India Inc against mandatory declaration of quarterly resultsMarch 18th, 2009 - 9:07 pm ICT by IANS
New Delhi, March 18 (IANS) A majority of Indian firms are against the mandatory declaration of quarterly corporate results and feel the exercise puts their human resource under great pressure, an industry lobby survey said here Wednesday.
According to the survey, by the Associated Chambers of Commerce and Industry (Assocham): “Ninety-five percent of CEOs and managing directors have raised their voice against mandatory declaration of quarterly corporate results.”
The corporate honchos said the preparation of results “is a great drain on their human resource and prevents corporate innovations and therefore should be scrapped for good.”
Releasing the survey, Assocham secretary general D.S. Rawat said the Securities Exchange Board of India (SEBI) should make changes in its directions in consultation with the Company Law Board that will require corporates make their performance public only twice a year.
The growth of the companies is restricted as corporate brains do not find adequate time to explore and think differently as they are fully occupied with the preparation of results at the end of every quarter, the report added.
About 80 percent of the company heads feel that the private and public sector firms should have come together when the quarterly result declaration was made mandatory by the SEBI two years ago.
HOwever, about 5 percent of CEOs and MDs said they will follow the government directions.
“We simply follow what the government dictates to us and our corporate performance has no adverse impact of the mandatory requirement of the SEBI for making their corporate performance public,” the report said.
The survey was carried out among 400 CEOs and MDs of large and medium companies.
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