The common annual confidential report system is a performance evaluation process for senior officers in the three services of the Indian Armed Forces. The process involves several steps:

• Superior officers assess and evaluate the performance of the officers under their command throughout the year, based on various parameters such as leadership, professionalism, and integrity.
• These observations and assessments are recorded in individual confidential reports, which are then compiled by the reviewing officer at the end of the year.
• The reviewing officer writes a comprehensive report on the officer's overall performance and potential, along with specific recommendations for future assignments and training opportunities.
• The report is then forwarded to the higher authorities, including the Military Secretary's Branch, for final evaluation and approval.
• The completed report is ultimately used as a basis for future promotions, assignments, and other career-related decisions.

The system is designed to ensure transparency and objectivity in evaluating the performance of senior officers, while also encouraging professional development and career advancement within the Armed Forces.