As the financial analysts of Mezza Holding Company you are required to write a Memo to the Financial Manager describing the performance of the company and your suggestions on future improvements based on the following financial statements. . State the purpose of your Memo. Describe and interpret ratio results and provide company’s performance analysis based on them. Describe the weaknesses and strength of the company’s financial data. Provide suggestions on how to improve company’s performance.
As the financial analysts of Mezza Holding Company you are required to write a Memo to the Financial Manager describing the performance of the company and your suggestions on future improvements based on the following financial statements. . State the purpose of your Memo. Describe and interpret ratio results and provide company’s performance analysis based on them. Describe the weaknesses and strength of the company’s financial data. Provide suggestions on how to improve company’s performance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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As the financial analysts of Mezza Holding Company you are required to write a Memo to the
.
- State the purpose of your Memo.
- Describe and interpret ratio results and provide company’s performance
analysis based on them.
- Describe the weaknesses and strength of the company’s financial data.
- Provide suggestions on how to improve company’s performance.
Transcribed Image Text:Mezzan Holding Company K.S.C.P. and subsidiaries
Consolidated statement of profit or loss
for the year ended 31 December 2019
Notes
2019
2018
KD
KD
(Restated)
Revenues
222,466,358
207,471,048
(173,721,879) _(163,452,214)
48,744,479
Cost of revenue
Gross profit
44,018,834
Selling and distribution expenses
General and administrative expenses
(18,462,145)
(16,844,976)
(18,330,064)
(18,549,573)
690,220
1,886,735
10,511,020
Other income
23
Results from operating activities
12,642,490
Finance costs
(3,666,838)
(2,764,974)
Share of (loss) / profit of associates
Impairment of non-financial assets- net
Profit for the period before contribution to Kuwait
Foundation for the Advancement of Sciences ("KFAS"),
National Labour Support Tax ("NLST"), Zakat and
board of directors' remuneration
(96,381)
116,918
24
(2,244,509)
(748,020)
7,114,944
(74,030)
(211,282)
6,634,762
KFAS
(59,326)
NLST
(134,477)
(83,697)
(75,000)
6,670,935
Zakat
(53,138)
Board of directors' remuneration
12
(50,000)
6,337,821
Profit for the year
Profit attributable to:
5,635,637
702,184
Shareholders of the Company
6,959,019
Non-controlling interests
19
(288,084)
6,337,821
6,670,935
Earnings per share (basie and diluted) (fiks)
18.50 fils
22.56 fils
The accompanying notes form an integral part of these consolidated financial statements.
Transcribed Image Text:Mezzan Holding Company K.S.C.P. and subsidiaries
Consolidated statement of financial position
as at 31 December 2019
Notes
2018
KD
2019
KD
(Restated)
Assets
Property, plant and equipment
Right of use assets
Intangible assets
78,105,537
3,252,269
29,400,613
1,071,824
3,990,822
722,751
79,458,250
13,528,571
1,241,225
4,095,856
585,810
Investment in associates
Investment properties
Biological assets
Investments at fair value through other comprehensive
income
Non-current assets
30
30
1,933,479
118,477,295
1,692,239
100,601,951
Inventories
10
Trade and other receivables
Cash and cash equivalents
Current assets
46,308,056
78,362,148
17,182,905
141,853,109
260,330,404
40,971,215
58,897,761
16,677,660
116,546,636
217,148,587
13
Total assets
Equity
Share capital
Treasury shares
Statutory reserve
Voluntary reserve
Fair value reserve
Foreign currency translation reserve
Other reserve
Retained eaming
Equity attributable to sharcholders of the Company
Non-controlling interests
Total equity
14
15
31,132,500
(4,563,800)
16,601,335
16,601,335
1,120,264
(472,540)
(1,763,509)
46,939,964
105,595,549
8,024,852
113,620,401
31,132,500
(4,463,160)
16,601,335
16,601,335
975,219
(471,149)
(1,210,669)
46,177,047
105,342,458
4,489,938
109,832,396
16
17
18
19
Liabilities
Loans and borrowings
Lease liabilities
20
1,093,230
2,030,641
7,275,294
10.399,165
2,552,760
Retirement benefit obligation
21
5,845,501
8,398,261
Non-current liabilities
Loans and borrowinga
Bank overdrafts
Lease liabilities
Trade and other payables
20
85,924,560
4,556,790
975,990
44,853,498
136,310,838
146,710,003
260,330,404
50,702,971
8,906,974
13
39,307,985
98,917,930
107,316,191
217,148,587
22
Current liabilities
Total liabilities
Total equity and lhities
The accompanying notes ferm tegral part of these consolidated financial statements.
Mohammed Jassim Al Wazzan
Vice Chairman
Garrett Walsh
Chief Executive Ofleer
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