Performance

Rating

Surpasses Expectations

3

Meets Expectations

2

Below Expectations

1

S. No

Particulars

Ratings

Remarks

1.

a. Structure of the Board:

i. Competency of directors:

Whether Board as a whole has directors with a proper mix  of competencies to conduct its affairs effectively.

ii. Experience of directors:

Whether Board as a whole has directors with enough     experience to conduct its affairs effectively.

iii. Mix of qualifications:

Whether Board as a whole has directors with a proper mix  of qualifications to conduct its affairs effectively.

iv. Diversity in Board under various parameters: Gender/background/ competence/experience, etc. – Whether there is sufficient diversity in  the Board on  the aforesaid parameters.

v. Appointment to the Board:

Whether the process of appointment to the Board of directors is clear and transparent and includes provisions to consider diversity of thought, experience, knowledge, perspective and gender in the Board of directors.

b. Meetings of the Board

i. Regularity of meetings:

Whether meetings are being held on a regular basis

ii.  Frequency

1.  Whether the Board meets frequently

2.   Whether the frequency of such meetings is enough for the Board to undertake its duties properly

iii. Logistics

Whether the logistics for the meeting is being handled  properly- venue, format, timing, etc.

iv. Agenda

1.    Whether the agenda is circulated well before the meeting

2.    Whether the agenda has all relevant information to take decision on the matter

3.    Whether the agenda is up to date, regularly reviewed and involves major substantial decisions

4.    Whether the quality of agenda and Board papers is up to the mark (explains issues properly, not overly  lengthy, etc.)

5.    Whether outstanding items of previous meetings are followed-up and taken up in subsequent agendas

6.    Whether the time allotted for the every item (especially substantive items) in the agenda of the meeting is sufficient for adequate discussions on the subject

7.    Whether the Board is able to finish discussion and decision on all agenda items in the meetings

8.    Whether adequate and timely inputs are taken from the Board members prior to setting of the Agenda for the meeting

9.    Whether the agenda includes adequate information on

Committee’s activities

v.  Discussions and dissent:

1. Whether the Board discusses every issue comprehensively and depending on the importance of the subject

2. Whether the environment of the meeting induces free- flowing free flowing discussions, healthy debate and contribution by everyone without any fear or favour

3. Whether the discussions generally add value to the decision making

4. Whether the Board tends towards groupthink and whether critical and dissenting suggestions are welcomed

5. Whether all members actively participate in the discussions

6. Whether overall, the Board functions constructively as a team

vi.  Recording of minutes:

1.    Whether the minutes are being recorded properly- clearly, completely, accurately and consistently.

2.    Whether the minutes are approved properly in accordance with set procedures.

3.    Whether the minutes are timely circulated to all the  Board members

4.    Whether dissenting views are recorded in the minutes

vii. Dissemination of information:

1.  Whether all the information pertaining to the meeting are disseminated to the members timely, frequently, accurately, regularly

2.     Whether Board is adequately informed of material  matters in between meetings

c. Functions of the Board

i. Role and responsibilities of the Board:

Whether the same are clearly documented

ii.  Strategy and performance evaluation:

1. Whether significant time of the Board is being devoted to management of current and potential strategic issues

2. Whether various scenario planning is used to evaluate strategic risks

3. Whether the Board overall reviews and guides corporate strategy, major plans of action, risk policy, annual budgets and business plans, sets performance objectives, monitored implementation and corporate performance, and oversees

4. major capital expenditures, acquisitions and divestments.

iii.  Governance and compliance

1. Whether adequate time of the Board is being devoted to analyse and examine governance and compliance issues

2.  Whether the Board monitors the effectiveness of its governance practices and makes changes as needed

3.  Whether the Board ensures the integrity of the entity’s accounting and financial reporting systems, including the independent audit, and that appropriate systems of control are in place, in particular, systems for risk management, financial and operational control, and compliance with the law and relevant standards.

4. Whether the Board oversees the process of disclosure and communications.

5.  Whether the Board evaluates and analyses the compliance certificate from the auditors / practicing company secretaries regarding compliance of conditions of corporate governance.

iv.  Evaluation of Risks:

1.  Whether Board undertakes a review of the high risk issues

impacting the organization regularly

2. In assessment of risks, whether it is ensured that, while rightly encouraging positive thinking, these do not result in over-optimism that either leads to significant risks not being recognised or exposes the entity to excessive risk.

v. Grievance Redressal for Investors:

Whether the Board regularly reviews the grievance redressal  mechanism of investors, details of grievances received, disposed of and those remaining unresolved.

vi.  Conflict of interest:

1.    Whether the Board monitors and manages potential conflicts of interest of management, members of the Board of directors and shareholders, including misuse of corporate assets and abuse in related party transactions

2.  Whether a sufficient number of non-executive members of the Board of directors capable of exercising independent judgement are assigned to tasks where there is a potential for conflict of interest

vii.  Stakeholder value and responsibility:

1.   Whether the decision making process of the Board is adequate to assess creation of stakeholder value

2.     Whether the Board has mechanisms in place to communicate and engage with various stakeholders

3.  Whether the Board acts on a fully informed basis, in good faith, with due diligence and care, with high ethical standards and in the best interest of the entity and the stakeholders.

