The Centre is committed to promoting a transparent financial reporting regime that adheres to global best practices, Rao Inderjit Singh, Minister of State for Corporate Affairs said on Wednesday.

“We all know that transparent financial reporting plays a pivotal role in enhancing investor confidence and facilitating capital flow into the Indian economy.

We have witnessed this in the last ten years, which led to increased capital inflows into the Indian economy, fuelling economic growth, job creation, and overall prosperity”, Singh said in his valedictory address at the National Financial Reporting Authority (NFRA) organised first ever international conference in the capital.

India’s journey towards imbibing global best practices in accounting and auditing is not merely a matter of compliance but a strategic imperative, he added.

Singh highlighted that the recent interim budget lays a robust foundation for India’s journey to becoming a developed nation by 2047. “The commitment to sustainable and equitable development, coupled with strategic investments in infrastructure and human capital, sets the stage for growth rates exceeding 7-8% over the next few decades”, he added.

Singh said that the role of the corporate sector will be critical for achieving India’s goal of becoming a developed nation by 2047.

“This vision is going to be achieved with all of us acting together and creating a trusting ecosystem for investors and creditors”, he added.

NFRA Chairman Ajay Bhushan Pandey, who summed up the key takeaways from the international conference, said that NFRA and the MCA had been concerned about auditor responsibilities around fraud as it was seen that some guidance issued around it was not very helpful. “It was heartening to note the views of the PCAOB, USA and IAASB that auditor responsibilities for detection of fraud and going concern determination are under deliberation globally also. Together with the ICAI and MCA, this is an area that we hope to strengthen”, he added.

Pandey also said that NFRA hopes to work with MCA to create enabling frameworks that would help develop a few homegrown audit firms in India on the lines of the Big 4 globally, as desired by Prime Minister Narendra Modi.