Business Responsibility Reporting by listed firms for better transparency
Published: Feb 07, 2017
By TIOLCORP News Service
MUMBAI, FEB 07, 2017: SEBI has prescribed integrated reporting (Circular No. 10) by listed entities through which it has mandated the requirement of submission of Business Responsibility Report (‘BRR') for top 500 listed entities under Regulation 34(2)(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 ("SEBI LODR"). Integrated Reporting may be adopted on a voluntary basis from the financial year 2017-18 by top 500 companies which are required to prepare BRR. The key principles which are required to be reported by the entities pertain to areas such as environment, governance, stakeholder's relationships, etc.
An integrated report aims to provide a concise communication about how an organisation's strategy, governance, performance and prospects create value over time. Further it may be noted that the concept of integrated reporting is being discussed at various international forums. The purpose of integrated reporting is to provide shareholders and interested stakeholders with relevant information that is useful for making investment decisions. The International Integrated Reporting Council (‘IIRC') has prescribed following Guiding Principles which underpin the preparation of an integrated report, specifying the content of the report and how information is to be presented.
The information related to Integrated Reporting may be provided in the annual report separately or by incorporating in Management Discussion & Analysis or by preparing a separate report (annual report prepared as per IR framework). As a green initiative, the companies may host the Integrated Report on their website and provide appropriate reference to the same in their Annual Report.
