Satyam Scam - your take - Shares & Stock [4]

Satyam Scam - your take

Page no : 4

Aisha (Finance Professional) (7547 Points)
Replied 07 January 2009

Attached find the latest auditors report of Satyam ..!!!

Attached File : 58 satyam computer services-auditors report-2007-08.doc downloaded: 121 times

Aisha (Finance Professional) (7547 Points)
Replied 07 January 2009

@ aisha .. thanks for the file..

manoj (Student) (39 Points)
Replied 07 January 2009

Its shame 4 ICAI.Institute should seriously ressolve strong Laws 4 members, so extereme transperency can be adopted by members in case of reporting.PWC.....Universe's biggest auditor.......shame...Peer review among auditors....a total pharse...........strong laws should be levied to members...

aparna (student) (34 Points)
Replied 07 January 2009

come on its 7000 crores..and it is said that they have inflated 10 times of their actual profit!!! is it possible to be unnoticed??

wat is meaning of conducting audit and certifying Balance Sheet then??? fraud amt involved is not immaterial....its huge

even cash and bank balance inflated!!!

...and wat made Mr.Raju to come up with such confession all of sudden???

shailesh agarwal (professional accountant) (7642 Points)
Replied 07 January 2009

Satyam scam: Infosys, peers react

Published on Wed, Jan 07, 2009 at 12:59 , Updated at Wed, Jan 07, 2009 at 16:30

Source : CNBC-TV18

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Commenting on the magnitude of the Satyam scam, Mohandas Pai, Head-HR Administration, Infosys, said, he had never imagined something of this proportion would happen. “It is a bad day for corporate India and IT industry. He feels that the auditing process should get more rigorous and that all companies should make sure that bank balance confirmation goes directly to auditors.

Pai feels outsourcing clients will take a more cautious approach now and people having large exposure to outsourcing will consolidate and work to minimise the risk, he added.

“Investors will be very worried and this is critical time for company and thus management has to be changed for company to protect careers of their employees',.” Pai said. Clients will ask for more information; as Satyam fraud is an aberration with deliberate malicious intent. As far as the FII flows are concerned, there will be an impact, but it will be more selective.

According to Pai, independent directors not knowing about the fraud is quite credible, as they know if they are engaged in the same, the criminal liabilities could come to them.

He feels it is good to have regulator and the government set up its team to investigate – come out with a set of things to be done and the auditing process should get more rigorous.

However, according to Pai, the more worrisome thing as of now is what happens to the 50,000 people, because they are innocent people working in the company and there will be a change in the management team. Probably new people will be appointed by the shareholders and the new management team will work to protect the carriers of all the 50,000 people. "A new team has to come in place and take charge immediately and the regulators have to step in to tell the new team to run the business, while they investigate this fraud."

S Gopalakrishnan, MD & CEO, Infosys, said, "It is very difficult to say how much of Satyam’s core business will eventually be preserved after this episode, unless and until a full investigation is done to understand the implications, the depths of the problem. There will have to be a relook at the accounts and audits and only then somebody can say what should be done.

When it comes to employees, they are a valuable resource. When it comes to client relationships, they would probably consider looking at alternatives and if the switching cost is not much then some of them would probably do.

Commenting on the Satyam fraud, Suresh Senapathy, CFO,Wipro has assured that Satyam’s case is isolated and not associated with any industry. He said Satyam will face both civil and criminal prosecution in the US.

According to Senapathy, overstatement of assets, calls for more valuationdiscounting. He feels shareholders are more vulnerable, and clients will assess risks now.

He said any kind of an acquisition that one could think of, it should fall into a strategy that a particular company lays out. And from that perspective any acquisition of this kind of an asset would mean an aggregation and typically Wipro has stayed away from such acquisition.

CP Gurnani of Tech Mahindra said Indian IT industry should call it a crisis situation. However, there need to be some more announcements for employees and shareholders of Satyam. Gurnani believes that none of the scandals get built overnight. "I do assume that the regulator, Chartered Accountants, the auditors should have seen it coming."

“Satyam has a small presence in the telecom and real estate, so we could be interested in part of business if customers want us to.”

However, he said, “There were rumours yesterday and all I can say is that anybody who acquires this company is only basically acquiring lawsuits now. Remember this company also has a presence in the US.”

Rajkumar Nallah (Analyst) (56 Points)
Replied 07 January 2009

Do not make the Auditor Liable for the mis-statements / misrepresentations of the Management.

Auditor is an independent agency to give "true and fair state of affairs " of the balance sheet.

The agency asks " DID YOU LODGE YOUR SHARES WITH ANY BROKER SHOW ME THE DOCUMENT", they cannot ask " SHOW ME THE DOCUMENT THAT YOU HAVE NOT LODGED YOUR STAKE IN THE COMPANY ".

Mallikarjuna Gupta (Service) (68 Points)
Replied 07 January 2009

Guys,

It is not a scam, this what i treat it. We are all to blame, the audiitos, the analysts, stock brokers, idependent directors, etc.

Normaly in scams we see that people make money but here he has put his personal money.

Pratik K (Student) (3406 Points)
Replied 07 January 2009

Satyam ne hi Sach nahi bataya,aur auditor ne bhi kiya dhoka;

ICAI aur SEBI ne milke isko pehle kyu nahi roka;

Aaj shortselling ka achcha tha moka,laga diya na FFI ne usape choka.

DIPESH (TAX CONSULTANT) (22 Points)
Replied 07 January 2009

I think RAJU should be given in the hands of ORDINARY SHARE HOLDERS of the company. i also think that he declare this scam with planning and with long discussion with his advocate and he also know that INDIA IN ONE OF THE HELPLESS COUNTRY IN THE WORLD - KOI KYA UKHAD LEGA.

aparna (student) (34 Points)
Replied 07 January 2009

Originally posted by :piyush tiwari
"	management confirmation and certification!!!!wat a thought... then wat is the use all audit procedure rite from vouching ,ledger review and other stuff...BRS and other audit techniques recomended by ICAI...as the amount of scam is huge which was surely not b gone unnoticed. there is one joker in the middle of this scam i want to no who is tht ICAI,PWC or satyam mgt....	"

i agree with u.....

CA..Nissha ...... (Trainee.) (34 Points)
Replied 07 January 2009

it is really unfortunate that such an event happened..it is really shocking to here such scams from top Companies .. i hope proper action will be taken and proper punishment must be given to the culprits.. to restore confidence in minds of investors...