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Insights into Annual Reports
This document highlights the trends in the disclosures on Board Evaluation, Internal Financial Controls, Enterprise Risk Management, Related Party Transactions, and Compliance to the applicable laws and regulations in the Annual Reports of FY2015 of India’s 100 leading companies. The report compares the reporting practices on the mandatory disclosure requirements in the five governance areas and draws attention to the additional disclosures made voluntarily by some companies.
The disclosure of the methodology adopted could perhaps afford a better articulation with enhanced clarity and elaboration. On Compliance, while most companies in the sample adhered to the mandatory Compliance requirements, there is scope for further improvement in their voluntary efforts so that the stakeholders stay more informed. Step up in the mandatory and the voluntary disclosures in particular, on IFC would no doubt instill greater degree of confidence among the stakeholders. Unlike other areas, the disclosures of RPT allude to greater objectivity and clarity, perhaps because the Act itself is comparatively more prescriptive on RPT disclosures than in the other four areas.