Old MathJax webview

Recently Energy Fiji Limited (EFL) sold 44% of its shares to Sevens Pacific Ltd, a subsidiary of Chugoku Electric Power Company Ltd and the Japan Bank of International Cooperation. The major shareholder indicates that the new shareholders in bring in new technology that will be more costs effective and environmentally friendly. Using only the extract from the 2019 financial information provided with this exam paper for EFL, answer the following questions a. What do you think is the estimated value of the 44% of the EFL shares sold to Sevens Pacific Ltd. Clearly state your assumptions and show full calculations. You must use more than one way of calculating the value of EFL shares (20 marks) Statement of Comprehensive Income For The Year Ended 31 December 2019 2019 0'000 0427 9404 360035 2018 8000 340 497 teverwery sales Other operating revende Total revenue 362,167 men (los) on trade and other recwracten nel cos Posts Cloubolly Lease and expenses Dertion property man and right of time Amortion of intage Other Den 56 (25.00 (435 26.90 0207 (47) 06) (1037) 23,003 (1761) (10709 09 090.525) 143025) 194 (40.713 1779,606) 1270,550) Total expenses Profit before finance costs, cyclone restoration costs and income tax 89,249 91,098 Finance Coat Tinano Finance income Ungdom Profit before you restoration costs and Income Tax 11936) 2,404 11.0001 (12355) 2403 05 79,717 01.021 12,020) Connection conte (441 Profit before income tax income taken 79,276 (1563) 79,001 (1888 7) 63,744 63,915 Pront after income tax Other comprehensive income foss) In that related and will or maybe reclosed to profit or los Collow Total comprehensive income for the year 1700 65,504 110.264) 53,711 Statement of Financial Position As at 31 December 2019 2019 '000 2018 $000 CAPITAL AND RESERVES Shave Capital Retained profita Hedging Reserves TOTAL CAPITAL AND RESERVES 750,000 99.031 1.760 850,791 750.000 65.2017 (10.204 805,083 24 Represented by CURRENT ASSETS Cush on tundundul bank Short term deposits Receivables and prepayments Derivative financial asset Inventores Current tax assets TOTAL CURRENT ASSETS (a) 9 3.1(a) 10 7(d) 70.716 104905 48.487 4,011 37125 850 266,096 154 580 39,953 59,513 1313 4030 1.257 299,654 1.079.902 1604 NON-CURRENT ASSETS Property, blant and equipment Intangible assets Right of Deferred to TOTAL NON-CURRENT ASSETS 11 12 18(a) 7(b) 1120890 1210 25,205 300 1,147,014 140 1,081,736 TOTAL ASSETS 1,413,711 1,381,090 CURRENT LIABILITIES Trade and other payables Derivative financial liability Emo oyee benefitability Interest hearing bottom teosebit TOTAL CURRENT LIABILITIES 13 3.1(a) 14 15 1B[b) 40,173 182 3443 20.637 1,647 66,056 29,857 9.394 3.109 52232 94,597 97.025 235.282 NON-CURRENT UABILITIES Trade and other payable Inwes bearing borrowings e inbilden Delwed income Delcriod tax biti TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS 13 15 18[b) 16 7(c) 94758 199.098 23 118.649 6,620 496,864 562,920 850,791 104370 55033 481,710 576,307 805,083 Statement of Cash Flows For The Year Ended 31 December 2019 Notes 2019 S'000 2018 $'000 Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Interest bald Tax Payment/Withholding taxes paid Net cash flows provided by operating activities 364656 (229,801) 2.912 (12,095) 19.659) 116,01a 360,144 (235.477) 2,304 (12,566) (15,197 99,208 78161) 27640 161653) 17971 4476 383 Cash flows from investing activities Acquisition of property.plant and equipment Proceeds for electrification net Proceeds from refundable contribution to chcration net Proceeds from disposal of property plant and equipment Net cash flows used in investing activities Cash flows from financing activities Repayment of bonds and cons Proceeds from borrowing local Repayment of lease ability Dividend Net cash flows used in financing activities 343 (45,702) 304 (42.9952 (57784) 122.898) 2.850 0207 (30000) (08033) (20,048) (17,722) 36,165 (96) Net increase in cash and cash equivalents Hect of sustents for impairment loss.net Effect of exchange rate movement on cash cash equivalents Con chuivents at the beginning the year Cash and cash equivalents at the end of the year (1094 58 194 530 175,621 158 349 194,533 Statement of Changes in Equity For The Year Ended 31 December 2019 Share Capital $'000 Hedging Reserves S'000 Capital Contrations $000 Red Profit 5000 Tots 5000 95,199 656,173 751.372 750,000 (95,199) (654,807) 63915 (10.200 63.915 (10204 (10,204) 63,915 53.711 Balance as at 1 January 2018 Transfer of capital contribution and retained earnings