NARESH CHANDRA Committee REPORT 2002

PRESENTED BY:SAHANA HIREMATH

M.COM III Sem

CORPORATE GOVERNANCEIN THE EYE OF KAUTILYA

Kautilya’s view regarding governing a monarchy is equally applicable in successfully running a corporate sector in modern business context.

• Strict Corporate Governance can win the confidence of;

Government ,employees, customers & other stakeholders

What is CORPORATE GOVERNANCE?

NARESH CHANDRA COMMITEE report

2002ROAD TO

CORPORATE GOVERNANCE

RECOMMENDATIONS:

AUDITOR COMPANY RELATIONSHIP

AUDTING THE AUDITORS

INDEPENDENT DIRECTORS

OTHER RECOMMENDATIONS

AUDITOR & COMPANY RELATIONSHIP

Certification of annual audited accounts by CEO & CFO

AUDITING THE

There should be established, with

appropriate legislative support, three independent Quality Review Boards (QRB), one each for the ICAI, the ICSI and ICWAI, to periodically examine and review the quality of audit, secretarial and cost accounting firms, and pass judgement and comments on the quality and sufficiency of systems, infrastructure and practices.

SETTING UP THE INDEPENDENT QUALITY REVIEW BOARD

PROPOSED DISCIPLINARY MECHANISM FOR THE AUDITORS:

Dealing with the complaint casesDisciplinary committee framed by ICAIPublication of the punishment awarded

Funding

INDEPENDENT DIRECTORS

• Free from business or any other relationship with co.

DEFINATION

• 50% of directors have to be independent directors

PERECENTAGE

• In all the listed & unlisted co.s 4 out of 7 have to be independent directors

BOARD SIZE

• This will serve as the Committee’s ‘action taken report’ to the shareholders

AUDIT COMMITEE CHARTER

•Exempted from civil & criminal liability

EXEMPTION FROM CERTAIN

LIABLITIES

•Training program for independent directorsTRAINING

THANK YOU

OPEN FOR QUERIES