Build your professional network on facebook via our app Go to app
 
<< Prev  18 of 21 in Topic  Next >>
Topic : Corporate Governance
  Rate : 
 
Raju's confession letter & CFO's confession by Murari Srivastava, Team Lead, Infosys

Raju's confession letter & CFO's confession

By : Murari Srivastava, Team Lead, Infosys
Industry : IT Services Functional Area : Application Software
Keywords :

satyam

satyam fraud

auditors

pwc

satyam chairman

raju's confession

cfo confession

Activity:  1 comments  879 views  last activity : 07 06 2010 20:18:04 +0000
Share
 
 
 

The arrested Satyam top brass claim PricewaterhouseCoopers (PwC), the company auditors, never warned Satyam of discrepancies in accounts over the last seven years.

In a confession letter – ex-Satyam Chairman Ramalinga Raju admits to the fraud and justifies his position. Following are the pointers of the letter:

  • Because of the present global financial situation, disparity shown in the balance sheet became difficult to cover up .

  • Things have gone out of control. Since I have been instrumental in starting the company, I wish it to be a leading company and could not bear the thought of it coming down. That is the reason I have money to save the situation.

  • Since about seven years, we wanted to show more income in the account to avoid others from involving in company affairs and any other possible hostile takeover situation, and hence, manipulated the balance sheet to attract more business and show unavailable amount as available cash in hand.

  • This process continued for the last seven years and margin amount shown got increased much more year after year.

Satyam's former CFO Vadlamani Srinivas who was arrested on Saturday night by the CID has made some startling confessions. In his confession letter - Srinivas has made some shocking revelations.

Confession report of Vadlamani Srinivas:

  • Bank deposits were handled directly by Chairman and Managing Director I was specifically asked not to look into this.

  • One week before the meeting, I used to be presented with balance sheets, profit and loss accounts two days prior to the board meeting.

  • I used to have discussion with auditors PricewaterhouseCoopers and the auditors never pointed out any discrepancies.

  • I was suspecting something is wrong when payments were delayed, then I asked the Chairman and MD for taking payments from fixed deposit, but they told me not to take it from fixed deposits and manage it with operational cash. It was continuously occurring for the last 5-6 years.

  • According to me fixed deposits are unreal and fictitious which were managed and was an understanding between the audit section management.

    •  

Srinivas was arrested by CID on Saturday night after a couple of hours of interrogation at the CID office located in the state police headquarters in Hyderabad.

 Top Comment : SR Sham Sunder   | 01 12 2009 12:15:45 +0000
I may accept the confession that the Raju's were dictating terms to their CFO. But if the CFO did not have a clue on the status of the company, he should be blind. He is afterall a finance professional and it is his signature everywhere!! He needs to be punished.. There are many Rajus in India. This could be a lesson to them. I have faced a few too but I have always known what they are trying to hide from me. On certain occasions, when things went wrong, it is my warnings they have read repeatedly and confessed that they should have listened to me. I have not signed anywhere, however, unless the data is authenticated. PWC need to be banned. Their (PWC/KPMG/E&Y..) very entry into India - the top banner is one but internally, various divisions/companies... If you read a business card of any official/associate, there will be many company names mentioned. what does this mean? They want to charge on international rates but they work as a small audit firm. What one is doing is not scrutinized by the top brass. Till something goes wrong, the importance of safeguarding the intigrity/image of the brand does not occur to many organisations. One would think MNCs are an exception but this episode proved that they are not. Lets salute Infosis for having given to the world a new image of corporate governance. India will lead the world from now on that this could be one feather in India's cap. When it comes to an Indian IT company, we should look at the following : Infosis : They profess and practice transparency and high standards of corporate governance Wipro : Azim Premji was one of the world's richest persons but we never saw him as a high flying persona. His status as one of the richest was not long lasting. Even then there were no public postures.. In internal management issues, however, his views and initiatives are well accepted and adopted (six sigma etc.). TCS : The TATA group does not require much explanation to come into this list. There are many other Indian IT firms. There are many more world's richest persons in India. But they do not bring out the same extent of confidence on integrity and corporate governance. Sathyam was a misfit to join this distinguished list as 4th largest IT company after Infosis, Wipro and TCS..
go to top
 
