Role of Financial PR in preparing Annual Report

Role of financial PR in preparing Annual Report

As far as financial PR is concerned an annual report is the most essential and first-hand communication to introduce the company to the financial public as well as to financial collaborators.

 It is an obligation on the part of the
management to present audited accounts of the company before the shareholders at the annual general meeting.

The annual reports would have passed through phases of dynamic changes but the basic requirements are:
 (i) Chairman’s speech
 (ii) Report of the Board of Directors (iii) Balance Sheet
 (iv)
Profit and Loss account and
 (v) Auditor’s Reports.

In this process, many companies make use of the space and opportunity to focus attention on the achievements in functional areas like production and sales, distribution, new products and
services, new projects, human resource development, industrial relations, contribution to the exchequer, environmental measures, research and development, energy conservation and thus present as complete a picture about the company as possible to the shareholders as well as to the financial public and the media.

Consequently, the annual report is an essential input of financial PR.

 The Public Relations role in the preparation and production of the annual report could usually be as
follows:

 The company secretary together with the finance wing of the company will be in total
command of the annual report draft preparation. But PR could lend its touch of class not only in production techniques but also in the total purview of economic and financial perspectives.

PR plays a constructive role by emphasizing the need to be frank and free to
admit difficulties, and explains the steps taken to overcome them, which will create a sense of confidence and understanding among the financial public including shareholders.

PR will have its eyes and ears turned to the ground realities to fulfill the specific
requirements of the shareholders, investors, press and media and the financial world and keep them sufficiently informed about the current operations and future plans of the company.

The annual report can thus be effectively used as a tool of PR communication.

PR advises the management that, statutorily, though a lot of information is put into the annual report it is sound business sense to focus special attention on one main them.

 While highlighting the company’s progress, performance, plans and outlook for the future, the various facets of the company’s activity will have the obvious linkage with the main theme.

Printed annual report, however well produced, will continue to command limited and captive circulation. One way to win over mass attention is to publish the chairman’s statement in selected newspapers and journals, mainly those that specialise in financial matters.

In addition to communicating a message of significance to the shareholders, space
buying in the print media provides good scope for larger audience appeal.

The PR department involves itself in the preparation and maintenance of a complete circulation list for annual report dispatch.

This is a golden opportunity to be in contact with the financial press and concerned financial public to encourage useful and informed comment.