Mitchels annual report

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FINAL REPORT
COMPANY: Mitchell’s Fruit Farms Limited
For the fulfillment
Of the course
Analysis of Financial Statement
_____________________________
Submitted to
Mr. Nadeem Khan
By:
Shahnawaz Bhamani (8303)
Syed Muhammad Noman Mazhar (7997)
Syed Ramiz Gohar (0000)
BBA-H

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TABLE OF CONTENT
Introduction to Mitchell’s………………………………………………………............................2
Mission Statement………………………………………………….……..........................2
Vision of Company……………………………………………………...………………...2
Mitchell’s Strength………………………………………………………………………...2
Mitchell’s Weakness………………………………………………………………………3
Financial Ratio Analysis
Introduction ………………………………………………………………………………………3
How to analyze business using financial ratios……………………………..…………………….3
What You Should Know Before Getting Started ………………………………………………..4
Purpose of Financial Ratio Analysis………………………………………..…………………......4
Why use Financial Ratio Analysis? ................................................................................................4
Balance Sheet of Mitchell’s…………………………………………………………………...…..5
Income Statement of Mitchell’s………………………………………………………………..…7
Basic Tools of Financial Analysis
1. Trend Analysis………………………………………………………………………....…8
Mitchell’s Trend Analysis of Income Statement……...……………….……………………8
Mitchell’s Trend Analysis of Balance Sheet………………………………………………..9
2. Common Size Analysis………………………………………………………………..…10
Mitchell’s Common Size Analysis Income Statement…………………………………….10
Mitchell’s Common Size Analysis of Balance Sheet …………………………………......11
3. Ratio Analysis
Liquidity Ratios……………………………………………………………………...…..13
Operating / Activity Ratios…………………………………………………………..….14
Solvency Ratios………………………………………………….……………………....14
Investment Ratios………………………………………………….…………………....15
Profitability Ratios……………………………………………….….……………….….16
4. Industry Comparison…………………………………………………………………….17
5. Balance Sheet Forecasting……………………………………………………………….19
6. Income Statement Forecasting…………………………………………………………..20
References……………………………………………………………….….……………………21

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.
Introduction to Mitchell’s
Mitchell’s fruit farm limited is one of the oldest industries still existing in Pakistan. It was
established in 1933 by Francis J. Mitchell under the name of Indian Mildura Fruits Farm LTD.
After the country gained independence in 1947, the company name was changed to Mitchell’s
Fruit Farms LTD. with the brand name of Mitchell’s.
The result of their efforts is that today they are among the market leaders in all our
product categories. Not only that, but their products are also gaining a market abroad with
exports to several parts of the world including UK, USA, Canada, the Middle-East and South-
West Asia where already Mitchell’s is a name to reckon with.
Mission & Vision Statement of the Company
1. To be a leader in the markets we serve by providing quality products to our customers
while learning from their feedback to set even high standard.
2. To be a company that continuously enhance its superior technological skills to remain
international competitive in this day and age of increasing challenge.
3. To be a company that attracts and retains competent people by creating a culture that
fosters innovation, promotes individual growth and rewards initiative and performance.
4. To be a company which optimally combines its people, technology, management
systems, and market opportunities to achieve profitable growth while providing fair
returns to its shareholders.
5. To be a company that Endeavour’s to set the highest standards incorporate ethics.
6. To be a company that fulfills its social responsibility.
Mitchell’s Strength:
 Oldest company of Pakistan.
 ISO 9001 Award in 1998.
 International recognition.
 Own reputation in market.
 Own growing and processing facilities at one location.
 Pioneer in Pakistan for chocolate production.

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 Single national company that has variety in flavors.
 Have more fruit content.
Mitchell’s Weakness:
 Less support of Promotions.
 Hardly advertising on the Media.
 Contended with their brand name.
 Not serious in promoting its brands.
 Very less packaging variants.
 Don’t have any short term and long-term decision-making plan.
 Decreasing growth rate and eventually losing market shares.
Financial Ratio Analysis
Introduction
A sustainable business and mission requires effective planning and financial management. Ratio
analysis is a useful management tool that will improve your understanding of financial results
and trends over time, and provide key indicators of organizational performance. Managers will
use ratio analysis to pinpoint strengths and weaknesses from which strategies and initiatives can
be formed. Funders may use ratio analysis to measure your results against other organizations or
make judgments concerning management effectiveness and mission impact.
How to analyze business using financial ratios
Ratios are use to evaluate the performance of a business and identify potential problems. Each
ratio informs about factors such as the earning power, solvency, efficiency, and debt load of your
business. They are use to measure the relationship between two or more components of the
financial statements and have greater meaning when the results are compare to industry
standards for businesses of similar size and activity.

