Podcast Episode 86 CorporateMOM Analytics on Union Budget 2025




CorporateMOM
Corporate Management Orbiter Mission.

Podcast Episode 86 CorporateMOM Analytics on Union Budget 2025 

Budget 2025

Audio Budget 2025

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Podcast Episode 86 CorporateMOM Analytics on Union Budget 2025 

SUMMARY of the Transcript:

1. The Union Budget 2025 focuses on four key engines of development: agriculture, MSMEs, investments, and exports.
2. The budget introduces several initiatives to boost agriculture, including programs to enhance productivity, promote crop diversification, and improve irrigation.
3. For MSMEs, the budget proposes measures like enhanced credit access, digital transformation, and skill development programs to create a robust ecosystem.
4. The budget emphasizes investment through increased capital expenditure, interest-free loans to states, and a new National Manufacturing Mission.
5. I propose setting ambitious growth targets (15-20% CAGR) for individual companies and monitoring their performance daily, especially in areas like transitioning to a green economy and critical metals production.

I conclude: There should be at least one Think Tank guy within a company as a listening post then you are through because we are not looking at a company, we are looking at about a hundred to two-hundred thousand people within a particular company. So it is going to generate a lot of interaction between the government as well as the companies and make the profitability as the main issue. Growth is the consequent issue. Unless the growth comes of at least about 15%, 20% we cannot meet that 2047 as Viksit Bharat, it is not possible unless everybody puts in the effort. That’s why EPP Effort per Person is a very important issue.

It’s not that somebody is giving you a gift that you put it in your pocket and go away. What I am recommending is the monitoring system by MeRIT – Measure, Record, Implement and Track. This is what National Manufacturing Mission has to look at. That being said in terms of your 15% or 20% CAGR. National Manufacturing Mission must introduce to very many companies, as many companies as they can. I’m here to assist you. That is what I strongly recommend.

Every year one budget comes and goes but this year budget I think is spectacular and I appreciate Nirmala Sitharaman who has done a tremendous job. Reciprocity is expected from the companies for their own good. Buck-up Industry, tell us what Industry Associations in different forms went to FM before the Budget and what did you ask the FM? If given all the gifts you had asked for, it is time you show your commitment.

Regards
Jayaraman

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Podcast Episode 85 ICGI 04-05 – Buck up Big4 Audit Firms




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Corporate Management Orbiter Mission.

Podcast Episode 85 ICGI 04-05 – Buck up Big4 Audit Firms
FEC Report – Public Assurance

 

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ICGI 04-05 Buck up Big 4 Audit Firms.mp3

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Podcast Episode 85 ICGI 04-05 – Buck up Big4 Audit Firms
FEC Report – Public Assurance

ICGI 04-05 – Buck up Big4 Audit Firms
FEC Report – Public Assurance

attrition of ethical values as a constant threat to society

The crucial aspect of corporate management is the acknowledgment, from Socrates to Marc Benioff, of the attrition of ethical values as a constant threat to society. Socrates had to teach the unlearned whereas Benioff has to appeal to the senses of the learned. The learned run far more risks than the unlearned. Merely professing fiduciary responsibility for the society insincerely but not being ready to avow, acknowledge, and assume the ethical responsibility to act upon, prevents a company from progressing forward. [My book extract]

In this context I am giving here a few extracts from my Podcast Episode #47 for this presentation deriving conclusions on the big 4 audit firms.

Buck up Big 4 Audit Firms

Here are 5 key points summarizing the transcript:

1. The “Big Four” audit firms (Deloitte, PwC, EY, KPMG) play a crucial role in accounting, but have been involved in auditing controversies with several high-profile companies.
2. There is an “entanglement” between auditors, bankers, and companies, especially in the startup ecosystem, leading to potential conflicts of interest.
3. Several Indian startups (e.g. Byju’s, Go Mechanic, PhonePe) have faced auditing issues, delays in financial reporting, and valuation markdowns.
4. The transcript criticizes the lack of governance in startups and the role of big investors, suggesting that poor governance leads to forensic audits and valuation markdowns.
5. I argue that India’s experiment with foreign audit firms has failed and call for the Big Four firms to “buck up” and improve their performance and responsibility.

