More than 42,000 cases have been brought for resolution under the Insolvency and Bankruptcy Code (IBC), which has led to a behavioural change in the business landscape, encouraging companies to prioritise financial stability and sustainable practices, according to an official. At an event in the national capital on October 31, IBBI Whole Time Member Sudhaker Shukla also said that while competition and innovation are two things that drive a company, resolvability is a goal to cherish. "It ensures that companies remain sustainable and adaptable," he added.
The Insolvency and Bankruptcy Board of India (IBBI) is a key institution in implementing the IBC. Speaking at a conference organised by industry body Assocham, Shukla positive outcomes have led to a behavioural change in the business landscape, encouraging companies to prioritise financial stability and sustainable practices.
More than 42,000 cases have been brought for resolution under the IBC, he said. Pravin Kumar Tiwari, Full-Time Member at the National Financial Reporting Authority (NFRA), said the regulator's role involves setting high-quality standards and exercising effective oversight over accounting and auditing matters.
"This is aimed at protecting public interest, investors, creditors, and prescribed classes of companies," he added. He also said the NFRA since its establishment has reviewed and recommended 42 proposals from ICAI relating to issuance of new Indian accounting standards and amendments to the existing ones.
Anita Shah Akella, Joint Secretary at the Ministry of Corporate Affairs, stressed on the importance of ESG (Environmental, Social and Governance) aspects at corporates. "Over the past few years, there has been a tremendous improvement in the field of accounting and auditing but what we audit mostly is policy and the gaps in the policy. We have noticed that ESG has still not formed so much a part of company policy which it should have…," she added.
With ESG becoming increasingly integrated with the business interest and SEBI (Securities and Exchange Board of India) having mandated the BRSR, its related obligation, among others, will also play a huge role for auditors to look into the bankruptcy proceedings. "The companies and the legal advisors must be prepared for such complexities," she noted.
BRSR refers to Business Responsibility and Sustainability Reporting.
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