Companies Act, rise in frauds to change India Inc approach

The Companies Act 2013 and a rise in cyber crime and technology frauds will

RELATED ARTICLES

change the way Indian companies operate in the domestic environment, says a report.

"Most recently passed Companies Act 2013 is expected to be a game changer for India Inc and will improve anti-bribery and anti-corruption practises," global management consultancy EY said in report.

The Act highlights additional responsibilities and role of independent directors, increased powers of the SFIO in tightening corporate governance measures in the country. "These, and many other developments in the fraud space in India are expected to change the dynamics of how companies will operate in India," the report said.

EY India's Arpinder Singh, partner and national leader- fraud investigation and dispute services, said, "Organisations will be compelled to rethink their business strategies and evaluate stringent measures to de-risk themselves by institutionalising a holistic framework that fosters transparency, promotes an ethical culture and sustains profitability in the long run."

The report said 2014 will see Indian corporates conducting business operations in a more ethical manner, with a heightened focus towards compliance.

It further said that companies will need to undertake a thorough due diligence procedure before forging any relationship with the third parties.

"This could be related to their background, track record and reputation and check on the possibility of any undisclosed relationships," report said.

The report said that there has been a phenomenal increase in electronic data, and accessibility has made controlling fraud extremely challenging. Fraudsters have become extremely tech savvy, and so cybercrimes are as common as traditional financial frauds, which poses a threat.

"In 2014, forensic data analytics will play a critical role to mitigate fraud in organisations," the report added.

The report further said in 2014, HR will need to manage a broader mandate and will be entrusted with laying the foundation of an ethical culture.

In 2014, organisations will realise the importance of institutionalising a robust whistle-blowing framework to create and maintain a high level of awareness and transparency, the report said.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Amit Shah deserved to be crowned President of India, some say

    The Bharatiya Janata Party is now firmly in the hands of Modi’s alter ego, which in plain English means ‘another side of oneself, a second self’

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Necessary yet inadequate boost to education

The finance minister, in the very first minutes of his ...

Zehra Naqvi

We must overcome the fear of death

It is the biggest irony that the only thing that’s ...

Dharmendra Khandal

Jawai leopards and locals can coexist peacefully

At first glance, the Jawai landscape seems like a large ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture