Voices of Change 12: CA Saumya Srivastava, Independent Director
Saumya Srivastava is a Senior Partner at Srivastava S & Co. She is also an Independent Director at Mirza International Limited and Strategic Advisor at MSME Business Forum India.
Our team spoke to her recently on corporate governance and independent directorship. Here are the excerpts from the interview:-
- How can independent directors improve corporate governance practices in India? Please share anecdotes/examples if possible
CA Saumya Srivastava: IDs are not concerned with routine or day-to-day activities and management but surely, have access to Quarterly Financial Data and key policy decisions. Therefore, they can contribute to the monitoring of-
(i) Adherence to timelines
(ii) Internal Financial Controls
(iii) Secretarial and Legal Compliances
(iv) Ratio Analysis and Budgetary Controls
(v) Planning and Cost-effectiveness, and last but not the least
(vi) Long-term and Short-term vision of the Management. *
A case example I would like to quote which is my personal favorite is COAL India (2015) where a PSU faced pressure for a high dividend payout but the resistance from IDs citing high dividend payout would be detrimental to the interests of minority shareholders which would be adversely affected. The resistance from Independent Directors against the government’s demand for excessive dividends was significant in demonstrating how independent directors can protect minority shareholders, even in PSUs
Others can be quoted from Infosys (2017) where governance issue related to the severance package of the CFO was taken up by IDs. The involvement of independent directors and their decision to investigate the matter set a precedent for the role of independent directors in tackling governance issues, even if it results in a leadership shake-up.
2) You are a respected figure in Finance & Audit. Please share your contributions as a senior leader.
CA Saumya Srivastava: As a senior leader in finance and audit, my role has focused on creating sustainable growth, supporting diverse entrepreneurship, and enabling smooth business operations. My contributions include:
- Driving Ease of Doing Business: I actively work with cross-functional teams to simplify and streamline business processes, particularly in regulatory compliance, financial reporting, and risk management. This focus on efficiency not only ensures regulatory alignment but also makes it easier for our partners and clients to navigate complex financial and operational landscapes. I prioritize transparency and automation, ensuring that our financial practices support sustainable growth without unnecessary roadblocks.
- Supporting Women Entrepreneurs: One of my passions has been advocating for and funding women-led businesses. I engage in mentorship programs, offering financial advisory support to women entrepreneurs to help them secure funding and scale their businesses. This involves guiding them through financial modeling, strategic planning, and investor readiness, which has led to significant growth in the number of women-led businesses in our portfolio.
- Strategic Scaling Decisions: In terms of strategic growth, I lead initiatives that help companies scale effectively, both operationally and financially. This includes identifying new revenue streams, optimizing cost structures, and fostering partnerships that align with long-term growth goals. My experience in finance and audit has given me a data-driven approach to scaling that emphasizes risk mitigation while focusing on high-impact areas.
- Implementation and Execution Oversight: I try to play an active role in handholding teams during the implementation phase of new projects. This includes close collaboration with execution teams to ensure that strategic plans are effectively brought to life, whether it’s in terms of market entry, operational scale-up, or resource allocation. My involvement helps bridge the gap between strategic intent and on-ground execution, facilitating a smooth, successful rollout.
- Mentorship/ Youth Connect: One of the areas close to my heart is driving & steering the youth for well-informed decisions be it in the way of Startups, Financial Literacy, or transformation from classroom to corporate transition. (Recently being invited by St Joseph University, Bengaluru to initiate an Industry-Academia Alliance)
In summary, my focus is on building systems and support structures that enable ease of doing business, provide targeted support for women entrepreneurs, and drive sustainable growth through strategic decision-making. Through these efforts, I aim to uphold the highest standards of corporate governance and integrity, making a meaningful impact on both our business ecosystem and the communities we serve.
3) How can overall board governance and board leadership be enhanced in the Indian corporate world?
CA Saumya Srivastava: The key features could be
(i) Time management and Planning of all important activities
(ii) Stopping backdating, delays, and last-minute hush-ups
(iii) Periodical change of Duties of all key persons in all the systems to cut down dependence and adopt the maker-checker approach
(iv) Creation of Standard Operating Procedures and Manuel, and strict compliance at each activity level without delegating any discretion or authority to make changes except with the intervention of Top Management
(v) Bringing in the dignity of work for all and regular evaluation and appreciation for good work.
(vi) Bringing more women directors on board (apart from the statutory compliance)
It would be unfair to expect IDs to be connected with the management on real real-time basis but timely and qualitative reporting in a precise manner can certainly create bilateral communication wherever advice on critical or policy matters is concerned. Most importantly adoption of the latest techniques and technologies in all areas of Control and Management. Introduction of the use of Artificial Intelligence and Robotics in Production, Quality Control, Inventory Management, Despatches, and Logistics could help in reducing costs and eliminating chances of errors.
Note — My heartfelt gratitude to Dr Amit Nagpal for steering this Voice of Change drive & spreading the word about how crucial the role of Independent Director can be!!
The same is referred from mythology:
Lord Hanuman was reminded of his powers by Jamvant Ji when he was unsure about crossing the magnificent ocean across him. Jamvant ji reminded me how powerful he is & how capable he is to deal with the situation & is filled with extreme possibilities.
The same can be referred to in the context of how we as Independent Directors need to be reminded of our powers by such small steps!!
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Brief Profile
Saumya Srivastava is a practicing Chartered Accountant with more than a decade of experience in Accounting, Taxation compliance, Project funding & Management consulting. She had a shining corporate career in banking and risk management before switching to practice. She’s an enabler & aims to handhold the business organisations from their mentoring, implementation & execution phases. She’s a second-generation entrepreneur with a professional legacy of more than 35 years.
