Webinar on "Unlocking Value: The Role of Integrated Reporting for Investors"

Añadido: 2026-05-27

[00:00:41]Shall we begin sir?

[00:00:43]>> Sure we can.

[00:00:49]>> Hello everyone. A very warm good evening to all the participants present. Uh on behalf of the financial markets and investors uh protection committee I welcome you to this webinar on uh unlocking value the role of integrated reporting for investors. We have with us CAT Maheshwari today a very very very learned speaker with us and I would like to tell you about him a little bit before we begin. So uh CA Ankit Maheshwari is a professional with 15 plus years of distinguished experience in financial and non-financial reporting across diverse geographies. He has a strategic consultant to top listed companies in India specializing in sustainability financials and integrated reporting. He's actively engaged in government initiatives in Rajasthan and serving as a trusted adviser for investment facilitation in the state.

[00:01:40]He's a renowned author and a researcher in finance, accounting and tax literacy.

[00:01:44]He has also published research papers in leading journals shaping the disclosure on financial reporting in India. He has authored multiple compendiums for the institute on financial reporting best practices and commonly found errors.

[00:01:57]He's a former secretary of ICI Japur instrumental in driving ethical and professional excellence initiatives.

[00:02:04]He's a uh he was a special invite in the sustainability reporting standards board of ICI as well and he served as a council at the disciplinary directorate and epilate authority of ICI as well. He has been a keynote speaker at national and international conferences organized by the institute ICAI ICSI and various industry forums. He is a highly respected finance professional, thought leader and a strategic adviser making a profound impact on corporate reporting, governance and investment facilitation in India. I welcome you to the webinar sir and I hope we are going to learn a lot from you on the topic of integrated reporting and much more today. Over to you.

[00:02:44]>> Thank you so much for a very warm introduction. I would also want to place my sincere thanks to CFMIP for holding such a important webinar on talking about the roles of integrated reporting and as investors how do we interpret integrated reporting. My sincere thanks to chairman vice chairman in absentia for uh providing this platform and opportunity to talk about such an important document which we'll be dealing with. Uh let me take you through the presentation straight away and as we navigate the presentation we have uh you know some sevy guidance over integrated reporting. Also we also have few case studies basis the annual reports like you know I've been uh downloading the case studies of Mahindra Mindra Infosys few few annual reports which we will want to see it but let's let's set up the context to the all the learned participants what integrated is how did it evolve in India uh how as an investor you need it I'll navigate through the presentation session as we progress on this entire topic and this journey of uh you know understanding integrated reporting from an investor's lens.

[00:04:15]Is my screen visible?

[00:04:18]>> Yes sir.

[00:04:20]>> Okay.

[00:04:22]So as rightly said um unlocking value which means when you interpret an integrated report how do you unlock the value of an integrated report from an investor's perspective integrated reporting itself talks a lot about value creation which means value created for the stakeholder groups and as we progress with this this session we will realize who are the stakeholders group I am talking about but value created over a short medium medium and long-term for each kind of capital. So we'll understand as as to how an integrated reporting becomes a investor decision tool. But to understand this first you also need to understand from where this concept of an integrated reporting came about and an integrated report in India is usually published as a part of an annual report itself.

[00:05:17]Unlike in western countries or even in Japanese culture you see separate integrated reporting but in Indianized context it is an evolved version of an annual report. When I say evolved version of an annual report uh conventionally I think investors and analysts always used annual reports as a very critical document. And if you recall historically an annual report had few sections right? One section was a corporate overview section. So I am just trying to take you to the traditional annual report and how a traditional annual report is little different from an integrated annual report. So when I talk about a traditional annual report, a traditional annual report had various sections to it which investors and analysts were deeply evaluating. The first section was corporate overview where company talked about their operating context. They talked about their financial snapshots, operating snapshots, the kind of B product portfolio they are dealing with.

[00:06:24]After that in a conventional or a non-integrated annual report, you must be recalling that there's a section called MDNA, which is management discussion and analysis section.

[00:06:37]followed by it you had a corporate governance report and followed by it you had your standalone and consolidated financials.

[00:06:47]Today even the traditional non-integrated annual reports they have a separate sustainability report which is called a BRS business responsibility and a sustainability report.

[00:07:02]More importantly, we will understand what an integrated report is. But conventionally, if you look at this, so the analyst and the investors were looking at two very critical sections.

[00:07:17]One of the most read section of an annual report was MDNA, which is the management discussion and analysis section. And obviously we being chartered accountants and the investors also understood some part of finance.

[00:07:33]The second red section was the standalone and consolidated financial statements which were published as a part of an annual report in an annual report. But with integrated coming and how it came we'll discuss this further.

[00:07:50]Now the integrated section or the integrated reporting section happens to be the top red sections in an annual report.

[00:08:08]So while we navigate through this entire session few learning outcomes appears on your screen which the participants who are attending this will be able to acquire it. One why an integrated reporting is designed around providers of financial capital. So the the creation of an integrated report and why this is there.

[00:08:36]Second as to assess how an integrated report improves analysis of strategy, risk, governance and future performance.

[00:08:50]An integrated report is a six capital report talks about value creation and we will give an investor lens to this entire value creation model or the business model which the companies are now presenting as a part of their annual report called as a value creation model.

[00:09:11]Few more learning outcomes. One, what makes an integrated report decision useful? This is for the preparer side also and what weakens the credibility.

[00:09:23]So we'll understand what are the green flags and what are the red flags and lastly I'll put up some annual integrated reports. We will take some insights from it and maybe you know we'll try to engage that once a KPI is demonstrated in an integrated report then how does it impacts the valuations of the company uh is what we'll try to do this the idea of the entire session is that even though an annual report looks like a statutory document conventionally a compliance document but the with the evolution of the with the evolution of an integrated report. The idea is to give an investor lens to it, an investor's perspective to it and as investors uh how do we analyze it? So the section is deeply intended for two category of audience. One who are on the preparer side of an integrated report and the second is the stakeholder groups who are on the user side and they could be the investors also. They could be analyst also. And what do you infer and interpret from an integrated idea?

[00:10:40]So I want to take you to the evolution of an integrated reporting in India. So SEI issued a circular dated 6th February 2017 and advised top 500 listed companies in terms of market capitalization which were already doing BRRS at that time. So for which we need to also understand as to how the reporting frameworks in India has evolved.

[00:11:10]Conventionally talking about uh earlier we had BRS it was year 2021 when the BRSR where you know a business responsibility report was translated to a business responsibility and sustainability report. This BRSR was completely driven by a semi mandate.

[00:11:31]However, the principles laying down the BRSR were called national guidelines on responsible business conduct and uh so it had these nine principles to do a BRSR and uh divided into three sections. Section A was the general disclosure section, section B was the management and process disclosure sections and section C was the principal wise disclosure section.

