Please review the financial statements for the years 2017 and 2018 and perform the tasks below. A. From the financial statement provided, calculate THREE (3) ratios from each category listed below for the years 2017 and 2018 respectively: i. Profitability and management efficiency ratios (15 marks) ii. Short term financial stability ratios (15 marks) iii. Long term financial stability ratios (15 marks) iv. Investors' ratios (15 marks) B. Write a report to the CEO of the company chosen on the above ratios. In your report you must analyse the wealth and health of the company based on the ratios above, comparing one year to another. (30 marks) C. Make recommendations on the prospects of the company. (10 marks) r Company Statement of Flows Year ended 30 June 2013 2018 S'000 2017 5'000 160,091 41,467 (23.281) 1.250 (1.963) Cash Flows from Operating Activities Cash provided by operating activities (Note 26) Cash Flows from Investing Activities Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Short term deposits, net Purchase of investments Interest received Dividend received Cash used in investing activities Cash Flows from Financing Activities Long term loans repaid Long term loans received paid Dividends pard Cash (used in provided by financing activities (9.480) 580 60.122 (165 589) 2.937 191 (111.219) 2.184 (21.663) (7.237) (5.855) 18.800 (1.282) (2.073) (2.156) (11 466) 37386 10 220 30 030 230 Exchange gain on foreign cash balances Increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and Cash Equivalents at End of Year (Note 20) 18.150 79.964 31200 48 495 79,761 Reconciliation of movements of liabilities to cash flows arising from financing activities Amounts represent bank and other loans excluding bank overdraft 2018 S'o 15 907 18.000 At July Loans repard Au Read alou Company Statement of Changes in Equity Year ended 30 June 2018 Number Share Capital Fair Value Retained of Shares Capital Reserve Reserve Earnings Total 1000 S'000 S'000 S'000 S'000 59000 1,437 1,437 148,365 3,631 75,964 229,397 - 19,777 19,777 Balance at 1 July 2016 Total Comprehensive Income Net profit Other Comprehensive Income - Unrealised gains on available-for-sale investments Re-measurement of post-employment benefit asset 2,116 2,116 9,007 9,007 28,784 30.900 2,116 1.437 1,437 (1.437) (1.437) 103,311 258,860 148,365 5,747 Transactions with Owners Dividends paid Balance at 30 June 2017 Total Comprehensive Income Net profit Other Comprehensive Income - Unrealised gains on available-for-sale investments Re-measurement of post employment benefit asset 41,688 41.688 2,721 2,721 3,511 3,511 45,199 47920 2,721 Transactions with owners Dividends paid Balance at 30 June 2018 (2,156) (2,156) 146,354 304,624 1.437 1,437 148,365 8,468 i Gateway 9 eDrive/Downloads/Palace_Annual_Report_2018.pdf Pal + E A Read aloud Company Statement Financial Position 20 June 2018 2018 S'000 Note 2017 S'000 Non-Current Assets Property, plant and equipment Investments Post-employment benefit asset Due from subsidiaries 12 13 15 16/27 84.141 174,614 51,494 10,723 320,972 92,390 6,304 42,130 35,971 176,795 50,868 Current Assets Inventories Receivables Short term deposits Cash and cash equivalents 44.518 17 18 19 20 42,345 42,656 60,348 79,764 225.113 117,923 213,309 21 Current Liabilities Payables Taxation payable Deferred Income Current portion of long term liabilities 85,136 283 22 108 306 5.117 3,008 7237 123,668 89,641 410,613 7,237 92,656 132,437 309, 252 Net Current Assets 1.437 Stockholders' Equity Share capital Capital reserve Fair value reserve Retained earnings 23 24 25 10 148,365 8,468 146,354 104 624 1,437 148365 5,747 103,311 258,860 1627 Non-Current Liabilities Due to subsidianes Long term liabilities Defemed tax liabilities 81.064 14.463 10457 TOS 089 14 20.599 21.705 8.088 50,392 2022522 Semp/OneDrive/Downloads/Palace Annual Report 2018.pdf A' Re. Company Statement of Comprehensive Income Year ended 30 June 2018 Note 6 Revenue Direct expenses Gres Profit Other operating income Administration expenses Operating Profit Finance costs-interest