A recent move by the RBI to reduce branch audits of banks has received significant attention of the media. As per media reports, banks have written to the RBI suggesting reduction in branch audit to reduce non-value added costs.It is argued that with concepts like core banking system and centralised record keeping, the relevance of the audit of branches of public sector banks (PSBs) has significantly declined. RBI will definitely decide the issue considering the pros and cons of reducing audit of branches of PSU banks. However, the move signals that companies have started evaluating audit in terms of the value it creates for them. They do not want to take it as an &lsquo;unavoidable burden&rsquo; any longer. It also signifies that with rapid technological innovations, the scope and techniques of audit are changing fast. This is not unique to the auditing profession. Every profession evolves on a continuous basis to keep itself relevant to the society.

Is audit losing its relevance?

Business Standard

Independence of statutory auditors has received attention of researchers and regulators for ages because independence is the cornerstone of statutory audit. Stakeholders rely on auditor&rsquo;s opinion because it is unbiased and based on professional judgement of someone who is capable of forming a judgement on the issues covered in the audit report. Therefore, laws are formulated to protect the independence of statutory auditors. Oversight and disciplinary mechanisms are strengthened, penalties are imposed for audit failures, environment is created to reduce subtle pressure on audit independence by introducing mechanisms such as rotation of the auditor and prohibition on offering non-audit services, and mechanisms are created to protect audit independence by creating institutions like the audit committee. Even after introduction of such elaborate mechanisms, the concern for audit independence persists.

Will appointment of auditors by regulators enhance independence?

Simply speaking, sustainability is about human well being, this generation and future generations. It is not limited to environment protection. It extends to managing socio-economic impact of decisions by different entities, including companies. Three Ps &ndash; planet, people and prosperity, capture the core principle of sustainability. A company contributes to sustainability only if it follows ethical practices and takes corporate social responsibility (CSR) seriously. A simple operational rule in business ethics is to ask whether the business decision will cause injury to any of the stakeholders, including the future generations of stakeholders. Stakeholders include the local community and the society in general. It is true that managers, all the time, cannot avoid decisions that would inflict injury on some of the stakeholders.

Asish K Bhattacharyya: Whole Life Costing: A more  inclusive  approach

The Government of India has recently used its power under the Constitution to issue a Presidential directive to compel Coal India Limited (CIL) to sign fuel supply agreements (FSAs) with power producers. An FSA will bind the state-owned miner to supply as much as 80 per cent of the fuel requirements of power plants or pay penalties if it doesn&rsquo;t meet the commitment. The government has issued the Presidential directive in the sovereign interest &ndash; to increase power production in order to reduce the gap between demand and supply.

Asish K Bhattacharyya: Independent directors: Are they lame ducks?

The recent ONGC share sale imbroglio, when the Life Insurance Corporation (LIC) was roped in at the last minute to rescue the Rs 12,000 crore issue, has raised many questions on the governance of state-owned enterprises.On March 12, 2012, The Business Standard carried a story titled &lsquo;LIC policy holders carry disinvestment can&rsquo;. The authors reported that &lsquo;while the companies it (LIC) had taken big bets on, have seen their share prices tumble, at least four public offers the insurer avoided have performed very well&rsquo;. On March 5, 2012, another financial daily reported IRDA&rsquo;s concern over corporate governance in LIC. The report mentioned two issues: appointment of CEO&rsquo;s of state-owned financial institutions as independent directors in the board of LIC and inclusion of government officials in the investment committee, which decides investment of funds, including policy holder&rsquo;s fund.

Learning in corporate governance

The approach of the West Bengal administration in handling the AMRI episode is resulting in wide spread discontent among industrialists. FICCI has vented that discontent by issuing a statement reflecting its discomfort.

Role of non-executive directors in spotlight

It is widely accepted that the presence of independent directors in the boardroom improves the quality of corporate governance. Accordingly, corporate governance mechanisms all over the globe, including in India, focus on 'independent directors'. The Companies Bill 2011 includes number of new provisions related to independent directors. It includes a 'Code For Independent Directors' (Schedule IV). According to the Bill an independent director is a director other than a managing director or a whole-time director or a nominee director, who is not a promoter and who fulfils certain conditions specified in the Bill. Primarily he/she does not have any pecuniary relationship with the company or he/she, with relatives, does not hold more than two percent of the voting power of the company. The Bill describes an independent director as a person of integrity, who possesses relevant expertise and experience.

Independent Director - a demigod?

