Introduction to Financial Markets (405) — CBSE Class 10 board question

Annual Report:
An annual report is a formal financial statement issued yearly by a company. It shows assets, liabilities, revenues, expenses, and earnings — how the company stood at the close of the business year and how it fared profit-wise. Abridged versions are sent to shareholders free of cost; a detailed report is available on request. It is the best source of information about a company's financial health.

Key Features to Read Carefully:

1. Director's Report and Chairman's Statement — relates to current and future operational performance.
2. Auditors' Report — including annexure to the auditors' report.
3. Profit and Loss Account — shows financial performance over the accounting year.
4. Balance Sheet — shows the company's financial position at a particular point of time.
5. Notes to Accounts — attached to the Balance Sheet.

Source: Chapter 9 — Introduction to Financial Markets

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• The question has two parts: define annual report + describe its features. Split your answer accordingly to capture all marks.
• Examiners expect all 5 features listed in the textbook; missing any one may cost a mark.
• Keep the definition concise (1–2 sentences) and list features as numbered points — this format is clear and saves time in the exam.
• "Best source of financial health" is a key phrase from the textbook; including it shows precise recall.