Madan Lal Bhasin

Bio: Madan Lal Bhasin is an academic researcher from Universiti Utara Malaysia. The author has contributed to research in topics: Corporate governance & Audit. The author has an hindex of 15, co-authored 63 publications receiving 695 citations. Previous affiliations of Madan Lal Bhasin include KIMEP University.

Corporate Accounting Fraud: A Case Study of Satyam Computers Limited

Abstract: From Enron, WorldCom and Satyam,it appears that corporate accounting fraud is a major problem that is increasing both in its frequency and severity. Research evidence has shown that growing number of frauds have undermined the integrity of financial reports, contributed to substantial economic losses, and eroded investors’ confidence regarding the usefulness and reliability of financial statements. The increasing rate of white-collar crimes demands stiff penalties, exemplary punishments, and effective enforcement of law with the right spirit.An attempt is made to examine and analyze in-depth the Satyam Computer’s “creative-accounting” scandal, whichbrought to limelight the importance of “ethics and corporate governance” (CG). The fraud committed by the founders of Satyam in 2009, is a testament to the fact “the science of conduct is swayed in large by human greed, ambition, and hunger for power, money, fame and glory”. Unlike Enron, which sank due to“agency”problem, Satyam was brought to its knee due to ‘tunneling’ effect. The Satyam scandal highlights the importance of securities laws and CG in ‘emerging’ markets. Indeed, Satyam fraud “spurred the government of Indiato tighten the CG norms to prevent recurrence of similar frauds in future”.Thus, major financial reporting frauds need to be studied for“lessons-learned”and“strategies-to-follow”to reduce the incidents of such frauds in the future.

Forensic Accounting: A New Paradigm for Niche Consulting

Abstract: Forensic accounting has come into limelight due to rapid increase in financial frauds and white-collar crimes. But, it is a largely untrodden area in India. The integration of accounting, auditing and investigative skills creates the speciality known as forensic accounting. The opportunities for the forensic accountants are growing fast; they are being engaged in public practice and are being employed by insurance companies, banks, police forces, government agencies, etc. This article seeks to examine the meaning and nature, activities and services rendered, core knowledge and personal skills required for forensic accounting as a specialised field in the accountancy profession. Indeed, there is a future in forensic accounting as a separate niche consulting.

Corporate Governance Disclosure Practices: The Portrait of a Developing Country

Abstract: CG disclosure is a fundamental theme of the modern corporate regulatory system, which encompasses providing information by a company to the public in a variety of ways. In the light of CG compliance requirements and disclosure standards, as envisaged by provisions of Clause 49 of the Listing Agreement, this study analyzes the CG disclosure practices in India. We have primarily used the secondary sources of information, both from the Report on CG and the Annual Report of Reliance Industries Limited (RIL) for the financial year 2008-2009.In this study of RIL, we have developed our own model as a ‘working’ method. In order to ascertain how far this company is compliant of CG standards, a ‘point-value-system’ has been applied. Based on the disclosures made by the Company and an in-depth evaluation of the results, we conclude that this company has shown ‘very good’performance, with an overall score of 85 points. Despite some limitations, this study will help us to pinpoint the effectiveness of CG practices followed by the Reliance group. Based on our findings, we can conclude that RIL group is in the forefront of implementation of “best CG practices in India,” but some scope still exists for its improvement.

Contribution of Forensic Accounting to Corporate Governance: An Exploratory Study of an Asian Country

Abstract: The recent accounting scandals (viz., Enron, WorldCom, Madoff, Satyam, etc.) have induced a crisis of confidence in financial reporting practice and effectiveness of corporate governance (CG) mechanisms. Indeed, Forensic accounting (FA) integrates accounting, auditing and investigative skills to conduct investigations in variety of fraud cases. Thus, an increasing number of researchers are finding that ‘poor’ CG is a leading factor in dismal performance, manipulated financial reports, and unhappy stakeholders. Some leading corporations and regulatory bodies, however, are trying their best efforts to analyze and correct the existing loopholes in the reporting system. In the 21st century, the Forensic Chartered Accountants (FCAs) are in great demand and “FA is listed among the top-20 careers of the future.” During 2011-12, a questionnaire-based survey was conducted in the National Capital Region of India using a sample size of 120 practicing chartered accountants, accounting academics, and potential users of FA services. In fact, this study is a ‘preliminary’ investigation of the necessary skills, education and training requirements for the professional community. The results of this ‘exploratory’ study, with few minor differences, indicate that potential practitioners, academics and users agree that “critical thinking, written & oral communication, legal knowledge, auditing skills, deductive analysis, investigative flexibility, analytical proficiency and unstructured problem-solving are the most important skills required for the FCAs.” Moreover, we found that all of the skills investigated in this study are ‘potentially’ important for the FCAs, which the educators at the Universities should use as an overall guide while designing their FA curriculum.”

