GOVERNANCE REPORTS & FINANCIAL STATEMENTS - IDLC REPORTS & FINANCIAL STATEMENTS - SUBSIDIARIES DISCLOSURES, CHECKLISTS & MISC.

INTEGRATED REPORTING CHECKLIST

Sl. No. Particulars Page Reference Chapter/Section Reference

1 Elements of an Integrated Report

1.1 Organisational overview and external environment

An integrated report should disclose the main activities of the organisation 12 Products & Services,
and the environment of which it operates. 16 Business Model,
43 Operating Context & Risk Management, overview
62 and macroeconomic highlights
234 Management Discussion & Analysis,
Note 1: Company and its activities
An integrated report should identify the organisation's mission and vision, and provides
essential context by identifying matters such as:
• The organisation's:

 culture, ethics and values 10 Our Philosophies

 ownership and operating structure including size of the organisation, 20 National Footprint,
location of its operations) 31 Shareholding Composition,
407 IDLC's Branch Network,
412 Details on IDLC & Subsidiaries' Legal Info
 principal activities and markets 16 Business Model,
118-132 Business Segment Reviews,
234 Note 1: Company and its Activities
 competitive landscape and market positioning (considering factors such 47 Market Forces & Competitive Landscape
as the threat of new competition and substitute products or services, the
bargaining power of customers and suppliers, and the intensity of competitive
rivalry)
 position within the value chain 14 Value Chain

• Key quantitative information

e.g. The number of employees, revenue and number of countries in which the 4 Highlights,
organisation operates highlighting, in particular, significant changes from prior 20 National Footprint,
periods 62 Management Discussion & Analysis
• Significant factors affecting the external environment and the organisation's 44 Macroeconomic Factors & Their Impacts
response (include aspects of the legal, commercial, social, environmental
and political context that affect the organisation’s ability to create value in the
short, medium or long term)
Eg:

 The legitimate needs and interests of key stakeholders 10 Materiality Determination Process,
105 Social & Relationship Capital
 Macro and micro economic conditions, such as economic stability, 23 Chairman's Statement,
globalization, and industry trends 26 CEO's Statement,
43 Overview & Macroeconomic Highlights,
44 Macroeconomic Factors & Their Impacts,
47 Market Forces & Competitive Landscape,
190, 303, 337, 367 Directors' Reports,
119, 121, 123, 128, 130, Business Segments Reviews:
132 - Performance rationale-External factors
 Market forces, such as the relative strengths and weaknesses of competitors 44 Macroeconomic Factors & Their Impacts,
and customer demand 47 Market Forces & Competitive Landscape
 The speed and effect of technological change 45 Macroeconomic Factors & Their Impacts -
Technological,
64 Strategy & Resource Allocation - Risks &
Opportunities
 Societal issues, such as population and demographic changes, human rights, health, 45 Macroeconomic Factors & Their Impacts - Social
poverty, collective values and educational systems
 Environmental challenges, such as climate change, the loss of ecosystems, 46 Macroeconomic Factors & Their Impacts -
and resource shortages as planetary limits are approached Environmental
 The legislative and regulatory environment in which the organisation 46 Macroeconomic Factors & Their Impacts - Legal
operates
 The political environment in countries where the organisation operates and 44 Macroeconomic Factors & Their Impacts - Political
other countries that may affect the ability of the organisation to implement its
strategy

