Free Essay

To What Extent Are a Company’s Annual Report and Accounts Useful in Understanding and Analysing Its Market, Productive and Financial Performance? Discuss Using an Extended Example.

In: Business and Management

Submitted By tangfailam
Words 4657
Pages 19
For a company owning a worth business in any big stock market always have a tool to analyze its performance. The tool could be like an annual report which deliberately assesses a company’s fiscal health, financial status and market position within any specific period (Thomsett, 2007). Annual reports hold a great importance for organization, especially when the organization is owned by multiple owners or is a public limited firm (Thomsett, 2007). To develop the prospect of the company there is a need for a document like an annual report which gives year after year information about the company performance and growth tactics (Thomsett, 2007). There are different reasons of why enterprises give importance to annual reports. Some of the reasons include clean market analysis, comparative financial assessment and productivity analysis which is no other possible if there are no annual reports to compare. It has been that in markets where there is a major population of investors and share holders then enterprises come out regularly with the activity of reporting (Stittle, 2003). Enterprises know that by announcing their financial health (annual report) publically, they are able to connect to their shareholders, distributors and investors, which is very important for both growth and expansion of the business. Meanwhile, annual reports also assess market position as by expressing financial numbers the feedback of market (consumer, investor, shareholder and competitor) is testified and generated (Stittle, 2003). This study is going to access the importance of annual reports in terms of market analysis, productivity analysis and financial health assessment. The study will focus on Tesco, a giant retailer company of UK in order to better understand the importance of annual reporting (Flack, 2007). Tesco being a global retailer company holds a comprehensive reporting system. The company operates in more than 10 countries across the world, for which it has to keep a view on its global performance level. The annual reports of Tesco serve the same purpose as they provide information of what company has achieved in the previous times and what it aims for the future coming years (Tesco, 2012). Generally enterprises use annual reports to express three major types of information and that are market information, financial information and information related to productivity. Tesco’s annual reports also hit the same purpose as they project information of market competencies, company’s fiscal growth and revenues with respect to output levels (Thomsett, 2007). Tesco’s annual reports talk about the market situation in which the company operates. The reports indicate different market segments, those in which Tesco is successful and those where the company sets back. There is a summarized overview of different business constraints which Tesco highlights in its annual reports. Constraints include trading levels, profit and loss statements, revenues of a particular fiscal, growth, number of employees working, and number of stores operating in one particular fiscal. By giving the overview of all such constraints, Tesco is able to analyze its present market situation (Tesco, 2012). The report comes out at the end of each fiscal giving an overview of complete market statistics. This enables managers to assess present market in terms of future growth prospect. From Tesco’s annual reporting system it can be said that annual reports play a decisive role in market analysis. By having such event based information as in Tesco’s reports, the company is able to compare its past market with the relativistic present market (Tesco, 2012). Actually the reports are projections of periods allowing the planning to make true real assessment. This helps in creating market picture, which shows that how much there is stability and in which areas the company has to mainly focus for the coming periods of time. According to Tesco annual report (2012), the company showed a trading profit of £2,480 billion in UK and similarly in Asia the number reduced to £737. This highlighted more stability of Tesco in UK market than in Asian market and prepares the company to address its Asian continental business. Projecting this type of useful information is part of Tesco’ annual report documents, as this is for the help of planning administrators (Tesco, 2012).
Tesco’s Annual Reports on Financial and Productivity Analysis On general companies launch annual reports in order to leak out their financial progress which is one reflection of financial health status. One of the aims of annual reports is to bring the investor close to enterprise’s prospect (Tesco, 2012). This aim adjusts useful financial information in annual reports which is essential for both the company administrators and for outsiders (investors, shareholders). By the help of such numeric information, the strategists are able to analyze a company’s financial health on a particular fiscal. Tesco being a multinational retailer stands with the same objective in its annual report system (Thomsett, 2007). The company utilizes its annual reports just to bring out useful financial information. Tesco’s reports include information like sales rate, profit rate, growth rate or revenues for a particular fiscal which are sufficient to indicate the financial status of the company within in the same period. This helps Tesco’s managers to understand the company’s financial health and status which is inevitably important to understand the financial performance of the company within a specific period (Tesco, 2012). According to Tesco annual report (2012), company recorded sales growth of 7.4% with profit growth of 1.3% respectively (Tesco, 2012). The similar report projected Tesco’s capital growth of 12.9% which was in comparison to 13.9% of the year 2011. This type of information is enough to reflect the financial performance of the company, which is also essential to access the future growth margins of the company (Tesco, 2012). It is to be obvious then when companies grow in terms of capital and expenditure they are showing good productive levels (Stittle, 2003). Annual reports play a decisive role in this respect as they project the key highlights of the company including new projects, day to day customer experience, employees stability and investors engagement, which are enough elements to understand the growth rate and productivity (Stittle, 2003). The same goes out to Tesco as it includes all the relativistic information which is necessary to evaluate growth levels. According to Tesco annual report (2011), the company projected its future investment plans more specifically in the UK retail market, which is showing significant growth and expansion in the recent times. The report highlighted Tesco’s investment plans in the clothing section which showed that the company had a good productive margin in the clothing sector (Tesco, 2011). From above analysis it can be said that Tesco believes in the annual report system, a system which is effective in presenting useful information. This information is further utilized by Tesco managers, in respect of market evaluation, financial assessment and productivity analysis (Tesco, 2011). The report system prepares Tesco for the future business prospects and hence is an important part of company’s assistance (Tesco, 2011). There are different reasons of why annual reports are important to enterprises. Some of the reasons are clean market analysis, comprehensive growth assessment and comparative financial evaluation, which are helpful to prepare future plans for the company (Stittle, 2003). Annual reports mostly include three types of information, market information, financial information and information related to growth and productivity. By general assessment of the reports strategists are able to understand overall performance of the company on a particular fiscal (Thomsett, 2007). Tesco an international retailing company also operates on annual reporting system. The company comes out deliberate with a year of year reporting where information is mostly based financials, market status and growth of the company. This type of information is important to both Tesco managers and investors as they have the idea on company’s real time progress by accessing the annual reported documents (Tesco, 2012). Hence it is to conclude that annual reports hold a major importance for an organization, especially when the organization is on the international grounds and requires a comprehensive tool of expression like annual reports (Tesco, 2011). Reference
Flack, E. (2007). The role of annual reports in a system of accountability. Sydney: Centre of Philanthropy.
Stittle, J. (2003). Annual Reports: How to Deliver Your Corporate Message to Stakeholders. Burlington: Gower Publishing, Ltd.
Tesco. (2011). Annual Report and Financial Statements. Cheshunt: Tesco.
Tesco. (2012). Annual Report and Financial Statements. Cheshunt:Tesco.
Thomsett, M. (2007). Annual Reports 101: What the Numbers and the Fine Print Can Reveal about the True Health of a Company. New York: AMACOM.

