India Disclosure Index 2018
FTI Consulting has been reviewing corporate disclosure practices, specifically mandatory and voluntary disclosure, in India over the last three years. This year, the India Disclosure Index will focus on non-financial voluntary disclosure, which is in keeping with the direction of disclosure regulations in other jurisdictions, including the 2014 EU Non-Financial Reporting Directive on non-financial disclosure, and is also in line with global institutional investor expectations.
The India Disclosure Index 2018 report reviews non-financial, voluntary disclosures and creates comparable benchmarks, with an eye on anticipated disclosure regulations. It is a non-commercial, public research initiative by FTI Consulting that seeks to quantify and frame the ever-rising standards for voluntary disclosure. The report splits twelve voluntary disclosure parameters into three categories (see Research Methodology on page 8) and sets parameters that reveal non-financial information about performance (Performance Disclosure), board quality (Board Quality) and risk management (Risk Disclosure). The report then assigns weights to create a composite Voluntary Disclosure score, that has been applied to the top 100 listed Indian companies . The report makes comparisons, where appropriate, between the scores for Indian companies and other emerging market peers in the ASEAN region. Information has been drawn from a similar ASEAN Disclosure Index report covering voluntary disclosure practices of 180 ASEAN companies published by FTI Consulting earlier this year.
The top 100 listed Indian companies together score an average of 6.3/10 on Voluntary Disclosure. Split by its constituents, the same group of companies score 2.1/4 for Board Quality and 3.3/5 for Risk Disclosure.