Q&A: Impact of past transactions in the later annual reports

Modified: 02-Jul-20

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  • Impact of past transactions in the later annual reports

 

Impact of past transactions in the later annual reports

Hi Doctor, Good evening

It’s wonderful to read ur articles, thanks for ur time and effort. One doubt from my part.

Suppose I have the annual report (AR) of 2014-15 with me, but the related party transactions or the salary increase or any other benefit was passed on to the promoter in the year 2011-12. So that won’t get reflected very obviously in the 2014-15 AR.

How to cope with this?

Author’s Response:

Hi,

Thanks for your feedback & appreciation! I am happy that you found the articles useful!

You are right that the past event would not be obvious, if the investor reads only the latest annual report. This is one the reasons that it is advised that the investors should read annual reports for at least last 10 years before making the final investment decision about any stock.

Read: Understanding the Annual Report Of A Company

All the best for your investing journey!

Regards

Vijay

 

P.S.

 

DISCLAIMER

  • The above discussion is only for educational purpose to help the readers improve their stock analysis skills. It is not a buy/sell/hold recommendation for the discussed stocks.
  • I am registered with SEBI as an Investment Adviser under SEBI (Investment Advisers) Regulations, 2013.
  • Currently, I do not own stocks of the companies mentioned above in my portfolio.

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