Bhagwandas Metals Limited - Free Essay on Financial Statements

Creditors rely on financial statements since they inform them of the financial status and performance of the company hence they play an essential role. The financial statement further enlightens probable investors and the present shareholders regarding its probability which gains and maintain the stakeholder’s interest (Hicks& Hicks, 2014). Looking at Bhagwandas Metals Limited Financial all four financial statements namely the income statement, statement of owners’ equity, balance sheet, and statement of cash flow are consolidated and include previous years for comparison, and all are listed in the same order (Bhagwandas Metals Limited,2016). The other thing that I noticed in Bhagwandas Metals Limited is the amount of information the company provides to the stakeholders. Information transparency is essential to investors and other stakeholders since most of them have become exceptionally sensitive towards transparency of financial reporting. According to the document’s notes, it states the purpose for consolidated financial statements which is to recognize and include all its entities which it has a variable interest in and which are the major beneficiary. Furthermore, the company’s Owner’s equity is much detailed, now that it is a publicly traded company it would necessitate more detail for its shareholders and stakeholders to see how their investments are working for them (Bhagwandas Metals Limited,2016).

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If I had enough money, I would invest in Bhagwandas Metals Limited financial limited for three specific reasons, the company’s strategic plan, consistency in increasing revenue and visionary leadership. The company has focused on customer service and long-term strategic planning and have employed like-minded employees who are not afraid to fail for the sake of innovation. However, even though the company’s product are endorsed in an Indian market, the same enthusiasm does not reflect around its shares that suffers from a thin trading volume and subsequently face liquidity during trading.

References

Hicks, M. & Hicks, S. (2014). Accounting for the rest of us. Roanoke, VA: Synergistic.

Bhagwandas Metals Limited (2016). Annual statement for the financial year 2015-2016,

Retrieved from http://www.bseindia.com/bseplus/AnnualReport/530095/5300950316.pdf