corporate governance in India

This is a big issue in Indian corporate governance because one of the fallout I see is the corporate structure is not been respected and very large managements are also treating it as a proprietary kind of situation and they are not disposing off the earned income in a proper way. The kind of payout that they should have is not happening. They should learn from what’s happening in other parts of the world. We have the lowest payout in this country.

So much of corporate treasuries have been managed and even the laws are in favour of management of corporate treasuries where the treasury income is post tax more or less and the cost of fund within the corporate are pre-tax.

In the IT sector itself, you will find the companies which are well governed, which are transparent, which care for the minority shareholders at a much high PE multiple.

Solution accredited by Mohandas Pai, Head- HR, Infosys, is: “Auditing process should get more rigorous and that all companies should make sure that bank balance confirmation goes directly to auditors”.