It is a document that must be provided by a public corporation to its shareholders annually. The Document lets the shareholders know about the operations and the financial condition of the company.
The purpose of the annual report is to publicly disclose the company’s operations and financial conditions for the past year. The report helps in shaping the investment decisions of the shareholders in light of the current financial position of the company.
If a company fails to file its annual report for a particular year it may have to pay a certain amount of fine for causing the delay. Moreover, a prolonged delay may cause company dissolution i.e. the government may no longer recognize your company as a registered firm.
As your company’s annual report is published publically, it should be written in a professional manner. Before even going for publishing the report, you should proof-read it. Your annual report serves as a document that gives a transparent picture of what you have achieved in the past year.