2. To what extent can improvements in productive flow and product quality lead to an increase in sales and profit?
The determination of value added involves various methods of calculation, which are compatible with the different definitions that attend to the concept. Although the concept remains the same, certain accounting approaches tend to exclude more items in the calculation than others, which often lead to different results. The challenge lies in the fact that there is no universal standards of determining value added (Hansen, Mowen, & Guan, 2009). Value added is usually obtained by adding the unit profit, unit labor cost, and the unit depreciation cost (Hansen, Mowen, & Guan, 2009). The unit profit is arrived at by calculating the difference between the production cost and the sale price. In order to determine the total value added is obtained by adding all the value added figures of all the units. Essentially, the difference between revenue and outside purchases is equivalent to total value added. In terms of analysis, the figure obtained of value added offers a range of interpretations. For instance, integrated companies usually regard value added as a higher portion of revenue whereas companies that are less integrated consider it as a lower portion of revenue.
Another method of approximating total value added is by combining total labor expense, operating profit, and depreciation expense in that order (Mowen, Hansen, & Heitger, 2012). According to standard procedure, the operating profit must come before depreciation expense. Labor expense includes such items as benefits, wages, and salaries. The figure of total labor expense is usually considered as a return to labor while the value of operating profit is generally considered as a return to capital. Capital comprises of items such as land, properties, and capital goods. Normally, it is considered important to follow the standard procedure when arriving at the different figures. Factors of production are usually considered in terms of value added when determining the figure of value added in macroeconomic calculations.
Calculating value added in national accounts usually involves capital and labor (Mowen, Hansen, & Heitger, 2012). Alternative definitions usually consider value added as the extra features, which extend over standard expectations of a given product or a service. Such items do not involve the cost of the product. According to some theoretical approaches, value added is considered as the difference in the prices incurred by a company over a product and the price paid by a customer for the same customer. As such, arriving at the figure of value added is through the determination of the difference in the prices. The figure is obtained by subtracting the company’s cost from the customer’s cost and then adding the figure of services to the results.
Theoretically, value added could be understood in terms of the different enhancements that a business puts on a particular product with the objective of increasing the value of the product (Mowen, Hansen, & Heitger, 2012). In this manner, value added is considered as a determination of the different qualities that are created on a given product or service. Value added can increase the price of a give product or its value. Generally, value added is considered as one of the ways in which a firm enhances the competitive advantage of its products or services. Other perspectives on value added describe it as an increase in the value of goods or services as they transit from one stage of production to another. This description derives from the assumption that goods and services will normally change in value as they pass through the different production stages. The figure of value added, according to this definition, is determined by calculating the difference between the value of inputs and the selling price of the product or service. On this note, inputs relate to purchased services and raw materials.
Alternatively, the figure is obtained by determining the difference between sales and the payments made to the suppliers. The three major components that describe value added include employees emoluments, returns on capital, and taxation. Returns on capitals are usually considered in terms of interests and dividends. In the conventional sense, value added is used for determining taxation. Value added tax is usually attached on items with regard to the level of difference between the selling price and the costs incurred in the production of a particular good or service. At this level, it becomes appropriate to consider some of the concepts that attend to the items considered for subtraction from the selling price. The cost of producing a particular service usually relates to the different kinds of items that combine to form the overheads of a given product or service.
Value added is also used in the determination of the size and growth of national economies (Mowen, Hansen, & Heitger, 2012). Combining the total of value added of different systems of production within an economy gives the figure of Gross Domestic Product (GDP). Besides determining the size of the national economies, value added is usually used to determine the size of any given company. Valuation of the strengths and weaknesses or strengths of a given company involves the determination of the value added. However, investors attach lesser interests to value added because it does not offer appropriate determinations of valuation measures. The value of profits and turnover are preferred to assess the size and performance of a company because they can be determined within the concept of vertical integration.
Usually, the process of preparing the value added statement involves the inclusion of sales and the amounts of money paid to suppliers (Hennig-Thurau, 2000). The statement also includes the distribution of value added. Generally, many countries embrace the concept of value added as one of the ways of determining the trends of performance of a company or business with regard to the nature of products or services. Companies use the figure of value added to determine the value of shares. On this note, value added is considered as an important feature in the disclosures to shareholders although it bears lesser relevance to other accounting indicators. On this score, it becomes important to consider the fact that the determination of value added must go alongside other accounting calculations for the purposes of determining the most appropriate position of a business in terms of size and performance.
The determination of value added must be informed by sufficient justifications based on the details of the processes that a service or a product undergoes before it is obtained by the customer (Hennig-Thurau, 2000). It is upon the customer to scrutinize the product and service in order to determine whether the figure of value added is commensurate to the real value of the product. Market forces and competitions are some of the factors that determine the trend of value added. The bargaining power of suppliers, the cost of raw materials and factors such as market preferences and the bargaining power of the customers contribute to the determination of value added. It is important to consider the fact that some of the issues that contribute to the value of value added as fluid and subject to accessional changes over time.
Business and product markets are usually subject to the processes of production, competition, and other internal and external forces. Global and local forces, regulatory mechanisms, and other macroeconomic forces tend to affect the constituent features of value added in ways that either increase or lower value added (Hennig-Thurau, 2000). Changes that occur within the production cycle and the supply chain are important in determining the trends of value added. The product markets weigh their stability with regard value added. The linkages and processes from the manufacturing point to the markets are largely regarded as a manifestation of the nature of value added. For instance, value added can be lower in cases where the manufacturer manages to negotiate a lower cost from the suppliers.
Value added influences the strength of a product on the markets (Trischler, 1996). Market strategies involving the manipulation of value added often involve the lowering of profit margins for competitive advantage. In some ways, the quality of a product contributes significantly towards enhancing the level of value added. Goods and services considered to be of a superior quality fetch a higher level of value added than those considered to be of a relatively lower quality. As such, it becomes important to consider the fact that market forces, trends, and nature of products are fundamental considerations used in the determination of value added. Some factors considered within the aspect of value added have to be considered in light of the dominant market forces relating to a particular product on the market.