[00:12:01]In between this transition, it was 2017 when India started to talk more about non-financial reporting. So as traditionally charted accountants were very good with financial reporting but the modern era charted accountants have now diversified themselves and have started building practices over non-financial reporting also. Two reports parallelly which I am talking about. One is a BRS report which the mandate came in 2021 and the mandate came for top thousand listed companies and it's a mandatory compliance which the companies have to do and an XBRL filing has to be done is also a part of non-financial reporting parallelly as I told which appears on your screen also it was year 2017 when sei asked voluntary adoption by 500 listed companies.

[00:12:59]Just to give you more context and more data, as of now in India, approximately 200 companies are doing an integrated reporting. Across world, you will find 2500 to 3,000 companies doing an integrated reporting. And integrated reporting is driven by a global framework which is called IIRC, International Integrated Reporting Council which eventually before international integrated reporting council it was called as value reporting foundation.

[00:13:35]But today the entire mandate of an integrated reporting or the framework of an integrated reporting is driven from IFRS foundation which you people also recall is the standard setter for financial reporting. So just to give you a glimpse how important this is becoming the IFRS foundation is the agency globally defining the framework of an integrated reporting while it was called an international integrated reporting council but now the standard setter for a financial reporting and non-financial reporting at a global level IFRS is perating both frameworks However, when SEBI introduced this in 2017, Sebi introduced with a at that point in time, IFRS was not there for non-financial reporting. At that point in time, SEBI referenced International Integrated Reporting Council.

[00:14:46]So, the circular had clear regulatory intent.

[00:14:51]India wanted to improve the disclosure standards and wanted that besides providing financial information the non-financial information also becomes useful for investment decision as I told you in the beginning only this was adopted or this was asked to voluntarily be adopted by top 500 listed entities in terms of market capitalization.

[00:15:23]At that point in time these companies were doing BRS and the sebular gave some reporting options.

[00:15:32]One they said you can embed it as a part of an annual report. The other said you can all it gave you some other options also like it said that this can be taken as a part of MDNA section also and you can integrate it as a part of an MDNA also it gave you an option to do a separate integrated report and host it on a website for a cross reference.

[00:16:00]So this year of 2017 was a transition year where lot of conventionally charted accountants who were into financial reporting started moving towards integrated reports and now we are not you know now CA's working with sustainability reports working with BRSRs and working on an entire annual reporting document or an integrated annual report document is nothing new right so uh so this was the entire intent I would want you to first understand the regulatory intent before we give an investor lens to it and would want you to take you to what the notification which is appearing on your screen talked about in detail I hope the sebi circular is visible on your If it is not visible please you can write it on chat box also we have limited participants but I would want this session to be very interactive all your doubts pertaining to uh annual integrated reports uh or integrated reports. I would want you to post in chat box. As a report preparer, I as you know initially introduced also I had an experience of doing at least more than 50 integrated reports in India and whatever questions come to my my side I would be very happy to address those questions instead of you know we having a monologue kind of a thing on a webinar. My request would be to let's let's keep it very interactive. Let's keep it very engaging. It's a very niche domain. So understanding the understanding it will also require some kind of a effort from somebody who is not coming from the uh corporate reporting or annual reporting or financial reporting side. So now the screen appears to be on your screen as I told you it's a circular dated 6th February 2017.

[00:18:08]Now it starts with subject integrated reporting by listed entities.

[00:18:13]It says SEBI has mandated the requirement of submissions of BRR. So we're talking way back in 2017 under SE LOD the key principles which were required to be reported by entities pertaining to areas such as environment governance and stakeholder relationships that's what a BRR was expected to cater now sebi realized which is in your paragraph two today an investor seeks both financial as well as non-financial information to take a well-informed investment decision.

[00:18:51]An integrated report aims to provide a concise communication about how an organizational strategy, governance, performance and prospects.

[00:19:07]So the idea of an integrated report is to provide a concise communication about organizational strategy, governance, performance and prospects create value over time.

[00:19:23]Further, it may be noted that the concept of integrated reporting is being discussed at various international forums. The purpose of an integrated reporting is to provide shareholders and interested interested stakeholders which is relevant information that is useful for making investment decision which is clear that the intent of study was that even though the annual reports are prepared even though we have sections like corporate overview overview MDNA corporate governance financials attached to it but for a better and informed investment decision making.

[00:20:06]They ask the blue chip companies, they ask the top 500 listed companies in terms of market capitalization to do an integrated so that the interesting stakeholders and shareholders are able to take better decisions.

[00:20:28]It referred to the seblodia regulation 41D where it said that the listed entity shall this was already there shall provide adequate and timely information to recognize stock exchange. There should be full accurate and timely disclosure of financial results risk and other information that is material to this discussion. Now it lays down the context.

[00:20:53]In this regard, the IRC has prescribed following guiding principles.

[00:21:01]So an integrated reported reporting is prepared basis. These guiding principles which are appearing on your screen which talks about that an integrated report should have a strategic focus and a future orientation which means traditional financial reporting were historic. They were backward and they had lot of presentation of historic information.

[00:21:30]But an integrated report you will see would have a lot of forwardlooking statement, lot of strategic focus, aims, targets, goals, resource allocations all become part of an integrated report.

[00:21:46]So the difference was that now Sebi realized that the forwardlooking disclosures the futuristic disclosures the strategy and the capital allocation on strategy should reach to the investors and the class of investors and the stakeholder groups for a better transparency.

[00:22:11]It also said so the next guiding principle is that there has to be the linkages of information. The informations have to be connect connected and an integrated report should show a holistic picture of a combination interrelatedness dependencies which affect an organizational's ability to create value over time. So you will see topics like you know an integrated reporting has some elements. One element I can give you an example and we will detail this further also but but just trying to link it. One element is the capitals itself. So an integrated reporting is essentially prepared on a six capital model which is called these six capitals are your financial capital, human capital, manufacturing capital, social and relationship capital, natural capital and intellectual capital. So you identify these six capitals and the relevant performance matrix which you have to demonstrate in these six capitals.

[00:23:29]But these six capitals should have linkages.

[00:23:33]Linkages to what? So while you do an integrated report and when we open the report we'll get a more idea about it.

[00:23:41]You also identify the material topics relevant to it. When I say material topics there's a process to identify material topics which we will understand in detail when we look at the live example. But it says here each section of the report needs to be linked to capital the material issues identified the key risk and it should be linked in a way to the stakeholder groups. Everything has to be linked in a way that a reader or an interpretator or a stakeholder or a shareholder is able to have a linkage of each section and is able to link it to the value which is created for a shortterm purpose, medium-term purpose and a long-term purpose. So a guiding principle of an integrated report is that there has to be connectivity of information.

