Good evening !!
Perusal of published limited review opinions or disclaimer opinions by chartered accountants – on public capital deploying corporations / financial institutions of India or perusal of fiscal outlook reports of global investment banking research arms – regarding public capital deploying corporations / financial institutions of India – have only exacerbated the ‘dearth of diligence’ benchmark perception – and both aforesaid opinions attribute grave skepticism, cynicism as well as despondency – towards the whole prevalent scenario of prudence systems, diligence systems as well as internal control systems – in context of whole financial institutions sector deploying public corpus in India.
Off late, colossal public corpus valuation, consequently public capital valuation, is being impaired owing to statutory provisioning, NPA & norms – mandated by RBI / SEBI or mandated under statutory financial reporting standards.
Hence, consequently, skepticism is bound to accrue, as a corollary, towards dearth of vigilant internal control systems, obsolete diligence and prudence exercise systems – prevailing across financial institutional framework across Indian financial institutions & corporations.
Rather exacerbating & perplexing part seems to be – non existent suo-motu vigilant review – even by, so perceived, vigilant watchdog comptroller auditor general of India – despite such colossal impairment and dilution to public capital base.
In context of aforesaid prevalent cynical scenario, time seems propitious for RBI / SEBI / Chartered Accountants research bodies – to pronounce & stipulate the threshold benchmarks – for mandatory adherence – in exercise of prudence diligence benchmarks – especially in context of public capital deployment.