The India BlogThe India Blog is about the socio-political-economic landscape of the country, its cultural moorings and the challenges it faces – whatever affects the lives and future of the people living within its boundaries and beyond.
Many of us believe that our auditor has no business to tell us how to spend our money. The primary objective of audit is to ensure that books of accounts reflect a true and fair view of the financial position and the auditor must stop at just about that. Legal experts would argue that way back in 1896, it was settled that an auditor is a watchdog and not a bloodhound and so he must not turn into a suspicious scaremonger. This is sacrosanct as far as companies are concerned but does it apply to audit of government's accounts?
CAG's recent performance audit report on allocation of coal blocks and augmentation of coal production pegs total loss to the exchequer at Rs 1.86 lakh crore. This report has once again forced the ruling Congress party to go on a defensive. Soon after...Read more...
After Western banks and non-banking institutions brought the world economy to its knees through imprudent and indiscriminate lending corporate practices, there is widespread revulsion at the plus size pay their fatcats get. A say on pay movement is spreading like a prairie fire in the west. Shareholder spring is in the air.
Shareholders denied Citi bank CEO Vikram Pandit a $15 million pay hike. A revolt over salary increase forced UK insurer Aviva's CEO Andrew Moss to resign. Some of the other companies which had to face shareholders' anger include the retailer Marks & Spencer, advertising company WPP, and brewer SAB Miller. In most cases shareholders did not see any link between pay hike and the performance of the manager.
There are no cases of large public outrage over managerial pay in India....Read more...
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