Annual Report Highlights

Every public listed company need to send in their Annual Report to all share holders and Bursa Saham Malaysia.

Annual Report content a lot information about the company. Normal Annual Report having more then 100 pages. Here we will share on reading the highlights in Annual Report.

1. Director Profile
You are going to invest your money into this company. You will need to know who is running on your money.

2. Company Structure
You will know what is this company about. How they doing their business, their product / service.

3. 3 to 5 years Financial Highlights
This represent the history of the company. You will know is this company consistantly making profit or just making profit by their luck.

4. Chairman StatementThis tell you on the future development in the company. Imagine the Chairman of the company is presenting his company to you. You are the investor of the company, of course you need to know what is he going to do.

5. Financial Report - Director ReportYou will know who is holding the share in this company. Imagine if you hold a share where their directors is just holding a very small portion of share in the company, will you invest in this company? This can show the confident level of the Directors in the company.
You also will know is there any conflic of interest; is any director having another company that making business with this company.

5. Income Statement
This is a VERY VERY important statement that you MUST READ.
This tell you how the company make / lost money. Look into the revenue, cost, number of shares, earning per share.
There is a NOTE column. This Note Column will lead you to the details on the number stated in this portion.
If you feel weird on how this company making / losing money, you can refer to the note, such as Revenue, Cost of Sale.

6. Balance Sheet
You can know what is the Asset that this company own (please refer to the note and identify is that the true value).
Here you also can know the loan that this company is taking. Long term loan and short term loan.

Lastly, we would like to share a common statement:

NOT all Annual Report are what they appear. Annual Report is one of the PR tools. Company might make some not true statement. BUT this is not right in the LAW.
You can refer to the audit company. Perhaps the reputation of the Audit company can helps you to increase the confident level.

You can get all the Annual Report in KLSE website:
http://www.klse.com.my/website/bm/listed_companies/company_announcements/annual_reports/index.jsp

Note: You are an investor. You will invest your money in this company. It is totally worth for you to read through the Annual Report before decide to invest in the company.