Corporate Reporting Practices and Corporate Governance In India: An Analysis

Abstract

Nowadays due to rapid industrialization and globalization, the concept of Corporate Reporting (CR) has gained utmost importance. It is regarded as a crucial issue of organizations irrespective of size, sector and business goal. Recently reporting not only confined to financial data, but extended to other non-financial areas of a corporate enterprise.  Corporate reporting is a broader concept which includes both financial and non-financial reporting. It has become a worldwide concept whereby organisations consider the interests of stakeholders by taking responsibility for the impact of their business activities on customers, employees, shareholders communities and the economy as a whole. It is one of the crucial functions of corporate enterprises through which the interested parties such as employees, customers, creditors, stakeholders and even Government etc., can access easily both the financial and non-financial information of a company which enables them to analyze the overall position of a company while taking crucial decisions. Corporate reporting is nothing but the communication of an enterprise's activities to the external world. At present, many numerous reforms have emerged in Corporate Reporting Practices in order to safeguard the interests of stakeholders. Recent developments in corporate reporting indicate a greater emphasis on better voluntary disclosures by the companies regarding their performance and state of affairs. Corporate Governance is the responsibility of Board of Directors to protect the interests of the stakeholders through effective CR practices. Against this backdrop, the present study has been undertaken to analyze the practices of CR and Corporate Governance in India.