[00:24:46]Right?

[00:24:48]We are talking on the very important pillars the guiding principles through which an integrated is created from an investor lens. If you don't find that kind of an connectivity then making a decision on an integrated report or making an investment decision on an integrated report shall become extremely difficult.

[00:25:14]The third is the stakeholder relationship.

[00:25:18]So an integrated report should also talk about the identification on stakeholders.

[00:25:26]When we look at the integrated report, you will realize these stakeholders could be shareholders, these stakeholders could be customers, these stakeholders could be value chain partners, the stakeholders could be lenders, the stakeholders could be regulators itself. So these are different different stakeholder groups.

[00:25:45]An integrated report should address to each category of stakeholders related connect the information identify each kind of stakeholder groups to present a holistic picture.

[00:26:03]So the third guiding principle is the stakeholder relationships.

[00:26:09]The fourth is materiality.

[00:26:12]And as I told you that once you do an integrated, it is also important to understand the material matters arising for an integrated report. Materiality is not determined like you know determining a material matters is a complex activity. Typically this activity involves communication with the stakeholder groups through surveys through instruments.

[00:26:40]Understand what is material for them.

[00:26:44]And today we are in an era where now the double materiality has gained so much of traction.

[00:26:50]Understand the impact materiality.

[00:26:55]Also understand the financial materiality for a stakeholder group.

[00:27:00]And you will find that all kind of an integrated report through these guiding principles have two things in common.

[00:27:10]One, a materiality matrix demonstrated on an X and a Y-axis where X-axis talks about likelihood of occurrence and Y-axis talks about the impact of a material issue and and more importantly all these organizations who are doing integrated report also talks about their materiality determination process as a red flag from investors perspective.

[00:27:39]If the material matters are not identified with the change in business scenario, not updated, not identified using external stakeholder groups, the process determination does not gives you a conviction that the organization uh the activity of determination of materiality is very relevant to the organization.

[00:28:04]All these are red flags from an investor's lens.

[00:28:13]The next is the conciseness and it says the integrated report has to be a concise document should be readable and complete which means that there could be a case that uh you know while you look at an integrated report sometimes I also realize that while a while you know a company's talking about tailwinds then they're repeating data over a period of time meaning I give you example in a human resource section or a human capital section we give usually a KPI is given as a part of HR capital is the total L&D hours spent by an employee while I was doing an integrated report the last year L&D hours were hypothetically I'm saying three lakh hours spent by a company company's employees on L&D activities. Now the company will want to present this data year on year when this number is increasing. Meaning that if today it is 3 lakh next year it is 3 lakh 255,000 next year it is 375,000 the company in a routine way discloses this KPI but the moment it goes back to 250,000 hours then the company stops reporting this KPI and this guiding principle of an integrated report says that the report has to be reliable.

[00:29:52]And the report has to be complete. Which means if a KPI is reported and if tomorrow it has a headwind attached to it then also the company chooses to report that headwind instead of instead of changing a particular KPI. I hope I'm clear. Any questions till now? You can come up with your questions.

[00:30:19]The last guiding principle is the consistency and the comparability.

[00:30:28]So an integrated reporting should be consistent over a time. That is what I was saying that your KPI should not change and usually we have industry-wise KPIs.

[00:30:41]For example, a bank's manufacturing capital cannot be compared with a steel manufacturing company's manufacturing capital. Agreed?

[00:30:52]So bank will want to talk about their branch network as a part of manufacturing capital whereas a steel company would want to talk about the production capacities and the output which they are able to generate and the number of facilities or the plants they have.

[00:31:09]So a steel company versus a steel company should usually try to report similar set of KPIs.

[00:31:19]So an investor is actually able to weigh each kind of capital of A company versus B company in a similar industry.

[00:31:29]So friends, we conclude to this topic that once you interpret an integrated report, please ensure that an integrated report first check as an investor you need to do. Please check that this integrated report is prepared bases the five principles which I am talking about which talks about connectivity of information which talks about the guiding principle of how do you have stakeholder relationships talks about strategic focus and future orientation materiality and each guiding principle once I start demonstrating an integrated report and we start interpretating it.

[00:32:17]I'll try to detail this more. Should be concise, reliable, complete. In fact, I would strongly suggest those integrated reports in which KPIs have yearon-year comparisons or minimally you are able to see whether the KPIs moved upwards or downwards uh in a particular year is more reliable, more complete rather companies just presenting their standalone KPIs.

[00:32:51]Last it should have consistency and it should have comparability across industry. Any questions basis the guiding principles I shall be more than happy to take those questions else we moved down.

[00:33:09]So as I told you all organization depon so so conventionally historically financial capital was always reported as a part of standalone and consolidated financials.

[00:33:22]It was MDNA also in which you know financial overview and operational overview and segmental overviews were given but financial capital was something which was traditionally reported.

[00:33:34]What now came with integrated reporting?

[00:33:37]A lot of thrust was given to manufacturing capital, intellectual capital, human capital, social and relationship capital and natural capital and its KPIs.

[00:33:54]The reporting framework to be benchmarked was the international integrated reporting council framework which is now updated.

[00:34:07]Now as I told you in the beginning of the sess session only it was urged by IRC.

[00:34:13]Now we are talking about IFRS foundation in today's context and the standard setter for financial reporting which is your India's IFRS and the standard setter for non-financial reporting at a global level is been spearheaded by IFRS itself is a very important change and can tell you that how quickly the non-financial reporting will start getting dissimilar. So instead of you know today investors just looking at numbers they are talking about the natural capitals the strength of natural capitals and whether these companies are sustainable in the given uh climate risk which is happening across whether the companies are cautious towards its social and relationship capital. How do they identify it? How do they quantify it as investors? whether the process of identification and quantification happens to be consistent or not. So we'll understand this but importantly uh what the sense which I am trying to give to all of you is that as important as your index was as important as your financial reporting was the newer area of practice you will realize non-financial reporting has gained a lot of traction and now you have like accounting standards like India S2. Now you have IFRS S1 and S2 which are two two separate disclosure standards for non-financial reporting also. Not only to the extent of this all these non-financial reporting just by just like financial reporting also undergo an assurance process and there's a standard to assure non-financial information which majority of the companies are getting their integrated reporting getting assured by uh you know assurers like us charted accountants also however assuring an integrated reporting is not a professional agnostic thing. Even uh somebody who is doing a normal sustainability assurance like you know DNB, TUB, SUD all these are doing but you still see a lot of charted accounting firms big four firms doing an assurance over non-financial reporting giving an assurance certificate on these six capitals giving an assurance certificate on the KPIs which are presented in these six capital and the standard which precisely they're using is SSA ISA 3000 000. So this is a assuring standard for assurance standard for non-financial information. Now we have because ISSP has already issued ISA 5000 and India has to yet to adopt to ISA 5000. So this also needs to the assurance practice shall also evolve over this. Right now let's read it further says it has been observed that certain listed companies in India and other jurisdiction have been making disclosures by following principles of integrated. So even before sebi voluntarily asked to adopt integrated reporting as a part of annual report or as a part of mtna you see lot of companies doing even before seb's guidance over it few companies like vro companies like Tata steals uh they did integrated way before sebi guid guidance because they were already having global presence and they already wanted to publish an annual report in which global comparability is there. So one important thing and important outcome which comes to us is that an integrated reporting is also very essential if you want your company's performance to be evaluated by the peers outside country.

