The fraud perpetuated by Satyam management and authenticated by Chartered Accountants for last so many years not only exposes the truth of corporate governance but also the quality of Certification done by Chartered Accountants on whom Government believes blindly. Only in the last month, team of CA had clearly denied that they had given any report on value to his son’s company called as Maytas and when doubtful integrity of Satyam management was well established and came to light. Prior to that World Bank had also debarred these companies for eight year for alleged improper financial operation. Inspite of all, regulators like SEBI and Institute of CA’s remained silent spectator only because they all are birds of same feather. As a matter of fact all regulators remains mostly in deep slumber and only when blast like Mumbai blast occurs they are awaken. They will again sleep as soon as the news is forgotten by general mass.
It is not astonishing in Indian context. Companies in general are manipulating their balance sheets in their style and as per their whims just by feeding extra fees/bribes to auditors. In banking industry or in insurance industry or in government run departments, everywhere Chartered Accountants are purchased by gifts in cash and kind so that they may certify their books of accounts as per direction and choice of promoters, CEOs and high profile officers.
CA certification is so much significant in the eye of IT officials ( who are greater evil force in our country) and the government of India ( which is constituted by money eaters) that every company or every traders having turnover of more than Rs.40.00 lacs in a year has to worship CAs and even his supporting clerks and peons. In majority of the audit certification process, CA’s do not even look into books of record seriously. Only their audit clerks (many of them do not even know the ABC of accounts) go to the office of the department /company/traders who pretend to go through books of accounts and CA simply put his signature and Stamp. I put emphasis because in most of audit certificates, CA takes money /fees only for his signature and stamp. Audited balance sheets are prepared after payment of large amount of money and only after the concerned company treat the auditors as their most respected guests.
Money in our country play vital role in every segment of society in deciding the goodness and badness of any individual or any company. Money has the capacity to make or mar the image of anyone and everyone. Money has the power to turn the table in any department, in any office of the country.
Certificates in our country are as such unreliable from quality point of view and hence I never believe in even audit reports of the company. Right from Birth certificate to death certificate, ration card to passport, caste certificate to competence certificate, all can be bought in the office concerned without any linkage with reality. Even ISO certifications, CRISIL ratings, financial ratings all are issued and improved on the basis of money power.
Only God can save us from the clutches of mischievous lot of officers, ministers, professionals like CA’s ruling this country.
And only those who live in fool’s paradise can believe our rulers, administrators, CA’s and businessmen.
Companies like Satyam and Maytas are numerous in all areas of life. We have seen Harshad and Ketan Parikh. We have seen the fate of Chara Ghotala and Stamp scam.
Exceptionally few are however exceptionally good to shoulder the burden of the Nation at large.
Danendra Jain
8th January 2009
CAclubindia
