Broad Parameters for Evaluation
I. Chairman’s Statement / Director’s Report
|
·
Content & comprehensiveness of coverage of
matters
·
Explanation in case of emphasis of matter
paragraph there in auditor’s report
·
Information relating to and impact of post balance
sheet events
·
Statement on vision and mission of the
organization
·
Statement relating to corporate ethics, values and
risk management.
·
Presentation of any other information relevant and
useful from stakeholders’ perspective in the specific context of the
Company’s business.
·
Comprehensiveness of Director’s Responsibility
Statement as required by relevant provision of applicable law.
·
Consistency of information included in Chairman’s
Statement/Directors’ Report with underlying financial statements.
|
II. Management Discussion and Analysis
|
1. Operating
Performance
·
Overview of the state of affairs of the Company.
·
General review of performance of the company as a
whole and its divisions in the back drop of the given socio-economic and
geo-political environment of business, nature of its activities, peculiar
problems facing the industry, in general, and the Company’s activities, in
particular.
·
Performance of various products and/or segments of
the Company during the period under review, future plans and prospects, with
emphasis on sustainability management.
·
Performance of various group companies together
with future plans, prospects, business risks and risk mitigation measures.
·
Description of external oversight of various
functions like systems audit by an external specialist and other measures
taken to enhance credibility of systems for internal controls and financial
reporting.
·
Information as regards Company’s contribution to
national exchequer and to the economy of the country as a whole.
·
Comprehensiveness of content in general.
2. Enterprise
Risk Management
Description of various risks faced by
various businesses of the Company as a whole and steps taken to prioritise,
mitigate and monitor identified risks.
3. Human
Resource Development
Description of the Company’s policy
relating to human resource engagement, training and development, including
information on measures taken by the Company to meet its obligations and
responsibilities towards employees in particular, measures relating to working
environment, career progression, health, hygiene, safety, personal development
and so on.
4. Corporate
Social Responsibility
Information regarding the policy of
the Company relating to corporate social responsibility and how it has been
applied in practice including contribution to community development projects
e.g. medical and health care facilities, educational institutions,
availability of clean drinking water, sanitation facilities, conservation and
development of environment and ecology, skill development and formation of
self-help groups etc.
5. Environment
– Green Movement
Measures taken by the Company towards
environment protection, sustainable development and growth of the business as
well as 4Ps bottom line reporting. 4Ps include Product, Profit, Planet,
People.
|
III. Corporate Governance Report
|
·
Comprehensiveness and clarity of content of the
corporate governance report.
·
Information as to non compliances of mandatory
requirements of the concerned Statutes and Regulators and whether there are
appropriate explanations for such non compliances.
·
Clarity of description of role and
responsibilities of various governance committees like Audit Committee,
Nominations Committee, Remuneration Committee, etc.
·
Adequacy of governance measures and policies
adopted by the Company in the context of its size and stature of the entity
and as well as adequacy of diversity in terms of gender, qualifications and
professional experience of executive and non executive directors.
·
Detailed description of systems and procedures
followed for Corporate Governance and availability and contents of Compliance
Certificate issued by Statutory Auditors and others mandated by the law.
|
IV. Dissemination of financial information
|
·
Availability of information on website and ease of
viewing
·
Steps taken to disseminate sensitive information
in Company’s own website, Stock Exchanges, etc.
|
V. Quarterly results
|
·
The content of quarterly results, in particular,
the clarity and comprehensiveness of the notes explaining financial results
and variations, if any, over quarters or between audited and unaudited
results.
|
VI. Technical Content – Financial Statements
|
Technical contents
are to be judged for both separate financial statements and consolidated financial
statements, where presented.
·
Compliance with Accounting Standards and other
requirements as per the Companies Act and/or other applicable statutes.
·
Compliance with requirements of concerned
regulators e.g. Circulars issued by the RBI in case of banks, those of the
SEBI in case of listed companies, in preparation and presentation of
financial statements.
·
Compliance with Guidance Notes and other
authoritative literature issued by the ICAI and any other applicable
institutional framework.
·
Comprehensiveness, adequacy, quality and content
of disclosures required under the relevant Accounting Standards, Revised
Schedule VI to the Companies Act, 1956, concerned Regulators, Guidance Notes
issued by ICAI , etc
·
Clarity adequacy and disclosures of accounting
policies.
·
Information relating to subsidiaries with clear
distinction of those within India and outside India and comprehensiveness of
information in relation to financials of subsidiaries as applicable/required
by law. Information relating to associates within and outside of India, as
well as adequacy of the same with clarity of information provided
·
Adequacy of explanation and quantification in
situations where there is no specific standard to deal with a particular item.
|
VII. General – Overall look and feel of the annual
report
|
·
Colour scheme adopted and whether the same is
enhancing readability or affects readability by a layman, e.g. a general
shareholder.
·
Layout of the annual report clearly distinguishing
between various segments of the report.
·
Format adopted for presenting consolidated
financial statements and stand alone financial statements such that there is
clear distinction between the two e.g. by adoption of different colour
schemes or markings, etc.
·
Quality of the paper, printing and overall
aesthetics of presentation.
·
Readability of the report – type of font, size,
etc.
·
Usefulness and relevance of information provided
in the report keeping in view whether there is any over crowding of
unnecessary and irrelevant information is provided.
·
Presentation and analysis of information through
graphs, charts, tables, etc.
·
Nature of details provided in terms of unit of
measurement, rounding off criteria adopted, etc and whether they are easily
noticeable and whether there is consistency of adoption of the same
throughout the annual report.
·
Adequacy of cross referencing of schedules and
various segments of the annual report.
|
VIII.
Statement of Value Added and its Distribution – Value Added by the Enterprise
|
·
Contribution to Government as taxes and other
levies.
·
Distribution to Shareholders as dividend
·
Payments to employees as remuneration
·
Retention by the Enterprise
|
IX. Ratio
Analysis with description of formulae, and Explanatory Statements by
Management
with brief comparative analysis of performance of the entity.
|
·
Gross Profit Ratio
·
EBIDTA
·
PE Ratio
·
Debt Equity Ratio
·
Return on Capital Employed
|
X. Additional
Disclosures
|
·
Any other information or measure like integrated
reporting
|
0 comments:
Post a Comment