All Rights Reserved Finance News 2020.
Tech firm studying board evaluations says Nifty50 cos complied more with norms since 2015
MUMBAI: Bengaluru-based CimplyFive Corporate Secretarial Services, a company that offers technology-based solutions for companies to comply with the Companies Act released a report on ‘Corporate Board Evaluation Practice, 2020’ on Wednesday. Key findings include increased reporting of business areas that require improvement and the action plan to be followed for the same, by boards of Nifty50 companies.
The report details the board evaluation practices disclosed by Nifty50 companies in their annual reports published this year. This is the company’s second report following a similar study in 2015, when board evaluation practices were mandated in India.
The report said, “Analysing the disclosures made by Nifty50 companies in their 2020 Annual Report, we found that 40 companies had disclosed their Corporate Board Evaluation practices. Of the remaining 10 companies, 7 companies were public sector companies exempt from conducting Corporate Board Evaluation and the balance 3 companies had not published their annual report on the cut-off date for our analysis (August 31, 2020).”
The report added that eleven companies or 27.5 per cent of the companies have identified and reported improvement areas in their business and six companies, constituting 15 per cent of the population had reported an action plan for implementing the improvement.
Eleven companies had also engaged an external consultant and six companies had used a digital tool in their corporate board evaluations, which the technology firm said is reflecting the importance attached to the practice.
Shankar Jaganathan, Founder & Chief Executive of CimplyFive said, “Indian corporates have made significant progress in Corporate Board Evaluation practices…This is in stark contrast to 2015 when not a single company had either reported improvement areas or action plan for implementation.”