Post by Equity Section on Aug 23, 2011 22:41:53 GMT 5.5
Any Company who's listed on the Stock Exchanges of India has to submit an Annual Report with the concerned exchanges as well as deliver the same to its shareholders. Also, they have to maintain a website and place a copy there. Apart from that, a Company has to give Quarterly Statements in a similar manner.
First, we'll start with Annual Report. An Annual Report is a report where a Company tells about its achievements, its vision and its future targets. An Annual Report normally consists of :
1. Chairman's Letter to Shareholders : Here, the Chairman discusses about the achievements of the Company in respect to the current prevailing economic conditions.
2. Management Discussion & Analysis : In this section, the Management of the Company discusses global economic conditions, the current domestic policies affecting the business, their vision and future targets. Both Chairman's letter and Management Discussion & Analysis are important in the sense that they set up the tone for the future performance of the Company.
3. Financial Statements : This section covers the Balance Sheet, Profit & loss and Cash Flow Statements. It also includes the Schedules. The Schedules give a detailed account of the components of Balance Sheet and Profit & Loss Statements.
4. Notes to Accounts : This is important in the sense that they can hold some significant information regarding the Company. It can also tell us about certain remunerations being offered. Most importantly, it contains particulars in respect of goods manufactured / sold etc.
Overall, an Annual Report is a repertoire of information regarding a Company and its business.
Now, about Quarterly Results, these reports are like the Profit & Loss Statement in the Annual Report. They are the report-card of a Company's performance for each quarter. Careful scrutiny of quarterly reports can tell about the seasonal issues involved with a Company, like increased Sales during festive seasons or certain increase of Sales during winter/summers. Quarterly Results must be compared on an yearly basis and also on a quarterly basis.
Apart from these, a Company communicates various informations to the Stock Exchanges as well as SEBI regarding certain Board of Directors decisions, Dividend Pay-outs, Capital raising etc. All such informations must be tracked and carefully analysed. These informations can be found with stock exchanges, SEBI and on the Company's website.
First, we'll start with Annual Report. An Annual Report is a report where a Company tells about its achievements, its vision and its future targets. An Annual Report normally consists of :
1. Chairman's Letter to Shareholders : Here, the Chairman discusses about the achievements of the Company in respect to the current prevailing economic conditions.
2. Management Discussion & Analysis : In this section, the Management of the Company discusses global economic conditions, the current domestic policies affecting the business, their vision and future targets. Both Chairman's letter and Management Discussion & Analysis are important in the sense that they set up the tone for the future performance of the Company.
3. Financial Statements : This section covers the Balance Sheet, Profit & loss and Cash Flow Statements. It also includes the Schedules. The Schedules give a detailed account of the components of Balance Sheet and Profit & Loss Statements.
4. Notes to Accounts : This is important in the sense that they can hold some significant information regarding the Company. It can also tell us about certain remunerations being offered. Most importantly, it contains particulars in respect of goods manufactured / sold etc.
Overall, an Annual Report is a repertoire of information regarding a Company and its business.
Now, about Quarterly Results, these reports are like the Profit & Loss Statement in the Annual Report. They are the report-card of a Company's performance for each quarter. Careful scrutiny of quarterly reports can tell about the seasonal issues involved with a Company, like increased Sales during festive seasons or certain increase of Sales during winter/summers. Quarterly Results must be compared on an yearly basis and also on a quarterly basis.
Apart from these, a Company communicates various informations to the Stock Exchanges as well as SEBI regarding certain Board of Directors decisions, Dividend Pay-outs, Capital raising etc. All such informations must be tracked and carefully analysed. These informations can be found with stock exchanges, SEBI and on the Company's website.