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1.2 Governance
An integrated report should show how does the organisation's governance 62 Strategy and Resource Allocation,
structure support its ability to create value in the short, medium and long term. 135 Statement of Corporate Governance
An integrated report needs to provide an insight about how such matters as
the following are linked to its ability to create value:
• The organisation's leadership structure, including the skills and diversity 32 Profile of the Board of Directors,
(e.g., range of backgrounds, gender, competence and experience) of 135 Statement of Corporate Governance
those charged with governance and whether regulatory requirements
influence the design of the governance structure
•Mandatory and voluntary code of corporate governance adopted by the 163 Statement of Corporate Governance - Ethics and
Company. Compliance
•Code of ethical conduct adopted by the Company in relation to ethical
business.
• Specific processes used to make strategic decisions and to establish and
monitor the culture of the organisation, including its attitude to risk and
mechanisms for addressing integrity and ethical issues
• Particular actions those charged with governance have taken to influence 51 Statement of Risk Management,
and monitor the strategic direction of the organisation and its approach to risk 135 Statement of Corporate Governance
management
•   How the organisation's culture, ethics and values are reflected in its use of 62 Strategy and Resource Allocation,
and effects on the capitals, including its relationships with key stakeholders 72-117 Capitals,
163 Statement of Corporate Governance- Ethics and
Compliance
• Whether the organisation is implementing governance practices that exceed 163 Statement of Corporate Governance- Ethics and
legal requirements/ Key Policies Compliance
• The responsibility those charged with governance take for promoting and 172 Statement of Corporate Governance - IDLC’s
enabling innovation Overall Governance
•    How remuneration and incentives are linked to value creation in the short, 96 Human Capital,
medium and long term, including how they are linked to the organisation's 172 Statement of Corporate Governance - IDLC’s
use of and effects on the capitals. Overall Governance
1.3 Stakeholder Identification/ relationships
An integrated report should identify its key stakeholders and provide insight 10 Materiality Determination Process,
into the nature and quality of the organisation's relationships with its key 105 Social & Relationship Capital
stakeholders, including how and to what extent the organisation understands,
takes into account and responds to their legitimate needs and interest.
Stakeholders are the groups or individuals that can reasonably be expected
to be significantly affected by an organisation's business activities, outputs or
outcomes or whose actions can reasonably be expected to significantly affect
the ability of the organisation to create value.
An entity may disclose the following in their integrated reports in respect of
stakeholder relationships:
• How the company has identified its stakeholders. 107 Social & Relationship Capital - Stakeholder
Identification & Engagement
• Stakeholder engagement methodology.

• Identification of material matters of stakeholders. 10 Materiality Determination Process,

105 Social & Relationship Capital
• How the Company has applied such matters. 107 Social & Relationship Capital - Stakeholder
Identification & Engagement
• How the stakeholders are engaged in assessing impacts, implications and 16 Business Model,
outlook in respects of Company's business model. 62 Strategy & Resource Allocation,
Capitals 105 Social & Relationship Capital
An integrated report needs to provide insight about the resources and the 14 Value Chain,
relationships used and affected by the organisation, which are referred to 16 Business Model,
collectively as the capitals and how the organisation interacts with the capitals 62 Strategy & Resource Allocation,
to create value over the short, medium and long term 72-117 Capitals
An integrated report need to identify the various forms of capitals which are 14 Value Chain,
essential for the success of its business operations. 16 Business Model
Eg:
Financial Capital -The pool of funds that is available to the organisation for use 72 Financial Capital
in the production of goods or provision of services.
Manufacturing Capital -Manufactured physical objects that are available to the 102 Manufactured Capital
organisation for use in the production of goods and provision of services.
Intellectual Capital -Organisational Knowledge based intangibles. 99 Intellectual Capital

Human Capital -People's competencies, capabilities and experience, and their 93 Human Capital
motivations to innovate.

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Social and Relationship Capital -The institutions and the relationships within 105 Social and Relationship Capital
and between communities, groups of stakeholders and other networks and
the ability to share information to enhance individual and collective wellbeing.
Natural Capital -All renewable and non-renewable environmental resources 115 Natural Capital
and processes that provide goods and services that support the past, current
and future prosperity of the organisation.
Note: However an entity can do its own classification of capitals based on
its business activities. An entity needs to ensure that it does not overlook a
capital that it uses or affects
1.4 Business model

