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: b. What other information provided in the EFL 2019 financial report will have an impact on your valuation Your answers must only refer to the EFL reports provided with this exam paper. (10 marks) Statement of Comprehensive Income For The Year Ended 31 December 2019 Notes 5 5 2019 $'000 359,427 9408 368,835 2018 $ 000 3.69497 12660 362,157 56 (25,987 (134,335) (25,987) (207) Revenue. electricity sales Other operating revenue Total revenue impairment gain/(los) on trade and other receivables Personnel costs Fuel costs Electric ly purchase Lease and rent expenses Detection on property, plurit und equipment and right of use asets Amortation of intangible assets Other certng expenses Total expenses Profit before finance costs, cyclone restoration costs and income tax Finance Cost: Finca con Finance income Ulical for exchange gatunet Profit before cyclone restoration costs and income tax (47) (23.66% (130397 23.003) (1.761) (407991 (397) (50.526) (43,025) (394) (49,712) (279,586) (270,559) 89,249 91,598 (11936) 3.494 01.090) (12355) 2483 95 79,717 81.821 Dyrton Stratenie testystion costs (441 2,020 Profit before income tax Income tax expense 6 70 79,276 (15,632) 79,801 115886 63,744 63,915 Profit after income tax Other comprehensive income (loss) ner that is unread and formsy be recessified to proftor Casi low hedge Total comprehensive income for the year 1760 65,504 110204 53,711 Statement of Financial Position As at 31 December 2019 Notes 2019 5'000 2018 $'000 CAPITAL AND RESERVES Share Capital Retained profit Hedong Reserves TOTAL CAPITAL AND RESERVES 750,000 99,031 1760 850,791 750,000 65.27 (10.204) 205,083 24 Represented by CURRENT ASSETS Cashonland und or bank Short term deposits Receivables and prepayments Deshitive financial asset Inventones Current tax assets TOTAL CURRENT ASSETS B(A) 9 3.1(0) 10 7(d) 70716 104.905 48487 4011 32.125 852 266,096 154 580 39.953 59,513 1313 43.038 1.252 299,654 1.079.992 1604 NON-CURRENT ASSETS Property plant and equipment Intangible assets Right of Deferred to assets TOTAL NON-CURRENT ASSETS 11 12 186) 7(b) 1120 890 1210 25.205 309 1.147,614 140 1,081,736 TOTAL ASSETS 1,413,711 1,381,390 CURRENT LIABILITIES Trade and other payables Denvasive financial liability Emo oyee benefitabilt interest beaning borrowings Lease abilities TOTAL CURRENT LIABILITIES 13 3.1() 14 15 18(b) 40.173 15 3.447 20,637 1.47 66,056 29,957 9394 3.109 52237 94,597 07.025 225282 NON-CURRENT LIABILITIES Trade and other payables Interest bearing borrowings Teatties Detered income Delorod to bits TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS 13 15 18(b) 16 7(c) 94.753 199,098 23,690 119.649 60670 496,864 562,920 850,791 10437 55033 481,710 576,307 805083 Statement of Cash Flows For The Year Ended 31 December 2019 Notes 2019 S'000 2018 $ 000 Cash flows from operating activities Recepts from customers Payments to supollers and employees Interest received Interest bald Tax Payment/Withholding the poid Net cash flows provided by operating activities 364,656 (229,801) 2912 (12.095) 19,659) 116,013 360,144 (235.477) 2304 (12566) (15,197 99,200 78,161) 27640 161653) 17971 4.476 383 343 (45,702) 304 (42,995) 157,784 Cash flows from Investing activities Acquisition of property, plant and equipment Proceeds for naral electrification net Proceeds from refundable commbution fo general extensionnel Proceeds from disposat al property, plant and equip Net cash flows used in investing activities Cash flows from financing activities Regnment of onds and can Proceeds trombarrowings soul Rebaner of love ability Dividend Net cash flows used in fruncing activities Net increase in cash and canli equivalents Efect of Santallannalar impormentlocs net Electorate movement anchor conquivocos Ond catholinis. Lue being otheve Cash and cash equivalents at the end of the year (22.898 2,850 249) 30.000 (88,033) (20,041) (17,722) 36,165 (96) (49) 01.094 68 190533 175,621 158,319 194,533 Statement of Changes in Equity For The Year Ended 31 December 2019 Share Capital Hedging Reserves 3'000 Capital Cont Alons $'000 Retained Profits $000 Total 000 s'000 95,199 656,173 751,372 750,000 (95,199) (654 801) 63.975 (10.204) 63.915 (10,2043 (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 comprehensive kiss 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 mere to statement of profit or les Other comprehensive oss for the year 750,000 750,000 (10,204) 65,287 805,083 63.744 63.744 10234 1.750 10.204 760 Total comprehensive Income for the year 11,964 63,744 75,700 (35000 Transactions with members of the entity Dividend payout Total transactions with members of the entity 130 000 (30,000) (30,000) Balance as at 31 December 2019 750,000 1,760 99,031 850, 791 