[00:38:28]So because of this global standard driving an integrated reporting a steel company in India or a manufacturing social relationship natural capital all these capital of a steel company in India can also be compared to each of these capitals and KPIs can be compared to somebody some company which is in Europe. So because of ease of uh today you know you can be here and invest uh in US markets right. So for the ease of making investment decisions on a global level integrated was considered to be as a very critical reporting framework.

[00:39:15]I take this forward.

[00:39:18]So it says that an integrated may be adopted on a voluntary basis from financial year 1718 by top 500 companies.

[00:39:29]The information related to an integrated reporting may be provided in annual report separately or as a part of an MDA or as a part of a separate report which was there on my slide if you recall.

[00:39:44]In case the company has already provided relevant information in any other report with national international requirement, it may give a reference to it. So there's no point in repeating an information a reference to this can be given can be uploaded on the website.

[00:40:02]So eventually this was the entire notification which was the source to an integrated reporting framework and the adoption of an integrated reporting in India. If you I am giving you a minute of break. If you have any questions pertaining to Seb's guidance over it, I'll be happy to take it on a chat box. Otherwise, I am on a mute for a minute just to receive as to whether you people are able to absorb uh this entire guidance which has been given by Sebi. So, we are on a one minute break and I am expecting some questions now.

[00:42:35]Okay. So we move forward from here. I hope you know by by this you are clear.

[00:42:41]So as I was talking about conventionally there's a paradigm shift.

[00:42:48]We were doing BRRS from year 2017 12 2017 integrated reporting came very important thing also I want to share with my learned audience is that uh after 2017 SEI's guidance no further guidance has been issued by SEBI over integrated labor this appears to be slightly surprising also because where at one point in time Shel is talking about adoption of it and was very aggressive but confusing also because in 2021 another regulated non-financial reporting framework has come up but that is more specific to sustainability reporting which you can see it on your screen which is the BRSR and this was more structured more tabular more in a format of HBRL but more specific to sustainability reporting and integrated reporting is just not about sustainability reporting as we now looked into it. It talks about all the capabilities be your manufacturing capability, be it your HR cap capability, be it your social and relationship capabilities, all kind of capitals which we were talking about also with evolution as I was discussing with the notification also while we talk about integrated and integrated in India is a is assured also a limited voluntary assurance is taken over an integrated reporting. However, parallelly when you talk about BRSRs, the BRSRs are assured on a subset which is called BRSR code which has these nine core KPIs starting from you know majorly ESG KPIs starts from GSG then it has water then it has waste then it has uh energy then it has parameters of finance like openness in business or you jobs created in smaller town. All these kind of very limited set it has more indicators more than 140 indicators comes in RSR but only few of these indicators are undergoing an assurance and this assurance is a reasonable assurance. Now, Sebi has also you know they floated a paper called consultation paper called ease of doing of ease of doing of BRSR and the outcome of that consultation paper was that semi from a reasonable assurance mandate has moved back to assessments which means uh which means that there's a lot of assurance which has been done over non-financial reporting also from an integrated reporting perspective you will find the assurance statement I gave you the assurance standard also but this is a voluntary limited assurance and there's a difference between the BRSR assurance and the BRS assurance is the mandatory reasonable assurance which the companies have uh undertaken what is the difference or what is an investor's opportunity here the integrated talks about is a narrative Ive spine whereas you will see the BRSR or the BRSR subset BRSR core is more evidence based in the beginning only I talked about that BRSR is more specific sustainability whereas an integrated is more holistic and talks about all kind of cap capital capabilities right so that is the Indianized context of non-financial reporting we move ahead So the question is that why from an investor's context an investor needs a fuller picture.

[00:46:52]So one as now you understand this integrated talks about six capital approach.

[00:47:00]So they would also want to you know understand the strength of each capital and allocate their capitals basis the strength which means I'm trying to put up a narrative not necessarily if a company's financials or bottom you know bottom line is strong or even you know the top line is strong. Now an investor does not focuses on only the you know ibitas the pads the turnovers.

[00:47:35]The investor will allocate its capital bases the other capitals and its performance also. And that is why you will find a very important section also as a part of an integrated reporting which is called interplay of capital which means you will find a separate section talking about all six capitals and how each capital interacts with each other. Which means I'm saying how does my manufacturing capital interacts with my financial capital and if you find this section in an annual report as an investor I'm telling you this will give you a lot of overview how the tradeoffs are happening which means the example which I was giving that my how my manufacturing capital is interacting with my financial capital my social and relationship capital by intellectual capital, by natural capital, all these relationships in terms of KPIs also.

[00:48:46]Can I give you a simple example? As simple as say for example, a company decides to do 100 crores expansion in renewable energy.

[00:48:55]Now from an investor lens, you will say the financial capital has been getting depleted by 100 crores. Now you would want to see the allocation of this, right? The allocation of this you will find it in natural capital. So if my natural capital or my renewable energy consumption increases by 100 crores production increases by 100 crores this means that even though there's an erosion in my financial capital but there's a elevation in my natural capital right similarly say a pharmaceutical company doing a R&D right you might track it from financials you you have your intangibles there right there's 38 mentioning intangibles but what does what other KPIs it gives you for example from that you can't read the number of trademarks the number of copyrights the number of patents this company is holding this you will find it in their intellectual capital now in the beginning you see in the beginning of the year you see the total number of patents holded by this company was say 10 or 12 or 15 and as I'll take you through the value creation model you'll also understand it in detail 10. Now 10 patents in at the end of the financial year say have turned to be 15 patents which means the interaction between the intellectual capital and the financial capital happened. Right? So for an investor's perspective time has gone that he only looks at this. He looks at each capital and the interplay of each capital and how these tradeoffs are happening. If an integrated reporting is able to demonstrate these trade-offs in a better way, I think that's where the entire uh trust on an integrated reporting builds up.