An integrated report should describe the organisation’s business

model
An integrated report need to describe the business model, including key: 14 Value Chain,
16 Business Model,
• Inputs
43 Overview & Macroeconomic Highlights,
• Business activities 44 Macroeconomics Factors & Their Impacts

• Outputs

• Outcomes

Features that can enhance the effectiveness and readability of the

description of the business model include:
• Explicit identification of the key elements of the business model

• A simple diagram highlighting key elements, supported by a clear

explanation of the relevance of those elements to the organisation
• Narrative flow that is logical given the particular circumstances of the
organisation
• Identification of critical stakeholder and other (e.g., raw material)
dependencies and important factors affecting the external environment
•Connection to information covered by other Content Elements, such as 14 Value Chain,
strategy, risks and opportunities, and performance (including KPls and financial 16 Business Model,
considerations, like cost containment and revenues). 62 Strategy & Resource Allocation,
72-117 Capitals,
118-132 Business Segment Reviews
Inputs
An integrated report shows how key inputs relate to the capitals on which 14 Value Chain,
the organisation depends, or that provide a source of differentiation for the 16 Business Model,
organisation, to the extent they are material to understanding the robustness 65 Strategy & Resource Allocation - What makes our
and resilience of the business model. business model highly adaptable
Business activities

An integrated report describes key business activities. This can include:

• How the organisation differentiates itself in the market place (e.g., through 16 Business Model - Value Proposition,
product differentiation, market segmentation, delivery channels and 49 Entity Analysis - Key Competencies,
marketing) 65 Strategy and Resource Allocation - What makes
our business model highly adaptable to change

• How the organisation approaches the need to innovate 67 Strategy and Resource Allocation - Emphasis
on development of our intellectual and human
capitals,The role of innovation…capitals
• How the business model has been designed to adapt to change. 65 Strategy & Resource Allocation - What makes our
business model highly adaptable
When material, an integrated report discusses the contribution made to the 27 CEO's Statement,
organisation's long term success by initiatives such as process improvement, Strategy and Resource Allocation:
employee training and relationships management 67 - Emphasis on development of our intellectual
and human capitals
68 - The role of innovation…capitals
71 - Our scope of long term value creation,
96 Human Capital - Talent development,
101 Intellectual Capital - Process re-engineering

Outputs

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An integrated report identifies an organisation's key products and services. 12 Products and Services,
There might be other outputs, such as by-products and waste (including 16 Business Model - Value Proposition (Our
emissions), that need to be discussed within the business model 69 offerings),
disclosure depending on their materiality. Strategy & Resource Allocation - Trade-offs we
73, 94, 100, 103, 106, 116 seek to avoid,
Capitals - Top Trade-offs
Outcomes
An integrated report describes key outcomes, including:

