Business Ethics and Corporate Governance, Second Edition

NAREsH CHANDRA COMMITTEE REPORT, 2002

While SEBI was making efforts to introduce corporate governance standards among Indian corporates, the Department of Company Affairs took another initiative in this direction.

The Naresh Chandra Committee was appointed as a high level committee to examine various corporate governance issues by the Department of Company Affairs on 21 August, 2002. The committee’s recommendations mainly concerned issues such as these: (i) the auditor-company relationship; (ii) disqualifications for audit assignments; (iii) list of prohibited non-audit services; (iv) independence standards for consulting; (v) compulsory audit partner rotation; (vi) auditor’s disclosure of contingent liabilities; (vii) auditor’s disclosure of ...