CORPORATE DISCLOSURE PRACTICES IN INDIA  A STUDY

K.BANUPRIYA; Dr.C.VETHIRAJAN

Volume : V, Issue : XII, December - 2015

CORPORATE DISCLOSURE PRACTICES IN INDIA A STUDY

K. Banupriya, Dr. C. Vethirajan

Abstract :

This paper has been made an attempt on the theoretical view of corporate disclosure practices in India. The concept of disclosure is great significance to the accomplishment of objectives of financial reporting. Corporate disclosure is an important issue now–a–days. Financial reporting is the communication of financial information of an enterprise to the external world. The theory is that fully informed consumer would more likely make better choices. Knowing the trust cost of everything would force consumers to be better educated and more informed. Corporate annual report is considered as the most effective means of communication to various users groups which ing out relevant financial and non financial information about corporate performance. As a medium for communicating information, annual reports generally include two types – mandatory and voluntary disclosures. In India mandatory disclosures are required as per the provisions of companies Act 2013. Voluntary disclosures are those which are voluntarily disclosed by companies in their annual reports without any compulsion from the any statute. The importance of corporate disclosure practices has been of major interest both in theory and in practice. Full disclosure practice along with transparency in financial reporting can build climate of trust and boost confidence of investors’ community. Full disclosure and transparency are driving forces for the success of businesses and sustainable performance and helps in maximization of wealth of shareholders. This paper examines theoretical background of corporate disclosure practises in India.