• Both internal outcomes (e.g., employee morale, organisational 14 Value Chain,

reputation, revenue and cash flows) and external outcomes (e.g., customer 72-117 Capitals,
satisfaction, tax payments, brand loyalty, and social and environmental 91 Contribution to the National Economy,
effects) 118-132 Business Segment Reviews
• Both positive outcomes (i.e., those that result in a net increase in the 68 Strategy and Resource Allocation - Key
capitals and thereby create value) and negative outcomes (i.e., those that interdependencies, complexities & trade-offs
result in a net decrease in the capitals and thereby diminish value). between capitals,
73, 94, 100, 103, 106, 116 Capitals - Top Trade-offs
Organisations with multiple business models 16 Business Model,
27 CEO's Statement,
Some organisations employ more than one business model (e.g., when 118-132 Business Segments Reviews
operating in different market segments). This requires a distinct consideration
of each material business model as well as commentary on the extent of
connectivity between the business models (such as the existence of synergistic
benefits).
Note: The integrated report of an organisation with multiple businesses needs
to balance disclosure with need to reduce complexity; however, material
information should not be omitted.
1.5 Performance
An integrated report needs to explain the extent to which the organisation has 27 CEO's Statement,
achieved its strategic objectives for the period and what are its outcomes in 62-132 Management Discussion & Analysis
terms of effects on the capitals
An integrated report should contain qualitative and quantitative information
about performance that may include matters such as:
• Quantitative indicators with respect to targets and risks and opportunities, 52 Statement of Risk Management,
explaining their significance, their implications, and the methods and 64 Strategy and Resource Allocation - Risks and
assumptions used in compiling them. Opportunities,
72 Financial Capital
• The organisation’s effects (both positive and negative) on the capitals, 14 Value Chain
including material effects on capitals up and down the value chain. 68 Strategy and Resource Allocation - Key
interdependencies, complexities & trade-offs
between capitals
72-117 Capitals
• The state of key stakeholder relationships and how the organisation has 67 Strategy and Resource Allocation - Responses to
responded to key stakeholders' legitimate needs and interests. issues raised through stakeholder engagement,
Social & Relationship Capital
105
• The linkages between past and current performance, and between current 27 CEO's Statement,
performance and the organisation's outlook. Strategy & Resource Allocation
62 - Strategic progression of IDLC
63 - Current allocation of assets & bottom-line
composition
71 - Scope of long term value creation,
72 Financial Capital,
119, 121, 123, 128, 130, Business Segment Reviews - Performance
132 indicators, rationale, outlook
KPIs that combine financial measures with other components (e.g., the Strategy & Resource Allocation
ratio of greenhouse gas emissions to sales) or narrative that explains the 68 - Key interdependencies, complexities and
financial implications of significant effects on other capitals and other tradeoffs between capitals
causal relationships (e.g., expected revenue growth resulting from efforts to 69 - Tradeoffs we seek to avoid,
enhance human capital) may be used to demonstrate the connectivity of 72 Financial Capital,
financial performance with performance regarding other capitals. In some 97 Human Capital - Human Resource Accounting,
cases, this may also include monetizing certain effects on the capitals (e.g., 101 Intellectual Capital - Process re-engineering,
carbon emissions and water use). 104 Manufactured Capital - Expenditure trends,
116 Natural Capital - Use of natural resource

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Include instances where regulations have a significant effect on performance 43 Overview & Macroeconomic Highlights
(e.g., a constraint on revenues as a result of regulatory rate setting) or the Macroeconomic Factors & Their Impacts
organisation's non-compliance with laws or regulations may significantly affect 46 - Environmental
its operations. 46 - Legal,
Statement of Risk Management
53 - Performance Metrics
54 - Risk and Our Reponses
1.6 Risks, opportunities and internal controls
An integrated report should explain what are the specific risks and 27 CEO's Statement,
opportunities that affect the organisation's ability to create value over the 51 Statement of Risk Management,
short, medium and long term, and how is the organisation dealing with them 64 Strategy & Resource Allocation - Risk &
and effectiveness of the system of internal controls. Opportunities,
118-132 Business Segments Reviews
This can include identifying:
• The specific source of risks and opportunities, which can be internal, external 51 Statement of Risk Management,
or, commonly, a mix of the two. 64 Strategy & Resource Allocation - Risk &
Opportunities,
118-132 Business Segments Reviews
• The organisation's assessment of the likelihood that the risk or opportunity 52 Statement of Risk Management - Risk Heat Maps
will come to fruition and the magnitude of its effect if it does.
• The specific steps being taken to mitigate or manage key risks (e.g: 51 Statement of Risk Management,
Risk Management Framework, Risk Management review process and 64 Strategy & Resource Allocation - Risk &
reporting structure) or to create value from key opportunities, including the Opportunities,
identification of the associated strategic objectives, strategies, policies, targets 118-132 Business Segments Reviews
and KPls.
• Risk Management Report (Which includes details about risk, root course, 51 Statement of Risk Management
potential impact, repsponse to risk, risk rating).
• Response on the effectiveness of the internal controls and the board's 161 Statement of corporate governance -
responsibility for the disclosures on internal controls to safeguard stakeholder Acknowledgment of Directors’ responsibility in
interest. respect of internal control of IDLC,
185 Report of the Audit Committee - Review of the
activities of the Internal Control and Compliance
Department (ICC)
1.7 Strategy and resource allocation
An integrated report should describe its strategic direction (Where does the 23 Chairman's Statement,
organisation want to go and how does it intend to get there) 26 CEO's Statement,
62 Strategy & Resource Allocation
An integrated report needs to identify:

