Corporate Governance & Risk Management - by SARDANA

Economic Slowdown, Business Ethics & Corporate Governance Everyone is talking about an economic slowdown, credit crunch and lack of investments. Various options and measures are suggested by experts. The role of government and financial institutions are also under the public lens. Business decisions can go wrong in the real world. We all must appreciate this fact.  What about fund diversion, related party transactions at higher than market rates, manipulation of balance sheets to seek funds from banks, under-invoicing and over-invoicing to avoid taxes, fake bills to claim GST refunds, key management persons from the same family to ensure manipulations go un-noticed to the outside world, abusing the bargaining power against smaller vendors after using their services and products and putting their existence at risk and forcing bankruptcy and unemployment due to non-payment to vendors, are many such examples which clearly indicates that ethics and governance are compromised i

The Fastest Growing Economy of the World is suffering from huge stressed assets & NPAs. Why? Reasons:  Poor Risk Assessment &  Failure of Corporate Governance By Vijay Sardana Today big names in infrastructure, real estate, capital goods, pharma companies, rice, edible oil, many food companies are Non-performing Assets (NPAs) in a fastest growing economy of the world. In the same regulatory regime some are doing very well, and others are becoming NPAs.  Is this the fault of policy makers or the fault of business managers and Board of Directors?  What do you think? What is Business Risk? Business risk is the possibility a company will have lower than anticipated profits or experience a loss rather than taking a profit. Business risk is influenced by numerous factors, including sales volume, per-unit price, input costs, competition, the overall economic climate and government regulations. A company with a higher business risk should choose a  capital s

Corporate Governance Concerns in India By: Vijay Sardana Some of the well-known leading companies in real-estate, pharmaceuticals, steel, infrastructures, financial services, healthcare, FMCG, brokerage firms, banks, software companies, commodity companies, etc are facing both regulatory challenges, bashing from investors and consumers due to poor corporate governance .   In many cases their directors and senior managers are facing litigation including imprisonments, some are out on bail, others have applied for anticipatory bail many are denied starving aboard and under constant surveillance and in the worst situation, some of them have even committed suicide. It is important to know that once upon a time they all were big names and favourite guests of industry associations and on media and were considered as celebrities. All these shattered because they refused to accept their responsibility as good corporate citizens and violated corporate governance norms. Imagine t