The Need for Corporate Governance in MFIS in India: An overview

Abstract

Over several decades of the socialistic favored economy, a large parallel black economy has been developed in India where transactions are carried out in cash and are not recorded in the of account books properly. Though there have been several honorable exceptions, many Indian business groups have succumbed to tempt of black money. The available literature on black money views that it was primarily as a means of cheating the government of its legitimate dues. But to the fact that it is not accounted for in the company's books, which means that it is also cheating the minority shareholders. There is a standard joke among bankers in India that there are many financially sick companies but no financially sick promoters.