Mumbai, 26 November 2018: Vedanta Ltd scores 9.2/10 on Voluntary Disclosure in the ‘India Disclosure Index 2018’ compiled by FTI Consulting and has been termed as a Disclosure Champion among top companies across sectors in the country. The top Indian companies together scored an average of 6.3/10 on Voluntary Disclosure.
Vedanta topped ranks on Risk disclosure with a maximum score of 5/5 and ranked joint second on Voluntary disclosure and Board quality. Only Nine companies were termed Disclosure Champions that have a Voluntary Disclosure score of more than 9/10, Vedanta being the only Natural Resource Company to feature among these nine firms.
FTI Consulting announced the launch of its India Disclosure Index 2018, an annual report that tracks corporate disclosure practices amongst India’s top 100 publicly listed corporations. The firms were selected on the basis of market capitalization and assessed on 12 publicly available information disclosure parameters. The parameters are split and weighted in three groups, to indicate performance disclosure (two parameters), board quality (five parameters) and quality of risk disclosures (five parameters).
The company prides itself in conducting its business at the highest level and strives to set benchmarks in corporate governance and transparency of operations. 56% of Vedanta’s Board is Independent, 22% of the Board of Directors are women, a leading external agency conducts the Board Evaluation of the company, Vedanta is one of the only companies in the country to publish a Tax Transparency Report and the company also publishes their Sustainability Report annually as per GRI-4 guidelines. These are some of the high standards adopted by the company which contributed to the high scores at the index.
The India Disclosure Index 2018 report reviews non-financial, voluntary disclosures and creates comparable benchmarks, with an eye on anticipated disclosure regulations. The report makes comparisons, where appropriate, between the scores for Indian companies and other emerging market peers in the ASEAN region.
Communication and disclosure have become very key as the Companies Act of 2013, has made the two requirements a board oversight function. Therefore the ‘India Disclosure Index 2018’ is a handy index that evaluates publicly available information in annual reports and corporate websites by the top 100 listed Indian companies to create a weighted, composite Voluntary Disclosure scoring system with 12 disclosure parameters and applied it to the S&P BSE 100 Index.