106 CPSEs fail to submit corporate governance report in time: Government

EW DELHI: As many as 106 Central Public Sector Enterprises (CPSEs) did not submit self-evaluation reports on their compliance with corporate governance norms for FY'11 till the cutoff date.

"Of the 248 CPSEs, self-evaluation reports (SERs) in respect of 106 PSUs on their compliance with guidelines on corporate governance for 2010-11 have not been received till cutoff date of September 30, 2012," Minister of Heavy Industries and Public Enterprises Praful Patel said in a written reply to Lok Sabha.

Higher standards of corporate governance are an inherent objective of disinvestment and lower standards of corporate governance may impact valuation of a company and its ability to raise resources from the market, he added.

The government had issued guidelines on corporate governance which are to be mandatorily followed by all CPSEs.

Also, Patel said, corporate governance has been included as one of the mandatory parameters in the Memorandum of Understanding (MoU) signed by the CPSEs for 2012-13.

If SER of a CPSE is not received by the cutoff date, the concerned CPSE would be graded as 'Poor' in terms of its compliance with the guidelines, he added.