Comparative Analysis Report Of Amcor Ltd, Orora Ltd & BHP Ltd
Added on - 22 Sep 2019
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TABLE OF CONTENTSS.No.Particulars1.Executive Summary2.Introduction – Amcor Limited, Orora Limited and BHP Limited3.Equity & Liability4.Cash Flow Statement5.Other Comprehensive Income Statement6.Accounting for Corporate Income Tax7.Conclusion8.References
EXECUTIVE SUMMARY OF THE REPORTThis report contains study on three public companies, Amcor Limited, Orora Limited and BHPLimited listed on the Australian Securities Exchange that are engaged in Materials Industry. Thecomparative analysis has been done on various aspects like changes in owner’s equity, positionof debt and equity, changes in cash flows of both the companies over the period, items shown incomprehensive income statement of the above companies, etc.INTRODUCTION- AMCOR LIMITED, ORORA LIMITED AND BHP LIMITEDAmcor Limited is one of the top companies which develops and produces packaging productsthat are of excellent quality and responsible for packaging of wide variety of beverage, food,personal-care, home, medical-device, pharmaceutical and some more products.Orora Limited is the second largest public company listed on Australian Stock Exchange that ismanufacturing and supplying packaging products. Products in which Orora Limited dealsincludes corrugated boxes, recycled paper linerboard, folding cartons, lass bottles and jars,closures, beverage cans of aluminum.BHP Limited in one of the largest public company listed on ASX in materials industry.. Itprimarily deals in Coal, Copper, Iron Ore and Petroleum. It has mining operations in Australia,North and South America, and petroleum operations in the U.S., Australia, Trinidad, Tobago, theUK and Algeria.EQUITY & LIABILTY:(i)EQUITY:
Contributed Equity:Contributed Equity is the paid-up share capital of the companythat the shareholders have taken from the company in exchange of the cash or anyother asset. In simple terms the price paid by the shareholders for buying ownershipin the company is termed as Contributed Equity.Reserves:Reserves are the amounts appropriated by the company from its profits tomeet expected and unexpected future payments.Retained Earnings:Retained Earnings are the cumulative earnings that the companyretain over the period of years after paying out dividend.a.Amcor Limited:Change in items of equity over past year:Contributed equity was USD 1,416.9 million as on 30thJune 2017 (Annual ReportAMCOR, 2017) which has decreased to USD 1,400.7 in year 2018 (Annual ReportAMCOR, 2018). The reason behind this decrease is acquisition of shares by theAmcor Employee Share Trust and settlement of forward contracts.Reserves were having a debit balance of USD 881.7 million (Annual ReportAMCOR, 2017) at year end 2017 as compared to USD 907.1 million (Annual ReportAMCOR, 2018) at 30thJune 2018. This increase in negative balance of reserves wasmainly because of Currency translation differences.Retained earnings of Amcor Limited has increased by 163.2 million from 264.9million (Annual Report AMCOR, 2017) to 528.1 million (Annual Report AMCOR,2018) as compared to last year. Retained earnings of the company has increased asthe profits for the financial period ending 30thJune 2018 were 778.7 million (Annual
Report AMCOR, 2018) and the company has paid dividends of 515.5 million (AnnualReport AMCOR, 2018).b.Orora Limited:Change in items of equity over past year:Contributed equity was AUD 508.7million (Annual Report Orora, 2018) as on 30thJune 2017 which has decreased to AUD 499.7 in year 2018. The reason behind thisdecrease is treasury shares of AUD 24.8 million (Annual Report Orora, 2018) hasbeen used for satisfying granst under Employee Share Plans.Balance of reserves have increased from balance of AUD 144 million (Annual ReportOrora, 2018) at period ending 30thJune 2017 to AUD 152.1 million (Annual ReportOrora, 2018) as on 30thJune 2018. This increase balance of reserves was mainlybecause of Cash flow hedge reserve.Retained earnings of Orora Limited has increased by AUD 68 million from 930.5million (Annual Report Orora, 2018) to 998.1 million (Annual Report Orora, 2018) ascompared to last year. Retained earnings of the company has increased as the profitsfor the financial period ending 30thJune 2018 were AUD 212.2 million (AnnualReport Orora, 2018) and the company has paid dividends of AUD 144.2 million(Annual Report Orora, 2018).c.BHP Limited:Change in items of equity over past years:Share Capital has been same in past years at $ 1186 million (Annual Report BHP,2018) for BHP Bilton Limited and $ 1057 Million (Annual Report BHP, 2018) forBHP Biliton PLC. There has been no major change in Treasury shares.
Reserves are decreasing from 30 June 2016 to 2018 from $ Million 2538 (AnnualReport BHP, 2018) to $ Million 2290 (Annual Report BHP, 2018) due tocomprehensive income/ loss and employee shares forfeited / awarded.Retained earnings increased from $ Million 54290 in 2016 to $ Million 55592 in2018. This increase is due to increase in profits and distribution of dividend by thecompany.(ii)LIABLITY:Liabilities include following items:Current liabilities:This include liabilities which are payable within one year or lessfrom end of financial year.Non-Current liabilities:This include liabilities which are payable in one year or morefrom end of financial year.Trade Payables:It includes payables relating to main business i.e. payables relating topurchases or any expenses.Interest Bearing Liabilities:It includes liabilities relating to interest on loans taken bycompany.Tax payable:It includes payables relating to tax being payable to government forprofits earned during the year.Provisions:Provisions are being made relating to any expenses which are beingincurred in current financial year but are being payable in next or future financialyears.