?Internal, statutory auditors need to coordinate better?

Corporate affairs minister, Salman Khurshid on Saturday met various industry players to discuss major issues surrounding the corporate sector under the aegis of Confederation of Indian Industry (CII). Some of the major issues that were taken up at the meeting were the role of corporate governance, Companies Bill, role and responsibilities of independent directors and auditors.

Talking about the Companies Bill, Khurshid said that 95% of the concerns have been addressed in the bill. The standing committee after the consultation of the industry players and the stakeholders will give its final approval.

Expressing the need for a better auditing system in the country, Khurshid said, ?For having a transparent and effective auditing system in the country, there is a need for better coordination between the internal auditors and the statutory auditors. This would be a step forward towards good corporate governance?.

The industry representatives who were present at the meeting were JJ Irani, Tata Sons director, Venu Srinivasan , chairman, TVS Motor, Hari S Bhartia, Co-CMD of Jubilant Organosys , Sunil K Munjal, chairman, Hero Corporate Service, Kiran Karnik, chairman of the board of Mahindra Satyam and Naresh Chandra, former Cabinet secretary.

Talking about Satyam, Khurshid said the government has moved an application in the Company Law Board (CLB) to recall its nominated directors from the board of Mahindra Satyam.

When asked if all the six members or some would be recalled, he added, ?that will be the decision of the board, not our decision because we only had to pinpoint who will be useful at the time of the crisis?.

Kiran Karnik, chairman of the board of Mahindra Satyam, said, ?The job is done but the investigation is on and if the government feels that the investigation would be aided by having a presence on the board, then may be one or two directors can continue. But most of us can now withdraw. The job that we were supposed to do as far as we are concerned is almost over?.

The minister further said in order to provide relief to the small and medium enterprises who had been bearing the brunt of recession, auditing norms could be relaxed.

?As far as the disclosure norms are concerned, they will remain the same for both the big and small corporates,? added Khurshid.

He further said, ?Quick judicious verdict for companies is the need of the hour and we have tried to solve this aspect in the Company?s Bill. An affirmative and expeditious action is important for good governance. At the same time, the issues related to corporate social responsibility and exclusive growth as an extension of responsible corporate governance is engaging the attention of the ministry, the corporate sector and their stakeholders?.