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The resignation of the Satyam Computer Services Chairman, Mr Ramalinga Raju, has come at a time when the company is yet to recover from the blow of the Maytas episode. The confession by Mr Raju that the balance-sheet has been fudged over the years is shocking indeed. The fact that the company was awarded for its corporate governance practices raises questions on the credibility of such awards. The common investor does get carried away by such rewards and recognitions, which, as it turns out, do not guarantee any security for their investments.

The punishment given to the company’s auditors should be exemplary and should deter others from indulging in such activities in the future. The ICAI should take a strong view of such dishonest elements in their fraternity and weed them out.

Harine. V Chennai

Corporate carnage

The resignation of Mr B. Ramalinga Raju as the Chairman of the board of Satyam Computers may not be shocking but the so-called confessional disclosure of various misdeeds should send jitters among investors. It is a declaration of a weak corporate structure and the complete failure of supervisory oversight — be it by the board of the company or the statutory auditors.

Mr Raju cannot be sole architect of financial misdeeds of such huge proportions. Any disproportionate growth should also call for greater scrutiny to ascertain whether the growth is real or inflated, and to stop such financial jugglery.

The so-called confession is a mockery. The persons responsible should be brought before the law. But unfortunately, in our country, the experience has been that there may be sick companies but there cannot be sick promoters. Thanks to the delays and loopholes in the legal system, the furore will die down and the banks and investors may queue up after a few years to finance his new company.

L. Rangarajan Mumbai

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