The Tech Phoenix: Padmashri. TN Manoharan on the Revival & Resurgence of the Global IT Giant, Satyam.
Could you perhaps talk about this tiger that Mr. Raju couldn't so easily get off from? And also, looking back, what would you say was the biggest problem that led to this scam? People? The process or was it technology? I would really love to have your thoughts
Manoharan T N
@Manoharan · 4:27
On the balance sheet and corresponding reserves inflated profits shown as reserves was also on the liability side of the balance sheet so this is the tiger which Raju is referring to that it has accumulated to such a large figure there was no way he could clean it up. Now, the supplementary question that you asked also biggest problem that led to the scam is it people process, technology? All the three. I would say there was a global financial crisis
Thank you so much for sharing that. Sir, what were your initial thoughts when you received the call inviting you to be a part of the government appointed Board of Directors to revive Satyam? Could you tell us a bit about the rest of the iconic team that steered Satyam out of Calamity and how your experience was working with all of them?
Swell Team
@Swell · 0:15
Manoharan T N
@Manoharan · 5:00
In other words, the statutory auditors, internal auditors who carried out the audit function, they are prone for criticism as to how they not detected this fraud. So I thought it is a golden opportunity for me to step in and see what positive contribution I can make in the turnaround of the organization and thereby repair the damage or separate what dent might be created on the image of the profession. Secondly, the reputation of the nation also was at stake
Thank you for that, sir. So the scam highlighted several loopholes in the Indian corporate governance structure, like unethical conduct, fraudulent accounting, oversight by auditors, ineffectiveness of the board, just to name a few. But since then, substantial changes have been made with respect to corporate governance in the country. Do you think a scam like this, of this scale, can happen in India again?
Manoharan T N
@Manoharan · 5:00
First aspect, second aspect is even when frauds occur, how fast and how effectively they can be detected. So from that angle, lot of measures have been put in place, like internal financial controls have to be tested and the efficacy thereof has to be certified by the auditors. And the whole lot of cyber security, risk management, these things are being given due importance. So from that perspective, detection could be more efficient because of the changed norms and regulations
Thank you, sir. I'll leave you with one final question. Your book took me back in time, 14 years back to be precise, to witness a remarkable corporate rescue operation that was completed in under hundred days. I am curious to know if you had always planned to write a book about the Satyam resurrection also, any particular reasons why the book took a longer time to be written?
Manoharan T N
@Manoharan · 4:59
That time also I made effort. Then I came to know in international publication houses it is a long queue pipeline through you cannot approach directly. You have to go through a book agent. It takes three to four years and all that. Then on returning in 2020, I mean Lockdown happened. So I gave the manuscript. Fortunately, Patabiram is a good friend of mine though he's a chartered accountant by professional qualification, he's a journalist by passion. He has authored so many books
Thank you, sir, for all the insights you've shared and for giving us behind the scenes look of what really transpired during those eventful hundred days post the Satyam scam. It's been a pleasure and an honor to have had this conversation with you about your exceptional contribution in reviving Satyam today's. Corporate leadership teams sure could learn a lot from the book, where each chapter is a lesson as well as a takeaway. I shall also share the link to the book here for our listeners to check out