Annual report - what to look for

The annual report is the most comprehensive document a listed company publishes - usually 200-400 pages, filed once a year, 2-4 months after the fiscal year ends. Unlike quarterly results which are just numbers, the annual report combines numbers + narrative + governance disclosures.

What's inside

Most Indian annual reports follow a standard structure:

1. Chairman's letter / Management's discussion - narrative of the year, strategy ahead. Heavily marketed; treat as marketing material but read it. 2. Business review - segment-wise / geography-wise commentary. Often the most useful narrative for understanding the business. 3. Board of Directors - names, qualifications, attendance at board meetings, other directorships. 4. Director's report - operations review, dividend recommendation, related-party transaction summary. 5. Corporate governance report - committee composition, board independence, RPT framework. Tells you if the company is well-governed. 6. Independent auditor's report - the auditor's opinion. Look for "qualifications", "emphasis of matter", "key audit matters". Any of these = take seriously. 7. Financial statements - standalone + consolidated, with all schedules. 8. Notes to accounts - the most important section for due diligence. Hidden detail lives here.