Benchmark study of the Sensex Companies’

Annual Report

Objectives

Findings

Conclusions

Objectives

Findings

Conclusions

AR Monitor: Objectives

Best from Indian Sensex Companies

Annual Report on Annual Reports

Learnings

Rank Company Country Rating

1 FORTUM Finland A+

2 ELECTROLUX Sweden A+

3 AIR LIQUIDE France A+

4 DANONE France A+

5 AKZONOBEL Netherlands A+

6 LAND SECURITIES UK A

7 BASF Germany A

8 SASOL South Africa A

9 SAS Sweden A

10 MICHELIN France A

Annual Report on Annual Reports

Indian ARs in ‘AR on ARs’

Highest Ever Indian Rank = 133

Just 4 in Top 300

Top 100 possible?

Top 10 possible?

AR Monitor: Companies Analysed

Objectives

Findings

Conclusions

Objectives

Findings

Conclusions

Report Length

1

Index

2

Financial Highlights

3

Executive Message

4

Theme

5

Management Discussion & Analysis

6

Corporate Governance

7

Business Responsibility

8

Corporate Information

9

Consolidated Financial Statements

10

Glossary

11

AR Monitor: Aspects Analysed

Report Length

1

Index

2

Financial Highlights

3

Executive Message

4

Theme

5

Report Length: Number of Pages

140-160 pages – the ideal length of AR!

Report Length

1

Index

2

Financial Highlights

3

Executive Message

4

Theme

5

Good Index: Global Examples

Index & Sub-index enhances navigation

Report Length

1

Index

2

Financial Highlights

3

Executive Message

4

Theme

5

FH: Number of Parameters

Place Highlights early, use graphs

Report Length

1

Index

2

Financial Highlights

3

Executive Message

4

Theme

5

FH: Number of Graphs

Performance in a Nut-shell

Report Length

1

Index

2

Financial Highlights

3

Executive Message

4

Theme

5

FH: 5 most-used parameters

What’s not shown gets more obvious

Parameters No. of reporting

Companies Revenue or Sales 29 Profit After Tax (PAT) 29 Earnings Per Share 26 Dividend Per Share 24 EBIDTA 20

Report Length

1

Index

2

Financial Highlights

3

Executive Message

4

Theme

5

EM: Number of Messages

Only 25 ARs had EM

Report Length

1

Index

2

Financial Highlights

3

Executive Message

4

Theme

5

EM: What got covered

Topics discussed No. of Companies Thanking shareholder 19 Operational highlights 18 Strategic review 18 Financial performance 17 Sustainability 12 Economy 12 Industry 10 Future target 2

Tata Motors analysed peer group

Report Length

1

Index

2

Financial Highlights

3

Executive Message

4

Theme

5

Ideal Theme

Brief and with visuals

‘What an Idea Sir Ji’

‘Thanda matlab Coca Cola’

‘Hum main hai Hero’

Report Length

1

Index

2

Financial Highlights

3

Executive Message

4

Theme

5

Theme: Tata Steel

Sustainability (theme) deeply ingrained

Report Length

1

Index

2

Financial Highlights

3

Executive Message

4

Theme

5

Theme: Dr. Reddy’s

Cover theme and design sustained through

Management Discussion & Analysis

6

Corporate Governance

7

Business Responsibility

8

Corporate Information

9

Consolidated Financial Statements

10

MDA: the core of AR

Strategy, Financial Review & Risk Management

Items prescribed by Clause 49 No. of MDAs

Industry Structure & Developments 29

Financial & Operational Performance 28

Segment/Product wise performance 25

Risks & Concerns 23

Internal control systems, adequacy 22

Material developments in HR 22

Future Outlook 17

Opportunities & Threats 14

Management Discussion & Analysis

6

Corporate Governance

7

Business Responsibility

8

Corporate Information

9

Consolidated Financial Statements

10

MDA: Tata Consultancy Services

Flab free MDA

Business Strategy, Brands, Technology, HR

29 risk mitigations

8 years performance

Captain’s view amply reflected

Management Discussion &Analysis

6

Corporate Governance

7

Business Responsibility

8

Corporate Information

9

Consolidated Financial Statements

10

CGR: Number of Committees

4 ARs reported less than 3 Committees

Management Discussion &Analysis

6

Corporate Governance

7

Business Responsibility

8

Corporate Information

9

Consolidated Financial Statements

10

CGR: Dr. Reddy’s

BOD, Management Council, CGR, Shareholders info

Management Discussion &Analysis

6

Corporate Governance

7

Business Responsibility

8

Corporate Information

9

Consolidated Financial Statements

10

BRR: Tata Steel

Doing precedes reporting, photographs engage.

Management Discussion &Analysis

6

Corporate Governance

7

Business Responsibility

8

Corporate Information

9

Consolidated Financial Statements

10

BRR: Wipro

Mapped to NVG, backed with assurance

Management Discussion &Analysis

6

Corporate Governance

7

Business Responsibility

8

Corporate Information

9

Consolidated Financial Statements

10

CI: Number of Headers

Visiting card of the company

Management Discussion &Analysis

6

Corporate Governance

7

Business Responsibility

8

Corporate Information

9

Consolidated Financial Statements

10

CFS: No. of Notes to Accounts

PSUs scored higher

Management Discussion &Analysis

6

Corporate Governance

7

Business Responsibility

8

Corporate Information

9

Consolidated Financial Statements

10

Significant Accounting Policies

A Consolidated View for the Shareholders

Management Discussion &Analysis

6

Corporate Governance

7

Business Responsibility

8

Corporate Information

9

Consolidated Financial Statements

10

Number of Items

Glossary

11

Only 5 ARs had Glossary

Objectives

Findings

Conclusions

Objectives

Findings

Conclusions

India’s Best from Sensex ARs

India’s Best from Sensex ARs

Synthetic AR will most likely be in Global Top 50!

Thank You