[00:50:52]The next is valuation and uh an investor would want to look at the quality of uh each kind of KPIs, the reputation, the risk adjusted returns and integrated as I told you also have a specific section on governance which is the eight core elements which we will discuss but it specifies how the governance is happening. Uh barring the CG report, the corporate governance report, this talks about governance over the integrated reporting KPIs. The governance over the capitals, the accountability of each capital is talked about uh is talked in this section. And last is you will find and if an investor finds a consistency, a consistent narrative, a consistent story, consistent KPIs, consistent actions, forward-looking plans, the strategy and resource allocation sections to be linked with capitals. If they are there, I think that's where an investor lens get completely panoromic. I would say holistic global to make an investment decision. So as I was talking in the beginning of the sec se uh the session also financial statements tells investors what has happened whereas integrated reporting explain why it happened what may happen next and how is the management responding to it.

[00:52:37]As an investor reading an integrated report, you should be able to uh able to grasp whether each of these capitals are creating value. So for each capital you have to look into whether there's a value creation, there's a value preservation or there's a value erosion.

[00:53:04]If the company only talks about value creation on six capitals that is not possible because each capital interacts with it. How they're preserving the value and whether the companies are open enough to talk about erosion of the value also and responding to the value erosion from the other capital or how the management is probably responding to the value as an investor. This question remains to be very important.

[00:53:38]So now you know now you know why what integrated reporting is right and the primary audience is I would say obviously is the providers of financial capital which is the shareholders but the secondary audience happens to be very large be the customer groups be the value chain partners be it the regulatory bodies any kind of stakeholder group is also an audience to uh an integrated reporting.

[00:54:15]The core question we discussed on the last slide how is the value created is organization able to demonstrate preserved and eroded when the annual reports come on your screen I think you'll get a greater and a deeper idea and connectivity of these resources relationships and results is about the core discipline and that is why an integrated reporting is very important unfortunately sebi asked top 500 companies to adopt to it we are only at a number close to 200 whereas in India we have more than you know 2,00 2,500 listed companies doing annual reports but still the wide adoption of an integrated reporting spending uh the wider adoption will only and only bring more trust bring more stories more brand more narratives to the entire uh business operations which the company is doing if it is well reflected within the guiding principles and the core elements which we will be talking about.

[00:55:23]So now you can see the evaluation. So financial reporting was backwardlooking performance whereas sustainability reporting directly talks more about ESG impacts policies matrix and integrated is where the financial and non-financial factors combine and affect the enterprise value and that is why it is considered to be very investor friendly.

[00:55:51]Now with each core element I also want to put uh you know some live integrated reports. I have uh three integrated reports and we can then understand from each core elements how it is demonstrated the three companies which we will be discussing today and you know we you can uh tell me to open another integrated report also but primarily I have taken report of Infosys. I have taken integrated report of Myra and Mindra and I have also taken integrated reporting of Tata steals.

[00:56:27]Before that you as an investor you need to have these eight core elements in your mind. The first is the organizational overview which means once you look at an integrated report please find these sections. They might be in a different name because there is no standardized way to do an integrated report. It's a narrative framework. So company might not necessarily name a section called an organizational overview but can talk about corporate overview or maybe talk about say for example Mahindra. Mahindra and Mahindra will say Mindra at a glance right. All these sections should have an organizational overview.

[00:57:11]The other section is governance which I told you that it is an essence at the heart of this entire model.

[00:57:21]An integrated report should also talk about the integrity of an integrated report. Which means in governance you will find that the board of directors taking the accountability of integrity of an integrated report.

[00:57:40]uh if this accountability statement from management is not there then again a red flag uh as to you know the management is not owing to the responsibility of presenting their non-financial KPIs in a proper way. The third core element the third section is the value creation section. The business model has to be presented in a way where companies are able to identify the six capitals.

[00:58:13]Identify the KPIs of these six capitals.

[00:58:16]These six capitals will have some input and output. So what was at the beginning of the year is the input and what is at the end of the year is the output. And when you look at the business model from an integrated perspective and from an investor lens uh as we progress in this s session you will understand this more.

[00:58:34]But in the center of it it talks about the entire value creation model. Which means the center of the value creation model should be able to describe the business model should be able to link with the aims values product portfolio and how the churning of these six capitals is happening. So if you have to simulate it and I will also present it on the screen all these six capitals will have inputs.

[00:59:06]For example, for your financial capital an input could be the net worth itself of the company, right? And the output would be the PAT, IBIDA, the shareholders. Correct?

[00:59:19]Similarly, from a manufacturing capital point of view, your input could be number of locations, the number of plant side and output could be the total product produced.

[00:59:32]for an intellectual capital and input could be the investment made in R&D and output could be the total new IP created. All this will be there but at the center of it would be the business model. So the input KPIs and the output KPI should remain to be consistent is what I was telling previously.

[00:59:58]Also giving you a more context of it.

[01:00:08]Giving you a more context of it.

[01:00:15]Just hold on.

[01:00:27]Just 10 minutes. Uh 10 seconds.

[01:01:11]Sorry for the interruption. I go back and share my screen again.

[01:01:27]Hopefully now my screen is visible.

[01:01:31]So giving a context of it. So the inputs and the outputs of these KPIs needs to be determined and once you have to determine the input and output of these KPIs uh they rem they they needs to be remain consistent.

[01:01:48]The next is the risk and opportunities section and uh your material issues.

[01:01:56]Eventually I told you the process the guiding principle of identifying the material issues. The material issues needs to be linked to the risk and opportunity section and every material issue will create either a risk or an opportunity or both within it. So the linkage of material issues to risk and opportunities is something which is also very important.

[01:02:23]Right.

[01:02:27]The next is a strategy and resource allocation section and the linkage each kind of capital uh linked to the strategy is what the idea of this section is. It also talks about performance.

[01:02:44]It also talks about the future outlook as it is a forward-looking report and the basis of preparation also needs to be specified.

[01:02:54]So each reading principle each element should reinforce the same strategic story from an investor lens.

[01:03:06]If there are contradictions over a period of time to the narratives then the due diligence triggers from here I would want to take you to finally a case study of an integrated report. Finally I would want to first drive you through a Tata steals report just to give you an investor's perspective and how it is made. Right.

[01:03:38]I hope my screen has changed and you are able to see the integrated report of Tata steals on your screen. If you're not able to see, please let me know.

[01:03:54]>> Right.

[01:03:58]So again getting back to basis of report preparation. Now I'm taking you to these eight core elements. I am coming on the point of basis of preparation.

[01:04:12]And in Tata Steel's report, this basis of preparation is called as a report profile which appears to be on your screen.

[01:04:24]Now it says the reporting principle. It talks about the financial and statutory data. I'm just zooming in for the reference presented in the integrated report is in lines with requirements of the companies act 2013 SEBI LODR and the secretarial standards.

[01:04:54]The ESG parameters it talks about is in accordance with the integrated reporting framework which is the non-financial reporting framework.

