Coforge faces governance scrutiny after KPMG flags board evaluation misrepresentation

Coforge is facing scrutiny following a governance audit by KPMG that flagged 'misrepresentation' in the company's board evaluation process. The audit revealed that former chairman OP Bhatt omitted a section of the evaluation report showing he had received the lowest performance rating from fellow directors.

According to the company, the selective disclosure of these findings was done at the instruction of Bhatt. This governance issue led to Bhatt's resignation as chairman on September 8. In response, Coforge has appointed Vivek Sharma, a Non-Executive Independent Director, as interim Chairperson until January 31, 2027.

Coforge clarified that the board evaluation process is entirely separate from its financial reporting, accounting policies, revenue, or profitability. The company stated that the matter does not impact its financial or operational performance or its business and growth outlook. Following the news, Coforge shares saw a decline of approximately 2%.

Despite the leadership transition, the company noted that its board continues to work closely, with recent strategic decisions including the acquisition of Encora and the divestment of the AdvantageGo business being approved unanimously.