deciphering annual report

as ANNUAL report of various company is started coming under revised format as per Companies act 2013 & INDAS . the purpose of new disclosure NORM was to find the true net worth of the company on the date of balance sheet.

the networth of the company is essential to be monitored but the running business which depends on the fixed assets ,market share the potential in short term and long term.

the earlier format showed the fixed asset and depreciation clearly and bifurcated in land building, plant and machinery , vehicles furniture etc , so the analyst knows how much is spend for future expansion and new product or project being undertaken by the company. now all this is clubbed under non current asset with no details. normaly the depriciation on plant and machinery shall be between 6 to 12% depending on industry and redundancy, we must study this in detail to know fair policy adopted by the company, i feel the details of fixed asset shall be restored.

the investment in share and securities are valued at market rate which will give diffrent value at the various phase of the share market which again confuse the investors ,better original cost shall be disclosed.

the current asset disclosure also has several deficiency.

i suggest that disclosure norm for industry wise shall be made like manufacturing ,service,computer,investment ,traditionally we have companies which do every thing and