Tuesday, June 30, 2015

Clarity in annual reports of companies

The annual report of Bajaj Finserv Ltd. for the year 2014-15 gives the comparative movements in the price of company's share and BSE Sensex. The annual report is available on the net. The comparative graph finds its place on page 41. Both movements are indexed to 100 as on 31-03-2014 and therefore the picture is clear. http://www.bajajfinserv.in/downloads/8-annual-report-14-15.pdf

However, Sundaram Finance Ltd. has made a confusing presentation in its annual report for the year 2014-15 (page 25).  The same length of space on Y-axis represents Rs.0 to Rs.2000 for the share price and 6500 to 9000 for S & P CNX Nifty. In the process, the very purpose of the graph is defeated.

SFL's annual report for 2013-14 did not have this problem because comparative proportionality was maintained on Y-axis (page 23), namely Rs.400 to Rs.700 for the share price and 4000 TO 7000 for S & P CNX Nifty. http://www.sundaramfinance.in/app_documents/companyinfo/annualreports/2013-2014/SFLAR201314.pdf

Updated on 2nd July:

Response from Sundaram Finance Ltd.:

Dear Sir,

This has reference to your email of 30th June 2015.  We have noted your observations for future Annual ReportsThank you. 


K Rajagopal
Senior Manager (Secretarial)
Sundaram Finance Limited
21, Patullos Road
Chennai 600 002
Tel: 044 2888 1236
Email: rajagopal.k@sundaramfinance.in

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