 

Regards
Jayaraman

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Podcast Episode 84 ICGI 04- 04 – SOS Governance Standards – Governance over Financial performance




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Podcast Episode 84 ICGI 04- 04 – SOS Governance Standards – Governance over Financial performance

 

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SOS Governance Standards.mp3

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Podcast Episode 84 ICGI 04- 04 – SOS Governance Standards – Governance over Financial performance

Summary

In ICGI Series 4-01 I focused on Empowering Auditors with the emphasis on FEC Report of Auditors – Self Governance. In fact it is Auditing of Auditors.

In ICGI Series 4-02 ESG Audit – I focused on Empowering Auditors with the emphasis on FEC Report of Investee Companies’ ESG Audit. It is indeed Society Assurance.
In ICGI Series 4-03 HACCP of Bank Audit I focused on Empowering Auditors with the emphasis on FEC Report of Banks “SOS Governance Standards” approach to integrate P&L, Balance Sheet and RWA BASEL III parameters and provide a common rating system for Banks.

In ICGI 04- 04 – SOS Governance Standards – I highlight the importance of governance over financial performance

1. I emphasize the importance of governance over financial performance when evaluating companies for investment.
2. A framework is presented that includes fiscal responsibility, ethical responsibility, and corporate culture as key elements of corporate governance.
3. A “corporate atomic structure” is with 308 process blocks, of which 296 are qualitative elements and 12 are quantitative elements of management. [Gone up from 200 to 308].
4. There is a strong emphasis on women’s empowerment, suggesting that women should be given control over the 296 ethical cum co-responsibility factors.
5. I recommend establishing a tracking system for governance standards, focusing on subject-object-self (SOS) governance and measuring, recording, implementing, and tracking fiscal, ethical cum co-responsibilities.

Regards
Jayaraman

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Podcast Episode 83 ICGI 04- 03 – HACCP of Bank Audit FEC Report – Economy Assurances




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Podcast Episode 83 ICGI 04- 03 – HACCP of Bank Audit FEC Report – Economy Assurances

 

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ICGI 04 – 03 HACCP of Bank Audit – Economy Assurance.mp3

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Podcast Episode 83 ICGI 04- 03 – HACCP of Bank Audit FEC Report – Economy Assurances

Summary
“ICGI 04- 03 – HACCP of Bank Audit FEC Report – Economy Assurances” is about
* Jayaraman Iyer sends Narendra Modi a report on HACCP of Bank Audit, emphasizing the need for a “SOS Governance Standards” approach to integrate P&L, Balance Sheet and RWA BASEL III parameters and provide a common rating system for Banks.

ICGI 04- 03 – HACCP of Bank Audit
FEC Report – Economy Assurances

In ICGI Series 4-01 I focused on Empowering Auditors with the emphasis on FEC Report of Auditors – Self Governance. In fact it is Auditing of Auditors. In ICGI Series 4-02 ESG Audit – I focused on Empowering Auditors with the emphasis on FEC Report of Investee Companies’ ESG Audit. It is indeed Society Assurance.
In ICGI Series 4-03 HACCP of Bank Audit I am focusing on Empowering Auditors with the emphasis on FEC Report of Banks by selectively bringing in 13 CCPs Critical Control Points with the SOS Governance Standards Rating System.

HACCP of Bank Audit is Hazard Analysis of Critical Control Points of the Banks with SBI as the case study. The final Ratings are given for the selected 13 CCPs.

1. I advocate for a “SOS Governance Standards” approach to integrate P&L, Balance Sheet and RWA BASEL III parameters and provide a common rating system that is unique for the Banks to move forward.
2. SOS Governance Standards propose Banks prepare FEC [Fiscal-Ethical-Co-Responsibility] Report covering Economic and Social Development Goals – assuring Economy and the Society.
3. I emphasize the need for a dynamic database to track commitments by MeRIT – Measure, Record, Implement, and Track the CREAM Report – Corporate Governance, Risk Management, Earnings, Accounting Quality and Management Quality with everlasting Metrics, bringing CAGR to CDGR.
4. Hazard Analysis of the CCPs take the banks to several Risk Areas that could be handled well by fiduciary controls that are in essence is enabled by SOS Governance Standards, on a daily basis.
5. SOS Governance Standards suggest dividing large workforces into small teams, with one member focused on ethical responsibility to improve accountability and track performance, of each Branch.