References
Hansen, D. R., Mowen, M. M., & Guan, L. (2009). Cost management: Accounting and control. Mason, Ohio: South-Western.
Hennig-Thurau, T. (2000). Relationship marketing: Gaining competitive advantage through customer satisfaction and customer retention : with 24 tables. Berlin: Springer.
Mowen, M. M., Hansen, D. R., & Heitger, D. L. (2012). Cornerstones of managerial accounting. Mason, OH: South-Western Cengage Learning.
Trischler, W. E. (1996). Understanding and applying value-added assessment: Eliminating business process waste. Milwaukee, Wisconsin: ASQC Quality Press.

5. During the 1980s and early 1990s recessions, British manufacturing management restored profitability, sacked employees, and transformed productivity. To what extent does the British experience differ when compared against the major competitors?
Recessions have profound effects on nation’s economies. The late 1980s and early 1990s recession had a great impact on the British manufacturing industry. Prior to the recession, the United Kingdom was the world’s top manufacturing nation. As the manufacturing industry suffered in Britain from the effects of the recession, competitors from other nations such as the United States, France, and Germany overtook it. The depression had been caused by the great value of the pound, towering rates of interest, a firm fiscal policy, the economic boom and bust, high charges of mortgage interests, and the use of the Exchange Rate System Since the recession in the 1980s, British manufacturing has not been able to regain its position as the world’s top manufacturing nation. Although the decline experienced by Britain has been inevitable, a number of measures have been taken to improve British manufacturing. Among these is the New Growth Economics, which focuses on growth policy, convergence and catching-up, social capability, human capital, and investment. The United Kingdom has also made efforts to sustain a high level of foreign direct investment, which is one of the foundations to the revival of British manufacturing. Keywords: Recession, British Manufacturing, Gross Domestic Product, Inflation, Manufacturing Sector, Competitors, Unemployment, Economy

