ANNUAL REPORT

Presented By: Nikhil Pathak Pooja Tomar Prachi Mundra Sonal Pandey Vivek Surana

What is an Annual report?

An annual report is a statement prepared by a publicly

traded company and distributed to employees, customers, shareholders, and the general community. Individuals with assets tied up in the company can also use the annual report to determine the security of the investment A more detailed copy of an annual report, called a 10K, is filed with the United States Securities and Exchange Commission (SEC), which has required companies to issue an annual report since 1934.

 A publicly held company may also issue a much more

limited version of an annual report, which is known as a "wrap report." A wrap report is a Form 10-K with an annual report cover wrapped around it. Annual report is an audited document, thus the investor trusts the numbers provided in the Report.

Contents of annual report:

Chairperson's report: Chairpersons report consists that the organization is fulfilling its intended purpose. This report can coincide with annual fiscal reports or even be monthly, if desired. It could even be written only when a significant change has occurred within the group. CEO's report: A CEO's report typically provides factual information about strategies, results, and challenges. It is not merely descriptive. It conveys top management's perspective - what the facts and circumstances mean and why they are significant to shareholders. Mission statement: is a brief description of a company's fundamental purpose. A mission statement answers the question, "Why do we exist?" Auditors report on corporate governance.

Statement of directors' responsibilities.

Other information deemed relevant to stakeholders may be included, such as a report on operations for manufacturing firms or corporate social responsibility reports for companies with environmentally or socially sensitive operations.

Contd statements including: as well as financial

Auditor's report on the financial statements.

Balance sheet- Balance Sheet is a financial statement that

summarizes a companys assets, liabilities and shareholders equity at a specific point of time.

Statement of retained earnings: The statement of retained

earnings is prepared in accordance with generally accepted accounting principles (GAAP). The statement of retained earnings reconciles the beginning and ending retained earnings for the period, using information such as net income from the other financial statements. that the company incurred or earned during a particular year.

Income statement: It lists all of the revenues and expenses

Contd..
Cash flow statement It is to be prepared in a manner that it shows cash flows

from business transactions during a period.

Notes to the financial statements: Notes to the financial statements report the

details and additional information that are left out of the main reporting documents, such as the balance sheet and income statement. This is done mainly for the sake of clarity because these notes can be quite long.
Accounting Policies: Principles, rules and procedures selected, and

consistently followed, by the management of an organization (the accounting entity) in preparing and reporting the financial statements. Accounting policies deal specifically with matters such as consolidation of accounts, depreciation methods, goodwill, inventory pricing, and research and development costs. Accounting policies must be disclosed in the annual financial statements.

Why Annual Report is important??

One wants to know how well the company is doing , how

well it is upcoming changes projected for the next year, and about the management staff of the company. money than it is spending. the coming year. decisions.

One want to find out whether the company is making more One want to get an idea of managements strategic plan for Shareholders can use the annual report to make important

What is a Director Report? Why is it important?

It is obligatory on the part of the directors to make

out and attach to every balance sheet laid before company in general meeting, a report known as directors report.
The report is intended to report, to all interested stakeholders, the directors' explanations and

interpretations of the profit/loss, the state of affairs of the group and any other matters which may be material for the stakeholders' attention.

Contents of Directors Report.

A description of the principal activities of the company.
A fair review of the current and future prospects of the

business. Information on the sale, purchase or valuation of assets.

Recommended dividends. Employee statistics. Names of directors and their interests.

The Directors are pleased to present the 37th Annual Report and the audited accounts for the financial year ended March 31, 2011. Financial Results The financial performance of the Company, for the year ended March 31, 2011 is summarized below:

2010-2011 Rs. (crores)

PBDIT Less: Interest 41,177.44 2,327.62 16,241.33 Depreciation
Less: Transfer from revaluation reserve

$ mn*
9,234 522 -------3,051 5,661 969

2009-2010 Rs.(crores)
33,041.18 1,997.21 13,477.01 10,496.53 20,547.44 3,111.77

$ mn*
7,359 445 --------2,338 4,576 693

13,607.58 25,242.24 4,320.44

PBT
Less: Provision for current taxation

Provision for deferred tax PAT

635.50

143

1,200.00

267

20,286.30

4,549 1,114

16,235.67 5,384.19

3,616 1,199

Add: Balance in 4,999.45 profit & loss a/c Amount available for appropriation APPROPRIATI ON: General Reserve Debenture redemption reserve
Dividend on equity share

25,285.75

5,663

21,619.86

4,815

16,000.00 ---

3,588 ---

14,000.00 189.50

3,118 42

2,384.99

535

2,084.67

464

Tax on dividend

386.90

87

346.24

77

Balance carried 6,513.86 to balance sheet 25,285.75

1,453

4,999.45

1,114

5,663

21,619.86

4,815

* 1 $ = Rs. 44.595 Exchange Rate as on March 31, 2011 (1 $ = Rs. 44.90 as on March 31, 2010)

 Result of Operation. Dividend. Credit Rating. Managements Discussion and Analysis Report.

Why is Auditor appointed? What is an Auditors report?

Auditors are appointed to certify whether the financial statements reflects a true and fair view of an entity or not. Auditors provide an independent opinion. The auditors report is a means by which the auditor communicates the findings of his examination to the readers of financial statements viz.. Shareholders, creditors, financial institutions and all others who have a stake in the company or wish to acquire a stake with the company.

Auditors report could be..

Unqualified report
Qualified report Adverse report Disclaimer of opinion

Contents of Auditors Report

Title.
Proper Disclosure of Client name. Proper addressing of the report. Identification of Financial Statement.

 Auditor's Report (Reliance Industries) Year End : Mar '11

1. We have audited the attached Balance Sheet of RELIANCE

INDUSTRIES LIMITED as at March 31, 2011, the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companies management. Our responsibility is to express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the Auditing Standards

generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

 3. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said.

4. Further to our comments in the Annexure deferred to in paragraph a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

 b) In our opinion, proper books of account, as required

by law, have been kept by the Company, so far as appears from our examination of those books;

c) The Balance Sheet, Profit and Loss Account and Cash

Flow Statement dealt with by this report are in agreement with the books of account;

 d) In our opinion, the Balance Sheet, Profit and Loss

Account and Cash Flow Statement dealt with by this report are in compliance with the Accounting Standards referred to in subsection (3C) of Section 211 of the Companies Act, 1956.

e) On the basis of written representations received from the Directors as on March 31, 2011 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on March 31, 2011 from being appointed as a director in terms of clause (g) of sub section (1) of Section 274 of the companies Act, 1956;

 f) In our opinion and to the best of our information

and according to the explanations given to us, the said accounts read together with the Significant Accounting Policies and notes thereon give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(i) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2011; (ii) In the case of the Profit and Loss Account, of the profit for the year ended on that date; (iii) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

References:
http://www.moneycontrol.com/annual-

report/relianceindustries/directors-report/RI Wikipedia/annual-report/definition Book: Auditors Report & Directors Report R.K. Agarwal, Hind Law Publishers.