Reliable Financial Disclosures

The need for proper accounting standards and more transparency and reliable financial disclosures by the business community was discussed in the Forum and the speakers stressed their importance for the banks to determine a client's creditworthiness.

It is a fact that banks had become more cautious after the Madhav Patel episode and understandably so due to unreliable financial disclosures by a few businessmen. The banks are finding their own methods and checks for credit analysis.

However, it is seen that some banks have over-reacted and genuine clients are suffering for the errors of a few.

Here, Auditors can play a significant role by stressing proper accounting standards and better financial disclosures and thus help the bankers to determine the credit risk.

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