expense Profit before Taxation Taxation Net Profit Other Comprehensive Income: Item(s) that may be reclassified to profit or loss in the future - Unrealised gains on available-for-sale investments, net of taxation Item(s) that will not be reclassified to profit or loss in the future - Re-measurement of post-employment benefit asset, net of taxation Total other comprehensive income Total Comprehensive Income 2018 2017 S'000 S'000 817,194 715,620 (615,641) (556,262 201,553 159,358 36,165 37,737 (183,171) (170,611) 54,547 26,484 (2,073) (1,282) 52,474 25,202 (10,786) (5,425) 41,688 19,777 9 10 2,721 2,116 3,511 6,232 47,920 9,007 11.123 30,900 Bi lay ve/Downloads/Palace Annual Report 2018.pdf + ARead aloue Consolidated Statement of Cash Flows Year ended 30 June 2018 2017 2015 S'000 S'000 127.943 49,014 (29,482) 1.250 (1,963) Cash Flows from Operating Activities Cash provided by operating activities (Note 26) Cash Flows from Investing Activities Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Short term deposits, net Purchase of investments Interest received Dividends received Cash used in investing activities Cash Flows from Financing Activities Long term loans repaid Long term loans received Interest paid Dividends paid Cash (used in provided by financing activities (38,044) 61,508 60.122 (165,589) 2,522 507 (78,974) 1,180 232 (28,783) (7,237) (2,139) (2,156) (11,532) 37,437 773 38,210 81,155 119,365 (5,855) 18,800 (1,363) (1,437) 10.145 30,376 1.239 31.615 49 540 81,155 Exchange gain on foreign cash balances Increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and Cash Equivalents at End of Year (Note 20) Reconciliation of movements of liabilities to cash flows arising from financing activities Amounts represent bank and other loans, excluding bank overdraft 2018 S'000 28.942 2017 S'000 15.997 18.800 (5,855) 28.042 At 1 July Loans received Loans repaid (7.237) 21.705 away Consolidated Statement of Financial Position 130 June 2018 2018 S'000 2017 $ 000 Note Non-Current Assets Propeny, plant and equipment Investments Post-employment benefit asset 12 13 15 222,452 183,959 51,494 457,905 219,246 16,184 42,130 277,560 Current Assets Inventories Receivables Short term deposits Cash and cash equivalents 53,847 47,115 18 19 20 45,109 44,815 60,348 81.155 231,427 119.365 220 327 21 Current Liabilities Payables Taxation payable Deferred Income Current portion of long term liabilities 100,403 2,183 22 122.584 12,848 3,008 7,237 145,677 74,650 532.555 Net Current Assets 7,237 109 823 121.604 399,164 Stockholders' Equity Share capital Capital reserve Fair value reserve Retained eamings 23 24 25 10 1,437 165.984 17.972 297.955 483,348 18.078 501.426 1,437 166,488 15,733 172,761 356.419 4.059 361,078 Non-Controlling Interest Nou-Current Liabilities Long term liabilities Deleted ux liabilities 14.468 16.661 31.129 21.705 16.381 38.086 Consolidated Statement of Comprehensive Income Year ended 30 June 2013 Note 5 6 Revenue Direct expenses Gross Profit Other operating income Administration expenses Operating Profit Finance costs - interest expense Profit before Taxation Taxation Net Profit Other Comprehensive Income: Item(s) that may be reclassified to profit or loss in the furure- Unrealised gains on available for sale investments, net of taxation Item(s) that will not be reclassified to profit or loss in the future - Re-measurement of post-employment benefit asset, net of taxation Total other comprehensive income Total Comprehensive Income 2018 2017 S'000 S'000 1.163,033 990,137 (890,604) (789,249) 272,429 200,888 67,783 12,773 (183,171) (170,611) 157,041 43,050 (2,139) (1,363) 154,902 41,687 (17,591) (8,867) 137,311 32,820 9 2,186 1,044 3,511 5,697 143,008 9,007 10,051 42.871 Net Profit Attributable to: Stockholders of the Company Non-controlling interest 10 123,839 13.472 137 311 33,013 (193) 32.820 Total Comprehensive Income Attributable to: Stockholders of the Company Non-controlling interest 129,589 13.419 143.008 43.170 (299) 42871 Earnings per Stock Unit Attributable to Stockholders of the Company 11 86 18 22.97 