MUMBAI, India, Nov. 19, 2018 (GLOBE NEWSWIRE) -- FTI Consulting, Inc. (NYSE: FCN) today announced the launch of its
India Disclosure Index 2018, an annual report that tracks corporate disclosure practices
amongst India’s top 100 publicly listed corporations1. The India Disclosure Index 2018 reveals an average
composite Voluntary Disclosure score of 6.3 out of a maximum of 10, an average Board Quality score of 2.1 out of a maximum of 4 and
an average Risk Disclosure score of 3.3 out of a maximum of 5 for all 100 companies.
FTI Consulting reviewed 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 to create the India Disclosure Index. The 12 disclosure 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 parameters are weighted to calculate the Composite Disclosure score for each company and then aggregated for all
100 companies.
India Disclosure Index 2018 Highlights:
- Nine companies are 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.
Board Quality Scores:
- 19% of the top 100 listed companies do not have women serving as independent directors on their Board of Directors.
- 76% of companies have separate roles for Chairman and CEO/Managing Director.
- Independent directors make up at least half of the boards for 82% of the top 100 listed companies.
- Only 16% of companies provide specific information about their directors’ specialist expertise.
- Aggregated by industry, telecom/tech companies have the highest average Board Quality score of 2.7 out of 4, followed by
financials and consumer goods/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.
Risk Disclosure Scores:
- 20% of the top 100 listed Indian companies lack a convenient whistleblowing mechanism (phone number or email) on their
websites or in their annual reports, compared to 29% in 2017 and 37% in 2016. In comparison, 45% of publicly listed companies in
the ASEAN region lack a convenient whistleblowing mechanism on their websites or in their annual reports, according to FTI
Consulting’s ASEAN Disclosure Index 2018, which was released in September.
- 56% of the top 100 listed Indian companies do not provide information regarding cybersecurity or data security risk
mitigation in their annual reports.
- Almost half of the top 100 listed companies (49%) provide sustainability reports without international benchmarks such as
Global Reporting Initiative standards. Only 26% of listed companies in the ASEAN region provide sustainability reports without
international benchmarks, according to FTI Consulting’s ASEAN Disclosure Index 2018.
- Aggregated by industry, telecom/tech companies have the highest average Risk Disclosure score of 4.7 out of 5, followed by
financials and natural resources/energy, both at 3.5 out of 5. Cement/construction and industrial/manufacturing scored the
lowest, with an average Risk Disclosure score of 2.8 out of 5 and 2.9 out of 5, respectively.
Commenting on the India Disclosure Index 2018 findings, Amrit Singh Deo, a Managing Director in the Strategic Communications segment at FTI Consulting, said, “Corporate disclosure quality is a
good proxy for corporate governance in emerging markets. The fourth edition of the India Disclosure Index reflects
regulatory changes and investor expectations on board governance, diversity, cybersecurity and sustainability disclosures, and
boards and management teams should actively engage with investors on these issues. 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.”
About the India Disclosure Index 2018
The India Disclosure Index 2018 is a report of corporate voluntary disclosure by India’s leading companies, by market
capitalisation, as assessed on 12 publicly available information disclosure parameters. Full methodology and ranking of all 100
Indian listed companies with weighted voluntary disclosure scores (split by Performance Quality, Board Quality and Risk Disclosure
Quality scores) can be found here.
About FTI Consulting
FTI Consulting, Inc. is a global business advisory firm dedicated to helping organisations manage change, mitigate risk and resolve
disputes: financial, legal, operational, political & regulatory, reputational and transactional. With more than 4,600 employees
located in 28 countries, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex
business challenges and make the most of opportunities. The Company generated $1.81 billion in revenues during fiscal year 2017.
For more information, visit www.fticonsulting.com and connect with us on Twitter (@FTIConsulting), Facebook and LinkedIn.
1 Constituents of the S&P BSE 100 Index
FTI Consulting, Inc. The Executive Centre The Capital, 701, Plot No C-70 G Block, Bandra Kurla Complex Bandra (East), Mumbai 400051, India +91.22.4050.9202 Investor Contact: Mollie Hawkes +1.617.747.1791 mollie.hawkes@fticonsulting.com Media Contact: Rethu Menon +91.22.4050.9203 rethu.menon@fticonsulting.com
