India Inc's corporate governance improves, first time in 9 years IiAS' scorecard has no company listed in the bottom tier

Seven companies emerged as leaders in various categories, in the IiAS report.

In the first time in nine years, no company has been listed in the lowest-category for corporate governance, as measured by the proxy advisory Institutional Investor Advisory Services (IiAS).

“This is the first time in nine years that there are no companies in the BASIC category (score of less than 50). This is reflective of the more well-rounded performance of corporate India on the governance framework”, said Hetal Dalal, President and COO, IiAS.

IiAS released the ninth edition of its assessment of the BSE 100 index constituents on the Indian Corporate Governance Scorecard (scorecard) on April 11 and the theme for this year was "Committing to Stakeholders".  In a press statement, IiAS stated, "Governance has steadily deepened in scope over this time, and in its latest edition, the scorecard reflects this natural progression."

Axis Bank Limited, Cipla Limited, Dr Reddy’s Laboratories Limited, ICICI Lombard General Insurance Company Limited, Infosys Limited, Mahindra and Mahindra Limited and Marico Limited have emerged as leaders in various categories, scoring more than 75 or above.

Several companies have maintained or even improved their performance on the scorecard. While the bar has been raised, the median score remained GOOD at 61. The highest score stood at 82, and the lowest rose to 50, marking the first time no company of the BSE 100 featured in the Basic (lowest) category.

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Asian Paints Limited, Bharti Airtel Limited, HCL Technologies Limited, HDFC Bank Limited, HDFC Life Insurance Company Limited, Kotak Mahindra Bank Limited, Larsen and Toubro Limited, Max Healthcare Institute Limited, Persistent Systems Limited, Tata Consumer Products Limited, Tata Motors Limited and Wipro Limited were recognized as Next Leaders, scoring between 70 and 74.

“India is now moving towards a more balanced approach to corporate citizenship. While the focus on corporate governance continues, there is now a more concerted effort at building sustainability into business operations.” said Amit Tandon, Managing Director, IiAS.