-


*AAKASHAYA PATRA SEVEN STAR SMART EDUCATION SERIES PART – 47 :* 31.05.2020
Financial Statements of a Company & their Notes
Most Important Part of Company's Annual Report

This is probably the most important segment of the entire report. Most investors go through the numbers in these statements to understand how the company performed financially during the past year.

There are four statements that a company presents in the annual report:
1. Balance Sheet of the Company
2. Profit & Loss Account of the Company
3. Cash Flow Statement
4. Statement of Changes in Equity

Notes to Financial Statements :

In the financial statements you just find numbers but how the company has arrived at those numbers can be understood by reading the Notes to the Financial Statements section of the Annual Report.

Notes to the financial statements thus report the details and additional information that are left out of the main parts of financial statements like the Balance Sheet, Profit & Loss Account and Cash Flow Statement. This is done mainly for the sake of clarity because these notes can be quite
long, and if they were included in the main text of the above mentioned financial statements then they would cloud the data reported in them. Most people avoid reading notes section as these notes can be quite long. But the information provided in this section is very important and useful for fundamental analysis.These notes contain important information on various things like - accounting methodologies used for recording and reporting transactions; detailed information about sales, manufacturing costs,administration costs, interest and other income and expenses; irregularities such as one-time charges or one-time incomes and cause of it; details of outstanding liabilities, etc. Intelligent and experienced investors can identify red flags (warning or an indicator of any potential problem) in a company by reading these notes carefully and comparing / analyzing them
with previous year's values.

FOR MORE SUCH TYPE OF EDUCATION JOINT OUR ONLINE SERIES AND BATCHES AND BE A PRO TRADER CONTACT ON 7028 421 786.

Comments

Post a Comment

Popular posts from this blog

AAKASHAYA PATRA SEVEN STAR SMART EDUCATION SERIES PART – 61 : 10.10.2020

-
Image
                           Financial Ratios- Liquidity Ratio As the name indicates, these financial ratios help us to evaluate the ability of the management to use its assets and manage its liabilities effectively. Commonly used Management Efficiency Ratios include –   1. Fixed Asset Turnover Ratio 2. Working Capital Turnover Ratio 3. Total Asset Turnover Ratio 4. Inventory Turnover Ratio 5. Inventory Number of Days 6. Receivables Turnover Ratio 7. Days of Sales Outstanding   Fixed Asset Turnover Ratio: The fixed-asset turnover ratio is the ratio of net sales to the fixed assets of the company. Fixed Asset Turnover Ratio = Net Sales / Average Net Fixed Assets This ratio is used to measure the operating performance of the company, i.e., how efficiently a company is producing sales with its machines and equipment. In general, a higher fixed-asset turnover ratio indicates that a company has more effectively utilized investment in fixed assets to generate revenue.A de
Read more
-
Image
16.06.2019 AAKASHAYA PATRA SEVEN STAR SMART EDUCATION SERIES PART – 12 : Stochastic Indicator Stochastic is known as one of the reliable leading indicator to forecast the Price Reversal or Swing Reversal, its also give an idea about stock over bought position as well as stock over sold position Stochastic Indicator does not follow price or volume but it follow momentum of the trend For ready reference, Formula of the Stochastic Indicator as below : % K = (Most Recent Closing Price - Lowest Low) / (Highest High - Lowest Low) × 100 %D = 3-day SMA of %K Lowest Low = lowest low of the specified time period Highest High = highest high of the specified time period There is a two line are available in stochastic indicator, %K Line known as fast line and %D is known as slow line %D is known as a slow line because its a SMA of %K Default setting is 14 period it means it consider recent last 14 persod data as per formula in calculation We can use this Stocha
Read more

AAKASHAYA PATRA EXCLUSIVE STOCK FOR INVESTMENT: 20.09.2020

-
Image
                 Veto Switchgears and Cables Ltd CMP46 ENTRY 4 TO 44 STOPLOSS 30 TARGET 90++ TIME: 18 MONTHS   Veto Switchgears and Cables Limited is one of the largest and most diversified manufacturer of electrical and telecommunication cables. The Company has been maintaining its leadership in manufacturing of Industrial Wires and Cables since the last 50 years. Its recent foray into LED segment underpins its attempt to emerge as a leading and preferred electric solutions provider from being a mere wires and cables manufacturer It has an equity base of just Rs.19.12 crore that is supported by reserves of around Rs.158.65 crore. The Promoters hold 54.22%, FIIs hold 4.12% while the investing public holds 41.66% stake in the company.   In spite of the lockdown, VSCL has reported stable numbers for Q1FY21 with PAT of Rs.2.26 crore on sales of Rs.23.05 crore with an EPS of Rs.1.18. Currently, the stock trades at a P/E of 9x. Its recent high rate was Rs.265.5 which was formed in Dece
Read more