good governance requires vigilance by the board. India will need more of that. Institutional investors and the media will have to scrutinize companies more deeply. None of that necessarily requires new law. Indian corporate law is mature. India should take a look at what happened in the U.S. after the Sarbanes-Oxley law of 2002 before it decides to bring back some of its old red tape.
1. Satyam will launch Satyam-PWC Centre of Creative Accounting & Management (SCAM)
This Centre will be headed by Srinivas Vadlamani. Satyam Associates can enrol in this SCAM and develop their creative accounting skills. SCAM will impart best practises by benchmarking with other world class firms like Enron and Worldcom. People who know US-GAAP and other accounting standards need not apply as you are over qualified. Your skills will be put to full use during quarter close and year-end. Placement is assured in one of the Satyam group companies like Maytas, Samtay, Tamasy, Tasmay etc…
6. Employees who nod their heads well will be appointed to the Board and will be paid Rs. 12 Lakhs per annum. The best such nodder will be paid upto Rs. 1 crore per annum. Such directors need to maintain silence at the Board meetings. The only word they are allowed to say is YES. Although you will be called independent directors, you'll have to depend on Raju & Co. for everything.
During the past five years virtually all emerging economies boomed. Now their fortunes will diverge much more. The most important factor determining how they cope with the recession in the rich world will be whether they are high savers, able to stimulate their own economies, or big borrowers. If international investors continue to shun risk and rich-world governments swamp markets with their own borrowing, it will be hard for emerging-market governments to issue bonds and for banks and firms to roll over debts. Some developing countries will therefore remain sluggish for longer than others.
Overall, however, their long-term prospects remain good, thanks to structural reforms and better macroeconomic policies over the past decade…That word “decoupling” may yet get dusted off again.
In all probability the guy in accounts will tell you that this is a serious deviation from corporate policy and clearing the Red Bull bill will need, at the minimum, a special decision by the board of directors. But only after you file an official request in triplicate, which is signed by the V-P (HR) in Bangkok. So, you end up spending thousands of rupees in international calls and courier charges to, effectively, consume a can of energy drink.
But the CEO of the same company, on the other hand, can one day solemnly send out a fax to all the branches saying that something terrible has happened and they can’t seem to find the asset side of the balance sheet anymore.
Try saying that to your credit collection goons. See who loses his asset side then.