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Annual Report Template
Annual Report Template
Annual Report Template
For Information
Contents
1. About annual report
What is an annual report?
Why an annual report is required?
Disclosure Requirements
2. Content & inferences in annual report
Company & business overview
Statutory Reports
Key performance indicators
Management discussion & analysis (MD&A)
Financial Statements
3. Users of annual report and it’s utility
Target audience
August, 2017 2
What is an annual report?
Annual
Publication
Ownership
August, 2017
Why annual report is required?
Public
Annual Report MUST AGM Relations Mandate
Opportunity by regulators
Management
Discussion & Financial
Why ? Statements
Future Outlook
Corporate Disclosure/
ENRON(B)
governance Transparency
August, 2017 4 4
Disclosure requirements
August, 2017 5
Contents
1. About annual report
What is an annual report?
Why an annual report is required?
Disclosure Requirements
2. Content & inferences in annual report
Company & business overview
Statutory Reports
Key performance indicators
Management discussion & analysis (MD&A)
Financial Statements
3. Users of annual report
Target audience
August, 2017 6
1 2 2 3 4 5
August, 2017 7
1
Company Introduction
August, 2017 8
1
Product portfolio
• Presents product line and areas of operations.
• Helps understand the area of operations and associated risks.
• Helps understand profitability & expected growth in the industry
company operates in.
August, 2017
1
August, 2017 10
1
Risks & Opportunities
Risk Opportunities
Study on Key risks such as economic, industry & Mapping the future opportunities by
Technological Changes and their impacts on Capitals, Foreseeing the growth avenues and developing
business growth and financials, ways adopted to strategies for the expansion across the product
mitigate these risks. & business segments.
August, 2017 11
Highlights for the financial year
1
August, 2017 12
2
Notice of AGM
• Agenda is provided as
ordinary / special business
• Ordinary business:
Placement of audited
financial statements.
Appointment of director
by rotation
Appointment of statutory
auditor.
• Special business:
Appointment of
directors
Remuneration of
directors
Further public offer.
Invite for subscription to
Non- convertible
debentures
Etc…
August, 2017 13
2
Auditor’s Report
• Addressed to members of
company
• Management’s
responsibility to prepare
financial statements that
give true & fair view.
• Auditor’s responsibility on
compliance with accounting
& auditing standards and to
obtain adequate audit
evidence for expressing an
opinion.
August, 2017 14
Corporate Governance Report
2
• Information on shareholdings
and Committees to ensure the
proper functioning within the
company.
• Remuneration of Directors
August, 2017 15
2
Corporate Governance- Committees
August, 2017 16
2
Corporate information & governance
• Information on company
Chairman with Board of
Directors, Company
secretary and Auditors.
• Information on size of
board of directors &
independent directors
on board ensures
corporate governance.
• An experienced &
independent board
ensures investor
confidence.
August, 2017 17
2
Corporate Social Responsibility (CSR)
• Section 135 of Companies Act 2013 requires companies for expenditure in CSR activities.
• As a requirement it is mandatory to publish CSR activities undertaken during the year.
• An annual report on CSR activities is to be submitted by Board to the members.
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Board’s Report
2
• Financial details:
Paid up capital
Turnover
Profit after tax
CSR spending
August, 2017
Financial Statements- Income Statement
3
August, 2017 22
Key Performance Indicators (KPI’s) - Example
Financial KPI’s Strategic KPI’s
Depicting the operating profitability, net-profitability, Region & Segment wise Sales and respective
Debts and Cash Earnings expenditures
August, 2017 23
Performance Indicators
Income Statement/Balance Sheet/
Performance Indicators
Cash Flow Statement
EbIT
Contribution Margin Sales Revenue
-Variable Costs
÷Sales - (WACC before
÷Net Assets
-Research & Development (R&D) Costs Revenue Tax * Net Assets)
-Overhead Costs
-Depreciation =Return on = Value Added = Return on Net
Sales (RoS) (VA) before Tax Assets (RoNA)
Fixed Costs
-Current Expenses - Tax on EbIT
+Δ Provisions/Liabilities
- Tax on EbIT
Others unless +Non-Cash Expenses (e.g.
Cash Flow after
already Depreciation)
- Non-Cash Income (Equity Result) Tax
included above
÷(1+WACC a. Tax)
= Free Cash Flow
Net Present Value
(NPV) after Tax
August, 2017 24
4
Balance Sheet - Assets
• Summary of financial
health
August, 2017 25
4
Balance Sheet - Liabilities
• Summary of Shareholder’s
fund – Equity sh. Cap. ,
Res.& Surplus .
August, 2017 26
5
Notes to Financial Statements
Non Financial Information
Financial Information
August, 2017 27
6
Cash Flow Statement – Operating Activities
August, 2017 28
6
Cash Flow Statement – Investing Activities
• Changes in long term
assets .
August, 2017 29
6
Cash Flow Statement – Financing Activities
• Cash Earnings.
• Helps in financing
decisions.
August, 2017 30
Financial Statements- Statement of changes in Equity
• Details the change in owners' equity over an
accounting period.
August, 2017 31
Cash Conversion Cycle
[No. of days]
102 89
88 86 Cash Conversion Cycle
CCC • number of days it takes a
company to
generate revenues with assets.
=
45 Inventory Days
32 30 32 • number of days it takes to
DIO
sell an entire inventory
+
73 72 73 81
Receivables Days
DSO • number of days needed to
collect on sales, or accounts
receivable
- 23
16 16 17
DPO Payable Days
• company's payment of its
own bills, or accounts
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar payable for material
purchased.
DIO = Inventory Days, DSO = Receivable Days, DPO = Payable Days
Numbers are representational only
August, 2017 32
Contents
August, 2017 33
Target Audience
Customer
Financial
Shareholders Analyst
Community Peers
Target
Audience
Clients Employees
Suppliers &
Creditors
Regulatory
Bodies
August, 2017 34
THANK YOU
August, 2017 35
Backup
August, 2017 36
Business model
August, 2017 37