This is the story of Corporate Governance at VSNL, a Tata Group Managed Company. One needs to check the facts and then form an opinion, even though the author has verified facts before giving independent views, without Malice towards anyone…
As per a statement given to Mumbai Police by VSNL’s Vigilance Officer, on basis of which a FIR was registered, that VSNL’s current M.D.’s Foreign travel advances for 15 months were being embezzled by his P.A., totalling to $ 19,000=00 over 25 occassions.
Incidentally, VSNL’s current M.D. Narsimhan Srinath, in the last Annual Report stated that its his responsibility to establish and mantain financial controls. The statement to VSNL’s shareholders were co-signed by the CFO Rajiv Dhar. However, the internal controls failed only with respect to Narsimhan Srinath, to whom forex advances were continually issued inspite of as many as 5 quarterly audits during the 15 month period.
What were the Internal Financial Controls? How Did they Fail?
The results would be known once Department of Company Affairs and SEBI finish their probe….
This points out to the relative Corporate Governance Guidelines followed by many corporates…The Ethics and Corp Gov guidelines only apply till a level. Noone dares to check with MD as to why advances issued to him by the company keep pending for as many as 15 months….
Only Narsimhan Srinath or Rajiv Dhar can explain… And they ought to going by their own statement to all shareholders.