The Institute of Chartered Accountants of India (ICAI) releases Technical Guide on Disclosure and Reporting of Key Performance Indicators (KPIs) in Offer Documents The Technical Guide on Disclosure and Reporting of Key Performance Indicators (KPIs) in Offer Documents would have been released by the Institute of Chartered Accountants of India (ICAI).
The below-mentioned are the contents of the technical guide:
Technical guide Applicability
The revisions to the ICDR statute concern the disclosure of KPIs
Disclosure / Relevance of KPIs
- Meaning of KPIs
- Purpose of KPIs
- Disclosure of KPIs in Offer Documents
- Periods to be covered for disclosure of KPIs in the Offer Documents
- KPIs to be presented based on a standalone or consolidated basis
- KPIs on proforma financial data
Statute and additional aspects
Roles and responsibilities
Who are qualified to generate the reports
Signing the report
Misstatement in Prospectus obligation
Rights and powers
The individual to whom the report must be addressed
The guidance note would secure the mentioned appendices-
Illustrative format of independent auditor’s or practitioner’s report on Key Performance Indicators
SEBI notification dated November 21, 2022.
The major aim of the technical guide is to provide direction to the practitioners on the disclosures and reporting needs to be concerned with the Key Performance Indicators (KPIs) in the “Basis for Issue Price” section of offer documents for Initial Public Offers (IPOs) in India.
The guide is been applicable to issuer companies which requires to disclose the KPIs in their offer documents in compliance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (ICDR Regulations). The technical guide would be subjected to be applied to the IPOs as specified by the ICDR regulations and would be directed to help in the sale of securities to forthcoming Indian investors. Under Rule 144A or Regulation S of the U.S. Securities Act of 1933, the securities which get sold outside India along with those sold, as revised would not count by the same guide.
The technical guide should be utilised in conjunction with the “Guidance Note on Reports or Certificates for Special Purposes (Revised 2016)” which has been issued via ICAI, furnishes the guidance on various elements of these engagements along with the engagement acceptance procedures, planning, materiality, written representations, and others. The Technical Guide becomes effective from the issuance date.
the official announcement for ICAI: https://resource.cdn.icai.org/73533aasb59362.pdf