Letters: Reality of 'real' accounting

The editorials in the January 8, 2009 edition of the Business Standard (‘Compliant and complacent’ and ‘The cost of the DMK’) are very relevant. It would be interesting to know what fellow journalists have to say about the points raised. Does everyone maintain discreet silence and look sideways even at closed door parties? Is it easier to go after junior level government or public sector officials or some hapless minister who is not politically well connected and is not worth a few billion dollars?


As an Indian citizen, I am curious and remain uninformed about what are the illegalities (if any) about donations to the Clinton fund. If I remember right some time back there were reports about taped conversations on influence peddling and bribery in which judges were referred to by name? Again, the repeated pieces in Business Standard about the telecom licences handed out for a song?

I would also like to know about what action has been taken on allegations made (several media reports are readily available on Google) about specific violations of the Sebi Act and regulations. And, I did not see follow up media coverage about the RBI slapping a fine on a company for using ECB proceeds for capital market activities.

The recent revelations about Satyam are startling. However, I know at least four CEOs who have told me about how they manipulate who heads their so called “independent” Audit Committee. I guess this is helpful when it comes to fudging accounts. Further, they are quite open about how shell companies are set up with token equity, which is provided by somebody in the sponsors’ family. Later, substantial assets are transferred for a song to the shell company. Very soon this shell company, now worth quite a bit, is sold back to the parent company for a relatively large amount etc. I would be surprised if some other companies are not indulging in similar practices.

All this is distressing stuff. I guess one can only shrug and get back to work. Hopefully, real “accounting” does get done about this kind of stuff at times.