The report is prepared and distributed by the management to its shareholders, promoters, statutory bodies, and to the public who are interested in the company.

Annual reports are usually in the form of a booklet containing the chairman’s message, plans, and prospects for the future. It is presented at the annual general meeting of the company.

The report is for a financial year which is twelve months and is usually from the 1st of April to 31st March in India. In many European countries, the financial year is from 1st of January to 31st of December.

An annual report contains

· A letter to the shareholders from the CEO of the company.

· List of important persons such as board members, auditors, company secretary, etc. along with their contact numbers.

· Financial reports like balance sheet, statement of income with supporting schedules.

· A report on the operation of the company in general

· Auditor’s report

· The report will also contain the details of the shareholding pattern of the company,

· Historical share prices

· Important milestones and achievements of the company. has made.

The investor has to keep in mind that an annual report may highlight only the positive side of the business. The chairman’s report would indirectly point to the negative aspects such as missed targets etc.

It is always better to read the annual report with the previous one and as it will help the investor to get a fair idea about the missed targets during the year.

Although it would require a bit of skill and patience to fully understand an annual report, it will be extremely beneficial for the investor to study these reports and get better insights into the operations of the company.