| Rise in incidence of corporate debacles and scams | | | | promoter in Kolkata. |
| in India such as the Satyam fiasco and the recent | | | | However, despite being aware of the benefits of |
| case of embezzlement by a Wipro insider only | | | | adopting stringent corporate governance |
| brings out the need for India Inc, including the SME | | | | practices, a large number of SMEs in India still fail |
| sector, to have strong corporate governance | | | | to comply with the regulatory norms required to |
| policies in place. Strengthening the organisational | | | | strengthen their framework. |
| structure as well as re-examining the | | | | "Although small companies realise the significance |
| administrative strategies has become imperative | | | | of good corporate governance practices, most fail |
| for Indian SMEs to avert corporate frauds in | | | | to execute it properly, thereby failing to achieve |
| future. | | | | the organisational goals by implementing |
| Need for implementation of stringent corporate | | | | appropriate and effective methods," said Nand |
| practices | | | | Kumar Laddha, an independent chartered |
| Adhering to regulatory guidelines is of prime | | | | accountant in Kolkata. |
| importance for SMEs to make their investors and | | | | To improve the quality of governance, SMEs |
| stakeholders hold positive perceptions about the | | | | must reflect on methods that they deploy in their |
| conduct of the company's business. Executing | | | | administration and accordingly undertake |
| good corporate practices will also help small-scale | | | | measures that will help them build up a robust |
| companies to achieve sustainable growth and | | | | monitoring framework. Ensuring conformity with |
| establish responsibility and accountability. | | | | risk management policies will also help small |
| "Better corporate governance practices are | | | | companies to deter possible frauds, thereby gain |
| needed to maintain transparency and ensure | | | | credibility and earn goodwill in the market. |
| fairness in the system. It helps in enhancing the | | | | Implementing healthy accounting and trading |
| organisational performance," said Debasis Dutt, | | | | practices will also help small businesses to function |
| director of Smiling Abode, a small-sized property | | | | smoothly. |