Regulations
Top Indian companies make significant progress on disclosures and compliance in 2015: Report
The second study by FTI Consulting, a global business advisory firm, shows that top 100 listed Indian companies, by market capitalisation, have made significant progress on following mandatory disclosure norms and compliance in 2015. Whilst some might say this has been forced, the improvement has been impressive, it said in its report titled India Disclosure Index 2015.
 
As per the report, during 2015, BSE 200 companies, other than the BSE 100 constituents, taken as an aggregate, lag the aggregate BSE 100 constituents’ mandatory disclosure scores, but beat them (albeit marginally) when it comes to voluntary disclosure. "Only time will tell, if this is a more ambitious or enlightened perspective for this group, as they seek to attract investment and grow to replace constituents in the top 100 list," it added.
 
 
Overall, as a group, the BSE 100 index constituents, have an average composite disclosure score of 7.4 out of 10, a significant improvement compared to 6.7 out of 10 from 2015 primarily on the account of improved mandatory disclosure scores. 
 
As per the report, almost 45% have composite disclosure scores of eight or more which is up from 26% in 2015 - and includes eight companies, Axis Bank, Bharti Airtel, Federal Bank, IndusInd Bank, Infosys, Shriram Transport, Sun Pharma and  Vedanta, which stand out for achieving the maximum score of 10.
 
Only six companies, compared to 25 in 2015, of the BSE 100 index constituent companies have low composite disclosure scores of five or less, it added.
 
FTI said, the next BSE 100 or the BSE 200 without the BSE 100 companies does slightly better than the BSE 100 with an average composite disclosure score of 7.4. Six companies in this group Biocon, Cholamandalam, Jubilant Lifesciences, L&T Finance, SKS Microfinance and Welspun have a score of 10 out of 10.
 
Talking about mandatory disclosure scores, the report says, BSE 100 index constituents have an average score of 3.7 out of 4, much higher from the average of 3.1 out of 4 in 2015. 
 
"71 of the 100 companies in the BSE 100 Index had a full score for mandatory disclosure (up from 41 in 2015), with the remaining 29 falling short on either one or some of the mandatory disclosure parameters. This is a significant improvement within the last year. However, there are still close to a third who fall short of what we have considered to be full mandatory disclosure. Only three of all BSE 100 index constituent companies have mandatory disclosure scores less than 2.5 (compared to almost half in 2015), reflecting the leap by BSE 100 companies in mandatory disclosure compliance," FTI Consultancy says.
 
According to the report, a significant reason for improvement has been the improved individual scores regarding ‘analyst engagement information and earning call transcripts’ with 73% providing this information, which is up from 49% in 2015. A little over a quarter of the companies (27%) did not provide this information. Some of them interpreted the revised regulations to disclose details of the analysts they met but not the information they shared or exchanged, in violation of the spirit of fair disclosure and transparency that was the context of the revised regulations, it said.
 
The mandatory disclosure score for the next BSE 100 or BSE 200 without the BSE 100 companies was 3.4 out of 4, with the weakest performance on analyst engagement information and earning call transcripts. Only 49% of these companies disclosed this information on their corporate websites, the report added.
 
In voluntary disclosure scores, the BSE 100 index constituents have an average score of 3.7 out of 6, up from 3.5 out of 6 in 2015, when reviewed against seven voluntary disclosure parameters. Only eight of the 100 companies in the BSE 100 Index had a full 6 out of 6 score for voluntary disclosure, reflecting the low priority placed on providing additional information. 
 
Banks account for half of this group with highest voluntary disclosure scores namely, Axis Bank, Federal Bank, IndusInd Bank and Shriram Transport. Infosys, Bharti Airtel, Sun Pharma and Vedanta were the non-bank players in this list of high voluntary disclosure scorers, the report says.
 
The voluntary disclosure score for the next BSE 100 companies is 4 out of 6, with the weakest performance on debt information and business strategy articulation, the same as it was with the BSE 100 companies in 2015.
 
The greatest progress on voluntary disclosure by the BSE 100 constituents has been made on two parameters — better debt related information and strategy articulation. These were areas that were identified as weaknesses in the 2015 report. Both show up as weaknesses for the next 100 companies — indicating perhaps the areas to focus on for these companies in 2016, the report says.
 
FTI says, Indian companies have expended significant resources in reviewing disclosure policies and creating the necessary processes to be aligned to the new regulations. "Clearly, some Indian companies are leading the way — leveraging disclosure as a strategic signal to investors, employees, business partners and the public — that they are well governed and best-in-class corporations. At the same time, there are Indian companies, which have embraced regulatory changes in a strictly legalistic manner — following the letter but not necessarily the spirit of the regulations. Requirements of disclosing information about analyst engagements and presentations made to them have at times been selectively interpreted as information about analyst engagements only without making the information shared with them available to the wider public," it concluded.

