Required Task:

1. Determine the current level of debt, ROCE in percentage.
2. Determine Net income (without leverage)
3. Determine ROCE (without leverage)
4. By considering ROCE with and without leverage, does leverage (from long-term debt) benefit your companys shareholders?
5. Compute your companys NOPAT and RNOA (use ending NOA).
6. Again, by considering ROCE and RNOA, does the use of leverage benefit your companys shareholders?
7. Compute the percentage of financial leverage (Noncurrent liabilities/Equity)
8. Compute ROCE using its disaggregation formula (RNOA +LEV + Spread)
9. Compute the actual value of favourable effect of financial leverage

STATEMENTS OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 MARCH 2020 Group 2020 RM Company 2020 2019 RM RM 2019 RM Note 4 324,000 324,000 Revenue Cost of sales 40,104,996 44,336,306 (32,403,970) (39,547,257) Gross profit 7,701,026 4,789,049 324,000 324,000 Other income 5 1,361,617 1,292,143 2,430,846 6,904,814 Administrative expenses Other operating expenses 6 7 (13,913,923) (11,031,348) (4,110,986) (12,419,951) (2,632,257) (14,148,964) (3,575,624) (1,175,941) (Loss)/Profit from operations (17,271,231) (7,582,413) (15,505,104) 2,477,249 Finance costs 8 (1,206,758) (494,395) (242,688) (1,907) (Loss)/Profit before taxation (18,477,989) (8,076,808) (15,747,792) 2,475,342 Tax credit/(expense) 1,238,018 428,635 705,412 Administrative expenses Other operating expenses 6 7 (13,913,923) (11,031,348) (4,110,986) (12,419,951) (2,632,257) (14,148,964) (3,575,624) (1,175,941) (Loss)/Profit from operations (17,271,231) (7,582,413) (15,505,104) 2,477,249 Finance costs 8 (1,206,758) (494,395) (242,688) (1,907) (Loss)/Profit before taxation (18,477,989) (8,076,808) (15,747,792) 2,475,342 Tax credit/(expense) 9 1,238,018 428,635 705,412 (17,239,971) (7,648,173) (15,042,380) 2,475,342 (Loss)/Profit and other comprehensive (loss)/income for the year Total comprehensive (loss)/income for the year (17,239,971) (7,648,173) (15,042,380) 2,475,342 (Loss)/Profit and other comprehensive (loss)/income for the year attributable to: Owners of the Company Non-controlling interests 2,475,342 (16,100,452) (1,139,519) (6,978,354) (15,042,380) (669,819) 16 (Loss)/Profit and other comprehensive (loss)/income for the year (17,239,971) (7,648,173) (15,042,380) 2,475,342 Basic loss per share (Sen) 10 (3.06) (1.42) STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2020 Group 2020 2019 RM Company 2020 2019 RM RM Note RM 31,960,313 3,508,115 2,735,398 2,581,104 Non-Current Assets Property, plant and equipment Right-of-use assets Deferred tax assets Investment properties Goodwill on consolidation Investments in subsidiary companies Investment in associate company Other investments 11 12 13 14 15 16 17 18 39,831,515 7,100,591 823,531 18,200,000 3,370,300 309,599 18,351,762 5,805,412 9,000,000 9,000,000 7,964,598 8,764,598 7,075,436 5,406,905 6,891,240 5,228,864 Total Non-Current Assets 76,401,373 61,833,991 29,172,340 26,501,577 Group 2020 RM 2019 RM Company 2020 2019 RM RM Note Equity Share capital Accumulated losses Other reserves 25 101,817,069 99,685,869 101,817,069 99,685,869 (56,323,201) (40,128,318) (49,309,341) (34,266,961) 26 14,472,007 14,434,207 14,472,007 14,434,207 66,979,735 73,991,758 1,938,303 79,853,115 59,965,875 708,060 Non-controlling interests 16 Total Equity 60,673,935 75,930,061 66,979,735 79,853,115 Non-Current Liabilities Term loan Hire purchase payables Lease liabilities Deferred tax liabilities 27 28 29 13 8,771,024 442,721 5,125,655 512,230 185,473 503,089 1,231,175 1,858,498 496,793 1,194,700 Total Non-Current Liabilities 