Code Of Conduct

The Cadbury Committee report interalia emphasises the need for the audit committee to play a more active and effective role. The audit committee reviews internal control system, policies and procedures established by the company with respect to purchase, sales, inventory control, cash management and budgetary control system. It also deals with the receptivity of management at various levels to suggestions made by the auditors of the company and implementation thereof.It is well known that qualified report of statutory auditors in respect to investments made or loans given by the company management or other irregularities noticed in the operations, is given perfunctory treatment in directors report as also at the AGMs.

What is required is a general awareness and basic change in attitude. Thus a proposed code of conduct in corporate governance would be welcome.