ICAI: Satyam scam will help improve corporate governance
April, 20th 2010
The lessons learnt from Satyam saga will help improve the level of corporate governance in India in the years to come, the apex body of chartered accountants, ICAI, said today.
"Satyam is a study in itself and a matter of research also. I think in periods to come you will find that it will help to improve the levels of corporate governance in the country," Institute of Chartered Accountants of India (ICAI) President Amarjit Chopra said here.
"Probably, Satyam is the best things that could happen because it shall now prevent frauds in future."
Speaking about lessons learnt from the 2009 fraud at the leading IT firm, Chopra said "The multi-crore Satyam scam is a case study before the fraternity, which was primarily more a scandal of corporate governance."
"It was the failure of audit committee chairman to raise the issue of funds to the tune of Rs 2,000 crore lying in Satyam's current account, otherwise the scam could have surfaced much earlier," he said, referring to striking points in the multi-crore Rs 7,000-crore scam.
"In the wake of this magnitude scam we have urged the government to fix obligation of independent directors and what kind of role they can play in a firm," he said.