1.  Mr. Ramalinga Raju in his letter states that the Balance Sheet as on 30.9.08 is:
a) Overstated by Rs 5040 crores - cash and bank balances
b) Contains non existent accrued int of Rs 376 crores
c) Undestates liability by Rs 1230 crores
d) Overstates debtors by Rs 490 crores.

The fact that the auditors could not spot such huge errors is a blot. The shareholders are entitled to ask why huge audit fees are being paid.

By Rajagopal V <rajagopal.v.ca@gmail.com>

2.  Very nice questions have been raised  after the event. It will take months and years before
we get answers for all.

Our Cash Flow Accounting is not real. It is only Fund Flow Accounting derived from opening and closing balance sheet.

Real Cash Flow Statement is the need of the hour.Real time cash Management is absent in many companies.

In the 60's when accounts were manual, family businesses like Tatas could reveal cash
Bank- daily balances for all companies and all branches by getting telex messages
and aggregating it in Bombay House in Mumbai with a projection for cash requirements. ,
the next day for more than 150 companies at that time in the group to Top Management.

Today"s real cash balance is not known in many corprations for the legal entity
operating many branches, even after a few days.

With Computer Power Real Time Accounting in Totality is the need of the hour
for cash, accruals and contingencies.

Ramachandran M
Bangalore
9845726805
Ramachandran Mahadevan <ramachandran_ ca@yahoo. co.in>

3. Again the same auditors, PWC, this were the same guys responsible for global Trust Bank fiacso

CA Sanjay Shah
9833879188
Sanjay Shah <casanjayshah@ gmail.com>

4. The latest Financial Bomb of one of the biggest Corporate Frauds coming to light in view of the Resignation of Mr. Ramalinga Raju from the Satyam Board and the revelations made by him, definitely raise a few questions, which need to be addressed at the earliest.

1.   Whether Mr. Raju is the sole person involved or are there others, which needs to be enquired?
   
2.   Should there not be stringent guidelines for the effective monitoring of the working of family owned businesses?
   
2.   Whether the Auditors of the Company have diligently executed their role?
   
3.   Whether there have been any lapses on the part of the auditors?
   
4.   Do we not need stringent guidelines to avoid Satyam Like situations in the future?
   
5.   Should the Auditors not take moral responsibility for the fiasco?
   

I think we all members should come together and introspect, so that we can make our role more meaningful and ensure that the dignity of the profession is upheld.

CA Vijay Kewalramani
B. Com., LL. B., F. C. A., C.M.A. (Aus), C.F.A.P., LL. M - I (ADR)
Chartered Accountant
108/109, Paradise Towers,
Gokhale Road, Naupada,
Thane - 400 602
Tel : (91 22) 2537 2532
Mob : (91) 98200 73165
Web Site : www.kewalramani.in,
E-mail : vijay@kewalramani.in

5. 1. The Chairman of satyam has admitted that he has been supported by Audtior
   
2. The Big 4 is found in every financial debacle all over world. Due to having misleading all their clients. Many companies are ruinned and the process is still going on.  
   

Somebody from us should go to president of ICAI to ban big 4 in India. ICAI should take immediate action against the adverse remarks  against the Auditor without waiting much.

All chartered accountants without big 4 under Roof of ICAI can better perform then these big 4. For debacle of satyam , the satyam management has accepted the guidelines of Chartered Accountant on which no body should rely atleast for future. The more seriousness is towards audtior and atleast we must forgive from our side to the chairman of Satyam if he co-operates in bringing out  the auditors truthness before the nation.  

CA GIRISH KULKARNI
AURANGABAD
CELL NO 9225306814
EMAIL :-girishkulk@gmail.com

6. ICAI for severe punishment for Satyam CAs and auditors

The apex body of Chartered Accountants ICAI on Wednesday said any member of the body found guilty in the Satyam financial wrong doings would be severely punished and the auditors could even be barred from practising, for the lifetime. "We will ensure that to any person who has not worked according to our standards and our expectations, severe punishment be given," ICAI President Ved Jain said after the financial wrong doings by India's fourth largest IT company were unearthed. Satyam's Auditors, PriceWaterHouseCooper (PWC), declined to comment on the issue and did not entertain any query. Following a letter from Satyam Chairman Ramalinga Raju, who accepted that he had misrepresented facts in the company's balance sheet, the role of auditors and accountants for the company has also come underscanner. In fact, the Ministry of Corporate Affairs announced that role of directors and audiotrs at Satyam will be scanned by ICAI and the apex body of Company Secretaries- ICSI. Jain also pointed out that before the body takes any action against the members involved in the "fraud", it needs to collect all factsand information. "So we are looking into that and we will start our proceedings," he added. Commenting on if its was possible that the auditors were kept in the dark about all the misrepresentation of the accounts, Jain said that it depends on the fact and circumstances of the case. "As the information is tricking down to us, we need to examine what has really happened and how it has all happened," he said. About a possible action against the auditors or others party to the fiancial wrong doing, Jain said that under the Indian Penal Code any person party to a fraud or cheating can be convicted. "All one needs to prove is he was the party to the fraud. He can be booked under the Companies Act and the Chartered Accountants Act... in case of negligence by the chartered accountant, we have a severe punishment," Jain said. Meanwhile commenting on the issue, the apex Company Secretaries body ICSI said that at this stage the body has not come into the picture. "If any member found guilty, we will deal with it according to the company secretaries law," ICSI President Keyoor Bakshi said. In the Company Secretaries Act there is a provision for disciplinary action in palce.If any member, Satyam's company secretary in this case, is found guilty then the maximum ICSI can do is suspend membership, Bakshiadded. He also pointed out that the body has not yet asked for the report from the company and the report will come to them eventually.