A recession is a “downturn in the business cycle during which real GDP declines, business profits fall, the percentage of the work without jobs rises, and production capacity is underutilized” (Tucker, 2008, p.252). GDP means, “the value of a country`s overall output of goods and services during one fiscal year at market prices, excluding net income from abroad” (“gross domestic product (GDP),” n.d.). GDP can be measured on the basis of expenditure, income, or output, where measures depend on the amount of money used, amount of profit earned, and amount of goods and services sold respectively.
According to Keynesian analysis, if there is a decline in AD, this means that there will be a decline in the real GDP. What affects the real GDP is the AS curve slope. Low Aggregate Demand (AD) causes a slight reduction in real GDP when the economy is close to full capacity (“Causes of recessions,” n.d.). Source: (“Causes of recessions,” n.d.).
A recession consists of two quarters, whereby the decline in the GDP; during a recession the economy is functioning inside and further away from its production possibilities curve. During a recession the economy is affected in a downfall, demands begin to slowly go down; this is because the market is saturated and the demands for goods and services becomes weak (Montgomery, 2011).
Factors that lead to the recession in Britain during the 1980s and early 1990s include:
1. Great value of the pound: This reduced the demand for exports since they became more expensive. British manufacturing was the sector that was mostly affected.
2. High rates of interest: Inflation in the UK was above 15% in 1979 (“Causes of Recessions,” n.d.). High inflation was inherited by the conservative government, which made a commitment to reduce it. The government focused on tight fiscal and monetary policies, which reduced inflation, but caused a reduction in investment, spending, and output.
3. A firm fiscal policy: The government focused on reducing its borrowing level to reduce inflation, which was necessary for the economy. To achieve this, taxes were increased, consequently reducing consumer spending due to the fact that their disposable income was reduced by the tax increase.
4. Economic boom and bust: There was rapid economic growth during the 1980s. As a result of this inflation increased above 10% (“Causes of Recessions,” n.d.). The UK government embarked on reducing the inflation by increasing the rates of interests, which led to a reduction in spending.
5. Use of the Exchange Rate System: The UK government committed itself to maintaining the towering value of the pound, which required interest rates to be high and therefore led to a reduction in Aggregate Demand. There was consequently less demand for UK exports, which had become very expensive.
6. High costs of mortgage interests: This was as a result of high interest rates, which caused most people to sell their property, reducing the prices of houses. Consumer wealth reduced as a result of the falling house prices.
There has been industrial change in the UK since the 1980s and early 1990s recession. This can be seen from the fact that employment in UK service industries has grown, but in the manufacturing industry, it has relatively declined. “Between 1971 and 1999 almost 4 million jobs were lost from UK manufacturing industries….Over the same period the proportion of total value of UK output produced by manufacturing industries fell from 41% to around 20%” (Moynihan & Titley, 1995, p.357). The loss of jobs was mainly as a result of the 1980s economic recession.
If a country’s manufacturing sector is weak, the economy will have to be constrained below full employment, since the domestic activity will draw in manufactured goods and cause a balance-of-payment crisis. Between 1976 and 1979, British manufacturing was expected to recover, but this did not work (Townsend, 1983). This is because a collapse of activities followed between 1979 and 1981 as a result of the recession. This recession affected the manufacturing output of British manufacturing, which affected the manufacturing areas and the employment (Townsend, 1983). Source: (“UK recession of 1981,” n.d).
This graph indicates how inflation had risen from 1979-1990, and the fall in GDP below average. In 1982, it begins to rise and goes through dynamic changes between 1984 and 1989. Between 1980 and 1982, the rate of inflation increased by 14.76% (“UK recession of 1981,” n.d). The UK manufacturing industry has been declining since the 1980s and early 1990s recession. During the nineteenth century, the leading manufacturing nation in the world was the United Kingdom, but this declined during the recession. As the British manufacturing lost its worldwide supremacy, other nations were improving their manufacturing capacities. It was at this period that Britain was overshadowed by the United States, France, and Germany in the manufacturing sector (Pike & Barnes, 1994). Since then, British manufacturing has remained behind these nations.
The 1980s recession exacerbated the decline that had begun in British manufacturing industries. The British motor vehicles and textiles, and iron and steel industries were the most severely affected. This is because these are the industries that faced the greatest competition worldwide. According to Pike and Barnes, “it is feared that the industrial base in the UK is now too small to meet the needs of the economy and any expansion will lead to an increase in imports and enlarge the already large trade deficit” (1994, p.10).
The performance of British manufacturing sector is relative to its competitors. The performance of a business can be measured by the growth of output, profitability, productivity, and structural change. The major problems facing Britain’s economy are the reduction of the manufacturing industry and unemployment. Britain has lost most of its market share to its competitors. While Britain competitors retained their employment, Britain lost 40% of its manufacturing workforce (Needle, 2004). The British motor manufacturing industry suffered during the 1980 recession, and lost its domestic market share to Japanese Motor manufacturing industry. This is because the market forces forced Japan to venture in Britain. Britain’s competitors such as Germany and France paid their employees more than Britain could (Anderton, 2000).
Average consumers were hugely affected by the late 1980s and early 1990s world recession. The UK textile industry faces great threat from its competitors in other nations. This was after it lost its top position as a textile and garment manufacturer. After the 1980s and early 1990s recession, Germany became the leading quality manufacturer of textiles and garments. However, later recessions have impacted the German textile and garment industry. According to Bohdanowicz & Clamp, “The French government has always heavily supported its fashion industry; more recently, the Spanish government made its fashion/textile industry a priority, pouring money into it to ensure its establishment across Europe” (1994, p.161).
There is dire need to improve the British manufacturing industry. Britain’s manufacturing capabilities can be restored, even though the decline by Britain has been inevitable. According to Pike and Barnes, “to achieve this means a higher level of domestic saving and higher corporate savings if the alternative of higher capital inflows at higher rates of interest is to be avoided” (1994, p.10). There have been recent developments of New Growth Economics in Britain, and these “may provide some direction as to what future policies may be appropriate to sustain long-term improvements in manufacturing competitiveness” (Lindberg, Voss, &. Blackmon, 1998, p.286). The New Growth Economics is focussed on growth policy, convergence and catching-up, social capability, human capital, and investment. One of the foundations to the recovery of British manufacturing is the sustained high level of foreign direct investment in the United Kingdom. This has led to increased investment in the manufacturing industry.

