Corporate Governance

Bharat Forge believes that transparent accounting policies, appropriate disclosure norms, best-in-class board practices and consistently high standards of corporate conduct towards its stakeholders are essential for sustained corporate growth.

In India, Confederation of Indian Industry (CII) pioneered the corporate governance initiative through its publication, Desirable Corporate Governance: A Code in April 1998. Subsequently, the Securities and Exchange Board of India (SEBI) constituted a committee to prescribe a code for corporate governance for listed companies.

The SEBI code is incorporated in the Listing Agreement of stock exchanges, including Pune, Mumbai and National stock exchanges, with whom Bharat Forge’s equity shares are listed. Certain provisions in the Companies Act, 1956, also deal with corporate governance. This chapter of the Annual Report, plus the information given under ‘Management Discussion and Analysis’ and ‘Shareholder Information’ constitutes.

Links given below constitute the compliance report of the Company on corporate governance for the year 2005-06 :