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Satyam should become a case study for regulators: Infy
The Satyam saga which unfolded on January 7 keeps getting murkier. Despite former CFO Vadlamani Srinivas and Price Waterhouse washing their hands of the case, and the government assurance that it will bail out Satyam, no end seems to be in sight. S Gopalakrishnan, Infosys said the case is going to be a test of credibility for Indian regulators.
The Satyam saga which unfolded on January 7 keeps getting murkier by the day. Despite former CFO Vadlamani Srinivas and Price Waterhouse washing their hands of the case, and the government assurance that it will bail out Satyam if required, no end seems to be in sight.
Commenting on the happenings at Satyam, S Gopalakrishnan, CEO and MD, Infosys Technologies , said Satyam's case is going to be a test of credibility for the regulators in India. "They have to go out strongly and take decisive and quick action so this kind of events won't happen again."
He feels that even in well-regulated markets like US, post the Enron fiasco, there were so many regulations but still the Maddox scam happened. "One can't stop scams if the management is doing that. You can't stop it but you can fix the issues and set an example, so it would be a deterrent for other people not to do that."
According to him, the scam is also a wake up call for auditors to fix loopholes in the way they audit accounts.
Infosys, Gopalakrishnan said, has actually increased the disclosures, listing every single bank where they have accounts and the amount there. He feels the industry should adopt such measures. "Our auditor has been getting independent verifications from all banks directly. It has been happening for many quarters. Also, others should also increase their disclosures. This time, we are giving how much of money we have in each of the bank as a schedule to our financial statements, and investors can look at it. It's a very important disclosure in this country."
