This article discusses the importance of having two years financial statement in a single annual report. It explains the usefulness of taking the same at the time of preparation of financial report of the company. The article also discusses the difference between the cash balance at year end & profit after taking under consideration the selected company which is NICK SCALI limited. Example from the annual report of NICK SCALI limited has been taken to explain the difference, at the end we will discuss the basis of preparation of financial statement for the selected company NICK SCALI limited (Annual Report, 2018).