Department of Chemical Engineering

BINDURA UNIVERSITY OF SCIENCE

EDUCATION
FACULTY OF COMMERCE
GRADUATE SCHOOL OF BUSINESS
MASTERS DEGREE IN BUSINESS LEADERSHIP

GROUP NUMBER: 4

COURSE: Financial & Management Accounting

COURSE CODE: MBL504

ASSIGNMENT: 1

YEAR: 2023

PART: 1.1

LECTURER: Dr O Muvingi

GROUP MEMBERS
1.ANDREW KWANGWARI B230328A
2.STEPHEN MADZORERA B112873
3.TAPIWA NAMAKAWA B227806A
4.ANITA NKOMO B227646A
5.FARAI BYRON NYAMUPINGA B214170B

Comment

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NATIONAL FOODS HOLDINGS LIMITED ANNUAL REPORTS ANALYSIS

An analysis of the Annual Reports for National Foods Holdings Limited.

Reporting Frameworks
The company has employed various reporting frameworks roughout this document, a range of guidelines and
reporting criteria for presenting information in this report. Key standards, guidelines and frameworks applied
are as follows:
 Companies and Other Business Entities Act (Chapter 24:31)
The Group’s abridged annual inflation-adjusted financial statements have been prepared based on the
statutory records that are maintained under the historical cost basis and are presented in Zimbabwe
Dollars (“ZW$”).
The company secretary has certified knowledge and belief the company has lodged with the Registrar of
Companies such returns as are required to be lodged by the Public entity in terms of the Zimbabwe
Companies and Other Business Entities Act.
 International Financial Reporting Standards (IFRS)
The principal accounting policies applied in the preparation of the Group consolidated inflation-
adjusted financial statements are in terms of IFRS and have been applied consistently in all material
respects with those of the previous consolidated annual inflation-adjusted financial statements.
 Zimbabwe Stock Exchange (ZSE) Listing Requirements
The Listing Requirements require financial statements to be prepared in accordance with International
Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board
(“IASB”)
 The Zimbabwe National Code of Corporate Governance
The board of Directors should be proactive in its dealings with stakeholders. It must formulate
policies and procedures of engagement with its stakeholders and take on board their views and
opinions and be responsive. The Group Audit Committee has met the external auditors to discuss
their report and the results of their work, which include assessment of the relative strength and
weaknesses of key control areas. In a growing group of the size, complexity and diversity of national
foods it may be expected that occasional breakdowns in established control procedures may occur,
any such breakdowns have been reported to the Groups Audit Committee and the board.
 International Standard Organization (ISO) 26000 Guidance on Social
Responsibility (SR)
 The Global Reporting Initiative (GRI) Standards
The company supports 45 registered institutions spread across the country’s 10 provinces with regular
food supplies and assists with a number of wildlife conservation initiatives.
 International Accounting Standard (IAS)
These financial statements have been prepared in accordance with IAS 29 together with International
Financial Reporting Interpretations Committee. However there was non-compliance with IAS 21, ( the
effects of changes in foreign exchange rates) with respect to the determination of the appropriate official
rate and the consequential effect to the documented monetary adjustment.

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PROFITABILITY
According to the annual report produced by the firm, the firm is profitable because it had ZWL14 736 872 000
after inflation adjustment.
The company was able to pay all dividends both final and interim ZWL3 870 000 and ZWL 2 553 000 respectively
after inflation adjustment.

EFFICIENCY RATIOS

INFLATION ADJUSTED HISTORICAL

2022 ZW($000) 2021 ZW ($000) 2022 ZW ($000) 2021 ZW($000)

Asset Turnover Ratio= (Net Sales/Average Total Assets)

=128408113/72323489 =96732803/45139484 =70376021/48950624 =28074417/11168274

=1.78 =2.14 =1.44 = 2.51

Dividend yield= (Dividend per share/share price)

=68400/26354 = 68400/20070
=2.60 =3.41

Earnings per share= (Net earnings/Total share)

=200000/26354 =52013/309 =200000/20070 = 52013/3819
=$7.59per share =$168.33per share =$9.97per share = $13.62per share

PROFITABILITY RATIOS
Operating Margin Ratio= (Operating Income/Net Sales)
=14736872/128408113 =3671283/96732803 =13780288/70376021 =3296938/28074417
=11% =4% =20% = 11%

NOTES ON FINANCIAL STATEMENTS

This is additional information which provides further clarification on the line items on the financial statements
according to the annual report, the directors have assessed the ability of the company to continue as a going concern.

STAKEHOLDER RELATIONSHIPS

User Group Interest

Employee Job security
Workers trust benefits
Future planning
Fair Employment Terms & conditions
Training & support
Safe working conditions
Continuity of employment
Opportunities for advancement
Steady income,

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 Recognition and career advancement
Adherence to agreed labor practices
Suppliers Adherence to payments terms
Contracts security
Government Taxes compliance
Laws compliance
Improvement of environment
Customers and Consumers Quality assurance
Product availability assurance
Excellent customer service
Consistency
Easy access to good quality products
Safe product
Customer Satisfaction
Competitive prices
Bankers Compliance to the Banking Act
Meeting repayment terms
Compliance with loan conditions
Industry and trade association, Trade Unions Membership
Meeting the standards to which the organization adheres
Adherence to terms and conditions for workers
Investors Analysis risk
Make realistic budget
Helps in decision making
Shareholders Improved profitability & returns year on year
Dividends
Sustainable Business Practices
Cost saving improvements
Reduction of waste through production of conforming
products
Shareholders want competitive performance
Good governance
Good present and future value for their investment
Local communities Funds allocated to social responsibility
Safety of company operations to the environment
Competitors Fair competition
Environmental Management Authority (EMA) Activities should not cause environment degradation,
disturbance of biodiversity, and the ecosystem.

National Social Security Authority (NSSA) Safe working environment for employees, visitors and
contractors on site.
Employee dependents Providing a safe working environment
Paying a fair rate for the job
Finance and insurance Meeting policy requirements
Payment of premiums
Reporting changes in circumstances

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