KPMG flags 'misrepresentation' in Coforge board evaluation
What's the story
Coforge's recent board evaluation has come under the scanner after KPMG raised concerns of "misrepresentation" and incorrect data representation, as reported by Moneycontrol. The issue was flagged during a governance audit by the internal auditor, who found that former chairman OP Bhatt had omitted a section showing he received the lowest performance rating from fellow directors. The omission was discovered while reviewing documents related to the board evaluation.
Audit details
Audit findings
KPMG's audit involved examining the original evaluation report, board minutes, and recordings of meetings where the findings were presented.
The review revealed that the information presented to the board did not match what was in the original report.
The most significant finding was Bhatt's lowest performance rating from other directors, which wasn't disclosed to the board.
Governance processes
Selective disclosure of evaluation reports
Coforge has disclosed that the evaluation reports were only shared with the chairman of the board and chairman of the nomination and remuneration committee, not other directors.
This selective disclosure was done at the instruction of Bhatt.
The company admitted that the presentation of findings did not include all relevant aspects, including Bhatt's lowest rating.
These revelations played a key role in Bhatt's resignation as chairman on September 8.
Company statement
No impact on Coforge's financials and operations
Coforge has clarified that the board evaluation process is separate from financial reporting and does not pertain to its financial statements, accounting policies, revenue, or profitability.
The company stressed that this issue does not affect its financial or operational performance or business and growth outlook.
The internal audit and governance review are still ongoing as part of the company's commitment to transparency.