Hi can you do question 2 for me.

ACC207 Corporate Accounting and Financial Statement Analysis Assignment 2 - Group-based Assignment January 2014 Presentation ACC207 Assignment 2 Group-based Assignment This assignment is worth 30% of the final mark for ACC207 Corporate Accounting and Financial Statement Analysis. The cut-off date for this assignment is 9 April 2014, 2359 hours. This is a group-based assignment. You should form a group of 3 members from your seminar group. Each group is required to upload a single report to MyUniSIM via your respective seminar group. Please elect a group leader. The responsibility of the group leader is to upload the report on behalf of the group. It is important for each group member to contribute substantially to the final submitted work. All group members are equally responsible for the entire submitted assignment. If you feel that the work distribution is inequitable to either yourself or your group mates, please highlight this to your instructor as soon as possible. Your instructor will then investigate and decide on any action that needs to be taken. It is not necessary for all group members to be awarded the same mark. ___________________________________________________________________________ Question 1 CASE NOTES Assume that you are the Investment Manager of your company. You have selected two listed companies for analysis in order to determine where your company should invest. You are asked to perform a financial analysis of the financial statements of two companies that you have identified by calculating and interpreting the appropriate ratios for two years (current and preceding year), compare the company performance and make appropriate recommendations to your Board of Directors. The two companies must be in the same industry for selection and comparison. Examples: consumer electronics industry, medical care, aerospace industry, hospitality industry, banking industry, Education industry, semi-conductor industry, or computer peripherals industry etc. Required: (a) Executive Summary Provide an executive summary of your report based on your analytical work, finding and recommendation. (5 marks) SIM UNIVERSITY Assignment 2 - Page 2 of 4 ACC207 (b) Assignment 2 Companies Information Select any TWO companies from any Stock Exchange of your choice. Please ensure that each selected company complies with the following: Availability of the Annual Report on the Stock Exchange's website. Operate and registered in the same country. Briefly describe the general industry outlook, principal activities and the core competencies of the two companies that you have selected. Useful sources of information include (though are not limited to): Annual reports ( to be attached as appendix) Newspapers, trade journals, etc. Bloomberg, Reuters, etc. (10 marks) (c) Financial Analysis (i) Compute 10 financial ratios per company for the past two financial years (current and preceding year) and present the ratios in a summarised table format given below. (Use Group or Consolidated figures in the annual reports to compute and show clearly the calculation of financial ratios.) Company 1 2011 2012 Company 2 2011 2012 Profitability ratios (in %) Gross profit % (ROS) Net profit % Efficiency ratios (in times) Inventory turnover Asset turnover (ROA) Liquidity ratios (in times) Current ratio Quick ratio Leverage ratios Debt ratio % Interest cover (in times) Investment ratios Earning per share (EPS) Return on equity (ROE) (20 marks) SIM UNIVERSITY Assignment 2 - Page 3 of 4 ACC207 Assignment 2 (ii) Analyse, interpret and compare the financial performance of the two companies based on the ratios computed above. (25 marks) (iii) Briefly analyze the cash flow statements of both companies over the two-year period. (10 marks) (iv) Draw conclusions about the overall relative financial strength of the two companies. Based on your analysis, state your recommendation as to which company you should invest in. You should support your recommendations with qualitative factors of the companies, any developments in the industry affecting their businesses and the performance of the economy, etc. You should also highlight any limitations of your analysis. (5 marks) (v) Enclosure of appendices. (5 marks) Question 2 The use of ratios is included because of the growing importance of investment in SHARIAH COMPLIANT COMPANIES. Islamic banking is gaining popularity all over the world with a forecast that investment worth $100 billion USD will be made globally in this system by 2010. There are many major multinationals companies (MNEs / MNCs) included in SHARIAH INDICES including companies such as Google Inc, Exxon Mobil Corp., GlaxoSmithKline plc, Siemens AG, Samsung Electronics, International Business Machines Corp., Nestle SA, and Coca-Cola. A number of indices have been created which only include companies that are shariah compliant such as the MSCI Global Islamic Indices and the Dow Jones Islamic Index. Required: Do a Research or literature review on the any ONE of the TWO above listed Islamic Index and report your findings. (20 marks) ---- END OF ASSIGNMENT ---- SIM UNIVERSITY Assignment 2 - Page 4 of 4