MD&A Reporting - A Reality Check : A Case Study of RIL

Abstract

Every global financial crisis leaves behind in its wake heaps of failed institutions, bankrupt nations, impoverished families and plenty of broken egos. It also leaves behind its unique argot, a special grab-bag collection of Jargon and expressions that is peculiar to the crisis and will be forgotten by the time the next catastrophe rolls around. We live in a difficult troubled times. The financial markets are crashing around us and famous financial brands look weak in the face of this meltdown. Corporate scams are not a part of natural disasters, mishappenings, accidents and terrorist attacks, which are totally uncertain but all scams are a part of shroud corporate reporting to play with the emotions of stakeholders. They are forgetting the basic purpose of corporate reporting that is to ensure accountability, transparency and good governance. Corporate reporting is to communicate — in a readily understandable way — timely, reliable and relevant information on a companys past, present and future activities to help users make economic decisions. In addition, the fact is that corporate reporting is currently going through a period of radical change which shows no sign of slowing. This gave origin to new concept of MD&A Reporting to meet global changing scenarios. Overall, in the larger interest of small investors, it is important to ensure that accounting rules are not tampered with to ensemble the financial objectives of the companies. To cover-up the slowdown, corporate must exercise caution and analyze companies’ results thoroughly with the help of fair and transparent MD&A reporting.

Keywords : Corporate Reporting, MD&A Reporting.

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