Home / Business and Economy / Coforge Chairman Bhatt Resigns Amid Audit Concerns
Coforge Chairman Bhatt Resigns Amid Audit Concerns
9 Sep
Summary
- Coforge Chairman O P Bhatt resigned with immediate effect.
- An internal audit revealed gaps in board evaluation disclosure.
- The IT firm's stock saw a sharp 7 percent decline in early trade.
Coforge shares experienced a significant drop of 7 percent in early trading on Wednesday, making them the top midcap loser. This decline followed the immediate resignation of Chairman and independent director O P Bhatt. The exit is linked to concerns raised by an internal audit regarding the company's board evaluation process.
The audit, conducted as part of Coforge's Q2 FY26 plan, reviewed the procedures and outcomes of a recent board evaluation exercise that occurred under Bhatt's guidance. It identified specific gaps in the process and the disclosure of related information. Notably, material information within or related to the Board Evaluation Report (BER) was not fully disclosed to the board when it was presented.
Following these findings, the board sought an explanation from Bhatt. While Bhatt asserted he acted in good faith, he resigned on September 8 before the board concluded its review or made a final decision. He stated that remaining on the board amidst disagreement would hinder its effective functioning. Coforge accepted the resignation, and Bhatt ceased his committee memberships. Vivek Sharma has been appointed interim Chairperson until January 31, 2027.
