B.Ramaliga Raju’s startling revelations has brought to light the biggest ever corporte fraud in India. He has stated that inflated cash balance of Rs.5,040 Crores (Rs.50.40 billion) is non existent. There are many other inflated figures in the accounts of the Company and many did not find place in the accounts. It is a wonder how such a huge inflated cash balance was not found by the Statutory auditors, internal auditors, audit committee of the Company. What is the use in getting the accounts audited, filing papers with Registrar of Companies. What is the use of presence of SEBI?
Does this mean that in India anything and everything can be purchased or overcome by using influence ( you call it money or any other things)
Investors have lost huge money due to this fraud. By investors I mean not only shareholders. This includes their bankers, customers, suppliers and also many IT qualified new graduates waiting for a posting in Sathyam. Each and every stakeholder has lost.
What were the so called Internal Auditors and Statutory auditors doing for the past few years. According to B.Ramalinga Raju accounts have been manipulated for the past several years !)
What SEBI, the so called regulator to protect the interest of Investors, was doing all these years. Have they really protected the interest of investors? SEBI is duty bound to answer the public on its slumber in identifying frauds of this nature.
This type of frauds are taking place in many corporates because of hand picked directors and independent directors ( In stock exchanges also Public representatives are hand picked and whatever they say is blindly believed by SEBI - No complaint against them is entertained - Instead these public representatives are rewarded). Once a fraud is found SEBI puts its hands up and cries from top of its voice that the fraud is of ”horrfied magnitude”
Corruption has take a very deep root in our Country. That is why perpetrators of fraud could escape from law and run their offices, business with immunity.
Mere possession of law is not sufficient. It shall be enforced in letter and spirit. The Finance Ministry, Ministry of Corporate Affairs and SEBI are jointly responsible and are dutybound to take immediate steps to instil confidence in the minds of the public.
Probably Sathya Meva Jayathe (Truth Alone Triumphs) has come true with Sathyam revealing the truth at last. But the damage has already been done. Let us wait for its ramifications.
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Jan 10, 2009 at 00:42:10
Subjects of Ethics & Morality should be made a part of any curriculum right from School to the end of College and in all business schools to enable proper application of any education.
Jan 11, 2009 at 09:50:08
I fully agree with U. Morality and ethics shall be taught from LKG (even from Pre KG if possible).Good habits inculcated at tender age is a strong foundation for any country.
Jan 18, 2009 at 22:14:28
100% agree with you. there are humpteen cases of price rigging, corporate mismanagement, under the nose of SEBI, the watchdog appointed by GOI with a very strong teeth to bite anybody, but still things do happen against the investors’ interest on almost all the cases. In this case, even the so-called intelligent/tech-savy/forward thinking FIIs were taken for a ride by M/s.Raju brothers.Unless we have a corrupt-free environment the desired results for any reforms could be achieved in our country.