Reference
Anderton, Alain. (2000). Economics. London: Pearson Education Ltd.
Bohdanowicz, Janet & Liz Clamp. (1994). Fashion Marketing. London: Routledge.
Carbaugh, Robert. (2008). International Economics. Mason: South-Western, Cengage Learning.
“Causes of Recessions.” (n.d.). Retrieved 3 January, 2013, from http://www.economicshelp.org/macroeconomics/economic-growth/cause-recession2.html.
“Gross Domestic Product (GDP).” (n.d.). Retrieved 3 January, 2013, from http://www.businessdictionary.com/definition/gross-domestic-product-GDP.html.
Lindberg, P., Voss, C. A. & Kathryn L. Blackmon. (1998). International Manufacturing Strategies: Context, Content and Change. Dordrecht: Kluwer Academic Publishers.
Montgomery, John. (2011). Upwave: City Dynamics and the Coming Capitalist Revival. England: Ashgate Publishing Limited.
Moynihan, Dan & Brian Titley. (1995). Advanced Business. Oxford: Oxford University Press.
Needle, David. (2004). Business in Context: An Introduction to Business and Its Environment. London: Thomson Learning.
Pike, R. & R. J. Barnes (1994). TQM in Action: A Practical Approach to Continuous Performance Improvement. London: Chapman & Hall.
Townsend, Alan. (1983). the Impact of Recession: On Industry, Employment and Region. Kent: Rutledge Kean & Paul.
Tucker, Irvin. (2008). Survey of Economics. Mason: South-Western, Cengage Learning. “UK recession of 1981.” (n.d). Retrieved 3 January, 2013, from http://www.economicshelp.org/macroeconomics/economic-growth/uk-recession-1981.html.
.…...

Similar Documents

Premium Essay

Annual Report

...use our collective commitment, talents, resources and systems to deliver on our most important commitment ... to care. We are accountable for our actions and undertake to deliver on our commitments. We are focused on delivering results and we do what we say we will do. We accept responsibility and hold ourselves accountable for our work, our behaviour, our ethics and our actions. We aim to deliver high performance outcomes and undertake to deliver on our commitments to our colleagues, business and social partners, and our investors. We treat each other with dignity and respect. We believe that individuals who are treated with respect and who are entrusted to take responsibility respond by giving their best. We seek to preserve people's dignity, their sense of self-worth in all our interactions, respecting them for who they are and valuing the unique contribution that they can make to our business success. We are honest with ourselves and others, and we deal ethically with all of our business and social partners. The communities and societies in which we operate will be better off for AngloGold Ashanti having been there. We uphold and promote fundamental human rights where we do business. We contribute to building productive, respectful and mutually beneficial partnerships in the communities in which we operate. We aim to leave host communities with a sustainable future. We respect the environment. We value diversity. We are committed to continually improving......

Words: 149499 - Pages: 598

Premium Essay

Analysis of Financial Statement by Using the Technique of Ratio Analysis

...A PROJECT REPORT ON ―ANALYSIS OF FINANCIAL STATEMENT BY USING THE TECHNIQUE OF RATIO ANALYSIS” FOR ULTRA TECH CEMENT LTD AT KOVAYA, AMRELI, GUJARAT SUBMITTED TO TILAK MAHARASHTRA UNIVERSITY IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE MASTER OF BUSINESS ADMINISTRATION (MBA) Submitted By: FURKAN Y. KAMDAR (Batch 2008-10) Guided By: Prof.R.GANESHAN MAHARASHTRA COSMOPOLITAN EDUCATION SOCIETY’S PAI INTERNATIONAL CENTRE FOR MANAGEMENT EXCELLENCE CAMP PUNE-411001 1 Maharashtra Cosmopolitan Education Society’s PAI International Centre for Management Excellence CERTIFICATE This is to certify that FURKAN Y.KAMDAR student of PAI INTERNATIONAL CENTRE FOR MANAGEMENT EXCELLENCE, Maharashtra Cosmopolitan Education Society, Pune has completed his field work at ULTRA TECH CEMENT LTD on the topic of ―FINANCIAL STATEMENT ANALYSIS BY USING THE TECHNIQUE OF RATIO ANALYSIS”FOR ULTRA TECH CEMENT LTD and has submitted the field work report in partial fulfilment of 2 years full time course MASTER IN BUSINESS ADMINISTRATION of college for the academic year 2008-2009 He has worked under our guidance and direction. The said report is based on bonafide information. Project Guide Name Prof. R Ganesan Designation Director Pai International Centre for Management Excellence Date: Place: Pune 2 PAI INTERNATIONAL CENTRE FOR MANAGEMENT EXCELLENCE Maharashtra Cosmopolitan Education Society DECLARATION I hereby declare that the project titled ―FINANCIAL STATEMENT......

Words: 15740 - Pages: 63

Premium Essay

Annual Report

...Form 20-F 2011 Nokia Form 20-F 2011   As filed with the Securities and Exchange Commission on March 8, 2012. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2011 Commission file number 1-13202 (Exact name of Registrant as specified in its charter) Republic of Finland (Jurisdiction of incorporation) Nokia Corporation Keilalahdentie 4, P.O. Box 226, FI-00045 NOKIA GROUP, Espoo, Finland (Address of principal executive offices) Riikka Tieaho, Director, Corporate Legal, Telephone: +358 (0)7 1800-8000, Facsimile: +358 (0) 7 1803-8503 Keilalahdentie 4, P.O. Box 226, FI-00045 NOKIA GROUP, Espoo, Finland (Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person) Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934 (the “Exchange Act”): Title of each class Name of each exchange on which registered American Depositary Shares Shares (1) New York Stock Exchange New York Stock Exchange(1) Not for trading, but only in connection with the registration of American Depositary Shares representing these shares, pursuant to the requirements of the Securities and Exchange Commission. Securities registered pursuant to Section 12(g) of the Exchange Act: None Securities for which there is a reporting obligation pursuant to Section......

Words: 149449 - Pages: 598

Premium Essay

To What Extent Is Csr Beneficial to a Company’s Performance?

