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Coforge shares fall 2% amid updates on audit review, broader market fall

Coforge said its internal auditor found that the evaluation findings presented by Bhatt to the Nomination and Remuneration Committee (NRC) and the board did not cover all relevant aspects and findings.

Coforge shares fall 2% amid updates on audit review, broader market fall
The stock opened at Rs 1,800 on Friday against its previous close of Rs 1,843 and hit a low of Rs 1,800, marking a fall of 2.33 per cent.

In particular, Coforge said the Chairman's category had received the lowest rating in the evaluation reports. However, this finding was not disclosed or discussed before the NRC or the board by the NRC Chair and the Chairman of the board.

The company clarified that the board evaluation process is separate from its financial reporting and audit processes. It said the matter does not relate to the company's financial statements, accounting policies, revenue or profitability and has no bearing on its financial or operational performance or its business and growth outlook.

Coforge said, "The inclusion of the evaluation reports in the internal audit was only for reviewing the relevant governance processes. " It added that this should not be interpreted as an audit or review of the company's financial statements or financial reporting.

Bhatt had resigned as Chairman recently following concerns identified in the internal audit review over the handling and presentation of the Board Evaluation Report. Coforge has appointed Vivek Sharma, a Non-Executive Independent Director, as interim Chairperson until January 31, 2027.

The company also said its board has continued to work closely, with business strategies and governance decisions being approved unanimously. It cited decisions including the divestment of the AdvantageGo business, exit from the data-centre business, acquisition of Encora, execution of the Sabre contract and the decision to exit the loss-making India Government business.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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