Annual Report

Annual   Report

An annual report   is a report which is prepare at the end of financial year (1april to 31 march) represent the financial position of business. It represents proceeding of company through its activity.

Annual report gives shareholder and various outside party having interest in business a lot of information about company activity as well as financial performance. It is mandatory for company to represent his annual report to registrar of company .If company is listed in stock exchange ,it is necessary also to report at the time of frequent  intervals.

Contents that should include a company in his annual report:

Annual report include:-

• Ø General corporate information
• Ø Accounting method and policies
• Ø Balance sheet
• Ø Cash flow statement
• Ø Fund flow statement
• Ø Profit and loss account
• Ø Chairman statement
• Ø Director’s  report
• Ø Operating and financial review
• Ø Auditor’s report
• Non-audited information

General corporate information: General corporate information includes the basic information about company like company objective, structure, policies, methods, rules, procedures. It also represents any change or nay new policy created in company.

Accounting methods and policies :- policies are basic guidelines that represent  how you  perform a task. In accounting methods and Policies Company describe methods and principals used by company for preparation of financial statement. Company used which method for calculating depreciation, how company calculates stock value etc.

Balance sheet:  Balance sheet is financial statement which gives information about company’s assets and liabilities and capital at particular point of time. it also shows that availability of fund and fund utilizes by company.

Cash flow and fund flow statement: This statement shows status of cash in company. Cash flow and inflow cash from company’s activity and also give information about liquidity of a company.

Fund flow statement gives information about funds available in company other than cash.

Chairman statement: chairman statement represent overview of whole year. It also represent past year performance and compare it with current year. Strategy , financial performance and future prospects also represent in this statement.

Director’s report: director’s report gives information about company activity. It gives description of principal activity and information of sale, purchase, valuation of assets. Recommended dividend, employee statistics and name of director and their interest.

Operating and financial review: In operating view information about risk and certainties, new product development, future investment, shareholder returns. In financial review current cash position, source of funding, capital structure, taxation.

Auditors report: Auditors are person who audit the books of accounts. These are basically CA whom are company appointed. They certify that account are made as per requirement of company act. They also represent a brief report to confirm that accounts gives a true and fair information.

Non- audited information represents narrative items, statement of corporate governance, director’s responsibility, shareholder information.

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