CII STARTUP SCORECARD

1.Defined organisation vision and mission

NA

2.Code of conduct, ethics and culture of the organisation developed on the basis of principles of corporate governance*

NA

3.Registration, licenses and approvals taken as per applicable laws and regulations*

NA

4.Composition & structure of Board in compliance with applicable laws*

NA

5.Board members possess diverse and complementary skill sets and experience (in terms of gender, education, area of expertise, experience, technical background, etc.)

NA

6.Board consists of requisite number of executive, non-executive, independent and woman directors

NA

7. Provision for rotation of directors as per applicable law

NA

8. Defined organisation structure with clearly laid out roles, responsibilities and delegation of authority for decision making

NA

9.The values of integrity, transparency, disclosure, accountability, fairness, responsibility, ethical behavior are reflected in the conduct of promoters/ founders and top management*

NA

10.Startup is kept as a separate legal entity with organisation's assets, separate from the founders’ personal assets

NA

11.Regular Board meetings conducted as per applicable laws

NA

12. Proper procedure regarding Board meetings – notice, quorum, minutes, etc. are complied with

NA

13. Comprehensive MIS comprising data from various business functions including finance which can be analyzed and updated dynamically*

NA

14.Board is given access to accurate, relevant and timely information to enable sound decision making.

NA

15.Boardroom culture

i).Right to be heard

NA

ii). Ability to raise right questions

NA

iii).Freedom to disagree

NA

iv).Ability to make informed and well thought out decisions

NA

16.Key officers appointed:

i).Chief Executive Officer (CEO)

NA

ii). Chief Financial Officer (CFO)

NA

iii).Company Secretary (CS)

NA

17.Committees formed:

i).Audit committee

NA

ii).Nomination and remuneration committee

NA

iii.). Investor grievance committee

NA

iv).Cyber security and data protection committee

NA

v).Risk management

NA

vi).Stakeholder relationship committee

NA

vii).CSR committee

NA

18.Compliance with:

i).Applicable laws and regulations*

NA

ii).Statutory filings done on time*

NA

iii).Disclosure requirements by company fulfilled on time

NA

iv).Annual Report is prepared and submitted to the regulator

NA

19.Various Environment, Social, And Governance parameters are well-defined, policies laid out, actions taken and adequately reported to statutory authorities especially on the environmental and social factors:

i).Environment (e.g. pollution, biodiversity impacts, energy consumption, waste management, water usage, carbon emissions, climate change, natural resource use, biodiversity preservation, impact on physical or natural environment)

NA

ii).Social (e.g. health and safety, supply chain, diversity, equity and inclusion, fair labour practices, employee wellbeing, community engagement, impact on surrounding community and workers)

NA

20.Corporate social responsibility norms complied with

NA

21.Policies and procedures formulated and reviewed from time to time for:

i). Accounting & maintenance of proper books of accounts*

NA

ii).Raising finances*

NA

iii).Monitoring the fund utilization*

NA

iv).Realistic valuations by external valuation agency

NA

v).Internal controls

NA

vi).Internal audit

NA

vii).External audit*

NA

viii).Purchase

NA

ix).Sales

NA

x).Production

NA

xi).Marketing

NA

xii).Vendor management

NA

xiii).Media management, especially social media

NA

xiv).Human resources

NA

xv).Executive compensation

NA

xvi).Quality and training

NA

xvii).Compensation management for employees

NA

xviii).Succession planning for key roles

NA

xix).Risk and crisis management and prepare a risk matrix

NA

xx).Business continuity plan

NA

xxi).Data privacy and cyber security

NA

xxii).Fraud prevention and detection

NA

xxiii).Statutory disclosures including transactions with related parties

NA

xxiv).Organisation structure and matrix on delegation of authority

NA

xxv).Loans to directors in accordance with Companies Act, 2013

NA

xxvi). Deposits in accordance with Companies Act, 2013

NA

xxvii).Restructuring

NA

xxviii).Board effectiveness evaluation

NA

xxix).Conflict management*

NA

xxx).Compliance management and statutory filings/ disclosures*

NA

xxxi). Secretarial

NA

xxxii).Legal

NA

xxxiii).Stakeholder management and engagement

NA

xxxiv).Grievance redressal mechanism for various stakeholders

NA

xxxv).Whistleblower mechanism

NA

xxxvi).Prevention of insider trading

NA

22.Applicable aspects covered by Point 21 above are regularly monitored and corrective actions taken in case gaps are found

NA

23.Framework for related party transactions and their disclosure is in place and regularly reviewed*

NA

24.Following potential red flags indicating governance lapses (few indicators below) are identified and corrective measures taken:

i).Composition of Board – lack of independence, tenure, diversity

NA

ii).Auditor quality, compensation and comments

NA

iii.).Inconsistent/ rapid (or smooth) revenue/ profit growth in relation to industry

NA

iv).Erratic stock price movement

NA

v).High employee turnover

NA

vi).Short leadership tenure & how errant leaders are handled

NA

vii).Customer grievances

NA

viii).Suppliers’ grievances

NA

ix).Increasing legal cases

NA

x).Frequency/ adequacy of communications/ disclosures

NA

xi).Skewed compensation

NA

25.Internal audit conducted and results reviewed by audit committee

NA

26.External audit carried out*

NA

27.Proper functioning of various committees is duly monitored

NA

28.Independence of auditors and transparency in their appointment is ensured

NA

29.Provision for rotation of auditors as per applicable law

NA

30.Formal interaction between statutory auditors and Board is ensured

NA

31.Executive sessions with independent directors and management

NA

32.For listed companies, SEBI regulations, specifically obligations under the SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 have been fulfilled

NA

33.Requisite statutory requirements related to prospectus and allotment of securities is followed in case of public offer and private placement

NA

34. Shareholders’ rights e.g. right to vote, participate in general meetings, access relevant corporate records, are ensured

NA

35. There is no differential treatment of shareholders

NA

36.Minority shareholders’ rights are protected and they are not mistreated

NA

37.Information asymmetry between promoters and other stakeholders is prevented

NA

38.Timely response to notices and other communication received from regulatory/ statutory authorities

NA

39.Employee code/ handbook which defines inter alia key roles and performance metrics, employee reward and benefit schemes, zero tolerance policy towards ethics and integrity failures

NA

40. Data of stakeholders’ e.g. customers/ users/ employees, etc. is protected and transparency is maintained regarding data practices

NA

41. Focus on keeping reputation and brand value of organisation intact despite business challenges

NA

42.Tenets of corporate governance are adhered in various aspects of business by the organisation:

i).Timely and relevant disclosures

NA

ii).Transparency

NA

iii.).Accountability

NA

iv).Integrity

NA

v).Ethics and responsibility

NA

vi).Building and maintaining trust of stakeholders

NA

vii).Focus on long-term value creation

NA

viii).Maintain agility and creativity while devising structure and process for governance

NA

ix).Articulating predictability in revenue, growth and business plan to investors

NA

Governance Scorecard for Startups

How to fill:

Scoring Methodology:

Formula for calculating Governance score:

Remarks:

What does your governance percentage score indicate:

More than 50%

More than 75%

More than 90%