Presented By:

Vishal Goel

CONTENTS
Introduction
Disclosures
Annual report
Disclosure quality

INTRODUCTION
Corporate governance broadly refers to the mechanisms,
processes and relations by which corporations are controlled and
directed.
Governance structures and principles identify the distribution of
rights and responsibilities among different participants in the
corporation.
such as the board of directors, managers, shareholders, creditors,
auditors, regulators, and other stakeholders & includes the rules
and procedures for making decisions in corporate affairs.

Disclosure Of Info. Contents &

Stakeholders
Quality Of Disclosure:
It

provides sufficient information for each category of the

stakeholder in a company. It is represented by ...

1.
Level Of Disclosure:
.One approach is of being open & accessible.
.Second approach is of maintaining secrets & strategic info of
company.

Cont.

2. Level Of Transparency:
It implies presentation of info as far as possible in self
explanatory manner.
It implies the management of company should disclose
the info as early as possible to assist stakeholders.

Disclosure In Corporate Financial Reports

Annual Report
Complete Set Of Financial Statement:
Financial statements are important documents apprising the user not
only about the financial position of the company but about the vision
of the management and future plans of the company. It includes.

1. Balance sheet:
.The balance sheet is a static statement that discloses the info. about
assets, liabilities & equity of the company on the reporting date.
.The balance sheet holds the answer to the question : what does a
company own & owe at the end of the financial year?

Cont.

2. Income statement/ Profit and Loss Account:

. prepared at the end & revenue and expenses for the year
. P/L appropriation account is like a link between revenue items
and capital items such as assets and liabilities.

3. Cash Flow Statement:

. Cash flow statement depicts the movement of cash and its
equivalent during
previous 12 months, i.e.., between two
balance sheet dates.
. It is an analysis of the past financial statements , it facilitates in
planning for
cash for the coming financial year.
Cont.

4. Explanatory notes to accounts:

Company act, 1956 & various accounting standards &
provisions of IFRS stipulate the disclosure of significant
notes to accounts that are necessary for transparency &
disclosure.
These assist the users in making correct interpretation
about the financial results & financial position of the
company.

5. Statement of changes in equity:

Company audit by an independent external auditor is a
mandatory requirement.

Report Of Statutory/External
Auditors Report
Audit of books of accounts & financial statements of
a company by an independent external auditor is a
regulatory requirement, therefore , it is called statutory
as well as external audit.
The report by an external auditor might be a
qualified or unqualified one.

Board Of Directors Report

Financial results
Summary of previous financial years results
Details of dividend declaration
Summary about capital and finance
Summary of deposits
Transfer to investor education and protection fund
Summary report on subsidiary companies
Disclosures

Management Discussion &

Analysis
Business overview
Industry structure & development
Financial performance as a measure of operational
performance
Opportunities & risks
Internal Control Systems & their adequacy
Material development in human resource
Cautionary Statement

Corporate Governance
Report
Corporate governance encompasses the combination
of laws ,regulations, rules & business practices that
enable the corporate houses to attract capital &
discharge its obligation to society.
Corporate governance practices result in:
a. Greater management accountability
b. Credibility
c. Increased public confidence in the financial results
of the company

Good Corporate
Governance
Corporate governance describes all the Influences
affecting the institutional processes, including those
for appointing the controllers, managers, regulators
involved in organizing the production & sales of
goods & services.
There is a positive co-relation between good
corporate governance & maximization of value for
the shareholders & for rest of the stakeholders.

Voluntary Disclosures
Voluntary disclosures implies the disclosure of such
fact that are not mandatory by any of the law or
regulatory requirement.
This might include financial info or certain other
info disclosing the facts to enhance the reliability &
transparency of the annual report.

Disclosure Quality
Enterprise external environment analysis
Internal environment analysis
Mission
Target
Strategic goal of business unit
Plan of action to be taken next year

THANK YOU!!!