Please review the financial statements for the years 2017 and 2018 and perform the tasks below. A. From the financial statement provided, calculate THREE (3) ratios from each category listed below for the years 2017 and 2018 respectively: i. Profitability and management efficiency ratios (15 marks) ii. Short term financial stability ratios (15 marks) iii. Long term financial stability ratios (15 marks) iv. Investors' ratios (15 marks) B. Write a report to the CEO of the company chosen on the above ratios. In your report you must analyse the wealth and health of the company based on the ratios above, comparing one year to another. (30 marks) C. Make recommendations on the prospects of the company. (10 marks) r Company Statement of Flows Year ended 30 June 2013 2018 S'000 2017 5'000 160,091 41,467 (23.281) 1.250 (1.963) Cash Flows from Operating Activities Cash provided by operating activities (Note 26) Cash Flows from Investing Activities Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Short term deposits, net Purchase of investments Interest received Dividend received Cash used in investing activities Cash Flows from Financing Activities Long term loans repaid Long term loans received paid Dividends pard Cash (used in provided by financing activities (9.480) 580 60.122 (165 589) 2.937 191 (111.219) 2.184 (21.663) (7.237) (5.855) 18.800 (1.282) (2.073) (2.156) (11 466) 37386 10 220 30 030 230 Exchange gain on foreign cash balances Increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and Cash Equivalents at End of Year (Note 20) 18.150 79.964 31200 48 495 79,761 Reconciliation of movements of liabilities to cash flows arising from financing activities Amounts represent bank and other loans excluding bank overdraft 2018 S'o 15 907 18.000 At July Loans repard Au Read alou Company Statement of Changes in Equity Year ended 30 June 2018 Number Share Capital Fair Value Retained of Shares Capital Reserve Reserve Earnings Total 1000 S'000 S'000 S'000 S'000 59000 1,437 1,437 148,365 3,631 75,964 229,397 - 19,777 19,777 Balance at 1 July 2016 Total Comprehensive Income Net profit Other Comprehensive Income - Unrealised gains on available-for-sale investments Re-measurement of post-employment benefit asset 2,116 2,116 9,007 9,007 28,784 30.900 2,116 1.437 1,437 (1.437) (1.437) 103,311 258,860 148,365 5,747 Transactions with Owners Dividends paid Balance at 30 June 2017 Total Comprehensive Income Net profit Other Comprehensive Income - Unrealised gains on available-for-sale investments Re-measurement of post employment benefit asset 41,688 41.688 2,721 2,721 3,511 3,511 45,199 47920 2,721 Transactions with owners Dividends paid Balance at 30 June 2018 (2,156) (2,156) 146,354 304,624 1.437 1,437 148,365 8,468 i Gateway 9 eDrive/Downloads/Palace_Annual_Report_2018.pdf Pal + E A Read aloud Company Statement Financial Position 20 June 2018 2018 S'000 Note 2017 S'000 Non-Current Assets Property, plant and equipment Investments Post-employment benefit asset Due from subsidiaries 12 13 15 16/27 84.141 174,614 51,494 10,723 320,972 92,390 6,304 42,130 35,971 176,795 50,868 Current Assets Inventories Receivables Short term deposits Cash and cash equivalents 44.518 17 18 19 20 42,345 42,656 60,348 79,764 225.113 117,923 213,309 21 Current Liabilities Payables Taxation payable Deferred Income Current portion of long term liabilities 85,136 283 22 108 306 5.117 3,008 7237 123,668 89,641 410,613 7,237 92,656 132,437 309, 252 Net Current Assets 1.437 Stockholders' Equity Share capital Capital reserve Fair value reserve Retained earnings 23 24 25 10 148,365 8,468 146,354 104 624 1,437 148365 5,747 103,311 258,860 1627 Non-Current Liabilities Due to subsidianes Long term liabilities Defemed tax liabilities 81.064 14.463 10457 TOS 089 14 20.599 21.705 8.088 50,392 2022522 Semp/OneDrive/Downloads/Palace Annual Report 2018.pdf A' Re. Company Statement of Comprehensive Income Year ended 30 June 2018 Note 6 Revenue Direct expenses Gres Profit Other operating income Administration expenses Operating Profit Finance costs-interest