How we did it

Screening
Only those companies that are listed on both BSE and NSE and have more than Rs 250 crore in market capitalisation (as on June 30, 2008) were selected. A total of 332 companies cleared this stage. Thereafter, companies with an average daily turnover of more than Rs 1 crore on NSE and BSE (combined) were considered. Only 261 companies cleared this test. Thereafter, companies that outperformed the BT 50 index over the last three years (not just for three years overall, but for each of the three years i.e. on a year-on-year basis) were considered. Only 55 companies cleared this test. Seven of these were excluded from the list as their shares were not traded on July 1, 2005 or they listed after June 30, 2008. Only 48 companies were considered for their investor friendliness.

Parameters
The first and the most important parameter is the return given to investors, and it carries 35 marks (out of 100). This is measured by the share price (adjusted for rights/bonus issues, etc) appreciation over the last three years. For this, stock performance during July 1, 2005-June 30, 2008 was considered. The companies that gave more than 1,000 per cent return (total and not annualised) got full 35 marks. Else, the marks were awarded on a proportional basis.

Second is investor care and carries 65 marks, distributed over four subheads comprising:

• Regular dividend distribution: We considered the average dividend payout for the last three years. Companies with over 100 per cent average dividend payout got full 20 marks, while the ones below 10 per cent weren?ft given any marks. The others got marks on a proportional basis.
  
  
• Disclosing shareholder information on time: Companies where the average gap between quarter ending and results declaration date (for the last 4 quarters) was below 10 days, got full 15 marks. The ones where the gap was more than 25 days did not get any marks, and those that had a gap of 10-25 days received marks on a proportional basis.
  
  
• Number of investor complaints: Companies where the average investor complaints were more than one per Rs 1 crore of public holding did not get any marks. All others, got marks proportionately.
  
  
• Holding AGM on time: Companies that conducted the AGM within 60 days (of their financial year ending), got full 15 marks. And the ones where the gap was more than 180 days got zero marks. Companies with gaps of 60-180 days got marks on a proportional basis.