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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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
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 Financial Manager describing the performance of the company and your suggestions on future improvements based on the following financial statements.

.

  1. State the purpose of your Memo.
  2. Describe and interpret ratio results and provide company’s performance

analysis based on them.

  1.  Describe the weaknesses and strength of the company’s financial data.
  2. Provide suggestions on how to improve company’s performance.
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 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.
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
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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