[01:05:04]Now you can relate it to what I was saying which is aligned to IIRC and now IFRS foundation.

[01:05:15]It also says that the ESG parameters is not only aligned to IFRS but they are also aligned to GRI.

[01:05:24]They're also aligned to the separate sustainability requirements of India.

[01:05:29]The greenhouse gas protocols the UN SDGs.

[01:05:35]It talks about the assurance which we were talking about the independent assurance. Obviously you all understand what the statutory section assurance is but it talks about reasonable and limited assurance on BRS.

[01:05:52]It also talks about the standards through which it is assured. So now this section is the basis of preparation of an integrated report. How does this appears to me? How it is linked is what I am trying to define.

[01:06:10]The other thing it says the reporting boundary.

[01:06:13]So it's important that like your financial reporting your non-financial reporting should also have reporting boundary.

[01:06:25]The non-financial reporting just like financial reporting can have a reporting boundary stating whether it is on a standalone basis or on a consolidated basis. Which means as an investor when you are reading this report please read at the reporting boundary and the if the reporting boundary is inclusive of subsidiaries or not. Again telling you the relevant context of it like your financials. Your financials are mandatorily presented both on standalone and consolidated basis but no but your non-financial may not be necessarily presented on consolidated or standalone basis.

[01:07:18]So it says the report on ESG parameters right the re it says the report predominantly covers information with respect to Tata Steel as well as its key subsidiaries which means that the report is done on a consolidated basis. Have there been any exclusions from the subsidiaries?

[01:07:44]It will be referred here. Just taking so a contrasting example I'm taking. So where Tata steals categorically reports on consolidated basis gives more validation to the data and the data will appear to be more confirmated with the financial consolidated data. When you look at Infosys, let's look at how they have defined their reporting boundaries.

[01:08:15]So now you have this section, right?

[01:08:20]And it will also talk about basis. You can read in the third paragraph the infosys is prepared accordance with the international integrated reporting council same GR IFRS BRS right and it will also talk about the reporting boundary here where the reporting boundary stand alone.

[01:08:46]So uh and when you look at Mahindra right it will also talk about how this report needs to be read and this is where it is written.

[01:08:59]This is how they write.

[01:09:04]Commonly you find the scope of the report, the reporting period, how it is aligned to an integrated reporting framework and you also find the linkages to the capitals here itself and the linkages each six capital which you were now studying as a part of notification now appears on your screen and the stakeholder groups which was again an important principle. So Tata Steel clearly identifies their investors and lenders as a stakeholder group. The customers, the vendors, the government, employees, community, media, industry bodies, academic bodies, all these are identified as stakeholder groups for an integrated reporting purposes.

[01:09:57]Right?

[01:09:59]Since an integrated reporting is a as as we know as a forwardlooking report that is why a cautionary statement is appearing below your screens which says that certain statements in this report obviously are forwardlooking and assumptions and there's a responsibility statement by the management over it.

[01:10:23]This covers your first core element which talked about basis of preparation.

[01:10:32]Now the next core element which appears to be on your screen and I can take you through index also is organizational overview which you can see on your screen which talks about corporate portrait the product portfolio and here itself the company starts identifying their capitals.

[01:11:08]A major miss which I see in corporate overview section and the organizational overview section which IFRS expects you to do is the uh pestal analysis is the external environment and pestal analysis Uh so now we are looking at the corporate overview section.

[01:11:39]So it says clearly how they are defining it right they're defining their organization one of the most diversified integrated steel producer. So an organizational capabilities from an investor lens will be seen here. The capacity across all the countries is mentioned here and how the organization is building. Again you see a forwardlooking the next era of steel and the forward-looking statements coming from Tata Steel side. You also see the vision, mission statements, the values, the customer base and the product portfolio is now appearing on your screen. Right?

[01:12:24]I would want you to take each capital snapshot is also so the company have started introducing their six capitals but I don't want to go on the sixth capital first. The organizational overview even in the case of Tata steel report does not talks directly about a pestal analysis which I was talking about that is a major miss in Indian integrated annual reports right similarly when you look at Mahindra's report right you will realize the corporate overview section here and it talks about Mahindra groups, right? What is the group snapshot?

[01:13:10]What are the industries? Again, the product portfolio kind of a thing. The vision mission is also there. And as a part of overview, they're also talking about the board of directors and everything. You this this can also come as a part of governance.

[01:13:28]When you go to the infosys right here also you will have the corporate overview section the presence the nature of services right the board of directors also comes here.

[01:13:43]So now this becomes very clear that one element and the organizational overview section you will find it here.

[01:13:52]The next core element when we look at our presentation. So we have covered now two core elements. One is the organizational overview. One is the basis of preparation. I now want to take you to this introducing introduction of six capitals through data capitals report. So now you can start identifying the kind of KPIs which are attributable to steel industry. Similarly we might see a illustrative example for an IT industry.

[01:14:24]Taking back to Tata Steel's report right you have now the six capitals on your screen it for financial capital how the financial capital is managed Tat is making a statement it also gives you a number unfortunately it does not gives you uh you know the yearonar comparison but if We try to read this more. So they have now this entire detailed section of their financial capital and it talks about lot of things. One you can see as a call out it talks about the total cash flow from operations.

[01:15:14]They have identified it as a financial KPI.

[01:15:18]It talks about how this capital is generated.

[01:15:22]It talks about the ratings itself.

[01:15:27]It talks about deployment of capital.

[01:15:31]Just just a 1 second break. There's some technical Sorry.

[01:16:48]So, so the company talks about how they have deployed their capital and this gives you an idea of clearly how the financial capital is utilized.

[01:17:02]So it says in 2425 consolidated capex was 15,671 crores. It talks about their key investments here.

[01:17:14]It talks about the capacity of these key investments. It talks about the geographies in which these key investments are done. It also talks about when these projects gets completed. Right?

[01:17:29]So one at one glance it is talking about the capex linking it to capacity linking it to the geographical expansion that where the stakeholders financial capital is deployed.

[01:17:42]It also talks about the dividend policy which is now the output of the financial capital up to 50% of pack.

[01:17:53]It also talks about how they are investing in long-term growth.

[01:17:58]the dividend which has been given.

[01:18:02]So financial is something which you know as charted accountants we'll be very easily able well to relate to relate to.

[01:18:08]Now it talks about how they are managing their capital.

[01:18:12]So it says they want to create a healthy capital structure, healthy balance sheet resilience, right? flexible terms of financing long-term and short-term and it talks about the total debt at which company is on how they're managing it and net debt to IBIDA is a KPI which they're talking about which is to 3.2x 2x right and it also talks about deleveraging of 6200 kores which means repayment in last 6 months.