User

Men last just 21 seconds - without touching their smartphones
London: If you are waiting for a friend, a colleague or even a doctor’s appointment, how long do you think it takes before you check your phone? Not more than a minute. And if you are a man, it could be even shorter - just 21 seconds, says a study.
 
In the study, participants left in a waiting room on their own for 10 minutes lasted an average of just 44 seconds before touching their smartphones. 
 
Men could not even manage half of this time, waiting an average of only 21 seconds compared to women at 57 seconds. 
 
The study was conducted by researchers from the University of Wurzburg in Germany and Nottingham Trent University in England on behalf of global cybersecurity firm Kaspersky Lab.
 
To delve deeper into our companionship with digital devices, the participants were asked how long they thought it had been before they reached for their phone in the waiting room. 
 
Most said between two and three minutes, highlighting a significant disconnect between perception and actual behaviour. 
 
"The experiment suggests that people are far more attached to these devices than they realise and it has become second nature to turn to our smartphones when left alone with them. We do not just wait anymore,” Jens Binder from the University of Nottingham Trent said in a press release.
 
"The immediacy of information and interactions delivered through our smart devices make them much more of a digital companion and connection to the outside world than a piece of technology,” Binder noted.
 
During the 10-minute waiting session, participants used their smartphone on average for almost half the time.
 
The study also found that the more we use our phones, the more stressed we become.
 
Additional research conducted by the universities suggests that this compulsion to check our phones could be as a result of fear of missing out (FOMO) on something when not online. 
 
In an accompanying survey, participants that used their phones more intensely admitted to a higher level of FOMO.
 
"The more participants use their phone the more they are afraid they’re missing out when they aren’t accessing it,” Astrid Carolus from the University of Wurzburg pointed out.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

User

Cabinet clears norms for largest telecom spectrum auction
New Delhi: India's cabinet on Wednesday cleared the base price for the country's largest spectrum auction to date, expected to fetch around $85 billion at the approved reserve price, address the menace of mobile phone call drops and give a push to 4G data communications.
 
The approval was given at a meeting of the cabinet chaired by Prime Minister Narendra Modi. But a decision on spectrum usage charges, which has evoked strong opinions from stakeholders, has been deferred and the matter referred again to the telecom watchdog.
 
"This will be the largest auction to date," union Finance Minister Arun Jaitley said in a press briefing later. He said since the recommendations on spectrum usage charges from the Attorney General's office and the Telecom Commission came later, it was felt that the matter be referred to the watchdog once again.
 
There was no word on when specifically the auction will be conducted.
 
"The appetite for India's telecom sector is very big," Communications and IT Minister Ravi Shankar Prasad, who also briefed the media, said when asked if such a large auction will evoke the kind of interest which the government is hoping for.
 
More than 2,300 MHz of airwaves will be on the block for telecom operators in seven bands -- 700 MHz, 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz and 2,500 MHz. Based on their pan-India reserve price, the mop-up can be as much as $83 billion against $17-billion the last time.
 
The previous round had seen 470.75 MHz on the block.
 
Officials said norms for the latest round of auctions will allow operators to buy spectrum at par with international holding values and end the spectrum shortage. The availability of such a large quantity of spectrum will give a fillip for Digital India, they added.
 
It is learnt from official sources that the reserve prices of various bands, as approved by the cabinet, remain the same as that recommended by the Telecom Regulatory Authority of India.
 
The telecom watchdog had recommended a pan-India reserve price of Rs 2,873 crore for 1,800 MHz, Rs 3,341 crore for 900 MHz, Rs 5,819 crore for 800 MHz, Rs 3,746 crore for 2,100 MHz, Rs 11,485 crore for 700 MHz, and Rs 817 crore each for 2,300 MHz and 2,500 MHz bands.
 
As regards spectrum usage charge, the recommendation of the regulator was 1 per cent of revenues for 2,500 MHz and 3 per cent for all the other bands. 
 
“We are thankful to the government for making available the huge quantum of spectrum. This is the first time so much of new bands are going for auctions. Earlier, it was mostly renewal," Rajan S. Mathews, Director General, Cellular Operators' Association of India, told IANS.
 
"The industry now holds 2,772 MHz of spectrum and with this auction the government will make more spectrum across all bands,” Mathews added.
 
The issue is regarding pricing of 700 MHz, Mathews said, adding that from the price point of view it is unaffordable to almost all the players. 
 
“We don't see much appetite for that band. Bidding in 1,800 MHz, 2,100 MHz, 2,300 MHz will be exciting, but for 2,500 MHz it will be not so exciting. As both 800 and 900 MHz are non-contiguous in nature, hence it is as it is not very exciting.”
 
In the previous round of auctions, conducted in March, as much as Rs 109,874 crore worth of bids were received from the 115 rounds spread over 19 days. In all 470.75 MHz was put to auction against 390 MHz in November 2012 and 426 MHz in February 2014.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)