Company's Shareholders: Chairperson's CEO's Auditor's Mission Statement Corporate Governance

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An annual report is a comprehensive report on a company's activities throughout the preceding


year. Annual reports are intended to give shareholders and other interested people information
about the company's activities and financial performance. Most jurisdictions require companies
to prepare and disclose annual reports, and many require the annual report to be filed at the
company's registry. Companies listed on a stock exchange are also required to report at more
frequent intervals (depending upon the rules of the stock exchange involved).
Typically annual reports will include:
• Chairperson's report
• CEO's report
• Auditor's report on corporate governance
• Mission statement
• Corporate governance statement of compliance
• Statement of directors' responsibilities
• Invitation to the company's AGM
as well as financial statements including:
• Auditor's report on the financial statements
• Balance sheet
• Statement of retained earnings
• Income statement
• Cash flow statement
• Notes to the financial statements
• Accounting policies
Other information deemed relevant to stakeholders may be included, such as a report on
operations for manufacturing firms or corporate social responsibility reports for companies with
environmentally or socially sensitive operations. In the case of larger companies, it is usually a
sleek, colorful, high gloss publication.

What Does Capital Markets Mean?


A market in which individuals and institutions trade financial securities.
Organizations/institutions in the public and private sectors also often sell
securities on the capital markets in order to raise funds. Thus, this type of
market is composed of both the primary and secondary markets.
Investopedia explains Capital Markets
Both the stock and bond markets are parts of the capital markets. For
example, when a company conducts an IPO, it is tapping the investing public
for capital and is therefore using the capital markets. This is also true when a
country's government issues Treasury bonds in the bond market to fund its
spending initiatives.

A capital market is a market for securities (debt or equity), where business


enterprises (companies) and governments can raise long-term funds. It is
defined as a market in which money is provided for periods longer than a
year,[1][dead link] as the raising of short-term funds takes place on other markets
(e.g., the money market). The capital market includes the stock market
(equity securities) and the bond market (debt). Financial regulators, such as
the UK's Financial Services Authority (FSA) or the U.S. Securities and
Exchange Commission (SEC), oversee the capital markets in their designated
jurisdictions to ensure that investors are protected against fraud, among
other duties.
Capital markets may be classified as primary markets and secondary
markets. In primary markets, new stock or bond issues are sold to investors
via a mechanism known as underwriting. In the secondary markets, existing
securities are sold and bought among investors or traders, usually on a
securities exchange, over-the-counter, or elsewhere.

Meaning and Concept of Capital Market


Capital Market is one of the significant aspects of every financial market.
Hence it is necessary to study its correct meaning. Broadly speaking the
capital market is a market for financial assets which have a long or indefinite
maturity. Unlike money market instruments the capital market instruments
become mature for the period above one year. It is an institutional
arrangement to borrow and lend money for a longer period of time. It
consists of financial institutions like IDBI, ICICI, UTI, LIC, etc. These
institutions play the role of lenders in the capital market. Business units and
corporate are the borrowers in the capital market. Capital market involves
various instruments which can be used for financial transactions. Capital
market provides long term debt and equity finance for the government and
the corporate sector. Capital market can be classified into primary and
secondary markets. The primary market is a market for new shares, where
as in the secondary market the existing securities are traded. Capital market
institutions provide rupee loans, foreign exchange loans, consultancy
services and underwriting.

Significance, Role or Functions of Capital Market

Like the money market capital market is also very important. It plays a
significant role in the national economy. A developed, dynamic and vibrant
capital market can immensely contribute for speedy economic growth and
development.