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What You Should Know Before Getting Started
• The Purpose of Financial Ratio Analysis
• Why Use Financial Ratio Analysis?
• Basic Tools of Financial Analysis
 Trend Analysis
 Common-Size Analysis
 Component Percentage
 Ratio Analysis
Purpose of Financial Ratio Analysis
A sustainable business and mission requires effective planning and financial management. Ratio
analysis is a useful management tool that will improve your understanding of financial results
and trends over time, and provide key indicators of organizational performance. Managers will
use ratio analysis to pinpoint strengths and weaknesses from which strategies and initiatives can
be form. Funders may use ratio analysis to measure your results against other organizations or
make judgments concerning management effectiveness and mission impact.
Why use Financial Ratio Analysis?
Financial ratio analysis can be use in two different but equally useful ways. You can use them to
examine the current performance of your company in comparison to past periods, from the prior
quarter two years ago. Frequently, this can help you identify problems that need fixing. Even
better, it can direct your attention to potential problems that can be avoided. In addition, you can
use these ratios to compare the performance of your company against that of your competitors or
other members of your industry.

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BalanceSheet of Mitchell’s
Mitchell’s Food Farm Pakistan Ltd.
Balance Sheet
Year Ended 2012 & 2013
2013 2012
Assets
Non-current assets
Property, Plant and Equipments
393,166,181 12,491,433
Intangible assets
1,077,596 1,285,370
Biological assets
9,573,000 9,505,667
Long term Receivables
750,000 _
Total Current Liabilities
404,566,777 375,502,685
Current Assets
Stores and spares
15,026,848 12,491,433
Stock in trade
327,371,490 342,532,608
Trade debt
56,548,807 59,816,430
Advances,Deposits, Prepayments and other
receivables
84,008,075 11,387,684
Cash and Bank Balance
37,800,677 12,354,863
Total Current Assets
520,755,897 438,583,018
Total Assets
925,322,674 814,085,703
Equity and Liabilities
Capital and Reserves
Authorized Capital
200,000,000 100,000,000
Issued, Subscribed and Paid up capital
63,000,000 50,400,000
Reserves
9,635,878 9,635,878
Unappropriated Profit
454,469,244 372,529,248
Total
527,105,122 432,565,126
Non-current Liabilities

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Deferred Liabilities
111,235,470 93,012,838
Current Liabilities
Short term running finances-Secured 97,102,844 140,987,776
Creditors, accrued and other liabilities 188,394,095 146,322,898
Accrued finance cost on short term finances 1,485,143 1,197,065
Total Liabilities
286,982,082 288,507,739
Total Liabilities & Shareholder Equity
925,322,674 814,085,703

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Income Statementof Mitchell’s
Mitchell’s Food Farm Pakistan Ltd.
Profit & Loss Statement
Year Ended 2012 & 2013
2013 2012
Net Sales
2,084,261,537 1,884,503,125
Cost of Sales
1,546,820,121 1,421,735,606
Gross Profit
537,441,416 462,767,519
Marketing and distribution Expense
248,456,191 206,795,747
Administrative Expense
82,867,912 84,567,766
Other operating expense
14,221,178 12,104,042
Other operating income
12,534,263 16,023,676
Profit from operation
204,430,398 175,323,640
Finance Cost
17,557,660 22,964,482
Profit before taxation
186,872,738 152,359,158
Taxation
54,532,742 44,009,003
Profit for the year
132,339,996 108,350,155

