Niti Arya, CS, DHFL: Company Secretary should not be limited by dictates of the profession
— By | Apr 24, 2015 12:33 am
Niti Arya, Company Secretary, Dewan Housing Finance Corporation Limited (DHFL) believes, the current business environment requires tackling the intricacies of the law with a fresh approach. Thus the role played by the Company Secretary is critical to the smooth functioning of the corporate entity. Speaking to Dipta Joshi, she shares the strategies of a successful Company Secretary.
Niti Arya believes in the maxim, ‘Don’t try to do different things, do things differently’. As the Company Secretary of housing finance company, Dewan Housing Finance Corporation Limited (DHFL), she believes, a professional can add value to his or her organisation by being the differentiating factor.
“One needs to stretch beyond the boundaries of one’s comfort zone. I have always tried to make a difference in each of the tasks assigned to me and have often found the solutions by thinking out of the box,” says Niti.
Niti chose the Secretarial field because it offered a “respectable position in the organisation”. Formulating company policies within the framework of statutory norms has helped her gain a wider perspective on the business aspects. “Being a Company Secretary (CS) has enabled me to be updated with the developments in the corporate world and exercise managerial judgment in terms of interpretation of statutes,” she adds.
Niti’s foray into the field began 12 years back. Associated with corporate houses like the Moser Bear Group, Onida and the Deutsche Postbank Home Finance Limited, she was involved in handling many verticals. Over the years, she gained exposure in both Secretarial and legal functions besides dealing with national and international teams. She has always endeavoured to contribute to the business by being involved in all its aspects instead of limiting herself to the dictates of her profession.
Niti’s association with DHFL, dates three years back. A listed entity in the housing finance segment, DHFL competes with banks and Non-Banking Finance Companies (NBFC’s) and is a leader in the Lower Middle Income (LMI) segment. Talking about the company’s growth trajectory, Niti says, “In one year alone, we have successfully completed three major projects involving a Qualified Institutional Placement (QIP) and joint ventures in the field of insurance and mutual funds. The experience gained in these past three years has been tremendous. In any other company, it would have taken me another five years to have gained the same experience.”
Niti quite enjoys the heady pace at work even if it means, she has little personal time. “What I lose by way of personal time, is made up through the appreciation shown by the company. For three consecutive years, I was recognised and rewarded by the company,” she reveals.
Niti’s journey as a Company Secretary has been full of surprises given the huge change in the role a CS plays. A Company Secretary’s role has moved much beyond fulfilling the basic statutory requirements for the company.
The responsibility for developing and implementing processes to promote and sustain good corporate governance now falls largely within the remit of the company secretary. Besides, with the recent upheavals in the corporate world having shaken the confidence of shareholders, there is a greater demand on organisations to display corporate credibility and transparency. There is also a need to retain the confidence of various stakeholders. Since, the top management is too busy managing the general working of an organisation, the challenge is shouldered by Company Secretaries.
The paradigm change in the philosophy of the new Companies Act, 2013 versus the old one has also led to a churning in the industry’s working model. The new Act focuses on self-disclosures and self-governance. Any defaults on disclosures now attract higher penalties. While Niti appreciates the new Act for its bold vision of self governance, she is aware that many of the changes ushered face practical difficulties and need to be improved upon.
For instance, according to the new provisions, all companies are mandated to follow the April to March financial year and present their consolidated statements for the same. Consequently, the financial reporting dates of all the subsidiary, associates and joint ventures companies must also be aligned to the April-March format. However Niti feels, following this provision is easier said than done. “While a parent company has unilateral control over its subsidiary, it might not be easy to get an associate company or a joint venture partner (especially a foreign entity) to align to the system unless the parent company has a significant stake in it,” says she.
According to Niti, even the legislation asking unlisted companies (falling under the prescribed criteria) to have at least two of their board members as independent directors is impractical. Given the huge responsibilities independent directors hold, not many individuals are willing to take up the offer. And even when they are, they prefer joining listed companies instead of unlisted companies. Listed companies follow a certain governance standards and have better disclosure norms than unlisted companies.
Niti also wants a change in the provision asking Auditors to report frauds to the Central Government. “The current definition of ‘Fraud’ is too vast and covers even suspected frauds. There should be a provision for the Audit committee or the management to verify the complaint or a fraud before crying wolf,” says she.
The current business environment needs companies to tackle the intricacies of the new Act with a fresh approach. It also means the CS is now accountable both within the organisation as also outside it. Thus his role is critical to the smooth functioning of the corporate entity.
In terms of a career in the CS field, the job profile provides exciting career prospects coupled with innumerable challenging situations. Industry pundits are expecting the demand for skilled Company Secretaries to keep growing. However there are no shortcuts to success, warns Niti. Her mantra for the young ones stepping into the field is simple, “Work hard and give 200 percent to the task at hand. The other things will automatically fall in place.”
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