...To what extent is CSR beneficial to a company’s performance?           The area of corporate social responsibility has been laid great emphasis recent year. Corporate social responsibility means a company concerns its business operations in an environmental-friendly way and interacts with its shareholders and customers voluntarily (Commission of the European Communities, 2001, as cited in Dahlsrud, 2008). Nowadays a large quantity of international companies have issued their CSR report and designed separate websites about their CSR performance in order to run a better business. However, opponents believe the relationship between CSR and company’s performance is neutral (Aupperle, Carroll, & Hatfield, 1985) and CSR’s benefit to a company’s performance is not obvious. As a matter of fact, even CSR performance can’t be measured easily and numerically in most cases, its benefit to a company’s performance is significant. In this paper, the elaboration will cover three most important dimensions: brand value enhancement, employee attraction and consumer relationship nurturance. To begin with, brand value will be enhanced by CSR performance. The study result of Melo and Galan (2011) shows that CSR has a positive impact on brand value. They chose a group of American corporates as target. Meanwhile, they set CSR and brand value as control variables and build a model to set up a connection between them. The numerical result shows the positive correlation of CSR......

Words: 1226 - Pages: 5

Free Essay

Vodafone Annual Report 2012

...Group Plc Annual Report for the year ended 31 March 2012 Creating a more valuable Vodafone We are creating a more valuable Vodafone Our strategy is focused on four areas of growth potential and founded on strong capital and cost discipline. This is delivering results: we have outperformed our key competitors in most major markets, and returned over £10 billion to shareholders in the last 12 months. £46.4bn £11.5bn Group revenue increased 1.2% to £46.4 billion with a strong demand for data services and further voice penetration in emerging markets. Adjusted operating profit was £11.5 billion, slightly down on last year (up 2.5%* on an organic basis) supported by a good performance from our US associate, Verizon Wireless. £6.1bn Free cash flow of £6.1 billion, decreased due to the sale of our interests in China and France and a lower working capital benefit. 9.52p Total ordinary dividends per share of 9.52 pence, up 7.0% in line with our dividend per share growth target. We also paid a special dividend of 4.0 pence per share and our £6.8 billion share buyback programme is almost complete. £6.4bn Capital expenditure increased by 2.3%, as we continued to maintain our high level of investment to support our network strategy. 14.91p Adjusted earnings per share of 14.91 pence, down 11.0% on last year, resulting from the loss of income following the sale of several businesses and higher financing costs. Vodafone Group Plc Annual Report......

Words: 87713 - Pages: 351

Premium Essay

To What Extent Is Csr Beneficial to a Company’s Performance?

...To what extent is CSR beneficial to a company’s performance? Corporate social responsibilities (CSR) and its influences on business success has been a controversial topic over the last few decades but it is not until 1988 was CSR officially stated in the Malcolm Baldrige Criteria for Performance Excellence (Foote, Gaffney & Evans, 2010). Proponents point out that socially-responsible company will be more likely to be financially successful, while critics contend that CSR is contradictory to the most innate characteristic of business, which is to strive for profit. In fact, there are numerous approaches to CSR, but the term is generally defined as the sustained commitment to pursue business growth ethically while generating comprehensive improvement on the living standard of society (Holme & Watts, 2000). This paper is going to uncover the impact of CSR on business performance by examining its potential benefits on sustainability, revenue generation and feasibility for corporations in various scales. First of all, implementation of CSR tends to make the company more sustainable. According to the World Business Council for Sustainable Development, “CSR contributes to the long-term prosperity of companies and ultimately its survival” (Holme & Watts, 2000, p.3). For example, Toyota, being one of the world’s leading car producers, has committed to environmental responsibility in many areas. In particular, having anticipated the finite nature of fossil fuels and with......

Words: 1235 - Pages: 5

Premium Essay

Annual Report

...ANNUAL REPORT 2013 CONTENTS Chairman’s Review Managing Director’s Review Financial Results Board of Directors Senior Management Corporate Governance Statement Financial and Statutory Reports Directors’ Report Financial Report Income Statement Statement of Comprehensive Income Statement of Financial Position Statement of Cash Flows Statement of Changes in Equity Notes to the Financial Statements 1. Summary of Significant Accounting Policies 2. Segment Reporting 3. Revenue 4. Income Statement Disclosures 5. Income Tax Expense 6. Cash and Cash Equivalents 7. Trade and Other Receivables 8. Inventories 9. Other Financial Assets 10. Investment in Joint Venture Entity 11. Investments in Bottlers’ Agreements 12. Property, Plant and Equipment 13. Intangible Assets 14. Impairment Testing of Investments in Bottlers’ Agreements and Intangible Assets with Indefinite Lives 1 2 3 4 6 7 14 14 59 59 60 61 62 63 64 64 72 74 74 76 77 78 79 79 79 80 81 82 83 15. Trade and Other Payables 16. Interest Bearing Liabilities 17. Provisions 18. Deferred Tax Liabilities 19. Defined Benefit Superannuation Plans 20. Share Capital 21. Shares Held by Equity Compensation Plans 22. Reserves 23. Employee Ownership Plans 24. Dividends 25. Earnings Per Share (EPS) 26. Commitments 27. Contingencies 28. Auditors’ Remuneration 29. Business Combinations 30. Key Management Personnel Disclosures 31. Derivatives and Net Debt Reconciliation 32. Capital and Financial Risk Management 33. Related Parties 34. CCA......

Words: 65942 - Pages: 264

Premium Essay

What Is Financial Market? Discuss the Components of Financial Market?

