No loss of faith in Indian IT: Infosys
Leading IT firm Infosys Technologies today said the Satyam fraud would not shake global clients' faith in Indian IT companies but due diligence on behalf of customers is sure to increase.business Updated: Jan 07, 2009 14:18 IST
Leading IT firm Infosys Technologies on Wednesday said the Satyam fraud would not shake 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 told PTI.
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.