Corporate Governance & Risk Management - by SARDANA

'Poor Corporate Governance'  is like "Corona-virus" infection killing your Company By: Vijay Sardana Member, CDAC, SEBI Public Interest Director on Stock Exchange  Independent Director on  Financial Services Company Advocate, Delhi High Court Who is responsible for destroying once well-known high flying companies like Yes Bank, IL&FS, DHFL, Jet Airways, Karvy Broking, Satyam, ADAG, Unitech, Global Trust Bank, CG Power, Cox & Kings, JP Group, Altico, etc?  What was the common element in all of the above in their downfall? All had a very high profile, highly educated, experienced top management but very poor corporate governance. With the amount of digitization in the financial world, all black sheep will be exposed in the coming days. This will open the opportunities for New India.  Have you insulated your company from the same infection? When the promoter considers his company as his asset or his family asset and ignores symp

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