 

Regards
Jayaraman

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Podcast Episode 82 ICGI Series 04-02 Empowering Auditors – ESG Audit FEC Report – Society Assurances




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Corporate Management Orbiter Mission.

Podcast Episode 82 ICGI Series 04-02

Empowering Auditors – ESG Audit FEC Report – Society Assurances

Audio

ICGI 04 – 02 ESG Audit – Society Assurance.mp3

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Podcast Episode 82 ICGI Series 04-02

Empowering Auditors – ESG Audit FEC Report – Society Assurances

Empowering Auditors – ICGI 04-02 – ESG Audit
FEC Report – Society Assurances
SOS [Subject – Object – Self] Governance Standards

In ICGI Series 4-01 I focused on Empowering Auditors with the emphasis on FEC Report of Auditors – Self Governance. In fact it is Auditing of Auditors.

In ICGI Series 4-02 ESG Audit – I am focusing on Empowering Auditors with the emphasis on FEC Report of Investee Companies’ ESG Audit. It is indeed Society Assurance.

*Equipping Boards with the Right Data
Effective oversight of ESG will depend on whether today’s boards have the right information at their fingertips. In a research report by Forrester and Diligent, governance professionals indicated that ”’visibility into sustainability and ESG issues”’ was their greatest dissatisfaction.

Summary of my presentation:
1. I advocate for a “SOS Governance Standards” approach to integrate ESG (Environmental, Social, Governance) factors and provide a common rating system that is easily understandable, for all the 9 Social, 4 Environmental and 4 Economic Sustainable Development Goals of 17 SDGs, as well as how to integrate, for societal good.
2. SOS Governance Standards propose moving from “object governance” to “subject – object – self governance” (SOS), where companies establish their own performance standards and auditors provide third-party assurance.
3. I emphasize the need for a dynamic database to track CO2 emissions and climate-related commitments, with a focus on area-wise analysis rather than just per capita or country-wide metrics.
4. SOS Governance Standards suggest dividing large workforce into small teams, with one member focused on ethical responsibility to improve accountability and track performance.
5. I argue that companies need to move from accounting to accountability, setting specific targets (like 15% CAGR) to contribute to national goals such as “Viksit Bharat 2047”or reduce carbon intensity by 47% by FY 2033- 34.

My recommendation to Corporate India – DIY.

Employ Internal Governance Consultants and prepare an FEC Report for all the 296 Process Blocks of Qualitative Elements for your company that include ESG Parameters also.

If you can afford an Accounts Department you can as well afford a Governance Dept., can’t you?

Common ESG rating agencies & firms*
At present, more than 600 agencies issue ESG scores. Some of the most common are:

* Bloomberg ESG Data Services #bloomberg
* Corporate Knights Global 100 #corporateknights
* Sustainalytics ESG Risk Ratings #sustainalytics
* Dow Jones Sustainability Index Family #spglobal
* Thomson Reuters ESG Scores #researchgate
* RepRisk #reprisk
* #esg #esgaudit

[*diligent.com]

* #esg, #esgaudit, #reprisk, #researchgate, #spglobal, #sustainalytics, #corporateknights, #bloomberg

 

 

Regards
Jayaraman

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Podcast Episode 81 ICGI Series 04-01 Empowering Auditors – The FEC Report for Audit Firms




CorporateMOM
Corporate Management Orbiter Mission.

Podcast Episode 81 ICGI Series 04-01
Empowering Auditors – The FEC Report for Audit Firms

Audio

ICGI 04 – 1 FEC Report.mp3

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Podcast Episode 81 ICGI Series 04-01
Empowering Auditors – The FEC Report for Audit Firms

CGI 04 -01 Empowering Auditors
FEC Report for Audit Firms

Empowering Auditors
FEC Report for Audit Firms

1. ICAI must take steps to remove Intangible Assets and replace to a Standard ‘Capitalization of R&D and Development Costs’.

2. Then Audit Firms can feel good to restore GRACE. GOVERNANCE, RESPONSIBILITY, AUTHORITY, CREDIBILITY, ENABLEMENT

Balance Sheet is their territory and allowing a non-monetary so called asset to creep in, is their mistake entirely. Correct it now, now, now.

