Page 47 - DCICAI SOUVENIR 2019

to have a clear strategy of as to what need to be 11. Appointment &Rotation of auditors &
delegate to management and how to monitor and Directors: There is a need to have a relook at the
evaluate the implementation of policies, strategies appointment process of independent directors
and business plans It needs to frame policy for and auditors in respect of the listed entities and /
delegation and approvals of the transaction, which or the corporate having public interest and /or
could be referred by the executives and the audit bank borrowings exceeding a specified limit. To
team simultaneously. provide independence to directors and auditors
there appears to be a need to maintain a panel
7. Adoption of technology: Adoption of state of art for both the appointments with certain regulators
technology arms a company with tools that enable rather than appointments be made by promoters
an efficient conduct of business in the modern and managements.
world of IT. Adoption of an efficient technology
ensures transparency and accountability. A good 12. Putting cap on non-audit services by auditors:
investment in a robust software offers adequate The auditor should be barred from providing non
levels of security to combat data tampering and audit services such as management consultancy,
cyber risks, etc thereby supporting the best tax consultancy, valuations etc. The idea is that
practices for a good corporate governance system. reporting of auditors should not be influenced by
These days internal auditors need to be equipped any other consideration. The independence of
with tools for artificial intelligence. the auditor has been critical issue in the modern
scenario.
8. Encouraging whistle blower mechanism: The
pre-emptive whistle blowing infrastructure and bye 13. Mechanism for holding informal meetings:
laws will promote people to come out and speak The company should outline the mechanism for
about anything dubious happening around in the pre-meetings/ informal meetings with board and
corporate. Whistle blowers need to be provided committee chairs to discuss the agenda and
protection. prepare for the upcoming meetings. This exercise
let the board and committees discuss some out
9. Strict adherence to statutory compliances: of the box ideas/issues without any burden of the
Each dubious and fishy event revolves around compliance.
noncompliance with the statutory obligations. This
needs to be addressed strictly. A robust mechanism
for statutory compliance can complement the
effective governance systems It provides an early
alarm for risks.

10. Development & establishment of Informal
channels of communication: The relevance
of a sound communication channel cannot be
over emphasized, since the fate of a company
rests on good implementation, for which a robust
communication is a prerequisite. The intention to
run the company on a good corporate system, and
specific objectives and course of actions must be
communicated effectively to target groups. Without
this, there can be an unhealthy lack of relevant
information, or dangers of miscommunication.