Govt committed to promoting transparent financial reporting regime: Rao Inderjit Singh
He was delivering the valedictory address at the international conference on 'Transparent Financial Reporting & Audit Quality - Pillars of Corporate Governance', organised by NFRA
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New Delhi: The government is committed to promoting a transparent financial reporting regime, and various initiatives have been taken to improve corporate governance in the country, Union Minister Rao Inderjit Singh said on Wednesday. "We all know that transparent financial reporting plays a pivotal role in enhancing investor confidence and facilitating capital flow into the Indian economy. We have witnessed this in the last ten years, which led to increased capital inflows into the Indian economy, fuelling economic growth, job creation, and overall prosperity," the Minister of State for Corporate Affairs said.
He was delivering the valedictory address at the international conference on 'Transparent Financial Reporting & Audit Quality - Pillars of Corporate Governance', organised by the National Financial Reporting Authority (NFRA) in the national capital. The minister asserted that the government is committed to promoting a transparent financial reporting regime that adheres to global best practices.
Among various efforts to further improve the ease of doing business, the ministry has also started the process of a comprehensive review of various rules and regulations, including those pertaining to the companies law. "Strengthened enforcement mechanisms coupled with initiatives to improve corporate governance signify the government's proactive stance in fortifying the regulatory landscape," Singh said and added that India's journey towards imbibing global best practices in accounting and auditing is not merely a matter of compliance but a strategic imperative.
Delivering a special address at the conference, former Chief Justice of India UU Lalit said that for good corporate governance, you must put the house in order. Once you put the house in order, every regulatory regime and idea is implemented, it will always sub-serve the public interest.
NFRA Chairperson Ajay Bhushan Prasad Pandey said the regulator is looking to engage in a dialogue with stakeholders and ensure there is two-way communication. The watchdog is engaging with audit committees and independent directors at the time of inspection of audit firms to gather their perspectives as part of larger efforts to improve audit quality as well as corporate governance.
