Disclosure Practices of Corporate Sector

In the late 1980s, corporate sector in a number of countries was beset with problems of questionable accounting practices. India also had its share of scams, scandals, and flagrant violations of law under the veil of corporate impenetrability. Stock, market scam, the CRB scam and UTI scam are some of the examples. It is indeed surprising that large corporations, periodically and often quite suddenly, turn insolvent. In the present context, corporate governance is no longer a luxury but a necessity because lack of concern for society, widespread fraudulent conduct, managerial greed, performance failure, cutting corners and cheating are growing day by day. Quality of governance is influenced by integrity of the management and the need to carry on operational activities in a transparent manner by proper and adequate disclosure of financial and non-financial data) corporate disclosure) through Annual Reports and other documents. This helps the shareholders take judicious economic decisions and evaluate the stewardship function of the management. This book is all about corporate disclosures in the backdrop of growing business malpractices and loss of faith in the company form of business organization by the investors, particularly small investors.