Kumud Das Mumbai

Commentingon the resignation by O P Bhatt, the former Chairman of State Bank of India, as Non-Executive Independent Director and Chairman of the Board of the IT services company Coforge in the wake of concerns raised by an internal audit over the company’s recent board evaluation process, experts say that ‘Disclosures and compliances are non-negotiable.’

Talking to Bizz Buzz, MV Hariharan, former treasury head, State Bank of India, says, “Disclosures and compliances are non-negotiable. Period. The avoidable publicity is more...whenever it involves high profile people..with the scrutiny directly proportional to the status quotients.”

That said, it is hoped that such observances are the norms, rather than any occasional instances of overreach fuelled by self-serving agenda. Then it becomes ludicrously contradictory, he added.

In a recent regulatory filing, Coforge said its internal auditor, as part of the Q2 FY26 internal audit plan, reviewed the processes followed for the Board Evaluation Exercise and the resulting Board Evaluation Report (BER).

Coforge said its internal auditor, as part of the Q2 FY26 internal audit plan, reviewed the processes followed for the Board Evaluation Exercise and the resulting Board Evaluation Report (BER). The exercise was conducted under Bhatt’s guidance.

The audit identified gaps in the process and disclosure of information related to the board evaluation, including information concerning the performance evaluation of the chairman.

Coforge later clarified that the matters disclosed earlier relate solely to the Board Evaluation Exercise conducted in March/April 2026.

The issues do not relate to the company’s financial statements, financial reporting or any financial matters, it said.

The company said the matter has no bearing on its operations, business performance or near-, medium- or long-term guidance.

Clarification removes concerns that the earlier board-related issue had implications for Coforge’s financial reporting, operating performance or guidance, it added.

Meanwhile, the Coforge shares were down by 7 per cent on the day.

Bhatt was appointed chairman of the company’s board in 2024, with his term originally due to end in April 2027. The company has appointed Vivek Sharma, a non-executive independent director, as interim chair until 31 January 2027.