[01:18:50]So current deployment how it is managed and how an outlook is given to it. So for 20 in 2425 they're talking about the plans of 2526 capex which is 15,000 crores. They're also talking about low emission steel making facility pound 500 millions.

[01:19:16]They're also talking about a cost saving of 11,000 crores as an outlook with 4,000 cr expected from India improvement of their operating KPIs and productivity.

[01:19:28]All these things are where a financial capital genuinely demonstrate its efficiency.

[01:19:36]And now you can be now you can very well relate to how does a uh you know how important an integrated reporting is.

[01:19:51]The next is the manufacturing capital and when we talk in the context of manufacturing capital we they're talking about the capacities of the manufacturing capital which is how much metric tons perom Indian operations are doing. So now you see the manufacturing capacities for each plant also Tata Steels mentions their manufacturing capacities and their manufacturing capitals moving forward.

[01:20:25]It talks about expansion in India how they are expanding and to what capacity they shall be expanding.

[01:20:33]It's it also talks about supply chain and logistics as a part of manufacturing excellence.

[01:20:44]It talks about the powerful IT house right as a part of intellectual capital.

[01:20:54]What are the key developments?

[01:20:56]Key KPIs you will see here key improvements you can see the investment in technology and infrastructure can be very well seen right. Similarly it talks about the HR capital the employee productivity at Tata steals right versus the overall productivity. So now you can do a comparison to the subsidiaries also.

[01:21:24]And lastly it has it is it talks about the social capital and the natural capital. I would straight away want to take you to the value creation model to make you understand this more and then we come on the other parts.

[01:21:50]So now I'm taking you directly to the business model and that's the input value chain output and outcomes we were talking about. So now on your screen it appears to be financial capital. Tata steals talks about its net worth net debt in an outcome.

[01:22:13]It talks about turnover and saving through improvements in the manufacturing capital. It talks about installed crude steel capacity and output to this is the production metric tons for an intellectual capital.

[01:22:32]It talks about the memberships they have they own with technical institutes. The total number of patent file as an output. Now you can see the new products being developed and the patents granted for human capital. They talk about their employee strength. The training hour per employee the training for an employee,000 percentage days as an output. They're talking about 10% female workforce. They talk about the diversity mix. They're talking about the lost time, injury, frequency rate and what is the workforce to permanent to non-permanent is what is an output.

[01:23:13]They're talking for a human capital. All these things from an investor lens can be very critical from a social and relationship capital point of view. They talk about total dealers and distributors, supplier base, the CSR spend. Now you can understand from investor's perspective. Now you can you are able to see the distribution network. You are parallelly you are able to see the company sensitivity also towards suppliers who have been associated on safety. Then you have business associates, supply chain partners lives impacted through CSR initiatives.

[01:23:55]Lastly you see the natural capital. It talks about the int energy intensity.

[01:24:00]Talks about the capital spends on ESG matters. The water consumption against which the reduction in carbon emissions, solid waste, affiliate discharge, uh socks, knocks, air emissions intensities, biodiversity management which completes the entire business model process and gives an investor the kind of conviction it is required. Right?

[01:24:31]So primarily if and integrated has to be prepared around these eight core elements which now appears to be on your screen. The important portion of organizational overview, business model, performances, outlook, basis of preparation. I have already shared with you guiding principles. We have already discussed six capitals. Now you can very easily understand why what these six capitals are. The financial capital, the manufacturing capital, the intellectual capital, human capital, social and relationship capital and natural capital.

[01:25:11]So now as an investor, how do you read a value creation model? Check about the organizational overview. Check about pestl. Check about how an organization is responding to market to a change in regulation to a technology to a climate society.

[01:25:34]Further to this six capital resources and relationships you've now seen inputs the business model talks about strategy, governance, risk and management. I go back to Tata Steel's report. It talks about the business process itself. It talks about mining, processing, iron making, steel making, rolling product, downstream customers and it also talks about how they are enabling these functions. So the supply chain finished goods handled, the raw material finished goods handled, the human resource, the technology, the bioroducts, the digitization, every function is able to churn the capital is what we are able to understand from an investor's lens perspective.

[01:26:30]Now you can relate it the output outcomes product services emissions and this brings the investor judgment. My idea would be when you as an investor when you're looking at these integrated reports please look it over a period of time because very few reports gives that kind of comparability wherein you can compare a data year on year right so as an investor workflow right because now we are moving towards the conclusion of certain things.

[01:27:13]Screen through this whether the company's invest investable the value creation model the business model the capital input output you know what are the strategic drivers what are the KPIs how the value is changing what questions are also while you invest please look into the questions which are put by investor community on investor con calls or the AGM call on each kind of capital and since this report is a forward-looking report it also needs to be ensured that whether the promises are becoming a part of performances or not right.

[01:27:58]So we move on the translation look at all these things. So now you have uh you can actually quantify the customer trust through an intellectual capital or a social and relationship capital. You can quantify innovation, market excess.

[01:28:18]You can look at strategic and resource allocation section. Look into productivity, supply resilience for capital intensity like we were looking into capital mix of Tata schemes also.

[01:28:32]Manufacturing capital is something which should be seen into.

[01:28:36]Governance is very important. Risk controls are important. The linkage of material issues to risk is also important. And eventually whether an organization is able to create value in short, medium and long term is important. So the report has to be is useful only if it helps investor assumptions right and not merely beautiful narratives will make it very relevant from investor's point of view.

[01:29:08]I just want to cover one more last topic before you know we conclude to this is the material the process of determination of materiality which I was talking about.

[01:29:22]When you look at this section, you can see how the material assessment process has been carried out and all these are the material issues to an organization which I told you can give rise to a risk or an opportunity or both. Now Tata steals talks about the materiality assessment process and I told you looking at the industry and looking at uh the kind of stakeholders considered whether the material issues are relevantly identified or not identified has to be looked into. So one on x-axis you find the impact materiality which means that which means a material issue has been ran on scale scope and nature and impact on yaxis is the financial opport financial materiality which are determined by the risk and opportunities.

[01:30:17]Tata steel up to 2425 says that the material assessment was performed on a consolidated basis through a systematic stakeholder consultation.

[01:30:28]The assessment is aligned with the guidance of IFRS IR integrated SASB GRI basis. They have used AA 1000 stakeholder engagement standard specifically to do a stakeholder consultation.

[01:30:51]On your right side appears to be the material issues which are the GG in steel industry. You will find this very relevant. Circular economy, water, energy, air, biodiversity, health and safety. Versus when you look at an infosys report, if they have the material determination, maternality determination process, you will see the employee just one minute.

[01:31:24]So probably they are not showing the materiality determination process. But what I wanted to identify here was the material issues identified for a manufacturing industry shall be completely different from material issues identified uh for a non-manufacturing industry.

