ABSTRACT
The annual report is the most comprehensive, authentic and regularly written communication from, the corporate management to their shareholders. This was first initiated by a far-sighted and progressive management interested in building relationship with their investors. They could tap this relationship for raising resources in the future. But this practice was followed only by a few companies. The first mandate for an annual report to keep the regulators and shareholders informed was in the state of Victoria, in Australia. This practice gradually spread across the world, to become a standard feature of the corporate statute. US regulators provided freedom to the corporate management team in their annual report communication. This led to innovative uses of the annual report. From a pure financial communication, annual reports became the corporate calling card. In addition to reporting financial results, annual reports gradually began to reflect the future business potential. To interpret the results, management discussion and analysis (MDNA) was introduced in the annual report. The management interpreted the financial results in a narrative form and highlighted, the future implications of the results. Over time, content was added to address the concerns of other stakeholders, especially regarding the social and environmental impact of business. Annual reports today are produced by a team of graphic designers, communication specialists and investor relations team. Like the Miss Universe contests, annual reports are also judged by experts and the world's best annual report, selected.
