Jan 7, 2009

Business - Satyam case is a warning for other managements: N R Narayanamurthy

BANGALORE: At a time when India software Inc is waking up to perhaps the biggest corporate scam the country has seen, industry leaders such as N R
Narayanamurthy who founded country’s second biggest tech firm Infosys, described developments at Satyam as shocking, painful and a good warning for other companies in the sector.

The Satyam episode is a good warning signal for all managements, said Mr Narayanamurthy, the non-executive chairman of Infosys and one of the strongest votaries of corporate governance in the country. Speaking to ET , Mr Murthy said, it is time for authorities to step in with appropriate action.

Following is Mr Murthy’s unedited views on the subject.

I am shocked and painfully dismayed at what has happened at an important software company in India. It is a total failure of governance. I only hope that relevant authorities get to the bottom of this and take appropriate action.

It is important to remember that one Satyam does not make the entire Indian software industry. I believe it is an isolated case. I want foreign investors to realise that there are many honest managements and good companies in this country. While what has happened at Satyam is totally regrettable, I believe that it does not represent India. It just represents one individual and one company.

In the short term, investors will start looking deeper into all companies they want to invest in, and rightly so. Once they realise that things are not all that bad and that most companies are decent and managements honest, they will regain their faith.

This too will pass. Investors will consider this as an extreme case. Right now, all of us must conduct ourselves in the most legal and ethical manner. It is a good warning signal for all managements.

1 comment:

livenewss said...

“Satyam value today $330m against $7bn six months ago accd to Financial Times.”