Your Company’s Annual Report

 The annual report is probably  the most viewed company publication. It is the most comprehensive means of communication between a company and its shareholders. It is a report that each company must provide to each of its shareholders at the end of the financial year.

As a shareholder ie part owner of a company, you need to know its performance over the past financial year and the management’s view on the same. You also need to know what are the company’s future plans and strategies and what does the management intends to do to attain targets.And your company’s annual report is your means to do so.

Following are the Key Constituents of Your Company’s Annual Report

Director’s report: The director’s report comprises the events that take place in the reporting period. This includes a summary of financials, analysis of operational performance, details of new ventures and business, performance of subsidiaries, details of change in share capital, and details of dividends. In short, you the shareholder can get a gist of the fiscal year from this section.

Management discussion and analysis (MD&A): More often than not, the MD&A starts off with the management giving its view on the economy. It is then followed by a perspective on the sector in which the company is present. Any major changes like inflation, government policies, competition, tax structures, amongst others are highlighted and discussed in this report. It also includes the business strategy the management intends to follow. Details regarding different segments are provided in this section. The company also gives a brief SWOT (strength, weakness, opportunity, and threat) analysis and business outlook for the coming fiscal. Read more of this post

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