University of South Australia: Annual Report Analysis - ACG 27, Sem 2

This report provides a detailed analysis of an annual report, encompassing key financial statements such as the Statement of Profit or Loss and Other Comprehensive Income, Statement of Financial Position, and Statement of Changes in Equity. It includes comprehensive notes to the accounts, detailing revenue, expenses, assets, liabilities, and equity. Furthermore, the report features the Directors' Declaration and Annual Directors' Report, which offer insights into the company's performance, governance, and future outlook. The financial data is presented with specific figures, including revenues, expenses, and key balances, providing a complete overview of the company's financial health. The report also includes a bibliography, citing the sources used in its compilation.

ANNUAL REPORT ANALYSIS
ANNUAL REPORT ANALYSIS
Name of the Student
Name of the University
Authors Note
Course ID

ANNUAL REPORT ANALYSIS
Table of Contents
Statement of Profit or Loss and Other Comprehensive Income................................................3
Statement of Financial Position.................................................................................................3
Statement of changes in equity..................................................................................................6
Notes to Accounts......................................................................................................................7
Directors Declaration:..............................................................................................................11
Annual directors Report:..........................................................................................................15
Annual auditors Report:...........................................................................................................17
Bibliography:............................................................................................................................23

ANNUAL REPORT ANALYSIS
Statement of Profit or Loss and Other Comprehensive Income
Note $
Continuing Operations
Revenue 1 47388800
Expenses 2
Cost of Sales 25619870
Employee Benefit Expenses 2 3031000
Occupancy related expenses 2 3260000
Depreciation and Amortisation 2 1444530
General Operating Expenses 2 2940000
Other expenses 2 4650000
Total Expenses 40945400
Other Income 492000
Earnings befor Interest and income tax
expense
6935400
Finance Costs 2 60000
Profit Before Income Tax 6875400
Income Tax 2062620
Profit from continuing operations 4812780
Statement of Financial Position

ANNUAL REPORT ANALYSIS
Statement of Financial
Position
Note $
Assets
Current Assets
Cash and Cash Equivalents 4 5630000
Interim Div 5 2662000
Final Div Declared 6 4947800
Others 28000
Total Current Assets 13239800
Non-current Assets
Machinery 7 3780400
Vehicles 7 2105800
Office furniture and fittings 7 2984500
Goodwill 8 162000
Total Non-current Assets 9032700
Total Assets 22272500
Liabilities
Current Liabilities
Trade and Other Payables 2218460
Interest bearing loans and
borrowings
500000
Income Tax Payable 2062620

ANNUAL REPORT ANALYSIS
Provisions 9 453910
Other 23980
Total Current Liabilities 5258970
Non-current Liabilities
Legal Expenses 414250
Total Non-current liabilities 414250
Total Liabilities 5673220
Net Assets 18026540
Equity
Issued Capital 12741000
Retained Earnings 3785540
Reserves 1500000
Total Equity 18026540
Statement of changes in equity

ANNUAL REPORT ANALYSIS
Issued
Capita
l
Reserve
d
Shares
Retained
Earnings
Hedging
Reserve
Other
Reserve
s
Total
Equit
y
0
Opening balance
at 30 June 2018
77020
00
1420760 300000 9422
760
Additional
Capital Issued
50390
00
5039
000
Profit for the
year
4812780 4812
780
Interim Div 0
Final Div
Declared
0
Transfer to GR -
1200000
120000
0
0
Dividend Paid -
1248000
-
1248
000
Closing Balance 12741
000
0 3785540 0 150000
0
1802
6540
Notes to Accounts
1. Income
2019 $

ANNUAL REPORT ANALYSIS
Sale of Goods 40634800
Rendering of Services 6730000
Providing services to Hope Limited 24000
Revenue 47388800
Gains on disposal of property, equipment and assets 492000
Other Income 47880800
2. Expenses
Salaries and Wages 2590000
Bonus 243000
Annual leave expense 198000
Employee Benefit Expenses 3031000
Lease payments 3260000
Occupancy related expenses 3260000
Depreciation on Machinery 494730
Depreciation on Vehicles 358900
Depreciation on office furniture and fittings 590900
Depreciation and Amortisation 1444530
Power and Other Utility Expenses 730000
Cleaning Expenses 367000
Insurance Expenses 97000
Other Expenses 1746000
General Operating Expenses 2940000
Marketing Expenses 1027000
Doubtful debts expense 194500
Warranty Expenses 2410000

