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An annual report is a comprehensive yearly report of a company. Published at the end of the financial year, the report details the companyu2019s activities during the year. These reports are sent out to shareholders of the company and other interested parties.<br>It is one of the key tools of fundamental analysis(https://www.edelweiss.in/investology/fundamental-analysis-218cf3).<br>This presentation will give you a clear idea about Annual Reports.
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Introduction An annual report is a comprehensive yearly report of a company. Published at the end of the financial year, the report details the company’s activities during the year. These reports are sent out to shareholders of the company and other interested parties. It is one of the key tools of fundamental analysis.
Sections in an annual report Letter from the Chairman: Annual reports generally start out with a customary letter from the chairman of the company. This letter provides an overview of the company’s development in the past year. Performance Highlights: This section of the report offers you a snapshot of the company’s financial performance in the past year. The information in this section is generally in the form of graphs or tables. Ten-year Summary: As the title suggests, this section provides a bird’s eye view of the company’s progress in the past ten years. This data can offer insight regarding the growth pattern of the company. Financial Statements: This is probably the most important segment of the entire report. Most investors go through the numbers in these statements to understand how the company performed financially during the past year. Management discussion and analysis: This section gives an overview of important aspects such as the economic activity in the country and the overall health of the industry. In other words, you get insight regarding the macro-economic trends and business sentiments.
conclusion Annual reports are great tools for investors when it comes to decision-making. Read the report carefully (and between the lines) to understand if the company has the potential to grow.