[01:31:48]So uh I think on materiality we are clear when you look at matrix now it is clear whether the you know metric type which you should look at is the whether the financial explained the capital discipline operational shows the indicators of execution the ESG and capitals are linked targets baselines are defined or not and assurance is consistent or not right last I told you you also need to look at the integrity of the integrated report and how the board is oversighting or overseeing the entire process. Right? Uh majorly we have covered now all the case studies.

[01:32:30]At the end I would want you to take you through some red flags which you should quickly note which is the strategic narrative is whether it is not linked to capital allocation or not. So if there are strategic narratives but the capital allocation is not linked again recalling you to the strategy and resource allocation section.

[01:32:53]Risk are listed but they're not listed with mitigation effects is again a problem which is important.

[01:33:02]governance section are silent on actual decisions right and how uh sometimes I've seen integrated report linking it to their CG reports no we are talking about the governance of an integrated integrated report we're talking of an integrated integrity of an integrated report next is the material topics and if the material topics as we saw that you know Tata steals has followed a particular standard to stakeholder engagement look at the quantum of stakeholders group they have identified look at the relevance of the material issues they have been identified from ESG front if there is no targets no baselines if there's no performance against the targets in lot of reports on an integrated section on a natural capital front I particularly see that the targets and the performance are not well aligned look where there are more narratives and less of KPIs happens to be red red flag. So obviously a weak report creates more questions. A strong report makes management easier to underride and you know what they're talking about. So friends at the end I would just want to say that an integrated reporting uh is entirely uh a very still a very new concept even it is 9 years old the adaptability is still a new but on from the preparer side companies those who have prepared it are not only able to win investors confidence and trust but more importantly uh when you look at the IFRS foundations framework. Lot of companies have started doing integrated report for their internal performances also which mean meaning that once your HR head knows that he has to consistently maintain a L&DR L&D and it will be reflected in an annual report L&D rate.

[01:35:05]So that kind of an effort is put to be to you know cross those KPIs or to achieve a achieve those KPIs. The best part of an integrated report is that it gives you those targets. Each department, your manufacturing capital owner gets a target. Your social and relationship capital owner gets a target. Your natural capital owner gets a target and he knows that every year through an integrated report my my performance shall be reported. It acts as an excellent strategic tool also for management as well as you know the session talks about the investor's perspective. It definitely adds value to the investor perspective. So I hope you know to this entire activity and case studies uh I'm able to justify your last 1 hour 1 hour 45 minutes and I am more than happy to take any questions. Sini that's all from my side. Thank you so much for coordinating with this and u you know I hope you know we were able to justify the time.

[01:36:15]>> Yes sir definitely it was very very insightful. Uh I myself don't belong to this background but uh the way you've explained things it it was very very easily you've explained everything. So thank you so much. I don't think we have any questions but I would uh like to ask you a few questions on behalf of the I think what which questions should be maybe things that should be cleared. So uh one of the questions is what specific act integrated report should an investor pay the most attention to and why?

[01:36:48]So I think the maximum time we spend there was on the value creation model itself and the value creation model is something which can tell you at a glance instead of looking at entire report which can tell you at a glance the performance of each capital and also links it to you know the stakeholder groups. So when you look at a value creation model, please look it from the short-term perspective, medium-term and long-term perspective. Which means that the short-term will be output, the medium-term will be outcome and the long-term will be the impact on each stakeholder group. If for each capital you are able to assertain the impact on each stakeholder group, I think that's where uh an investor get a better perspective in a greater lens.

[01:37:35]>> Right. Um the next question is could you um could you share a example where integrated reporting helped investors understand a company's true value better than traditional financial systems.

[01:37:48]>> So I think when you look at see the examples are these 200 companies and they are the top 200 in terms of market capitalization. So very few blue chip companies you will see in nifty 100 not doing a integrated report which means that those whose performance is good those who wants to retain their large stakeholder groups in the primary and secondary markets will surely do this and that is why the company which are touching the bottom line which have limited stakeholders which have limited shareholders possibly avoid to do it. So if I have to answer it, I think the top ones are top fun ones because uh because they're top ones naturally they're doing integrated but the integrated also brings uh a lot of trust and conviction in the eyes of investors.

[01:38:41]Right.

[01:38:44]>> Right. Um the next question is what new competencies should chartered accountants develop to contribute meaningfully to integrated reporting? I think I in in in during the session also I told I I was somebody who did a lot of financial reporting throughout my life and I have to transition from financial reporting to non-financial reporting. So the adaptability to non-financial reporting is the future. See we see some limited areas right today when you talk about a statutory audit assurance versus the BR BRS assurance or an integrated reporting assurance the game has changed uh they are more rewarding the non-financial assurance are much more rewarding today when you talk about earlier we used to do consolidation today we are talking about doing consolidation of non-financial care so the skills set is nothing it is about you know understanding the regulatory expectations as chartered accountants.

[01:39:46]My biggest strength was I was able to absorb what IFRS wanted me to do or IRC wanted me to do rest uh you know other than natural capital I did not felt that I require some external helps.

[01:40:03]The actual capital was somewhere where I felt that yes we require some kind of an external help but your content writing your creativity your thought process of branding uh your alignment to sustainability. So you will always require a multi-disiplinary team just like your see a practice you know somebody does a tax and somebody does a stat and somebody does a internal audits here you will require separate functions to head to but uh because it's about KPIs because it's about non-financial narratives the KPIs accountability and the conviction of board on a charted accountant to Uber and integrated is much higher versus anybody Excellent.

[01:40:54]Uh the last question would be uh with the introduction of BRSR by SEBI, do you see integrated reporting in BRSR converging in the future?

[01:41:05]>> No, the BRSR is driven by regulatory and India's commitment at Paris convention.

[01:41:12]>> Is an XBRL tabular filing? Yes, there is some information which gets repeated and integrated is completely a business strategic cumulated with financial and ESG. So I told in the between the session also that you know the guidance from uh SEBI is to come after 2017 but uh I don't see them converging at all. In fact, integrated will always remain to be prominent and the sustainability report will naturally evolve basis India's commitment to 2000.

[01:41:47]We have an interim commitment coming at 2030 and then a 2070 commitment but very different one caters regulatory expectation and other caters the stakeholder group's expectation. One is completely visually edited, branded, narrative based. Other is completely performance and metrics based.

[01:42:08]>> Right.

[01:42:10]All right. So, thank you so much for answering these questions and for taking your time >> for helping me in this session. Uh, thank you so much. Thank you for coordinating. It was wonderful to interact to everyone. Thank you everyone who have joined. Uh, I hope I hope I and Suni made it some some fruitful. Thank you.

[01:42:28]>> Thank you, sir. Thank you.