CA Sansaar
NFRA Chief Calls for Stronger Disclosure by Audit Panels
PrintThe NFRA Chairman recommended that companies set up a dedicated risk management committee at the board level to proactively identify and manage emerging risks, including those related to artificial intelligence (AI), environmental, social and governance (ESG) issues, and cybersecurity threats, in order to strengthen corporate governance and ensure better preparedness for future challenges.
NFRA Chairman Nitin Gupta has urged Indian companies to develop a new, more detailed reporting format for audit committees, stating that the current level of disclosure is not enough for investors to properly understand business risks.
He highlighted that while the Companies Act, 2013 and SEBI’s Listing Regulations assign important responsibilities to audit committees to safeguard the interests of investors, creditors, and the public, very little information is actually made available about how effectively these duties are carried out. He emphasized that merely stating the number of audit committee meetings held is not sufficient to ensure transparency.
NFRA Chairman Nitin Gupta has urged Indian companies to develop a new, more detailed reporting format for audit committees, stating that the current level of disclosure is not enough for investors to properly understand business risks.
He highlighted that while the Companies Act, 2013 and SEBI’s Listing Regulations assign important responsibilities to audit committees to safeguard the interests of investors, creditors, and the public, very little information is actually made available about how effectively these duties are carried out. He emphasized that merely stating the number of audit committee meetings held is not sufficient to ensure transparency.
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