3. Let me present FEC and CREAM Report for Audit Firms enabling ICAI to prepare an SQM.

4. Entity analyzed as a Corporate Body .

Happy Pongal

PS: An extract from my book:
Quote:
It has a sting in the tail that was not deliberated threadbare during the exposure drafts discussions or at the review stage of IAS 38. The conditions are entirely different in capitalization between 1977 and 1995. There was no need to displace IAS 9 and substitute with IAS 38, enlarging the scope of assets covered. Such intangible assets could have remained or made use of, as off–balance sheet assets, without bringing them into the books of accounts. Even now, strictly an intellectual property right (IPR) is a work-in-progress and gets validated only if a patent is obtained. The balance sheet must be fortified to exclude non-transactional entries. The balance sheet is a simpleton, like a foolish or gullible person, ready to accept what one offers. One can’t keep adding frivolous ideas to it hoping that accounting standards would help remove inconsistencies. Inventory accounting also has several methods of valuation. Select one and keep it simple. Leave the balance sheet alone.UQ

 

Regards
Jayaraman

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Podcast Episode 80 ICGI Series 04 Empowering Auditors AI Co-piloting ABC – Audit Firms, Banks and Companies




CorporateMOM
Corporate Management Orbiter Mission.

Podcast Episode 80 ICGI Series 04
Empowering Auditors AI Co-piloting ABC – Audit Firms, Banks and Companies

Audio

Empoweing ICAI.mp3

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Podcast Episode 80 ICGI Series 04
Empowering Auditors AI Co-piloting ABC – Audit Firms, Banks and Companies

 

1. An Intro to AI as a copilot.

2. Traditionally ICAI has been bringing in Accounting Standards from IASC/B and now IFRS a global standardization for Accounting and Auditing. The IASB operates under the oversight of the IFRS Foundation. The IASB was formed in 2001 to replace the International Accounting Standards Committee (IASC).

3. I pinpoint here IAS 38 Intangible Assets that was introduced in 1998 with the consequential impact on Audit Profession. I have given my recommendations to restore the GRACE [Governance, Responsibility, Authority, Credibility and Enablement] of the Audit Profession.

4. IFRS in its website states:
The purpose of international accounting standards is “to develop IFRS® Standards that bring transparency, accountability, and efficiency to financial markets around the world.

5. I dwell upon the word Accountability, which has not been dealt with by IFRS also, let alone ICAI.

6. In order for ABC – Audit Firms, Banks, Investee Companies and Companies to be transformative in bringing in Governance standards, I present the requisite science based SOS [Subject-Object-Self] Governance Standards with an FEC Report for each of the above mentioned entities.

7. Case studies of M&M and RIL are made available.

8. Empowering Auditors is the crux of my presentation that I call for strengthening ICAI to re-calibrate its working to the demands of our society that is made up of MSMEs and pan puri walahs that our Chartered Accountants cater to, besides being the Statutory Auditors for all listed companies. Our CAs are a wonderful lot inspired by ethical motive. CREAM Report [Corporate Governance, Risk Management, Earnings, Accounting Quality and Management Quality] is common to all, the balance sheet of SOS Governance.

9. I have also recommended to set targets for 2030 and 2047 and play like an ODI to track performance, ex-ante instead of ex-post-facto. All can follow this principle including GoI.

 

 

Regards
Jayaraman

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Podcast Episode 79 ICGI Series 03 Align AI Governance to HI Accountability




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Corporate Management Orbiter Mission.

Podcast Episode 79 ICGI Series 03
Align AI Governance to HI Accountability

Align AI Governance to HI Accountability.mp3

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Podcast Episode 79

ICGI Series 03
Align AI Governance to HI Accountability

Here are 5 key points summarizing the transcript:

1. I discuss aligning AI governance with human intelligence (HI) accountability, emphasizing the need to balance quantitative AI elements with qualitative human knowledge and decision-making.
2. Four categories of AI are mentioned: reactive machines, AI with limited memory, theory of mind, and self-awareness, with concerns raised about the risks of AI with limited memory.
3. The importance of maintaining human control over AI systems is stressed, particularly in corporate settings where standards, codes of conduct, and risk management are crucial.
4. The concept of “self-governance” is introduced as a critical aspect of both human and AI systems, relating to individual responsibility and ethical decision-making.
5. I propose a governance framework (FEC report) that includes both quantitative and qualitative elements, suggesting a structure for managing large workforces and maintaining accountability in AI development and implementation.

