Financial Daily from THE HINDU group of publications
Saturday, Jan 26, 2002

News
Features
Stocks
Port Info
Archives

Group Sites

Corporate - Corporate Governance
Industry & Economy - Industry Associations


Stress on good corporate governance practices

Our Bureau

NEW DELHI, Jan. 25

THE Indian corporate sector must demonstrate harder evidence of their adherence to good corporate governance practices if they are to retain the confidence reposed on them by the financial community, according to Mr R. Ravimohan, Managing Director, Crisil.

Addressing a meeting on "Future of manufacturing in India'', organised by Assocham here, Mr Ravimohan said that industry associations should muster courage and build consensus on weeding out members who are not part of the "good boys bandwagon''.

He also suggested CEOs with diversified businesses exit from all those areas that are not well suited for them.

"A quick decision in this regard will reduce tension and also frictions with the financial community. All companies in manufacturing will have to be adequately capitalised as price cycles of commodities are going to be more volatile in the coming months. Any enterprise having a debt-equity of more than 0.5:1 will end up becoming a sitting duck when prices come down," Mr Ravimohan said.

Stating that the postponement of VAT regime is "bad news" for industry, Mr Ravimohan pointed out that industry is unnecessarily being taxed for Government's complacency. "Industry associations should become activists and raise more noise against the power thefts as well as cross-subsidisation of power-tariffs to the agricultural sector,'' he said.

The Crisil chief also said that the rating agency expects a number of industry sectors to show far better performance on the capacity utilisation front in the coming years. He held that there would be favourable adjustment of demand-supply imbalances in a number of sectors.

"The message is that there is tremendous scope and competitive advantage for the manufacturing sector even though the rules of the game have changed,'' Mr Ravimohan said.

Send this article to Friends by E-Mail

Stories in this Section
LG: New AC models on cards


Tetley may sell US label tea business
BPL Mobile revises tariff in Kerala
AES pulls out of Delhi power distribution race
Tariffs on pre-paid cards cut
Parry Agro buyback gets shareholders' nod
Sirpur Paper to buy back shares
MSEB may pursue fraud argument too against DPC
Apollo Hospitals gets nod for demerger move
Nicholas buys ICI's drug business for Rs 70 cr
Mallya's UB Beer stake may fall to 38 per cent
Stress on good corporate governance practices
Groupe Danone to take fully-owned arm route
HLL to expand wheat project
Transworld to set up development centre
Hughes Escorts to form subsidiary
Report to us first on tariff plans, says TRAI
Cloud of smoke over Zyban
Zyban: Factors that worry...
More PNB branches to accept DCA fees
HCL Insys pact with postal dept
Software for tracking vehicles -- Shapre Global MoU with Canadian co
Mukta music rights
ONGC Videsh pact
Tata Coffee to grow vanilla, arecanut
Modern Foods told to submit revival plan
Esab hopeful of two-fold rise in export income
Samsung targeting Rs 1,520-cr sales
Bharti plans basic telephony in Karnataka soon
Saregama to tone down on FM
ACC reappoints Nambiar as MD
Pepsi HRD head


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line