1 comments on "Raju's confession letter & CFO's confession"
Sort by: Most Recent Top Rated
  Commented by  SR Sham Sunder, CEO/MD/Director Technoaid    | 01 12 2009 12:15:45 +0000
Rating : +1  
I may accept the confession that the Raju's were dictating terms to their CFO.  But if the CFO did not have a clue on the status of the company, he should be blind.  He is afterall a finance professional and it is his signature everywhere!!  He needs to be punished..
There are many Rajus in India.  This could be a lesson to them.  I have faced a few too but I have always known what they are trying to hide from me.  On certain occasions, when things went wrong, it is my warnings they have read repeatedly and confessed that they should have listened to me.  I have not signed anywhere, however, unless the data is authenticated.  
PWC need to be banned.  Their (PWC/KPMG/E&Y..) very entry into India - the top banner is one but internally, various divisions/companies...  If you read a business card of any official/associate, there will be many company names mentioned. what does this mean?
They want to charge on international rates but they work as a small audit firm.  What one is doing is not scrutinized by the top brass.  
Till something goes wrong, the importance of safeguarding the intigrity/image of the brand does not occur to many organisations.  One would think MNCs are an exception but this episode proved that they are not.  
Lets salute Infosis for having given to the world a new image of corporate governance.  India will lead the world from now on that this could be one feather in India's cap.  
When it comes to an Indian IT company, we should look at the following :
Infosis : They profess and practice transparency and high standards of corporate governance
Wipro : Azim Premji was one of the world's richest persons but we never saw him as a high flying persona.  His status as one of the richest was not long lasting.  Even then there were no public postures..  In internal management issues, however, his views and initiatives are well accepted and adopted (six sigma etc.).
TCS : The TATA group does not require much explanation to come into this list.

There are many other Indian IT firms.  There are many more world's richest persons in India.  But they do not bring out the same extent of confidence on integrity and corporate governance.  Sathyam was a misfit to join this distinguished list as 4th largest IT company after Infosis, Wipro and TCS..
Add your comment on "Raju's confession letter & CFO's confession"

Rate:
Submit
 Found the article "Raju's confession letter & CFO's confession"  interesting ?  Share with your connections and communities  
IT & Engineering focussed recruitment firm
  • Create a confidential Career Profile and Resume/C.V. online
  • Get advice for planning their career and for marketing of experience and skills
  • Maximize awareness of and access to the best career opportunities
Viewers also viewed
If i switched from my current company to another company without releaving letter the hiring...
 
1201 referals 6 answers, 440 views
I want to quit from my current job but i have signed bond here . so now i want to break the bond...
 
1290 referals 26 answers, 3619 views
Though media vs Self
 
157 referals 105 arguments, 3005 views
more...  
Recent Knowledge (106)
Anna Hazare Ends Latest Fast The United Progressive Alliance government heaved a huge sigh of...
 
87 referals 7 comments, 196 views
  A day after he resigned, Santosh Sarode (31), a software engineer, allegedly strangled his...
 
1600 referals 32 comments, 1538 views
In the Geeta Lord Krishna emphatically told Arjuna,"Many people anxious to offer uninterrupted...
 
0 referals 2 comments, 19 views
more...  
Sponsored Jobs
More From Author
yes even i too agree Nitin that there is no such credentials for a PMP professional in construction, as such most of them are not aware of it as it is in the case of IT industry, construction still recognises experience more than these...
The PMBOK Guide is considered one of the most essential tools in the project management profession and is the de facto global standard for the industry. The primary purpose of the PMBOK Guide is to identify that subset of the Project Management......
Cross-site request forgery, also known as one-click attack or session riding and abbreviated as CSRF ("sea-surf") or XSRF, is a type of malicious exploit of a website whereby unauthorized commands are transmitted from a user that the website trusts....
more...