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Basic Tools of Financial Analysis
1. TREND ANALYSIS (Horizontal)
Trend analysis is one of the tools for the analysis of the company’s monetary statements for
the investment purposes. Investors use this analysis tool a lot in order to determine the
financial position of the business. In a trend analysis, the financial statements of the company
are comparing with each other for the several years after converting them in the percentage.
Mitchell’s Trend Analysis
Trend Percentage
Income Statement
Analysis
$ change Trend
%
$ change Trend
%
2013 2012 2013 2012
Net Sales 2,084,261,537 1,884,503,125 199,758,412 10.60 90,254,808 5.03
Cost of Sales 1,546,820,121 1,421,735,606 125,084,515 8.80 21,604,007 1.54
Gross Profit 537,441,416 462,767,519 74,673,897 16.14 68,650,801 17.42
Administrative
Expense 82,867,912 84,567,766 (1,699,854) (2.01) 17,828,775 26.71
Marketing and
distribution
Expense 248,456,191 206,795,747 41,660,444 20.15 23,391,565 12.75
Other operating
expense 14,221,178 12,104,042 2,117,136 17.49 3,730,248 44.55
Other operating
income 12,534,263 16,023,676 (3,489,413) (21.78) 5,116,693 46.91
operating profit 204,430,398 175,323,640 29,106,758 16.60 28,816,906 19.67
Financial Charges 17,557,660 22,964,482 (5,406,822) (23.54)
(15,395,98
6) (40.14)
Profit before
taxation 186,872,738 152,359,158 34,513,580 22.65 44,212,892 40.88
Taxation 54,532,742 44,009,003 10,523,739 23.91 9,287,946 26.75
Profit of the year 132,339,996 108,350,155 23,989,841 22.14 34,924,946 47.57
Interpretation and Recommendation on Trend Analysis of Income Statement:
As per the trend analysis by comparing the trend percentage between 2013 and 2012, Mitchell’s
net income has decreased by twice throughout year, which creates alarming situation for the
firm, and significant drop in its profitability.

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Trend Percentage
Balance sheet analysis 2013 2012
Assets
$ change Trend
%
$ change Trend
%
Non-current assets
Property, Plant and
Equipments 393,166,181 364,711,648 28454533 7.80 41282826 12.76
Intangible assets 1,077,596 1,285,370 (207774) (16.16) (321342) (20.00)
Biological assets 9,573,000 9,505,667 67333 0.71 2372667 33.26
Long term Receivables 750,000 _ 750000
Total Non Current Assets 404,566,777 375,502,685 29,064,092 7.74 43,334,151 13.05
Current Assets
Stores and spares 15,026,848 12,491,433 2535415 20.30 3197531 34.40
Stock in trade 327,371,490 342,532,608 (15161118) (4.43) 30466632 9.76
Trade debt 56,548,807 59,816,430 (3267623) (5.46) (3428451) (5.42)
Advances,Deposits,
Prepayments and other
receivables 84,008,075 11,387,684 72620391 637.71 (21680431) (65.56)
Cash and Bank Balance 37,800,677 12,354,863 25445814 205.96 (1224908) (9.02)
Total Current Assets 520,755,897 438,583,018 82172879 18.74 7330373 1.70
Total Assets 925,322,674 814,085,703 111236971 13.66 50664524 6.64
Equity and Liabilities
Authorized Capital 200,000,000 100,000,000 100000000 100.00 0 0.00
Issued, Subscribed and Paid up
capital
63,000,000 50,400,000
12600000 25.00 0 0.00
Reserves 9,635,878 9,635,878 0 0.00 0 0.00
Unappropriate Profit 454,469,244 372,529,248 81939996 22.00 73070155 24.40
Total 527,105,122 432,565,126 94539996 21.86 73070155 20.33
Deferred Liabilities 111,235,470 93,012,838 18222632 19.59 13302778 16.69
Current Liabilities
Short term running finances-
Secured 97,102,844 140,987,776 (43884932) (31.13) (13806805) (8.92)
Creditors, accrued and other
liabilities 188,394,095 146,322,898 42071197 28.75 (20211010) (12.14)
Accrued finance cost on short
term finances 1,485,143 1,197,065 288078 24.07 (1690594) (58.55)

