Purpose of Annual Financial Report: Annual General Meeting of a Company
What Is An Annual Report
Every year there is a report generated that resembles a lean notebook or book of sorts. It is filled with pages of numbers and data that related to the company and the position of the business. These reports are useful for not only the owners of the business but also for the share holders to understand how good or bad the company is faring and if their money is in safe hands or not.
An annual report is basically an annual publication that is mandatory for the public corporations to provide to their shareholders. It describes the operations, business, services offered and financial conditions as on date. The first few pages of the report contain an extensive amount of information about the company and those who are responsible for its operations. It also includes images, statistics and other data relevant to the same. The annual report is a comprehensive report reflecting a company’s activities for a period of time.
Purpose Of Annual Report and Annual general Meeting ( EGM’s / AGM)
By going through the report, the share holders will learn about the business position, the profit or loss made and the value of the shares held by them. It enables them take decisions based on whether to continue to hold stocks of the company or sell them and pull out when the going is good.
Another activity that most companies need to do every year is hold an annual general meeting or conference. The meeting will include the Board of directors and few key shareholders as well. It is again mandatory for the company to hold these meetings every year so the people involved in the business are aware of the business and how it is faring. Depending on the financial year of the country, the meeting is held once during the period. Following the meeting, a report is generated shared with the shareholders and others who have a say in the business.