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FINANCIAL ACCOUNTING PRESENTATION
Group MemebersWaleed Nadeem 13p00028
Mubashar Hussain 13p00065
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INTRODUCTION OF THE COMPANY:
Mitchell's Fruit Farms Limited or Mitchell's isa Pakistani food company. It is considered asone of the largest and oldest food company thathas started its operations in 1933 under the
name of Indian Mildura Fruit Farms Limited inthe British Indian region that has now beenadministered byPakistan. It was founded byFrancis J. Mitchell. After the independence of
Pakistan, its name was changed to Mitchell'sFruit Farms Limited. It is head quarteredin Lahore, Pakistan while the farms and factoryare situated at Renala Khurd, in OkaraDistrict of Punjab, Pakistan.
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BOARD OF DIRECTORS OF COMPANY
S. M. Mohsin Chairman Non ExecutiveDirector
Mr. Mujeeb Rashi Chief Executive Officer
& Managing Director
Mrs. Sitwast Mohsin Non Executive
Director Mr. Mehdi Mohsin Executive Director
Mr. Moaz Mohiuddin Independent, Non ExecutiveDirector
Syed Faisal Imam Non ExecutiveDirector
Ms. Umme Kulsum Imam Non ExecutiveDirector
Mr. Jamal Nasim Non ExecutiveDirector (NIT Nominee)
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CORPORATE OFFICE OF COMPANY
# Locationof Head Office.
Corporate Office is located at the following
address. 40-A,Zafar Ali Road, Gulberg -V,Lahore
Phones: (042) 35872392-97
Fax: (042) 35872398 E-Mail: [email protected]
Web Site:www.mitchells.com.pk..
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ENDING DATE OF LATEST FISCAL YEAR OF
COMPANY
All annual financial statements of any business untior firms is prepare at the end of every fiscal year . Allstatements of MITCHELL’S are prepared atseptember 30 of each year. So it is clear to us that
the fiscal year of MITCHELL’S october 1 toSEPTEMBER 30. Shown for under standing
MITCHELL’S FRUIT FARM
Balance sheet For September 30, 2012
“For September 30, 2012” shows us the ending dateof fiscal year and next day will start date of fiscal
year.
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DESCRIPTION OF COMPANIES PRINCIPAL
PRODUCTS AND SERVICES
MITCHELL’S FRUIT FARM has two type of
product
Grocery product
Confectionary product
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GROCCERY PRODUCTS OFCOMPANY
Grocery product Jam, jellies and marmalade
15 products
Squashes and syrups
22 products
Ketchups and sauces
20 products
Canned food
19 products
Fruit drinks 13 products
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CONFECTIONARY PRODUCT OFCOMPANY
.Confectionary product
Chocolates22 products
Sugar Confectionary
10 products
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THE M IN GEOGR PHIC L RE OF MITCHELL’S
FRUIT FARM
Mitchell’s fruit farm is every where in pakistan. But finalproducts are most suitable in urban area for pakistan, andthe head office in pakistan are in lahore , islambad andkarachi . So these act as hubs for strong networking.Mitchells have good market control over market .The sale
of company shows that they have major sale in all bigcities i.e Lahore , Islambad , Karachi , Multan , Faisalabad,Peshawar , Quetta , and other major cities of pakistan.
The distribution geographical network also depends onproduct type of company .If I took pickles , there are
more chances that we will get it by any super store inpakistan in any city but when I go for bottled water then, itis dificult to see it in even Lahore
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UDITOR’S N ME ND UDITOR’S REVIEW
Name The independent auditor of Mitchell’s company is an auditing firm A.F.Ferguson & Company (Chartered Accountants)
We have audited the balance sheet of Mitchell’s Fruit Farm Limited as at
september 30’ 2012 and the related profit and loss accounts, statementof comprehensive income,cash flow statement and statement of owner’sequity togather with notes forming part therof, for the year then endedand we state that we have obtained all information and explanationswhich, to the best of ur knowledge and belief ,were necessary for thepurposes of our audit.
