Corporate Governance

The Companies Act 2013 and Rules made thereunder contain essential features of corporate governance which are to be compulsorily adopted by companies/specified classes of companies. Besides, stricter norms for corporate governance are also prescribed by SEBI for the listed companies by way of the listing agreement. The policy document prepared by the Committee was examined in the Ministry and it was noted that almost all the policy elements considered by the Committee on Corporate Governance (Adi Godrej Committee) stand incorporated in the Companies Act, 2013 which was enacted a little after the submission of the report of the Committee

Government has prescribed all listed companies and their subsidiaries; or companies having paid up capital of ₹ 5 crore or higher; or companies having turnover of more than ₹ 100 crore to file their financial statements using extensible Business Reporting Language (XBRL). About 39000 companies are covered under this criteria of which around 33000 companies have filed their financial statements in XBRL format for the financial year 2012-13.

This was stated by Smt. Nirmala Sitharaman, MoS in the Ministry of Finance in written reply to a question in the Lok Sabha today.