Voluntary corporate governance disclosures in the annual reports: an empirical study

Abstract: Corporate governance (CG) disclosure is a fundamental theme of the ‘modern’ corporate-regulatory system, which encompasses providing ‘governance’ information to the public in a variety of ways. This study explores the voluntary CG practices of 50 corporations, over and above the mandatory requirements of clause 49 of the listing agreement. In order to study the voluntary CG disclosure practices, a ‘content analysis’ was done, and finally, a ‘CG disclosure’ index was prepared. We have primarily used ‘secondary’ sources of information, both from the ‘report on CG’ and the ‘annual reports’ for the financial year 2003–2004 and 2004–2005. As a part of voluntary CG disclosure, a total of 40 items have been selected from the CG section of the annual reports and proxy forms. In order to provide a comparison ‘across’ industries, corporations have been selected from four industries, viz., software, textiles, sugar and paper. Appropriate statistical tools and techniques have been applied for the analysis. It has bee...

Out of the Crisis

Abstract: According to W. Edwards Deming, American companies require nothing less than a transformation of management style and of governmental relations with industry. In Out of the Crisis, originally published in 1982, Deming offers a theory of management based on his famous 14 Points for Management. Management's failure to plan for the future, he claims, brings about loss of market, which brings about loss of jobs. Management must be judged not only by the quarterly dividend, but by innovative plans to stay in business, protect investment, ensure future dividends, and provide more jobs through improved product and service. In simple, direct language, he explains the principles of management transformation and how to apply them.

Intellectual capital and performance of pharmaceutical firms in India

Abstract: Purpose – The purpose of this paper is to study the relationship between intellectual capital (IC) and performance of pharmaceutical firms in India. The secondary objective is to propose and test modified models of Value Added Intellectual Coefficient (VAIC™) method. Design/methodology/approach – Data on 22 large pharmaceutical firms collected for empirical investigation. Return on assets and return on sales are performance variables. IC and its components – human capital, structural capital and relational capital (RC), are predictor variables. Three extended and modified VAIC™ models (e-VAIC™) are proposed. Multiple regression technique is applied on pooled data to draw inferences. Findings – Results show instances of positive relationship between IC and performance variables. RC, the new variable, does not demonstrate statistically significant relationship with performance variables. Research limitations/implications – Due to inadequate reporting of IC and its components, availability of data on various...

Intellectual capital and sustainable development: a systematic literature review

Abstract: This paper investigates the literary corpus on the role of intellectual capital (IC) for the sustainable and innovative development of organisations. It provides a quantitative overview of the academic literature that constitutes this field. The paper discusses whether IC, through the implementation of knowledge management (KM) processes, can influence the entrepreneurial orientation (EO) towards the creation of sustainable business models (SBMs), which are outlined in the Sustainable Development Goals (SDGs) 2030 agenda and adopted by all United Nations member states in 2015.,Based on a database containing 45 publications in the English language with a publication date from 1990 to 2019 (October), a bibliometric analysis was conducted. Data on publications, journals, authors and citations were collected, re-checked and examined by applying bibliometric measures.,The bibliographic analysis identified that the research published on IC in the perspective of sustainability focusses mainly on the measurement of results, in terms of increased business performance. The results show that the IC is linked to the concept of long-term value. Therefore, the development potential of the IC is linked to the 2030 agenda for sustainable development (SD). These results also provide a framework for the literature on IC and SDGs by highlighting the connection with the EO to develop SBMs.,This paper contributes to the literature on IC as a driver for SD. In more detail, it provides a systematic review of the literature on these topics under the umbrella of the SDG perspective.