Telugu cinema star Allu Arjun on Sunday appealed to his fans to not resort to any kind of abusive language or behaviour, both online and offline,
amid fresh allegations against him in the Sandhya Theatre stampede case.
A 35-year-old woman died and her eight-year-old son was injured on December 4 during a stampede-like situation at the cinema hall in Hyderabad when thousands of fans jostled to have a glimpse of the actor at the premiere of his recent release "Pushpa 2: The Rule".
Telangana Chief Minister A Revanth Reddy on Saturday alleged that Arjun visited the theatre during the film's screening despite police permission being denied, a charge that the actor denied.
On Sunday, Arjun shared a word of caution for his fans on social media.
"I appeal to all my fans to express their feelings responsibly, as always and not resort to any kind of abusive language or behavior both online and offline," he said in a statement posted on X.
"Misrepresenting as my fans with fake IDs and fake 

Allu Arjun

The National Conference on Sunday ruled out joining the BJP-led NDA and dismissed as baseless a media report in this regard.
This news being peddled by certain so-called journalists is nothing but a blatant lie, driven by malicious intent to mislead the people of Jammu and Kashmir, National Conference chief spokesperson Tanvir Sadiq said.
He was reacting to a report published in a newspaper that claimed Jammu and Kashmir's ruling party might be preparing grounds for a return to the BJP-led National Democratic Alliance (NDA) in exchange for the Union Territory's statehood.
"It is disgraceful and irresponsible for anyone to spread such baseless rumours... Let me challenge the individual behind this fabrication: name the so-called 'top BJP leadership' that Omar Abdullah alleged to have met, or immediately retract your claim and issue a public apology," he said in a post on X.
Sadiq also said Abdullah's meeting with Union Home Minister Amit Shah in Delhi was held in full public view.


BJP Flag, BJP

Iran's supreme leader on Sunday said that young Syrians will resist the new government emerging after the overthrow of President Bashar Assad as he again accused the United States and Israel of sowing chaos in the country.
Iran had provided crucial support to Assad throughout Syria's nearly 14-year civil war, which erupted after he launched a violent crackdown on a popular uprising against his family's decades-long rule. Syria had long served as a key conduit for Iranian aid to Lebanon's militant Hezbollah.
Iranian Supreme Leader Ayatollah Ali Khamenei said in an address on Sunday that the young Syrian has nothing to lose" and suffers from insecurity following Assad's fall.
What can he do? He should stand with strong will against those who designed and those who implemented the insecurity," Khamenei said. God willing, he will overcome them.
He accused the United States and Israel of plotting against Assad's government in order to seize resources, saying: Now they feel victory, the 

Ayatollah Ali Khamenei, Ayatollah Ali, Ayatollah

This initiative aims to bolster the country's medical sector, which currently operates approximately 50,000 ambulances

Ambulance

Against the backdrop of Parliament witnessing poor productivity due to disruptions, Vice-President Jagdeep Dhankhar on Sunday called for accountability of lawmakers and said people would force them to think why they were sent to Parliament.
He also said that for any democracy to succeed, expression and dialogue must go hand in hand with great responsibility on both sides.
Dhankhar is the Rajya Sabha's ex-officio chairman.
Calling for accountability among parliamentarians, he said, "... Make no mistake, I am referring to parliamentarians. People have learned to take disorder as order. There is no sense of revulsion."
Hopefully, people will write and their thoughts will move, the vice-president said, according to an official statement.
"People will force you to think, why did you go there (Parliament)?" he said.
Addressing awardees of the Chaudhary Charan Singh Awards - 2024, the vice-president said agriculture was the spine of rural development.
"Unless agriculture develops, the 

Jagdeep Dhankar, jagdeep, Vice President, VP

GST Council addresses disaster levy, clarifies tax exemptions, and revises ITC norms, while deferring insurance premium GST cut and key rate rationalisation decisions

GST council meeting

After two weeks of buying, FPIs turned net sellers in Indian equities this week, with a net withdrawal of Rs 976 crore amid a strengthening US dollar and steady rise in US 10-year bond yields, impacting investor sentiment.
Foreign Portfolio Investors (FPIs) began the week on a positive note, investing Rs 3,126 crore in equities during the first two trading sessions (December 16-20).
However, the trend reversed in the latter half of the week, with FPIs offloading equities worth over Rs 4,102 crore in the subsequent three sessions. This resulted in an overall net outflow of Rs 976 crore during the week, data from National Securities Depository Limited showed.
Despite this short-term reversal, the broader December trend remains positive. FPIs have infused Rs 21,789 crore into Indian equities so far this month, reflecting continued confidence in India's economic growth potential and its resilient markets.
FPIs adopted a cautious approach due to the US Fed meeting and uncertainty about 

Foreign portfolio investor exodus: Financial sector bears the brunt, FPI

Fundraising via IPOs in India hit another landmark as economic growth, favourable market conditions and improvements in the regulatory framework helped companies raise a record Rs 1.6 lakh crore in 2024, while the pipeline for the next year holds out bigger promise.
This exceptional year not only reflected the confidence of issuers but also highlighted investors' eagerness to seize listing-day gains or back companies with strong long-term growth potential.
The year was marked by Hyundai Motor India's historic IPO, the largest in the country's history, which raised Rs 27,870 crore.
Companies of varying market capitalisations -- large, mid, and small -- tapped into the IPO route in 2024, with the average issue size rising significantly from Rs 867 crore in 2023 to over Rs 1,700 crore in 2024.
The exceptional vibrancy of the IPO market was evident, with December alone seeing at least 15 launches.
"Rising retail participation, strong domestic inflows and active participation by FPIs (

