Mani, Managing Director of Hoys Manufacturing Ltd, had completed his MBA from Standford. He always believed that the best way to expand a business, is by staying relevant and in sync with technology. He was part of vario

Integrated reporting: Integrated reporting is part of an evolving corporate reporting system. This system is enabled by comprehensive frameworks and standards, addressing measurement and disclosure in relation to all capitals, appropriate regulation and effective assurance. The Integrated Reporting Framework defines integrated reporting as 'a process founded on integrated thinking that results in a periodic integrated report by an organization about value creation over time and related communications regarding aspects of value creation.' Integrated reporting brings together material information about an organization's strategy, governance, performance and prospects in a way that reflects the commercial, social and environmental context within which it operates. It provides a clear and concise representation of how the organization demonstrates stewardship and how it creates value, now and in the future. But integrated reporting isn't just a reporting process. It's founded on integrated thinking, or systems thinking. Integrated thinking drives an improved understanding of how value is created and enhances decision-making by boards and management. The more integrated thinking is embedded in daily operations, the more naturally this information will be expressed in internal and external communications. On this basis, integrated thinking and integrated reporting are mutually reinforcing. Benefits of integrated reporting: Provides a holistic picture of the Company. Enhances transparency and accountability on corporate governance Promotes greater clarity and reduces reputational risk Encouraging your organization to think in an integrated way Clearer articulation of strategy and business model A single report that is easy to access, clear and concise Linking of non-financial performance more directly to the business Creating value for stakeholders through identification and measurement of non-financial factors Better identification of risk and opportunities Improved internal processes leading to a better understanding of the business and improved decision-making process Challenges: The critical challenge of integrated reporting is converting the traditional report that is only concerned with financial terms and related disclosures about an organization's value creation. The conventional report is very lengthy, so it is challenging to make it concise. Also, integrated reporting is compliance-based reporting which is difficult for many organizations to prepare. Another limitation of integrated reporting is, it doesn't provide detailed information. Also, it includes non-financial information, due to which it is more time-consuming to prepare. It requires high expertise for understanding this report because it is a concise report explaining the matter in summary. Describing company's business model in relation to the Framework is one the hardest aspects to implement, because of the Framework's capitals-based approach. Conciseness is also a challenge when reporters want to include new information, either to meet regulatory requirements or because additional content could be helpful to readers. Many reporters find conciseness difficult as they try to provide sufficient context to help readers understand the organization's value-creation process and performance. Few other challenges include: Lack of standardization, Reluctance in disclosing sensitive information, Lack of importance of non-financial information, associated cost of reporting, difficulties with measuring and linking sustainability performance.