In the present era of business two principles are very important. First is transparency and second is trust. Investors are also more interested in investing in the companies which demonstrate good social responsibility and have high standards of transparency norms. The entire stakeholder wants the see that the respective company should operate with integrity and this can be done with the help of a good corporate governance structure. It reflects the positive traits of a company and the intentions behind the particular business they have. Corporate governance also affects the performance of the company. The present study shows the corporate governance practices in central public sector enterprise listed in Nifty CPSE index and its relationship with the efficiency of the companies. There are 10 companies in this index out of 8 companies for a period of five years was taken up for the study. The data of 2 companies were found incomplete so they were not included in the study. To study corporate governance, corporate governance discloser index i.e. CGDI was used and for efficiency Assets turnover ratio and Inventory turnover ratio were used. Three control variable .i.e. size of company (natural log of total assets), age of the company (year from incorporation) and leverage (debt equity ratio) were also taken. After the collection of data Karl Person coefficient of correlation and linear regression was applied. In the analysis it was found that there is positive correlation of corporate governance with efficiency there is a significant positive impact of corporate governance on Inventory turnover ratio.