According to the chief regulatory officer of the BSE, firms should be evaluated using more than just their financial performance

 According to the chief regulatory officer of the BSE, firms should be evaluated using more than just their financial performance

According to the chief regulatory officer of the BSE, firms should be evaluated using more than just their financial performance

Companies now feel compelled to continuously exhibit good performance because metrics are so important. Kamala Kanthraj, however, says it's okay to periodically fall short.

According to Kamala K, businesses shouldn't worry too much about the value of their stock.

"India is expanding, so businesses should not only evaluate their performance in terms of numbers; instead, they should prioritize their long-term values," said Kamla Kantharaj, the chief regulatory officer of the Bombay Stock Exchange. "A shift in company measurement is necessary if we are going to follow that path," she said during the third Women Directors Conclave at BSE, which was arranged by mentor MyBoard.

Everyone concentrates on a company's financial success while discussing its performance, according to Kantharaj. A good or large corporation, he remarked, looks at more than simply its bottom line. The speaker said that in the past, a company's greatness was determined by combining both financial and non-financial indicators. However, due to the pressure on corporations to publish quarterly results, a greater focus is now placed on financial success.

Nowadays, businesses are compelled to demonstrate strong performance as the emphasis has shifted to statistics. However, it's OK to sometimes do poorly," Kantharaj said.

Additionally, he said that businesses shouldn't worry too much about their share price. "If the government and the company's performance is good, shareholders know how to reward the company," Kantharaj said.

They claim that the firm has grown by x percent over the previous 35 quarters, yet all businesses are subject to constraints. However, I don't believe that to be true. Businesses should promote openness in order to make investors accountable and recognize the company's efforts, the speaker said.

Kantharaj also said that the board need to identify the issue before attempting to resolve it. "If they can adopt the right approach to problem-solving, boards can do very good work and contribute to the sustainability of the organization," the speaker said.