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Total Current Liabilities 286,982,082 288,507,739 (1525657) (0.53) (35708409) (11.01)
Total Liabilities &
Shareholder Equity 925,322,674 814,085,703 111236971 13.66 50664524 6.64
Interpretation and Recommendation on Trend Analysis of Balance Sheet:
Mitchell’s balance sheet trend analysis indicates the increase in Equity and Current Assets,
which shows quite good position and reliability of the company.
2. Common Size Analysis
Common Size Analysis is a company financial statement that displays all items as percentages of
a common base figure. This type of financial statement allows for easy analysis between
companies or between time periods of a company. Formatting financial statements in this way
reduces the bias that can occur when analyzing companies of differing sizes. It also allows for
the analysis of a company over various time periods, revealing, for example, what percentage of
sales is cost of goods sold and how that value has changed over time.
Common Size Balance Sheet: A common size balance sheet expresses each item on the balance
sheet as a percentage of total assets.
Common Size Income Statement: A common size income statement expresses each income
statement category as a percentage of total sales revenues.
Mitchell’s Common Size Analysis
COMMON SIZE
Income Statement Analysis
2013 2012
Net %
2013
Net %
2012
Net Sales
2,084,261,537 1,884,503,125
100 100
Cost of Sales
1,546,820,121 1,421,735,606 74.21 75.44
Gross Profit
537,441,416 462,767,519
25.79 24.56
Administrative Expense
248,456,191 206,795,747
3.98 4.49
Distribution and marketing Expense
82,867,912 84,567,766
11.92 10.97
Other operating expense
14,221,178 12,104,042
0.68 0.64
Other operating income
12,534,263 16,023,676
0.60 0.85
Profit from operation
204,430,398 175,323,640
9.81 9.30
Finance cost
17,557,660 22,964,482
0.84 1.22
Profit before taxation
186,872,738 152,359,158
8.97 8.08
Taxation
54,532,742 44,009,003
2.62 2.34
Profit of the year
132,339,996 108,350,155
6.35 5.75

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Interpretation and Recommendation on Common-Size Income Statement Analysis:
The net income of Mitchell’s is increase by 1% as per common size financial analysis by
decrease in 1% of gross profit and some changes in expenses including increase in administrative
expense and taxation and, which is not beneficial for the firm.
COMMON SIZE
Balance sheet analysis
2013 2012 Net % 2013 Net % 2012
Non-current assets
Property, Plant and Equipments 393,166,181 12,491,433 42.48 44.80
Intangible Assets 1,077,596 1,285,370 0.11 0.15
Biological Assets 9,573,000 9,505,667 1.03 1.16
Long term recievables 750,000 _ 0.08 0
404,566,777 375,502,685 43.72 46.12
Current Assets
Stores and spares and loose tools 15,026,848 12,491,433 1.62 1.53
Stock in trade 327,371,490 342,532,608 35.37 42.07
Trade debt 56,548,807 59,816,430 6.11 7.34
Advance, deposits, prepayments and
other receivables
84,008,075 11,387,684 9.07 1.39
Cash and bank balances 37,800,677 12,354,863 4.08 1.51
520,755,897 438,583,018 56.27 53.87
Total Assets 925,322,674 814,085,703 100 100
Authorized Capital 200000000 100000000 21.61 12.28
Issued, subscribed and Paid up Capital 63000000 50400000 6.80 6.19
Reserves 9,635,878 9,635,878 1.041 1.18
Unappropriate Profit 454,469,244 372,529,248 49.11 45.76
527,105,122 432,565,126 56.96 53.13
Deferred liabilities 111,235,470 93,012,838 12.02 11.42
Current Liabilities

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Short term running finances-Secured 97,102,844 140,987,776 10.49 17.31
Creditors, accrued and other liabilities 188,394,095 146,322,898 20.35 17.97
Accrued finance cost on short term
finances 1,485,143 1,197,065 0.16 0.14
Total Liabilities 286,982,082 288,507,739 31.01 35.4
Total Liabilities & Shareholder
Equity
925,322,674 814,085,703 100 100
Interpretation and Recommendation on Common-Size Income Statement Analysis:
As per common size of the year 2013 with the comparison of the year 2012 the current assets
increased up to 3% from 56.28% to 53.87% and liabilities also decreased by 4% which is good
signal for the company. The change in liabilities is 4 times more than change in assets, so
Mitchell’s is in stable position.
3. Ratio Analysis
Types of Ratio
There are four main types of ratios, which use to analyze financial performance of a company.
1. Liquidity Ratio
2. Efficiency Ratio/ Operating Ratio
3. Solvency Ratio
4. Profitability Ratio

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Mitchell’s Ratio Analysis 2013
FORMULA CALCULATI
ON
RATIO RATIO RECOMMENDATION
Liquidity Ratios 2013 2012
1.
Current
Ratio
Current Assets
/ Current
Liabilities
520755897/
286982082
1.81
1.52
Current Ratio shows the
financial strength of the
company. It measures the
short-term debt paying ability.
There is 1.81 in current assets
to pay Rs. 1 in current
liabilities, which are good
enough.
2. L
Quick
Ratio
Quick Assets/
Current
Liabilities
*Quick
Assets=
Cash+
Receivables
+Trade Debt
178357559 /
286982082
*Q.A=
37800677+840
08075+565488
07
0.62
0.28
The quick ratio tests whether a
business can meet its
obligations even if adverse
conditions occur. There is 0.62
in quick assets to pay Rs. 1 in
current liabilities; quick ratios
between 0.5 and 1 are consider
satisfactory.
3.
Cash
Ratio
Cash / Current
Liabilities
37800677 /
286982082
0.13
0.042
Cash ratio measure the
immediate amount of cash
available to satisfy short-term
liabilities. In general 0.5:1 or
higher is preferred so cash
ratio i.e. 0.13 is very good in
firm and have to maintain its
cash ratio.

