Financial Analysis of Australian Agricultural Projects Limited

Running head: FINANCIAL ANALYSIS
Financial analysis
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1FINANCIAL ANALYSIS
Table of Contents
1. Introduction..............................................................................................................................2
2.1 Risk and profit potential of the company..................................................................................3
2.1 Industry analysis....................................................................................................................3
2.2 Competitive strategy analysis................................................................................................5
3. Accounting analysis.................................................................................................................6
3.1 Nature of financial statements...............................................................................................6
3.2 Performance analysis.............................................................................................................8
3.3 Notes to financial statement...................................................................................................8
4. Accounting strategy evaluation................................................................................................9
5. Recasting the financial statements.........................................................................................10
6. Conclusion..............................................................................................................................11
Reference.......................................................................................................................................13

2FINANCIAL ANALYSIS
1. Introduction
Australian Agricultural Projects Limited (AACL) is the ASX listed entity that is engaged
in operation of olive grove and is located in Boort, Victoria. The entity further engaged in
operation of the managed investment schemes and serves Peppercorn Estate Limited, Victorian
Olive Oil Project and Victorian Olive Oil Project II. The company started its business during the
year 2004 with establishment of various olive oil brands. The entity has the leading technical
teams and developed its capacity in establishing new olive grove projects and manages other
groves to expand in other markets (Voopl.com.au, 2019).

3FINANCIAL ANALYSIS
2.1 Risk and profit potential of the company
2.1 Industry analysis
Porter’s 5 forces is the holistic strategic framework that takes the strategic decision
beyond just analysing present competition. It will focus on how the Australian Agricultural
Company Limited may build the sustainable competitive advantages in beverage, tobacco and
food industry.
Threat from the new entrants
New entrants in the beverage, tobacco and food industry brings new ways to do the
things, innovation that put on pressure on the company through reduced costs, strategy of lower