Examining the Corporate Governance

Practices of the
State Level Enterprises of Odisha

DV Ramana
 Motivation
• Personal involvement with the SLPEs
• Preparing the corporate governance manual
• Member of the Task force for evaluating the SLPEs of
Odisha
• Member of the Board as an Independent Director of
several SLPs of Odisha
• Consultant of SLPEs
• Own doctoral study three decades back
• Lack of proper information for research
– https://pe.odisha.gov.in/Home/Public_Enterprise
 Corporate Governance in SLPEs
• Companies
– Where the State Government owns equity more
that 50% in the total shareholding of the company.
– Statutory corporations established under the Act
of State Legislature.
– Subsidiary companies of these government
companies (i, & ii above)
 Corporate Governance in SLPEs
• Despite the strong recommendations of
finance commissions over the years, very few
states took steps towards improving the
governance of these enterprises.
 Corporate Governance in SLPEs
• Orissa is one of few states which has
developed and implemented the Corporate
Governance Manual (CGM).
• The CGM was developed by the Administrative
Staff College of India (ASCI)
• As a part of Orissa Public Enterprise Reform
Programme using the “Guidelines on Corporate
Governance for Central Public Sector Enterprises”.
 Issues for research / study
• Compare the current governance practices of
SLPEs with the Guidelines on Corporate
Governance for CPSEs issued by the
Department of Public Enterprises, GoI/SEBI,
Corporate Governance Manual issued by some
state governments
 Issues for research / study
• Examining the performance of the SLPE using
the composite performance score determined
as per the corporate governance manual.
– CPS uses both financial and non-financial
measures
– Performance Vs Commitment
 Issues for research / study

• Evaluation against various corporate

governance criteria. The criteria are grouped
into various categories as below:
Issues for research / study
 Expected output
• Odisha Board Report
– A comprehensive report on the status of the performance
of Boards of Odisha SLPE
• This may become an annual output
• Governance Dash Board
– Various governance indicators
– Information about the independent directors
– Composite performance score
• National lever Seminar/Conference
 Methodology and Coverage
• All state level enterprises of Odisha
• Analysis of secondary data
• Interviews with relevant executives and
researchers
• Case studies
• Visual analytics using the Google data studio
• Panel data analysis for examining the
performance and governance
Thank you