSE....I think your equation is right.... during the bull run I always use to wonder what suddenly has happened to the companies whose share prices are sky rocketing for no good reasons....!!!! So always believe in your horoscopes or rather believe in the horoscopes of the promoters...
Another thing.... In your office does the lunch time starts at 10.45 PM in the night? I am sure you are not working for a BPO... Also, dont start your sentence with "AND".
Wondering why this criticisms...???? You have not spelt out my name in your blog... Hence so......!!!!!!!!!
Hi Sriram,
Thanks for the feedback. You are right, practically there is no time for the independent directors, however when the authority is given, it must be combined with corresponding responsibility. I am sure you would agree with that.
I guess my computer has got some AI ( artificial intelligence) it could sense and declare lunch timing when I start to feel eating something. Let me tame and tune this this time
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