Guidance Note on Board's Report

 About the book:

The Board’s Report is the most important means of communication by the Board of Directors of a company with its shareholders.  It is a comprehensive document which serves to inform the shareholders about the performance and prospects of the company, its major policies, relevant changes in management, future programmes of expansion, modernization and diversification, capitalization of reserves, etc. The Board’s Report enables not only the shareholders but also lenders, bankers, government and the public to make an appraisal of the company’s performance and provides an insight into the future growth and profitability of the company. 

Preparation of the Board’s Report requires a thorough understanding of the various legal requirements that stipulate a number of disclosures to be made in the Report.  Besides the mandatory requirements, the Board’s Report should, as a good corporate practice, make certain disclosures which are relevant from the point of view of stakeholders. These additional disclosures would not only enhance the utility of the Report to the stakeholders but would also help the companies in enhancing their image in the corporate world as good corporate citizens following sound governance practices.

The Guidance Note has been formulated after detailed research and analysis of the Board’s Reports of several companies and the legal requirements in India and abroad, and is an attempt to suggest the best practices to be followed by companies in the preparation and presentation of the Board’s Report.