The Satyam Computer Services scam has highlighted the need for more powers for independent directors and reforming internal auditing standards, a top Infosys official said on Tuesday.
"We have to improve the institutional framework of companies... (and) need to give more powers and authority to independent directors. Also, the regulations should be enforced much faster," Infosys Technologies board member, Director (Human Resources) T V Mohandas Pai told reporters on the sidelines of an IBA-organised seminar in Mumbai.
Noting that the Satyam case is an aberration and unlikely to affect the domestic IT industry, Pai said the law needs to be amended to ensure that auditing standards are enforceable.
"I strongly feel that this (Satyam fiasco) is an aberration... this is a fraud. This has nothing to do with the risks in (the) industry. The law needs to be amended to make sure that auditing standards are enforceable. We need to remember that nothing can eliminate fraud but can only minimise fraud," Pai said.
Asked if the Government will bail out the crisis-ridden Satyam Computer, Pai declined to comment on the matter saying that the government has taken swift measures to face the situation.
"I don't want to comment on this (Satyam bailout) except (to say) that the government is making the regulatory environment stronger," Pai said.
Infosys has made a suggestion to the government that larger companies should move to International Financial Reporting Standards by 2010 for greater transparency in Indian firms, he said.
On whether Infosys has plans to hire Satyam employees, Pai said, "Infosys has taken a stand (on recruitments)."