 

Regards
Jayaraman

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Podcast Episode 78 Record Societal Changes. by MeRIT




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Podcast Episode #78 Record Societal Changes. by MeRIT

Internal Governance Consultants mp3

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Podcast Episode #78 – ICGI Series #02
Record Societal Changes – I 4.0 Stats by MeRIT – Measure, Record, Implement, Track

Corporate Governance is going to be the primary platform by which companies are going to be watched.

In this context ICGI Series #02 – Record Societal Changes – I 4.0 Stats by MeRIT – Measure, Record, Implement, Track., shall bring in the critical data creation for a company’s operations that is identifiable to the National Grid of Governance Data.

For series #02 I give a detailed analytics on Statistics, firstly I shall bring to your attention what Bibek Debroy, stated, “Supporters and critics agree on the urgent need for reform in India’s statistical system. It’s time for The Ministry of Statistics and Programme Implementation [MOSPI] to address concerns with the statistical system seriously. So we shall.”

That reform must start from Industry. A single company’s data must be identifiable to the National Grid of Governance Data. GDP as well as GNH. So will be a produce data of a single farmer identifiable to an FAO stats. That’s the reform I am presenting here. That’s the purpose of ushering in The Institute of Corporate Governance of India.

In this presentation I give:

1. I advocate for integrating GDP (Gross Domestic Product) with GNH (Gross National Happiness) metrics to provide a more holistic view of development and progress. Recording of Societal changes is made possible.

2. There’s a call for reforming India’s statistical system to provide more timely, accurate and relevant data for policymaking and economic planning.

3. The concept of “Effort Per Person” (EPP) is introduced as a way to measure and optimize individual and team performance, particularly in sectors like agriculture and MSMEs.

4. I discuss the potential for India’s agricultural sector to grow from $450 billion to $1 trillion, emphasizing the role of Farmer Producer Organizations (FPOs) in achieving this goal.

Note: I have retained the benefits of the 3 Farm Bills, Modi introduced.

5. There’s a focus on transitioning to a green economy, with emphasis on opportunities for MSMEs in energy transition metals and reducing dependence on fossil fuels.

So Recording of Societal changes shall begin from Corporate and then build up to GDP and GNH.

Happy New Year 2025 for bettering Gross National Happiness Index.

 

Regards
Jayaraman

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Podcast Episode #77 Internal Auditors are passé Induct Internal Governance Consultants




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Podcast Episode #77 Internal Auditors are passé Induct Internal Governance Consultants

Internal Governance Consultants mp3

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ICGI Series #01 Internal Auditors are passé : Induct Internal Governance Consultants

In 2024 I published 75 research Papers and I set the goal ‘Unleashing other people’s energy’. In 2025 the goal is to set up ICGI – The Institute of Corporate Governance under an Act of Parliament.

In my analytics on Review 2024 I found Corporate would find themselves greatly beneficial setting targets of 15% CAGR and CARR for 2030 and track their performance as moving target for Viksit Bharat 2047.

Corporate Governance is going to be the primary platform by which companies are going to be watched. In order to be of assistance for the companies I am starting an ICGI Series of important topics singularly appropriate for corporate management.

In this context ICGI Series #01 “Internal Auditors are passé Induct Internal Governance Consultants” companies would find useful in restructuring organizations for the future, overcoming the current challenges companies face. Please take a look.

Here are 5 key points summarizing the transcript:
1. I advocate for internal consultants focused on governance, rather than just internal auditors, to shift from accounting to accountability.
2. Companies should set long-term targets (e.g., for 2030) with 15% CAGR (Compound Annual Growth Rate) and CARR (Compound Annual Reduction Rate) for various metrics.
3. The importance of people management is emphasized, with the concept of “return on the intangible” measuring individual ethical responsibility and effort.
4. I propose organizing teams of five people, with one person responsible for ethical oversight as an internal governance consultant.
5. I do criticize current corporate governance practices as insufficient and suggest the creation of an Institute of Corporate Governance of India to improve standards.

Last but not the least: Audit Committee be changed to Governance Commitee.

Merry Christmas and a Happy New Year 2025.

 

Regards
Jayaraman

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