Evaluate the company’s latest annual financial statements (balance sheet, income statement, and cash flow statement) and comment on the company's financial performance and position. In your response, use the requirements of  IAS 1 as a guide.

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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UNILEVER CARIBBEAN LIMITED Statement of Financial Position 

December 31, 2022

 (Expressed in Trinidad and Tobago Dollars) 

         

                                                                      Notes          2022            2021

                                                                                          $'000          $'000

ASSETS

 Non-current assets Property, 

 plant and equipment                                         8               4,285               8,943 

 Retirement benefit asset                                  9(i)           99,142          137,039

 Deferred tax asset                                            10            14,250              6,459                                              

                                                                                          117,677          152,441

Current assets

 Inventories                                                         11                 29,250       26,808 

Taxation recoverable                                                               7,575           7,575

 Trade and other receivables                              12                  63,988     102,948

 Due from related companies                              13                  74,491     176,388 

Cash at bank and in hand                                                        171,778     118,132

 Assets held for sale                                           31                     -              58,146

                                                                                                347,082       489,997

 Total asset                                                                               464,759      642,438

 

EQUITY AND LIABILITIES EQUITY

 Stated capital                                                      14                   26,244      26,244 

 Property revaluation surplus                                                        -              36,568 

 Retained earnings                                                                      311,319   414,131

 Total equity                                                                                 337,563   476,943

 

LIABILITIES

 Non-current liabilities 

Retirement and termination benefit obligation           9(ii)                 3,085       6,989

 Lease liabilities                                                          27                   1,979          605 

Deferred tax liabilities                                                 10                    29,105  40,104                                     

                                                                                                           34,169  47,698

Current liabilities 

Trade and other payables                                           15                    72,280    63,400 

Lease liabilities                                                            27                         711      4,170 

Due to related companies                                           13                    14,878     31,528

 Provisions for other liabilities                                     16                      5,158      15,750 

Liabilities directly associated with the assets held for sale            31                         -            2,949

                                                                                                             93,027    117,797

 

 Total liabilities                                                                                     127,196   165,495

Total equity and liabilities                                                                     464,759   642,438

The notes are an integral part of these financial statements. On March 29, 2023 the Board of Directors of Unilever Caribbean Limited authorised these financial statements for issue.

 

Evaluate the company’s latest annual financial statements (balance sheet, income statement, and cash flow statement) and comment on the company's financial performance and position. In your response, use the requirements of  IAS 1 as a guide.

 

