Do you call yourself an investor when you’ve never read an annual report? Annual reports are sent to shareholders at the end of every financial year and published on the company website.It summarizes the performance of the sector and the company.It is a ready reckoner of products, market share, and financial situation of a company.Charlie Munger says," You must value the business in order to value the stock".Annual reports help us to obtain clarity and insight about the business and it's competitors. Each annual report can be dismantled into four pieces- the director’s report, the auditor’s report, financial results and account notes. The director’s report describes the current economy and the sector, spreading light on the firm’s activities, challenges faced, opportunities to be tapped and future plans. Checking the information for flaws and comparing with other firms in the sector is the job of the investor. Here,
Market index NIFTY failed to touch the all time high even after the recovery from March 2018 bottom.We have seen a consolidation phase between 10500 and 10800 in last two months and volume spurt was not happened.Means,buyers are not active above 10800 level.Instead,profit booking is still going on.Foreign institutions are continuing net selling this year,though domestic institutions accumulate at discount situations. Like any previous election year,2018 is also uncertain for general index, although IT secor made a strong recovery recently.A High PE of 26.5 is a big concern for foreign institutional investors,as they search undervalued opportunities across the globe.US Market also trades at an over bought phase;but their dividend yield looks better than India.Rising non performing assets in banking sector affected the market sentiment badly.Major Public sector companies corrected more than 30% and still the bottom fishing not started. We have seen