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Activity/ Operating Ratios
4.
Inventory
Turnover
COGS /
Inventory
1546820121/
327371490
4.72 4.15
Inventory turnover 4.75 *
indicates that how quickly
inventory sells.
5.
No. of
days to
sell
Inventory
365 /
Inventory
Turnover
365 / 4.72 77
88
It indicates that in 77 days
inventory sells and shows good
turnover of firm’s inventory.
6.
Receivabl
e
Turnover
Sales /
Average
Receivable
2084261537/
58945013
35.35 30.71
The ratio is used to calculate
the firm’s debt receivables for
its credit sales. However, ratio
indicates 35.35 times firm
collect receivables.
7.
No. of
days in
Receivabl
e
365 /
Receivable
Turnover
365/35.35 10
12
It indicates that in 10 days
collecting receivables and
shows very good turnover of
firm.
8.
Payable
Turnover
Purchases /
Average
Payable
1546820121/
188394483
8.21 9.71
Ratio 8.21 times shows how
quickly pay its debt to their
suppliers.
9.
No. of
days in
Payable
365 /
Payable
Turnover
365/8.21 44 38
It takes 44 days to pay debt to
the firm’s suppliers.
10.
Cash
Conversio
n Cycle
No. of days
in
receivable +
No. of days
in Inventory
–
No. of days
in Payable
10+77-44 43 62
The 43 days is a metric that
expresses the length of time, in
days, that it takes for a company
to convert resource inputs
into cash flows.
11.
Fixed
Asset
Turnover
Net Sales /
Avrg. Fixed
Assets
2084261537
/
390034731
5.34
5.32
It measures a company’s ability
to generate net sales from
fixed-asset investment. Fixed
asset turnover 5.34 times shows
that company has been more
effective in using the
investment in fixed-assets to
generate revenues.

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12.
Total
Asset
Turnover
Net Sales /
Average
Total
Assets
2084261537/
925322674
2.25 2.31
It measures a company’s ability
to generate net sales from asset
investment. 2.25 times shows that
company has been use its assets
to quite efficiently generate sale
Solvency Ratios
13.
Financial
Leverage
Ratio or
Debt to
equity
Ratio
Total Debt /
S.H.E
398217552/
527105122
0.75
0.88
It indicates the proportion of
equity and debt the company is
using to finance its assets.
14.
Equity
Ratio
Total S.H.E
/
Total
Assets
527105122/
925322674
0.57
0.53
It measure how much
shareholders would receive in
the event of company-wide
liquidation. 0.57 indicates the
average position of ratio
shareholder may receive.
15.
Debt
Ratio
Total
Liabilities /
Total
Assets
398217552 /
925322674
0.43 0.46
It indicates the proportion of
debt a company has relative to
its assets. Debt ratio is less than
1 i.e. 0.43 shows company has
more assets than debt.
16.
Interest
Coverage
Ratio
Operating
Income /
Interest
Charges
204430398/
17557660
11.64 7.63
Interest Coverage Ratio is the
indicator of company’s ability
to meet its interest payment
obligations. Mitchell’s is
effectively able to meet its
interest payment obligation by
the ratio of 11.64
Investment Ratios
17.
Earnings
Per Share
(E.P.S.)
Net
income/
Number of
shares
outstanding
132339996/
6300000
21.01 17.20
The portion of a company’s
profit allocated to each
outstanding share of common
stock. Mitchell’s has Rs. E.P.S.
of 21.01
18.
Price –
Earnings
Ratio
Market
price per
share /
E.P.S
500 / 21.01
23.8
20.93
Price earnings ratio is the
measure of investor’s
expectations about the
company’s future prospects.
Mitchell’s p/e ratio explains
that an investor is willing to pay
Rs.23.8 for Rs.1 of current
earnings.