expense Profit before Taxation Taxation Net Profit Other Comprehensive Income: Item(s) that may be reclassified to profit or loss in the future - Unrealised gains on available-for-sale investments, net of taxation Item(s) that will not be reclassified to profit or loss in the future - Re-measurement of post-employment benefit asset, net of taxation Total other comprehensive income Total Comprehensive Income 2018 2017 S'000 S'000 817,194 715,620 (615,641) (556,262 201,553 159,358 36,165 37,737 (183,171) (170,611) 54,547 26,484 (2,073) (1,282) 52,474 25,202 (10,786) (5,425) 41,688 19,777 9 10 2,721 2,116 3,511 6,232 47,920 9,007 11.123 30,900 Bi lay ve/Downloads/Palace Annual Report 2018.pdf + ARead aloue Consolidated Statement of Cash Flows Year ended 30 June 2018 2017 2015 S'000 S'000 127.943 49,014 (29,482) 1.250 (1,963) Cash Flows from Operating Activities Cash provided by operating activities (Note 26) Cash Flows from Investing Activities Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Short term deposits, net Purchase of investments Interest received Dividends received Cash used in investing activities Cash Flows from Financing Activities Long term loans repaid Long term loans received Interest paid Dividends paid Cash (used in provided by financing activities (38,044) 61,508 60.122 (165,589) 2,522 507 (78,974) 1,180 232 (28,783) (7,237) (2,139) (2,156) (11,532) 37,437 773 38,210 81,155 119,365 (5,855) 18,800 (1,363) (1,437) 10.145 30,376 1.239 31.615 49 540 81,155 Exchange gain on foreign cash balances Increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and Cash Equivalents at End of Year (Note 20) Reconciliation of movements of liabilities to cash flows arising from financing activities Amounts represent bank and other loans, excluding bank overdraft 2018 S'000 28.942 2017 S'000 15.997 18.800 (5,855) 28.042 At 1 July Loans received Loans repaid (7.237) 21.705 away Consolidated Statement of Financial Position 130 June 2018 2018 S'000 2017 $ 000 Note Non-Current Assets Propeny, plant and equipment Investments Post-employment benefit asset 12 13 15 222,452 183,959 51,494 457,905 219,246 16,184 42,130 277,560 Current Assets Inventories Receivables Short term deposits Cash and cash equivalents 53,847 47,115 18 19 20 45,109 44,815 60,348 81.155 231,427 119.365 220 327 21 Current Liabilities Payables Taxation payable Deferred Income Current portion of long term liabilities 100,403 2,183 22 122.584 12,848 3,008 7,237 145,677 74,650 532.555 Net Current Assets 7,237 109 823 121.604 399,164 Stockholders' Equity Share capital Capital reserve Fair value reserve Retained eamings 23 24 25 10 1,437 165.984 17.972 297.955 483,348 18.078 501.426 1,437 166,488 15,733 172,761 356.419 4.059 361,078 Non-Controlling Interest Nou-Current Liabilities Long term liabilities Deleted ux liabilities 14.468 16.661 31.129 21.705 16.381 38.086 Consolidated Statement of Comprehensive Income Year ended 30 June 2013 Note 5 6 Revenue Direct expenses Gross Profit Other operating income Administration expenses Operating Profit Finance costs - interest expense Profit before Taxation Taxation Net Profit Other Comprehensive Income: Item(s) that may be reclassified to profit or loss in the furure- Unrealised gains on available for sale investments, net of taxation Item(s) that will not be reclassified to profit or loss in the future - Re-measurement of post-employment benefit asset, net of taxation Total other comprehensive income Total Comprehensive Income 2018 2017 S'000 S'000 1.163,033 990,137 (890,604) (789,249) 272,429 200,888 67,783 12,773 (183,171) (170,611) 157,041 43,050 (2,139) (1,363) 154,902 41,687 (17,591) (8,867) 137,311 32,820 9 2,186 1,044 3,511 5,697 143,008 9,007 10,051 42.871 Net Profit Attributable to: Stockholders of the Company Non-controlling interest 10 123,839 13.472 137 311 33,013 (193) 32.820 Total Comprehensive Income Attributable to: Stockholders of the Company Non-controlling interest 129,589 13.419 143.008 43.170 (299) 42871 Earnings per Stock Unit Attributable to Stockholders of the Company 11 86 18 22.97