Who need to submit a Director's Report?
All companies are legally obliged to include a Director’s Report in their annual financial statement as a annual filing requirements.
What is a Director's Report?
The report must give a fair review of the company’s financial and operational results and condition and also include additional information such as dividend recommendation, reserved earnings, details of directors and their interest, principal risks and uncertainties etc.
Why is there a need to submit?
Director’s Report is an important communication medium for a company to interact with various interest groups such as investors, creditors, government bodies, business analysts etc. Therefore it is essential to ensure that the report includes all the relevant information succinctly yet without any ambiguity.