Summary |
The Companies Act, 1956 requires the Board of Directors of every company to present annual accounts to the shareholders along with its report, known as the “Board’s Report”. Disclosures in the Board’s Report are specified under various sections of the Act.
The Board’s Report is the most important means of communication by the Board of Directors of a company with its stakeholders. The Board’s Report should, so far as is material for the appreciation of the state of the company’s affairs by its members, deal with any changes which have occurred during the financial year. The Board’s Report should cover wide spectrum of information that stakeholders need, in addition to financial data, to understand fully the prospects of the company’s business and the quality of the management.
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