- There could be a shortfall in the annual reports of the top companies of the country?
- you say it can’t happen
- But it is true that a lot of shortcomings have emerged in the annual report of about 250 top companies of Nifty.
- This has been disclosed by former SEBI chairman M. Damodaran.
There may be a decrease in the Annual Reports of the top companies of the country? You will say that this cannot happen. But it is true that a lot of shortcomings have emerged in the annual report of about 250 top companies of Nifty. This disclosure SEBI (SEBI) former chairman M. Damodaran. He says that these reports need improvement.
missing important information
Damodaran’s corporate governance advisory firm Excellence Enablers (Excellence Enablers) has issued a report. According to this report, the annual report is expected to contain complete information related to all the stakeholders. But many important information has been found missing in the report. In this, while little information has been given regarding the constitution of the board and committees, on the other hand, incomplete information has been given regarding the meeting attendance, composition of committee and changes in the membership of the board and committees during the year. Also, the information about the payment to be given to key employees associated with the management is not clear. Due to this, the reader of the report does not know how the compensation given to them has affected the performance.
are in the report
The annual report also indicates the skillsets of the board members. The indigestible opinion is further strengthened when the board’s evaluation process comes to know about which areas can be improved. The independence of auditors is considered an important aspect of corporate governance. Several things must be ensured in ways to improve this. As per the annual reports, it is not clear how much has been paid to the auditors for the non-auditor’s work. Therefore, it is extremely difficult to estimate how much non-audit work is being done by the auditors.
Give information in bullet points
The auditors’ reports relating to company secretaries are also so clean that it shows that there is not the slightest error in the way of doing business of companies. Everything is going well everywhere. Excellence Enablers has come to the conclusion that it would be better for all concerned to give all the information in the Annual Report where possible, in bullet points rather than in detail. This will make it easier for people to understand.
No clarity on the category of directors
Damodaran has said that there is a need for clarity on the category of different directors. It has promoters, nominees and non-independent directors. Also, information related to the presence of board meetings and committee meetings should be presented according to the reader. In this, whenever the date of appointment of directors in the middle of the year, the date of completion of appointment should be given. In this report, it has been said that information about audit fees and non-audit functions should also be given. Along with this, information about the salary and performance of key officers should also be given. This is not clear in the companies’ annual reports.
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