Detailed Analysis: Bega Cheese Annual Report and Financials

This report provides an analysis of the Bega Cheese Company's annual financial report, focusing on the 2018 and 2019 reports. It examines key financial figures such as revenue, profit, cash balance, intangible assets, and receipts from debtors and customers. The analysis highlights questionable accounting numbers, including significant decreases in revenue and profit, and discusses potential reasons for these fluctuations, such as drought and market competition. The report explores possible measures to control these questionable amounts, including customer demand research and market analysis. Furthermore, it looks into the company's handling of depreciation, asset valuation, and changes in receipts from customers, suggesting improvements to enhance financial performance and efficiency. The conclusion emphasizes the importance of addressing the identified issues to improve the organization's overall performance.

Running head: ANALYSIS OF ANNUAL REPORT OF BEGA CHEESE
ANALYSIS OF ANNUAL REPORT OF BEGA CHEESE
Name of the Student
Name of the University
Author Note

1ANALYSIS OF ANNUAL REPORT OF BEGA CHEESE
Executive Summary:
The assignment on the analysis of annual report of the ASX listed company named A-
Cap Energy Limited describes the financial condition, accounting policies and the accounting
standards implemented by the company. Further there are certain questionable situation
observed in the annual report, for which, there is no clear explanation provided by the
company. The study basically gives certain hypothetical measures to identify and analyse
them properly.

2ANALYSIS OF ANNUAL REPORT OF BEGA CHEESE
Table of Contents
Introduction:...............................................................................................................................3
Discussion:.................................................................................................................................3
Questionable accounting numbers:........................................................................................3
Possible ways to control questionable amount:.....................................................................4
Other accounting information:...............................................................................................4
Conclusion:............................................................................................................................5
Reference:..................................................................................................................................5

3ANALYSIS OF ANNUAL REPORT OF BEGA CHEESE
Introduction:
Bega Chees is a renowned dairy company in Australia since 1899. The company was
first established as a cooperative society of agricultural product. The company is famous for
producing cheese, grocery, bio-nutrients, snacks and spreads. The assignment on analysis of
annual report of Bega Cheese Company focuses on the questionable number of accounting,
determination of the reason and possible ways to control questionable numbers.
Discussion:
Questionable accounting numbers:
The study mainly identify the questionable accounting numbers based on two year’s
financial report of Bega Cheese Company. As per the report the revenue for the year 2018
amount to $1438281. Profit earned during the year $28,768. Further 2018 report also states
there is a huge decrease in cash balance as compared to 2017, the cash balance for the year
$21.7 (decreased by $475.5-$21.7 = $453.8). There is a significant increase in intangible
assets amount to $411.5 ($411.5-$22.7 = $388.8). There is an increase in receipt from debtors
amount to $1499.9 and the company has paid $1404.9 to the supplier. There is remarkable
decrease in income earned from the sale of PPE amount to $10.0 ($188.9-$10.0 = $178.9).
Again according to the 2019 financial report of Bega Cheese Company shows a
decrease in revenue amount to $1419952 ($1438281-$1419952 = $18329). As per 2019
annual report there is a huge decrease in profit amount to $11819 ($28,768-$11819 =
$16949). This year cash balance increased to $28.8, trade receivables decreased to $179.9.
Again, there is an increase in PPE amount to $443.3. This year again there is an increase in
intangible assets amount to $535.1. Further, it is observed in the 2019 report there is a change
in receipt from customer amount to $1313.7(2018) and $1,422.1 (2019). On the other hand,
the report also states that receipt from sale from PPE has decreased to $0.2 ($10.0- $0.2 =
$9.8) (www.begacheese.com.au, 2019).
Possible ways to control questionable amount:
The company did not mention exact reason behind the fall in revenue during the year
2019. In this situation it can be said that draught has affected the production of milk and the
uneven completion has also played an important role in decrease in revenue. Further the
increase in amount of depreciation, amortisation and impairment of has increased during the

4ANALYSIS OF ANNUAL REPORT OF BEGA CHEESE
year 2019 that is why the profit has decreased after considering the environmental issues and
market conditions. To control the questionable situation the company need to take care of the
customer demand and proper research on market may help to increase the revenue (Zwart
2016). Again there in a change in the amount of receipt from customer (2018) observed in the
year 2019 but no reason is given by the company. It can be said that there are certain
adjustments such bad debt issues are adjusted in the report of 2019. Again, it can be said that
increase in business improvement and increase in value of intangible assets helps to increase
the intangible asset (Lim, Macias and Moell 2018). That is the possible reason of increase in
intangible asset as per the annual report 2019. As compared to 2018 the company there is a
decrease in sale of PPE and the reason of this questionable situation is not stated properly.
Thus, it can be said that to control this situation the company should update the depreciation
properly, value the assets properly since it helps to increase the revenue of the company
(fitsmallbusiness.com, 2018).
Conclusion:
In conclusion it can be said after analysing the annual report of Bega Cheese the
company should consider the above stated measures. It can also be said that controlling the
questionable situation would increase the efficiency and the performance of the organisation.

5ANALYSIS OF ANNUAL REPORT OF BEGA CHEESE
Reference:
fitsmallbusiness.com (2018). Top 17 Expert Strategies on How to Increase Profits. [online]
Fit Small Business. Available at: https://fitsmallbusiness.com/how-to-increase-profits/
[Accessed 9 Oct. 2019].
Lim, S.C., Macias, A.J. and Moeller, T., 2018, June. Intangible assets and capital structure.
In Paris December 2016 Finance Meeting EUROFIDAI-AFFI.
www.begacheese.com.au (2019). Home - Bega Cheese. [online] Bega Cheese. Available at:
https://www.begacheese.com.au/ [Accessed 9 Oct. 2019].
Zwart, C.N., 2016. From government regulation to the open market: A study on the effects of
regulation change in the dairy industry in Australia, Ireland, and Canada-A case study
analysis.