In what way does Rule 8(4) of the Companies (Accounts) Rules, 2014 regulate the preparation of report by the Board of directors on the annual evaluation made by the Board of its own performance, its committees and the in

Annual Evaluation in the Board's Report According to Rule 8(4) of Companies (Accounts) Rules 2014, every listed company and every other public company having a paid up share capital of twenty five crore rupees or more calculated at the end of the preceding financial year shall include, in the report by its Board of directors, a statement indicating the manner in which formal annual evaluation has been made by the Board of its own performance and that of its committees and individual directors. Schedule IV to the Companies Act provides on Evaluation mechanism as under: The performance evaluation of independent directors shall be done by the entire Board of Directors, excluding the director being evaluated. On the basis of the report of performance evaluation, it shall be determined whether to extend or continue the term of appointment of the independent director. Further, section 178 (2) provides that the Nomination and Remuneration Committee shall identify persons who are qualified to become directors and who may be appointed in senior management in accordance with the criteria laid down, recommend to the Board their appointment and removal and shall carry out evaluation of every director's performance. In this manner by adopting the evaluation mechanism and requiring disclosure of a statement indicating the manner in which formal annual evaluation has been made by the Board of its own performance and that of its committees and individual directors under rule 8(4) of Companies (Accounts) Rules 2014 regulates the preparation of the report by the Board of directors on the annual evaluation made by the Board as above-stated.