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Nestle report analysis

Investment in non current assets 38k is more than investment in current assets 19k
Why?
Itll give revenue to us

Profit and loss account


We can infer that PAT is 11846
This will be available to shareholders or can be taken to reserves and surplus

-Link between p&l cash flow and b/s


(PAT should be added to reserves and surplus next year)

Pg44
Shareholders notes
No of shares
Types of shares

Reserves and surplus


Dividend paid last year
Total dividend paid

Long term borrowings


Market capital, total assets

Other recievable is 103 and provison for doubtful debt is103


They are assuming that they might not receive at all
Other important disclosures

Auditors report FA ferguson (auditor for nestle)


(to crossl check and validate the report if it is fine or not , it act as a attesting body)
Investors will have more trust that it is certified by the auditors
Auditors have to present the report as per the format (as per the company act)
also provide the opinion and judgement
firstly, they will explain if the standards are meet or not
then whatever the information has been asked and company has given it or not
if it is not provided you should cite the fact that particular information is missing
qualification and credibility of directors and opinion about them.
Audit report also mention these items
-

Fixed assets
Inventory
Loan granted
Internal control system

it helps in improving the


financial position of the company

Internal audit system


Default (if any)
Third party guarantee
Chit fund
End use of public issue
Frauds

Directors report
Accounting policy (foreg :going concern basis)
Employees , swot analysis
Financial summary , directors responsibility statement
Sources of cash , reasons for losses
Earnings , export amount
Dividend amount
Challenges faced

Corporate governance report


Profit for the company should be there taking into account the well -being of all the
stakeholders
Brief statement about companys policy , board of directors , audit committee,
salary packages of CEO directors( determine control position of the company)
Number of meetings held by BOD
Attending the meeting or not , and what has been discussed in the meeting
including minutes of the meeting
Means of communication
Shareholders information (those having major stake)
Corporate governance
Annex-1

Management discussion and analysis report Pg-74


most of the things are discussed in directors report and corporate governance
report

Industry exposure and development


Opportunities and threats
Segment wise or product wise performance
Outlook
Risk

Corporate social responsibility


Why csr?
To improve their public image
To save taxes