Global Techno Systems Limited is among the top 1000 listed companies in the country. The company is preparing and presenting its Integrated Report…

CA Final · Advanced Auditing, Assurance and Professional Ethics · PYQS · January 2026
Global Techno Systems Limited is among the top 1000 listed companies in the country. The company is preparing and presenting its Integrated Report in line with the internationally recognized Integrated Reporting Framework. The company continues to align its BRSR disclosures with its Integrated Report to demonstrate how it creates value over the short, medium, and long term through effective use of the six capitals. Following further information is provided in respect of the above company: (i) The company has implemented a structured leadership development programme for its employees across all divisions. This initiative focuses on enhancing professional skills, innovation capabilities, and ethical decision-making, resulting in improved employee engagement and alignment with the organization's long-term strategy. (ii) The company has commissioned a new, fully automated production line equipped with modern machinery and smart control systems. This has significantly improved production efficiency, reduced wastage, and enhanced product quality, leading to overall improvement in operational performance. Discussing the above information, identify and explain which of the capitals of Integrated Reporting are being referred to at (i) and (ii) respectively.

Suggested Answer and Working Notes:

Capitals of Integrated Reporting (i) The capital referred to here is Human Capital . People's skills and experience, their capacity, and motivations to innovate, including their: Alignment with and support of the organization's governance framework & ethical values such as its recognition of human rights.Ability to understand and implement an organization's strategy.Loyalties and motivations for improving processes, goods, and services, including their ability to lead and to collaborate. (ii) The capital referred to here is Manufactured Capital .Seen as human-created, production-oriented equipment and tools.Available to the organization for use in the production of goods or the provision of services, including buildings, equipment, infrastructure (such as roads, ports, bridges & waste, and water treatment plants).

Topics: Emerging Areas: Sustainable Development Goals (SDG) & Environment, Social and Governance (ESG) Assurance

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