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: b. What other information provided in the EFL 2019 financial report will have an impact on your valuation Your answers must only refer to the EFL reports provided with this exam paper. (10 marks) Statement of Comprehensive Income For The Year Ended 31 December 2019 Notes 5 5 2019 $'000 359,427 9408 368,835 2018 $ 000 3.69497 12660 362,157 56 (25,987 (134,335) (25,987) (207) Revenue. electricity sales Other operating revenue Total revenue impairment gain/(los) on trade and other receivables Personnel costs Fuel costs Electric ly purchase Lease and rent expenses Detection on property, plurit und equipment and right of use asets Amortation of intangible assets Other certng expenses Total expenses Profit before finance costs, cyclone restoration costs and income tax Finance Cost: Finca con Finance income Ulical for exchange gatunet Profit before cyclone restoration costs and income tax (47) (23.66% (130397 23.003) (1.761) (407991 (397) (50.526) (43,025) (394) (49,712) (279,586) (270,559) 89,249 91,598 (11936) 3.494 01.090) (12355) 2483 95 79,717 81.821 Dyrton Stratenie testystion costs (441 2,020 Profit before income tax Income tax expense 6 70 79,276 (15,632) 79,801 115886 63,744 63,915 Profit after income tax Other comprehensive income (loss) ner that is unread and formsy be recessified to proftor Casi low hedge Total comprehensive income for the year 1760 65,504 110204 53,711 Statement of Financial Position As at 31 December 2019 Notes 2019 5'000 2018 $'000 CAPITAL AND RESERVES Share Capital Retained profit Hedong Reserves TOTAL CAPITAL AND RESERVES 750,000 99,031 1760 850,791 750,000 65.27 (10.204) 205,083 24 Represented by CURRENT ASSETS Cashonland und or bank Short term deposits Receivables and prepayments Deshitive financial asset Inventones Current tax assets TOTAL CURRENT ASSETS B(A) 9 3.1(0) 10 7(d) 70716 104.905 48487 4011 32.125 852 266,096 154 580 39.953 59,513 1313 43.038 1.252 299,654 1.079.992 1604 NON-CURRENT ASSETS Property plant and equipment Intangible assets Right of Deferred to assets TOTAL NON-CURRENT ASSETS 11 12 186) 7(b) 1120 890 1210 25.205 309 1.147,614 140 1,081,736 TOTAL ASSETS 1,413,711 1,381,390 CURRENT LIABILITIES Trade and other payables Denvasive financial liability Emo oyee benefitabilt interest beaning borrowings Lease abilities TOTAL CURRENT LIABILITIES 13 3.1() 14 15 18(b) 40.173 15 3.447 20,637 1.47 66,056 29,957 9394 3.109 52237 94,597 07.025 225282 NON-CURRENT LIABILITIES Trade and other payables Interest bearing borrowings Teatties Detered income Delorod to bits TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS 13 15 18(b) 16 7(c) 94.753 199,098 23,690 119.649 60670 496,864 562,920 850,791 10437 55033 481,710 576,307 805083 Statement of Cash Flows For The Year Ended 31 December 2019 Notes 2019 S'000 2018 $ 000 Cash flows from operating activities Recepts from customers Payments to supollers and employees Interest received Interest bald Tax Payment/Withholding the poid Net cash flows provided by operating activities 364,656 (229,801) 2912 (12.095) 19,659) 116,013 360,144 (235.477) 2304 (12566) (15,197 99,200 78,161) 27640 161653) 17971 4.476 383 343 (45,702) 304 (42,995) 157,784 Cash flows from Investing activities Acquisition of property, plant and equipment Proceeds for naral electrification net Proceeds from refundable commbution fo general extensionnel Proceeds from disposat al property, plant and equip Net cash flows used in investing activities Cash flows from financing activities Regnment of onds and can Proceeds trombarrowings soul Rebaner of love ability Dividend Net cash flows used in fruncing activities Net increase in cash and canli equivalents Efect of Santallannalar impormentlocs net Electorate movement anchor conquivocos Ond catholinis. Lue being otheve Cash and cash equivalents at the end of the year (22.898 2,850 249) 30.000 (88,033) (20,041) (17,722) 36,165 (96) (49) 01.094 68 190533 175,621 158,319 194,533 Statement of Changes in Equity For The Year Ended 31 December 2019 Share Capital Hedging Reserves 3'000 Capital Cont Alons $'000 Retained Profits $000 Total 000 s'000 95,199 656,173 751,372 750,000 (95,199) (654 801) 63.975 (10.204) 63.915 (10,2043 (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 comprehensive kiss 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 mere to statement of profit or les Other comprehensive oss for the year 750,000 750,000 (10,204) 65,287 805,083 63.744 63.744 10234 1.750 10.204 760 Total comprehensive Income for the year 11,964 63,744 75,700 (35000 Transactions with members of the entity Dividend payout Total transactions with members of the entity 130 000 (30,000) (30,000) Balance as at 31 December 2019 750,000 1,760 99,031 850, 791