- KPMG audit shows former Coforge Chairman Bhatt's performance scores were withheld from the board: Sources
- Bhatt resigned abruptly on Sept 8, months before his tenure was due to end in April 2027.
- Board was unaware of full audit details, only partial findings were previously shared
A KPMG internal audit at Coforge has uncovered the misrepresentation and omission of former Chairman O.P. Bhatt's performance scores from the board, casting a shadow over his abrupt resignation earlier this week.
The review, mandated under SEBI's Listing Obligations and Disclosure Requirements (LODR), found that Bhatt's evaluation scores were sent to D.K. Singh, Chairman of the Nomination and Remuneration Committee (NRC), but were never shared with the full board. Coforge is yet to hear back from Singh on why the scores were withheld, according to persons privy to the matter.
According to persons privy to the matter, the board was "gobsmacked" by the revelation. Directors had previously been shown only incomplete observations rather than the full KPMG report, which sources describe as "stark."
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
The governance red flag follows Bhatt's unexpected resignation on Sept. 8, well before his tenure was set to end in April 2027. The board did not ask him to step down, according to sources but he resigned soon after being asked to explain the discrepancy.
ALSO READ: Coforge Share Price Slumps 8% After Chairman OP Bhatt Resigns Post Internal Audit Review
In a late-night exchange filing at 1:19 a.m. on Sept. 9, Coforge maintained there were no other material reasons for his departure. In his resignation email, Bhatt, who previously served as SBI Chairman and sits on the boards of TCS, ONGC, and Wockhardt, emphasised his track record of acting in good faith. He noted he had always sought to discharge his duties "independently, objectively, and in the best interests of the company."
Moving to stabilise leadership, the board has appointed Independent Director Vivek Sharma as Interim Chairperson until Jan. 31, 2027. Sharma is tasked with identifying a permanent successor within the next four months.
Despite the boardroom turbulence, Coforge attempted to project operational stability in a subsequent Sept. 10 filing. The company stated that the board continues to operate with unanimous approval on key business strategies, enabling swift execution on major moves. These include the Encora acquisition, the Sabre contract execution, and strategic exits from the Advantage Go business, the data centre space, and loss-making Indian government contracts.
ALSO READ: Coforge Chairman's Resignation Not A Red Flag, Says CLSA; Retains Bullish Stance — Check Target Price
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
