ICSI formulates guidance note on company board report

08 Sep 2004

New Delhi: The Institute of Company Secretaries of India (ICSI) has formulated a guidance note on `board reports'' for companies. The board reports will help shareholders, lenders, bankers, and the government to make an appraisal of a company''s performance.

"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. It is an attempt to suggest the best practices to be followed by companies in the preparation and presentation of the board''s report," an ICSI official said.

The report prescribes certain practices that are desirable for good corporate governance.

It is mandatory for the board of directors to present annual accounts to the shareholders along with its report, known as `board''s report''.

The report also provides a complete review of the performance of the company for the year, material changes and an insight into the future growth and profitability of the company.