Reassessing the Value of Corporate Reporting

For any business or corporate, the most essential means to run its business cycle is the investment from the investors. But a question that arises here is that, what makes an investor to invest its money in a particular company? Usually it’s the growth of the company and constant increase in the price of shares in the stock market. But is it the only thing that attracts the investors? Analysts say that it’s actually the Financial Reports of the Companies that attract people to invest their money in that business. 

For any human being, medical reports are the only source to know the complexity of the disease it is suffering from. Same is the case in corporate world. Financial Reports are the only source for the investors to know that where does a business stand? Is it worth investing in this business? What is the risk level in this investment? But another debate regarding financial reports going on these days is that does a lay man actually consult them before making investment?

In a recent survey regarding the financial reporting, 50% people confirmed that the annual reports are the only source for them to know the performance of a company. But 47% also said that reports are too long and complex. This survey raised some questions: Are these reports really useful for the investors? Are they user friendly or not? Are the reports overloaded? According to the financial experts, business and corporate laws in recent years have made it compulsory for the companies to provide with details of each and everything in their reports to make it transparent. It definitely makes the reports long and more complex but it decreases the chances of fraud. Disclosures, consolidated accounts and details about shareholders make the reports more transparent. It is agreed by the experts that only a specific information or numbers are important for a lay man but other details tell us how that information is generated and how it could be useful for future decision making. As far as user friendly reports are concerned, it totally depends on the users how do they take them. It is agreed that reports are long because they are an overview of company’s performance for one complete year and if the users think that they can go through the report in a day or so, then how it could be user friendly for them.

Another important point highlighted in the recent survey is that whether the potential risks should be disclosed in the financial reports or not? Experts say that it won’t be beneficial to disclose the risks; however risk factors and internal control of any corporate could be disclosed in the reports. It would provide a better insight to the investors before making any investment. 

The debate on reassessing and making the corporate reporting better is still on but point to ponder here is that even if you are well educated you can never diagnose your own disease, there are doctors present for this duty. In the same way investors should go to financial experts and have their opinion before making any investment. It would make the investment less risky and would definitely give a better return.

What's My Fault?

I was born in a poor family
What's my fault?
I too had some dreams,
Dreams that needed to be fulfilled.

I too wanted my childhood to be memorable...
With books, colours and flowers,
I wanted to play with small cars.

i wanted to run behind the butterflies,
and catch them...
And jump in the streets,
With my hands full of sweets.

On my palm, I wished to have a red and black dotted bird...
And cry with joy that i caught a lady bird, I caught a lady bird.

I wanted to have cakes, candies and chocolates...
Wanted to play in school, with my class mates.

I wanted to dance in the rain,
With no worries and pain...
On the roads, I wanted to run,
In my childhood, I wanted to have some fun.

But all i got was misery and pain,
I was strangled in a million chains.

On my little shoulders, i had some weight...
I was worried about the things,
which were not meant for me to relate.

All my dreams were shattered...
My wishes were never meant to be fulfilled.
Life was difficult and people were harsh...
To make living possible, Day and night,
I laboured hard!

Now sometimes i cry
And ask my Lord...
I was born poor
What's my fault?

-- Around 4 million children of age group 5-14 years are victims of Child Labour in Pakistan and this figure is increasing every day because of inflation and poverty. We cannot wait for the government to take some step against it.. Need is to do something at our own!

On the way towards life!

“I am tired of going to gourmet grill so let’s go to pizza hut today.” These were the words said by a friend and we set out for lunch. I sat on the driving seat and switched on the music. Nusrat Fateh Ali Khan is always a pleasure to listen. Soon we reached the restaurant as it was just a kilometer away from our university. While sitting in the air conditioned hall of pizza hut, we were unaware of the 40 degree Celsius temperature outside, but I could feel the heat just by looking at the sweat drops dripping from the face of the security guard standing outside the entrance of the restaurant. But then I thought, it’s his job and he is doing it well.

Twelve minutes later, our two large pizza’s Chicken Fajita and Chicken Supreme came on the table which we ordered and we started eating them with great delight. While I was taking a bite of pizza with a sip of coke, I could still see the guard through a glass door, standing under the hot sun. A large pizza in front of me with enough money in my wallet to pay the bill and security guard at the door; this scene suddenly reminded me of Abdul Ghafoor, another security guard whom I met a day before yesterday.

Abdul Ghafoor who lives near my home and works as a security guard in a factory which is almost 9 kilometers away from his house told me that he gets monthly pay of 6000pkr ($67) for working 12 hours a day.

I asked him, “Is 6000pkr enough for you and your family?”

He replied, “Sir, Obviously it’s not enough but by the grace of God, we have never slept with empty stomachs.”

He further told me that he has two sons and two daughters and none of them go to school because he don’t have money to buy them school books. He told me that his job timing starts at 9am in the morning but he left for work at 7am sharp. I asked that why is it so?  Sir, the local bus charges me 60rs for two side route and I cannot afford it, therefore I walk all the way from my home to the factory and it takes almost 90 minutes. I practice the same while coming back to home. While he was telling me all this, there was a smile on his face. He seemed to be very satisfied and happy with his life. Apparently it looked like he has no worries in life but in real his grey hairs with wrinkles on his face and weak legs were telling the whole story.

The pizza was so tasty that I forgot everything and tried to concentrate on eating it. We had a great time at lunch with a little bit of chit chat and jokes. We paid the bill of 2700pkr and left the place. While I moved towards the main door, the security guard opened the door for me and passed me a smile and said: Allah hafiz sir!! I felt like he wants me to give him something in return. I gave him 20rs and headed towards my car. While driving back to my university, I was thinking about Abdul Ghafoor all the time. I was thinking that how much 2700 means to a person whose monthly income is 6000rs!

There was a question in my mind that why Allah made me rich and made Abdul Ghafoor poor? Why can’t everyone be rich? And then the answer came by itself that Allah made him poor so that He could test him that whether living such a poor life, is he still going to thank Allah? And He made me rich to test that after having all the comforts of life, am I going to spend on those poor people who need my help?

I was feeling pity for my own self that Abdul Ghafoor being so poor with a lot of difficulties is on his way to pass the test of life and I being a born rich and living a life full of comforts have failed to understand the true purpose of life. That day, I decided to save money and support such people who deserve our help instead of wasting it just for the sake of taste.

Sometimes, routine incidents and ordinary people affect you in such a way that they totally change the meaning, purpose and goal of your life. Abdul Ghafoor has changed my life in the same way!!