The Telegraph
Since 1st March, 1999
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Icra to rate providers of healthcare

New Delhi, Oct. 8: Icra chief P. K. Chowdhury has said that though there are differences between corporate governance and financial parameter ratings there will be a convergence between the two in the medium term.

Chowdhury says the firm will also start grading India’s healthcare providers for which it has initiated a pilot project with Vellore Medical Institute.

The key parameters for corporate governance rating (CGR) will be the shareholding pattern of the company along with the governance structure and the management process practised at the firm.

The CGR exercise will involve going through corporate documents like board notes, agenda papers, minutes of meetings, annual reports and statutory returns submitted to the Registrar of companies, the stock exchanges and the Securities and Exchange Board of India (Sebi).

Chowdhury said the parameters will prevent fly-by-night operators from duping investors and keep close tabs on the company’s track record.

A recent world-wide study has indicated 80 per cent of the investors would be willing to pay more for the shares of a well-organised company and they feel that board practices are as important as financial parameters.

Dipankar Gupta, head business ethics and integrity practices, also said that non-financial disclosures look into the laws regarding environment and whether working conditions are upheld or not.

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