The Confederation of Indian Industry on Wednesday expressed its shock and disappointment at the disclosures made by B Ramalinga Raju on the financial position and financial statements of Satyam Computer Services [Get Quote].
CII believes there is a need to immediately examine the loopholes in regulation, accounting, audit and governance that allowed such lapses to occur and address them with urgency.
While the occurrence of such events in a major company is a matter of deep regret, CII believes it would be inappropriate for this to be the basis of questioning of general governance standards in other companies.
Corporate India must, however, reflect on ways to demonstrate its quality of governance and enhance the confidence of stakeholders.