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Submitted TO:Sir Ali AbbasSubmitted By:Rukhshan Tariq(12014854-005)Zubair Raza(12014854-011)Saad Mehmood(12014854-032)Luqman Akram(12014854-043)Naveed Alam(12014854-000)B.Com(Hons.) 7th A

University Of Gujrat

AcknowledgementIn the Name of Allah the most Merciful and the mostBeneficent We are very thankful to Almighty ALLAH who gave us the opportunity, courage and insight to explore more knowledge to complete this whole and for his blessings that have brightened in all parts of our lives. In scripting this project we are guided by our experience, knowledge and interest in the subject Analysis of Financial Reporting

ContentsAcknowledgement2INTRODUCTION3HISTORY4Vision:6Mission:6Company Profit &Loss Account and Balance Sheet6Profit & Loss Account6Balance Sheet7Financial Ratio Analysis8Liquidity Ratios:8Solvency Ratio:8Profitability Ratios:9

INTRODUCTIONNestle is the world's leading nutrition, health and wellness company today and was founded in 1866 by Henri Nestle. Nestle have more than 280,000 employees worldwide but however have more than 2500 employees in Nestle Pakistan and has factories or operations in almost every country in the world. More Nestle 5th largest company in the world.Being the world's leading bottled water company is based on a firm economic model strong brands, global presence, innovation capacity, environmental stewardship and passionate people.Henri Nestle chose his own coat of arms to represent the company's philosophy: a bird's nest, with a mother feeding her young. The image represents our core values: care, family values, nutrition, healthy growth, safety and comfort. It is a guarantee of quality and a commitment to our responsibilities as a food company and experts in nutrition. Over the years we have reaffirmed our commitment to wellness, helping our consumers to live longer, healthier, and more productive lives, no matter their age, gender or socioeconomic status.Executive NameDesignation

SYED YAWAR ALIChairman

ROLAND DECORVETCEO

JAN H. SASSENDirector

ROGER STETTLERDirector

FRITZ VAN DIJKDirector

A. CANTACUZENEDirector

RAYMOND FRANKEDirector

HISTORYThe history begins back in 1866, when the first European condensed milk factory was opened in Cham, Switzerland, by the Anglo-Swiss Condensed Milk Company.Henri Nestle, a pharmacist, developed a food for babies who were unable to breastfeed. His first success was a premature infant who could not tolerate his mother's milk or any of the usual substitutes which eventually became the first Nestles customer. After Nestle's new formula saved the child's life and soon,farmine was being sold in 1874,Jules Monnerat purchased Nestle and collectively tye launched the condensed milk. In 1905 Nestle merged with Anglo-Swiss which was an condensed milk company. Soon after Nestle established its roots all over Europe to cater the need of the customers of Europe,as Nestle fame was on the top so Nestle thought to start theproduction function all over the world to increase the customer demand and meet or capture more markets. Decision to go multinational was a fruitful idea, so as now nestle has operations in America, India, England, Brazil, Australia, Pakistan, Hungary, France, Belgium, Italy, Spain and various other countries around the globe. Nestle are now in all seven continents & having more than 522 factories in83 countries. 1867 In Vevey, Switzerland, the founder Henri Nestl, a German pharmacist, launched his Farine lactee a combination of cows milk, wheat flour and sugar, saving the life of a neighbors child. Nutrition has been the cornerstone of our company ever since.Henri Nestl, himself an immigrant from Germany, was instrumental in turning his Company towards international expansion from the very start. We owe more than our name, our logo and our first infant-food product to our founder. Henri Nestl embodied many of the key attitudes and values that form part and parcel of our corporate culture: pragmatism, flexibility, the willingness to learn, an open mind and respect for other people and cultures.Peter Brabeck-Letmathe, Nestle chairman.Vision:Nestls vision is to be the globally recognized leading Nutrition, Health and Wellness (NHW) Company. Nestl Pakistan subscribes fully to this vision and the values that come with it. In particular, we envision: Leading a dynamic, passionate and professional workforce which is proud of our heritage and positive about the future Meeting the nutritional needs of consumers of all ages from infancy to old age, from nutrition to pleasure, through an innovative portfolio of branded food and beverage products of the highest quality Delivering shareholder value through profitable long-term growth, while continuing to play a significant and responsible role in the social, economic, and environmental sectors of PakistanMission:To positively enhance the quality of life of people of Pakistan by all that we do through our people, our brands, products and our Creating Shared Value (CSV) initiatives.

