QUESTION 1 (50 MARKS)

Mr. D.I.Y. Group (M) Berhad's (Mr. D.I.Y.) annual report for the fiscal year ending 2022 is available at (Mr. D.I.Y Official Website Group) (At least two years of comparable financial statements are required.)

a) Assess Mr. D.I.Y.s financial position for year 2021 and 2022 according to

i) liquidity position, and how the liquidity position has changed over time. (6 marks)

ii) asset management position, and how its asset management efficiency has changed over time. (6 marks)

iii) debt management position, and how its debt management has changed over time.(6 marks)

iv) profitability ratios, and how its profitability position has changed over time. (6 marks)

v) market value ratios, and how its valuation has changed over time. (6 marks)

b) Mr. D.I.Y.s shareholders major concern is how much earning derived from their equity investment. In addition, they also demand more in-depth analysis that could identify the strengths and weaknesses of the company.

i) To satisfy the shareholders, calculate Mr. D.I.Y.s ROE as well as the industry average ROE, using the DuPont equation.(5 marks)

ii) Evaluate Mr. D.I.Y.s financial performance based on the outcome from part b(i).(5 marks)

c) One of Mr. D.I.Y.s substantial shareholders, Employees Provident Fund (EPF) has voiced their intention to vote against MR DIY Group (M) Bhds proposed renewal of authority for the company to purchase its own shares in its Annual General Meeting (AGM) on June 8, 2023. Instead, EPF has appealed for a higher dividend payout.

i) What do you think would be the trade-off between share buyback and cash dividend for Mr. D.I.Y. based on its current financial position? (5 marks)

ii) Is EPFs reaction relevant to Mr. D.I.Y.s long-term growth? (5 marks)