• The organisation's short, medium and long term strategic objectives 63-64 Strategy & Resource Allocation - Goals

• The strategies it has in place, or intends to implement, to achieve those 23 Chairman's Statement,
strategic objectives 26 CEO's Statement,
65 Strategy & Resource Allocation - Business model
adaptability & change requirements

• How the entity has positioned in the wider market 26 CEO's Statement,
65 Strategy & Resource Allocation - Business model
adaptability & change requirements

• How the long term strategies relate to current business model Strategy & Resource Allocation
62 - Strategic progression of IDLC
63 - Current allocation of assets & bottom-line
composition
65 - Business model adaptability & change
requirements
67 - Capitals that form our competitive advantage
• The resource allocation plans it has to implement its strategy Strategy & Resource Allocation
65 - Business model adaptability & change
requirements
67 - Resource allocation approach
• How it will measure achievements and target outcomes for the short, Strategy & Resource Allocation
medium and long term 63-64 - Goals & Objectives
69 - Measuring the efficacy of our objectives

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This can include describing:

• The linkage between the organisation's strategy and resource allocation 62 Strategy & Resource Allocation
plans, and the information covered by other Content Elements, including how
its strategy and resource allocation plans:
 relate to the organisation's business model, and what changes to that 65 Strategy & Resource Allocation - Business model
business model might be necessary to implement chosen strategies to provide adaptability and change requirements
an understanding of the organisation's ability to adapt to change
 are influenced by/respond to the external environment and the identified 27 CEO's Statement
risks and opportunities affect the capitals, and the risk management 28 - Immediate concerns & responses
arrangements related to those capitals - Responding to the ongoing constraints and
looking forward,
Strategy & Resource Allocation
64-65 - Risks & Opportunities
68-69 - The role of innovation in harnessing the
71 potential of our capitals
- Our scope of long term value creation
• What differentiates the organisation to give it competitive advantage and Strategy & Resource Allocation
enable it to create value, such as: 67 - Capitals that form our competitive advantage
68 - The role of innovation in harnessing the
potential of our capitals
68 - Environmental & social considerations in our
strategy formulation
   the role of innovation

   how the organisation develops and exploits intellectual capital

   the extent to which environmental and social considerations have been

embedded into the organisation's strategy to give it a competitive advantage
•  Key features and findings of stakeholder engagement that were used in 67 Strategy & Resource Allocation
formulating its strategy and resource allocation plans. - Responses to issues raised through stakeholder
engagement
1.8 Outlook
An integrated report should explain what challenges and uncertainties is the 23 Chairman's Statement,
organisation likely to encounter in pursuing its strategy, and what are the 26 CEO's Statement,
potential implications for its business model and future performance 43 Overview and macroeconomic highlight
62 Strategy & Resource Allocation,
72-117 Capitals,
118-132 Business Segment Reviews
An integrated report should highlight anticipated changes over time and
provides information on:
• The organisation's expectations about the external environment the 43 Overview and macroeconomic highlight
organisation is likely to face in the short, medium and long term 118-132 Business Segment Reviews
• How that will affect the organisation

