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4. What type of annual report should a company produce and why?
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Answer #1

A company should produce an annual report that contains at least the following elements :

  • General description of the business and the industry in which the company operates
  • Audited financial statements - income statement, balance sheet, cash flow statement, and notes to financials.
  • Auditors report, Board report and Bankers report
  • Management Discussion and Analsis
  • Shareholding pattern
  • Other important and pertinent information to be disclosed to shareholders

It should produce this type of annual report because most jurisdictions require this basic information to be disclosed to shareholders.

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