Click to play videoNew Delhi: The accounting scandal in Satyam Computers has tarnished the images of India Inc and now the government has stepped in to save the IT giant.
Satyam's ex-chairman Ramalinga Raju, former managing director B Rama Raju and Chief Financial Officer Vadlamani Srinivas have been arrested while the company's auditor Pricewaterhouse Coopers has been removed.
Satyam's three-member board constituted by the Union Government met for the first time in Hyderabad on Monday to discuss ways to get the IT company back on track.
The board includes eminent banker Deepak Parekh, IT expert Kiran Karnik and former SEBI member C Achuthan.
With Satyam scandal erupting when the country is facing an economic slowdown, the future of the company, it employees and investors are not very bright unless corrective actions are taken immediately.
Secretary General, FICCI, Amit Mitra, and Senior Advocate of the Supreme Court Ramji Srinivasan, joined CNN-IBN's India @ 9 to discuss the future course of action in Satyam saga.
CNN-IBN: What does the Satyam fiasco and Wipro ban mean for Corporate India?
Amit Mitra: There is no question that Corporate India is today a matter of debate and discussion. But we must remember that among the IT companies of the world we have four of the large companies. The total amount of human capital that these companies have, practically no one has. So what the common person both in India and abroad is looking at is quick justice. How quickly can we get our acts with regards to Satyam? The has been appointed, the new financial auditors would be appointed in a day or two. But the key is the speed with which we act in punishing the perpetrators of this. That's what everybody is watching. The people want retribution.
CNN-IBN: SEBI has not yet got access to Raju. Is Raju getting enough time to manoeuvre?
Ramji Srinivasan: Whenever there is a criminal action that is initiated, first things first the police asks for police custody to interrogate and find out various threads to put together in terms of facts. This is not merely a case of acting on a five-page confession. I wonder if that is a confession note or not. It appears that the police are also gearing up and asking for police custody while he is still in judicial custody. Judicial custody obviously means that investigations are a bit retarded in terms of access to the accused. So from that point of view sooner the police are able to access the gentleman concerned and asks him relevant questions and get the relevant material, the investigation will go faster.
CNN-IBN: What sort of action do you expect against Pricewaterhouse Coopers, against the auditors who have looked at Satyam's books for seven years and still allowed these books to be passed?
Ramji Srinivasan: Well I think if there is a criminal case that is made out apart from professionally auditors who have knowingly and with full knowledge passed accounts which are other wise fraudulent would certainly fall within the conspiracy together with Raju if it is established. Apart from criminal action there will also be professional negligence and the ICAI will also take action and ask for explanation. If satisfied then take action against the erring auditors. But I wonder if this is all established then it does the firm's name no good but we are nowhere near close to bringing down a firm or a company at this stage because in any case a company in any case is a separate legal entity.
CNN-IBN: Prime Minister’s Office is closely monitoring the situation and there are reports that Satyam may be bailed out. Should the government be bailing out Satyam and should that be the main goal? Or should it be that quick and speedy justice is done?
Amit Mitra: I think firm justice is necessary as quickly as possible. But at the same time the 53,000 employees of Satyam are equal to Tata Motors and Tata Steel put together. Obviously when we talk of bailout, it is not the right terminology. Perhaps somebody could come in from the market place knowing the tremendous amount of human capital available in Satyam, existing orders and customers. Next two-three months obviously it is a question of salaries being paid to these employees. But beyond that there could be many alternative ways by which the value proposition of Satyam as a company could be leveraged in terms of market place. You could have a white knight coming in. So it is too early to say that we are looking at a bailout.
CNN-IBN: Satyam shares in India went up but what about the ordinary investors, who may have lost confidence in big companies after the Satyam fiasco?
Amit Mitra: I think they are very, very important to India's long-term future. This is why turning the company around quickly with the board and we must have a managing director appointed at this stage. All these things must happen targeting the small investor whose strength and value proposition in the market place of India has to be brought back. So I would say the speed with which investigation on one side and restructuring of the company to give confidence - both tracks are very, very important at this stage and in the immediate future.
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