to share capital after the corporatisation Total comprehensive Income Profit for the year Other comprensivo out for the year Total comprehensive Income for the year Transactions with members of the entity Dividend payout Total transactions with members of the entity Balance as at 31 December 2018 Total comprehensive income Profit for the year Transfer of hedge reserve to statement of profit or loss Other comprehensive loss for the year Total comprehensive Income for the year 750,000 (10,204) 65 287 805083 53741 2744 1024 1.750 10204 5700 11,964 63,744 75,700 Transactions with members of the entity Dividend payout Total transactions with members of the entity 00 000 0.0001 (30,000) (30,000) Balance as at 31 December 2019 750,000 1.760 99,031 850,791 Statement of Comprehensive Income For The Year Ended 31 December 2019 Notes 5 5 2019 S'000 359 427 9,408 368,835 2018 $'000 349,497 12660 362,157 Reverwe electricity sales Other operating revenue Total revenue Impairment gain/(loss) on trade and other receivables Personnel costs Fuel costs Electricity purchases Lease and rent expenses Depreciation on properly, platit und equipment and right of use assets Amortisation of intangible assets Other operating expenses Total expenses Profit before finance costs, cyclone restoration costs and income tax 56 (25,987) (134 335) (25,987) (902) (47) (23,659) (130,357) (23,003) (1.761) (43,025) (394) 149,712) (40,799) (397) (50,526) (279,586) (270,559) 89,249 91,598 Finance Cost Finance Cost Finance income oud foreign congol/lowo), net Profit before cyclone restoration costs and Income tax (11936) 3,494 01.090) (12,355) 2483 95 79,717 81.821 (401) (2,020 Cyton Sarai/Kerjose restoration ents Profit before income tax Income tax one 6 7(a) 79,276 (15,532) 79,801 15,886) 63,744 63,915 Profit after income tax Other comprehensive income/(losa) am that in unrealised and we classrodto 1355 Dowidac Total comprehensive income for the year 1760 65,504 (10.204 53,711 Statement of Financial Position As at 31 December 2019 Notes 2019 $'000 2018 $'000 23 CAPITAL AND RESERVES Share Capital Retained profits Hedging Reserves TOTAL CAPITAL AND RESERVES 750,000 99,031 1.760 850,791 750,000 65,287 (10,204) 805,083 24 Represented by CURRENT ASSETS Cush on hand and at bank Short term deposits Receivables and prepayments Derivative financial asset Inventories Current tax assets TOTAL CURRENT ASSETS 8(a) 9 3.1(a) 10 7(d) 70.716 104,905 18.487 4,011 37,125 852 266,096 154.580 39,953 59,513 1,313 43,038 7.257 299,654 11 1.079,992 1.604 12 NON-CURRENT ASSETS Property, plant and equipment Intangible assets Right of use assets Deferred tax assets TOTAL NON-CURRENT ASSETS 18(a) 7(b) 1.120,390 1210 25,205 309 1,147,614 140 1,081,736 1,413,711 1,301,390 TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Derivative financial liability Emo oyee benefitability Interest bearing borrowings lease liabilities TOTAL CURRENT LIABILITIES 13 3.1(a) 14 15 18(b) 40.173 152 347 20,637 1.647 66,056 29,857 9.394 3,109 52.237 94,597 97025 225782 NON-CURRENT LIABILITIES Trade and other payables Interest bearing borrowings labies Deferred income Dulcscd tax louis TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS 13 15 18(b) T6 7(e) 94,762 109,098 23,694 118,629 fi0671 496,864 562.920 850,791 04310 55033 485710 576,307 805,083 Statement of Cash Flows For The Year Ended 31 December 2019 Notes 2019 $'000 2018 $'000 Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Interest pald Tax Payment/Withholding taxes paid Net cash flows provided by operating activities 364,656 (229,901 2912 (12.095) (9,659) 116,013 360,144 (235,477) 2,304 (12,566) (15.197) 99,208 (78.161) 27640 (61653) 17.971 4.476 383 Cash flows from Investing activities Acquisition of property, plant and equipment Proceeds for ruralelertrification, net Proceeds from refundable contribution for general extension net Proceeds from disposal of property, plant and equipment Net cash flows used in investing activities Cash flows from financing activities Repayment of boods and cans Pigeuds from borrowing local Repayment of lease by Dividend Net cash flows used in mancing activities 343 (45,702) 304 (42,995) (57,784) (22,898) 2,850 (249) 130,000) (88,033) (20,048) (17,722) 36,165 (95) (49) Net increase in cash and cash equivalents itect FRS 9 Retallowance for ment loss. nett Effect of exchange rate movement on cashian cash equivalents Castind cont cuivale a beginning of the year Cash and cash equivalents at the end of the year (1094 68 194533 175,621 158 349 194,533