• How the organisation is currently equipped to respond to the critical 27 CEO's Statement,
challenges and uncertainties that are likely to arise 65-66 Strategy and Resource Allocation - Business
model adaptability and change requirements
The discussion of the potential implications, including implications for future
financial performance may include:
• The external environment, and risks and opportunities, with an analysis of 43 Overview & Macroeconomic Highlights,
how these could affect the achievement of strategic objectives 44 Macroeconomic Factors & Their Impacts,
64-65 Strategy & Resource Allocation - Risks &
Opportunities
• The availability, quality and affordability of capitals the organisation 14 Value Chain - Narrative,
uses or affects (e.g., the continued availability of skilled labour or natural 68 Strategy and Resource Allocation - Key
resources), including how key relationships are managed and why they are interdependencies, complexities & trade-offs
important to the organisation’s ability to create value over time between capitals,
73, 94, 100, 103, 106, 116 Capitals - Top trade-offs
Disclosures about an organisation's outlook in an integrated report should 6 About Our Integrated Report
consider the legal or regulatory requirements to which the organisation is
subject.
1.9 Basis of preparation and presentation
An integrated report should answer the question: How does the organisation 6 About Our Integrated Report,
determine what matters to include in the integrated report and how are such 9 Navigating Through This Report,
matters quantified or evaluated? 10 Materiality Determination Process
An integrated report describes its basis of preparation and presentation,
including:

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• A summary of the organisation's materiality determination process 9 Navigating Through This Report,
10 Materiality Determination Process
 Brief description of the process used to identify relevant matters, evaluate 9 Navigating Through This Report,
their importance and narrow them down to material matters 10 Materiality Determination Process
 Identification of the role of those charged with governance and key 6 About Our Integrated Report
personnel in the identification and prioritisation of material matters.
• A description of the reporting boundary and how it has been determined 6 About Our Integrated Report

Eg: Include process used for identifying the reporting boundary,

geographic scope, the entities represented in the report and the nature of
the information provided for each entity
• A summary of the significant frameworks and methods used to quantify or 6 About Our Integrated Report,
evaluate material matters 9 Navigating Through This Report,
195 Directors' Report - Corporate & Financial
Reporting Framework
(e.g., the applicable financial reporting standards used for compiling financial
information, a company-defined formula for measuring customer satisfaction,
or an industry based framework for evaluating risks).
2 Responsibility for an integrated report
An integrated report shouId include a statement from those charged with 6 About Our Integrated Report,
governance that includes: 148 Statement of Corporate Governance - Directors'
Report on Preparation of Financial Statements
and Corporate Governance

• An acknowledgement of their responsibility to ensure the integrity of the

integrated report
• An acknowledgement that they have applied their collective mind to the
preparation and presentation of the integrated report
• Their opinion or conclusion about whether the integrated report is presented
in accordance with the Framework

3 Other Qualitative Characteristics of an Integrated Report

3.1 Conciseness
An integrated report should be concise.

An integrated report needs to include sufficient context to understand the A mapping of the content, highlighting the
organisation’s strategy, governance, performance and prospects without connectivity of this report is provided in:
being burdened with less relevant information. Navigating Through This Report
Eg:
Follows logical structure and includes internal cross-reference as appropriate The structure of the report follows a logical
to limit repetition. sequence, incorporating insights on:
9
Express concepts clearly and in as few words. Our Company
Stewardship
Favours plain language over the use of jargon or highly technical terminology.
Operating Environment & Risk Management
Avoids highly generic disclosures. Management Discussion & Analysis
Governance
3.2 Reliability and completeness Financial Statements
An integrated report should include all material matters, both positive and 62 Strategy and Resource Allocation,
negative, in a balanced way and without material error Statement of corporate governance-
161 Acknowledgment of Directors’ responsibility in
respect of internal control of IDLC

The organisation achieves the reliability and completeness through:

Eg:
• Selection of presentation formats that are not likely to unduly or 6 About Our Integrated Report
inappropriately influence assessments made on the basis of integrated report.
• Giving equal consideration to both increases and decreases in the capitals, 62 Management Discussion & Analysis
both strengths and weaknesses of the organisation, both positive and negative
performance, etc.
• When information includes estimates, this is clearly communicated and the 44 Macroeconomic Factors & Their Impacts
nature limitations of the estimation process are explained.

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