Puan Asmindar Noordin, one of the Senior Executive at Credit Controller of Bank Santander Malaysia Berhad received an application from AEON Co. (M) Bhd to revise the existing loan repayment scheme. You are required to assist Puan Asmindar Noordin to analyse and made recommendation on the loan. AEON Co. (M) Bhd is a Malaysia-based company that is primarily engaged in retailing and property management services. The majority of the company's revenue comes from its retailing business. In addition to its core general merchandise stores, the company operates superstores, pharmacy and flat-price shops, and it runs an e-commerce business through www.shoppu.com.my. Most of AEON's stores are located in suburban residential areas, aiming to meet the ever-changing demand of Malaysia's vast middle-income group. AEON Co. (M) Bhd reported a drop in earnings as sales suffered due to the Covid-19 restrictions. The retailer made a net profit of RM41.4 million in 2020 declined 62 percent compared to 2019. Refer to the financial statements of AEON Co. (M) Bhd in Exhibit 3.0 (in page 8 to 10), you are required to prepare an analysis which content the following questions. Compute the net trade cycle for AEON Co. (M) Bhd (group) for the year of 2020 and 2019. Use end-of-year values for computations requiring average. (2 Marks) Note: i, Use trade and other receivables ii. Use trade and other payables g. Comment the results of your computations in part (f). (2 Marks) h. Calculate the following measures for AEON Co. (M) Bhd (group) for the year of 2020 and 2019: , total liabilities to total assets (2 Marks) ii. total liabilities to total equity (2 Marks) , Discuss your overall impression of the capital structures of AEON Co. (M) Bhd based on your calculation in part (h). (2 Marks) j. Give your recommendation to Puan Asmindar Noordin by analyzing your answer in part (29) and (). Should she revise the loan repayment scheme to AEON Co. (M) Bhd? Explain your answer. (3 Marks) STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020 Noto 2019 2020 RM"000 RM OOO 3 4 5 Assets Property plant and equipment Right-of-use assets Intangible assets Investments in associates Other investments Other assets Deferred tax assets Total non-current assets 6 3,366,955 1,689,636 9,638 2.120 55,728 18,424 147,071 5,289,572 3,647,203 1.772,427 11,980 10.934 65,666 19.024 120,059 5647,293 7 8 9 10 11 12 Inventories Contract assets Rocovablos, doposits and propeymonts Cash and cash equivalents Total current assets Total assets 623,644 9,764 99,026 71.385 803,819 6,093,391 754,072 19,728 49,699 66.982 890,481 6.537.774 Equity Shere capital Fair valuo rosorvo Retained earings Equity attributablo to owners of the Company 702.000 54,698 914.297 1,670,995 702,000 64,636 929,034 1.695,670 14 15 Liabilities Borrowings Loese liabilities Other labios Total non-current liabilities 205,080 2.146,022 20,774 2.371,876 2.072.147 21,534 2,093,681 16 15 12 11 Borowings Lease liabilities Payables and accruels Contract liabilities Current tax att Total current liabilities Total liabilities Total equity and abilities 933,580 158,192 1,075,553 126, 146 35,244 2,328,715 4,422,396 6,093,391 723.580 147,076 1.435,240 154,182 10, 150 2.470,228 4,842,104 6.537.774 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2020 Note 2020 RM1000 2019 RM'OOO 18 3 4 5 Continuing oporations Ravenue Other operating income Changes in Inventories Net purchases Staff costs Depreciation of proporty, plant and couipmont Doprociation of right of uso assots Amortisation of intangible assets Nct loss on impolment of tenant recolvables Operating expenses Rosults from oporating activities Interest expense Interest income Share of losses of equity-accounted associates, net of tax Profit before tax Tax expense Profit for the year Other comprehensive income, net of tax Item that will not be reclassified subsequently to profit or loss Net change in fair value of equity investments designated at fair value through other comprehensive Income ("FVOO") Total comprehensive Income for the year Basic eamings per ordinary share (sen) 4,051,302 11,017 (130,428) (2,347,271) (329,308 (320,061) (169,595) 16,028) (15,302) (485,069 259,257 (149,363) 676 (8,814) 101,756 (60,333) 41,423 4,538 884 9,002 73,932 (2757,139) (330,340) (314.829) (163,726) (6,243) (2,239) (688,579) 358,723 (162,927) 1.210 (119) 196,887 (87,595) 109,292 19 20 22 23 19.9381 31.485 2.95 (5.387) 103,905 7.78 24 NOTES TO THE FINANCIAL STATEMENTS 12. RECEIVABLES, DEPOSITS AND PREPAYMENTS Note 2020 RM OOO 2019 RM'000 Trade Trade receivables Amount due from a related company 65,891 4,633 70,524 26.105 605 12.1 27.010 Non-trado Other rocavables Prepayments Amount due from related companies 12.1 1,851 18,406 8,245 28,502 99,026 2,527 13,530 6.632 22,689 49,699 17. PAYABLES AND ACCRUJALS Noto 2020 RM'000 2019 RMPOOD Trade Trade payables Amount due to an associato 171 593,140 11,087 604,227 877.721 23,394 901,115 172 Non-trade Other payables and accrued expenses Progress claims by contractors Rental and utility deposits Amount due to holding company Amount due to associates Amount due to related companies 171 163,456 1.945 255,073 16,406 1.366 33,080 471,326 1,075,553 200,190 13,748 261,498 18.646 2,013 39,030 534,125 1.435,240 171 171