...A financial market is a market in which people and entities can trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand. Securities include stocks and bonds, and commodities include precious metals or agricultural goods. The definition may be termed as: "Financial Markets are generally known as a market where financial securities or/and assets are bought and sold by the buyers and sellers respectively." Some of the salient features of financial market are: • Transparent pricing • Basic regulations on trading • Low transaction costs • Market determined prices of traded securities Basic Functions of Financial Market: Financial market has emerged as one of the biggest markets in the world. It is engaged in a wide range of activities that cater to a large group of people with diverse needs. Six key functions of Financial Market are – 1. Borrowing & Lending: Financial market transfers fund from one economic agent (saver/lender) to another (borrower) for the purpose of either consumption or investment. 2. Determination of Prices: Prices of the new assets as well as the existing stocks of financial assets are set in financial markets. 3. Assimilation and Co-ordination of Information: It gathers and co-ordinates information regarding the value of financial assets and flow of funds in the economy. 4. Liquidity: The asset holders can sell or liquidate their assets in financial......

Words: 1323 - Pages: 6

Premium Essay

Annual Report

...Annual Report and Form 20-F 2013 bp.com/annualreport Building a stronger, safer BP Who we are BP is one of the world’s leading integrated oil and gas companies.a We aim to create long-term value for shareholders by helping to meet growing demand for energy in a safe and responsible way. We strive to be a world-class operator, a responsible corporate citizen and a good employer. Through our work we provide customers with fuel for transportation, energy for heat and light, lubricants to keep engines moving and the petrochemicals products used to make everyday items as diverse as paints, clothes and packaging. Our projects and operations help to generate employment, investment and tax revenues in countries and communities around the world. We employ more than 80,000 people, mostly in Europe and the US. As a global group, our interests and activities are held or operated through subsidiaries, branches, joint arrangements or associates established in – and subject to the laws and regulations of – many different jurisdictions. The UK is a centre for trading, legal, finance, research and technology and other business functions. We have well-established operations in Europe, the US, Canada, Russia, South America, Australasia, Asia and parts of Africa. a On the basis of market capitalization, proved reserves and production. Annual Report and Form 20-F 2013 bp.com/annualreport Front cover imagery Our second BP-operated development in Angola consists of four oil fields – Plutão,......

Words: 227661 - Pages: 911

Premium Essay

Use an Example of Your Choice to Discuss How ‘Corporate Restructuring’ Transformed Market, Productive and Financial Performance

...Use an example of your choice to discuss how ‘corporate restructuring’ transformed market, productive and financial performance. Companies quite often have a need to contract and downsize their operations, or redesign one of the aspects, which might be due to different reasons, such as external factors, increase level of competitiveness or to change company’s direction. All the changes that the company might implement are called corporate restructuring. Usually, corporate restructuring is used when a company’s original structure reached the point when it doesn’t generate the profit, and is no longer efficient. The main aim of a corporate restructuring is to raise company’s profitability and internal operations (Froud 2006). I decided to use Caterpillar example to analyse their need of corporate restructuring and its outcomes. Caterpillar Inc. is a $30 billion global company which is known as a manufacturer of large earth-moving equipment and large construction (Neilson & Pasternack 2005). Caterpillar survived from very difficult times in 1980s, mainly because its product reached maturity level, where customers were no longer interested in it and also the CEO of that company did not take into account very important factor – external environment. In 1980s a lot of companies lost their sales because global recession hit the economy and inflation rates grew very quickly. Therefore, Caterpillar’s structure couldn’t handle the pressure and had to be reorganised. Moreover,......

Words: 2096 - Pages: 9

Premium Essay

Annual Report Example

...ANNUAL REPORT 2003 T R U ST I S A Q U E ST I O N O F Q U A L I TY, M O R E S O TO DAY T H A N EV E R B E F O R E . T H E S U C C E S S O F O U R B R A N D S S P E A K S F O R T H E T R U ST P LAC E D I N O U R P RO D U CT S , P RO D U CT S W H I C H A R E B A S E D O N A S I M P L E P R I N C I P L E T H AT I S T H E F O U N DAT I O N O F O U R E N T I R E C R E AT IV E P RO C E S S – A PA S S I O N F O R CA R S . A PA S S I O N W E WO U L D L I K E TO S H A R E W I T H YO U . > > > E AC H B R A N D I S A WO R L D O F I T S OW N . 4 06 10 12 14 Board of Management/Supervisory Board Report of the Supervisory Board The Board of Management Letter to our Shareholders Group values Financial Communication 18 Volkswagen share 24 Value-based management 26 Corporate Governance 30 40 46 50 53 58 60 66 Management Report Business development Net assets, financial position and earnings performance Volkswagen AG (condensed, according to German Commercial Code) Research and development Business processes Legal matters Risk report Outlook contents 40 ▼ net assets, financial position and earnings performance Sales revenue at prior year level Despite the negative effect of exchange rate movements, the Volkswagen Group generated sales revenue at the level of the previous year. However, earnings reflected unfavourable underlying conditions and special items. 12 ▼ letter to our shareholders Change and progress Our efforts are targeted at the goal of......

