The top 100 listed companies in India together have a voluntary disclosure score of 6.3 out of 10, according to the India Disclosure Index compiled by FTI Consulting, a report of voluntary corporate disclosure.
The firms were selected on the basis of market capitalisation and assessed on 12 publicly available information disclosure parameters.
Only nine companies emerged as “corporate disclosure champions”, with voluntary disclosure scores of 9 out of 10, or above.
Only one of the nine corporate disclosure champions scored a perfect 10 out of 10. The report also highlighted some of the corporate governance practices.
About 19 per cent of the top 100 listed firms do not have women serving as independent directors on their boards. The report said independent directors make up at least half of the boards for 82 per cent of the top 100 listed companies.
However, only 16 per cent of companies provide specific information about their directors’ specialist expertise.
The report said telecom and tech companies have the highest average board quality score of 2.7 out of 4, followed by financials, and consumer goods and services at 2.4 out of 4. Natural resources/energy and auto/transport scored the lowest, with average board quality scores of 1.7 out of 4 and 1.8 out of 4, respectively.
“Greater transparency and better corporate governance can set Indian companies apart from emerging-market peers, which is imperative when companies are competing for global investments and capital,” said Amrit Singh Deo, Managing Director (Strategic Communications), FTI Consulting.