A Study On Integrated Financial And Sustainability Reporting In Selected Listed Companies Of India

Abstract

Integrated Financial and Sustainability Reporting is at an initial stage. Looking at its importance in few countries of the world it has been made mandatory. Soon India will also follow this mandate. South Africa stood at the first place in implementation of Integrated report, followed by Germany and Netherlands. Traditional Financial reporting had limitations as it could not show Social and Environmental Sustainability aspects. Integrated Reporting is a combination of Financial reports along with Sustainability reports. As Integrated report enhances transparency, reliability, materiality it is known as a Holistic report. Value of the organization over short and long term is created due to adoption of Integrated Report. India has its own standards of financial reporting and own way of reporting Corporate social responsibility. Indian financial reporting framework is determined by Institute of Chartered Accountants as well as Companies Act 2013. However, such reporting framework can t satisfy needs of all the stakeholders of the society. Integrated reporting system can cover various financial and non-financial reporting aspects too. It covered various financial aspects, social responsibility discharge aspects as well as environmental aspects too. Current research work investigates current financial reporting practice in the area of Social and Environmental reporting parameters set by Global Reporting Initiatives. Stakeholders seeks for information beyond financial data as they believe that sustainability reports indirectly affect the financial position and value of the organization. Moreover, non-financial advantages should be encouraged in order to treat it as pay back to the society, environment and nature at large. An organization is operated in the society and thus it should not affect adversely the society and nature. Such information needs are fulfilled through Integrated Financial and Sustainability Reporting.