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*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.

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