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Companies Annual Report

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WHAT WILL YOU BE LEARNING?

Regulatory and disclosure requirements

OBJECTIVES
Financial Statements Click to edit Master subtitle style

Major reports: Chairmans Directors Audit

Policies & Notes to the Account

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Annual Report: What is it?

A formal annual publication about companys operations & financial conditions

Annual Report
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To inform shareholders about the activities, performance through various reports 5/17/12

Annual Report: What is inside it?

Corporate structure Management Team Annual Chairmans Report report CEOs report Profile of BOD to edit Master subtitle style Click Auditors report AC Report Corporate Governance Report To inform shareholders about the Statement on activities, performance through various Internal reports Control 5/17/12 Notice of AGM A formal annual publication about companys operations & financial conditions

Find out.

Directors Report Corporate Governan ce Statemen t

Independe nt Auditors Report

What is about?

Click to edit Master subtitle style Audit Committe es Report

Chairman s Report

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Internal Control Statemen t

Financial Statements..

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Statutory & Regulatory Requirements..

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Malaysian Financial Reporting Standards (MFRS)

Full convergence with the International Financial Reporting Standards (IFRS) effective 1 Jan 2012

Malaysian Financial Reporting Standards Click to edit Master subtitle style (MFRS)

IFRS are issued by International Accounting Standards Board (IASB) 5/17/12

IASB issues IFRS to be used world-wide common set of understandable standards

MASB issues MFRS to be used in Malaysia consistent with IFRS (full convergence) level playing field with international setups

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Tips for Reading an Annual Report..

There are nine identifiable sections in most Annual Reports. Not all reports will have all the sections or the same type and level of information. Here are the sections and what to look for in each: Chairman of the Board Letter Should cover changing conditions, goals to achieve or achieved or missed, actions taken or not to be taken. Is it well written? Reading between the lines - what is being apologized for? Sales and Marketing Should cover what the company sells, how, where and when. Is it clear where the company makes most of its money presently? Is it understandable? Is the scope of lines, divisions and operations clear? 10 Year Summary of Financial Figures Is this included? What's the growth of profits and operating income? Management Discussion and Analysis Is there a clear discussion of significant financial trends over past two years? How candid and accurate is it? 5/17/12

CPA Opinion Letter Written by the CPA firm as an opinion on the company's financials. The important thing to look for here is what the qualifications are Financial Statements Check sales, profits, R&D spending, inventory and debt levels over time. Read the footnotes to ferret out other information Subsidiaries, Brands and Addresses Where is the headquarters? Is it clear what lines, brandnames the company has and what the overseas distribution network is? List of Directors and Officers How many outside vs. inside directors? Are the directors well known and respected? Are there less than 5 or more than 12 directors? Stock Price History General trend of price over time: up or down? Which exchange is company traded/listed? Stock symbol? Bonus/dividend history? Source: http://www.zpub.com/sf/arl/arl-read.html 5/17/12

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