Assignment Compliance with disclosure requirements as per company act 1994 and SEC rules

A case study on National Tubes limited

The objectives of this case study is to find out whether the company, National Tubes Limited is following the company Act 1994 and SEC Rules in Publishing Annual Report for the Year 2006-2007 or not and if they do not so then what will be the impact of it on the total report. An annual report contains all the material information of activities performed in previous year by the company. It gives us an idea about the company’s past and present conditions and also about its future plan’s. It also informs us how consistent the firm is in performance and now efficient, profitable, productive is. As a result the creditors, investors shareholders and other users can take decision that whether they deals with the company or not.

So, we can describe company annual report as a mirror through which the whole picture of the company can be viewed transparently.

Contents of an annual Report :
The information that are generally focused on an annual report are as follows :
1. The mission statement and the vision statement
2. Name of Directors, Auditors, Bankers,
3. Director’s Report.
4. Auditor’s Report.
5. Balance Sheet
6. Profit & Loss A/C
7. Cash Flow statement
8. Statement of Changes in equity
9. Ratio Analysis
10. Notice of the Annual General Meeting.

Necessity of an annual Report :
An annual Report serves Various Purposes such as :
1. It gives an idea about where the company is now & Where it wants to reach.
2. The purpose of conducting the business.
3. The Capital structure of the company.
4. New technologies adopted by the company.
5. Values created to the customers.
6. Company’s performance of social responsibility.
7. Details about corporate Governance.
8. A comparison of net profits, dividends given by the company in last few years.
9. Profits earned by the company in last year or last few years.
10. It also works as an advertisement tool for the public at large. It encourage them to invest their capital in the company.