Assignment-2

Report
Financial Accounting
Instructor: Farhan Sarwar
BBA 4th M-2
Group-6
Sharjeel Ahmad 52
Muhammad Ahmad 64
Muhammad Hasnain 30
Moeen Akhtar 68
Aqib Nazir 49
Muhammad Mudasir 60
Asad Ali 39
Soban Sajid 81
Repeater BBA 8th M-2
EXECUTIVE SUMMARY:

The report is prepared by the following contributions

 Sharjeel Akhtar did introduction portion

 Muhammad Mudasir and Muhammad Hasnain did mission and vision
statements
 Asad Ali covered Core Values portion
 Moeen Akhtar did Positions and directory portion
 Aqib Nazir explained statements
 Concluded by Muhammad Ahmad and Soban Sajid
Table of Contents

INTRODUCTION ......................................................................................01

Nestle..............................................................................................................01

Mission ..........................................................................................................01

Vision ............................................................................................................01

Positions and Values .....................................................................................02

FINANCIAL STATEMENTS ....................................................................04

Statement of Financial Positions ...................................................................04

Statement of Profit and Loss .........................................................................07

Statement of Comprehensive Income ...........................................................08

Statement of Changes in Equity ...................................................................09

Statement of Cash Flow ...............................................................................10

CONCLUSIONS ..........................................................................................11
Write a report on the annual accounts of registered firms in Pakistan stock exchange
INTRODUCTION:
As the top food and processing brand in the world, Nestle Corporation has some of the most
progressive mission and vision statements. The company has set standards in this sector with its
variety of products. In fact, it is one of the few corporations that have celebrated their 150
anniversary and prides in the status they have achieved so far.
Nestle has particularly honored its vision statement by being a leader in all areas of its
operations, including in how it relates to other stakeholders. Such a success agrees with the
definition of a corporate vision statement as a description of what the corporation wants to be
associated with in the long-term. Just like it is known that a corporate vision statement outlines
the strategies for reaching the vision, Nestlé’s mission statement emphasizes the practices that
make it a cut above the rest. In addition, the core values of this company show how important
culture and relationships are for Nestle. It is what has enabled the company to stay competitive
for all these years.
MISSION STATEMENT:
Nestle mission statement is “the world’s leading nutrition, health, and wellness company. Our
mission of “Good Food, Good Life” is to provide consumers with the best tasting, most
nutritious choices in a wide range of food and beverage categories and eating occasions, from
morning to night.” This statement indicates that Nestle ranks the experiences of its customers at
the top of its priorities. It has these major points:
 Boosting health
 Improving lives
 Improving communities
For years, Nestle has been recognized for its diligence in ensuring that all the food products that
it produces comply with the minimum health standards and requirements. The company does this
to ensure that it keeps all the people protected from contaminations while at the same time
offering them quality foods to meet their needs. Moreover, in the second point, Nestle recognizes
that the physical, social and economic stability of people comes first before other profiteering
objectives. By doing this, Nestle has constantly boosted the overall health of communities
VISION STATEMENT:
Nestle vision statement is “to be a leading, competitive, Nutrition, Health and Wellness
Company delivering improved shareholder value by being a preferred corporate citizen,
preferred employer, preferred supplier selling preferred products.” Setting pace and steering
others in the right direction is what Nestle is good at based on this statement. The following
components relate to this statement.
 Be a leading company
  Delivering improved values
Based on its long experience that extends as far as the early 1900s, Nestle has learned the art
leadership. Today, the company has been credited in nudging many other corporations in the
right direction quality-wise. It does this through its extricated services to everyone it serves.
CORE VALUES:
Nestle core values are “full legal compliance, honesty, fair dealings, integrity, and respect.” It is
not a wonder that Nestle has managed to cultivate positive practices among all its staffers in all
corners of the globe. These guiding principles encourage doing things right while adhering to the
approved processes. It also emphasizes on the presence of proper interrelationships between
different parties as well.
POSITIONS AND DIRECTORY:

2
3
 FINANCIAL STATEMENTS:

STATEMENT OF FINANCIAL POSITION:

4
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TOTAL EQUITY: The share capital is a positive balance. Most suitable reason for it that
accumulated profit has increased significantly. Also, share premium and general reserves
remained the same. In 2020, total equity ended with a balance of rupees 4,190,442.
TOTAL LIABILITIES: The short term liabilities of the company has been decreased mainly due
to the decrease in the short term borrowings. The non-current liabilities have increased as
compared to 2019, as company paid less long term finances, and lease liabilities. The
retirement’s benefits increased this year.
TOTAL ASSETS: The Company experienced a decrease in non-current assets because of the
decrease in property, plant and equipment. Intangible assets also faced a reduction. The only
increased account is capital in work progress. The total current decreased in value compared to
the previous year, as stock-in-trade, trade debts, prepayments, receivables, and loans and
advances decreased. Only stocks and spares increased

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STATEMENT OF PROFIT AND LOSS:

The Company earned a revenue of 118,781,274 this year and cost is 84,016,549. Cost is less than
sales, so company is in profit this year. The gross profit this year is 34,764,725 which is more
than that in 2019. They managed distribution, selling and administrative expenses very skillfully.
The company has more operating profits, more profits before and after taxations. Earnings per
share increased to Rs.195.91 while it was Rs.162.17 in 2019.

7
STATEMENT OF COMPREHENSIVE INCOME:

As there is decrease in recognized equity and related tax, and an increased profit. The company
has increased comprehensive income that sums Rs.8, 870,656.

8
STATEMENT OF CHANGES IN EQUITY:

The total balance as on 31 Dec 2019 was Rs. 3,255,966 and it increased to 4,190,442 in 2020.
The comprehensive profit of the year by removing obligation and taxation loss becomes
8,870,656.
The accumulated profit at the start of 2019 was 3,037,201. It decreased to 2,272,943 at the end of
2019 and then increased again at the end of 2020.
Per share value increased to Rs 50 while it was 20 on 31 Dec 2019.

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STATEMENT OF CASH FLOW:

The cash flow from operating activities considerably increased in 2020 as compared to 2019.
The reason was because the cash generated from operating activities almost doubled. Workers
fund was also paid in 2020.
The cash flow in investment was less than what it was in 2019. The net cash used in investment
activities in 2020 was 2,985,367, while it was 3,588,593 in 2019.
Cash and cash equivalents have a much difference between 2019 and 2020.

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CONCLUSIONS:
The company is providing the best product to the people in its domain. The company had a good
financial year. Its liabilities decreased and there was a significant increase in the equity and
assets.
The company got an increased profit this year that is Rs34, 764,725. It has decreased cost and a
more revenue as it was in 2019. . The company has increased comprehensive income that sums
Rs.8, 870,656.
There was a significant change in equity. The total balance as on 31 Dec 2019 was RS. 3,255,966
and it increased to 4,190,442 on Dec 31, 2020. Also, there was an increased cash flow this year.
As world is recovering from Covid-19 mishaps, the company did some good job. Their plan on
operational activates was quite remarkable. The fluctuations in investments may hurt them, but
they nearly recovered in nearly all accounts. The way their P/L statement showed the positive
signs, they should be hopeful for good in next annum. They also reduced their liabilities.
From all this, Nestle had a good financial year this time as compared to the last Covid-19
affected year.

Thank you 

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