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19.
Price to
book ratio
Common
S.H.E/
No. of
shares
outstanding
527,105,122/
6300000
83.66 85.82
Book value per share is the
recorded value of net assets
underlying each share of
common stock.
20.
Dividend
Yield
Dividend
per share /
Market
price per
share
7.50 / 500 0.015 0.020
Dividend expressed as a
rate of return on the market
price of the stock i.e. 0.015.
Profitability Ratios
21.
Return on
asset
Net Income
/ Total
Assets)*100
(132339996 /
925322674)*100
14.3 13.3
ROA indicates that how
profitable company’s assets
are generating profit.
Mitchell’s 14.3% get return
from its assets.
22.
Return on
equity or
Return on
net worth
(Net Income
/
S.H.E.)*100
(132339996 /
527105122)*100
25.1
25.0
ROE indicates company’s
profitability by measuring
how much profit generated
with the money invested by
common stock owners.
Mitchell’s generated about
25.0% of profit as per
S.H.E.
23.
Return on
sales or Net
profit
margin
(Net Income
/
Net
Sales)*100
(132339996 /
2084261537)*10
0
6.3 5.7
The indicator of
management’s ability to
control cost. Mitchell’s has
6.3% profit margin and that
is good enough.
24.
Gross
Margin
(Gross
Profit /
Net
Sales)*100
(537441416 /
2084261537)*10
0
25.7
24.5
It shows the measure of the
profitability of the
company’s product.
25.
Operating
Margin
(Operating
Income /
Net
Sales)*100
(204430398/
2084261537)*10
0
9.80
9.30
It indicates the measure of
the profitability from
operating profit, which is
9.80% of Mitchell’s.
26.
Earnings
Pre Tax
(Pre Tax
Profit / Net
Sales)*100
(186872738/
2084261537)*10
0
8.96 8.00
The higher the pre-tax
profit margin, the more
profitable the company and
ratio shows 8.96 with good
indicator.
 As the performance evaluated by different ratios, it is shown that Mitchells
Company is performing well in term of their own financing and borrowed capital
and utilizing enough to generate Profits from it. Furthermore, investors are also
willing to invest in the business to earn maximum output.

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4. Food Industry 2013 Comparison:
No. Ratios Mitchell’s Fruit
Farms
National Foods Interpretation
2013 2013
1. Current Ratio 1.81 1.28 Mitchell’s has greater
current ratio than
National Foods; it means
Mitchell’s can easily pay
its shorts term debt.
2. Quick Ratio 0.62 0.50 Both company is in good
position to meet adverse
situation if occurs.
3. Cash Ratio 0.13 (0.33) Mitchell’s can easily pay
its immediate cash
amount for short term
liabilities where as
National foods have a
negative amount and not
able to meet its short
term liabilities.
4. No. of days to sell
inventory
77 113 Mitchell’s take less days
to sell its inventory as
compared to National
Foods.
5. No. of days to receive 10 20 Its shows that Mitchell’s
can quickly recover its
receivables than National
Foods.
6. Payable turnover 44 17 It shows that National
Foods efficiently pay
their debts to their
supplier, whereas
Mitchell’s takes more
days to pay to their
suppliers.
7. Cash Conversion
cycle
43 116 National Foods resources
take more than to convert
in cash form whereas
Mitchell’s takes less.
8. Total Asset Turnover 2.25 2.31 Both companies are
efficiently using their
assets to generate sales.

18
9. Debt to Equity 0.75 1.54 Shows the percentage to
owner’s investment into
the business and
remaining shows the debt
portion which company
has borrowed.
10. Equity Ratio 0.57 0.39 Higher ratio shows that
more investors are
willing to invest in
business and firm is less
risky to lend loans.
11. Debt Ratio 0.43 0.60 It shows that National
Foods are using more
debts to acquire assets
where as Mitchell’s uses
less debt.
12. Interest Coverage
Ratio
11.64 14.08 Both companies can
easily pay interest
expenses on debt which
they have borrowed.
National Foods has
higher ratio.
13. Earning Per Share 21.01 13.01 Mitchell’s Earning per
share is greater than
National Foods and it is a
part of Company’s
income.
14. Price Earning Ratio 23.8 27.72 It shows that investors of
National foods are paying
higher amount than
Mitchell’s investors.
15. Dividend Yield Ratio 0.015 2.77 National Foods are
getting more dividends
than Mitchell’s on each
stock.
16. Return on Assets 14.3 15.84 National Foods are
generating more than
Mitchell’s to generate
profit.
17. Return on Equity 25.1 43.96 Similarly, National Foods
is generating more profit
on its equity financing
than Mitchell’s.
18. Net Profit Margin 6.3 7.88 A national food has
higher return on each sale
of inventory than
Mitchell’s.
19. Operating Margin 9.80 12.33 National Foods has
higher operating margin

