Trust and Resilience are sine qua non for existence and development of businesses- Chairperson, NFRA address at CII National Conference on Financial Governance
FinTech BizNews Service
Mumbai, March 17, 2026: Shri Nitin Gupta, Chairperson, National Financial Reporting Authority (NFRA), while delivering the Keynote Address at the National Conference on Financial Governance: Building Trust & Resilience organized by Confederation of Indian Industry (CII) at Mumbai on Tuesday, emphasized that in the current economic and business environment both Trust and Resilience are sine qua non for existence and development of businesses in particular and society in general.
Shri Nitin Gupta stated that despite significant global uncertainties and market volatility, India (Bharat) continues to be a beacon of hope for global economic growth and development. As India aspires to become an economic superpower in the coming decades, well-functioning and efficient financial and capital markets remain central to transparent, fair economies and progressive societies. He noted the strong growth and vibrancy of India’s capital markets and highlighted the country’s position as a major hub for global financial reporting services, IT services, and global audit delivery centres, including GCCs of multinational corporations and large audit firms.
Linking his remarks to the conference theme, he stressed the importance of high-quality corporate governance and financial reporting, supported by a “Five Lines of Defence” framework: management and internal assurance functions (including internal audit and risk management), audit committees and independent directors, standards and external auditors, investors and shareholders, and independent regulators such as NFRA.
Shri Nitin Gupta observed that while various tools can assess financial governance and reporting quality, the ultimate test lies in the “rear-view mirror”, reflected in the number of recent corporate failures, financial restatements, and enforcement actions. He underscored the importance of robust internal controls and risk management systems, particularly for public interest entities handling public funds.
In conclusion, he emphasized the critical responsibility of the finance community in overseeing the use of financial resources entrusted by investors and creditors, and in preventing and detecting fraud. He described finance professionals as the “first line of defence” and urged them to act as an unbreakable shield. He shared on moving ‘Back to Basics’ and paying more attention to the basics of Internal Financial Controls is essential.
He noted that over the past 25 years, IFRS standards have become significantly more comprehensive, requiring expertise in emerging areas such as valuation and risk management. This shift reflects evolving business dynamics and necessitates the inclusion of specialized expertise, both management’s experts and auditors’ experts, within finance teams and audit firms. He concluded that restoring confidence in corporate governance and financial reporting will require collective commitment and resolve from all stakeholders.
Addressing the Conference, Mr Keki Mistry Former Vice Chairman & CEO, HDFC Ltd stated that raising the quality of corporate reporting and governance requires collaboration among all market participants, i.e., policymakers, auditors, issuers, directors, regulators, advisors, and investors. Reporting has evolved beyond financial statements and audit reports to include board reports, corporate governance disclosures, and sustainability reporting. He stated that today, markets value companies that demonstrate sustained value creation, making it essential for CFOs, Boards, and Audit Committees to communicate effectively using both financial and non-financial data. Strong oversight by Those Charged with Governance (TCWG) and Audit Committees is critical to this process. High audit quality builds confidence in financial reporting, while poor audit quality can lead to market instability, reputational damage, and loss of trust in the profession.
Mr N. Venkatram, Chairman, CII National Committee on Financial Reporting and Country Head, CDPQ India highlighted the expanding scope of material financial disclosures, including sustainability-related financing risks within mainstream reporting. On internal controls, he noted that building a robust assurance architecture enables boards to confidently stand behind the accountability of CFOs and auditors, an important advancement for the finance function. Emphasizing the quality of estimates, he urged organizations to take National Financial Reporting Authority inspection findings seriously. He cautioned that financial statements which are technically compliant but economically managed do not reflect true governance, but rather deferred credibility that markets eventually price in. On AI, he observed that it is already embedded in finance functions, including forecasting, credit risk modelling, fraud detection, and reporting workflows.
Ms Shefali Goradia, Chairperson, Deloitte South Asia highlighted a clear shift from compliance-driven reporting to governance-focused practices. Boards and management are increasingly integrating risk oversight with strategic decision-making, while maintaining transparent communication with stakeholders. She also emphasized the importance of leveraging AI tools to transform audit and assurance functions.
Ms Helen Brand, Chief Executive of Association of Chartered Certified Accountants, noted that critical sectors such as energy security, infrastructure, and supply chains require strong financial governance. She highlighted that while AI is enabling new capabilities in predictive analytics, assessment, and reporting, organizations must carefully balance its benefits with the associated risks.
Speakers at the Conference, the financial luminaries, lauded CII for its constant endeavour in providing a platform for deliberations on contemporary issues concerning industry. The daylong Conference deliberated on vital topics including Capital Market Regulations and Market Confidence; Role of Governance in Sustained Value Creation; Role of Audit Committees in Building Trust and Resilience and Role of AI in Governance– Digital Dividend and Digital Risk.
The Conference witnessed participation of 200+ delegates comprising members from the regulators, board members, finance leaders, CXOs, audit professionals, audit committee members, chartered accountants, accounting and public policy professionals, independent directors and general counsels.
