No loss of faith in Indian IT, due diligence to go up: Infosys

Leading IT firm Infosys Technologies on Wednesday said the Satyam fraud would not shake

RELATED ARTICLES

global clients' faith in Indian IT companies

but due diligence on behalf of customers is sure to increase.

"(The) Satyam fraud is an aberration ... I don't think it would shake clients' faith in other Indian IT companies. But the level of due diligence is sure to go up (and) in fact that would overtake other considerations.

A lot of convincing has to be made by the companies now to clients," Infosys director (HR) T V Mohandas Pai said.

Asked if Satyam has disgraced the Indian IT industry, which was riding the good corporate governance wave, he said, "Any fraud is a disgrace to society, the country and each Indian."

Pai said clients would still have confidence in Indian companies as one such incident can't tarnish the whole sector.

He said the fraud committed by the Satyam management is deliberate and should be punished.

To prevent such a huge fraud in accounting, Pai said that the balance sheet and the deposits of a firm should directly go to the auditors, who must be more vigilant.

Independent directors should be alert and speak on behalf of the company, not promoters.

Referring to the Satyam case, he said prima facie it looks like auditors too were on the side of the promoters.

He compared Satyam's accounting fraud to that Enron. He demanded strong action by SEBI and the government against the culprits.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

FC NEWSLETTER

Stay informed on our latest news!

EDITORIAL OF THE DAY

  • Retail investors need to be drawn to bond trading

    A country requires both a healthy capital market and a liquid debt market for vibrant economic growth. India has had the first for a long time.

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Urs Schöttli

Japan’s living national treasures

While the world is fascinated by the economic “miracles” in ...

Robert Clements

Cherish good times and accept bad ones

Initially, I was angry and confused, I was even repentant…,” ...

Bubbles Sabharwal

Mothers just see things differently; they can’t help it

Before we begin on mothers, I have to share this ...