We recommend reading this chapter on Varsity to learn more and understand the concepts in-depth.


Key takeaways from this chapter

  1. The Annual Report (AR) of a company is an official communication from the company to its investors and other stakeholders.
  2. The AR is the best source to get information about the company; hence AR should be the default choice for the investor to source company-related information.
  3. The AR contains many sections, with each section highlighting a certain aspect of the business.
  4. The AR is also the best source to get information related to the qualitative aspects of the company.
  5. The management discussion and analysis is one of the most important sections in the AR. It has the management’s perspective on the country’s overall economy, their outlook on the industry they operate in for the year gone by (what went right and what went wrong), and what they foresee for the year ahead.
  6. The AR contains three financial statements – Profit & Loss Statement, Balance Sheet, and Cash Flow statement.
  7. The standalone statement contains the financial numbers of only the company into consideration. However, the consolidated numbers contain the company and its subsidiaries financial numbers.

19 comments

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  1. Krishna says:

    Thanks sir

  2. RAHUL KUMAR says:

    Sir, I am starting to learn about stock market. Right now I want to restrict myself to investing only, that too on equities only. So, which modules should I read from the Varsity for this purpose??

  3. Kundan Kumar says:

    HELLO Karthik Sir, on the last of video KEYNOTES, KEY TAKEAWAYS GET HIDDEN FROM ICON OF ZERODHA VARSITY. KINDLY ADJUST THE ZERODHA VARSITY ICON IN ANY CORNER SO THAT KEY NOTES WILL BE VISIBLE. Thanks You for your informative video

  4. Varsha says:

    Thank you sir for such a short video with clear information.

  5. Susheela Angajala says:

    Sir
    I am a new investor and opened zerodha account recently. How to invest in sbi small cap Or parag parik flexicap funds through coin app of zerodha. Pl mail me.
    Thank you for video on balance sheet reading.

    • Karthik Rangappa says:

      Susheela, as far as I know, PPFF fund is closed for new investment. For the other funds, please search for it in coin app and click on buy. Maybe you can call the customer desk to help you with the exact steps.

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