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The shocking revelation by Mr Ramalinga Raju on the $1-billion dollar plus Satyam fraud, manipulating the company’s balance sheet, has revealed the fragility of our financial audit and regulatory processes and exposed the gullibility of the investing community.

It is absolutely essential that the stated reserves of India’s top companies boasting of huge cash reserves are re-examined.

With the beleaguered stock market, such issues of corporate governance may impede overseas investments. SEBI should act quickly to restore the confidence of investors and major outsourcing customers. The DSQs, Siverlines, Pentafours and Satyams have brought shame to our country.

S. G. Raghavan Vice-President, KHMD Electronics City Bangalore

Satyam saga

What has happened in Satyam Computers Ltd. is indeed shocking, to say the least. The stock market has gone into a tailspin and strong critical voices have been heard from financial analysts.

While recognising that the Chairman of one of the best-rated IT companies has indulged in outright wrongdoing, it has to be remembered that the he himself came forward to reveal the real sordid state of affairs and has reconciled himself to the course of legal action against him.

So, corporate India and individuals must take care not to lose balance; it would be good if well-meaning and reputed individuals/companies connected with IT take a supportive stand to the multi-million dollar company Satyam, which has built tremendous work models and has thousands of clients spread over more than 65 countries and has a work-force of over 50,000 well-trained employees and is still believed to be a solvent enterprise despite the fraud exposed now.

That would be sagacity; allowing the company to die would be disastrous.

C. V. Subbaraman (former Regional Director RBI, Gujarat) Ahmedabad

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