National Aluminium Company Limited has released its Annual Secretarial Compliance Report for the fiscal year ended March 31, 2026. The report details the company’s adherence to corporate governance standards, including specific observations regarding board composition. While the company faced challenges in maintaining the required number of independent directors during the period, it continues to engage with the government to ensure full alignment with regulatory mandates and corporate governance requirements.
Overview of Compliance Review
The company has concluded its annual secretarial compliance review for the period ending March 31, 2026. This process involved a thorough examination of internal documents, records, and filings to assess adherence to established corporate governance standards. The review serves as an important measure of transparency and regulatory diligence for the organization during the specified fiscal year.
Board Composition Challenges
A significant portion of the report highlights challenges related to board composition. Specifically, the company did not consistently meet the requirement for a 50% non-executive director ratio and the appointment of the requisite number of independent directors during various intervals throughout the 2025-26 fiscal year. Consequently, this impacted the constitution of key committees, including the Audit Committee, Nomination and Remuneration Committee, and the Stakeholders Relationship Committee.
Management’s Proactive Response
As a Government of India enterprise, the authority to appoint directors, including independent board members, resides solely with the government. The company has clarified that these gaps in composition were outside of its direct control. Management has been in continuous communication with the relevant government authorities to facilitate the necessary appointments. Furthermore, the company has formally submitted detailed representations to the stock exchanges requesting a waiver of fines imposed due to these composition-related discrepancies, emphasizing that it is actively working to ensure full compliance with all corporate governance mandates.
Source: BSE
