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Annual reports

Discussion in 'Fundamental Analysis' started by abhijitupsc, Sep 23, 2017.

  1. abhijitupsc

    abhijitupsc Contributor

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    Hello everyone..I have heard this many times that if you want to understand a business, read its annual reports. Having gone through two annual reports and being a non finance background student, I don't know which things to focus in Annual reports. Your valuable suggestions would be appreciated.. Thank you.

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    abhijitupsc, Sep 23, 2017
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  2. suhel_b

    suhel_b Member

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    Good topic you brought forward. Even I like to know that Abhijit.

    Shabbir- a request to you if you write article about this too , it will help us as your many articles did and doing great favour to us.
    I still refer and revisit your articles you wrote long time ago.


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    suhel_b, Sep 23, 2017
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  3. nirajshah

    nirajshah Champion

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    Yes it will be and what I have learned is check some of the old annual reports and see what company promised and did they manage to achieve it.

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    nirajshah, Sep 24, 2017
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  4. shabbir

    shabbir Administrator Staff Member

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    Sure added to my list of topics but you don't normally check the annual reports for financial numbers and they are available on many websites but mainly you look at the management commentary about the future outlook and how company is innovating. As an example in Divi's Lab, I checked the annual reports to see how the company is reducing its dependency on the USA and so the impact of USFDA import alert was overdone. https://www.diytechnicalanalysis.com/community/threads/divis-lab-14th-july-2017.2757/

    You have to check those kind of aspects in annual reports but still I will to generalize some aspects of what to look for in them.
     
    shabbir, Sep 24, 2017
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  5. suhel_b

    suhel_b Member

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    suhel_b, Sep 24, 2017
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  6. abhijitupsc

    abhijitupsc Contributor

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    abhijitupsc, Sep 24, 2017
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  7. bhat64

    bhat64 Apprentice

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    Also you need to check in annual reports some more qualitative aspects related party transactions, promoters salaries, management bench strength, did they walk the talk from what they said few years back, csr contributions, loans given by promoters etc


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    bhat64, Sep 26, 2017
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  8. abhijitupsc

    abhijitupsc Contributor

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    abhijitupsc, Sep 26, 2017
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