Case Study on Larsen and Toubro and GMR Infra ltd and their Corporate Governance disclosures based on Narayan Murthy Corporate Governance Report

This case study aims at studying the recommendations on Clause 49 of Corporate Governance report by Narayan Murthy Committee report released in the year 2003. All the issues brought up by the committee have been studied in detail and a comparative analysis has been done on how closely two leading companies in the infrastructure sector-Larsen & Toubro and GMR Infra, adhere to the suggestions and the recommendations in the Narayan Murthy report. Annual reports and corporate governance reports, for the financial year 2015–16, of both the companies are read through thoroughly. Major issues raised in the committee's report are extracted and both the companies are put through an acid test to check how well the recommendations are followed by them. The results suggest that L&T is more compliant and transparent, however GMR Infra provides a more concise and reader-friendly corporate governance report in comparison to L&T. Most of the disclosures have been clearly stated in the reports. Any deviation in the normal course of work or transactions that are not on an arm's length are referred to in notes to the financial statements. Whistle blower policy and code of conduct manual for both the organizations are in place. The study has been enriched with suggestions and comments on the transparency of the annual report and corporate governance report (2015–16) released by the companies.