It is responsibilty of company;’s management to establish and maintain a
systwm of internal control, and prepare and present the abobe saidstatement in conformity with the approved accounting standards and therequirements of the companies ordience,1984 . Our responsibility is toexpress an opinion on these statements based on our audit.
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INCOME STATEMENT
MITCHILL’S FRUIT FARM has multistep income statement. Gross profit = net sale - cost of good sold
Gross profit = 1,884,503,125 – 1,421,375,606
= 462,767,519
Income from operation = gross profit – admistration expens –
distribution and marketing expenses- other operating expenses +
other operation income
= 462,767,519 – 84,567,766 – 206,795,747 -12,104,042+160,623,676
= 175,323,158
Net income = income from operations – interest expense – incometaxe expenses
=175,323,676 – 22,964,486 – 44,009,003
= 108,350,155
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INCOME STATEMENT
Earnings per share = net income/ total number ofshare
Total number of share= 5,040,000
Net income = 108,350,155
Earning per share = 108,350,155/5,040,000 = 21.50
The net income of company 2011 was 73,425,209and 2012 is 108,350,155.That show the increase
34,924,946. This show that company is working goodand the earning per share is also increasedfrom14.57 to 21.50 which show good returns to shareholder and this incearse also attract to new people tofinance.
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INCOME STATEMENT
Identify any gains or losses: there was no gain or loss
Non-operating items:
no operating item is mentioned
Income taxes:
The income tax amount in 2012 is Rs.(44,009,003)and in 2011 is Rs. (34,721,057).
Earnings per Share:
Earnings per share of the company are as follows year 2012= EPS Basic: 21.50
year 2011= EPS Basic: 14.57
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BALANCE SHEET
For Sep ,30 ,2011
Asset = liabilities +owner’s equity
763,421,179 =403,926,208+359,494,971
763,421,179 = 763,421,179
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BALANCE SHEET
For , Sep, 30, 2012
Asset = liabilities +owner’s equity
814,085,703 = 381,520,577+432,565,125 814,085,703 = 814,085,703
Balance sheets of both years of 2011 and
2012 are showing that both asset side andliabilities sied are equal to each other.
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BALANCE SHEET
the balance sheet of Mithchel’s fruit farm is
classified balance sheet, in which different
categories or items are given.
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BALANCE SHEET INCLUDES
Current asset Stors,spares and tools Stock in trade
Trade debt
Advances ,deposited and receivable
cash and bank balances Non current assets
Property, plant and equipment
Intangible asset Biological asset Liabilities of the company component
Current liabilities
Short run debt payable
Creditors accrued and other liabilities Accrued finance cost on Short term running finance
Non current asset
Deferred liabilities Capital and reserves
Issued ,subscribed and paid in capital
Reserves
Inappropriate profit
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ACCOUNTING STANDARDS\POLICIES;
These financial statements have been
prepared in accordance with approved
accounting standards as applicable in
Pakistan
Operating fixed assets except freehold land
are stated at cost less accumulated
depreciation and any identified impairmentloss. Freehold land is stated at cost less any
identified impairment loss.
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ACCOUNTING STANDARDS POLICIES
Capital work-in-progress is stated at cost lessany identified impairment loss. All expenditureconnected with specific assets incurred duringinstallation and construction period are carriedunder capital work-in-progress. These aretransferred to operating fixed assets .
Intangible assets represents the cost of
computer software acquired and stated at costless accumulated amortization and anyidentified impairment loss
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RELATIONSHIP AMONG FINANCIAL
STATEMENTS
1.Income statement relation ship with statement ofchanges in equity
The income statement for sep 30, 2012 shows th netincome after income taxes of 44,009,003 .
This amount of income is further noted in statement ofequity for SEP, 30,2012 and Mitchal’s total equtiy at theend of SEP, 30 , 2012 comes 432,565,126.
2.Statement of changes in equity ‘s relationship withbalance sheet statement
This amount of equity is enter in balance sheet for SEP,30, 2012 and we get our total liabilities plus total equityexactly equal to our total asset that are equal to814,085,703.