The IT-BPO trade body, NASSCOM, has expressed its 'shock' at the disclosures made by Ramalinga Raju today.

Nasscom has called the affair 'most unfortunate' and didn’t hesitate to remind prople of the high standards of ethics and corporate governance it expects.
 
Nasscom said, “This is a stand-alone case of failure of corporate governance and it is critical that it be viewed in this light”.

The Nasscom statement reads: “We are sure that all the stakeholders would also treat this as an isolated issue. This is not in any manner a reflection on the industry or corporate India. We will ensure that customers and other stakeholders get the right perspective. We will also work with the Satyam Task Force to reach out to their customers and employees and guide them through the transition.”

The statement adds, “NASSCOM advocates the highest standards of ethics for the industry and we will work with our membership to re-commit to maintaining the highest standards of governance and transparency”.

Nasscom may also remove Satyam Computer Services from its membership.   

Nasscom Chairman, Ganesh Natarajan said, "The entire incident came us a shock to us. Also, this kind of a fiasco is an unprecedented one in the history of Nasscom. We are looking into the matter on what steps can be taken. Considering the magnitude and implications of the incident, we can even look at banning the company from Nasscom".

The company has been pleading innocence over the past weeks but finally gave up and admitted fraud.

UNITES issued the following statement on the affair:

"With the startling revelations by Satyam Chairman Ramalinga Raju that he has admitted to committing several financial irregularities, Satyam Chairman Ramalinga Raju has brought down the reputation of the whole IT Industry's corporate governance and financial management. The horrendous act is biggest in corporate history. It appears corporate have taken advantage of Economic liberalization and free market capitalism which is only an euphemism for casino capitalism."

UNITES India general secretary, R Karthik Shekhar said, "There is urgent need for the Government of India to appoint a Commission of Enquiry under Commissioner of Enquiry Act".

The chartered accountant association has come out with a statement saying it would take a serious view on any auditing firm which certified the existence of a huge cash balance of Rs.5040 crores without even verifying whether such cash really existed and that a number of private sector banks appeared to be involved in the fraud.

PTI adds: Shocked over how the financial manipulation went on in Satyam Computer Services for so long, the industry today said it was time corporate India stopped giving itself "self-congratulatory" awards and gave a hard look on deeper issues relating to corporate governance.

There are far too many "self-congratulatory awards being given out in terms of corporate governance and disclosures," FICCI President Rajeev Chandrasekhar said.

He said the government, regulators and the bankers should examine "what allowed" the Satyam management to continue with "what went wrong" for so long.

"What happened following Enron in the US is bound to happen here. There is going to be definitely a need for a deeper and harder look at the corporate governance," Chandrasekhar said.

He said, "at the end of the day, hundreds of thousands of investors" have paid a price for the wrong-doings, which need to be thoroughly investigated by the authorities and regulators.

Andhra Pradesh Chief Minister Y S Rajasekhara Reddy today said he was not aware of the details of the Satyam Computer financial fraud, and would take appropriate action after studying the case. Reddy was in Delhi for a meeting with Planning Commission Deputy Chairman Montek Singh Ahluwalia.

"Let me see," was all Reddy had to say when asked what action his government take. X

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