EFFICIENCY RATIO • Asset Turnover Ratio = Sales/ Total Assets • Net Working Capital Turnover = Sales / Net Working Capital LIQUIDITY RATIO • urrent Ratio = Current Asset/Current Liabilities SOLVENCY RATIO • Debt to Equity Ratio=Total Liabilities/Total Equity • Debt Ratio = Total Liabilities / Total Assets
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
D
| CONSOLIDATED |
|||
| December 31, | December 31, | PERCENTAGE | |
| 2021 | 2020 | ||
| USD | USD | ||
| Assets | |||
| Current assets | |||
| Cash and cash equivalents | 34,115,412 | 25,681,845 | |
| Short-term financial instruments | 71,417,748 | 80,798,680 | |
| Short-term financial assets at amortized cost | 2,944,705 | 2,409,853 | |
| Short-term financial assets at fair value through profit or loss | |||
| 35,624 | 62,452 | ||
| Trade receivables | 35,585,565 | 27,065,012 | |
| Non-trade receivables | 3,930,828 | 3,150,548 | |
| Prepaid expenses | 2,042,001 | 1,980,685 | |
| Inventories | 36,172,043 | 28,007,314 | |
| Other current assets | 4,441,629 | 3,281,589 | |
| Assets held-for-sale | - | 812,370 | |
| Total Current Assets | 190,685,555 | 173,250,348 | |
| Non-current assets | |||
| Financial assets at fair value | |||
| through other comprehensive income | 12,206,843 | 10,991,369 | |
| Financial assets at fair value | |||
| through profit or loss | 1,333,227 | 1,051,455 | |
| Investment in associates and joint ventures | 7,807,235 | 7,059,510 | |
| Property, plant and equipment | 131,045,055 | 112,711,289 | |
| Intangible assets | 17,687,491 | 16,142,396 | |
| Net defined benefit assets | 2,455,722 | 1,184,777 | |
| 3,724,515 | 3,736,564 | ||
| Other non-current assets | 5,942,625 | 4,469,261 | |
| Total Non Current Assets | 182,202,713 | 157,346,621 | |
| Total assets | 372,888,268 | 330,596,969 | |
| December 31, | December 31, | ||
| 2021 | 2020 | ||
| USD | USD | ||
| Liabilities and Equity | |||
| Current liabilities | |||
| Trade payables | 11,758,903 | 8,512,568 | |
| Short-term borrowings | 11,963,817 | 14,468,526 | |
| Other payables | 13,621,954 | 10,400,341 | |
| Advances received | 1,070,547 | 1,001,157 | |
| Withholdings | 1,131,066 | 851,780 | |
| Accrued expenses | 24,410,498 | 21,265,935 | |
| Current income tax liabilities | 5,899,094 | 3,872,280 | |
| Current portion of long-term liabilities | 1,162,459 | 625,906 | |
| Provisions | 4,696,159 | 3,801,736 | |
| Other current liabilities | 1,304,292 | 985,685 | |
| Liabilities held-for-sale | - | 296,077 | |
| Total Current Liabilities | 77,018,789 | 66,081,991 | |
| Non Current Liabilities | |||
| Debentures | 444,220 | 828,719 | |
| Long-term borrowings | 2,505,164 | 1,747,852 | |
| Long-term other payables | 2,614,668 | 1,470,948 | |
| Net defined benefit liabilities | 407,206 | 405,960 | |
| 20,276,394 | 16,441,621 | ||
| Long-term provisions | 2,016,428 | 919,001 | |
| Other non-current liabilities | 1,107,582 | 1,508,485 | |
| Total Non Current Liabilities | 29,371,662 | 23,322,586 | |
| Total liabilities | 106,390,451 | 89,404,577 | |
| December 31, | December 31, | ||
| 2021 | 2020 | ||
| USD | USD | ||
| Equity attributable to owners of the Company | |||
| 104,420 | 104,420 | ||
| Ordinary shares | 680,052 | 680,052 | |
| Share premium | 3,849,223 | 3,849,223 | |
| 256,153,287 | 236,927,198 | ||
| Other components of equity | -1,860,392 | -7,593,008 | |
| Accumulated other comprehensive income attributable to assets held-for-sale | |||
| - | -10,604 | ||
| 258,926,590 | 233,957,281 | ||
| Non-controlling interests | 7,571,227 | 7,235,111 | |
| Total equity | 266,497,817 | 241,192,392 | |
| Total liabilities and equity | 372,888,268 | 330,596,969 | |
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
| 2021 | 2020 | PERCENTAGE | |
| USD | USD | ||
| Profit for the year | |||
| 34,881,111 | 23,081,768 | ||
| Other comprehensive income (loss) | |||
| Items that will not be reclassified subsequently to | |||
| profit or loss: | |||
| Gain on valuation of financial assets at fair value | |||
| through other comprehensive income, net of tax | 2,605,452 | 2,187,514 | |
| Share of other comprehensive income of | |||
| associates and joint ventures, net of tax | 45,290 | 4,887 | |
| Remeasurement of net defined benefit assets, | |||
| net of tax | -458,532 | -628,931 | |
| Items that may be reclassified subsequently to | |||
| profit or loss: | |||
| Share of other comprehensive income (loss) of | |||
| associates and joint ventures, net of tax | 139,990 | -42,731 | |
| Gain (loss) on overseas business translation, | |||
| net of tax | 6,366,250 | -4,702,717 | |
| Gain (loss) on valuation of |
|||
| derivatives | 44,060 | -29,199 | |
| Other comprehensive income (loss) for the year, | |||
| net of tax | 8,742,510 | -3,211,177 | |
| Total comprehensive income for the year | 43,623,621 | 19,870,591 | |
| Comprehensive income attributable to: | |||
| Owners of the Company | 42,861,591 | 19,556,345 | |
| Non-controlling interests | 762,030 | 314,246 | |
| CONSOLIDATED INCOME STATEMENT | |||
| 2021 | 2020 | PERCENTAGE | |
| USD | USD | ||
| Revenue | 244,388,604 | 206,981,172 | |
| Cost of sales | 145,451,851 | 126,290,010 | |
| Gross profit | 98,936,753 | 80,691,162 | |
| Selling and administrative expenses | 53,806,176 | 49,230,711 | |
| Operating profit | 45,130,577 | 31,460,451 | |
| Other non-operating income | 1,927,888 | 1,209,745 | |
| Other non-operating expense | 1,797,022 | 2,175,425 | |
| Share of net profit of associates and joint ventures | 637,719 | 442,733 | |
| Financial income | 7,467,173 | 10,722,497 | |
| Financial expense | 6,734,165 | 9,892,548 | |
| Profit before income tax | 46,632,170 | 31,767,453 | |
| Income tax expense | 11,751,059 | 8,685,685 | |
| Profit for the year | 34,881,111 | 23,081,768 | |
| Profit attributable to | |||
| Owners of the Company | 34,301,040 | 22,804,707 | |
| Non-controlling interests | 580,071 | 277,061 | |
| Earnings per share | |||
| (in Korean won, in US dollars) | |||
| - Basic | 5.05 | 3.36 | |
| - Diluted | 5.05 | 3.36 |
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