4.  Whether the Board treats shareholders and stakeholders fairly where decisions of the Board of directors may affect different shareholder/ stakeholder groups differently.

5.     Whether the Board regularly reviews the Business Responsibility Reporting / related corporate social responsibility initiatives of the entity and contribution to society, environment etc.

viii. Corporate culture and values:

Whether the Board sets a corporate culture and the values by which executives throughout a group shall behave

ix. Review   of   Board   evaluation:   Whether   the   Board monitors and reviews the Board evaluation framework.

x. Facilitation of Independent Directors:

Whether the Board facilitates the Independent Directors to perform their role effectively as a member of the Board of directors and also a member of a committee of Board of directors and any criticism by such directors is taken constructively.

d. Board and management

i.    Evaluation of performance of the management and feedback:

1.  Whether the Board evaluates and monitors management, especially the CEO regularly and fairly and provides constructive feedback and strategic guidance

2.  Whether the measures used are broad enough to monitor  performance of the management

3.  Whether the management’s performance is benchmarked

against industry peers

4.  Whether remuneration of the management is in line with its performance and with industry peers

5.  Whether remuneration of the Board and the management is aligned with the longer term interests of the entity and its shareholders.

6.  Whether the Board selects, compensates, monitors and, when necessary, replaces key managerial personnel based   on such evaluation.

7.    Whether the Board ‘steps back’ to assist executive management by challenging the assumptions underlying strategy, strategic initiatives (such as acquisitions), risk appetite, exposures and the key areas of the entity’s focus.

ii. Independence of the management from the Board:

Whether the level of independence of the management          from the Board is adequate

iii. Access of the management to the Board and Board  access to the management: Whether the Board and the management are able to actively access each other and exchange information

iv. Secretarial support: Whether adequate secretarial and logistical support is available for conducting Board meetings

v. Fund availability: Whether sufficient funds are made     available to the Board for conducting its meeting effectively, seeking expert advice E.g. Legal, accounting, etc.

vi. Succession plan: Whether an appropriate and adequate     succession plan is in place and is being reviewed and overseen regularly by the Board

e. Professional development

i.    Whether   adequate   induction  and   professional development programmes are made available to new and

old directors

ii. Whether continuing directors training is provided to  ensure that the members of Board of directors are kept up to date

S.No

Particulars

Rating

Remarks

1.

Mandate and composition: Whether the mandate, composition and working procedures of committees of the Board of directors is clearly defined and disclosed.

2.

Effectiveness of    the   Committee:  Whether   the Committee has fulfilled its functions as assigned by the Board and laws as may be applicable

3.

Structure of the Committee and meetings:

      i.      Whether the Committees have been structure properly and regular meetings are being held

    ii.       In terms of discussions, agenda, etc. of the meetings, similar criteria may be laid down as specified above for the entire Board

4.

Independence of   the   Committee   from   the   Board: Whether adequate independence of the Committee is  ensured from the Board

5.

Contribution to decisions of the Board: Whether the Committee’s recommendations contribute effectively to decisions of the Board.

S.

No.

Assessment Criteria

Rating

Remarks/ Comments

1.

General

a.  Fulfillment of functions: Whether the person understands and fulfills the functions to him/her as assigned by the Board and the law (E.g. Law imposes certain obligations on Independent Directors)

b.  Ability to function as a team: Whether the person is able to function as an effective team- member

c.  Initiative: Whether the person actively takes initiative with respect to various areas

d.   Availability and attendance: Whether the person is available for meetings of the Board and attends the meeting regularly and timely, without delay.

e.  Commitment: Whether the person is adequately committed to the Board and the entity

f.   Contribution: Whether the person contributed effectively to the entity and in the Board meetings

g.     Integrity: Whether the person demonstrates highest level of integrity (including conflict of interest disclosures, maintenance of confidentiality, etc.)

2.

Additional criteria for Independent director

a.  Independence: Whether person is independent from the entity and the other directors and there if no conflict of interest

b.   Independent views and judgement: Whether the person exercises  his/ her own judgement and voices opinion freely

3.

Additional criteria for Managing Director

a.    Effectiveness of leadership and ability to steer the meetings: Whether the Managing Director displays efficient leadership, is open- minded, decisive, courteous, displays professionalism, able to coordinate the discussion, etc. and is overall able to steer the meeting effectively

b.     Impartiality: Whether the Managing Director is impartial in conducting discussions, seeking views and dealing with dissent, etc.

c.     Commitment: Whether the Managing Director is sufficiently committed to the Board and its meetings.

d.    Ability to keep shareholders’ interests in mind: Whether the Managing Director is able to keep shareholders’ interest in mind during discussions and decisions.