The three primary financial statements are:

1. Balance Sheet: A snapshot of the company's financial position at a specific point in time, showing its assets, liabilities, and equity.

2. Income Statement (Profit & Loss Statement): A summary of the company's revenues and expenses over a particular period, revealing its profitability.

3. Cash Flow Statement: A statement that showcases the company's inflows and outflows of cash over a specific period, categorizing them into operating, investing, and financing activities.

These financial statements provide valuable insights into a company's financial health, performance, and future prospects, enabling investors, analysts, and other stakeholders to make informed decisions.

Companies maintain accurate financial records to ensure proper utilization of funds. An independent chartered accountant audits the annual financial statements, which are a crucial part of the annual report. In addition to annual statements, companies also prepare monthly, quarterly, and half-yearly financial statements to enable management to monitor operations and stay updated on the company's financial status.

While annual statements are the most important, quarterly and half-yearly statements provide a snapshot of the company's performance during that period. Analysts use these figures to assess whether the company is meeting expectations and make informed predictions about future performance. Quarterly statements also allow for comparisons between quarters, revealing valuable insights into the company's business, such as seasonal trends. The company's ability to meet quarterly targets impacts its share price, and exceeding expectations can lead to a surge in share price. However, it's important to remember that despite promising quarterly results, predictions can still go wrong due to the inherent uncertainties of business, and companies may face unforeseen challenges.