19
which is good sign.
20. Gross Profit Margin 25.7 34.61 National Food has high
profit margin than
Mitchell’s.
5. Mitchell’s Balance Sheet Forecasting:
Balance sheet
analysis
Amount
Change
% Change Forecasting 2014 Forecasting 2015
Assets
Non-current
assets
Property, Plant and
Equipments 28454533 7.80 423840715.6 456908454.7
Intangible assets (207774) (16.16) 903407.6874 757376.0943
Biological assets 67333 0.71 9640809.951 9709100.23
Long term
Receivables 750000 750000 750000
Total Non Current
Assets 29,064,092 7.74 435880444 469617804.1
Current Assets
Stores and spares 2535415 20.30 18076882.04 21745988.53
Stock in trade (15161118) (4.43) 312881430.7 299032727.9
Trade debt (3267623) (5.46) 53459686.13 50539316.26
Advances,Deposits,
Prepayments and
other receivables 72620391 637.71 619735906.4 4571853285
Cash and Bank
Balance 25445814 205.96 115654150.2 353852987
Total Current
Assets 82172879 18.74 618324680 734173942.4
Total Assets 111236971 13.66 1051759106 1195471858
Equity and
Liabilities
Capital and
Reserves
Authorized Capital 100000000 100.00 400000000 800000000
Issued, Subscribed
and Paid up capital 12600000 25.00 78750000 98437500
Reserves 0 0.00 9635878 9635878
Unappropriate
Profit 81939996 22.00 554432423.4 676383091.1
Total 94539996 21.86 642307465.3 782688049.7
Non-current
Liabilities
Deferred Liabilities 18222632 19.59 133028193.2 159090442.9

20
Current
Liabilities
Short term running
finances-Secured (43884932) (31.13) 66877871.12 46060954.15
Creditors, accrued
and other liabilities 42071197 28.75 242561728.3 312303801.5
Accrued finance cost
on short term
finances 288078 24.07 1842548.007 2285963.816
Total Current
Liabilities (1525657) (0.53) 285464492.8 283954928.8
Total Liabilities &
Shareholder Equity 111236971 13.66 1051759106 1195471858
6. Mitchell’s Income Statement Forecasting:
Income Statement Amount Change % Change
Forecasting
2014
Forecasting
2015
Net Sales 199,758,412 10.60 2305194455 2549546390
Cost of Sales 125,084,515 8.80 1682909591 1830972233
Gross Profit 74,673,897 16.14 624164972.2 724882565.7
Administrative
Expense (1,699,854) (2.01) 81202225.91 79570020.93
Distribution and
marketing Expense 41,660,444 20.15 298509421.7 358646224.4
Other operating
expense 2,117,136 17.49 16708625.41 19631155.95
Other operating
income (3,489,413) (21.78) 9804725.767 7669589.138
Profit from
operation 29,106,758 16.60 238369381.5 277942823.5
Finance cost (5,406,822) (23.54) 13423835.32 10263289.92
Profit before
taxation 34,513,580 22.65 229204602.2 281125809.2
Taxation 10,523,739 23.91 67572990.69 83731514.38
Profit of the year 23,989,841 22.14 161641435 197430514.7

21
References:
 Mitchell’s_Annual_Report_2013.
 Books:
 Accounting The Basis for Business Decisions by Meigs&Meigs 9th Edition
 Accounting The Basis for Business Decisions by Meigs Williams HakaBettner 11th
Edition
 Financial Reporting & Analysis by Charles H. Gibson 12th Edition
 Analysis and use of Financial Statements by G.I.White, A.C.Sondhi, Dov Fried 3rd
Edition
 https://www.zionsbank.com/pdfs/biz_resources_book-6.pdf
 http://www.investopedia.com/terms/c/commonsizefinancialstatement.asp
 http://www.readyratios.com/reference/analysis/trend_analysis.html
 http://www.cliffsnotes.com/more-subjects/accounting/accounting-principles-ii/financial-
statement-analysis/trend-analysis

Mitchels annual report

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