Company Profit &Loss Account and Balance SheetProfit & Loss Account 000 Year20142013201220112010

Sales96,457,74386,226,86979,087,69664,824,36451,487,302

Cost Of Sales69,133,75362,066,07257,564,26548,099,04637,608,733

Gross Profit27,323,99024,160,79721,523,43116,725,31813,878,569

Operating Profit14,113,46311,471,27010,966,1208,457,9076,857,854

Other Income523,892194,565160,142159,545170,491

Finance Cost2,155,6372,113,0961,827,9691,050,355513,081

Profit Before Tax110,009,1688,112,9627,977,9746,502,8645,696,180

Taxation3,079,8972,246,1992,113,4631,834,5071,583,331

Profit After Tax7,929,2715,866,7635,864,5114,668,3574,112,849

Balance Sheet 000Year20142013201220112010

Cash226,143720,065760,831702,025505,516

Inventory9,763,9877,925,1328,025,6537,064,1704,602,019

Current Asset18,405,78017,936,48316,905,48413,395,0178,352,923

InvestmentsN/AN/A21,970,957N/AN/A

Fixed Asset33,324,91533,828,99633,967,23321,601,08914,447,083

Total Assets51,730,69551,765,47950,872,71734,996,10622,800,006

Current Liability27,777,24018,000,98920,003,41316,788,4559,806,572

Fixed Liability11,325,83022,429,37519,309,04010,778,9887,563,787

Total Liabilities39,103,07040,430,36439,312,45327,567,44317,370,359

Paid Up Capital453,496453,496453,496453,496453,496

Total Equity12,627,62511,859,15711,560,2647,612,4165,581,873

Financial Ratio AnalysisLiquidity Ratios:Quick Ratio = Quick Assets / C. LiabilitiesSolved: (2014)= 8641813/ 27777240 =0.31Solved: (2013)= 10011351/ 18000989 =0.55Solved: (2012) = 8879831\20003413 =0.44Solved: (2011)= 6330847/ 16788455 =0.38Solved: (2010)= 3750904/ 9806572 =0.38

Current Ratio = Current Assets/ Current Liabilities.Solved: (2014)= 18405780/27777240 =0.66Solved: (2013)= 17936483/18000989 =1.00Solved: (2012)= 16905484/20003413 =0.85Solved: (2011)= 13395017/16788455 =0.80Solved: (2010)= 8352923/9806572 =0.85Year20142013201220112010

Quick Ratio0.310.560.440.380.38

Current Ratio0.661.000.850.800.85

Solvency Ratio:Total Debt to Equity = Total debt\ Total share holders EquitySolved: (2014)= 39103070/12627625 = 309.66Solved: (2013)= 40430364/11859157 = 340.92Solved: (2012)= 39312453/11560264 = 340.07Solved: (2011)= 27567443/7612416 = 362.14Solved: (2010)= 17370359/5581873 = 311.19

Total Debt to Assets = Total Debt \ Total AssetsSolved: (2014)= 39103070/51730695 = 75.59Solved: (2013)= 40430364/51765479 = 78.10Solved: (2012)= 39312453/50872717 = 77.28Solved: (2011)= 27567443/34996106 = 78.77Solved: (2010)= 17370359/22800006 = 76.19

Year20142013201220112010

Total Debt to Equity Ratio309.66340.92340.07362.14311.19

Total Debt to Asset Ratio75.5978.1077.2878.7776.19

Profitability Ratios:Net Profit margin = Net income\ RevenueSolved: (2014)= 7929271/96457743 =8.22Solved: (2013)= 5866763/86226869 =6.80Solved: (2012)= 5864511/79087696 =7.42Solved: (2011)= 4668357/64824364 =7.20Solved: (2010)= 4112849/51487302 =7.99Gross Profit margin = Gross Profit\ RevenueSolved: (2014)= 27323990/96457743 =28.33Solved: (2013)= 24160797/86226869 =28.02Solved: (2012)= 21523431/79087696 =27.21Solved: (2011)= 16725318/64824364 =25.80Solved: (2010)= 13878569/51487302 =26.96Operating Profit Margin = EBIT\ RevenueSolved: (2014)= 14113463/96457743 =14.63Solved: (2013)= 11471270/86226869 =13.30Solved: (2012)= 10966120/79087696 =13.87Solved: (2011)= 8457907/64824364 =13.05Solved: (2010)= 6857854/51487302 =13.32ROE = Net Income\ Share Holders EquitySolved: (2014)= 7,929,271/12627625 =62.79 Solved: (2013)= 5,866,763/11859157 =49.47Solved: (2012)= 5,864,511/11560264 =50.73Solved: (2011)= 4,668,357/7612416 =61.33Solved: (2010)= 4,112,849/5581873 =73.68'Year20142013201220112010

Net Profit Margin8.226.807.427.207.99

Gross Profit Margin28.3328.0227.2125.8026.96

Operating Profit Margin14.6313.3013..8713.0513.32

ROE62.7949.4750.7361.3373.68