Satyam debacle a systemic failure: YSR
should serve as reminder to CAs to be more vigilant’
HYDERABAD: Chief Minister Y.S. Rajasekhara Reddy described the Satyam
debacle as a ‘systemic failure’ and said it should serve as a constant
reminder to chartered accountants to be more cautious and vigilant in
said while the entire episode was a blot, it highlighted the need for
more ethical and moral values among practising professionals and those
studying to be a chartered accountant.
need to be guarded while certifying information furnished by the
companies,” he stated, adding it was good that Satyam had ‘recovered
very fast’. Inaugurating a two-day regional conference of the Southern
India Regional Council (SIRC), Institute of Chartered Accountants of
India (ICAI), he expressed confidence that
India would come out of the recession very soon.
appreciated the ICAI while referring to the statement of its president
Uttam Prakash Agarwal that the institute and the Insurance Regulatory
Development Authority were working on a low-cost product to help insure
millions of farmers who frequently lost their investment to the
vagaries of nature.
Agarwal later told reporters that a disciplinary committee formed by
the institute had submitted its initial report to the Union Ministry of
Corporate Affairs as part one of its probe into Satyam. The final
report would need a visit to
Hyderabad soon and a deeper study of issues like corporate governance,
non-adherence to standard accounting practices, role of independent
directors and other stakeholders in the Satyam Computers case.
Maytas incurs loss
Maytas Infra Limited (Maytas), an arm of the scam ridden Satyam
Computers, has posted huge loss of Rs. 489.79 crores for the year ended
impact of the unprecedented developments in Satyam on Maytas Infra was
evident as the company reported a net loss of Rs. 489.79 crore as
against a net profit of Rs. 99.64 crore in the previous year.
turnover itself fell by 19 per cent from Rs. 1,637 crore last year to
Rs. 1,335 crore for the year ended
March 31, 2009.
on July 31 this year, the order book of the company stood at Rs. 7,332
crore although several projects entrusted to the firm were cancelled.
Most notable among them, though not in the fiscal under review, was the
cancellation of the prestigious multi-crore Hyderabad Metro Rail