ANNUAL REPORT ANALYSIS
Loss from Sale of Fittings 420000
Payment to Auditors 245000
Expenses on Legal Provision 310000
Other Expenses 4606500
Interest Expense 60000
Finance Costs 60000
3. Tax Expense
Tax as per current balance sheet 4812780
Deferred Tax Expenses N/A
4. Cash and Cash Equivalents
Cash at bank on the date of preparation of balance sheet is $563000.
5. Receivables
Accounts receivable on the date of preparing the balance sheet are valued at
$2762000.
6. Inventories

ANNUAL REPORT ANALYSIS
Recognition and Measurement: Inventories are measured at lower of cost and net
realisable value. Net realisable value of inventory is the amount that can be recovered by
selling the inventory after deducting the costs which will be recovered to sell. On the date of
preparing the balance sheet, these are valued at $4947800.
7. Property, Plant and Other Equipment
Machinery Vehicles Office furniture and
fittings
Year ended 30 June
2018
4659130 2551200 4055400
Accumulated
depreciation and
impairment
494730 358900 590900
Value of assets
disposed
384000 43000 480000
Net Carrying
amount
3780400 2149300 2984500
8. Goodwill and Other Intangible Assets
Year Ended 30 June 2018
Cost -
Accumulated amortisation and impairment -
Net carrying amount 162000

ANNUAL REPORT ANALYSIS
9. Provisions
Allowance for Doubtful Debts 25910
Provision for breach of contract 248000
Claim for Damages 25910
5493170
10. Capital Management
The primary objective of the entity is to provide the shareholders with satisfactory
returns on their investments. This will be achieved by the organisation by increasing
returns on invested capital in return to the cost of capital and making sure that the
shareholders are satisfied with the returns provided.
Equity and Reserves
Issued Capital 12741000
Reserved Shares -
Retained Earnings 3785540
Reserves 1500000
18026540
Total Interest-Bearing Debt 500000
Less: Cash and Cash equivalents 5630000
Net Capital 12896540
11. Dividends and Distributions

ANNUAL REPORT ANALYSIS
Dividends distributed and paid during the year amounted to $1248000. A dividend of 13
cents per share was declared in June but it has not yet been approved in the AGM and hence
should be avoided from the books of accounts.
12. Contingent Liabilities
A contingent liability for the legal provisions which is not expected to be realised and
amounts to $370500 has not been presented in the financial statements as it is not expected to
be recovered during the current financial year by the company and hence is being disclosed
separately.
Directors Declaration:
The directors declare that;
a. According to the director’s view, there are sufficient ground to consider the company
would be capable of paying its debts and when they are unpaid and outstanding.
b. According to the director’s view, the financial report that is attached are complying
with the IFRS.
c. According to the director’s view, the financial report that is attached and the
statements thereon are in agreement with the Corporation Act 2001 (Cth), together
with the agreement with the accounting standards and provides a correct and accurate
view of the business position and overall performance of the business.
During the date of this statement, the business is inside the class of businesses that is
effected by the ASIC Corporation instrument 2016/785. The character of cross deed carries
the guarantee where each company is regarded as the party to the guarantees of deed and for
every creditor imbursement in full debt in agreement with the deed of cross guarantee.

ANNUAL REPORT ANALYSIS
According to the director’s view, there are sufficient reasons to have faith in the
company and companies to which the deeds are applicable would be capable of meeting the
commitments or liabilities to which they are or might be the subject with respect to the deed
of cross guarantee.
The declaration of the director is to provide the annual statements of the corporation’s
performance for the financial year ended 2019. The declaration of the director further notifies
that it has simplified and strengthened the company by improving its framework of capital
allocation, sharpened by its culture and productivity and rendered a strong set of financial
outcomes. This has enabled the company to declare a record dividend 10c per share.
The company has also made investment in future as during the year the board has
approved funds for capital expenditure for its project in Australia following the detailed
assessment against capital allocation framework. Investment in capital project offers
attractive returns for the shareholders and would improve the overall performance of
company. The director is pleased to inform that the company has made good progress and has
made reposition of its portion to make sure that it has correct situations in place for the
continuous value formation. The variations that is made by the company and those that are in
progress are directed by the dedicated assurance towards the central objective of delivering a
suitable return to the stockholders.
Over and done with such changes, the business has provided a robust financial result
with revenues from continuing operations and barring the significant items. The reported
profit after tax portrays the trading profit. While this year has been an unsatisfactory venture,
the revenues has freed the company of operating profit, future capital and lease obligations
and has also the company’s business position. The company in Australia has delivered a