In India, 'Corporate Governance' standards for listed companies are stipulated by
Securities and Exchange Board of India ( SEBI) through a special provision- Clause
49 of the Listing Agreement.
As a conscious and vigilant organization, Maruti Suzuki
had initiated good 'Corporate Governance' practices even before Clause 49 became
applicable and these practices form an integral part of the company's governance
culture.
The Company strives to foster a corporate culture in which high standards of ethical
behavior, individual accountability and transparent disclosure are ingrained in
all its business dealings and shared by its Board of Directors, Management and Employees.
The Company has established systems & procedures to ensure that its Board of
Directors is well-informed and well-equipped to fulfill its overall responsibilities
and to provide the management strategic direction it needs to create long-term shareholder
value.
On its Board, the Company has four non-Executive- Independent Directors of high
stature from varied backgrounds, who bring with them rich experience and high ethical
standards.
In recent years, the Company has evolved a Control Self Assessment mechanism to
evaluate the effectiveness of internal controls over financial reporting.
Key internal controls over financial reporting were identified and put to self assessment
by control owners in the form of Self Assessment Questionnaires through a web based
online tool called "Control Managers" .
With the successful implementation of the online Controls Self Assessment framework,
the Company has become one of the few companies in India to have a transparent framework
for evaluating the effectiveness of internal controls over financial reporting.
The initiative further reinforces the commitment of the Company to adopt best corporate
governance practices