HDFC bank 2018-19 annual report
Johnson & Johnson Form 10-k for the fiscal year ended 29 December 2019
When we understand that even the cover page can give you sufficient information about the company, we can start searching from the cover page itself. This sets a theme.
Many times companies understand that their shareholders can be their customers so they use this space as an opportunity for advertisement. FMCG Companies like HUL, ITC, and Nestle can always do that. For example, On the annual report of HDFC bank, 2018-19. We can see many photos related to schemes the bank is running for women. It is largely giving information about their own products because anyone can need banking products and to be a shareholder, you need to pay money by cheque.
But This is not with Form 10-k. The companies which follow International Financial Accounting Standards, are supposed to file this and there are no glossy papers, and photos but full of data. Like on the first page itself, I came to know under what act the company needs to file this information, The state in which the company is incorporated, Their address, their number registered with the US government. their telephone number, on what exchange they are listed, their ticker code, how many securities they have how many class of shares they have. For receiving this information about Indian companies, I need to search for many websites, and even after that, I may not receive some. For searching the number of shares in the Indian way I need to balance sheet and even there I need to solve the puzzle of authorized, issued, subscribed, and paid-up capital. Even form 10-k gave the market capital of the company as per the last trading price of the stock. In India, we need to go to 2 different exchanges and then decide which value to take.
But the Indian version is a little bit better in some cases. It gives you key highlights. Some companies even gave you the ratios. But this is mostly like showing off how successful they are. Many times you need to search a little bit deeper. As I remember bank of Baroda, a Public sector bank, increased its size of Annual report and gave doubled in size with a little more glossy paper. After a complete analysis, I came to know it was the year when the NPA number for the bank was worst.
In The first few pages of Annual reports published by Indian companies are always more of an advertisement. Very less information. It tells you about business but not as fact. As advertisement. I am very interested in what steps taken by TCS as a company but I will be happier if I will receive what is the company doing. What are the results? Many investors think that Bharatforge is a Steel company, which is in fact doing contract-driven work for many global automobile companies. Similar things with Power mech projects are not a power company and graves cotton is not a cotton company. You may think that this is hardly any effect, but it does. When there are bad things happening for Steel companies, Bharat forge share reacts. When there is good news about the automobile sector, it doesn’t move. Which makes the valuation wrong.
As I read some annual reports for my projects, I realize that annual reports can give you sufficient good hints if you know how to read them. when a company changes the style of an annual report it shows something. Some annual reports force you into learning about them. Some are just an advertisement. Some will give you a show of their business. some of them will be like throwing big jargon and telling me don’t try to touch me. It s up to you.
My experience with them is interesting. Development credit bank Oe of my early days stock which I don’t know why I was holding but Their annual report gave me an idea of the mobile phone bill of an MD. what sort of handset he was buying and all. No, I am not talking about DRHP. I am talking about an annual report.
Tata coffee annual report 2018-19
Tata coffee’s annual report at least gives some idea about their business. When it comes to IT companies what are they doing and what type of software they are making is entirely impossible to read.
In this part hardly there is anything to mention. Hereafter there are many things to read and write. Till then if possible, keep reading annual reports.