ipo market listing share market

The accumulated losses of state public sector enterprises (PSEs) rose from Rs 3,953.70 crore in 2020-21 to Rs 4,778.70 crore in 2022-23, while the profit earned by 13 SPSEs stood at Rs 20.21 crore as on September 30, 2023, according to a report by the Comptroller and Auditor General (CAG) on finances tabled in the Assembly on Saturday.
The net worth of nine out of these 14 PSEs has been completely eroded by losses and their worth was (-) Rs 1,932 crore against an equity investment of Rs 2,085.59 crore, while three PSEs have outstanding government loans amounting Rs 3,132 crore, the report said.
Himachal Pradesh State Electricity Board topped the list of loss making enterprises with accumulated losses of Rs 1,809.61 crore, followed by Himachal Pradesh Road Corporation at Rs 1707.12 crore, HP Power Corporation at Rs 552 crore, Himachal Pradesh Power Transmission Corporation at Rs 395.91 crore, HP Financial Corporation at Rs 180.97 crore, State Forest Corporation at Rs 113.04 crore, HPM

The Centre may overshoot the Rs 56,260 crore target for dividend receipts from central public-sector enterprises (CPSEs) set for FY25 and is likely to end up getting around Rs 65,000 crore this financial year, according to a senior government officia

A 50-year-old doctor from Saudi Arabia, who has been living in Germany since 2006, is the prime suspect in the Christmas market attack in Magdeburg, which killed five people

Germany police

Most managers believe that green energy and banking could be prominent investment themes for the year ahead

The official further noted that this year's Budget consultations are particularly significant due to the political outcomes of recent state elections

Nirmala Sitharaman, Nirmala

The company's new bookings rose to $18.7 billion for the first quarter from $18.4 billion a year earlier

Accenture

Relli highlighted potential policy disruptions in the United States next year that could fuel inflation, with monetary policy responses being insufficient to address these challenges

HDFC Securities

Women constitute less than 20 per cent of the overall workforce, and only 10 per cent hold key managerial personnel (KMP) positions even as companies are making efforts for diversity, according to a report.
Women constitute less than 20 per cent of the overall workforce and hold just over 10 per cent of KMP positions, while female directors account for less than 20 per cent of the total board director positions, according to the 'Mind the Gender Gap' report by CFA Institute and CFA Society India.
The 'Mind the Gender Gap' report is based on insights from 300 Indian companies through their Business Responsibility and Sustainability Report (BRSR) disclosures.
The report also revealed that women board members and KMPs receive significantly lower compensation compared to their male counterparts, highlighting a gender pay disparity at the top level.
Female directors earn only 44 per cent of the median salary of their male counterparts, while female KMPs receive less than 25 per cent of 

Women employees at work in Tata Power Solar's Tirunelveli unit. This is the largest single-location solar cell or photovoltaic (PV) cell and module manufacturing facility in India.

Congress calls FIR against Rahul Gandhi over Parliament scuffle a 'badge of honour', alleging BJP's vendetta and diversionary tactics to counter his protest against Amit Shah's Ambedkar remarks

Rahul Gandhi, Rahul, congress leader

The latest Economic Survey said, India has to find the right balance between importing goods from China and importing capital (FDI) from China

How policymakers are split over attracting Chinese investment into India

The I-T department probes Rs 7,500 crore spent on lavish weddings, targeting Jaipur planners and fake billing networks linked to foreign destination events and cash transactions

weddings, marriage

The Banning of Unregulated Lending Activities Bill calls for the CBI to handle probes in cases spanning multiple states or UTs

The Centre, in collaboration with states, has proposed to classify unregulated lending as a cognizable and non-bailable offence, with penalties including imprisonment of up to 10 years. The finance ministry has invited feedback by February 13 from st

Asish K Bhattacharyya

Asish K Bhattacharyya

Page 5 - Asish K Bhattacharyya

Is audit losing its relevance?

Will appointment of auditors by regulators enhance independence?

Asish K Bhattacharyya: Whole Life Costing: A more inclusive approach

Asish K Bhattacharyya: Independent directors: Are they lame ducks?

Learning in corporate governance

Role of non-executive directors in spotlight

Independent Director - a demigod?

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Express responsibly, avoid abusive language, behaviour: Allu Arjun to fans

Baseless report: National Conference rules out joining BJP-led NDA

Syrian youth will resist incoming govt, says Iran's supreme leader

Five OEMs express interest in manufacturing e-ambulances: MHI official

V-P Dhankar calls for accountability of MPs over Parliament disruptions

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55th GST Council takes key decisions, defers rate cuts on insurance premium

FPIs pull out Rs 976 crore from Indian equities amid rising dollar

IPO boom: Record Rs 1.6 trn raised in 2024; bigger gains expected in 2025

Losses of Himachal's 30 PSEs rose from Rs 3,953 cr to Rs 4,778 cr: CAG

Who is the Saudi-born suspect behind Germany Christmas market attack?