Let us get acquainted with the important functions and role of the capital
market.
1. Mobilization of Savings: Capital market is an important source for
mobilizing idle savings from the economy. It mobilizes funds from people
for further investments in the productive channels of an economy. In that
sense it activates the ideal monetary resources and puts them in proper
investments.
2. Capital Formation: Capital market helps in capital formation. Capital
formation is net addition to the existing stock of capital in the economy.
Through mobilization of ideal resources it generates savings; the mobilized
savings are made available to various segments such as agriculture,
industry, etc. This helps in increasing capital formation.
3. Provision of Investment Avenue: Capital market raises resources for
longer periods of time. Thus it provides an investment avenue for people
who wish to invest resources for a long period of time. It provides suitable
interest rate returns also to investors. Instruments such as bonds, equities,
units of mutual funds, insurance policies, etc. definitely provides diverse
investment avenue for the public.
4. Speed up Economic Growth and Development: Capital market
enhances production and productivity in the national economy. As it makes
funds available for long period of time, the financial requirements of
business houses are met by the capital market. It helps in research and
development. This helps in, increasing production and productivity in
economy by generation of employment and development of infrastructure.
5. Proper Regulation of Funds: Capital markets not only helps in fund
mobilization, but it also helps in proper allocation of these resources. It can
have regulation over the resources so that it can direct funds in a
qualitative manner.
6. Service Provision: As an important financial set up capital market
provides various types of services. It includes long term and medium term
loans to industry, underwriting services, consultancy services, export
finance, etc. These services help the manufacturing sector in a large
spectrum.
7. Continuous Availability of Funds: Capital market is place where the
investment avenue is continuously available for long term investment. This
is a liquid market as it makes fund available on continues basis. Both
buyers and seller can easily buy and sell securities as they are
continuously available. Basically capital market transactions are related to
the stock exchanges. Thus marketability in the capital market becomes
easy.

HDFC Reference No. Cilu Your reference


number. is: 9736856597
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Work for the


Finance Ministry of India
Take the Indian Economic Service/Indian Statistical Service exam.

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by Careers360 - 3 hours ago
AS India surges ahead as an Asian economic powerhouse, the general public don’t realise that
this has been made possible thanks to the officials who sift through voluminous data to arrive at
level-headed economic decisions. Welcome to Indian Economic Service/ISS examination, which
paves the way for responsible positions under various arms of the Finance Ministry.
Eligibility: Apart from nationality, age, sex & marital status; the minimum educational
requirements from a recognised university is as follows:
-For Indian Economic Service: Postgraduation (PG) in Economics/Applied Economics/Business
Economics/Econometrics
- For Indian Statistical Service: PG in Statistics/Applied Statistics/Mathematical Statistics
Fees: Rs. 100 payable through a single Central Recruitment Fee Stamp. Fee is exempted for all
SC & ST candidates.
About the Exam
Part-I: Candidates need to appear in the following papers of conventional type. General English
and General Studies paper carry 100 marks each in both these exams. For IES, there are four
conventional papers on General Economics (I, II, III, & Indian Economics) of 200 marks each.
Similarly for ISS, there are four papers of 200 marks each for Statistics (I, II, III, and IV). Total
maximum marks thus add to 1000. Duration of each of the six papers is 3 hours.
The standard of papers in General English/General Studies is such that may be expected of a
graduate, while the standard in optional subjects is that of Master's degree exam in any Indian
university. Candidates are expected to illustrate theory by facts and need to be particularly
conversant with problems of Economics/Statistics in the Indian context.
Paper- I on General Economics cover Theory of Demand; Theory of Production; Theory of
Value; Theory of Distribution and Welfare Economics: Quantitative methods in Economics.
Statistical and Econometrics.
Paper-II covers areas of Economic thought; concept of national income & social accounting;
theory of employment, output, inflation, money & finance; financial & capital markets;
economic growth and development; international Economics; global institutions including the
United Nations, the World Bank, International Monetary Fund (IMF), World Trade Organisation
(WTO) and Multi-national companies (MNCs).
Paper-III has questions from public finance, environmental and industrial Economics and state,
market & planning.
Paper IV is on Indian Economics.
Syllabus of ISS exam covers Probability, Statistical Methods & Numerical Analysis in Paper-I.
Paper-II covers areas such as Linear Models; Estimation; Multivariate Analysis; Hypotheis
testing & Statistical Quality Control. The Statistics-III paper entails Sampling techniques; Design
& Analysis of Experiments; Economic Statistics & Econometrics, while Paper-IV has questions
from Stochastic processes; Demography; Computer Applications and Data Processing.
Part-II: Interview of 200 marks assesses one’s general/specialised knowledge and ability in
academics as also their alertness and intelligence etc.

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