Words: 59921 - Pages: 240

Free Essay

Annual Report

...This is Grameenphone November 11, 1996 Awarded operating license in Bangladesh by the Ministry of Posts and Telecommunications. March 26, 1997 Launched its service on the Independence Day of Bangladesh. November 11, 2009 Successfully listed on the Stock Exchanges in Bangladesh. After fifteen years of operation More than 35 million subscribers and around 87 thousand Shareholders as of December 2011 are now empowered under a single network and touched by the magic of closeness. Annual Report 2011 02/03 More than 35 Million subscribers History & Grameenphone Milestones 2010 Launched New Tariff Plan, ‘MobiCash’ Financial Service Brand, Ekota for SME, Baadhon Package, Mobile Application Development Contest & Network Campaign; Reached 29.97 Million Subscribers 2008 Introduced BlackBerry Service; 2011 Launched ‘My zone’- location based discount on usage, Micro SIM cards for iPhone, Spondon Package with 1-sec pulse; Grameenphone Branded Handset (C200, QWERTY handset ‘Q100’ and Android Handset ‘Crystal’), Customer Experience Lab, eCare solution; Completed swapping of 7,272 nos. of BTS; Reached 36.5 Million Subscribers 2009 Listed on Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd.; Launched Internet Modem, Special Olympic Regional Talent Hunt, Stay Green Campaign, Internet Package P5 & P6, Grameenphone Branded Handset & Studyline; Reached 21 Million Subscribers Commissioned Brand Positioning......

Words: 63466 - Pages: 254

Premium Essay

To What Extent Is Corporate Social Responsibility (Csr) Beneficial to a Company’s Performance?

...To what extent is Corporate Social Responsibility (CSR) beneficial to a company’s performance? An analysis of the relationship between CSR and financial soundness, quality of marketing, people management and long-term investment value. Introduction Since the late 1990s, corporate social responsibility (CSR) has been increasingly discussed in the society and it slowly becomes one of the important components in the business world (Jenkins, 2005). McWilliams and Siegel (2006) interpret CSR as ‘situations where the firm goes beyond compliance and engages in “actions that appear to further some social good, beyond the interests of the firm and that which is required by law”’. In general, CSR is believed to, in long-term, enhance business performance and boost employee morale. Also, CSR could be a tool to improve company image and to prevent crises (Weber, 2008). This essay argues that CSR has a positive relationship with a company’s performance, meaning that it brings benefits to corporate performance to a large extent. To measure one’s performance, three key aspects are considered, namely financial soundness, quality of marketing and people management. These three aspects are chosen from the criteria for Britain's Most Admired Companies 2014 (Management Today, 2014). Effects of CSR on Financial Soundness One of the most crucial criteria to determine a company’s performance is by analysing its financial soundness. Common indicators for financial performance......

Words: 1547 - Pages: 7

Free Essay

Annual Reports

...Annual Report 2014 Our customers are at the core of our business Myer strives to be customers’ number one destination when it comes to fashion, cosmetics, and the home. Our strategy provides a clear direction for us to continually delight our customers when they engage with us, whether it is in a store or online. Contents Chairman and CEO Report Page 04 Directors’ Report Page 42 Operating and Financial Review Page 06 Remuneration Report Page 47 Sustainability Page 22 Financial Report Page 68 Board of Directors Page 26 Auditor’s Independence Declaration Page 114 Management Team Page 28 Independent Auditor’s Report Page 115 Corporate Governance Statement Page 30 Shareholder Information Page 117 Corporate Directory IBC Annual General Meeting The fifth Annual General Meeting of Myer Holdings Limited will be held on Friday 21 November 2014 at 11.00am (Melbourne time). Mural Hall Level 6, Myer Melbourne Store Bourke Street Mall, Melbourne VIC 3000 Myer Holdings Limited ABN 14 119 085 602 Front cover image: Myer Adelaide Left page top to bottom: Team member and customer; Homewares, Myer Adelaide; Childrenswear, Myer, Emporium Melbourne. CHAIRMAN AND CEO REPORT Paul McClintock AO and Bernie Brookes was able to maintain total sales of $3,143 million. On a comparable store sales basis, sales increased by 1.2 percent. It is encouraging that comparable store sales have now grown in eight of the last nine quarters, which points to our...

Words: 59709 - Pages: 239

Premium Essay

Tesco's Annual Report

...1,141 794 476 354 782 105 38 140 23,131 38,395 27,096 11,023 4,367 6.1 7.9 10.3 7.2 4.0 Contents OvERviEw 2 3 4 6 Financial highlights Chairman’s statement Chief Executive’s review Our vision BuSiNESS REviEw* 14 16 22 26 30 34 38 42 46 48 50 51 58 Our business Growing the UK core To be an outstanding international retailer To be strong in everything we sell Growing retail services Community at the heart of what we do Building brands Building our team Property – developing and building for customers Key performance indicators Group financials Principal risks and uncertainties General information GOvERNaNCE 60 62 74 Our Board of Directors* Directors’ report on corporate governance* Directors’ remuneration report FiNaNCiaL STaTEmENTS 92 93 94 95 96 97 98 98 99 146 147 148 156 IBC Statement of Directors’ responsibilities Independent auditors’ report to the members of Tesco PLC Group income statement Group statement of comprehensive income Group balance sheet Group statement of changes in equity Group cash flow statement Reconciliation of net cash flow to movement in net debt note Notes to the Group financial statements Five year record Tesco PLC – Parent Company balance sheet Notes to the Parent Company financial statements Independent auditors’ report to the members of Tesco PLC Financial calendar * These sections form the Report of the Directors Overview Our core purpose is to create value for customers to earn their lifetime loyalty. Our Values...

Words: 88441 - Pages: 354

Download | the team | The Vampire Diaries