CASH FLOWS FROM OPERATING ACTIVITIES
S'000
S'000
Profit for the year
9.769
188,812
Adjustments for:
Depreciation
8
4,947
5,375
Interest expense
20
450
642
(Gain) loss on disposal of and impairment losses on PPE
(4,493)
Gain on sale of discontinued operations
2,145
(164,423)
Net pension benefit
9
(15,269)
(1,469)
Contributions paid
Interest income
Taxation (credit) expense
9
(2,595)
(3,383)
20
(551)
(7)
21
(4,394)
10,940
(12,136)
38,632
Changes in:
Inventories
Trade and other receivables
(2,442)
(1,051)
38,960
(11,111)
Due from related companies
Trade and other payables
Provisions for other liabilities
Due to related companies
101,897
(135,280)
7,154
9,880
(10,592)
3,439
(16,650)
(7,867)
Cash from operating activities
Interest paid
Taxation Refund
Taxation paid
Net cash generated from (used in) operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
551
7
Purchase of plant and equipment
8
(1,434)
(96)
Proceeds from sale of property, plant and equipment
67,345
2,466
Proceeds from sale of discontinued operation
169,846
Net cash generated from investing activities
66,462
172,223
CASH FLOWS FINANCING ACTIVITIES
106,191
(103,358)
20
(450)
(642)
1,710
(1,787)
(1,713)
103,954
(104,003)
Dividends paid
Payment of lease liabilities
Net cash used in financing activities
Increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Represented By: Cash at bank and in hand
23
(112,849)
(20,995)
27
(3,921)
(4,477)
(116,770)
(25,472)
53,646
42,748
118,132
75.384
171,778
118,132
171,778
118,132
Transcribed Image Text:CASH FLOWS FROM OPERATING ACTIVITIES S'000 S'000 Profit for the year 9.769 188,812 Adjustments for: Depreciation 8 4,947 5,375 Interest expense 20 450 642 (Gain) loss on disposal of and impairment losses on PPE (4,493) Gain on sale of discontinued operations 2,145 (164,423) Net pension benefit 9 (15,269) (1,469) Contributions paid Interest income Taxation (credit) expense 9 (2,595) (3,383) 20 (551) (7) 21 (4,394) 10,940 (12,136) 38,632 Changes in: Inventories Trade and other receivables (2,442) (1,051) 38,960 (11,111) Due from related companies Trade and other payables Provisions for other liabilities Due to related companies 101,897 (135,280) 7,154 9,880 (10,592) 3,439 (16,650) (7,867) Cash from operating activities Interest paid Taxation Refund Taxation paid Net cash generated from (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Interest received 551 7 Purchase of plant and equipment 8 (1,434) (96) Proceeds from sale of property, plant and equipment 67,345 2,466 Proceeds from sale of discontinued operation 169,846 Net cash generated from investing activities 66,462 172,223 CASH FLOWS FINANCING ACTIVITIES 106,191 (103,358) 20 (450) (642) 1,710 (1,787) (1,713) 103,954 (104,003) Dividends paid Payment of lease liabilities Net cash used in financing activities Increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Represented By: Cash at bank and in hand 23 (112,849) (20,995) 27 (3,921) (4,477) (116,770) (25,472) 53,646 42,748 118,132 75.384 171,778 118,132 171,778 118,132
Notes
2022
2021
S'000
$'000
Continued operations
Revenue
17
256,146
233,186
Cost of sales
(150,897)
(127,208)
Gross profit
Expenses
Selling and distribution costs
Administrative expenses
Impairment reversal on trade receivables
105,249
105,978
(60,554)
(62,936)
(16,252)
(17,615)
358
18
(76,448)
(80,533)
28,801
25,445
Operating profit before restructuring costs
Restructuring cost comprising:
30
Net gain (impairment) of property, plant and equipment
Manpower cost
Gain on curtailment and settlement
Other expenses
4,493
(2,145)
(31,528)
10,752
(14,272)
(3,423)
(30,555)
(5,568)
Operating (loss) profit after restructuring costs
(1,754)
19,877
Finance income (expense)-net
20
101
(635)
Other income
19
7,028
5,391
Profit before tax
5,375
24,633
Taxation credit (expense)
21
4,394
(7,702)
Profit from continued operations
9,769
16,931
Profit from discontinued operations, net of tax
171,881
Profit for the year
9,769
188,812
Transcribed Image Text:Notes 2022 2021 S'000 $'000 Continued operations Revenue 17 256,146 233,186 Cost of sales (150,897) (127,208) Gross profit Expenses Selling and distribution costs Administrative expenses Impairment reversal on trade receivables 105,249 105,978 (60,554) (62,936) (16,252) (17,615) 358 18 (76,448) (80,533) 28,801 25,445 Operating profit before restructuring costs Restructuring cost comprising: 30 Net gain (impairment) of property, plant and equipment Manpower cost Gain on curtailment and settlement Other expenses 4,493 (2,145) (31,528) 10,752 (14,272) (3,423) (30,555) (5,568) Operating (loss) profit after restructuring costs (1,754) 19,877 Finance income (expense)-net 20 101 (635) Other income 19 7,028 5,391 Profit before tax 5,375 24,633 Taxation credit (expense) 21 4,394 (7,702) Profit from continued operations 9,769 16,931 Profit from discontinued operations, net of tax 171,881 Profit for the year 9,769 188,812
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