14,851,630 1,919,737 2,355,291 1,194,700 23,529,677 20,957,969 6,817,285 19,214,251 5,935,842 1,559,034 6,296,539 207,257 Current Liabilities Trade payables Other payables, deposits and accruals Contract liabilities Amount due to subsidiary companies Bank overdrafts Term loan Hire purchase payables Lease liabilities 2,116,087 30 31 32 22 24 27 28 29 1,422,498 1,909,904 1,991,116 828,976 410,552 2,869,010 267,304 623,403 823,221 Accumulated losses Other reserves 26 (56,323,201) (40,128,318) (49,309,341) 14,472,007 14,434,207 14,472,007 (34,266,961) 14,434,207 66,979,735 79,853,115 Non-controlling interests 59,965,875 708,060 73,991,758 1,938,303 16 Total Equity 60,673,935 75,930,061 66,979,735 79,853,115 Non-Current Liabilities Term loan Hire purchase payables Lease liabilities Deferred tax liabilities 27 28 29 13 8,771,024 442,721 5,125,655 512,230 185,473 503,089 1,231,175 1,858,498 496,793 1,194,700 Total Non-Current Liabilities 14,851,630 1,919,737 2,355,291 1,194,700 23,529,677 20,957,969 6,817,285 19,214,251 5,935,842 1,559,034 6,296,539 30 31 32 22 24 207,257 Current Liabilities Trade payables Other payables, deposits and accruals Contract liabilities Amount due to subsidiary companies Bank overdrafts Term loan Hire purchase payables Lease liabilities 2,116,087 1,422,498 1,909,904 27 1,991,116 828,976 410,552 2,869,010 28 29 267,304 623,403 823,221 Total Current Liabilities 57,404,585 29,509,738 9,235,847 1,629,755 Total Liabilities 72,256,215 31,429,475 11,591,138 2,824,455 Total Equity and Liabilities 132,930,150 107,359,536 78,570,873 82,677,570 STATEMENTS OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 MARCH 2020 Group 2020 RM Company 2020 2019 RM RM 2019 RM Note 4 324,000 324,000 Revenue Cost of sales 40,104,996 44,336,306 (32,403,970) (39,547,257) Gross profit 7,701,026 4,789,049 324,000 324,000 Other income 5 1,361,617 1,292,143 2,430,846 6,904,814 Administrative expenses Other operating expenses 6 7 (13,913,923) (11,031,348) (4,110,986) (12,419,951) (2,632,257) (14,148,964) (3,575,624) (1,175,941) (Loss)/Profit from operations (17,271,231) (7,582,413) (15,505,104) 2,477,249 Finance costs 8 (1,206,758) (494,395) (242,688) (1,907) (Loss)/Profit before taxation (18,477,989) (8,076,808) (15,747,792) 2,475,342 Tax credit/(expense) 1,238,018 428,635 705,412 Administrative expenses Other operating expenses 6 7 (13,913,923) (11,031,348) (4,110,986) (12,419,951) (2,632,257) (14,148,964) (3,575,624) (1,175,941) (Loss)/Profit from operations (17,271,231) (7,582,413) (15,505,104) 2,477,249 Finance costs 8 (1,206,758) (494,395) (242,688) (1,907) (Loss)/Profit before taxation (18,477,989) (8,076,808) (15,747,792) 2,475,342 Tax credit/(expense) 9 1,238,018 428,635 705,412 (17,239,971) (7,648,173) (15,042,380) 2,475,342 (Loss)/Profit and other comprehensive (loss)/income for the year Total comprehensive (loss)/income for the year (17,239,971) (7,648,173) (15,042,380) 2,475,342 (Loss)/Profit and other comprehensive (loss)/income for the year attributable to: Owners of the Company Non-controlling interests 2,475,342 (16,100,452) (1,139,519) (6,978,354) (15,042,380) (669,819) 16 (Loss)/Profit and other comprehensive (loss)/income for the year (17,239,971) (7,648,173) (15,042,380) 2,475,342 Basic loss per share (Sen) 10 (3.06) (1.42) STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2020 Group 2020 2019 RM Company 2020 2019 RM RM Note RM 31,960,313 3,508,115 2,735,398 2,581,104 Non-Current Assets Property, plant and equipment Right-of-use assets Deferred tax assets Investment properties Goodwill on consolidation Investments in subsidiary companies Investment in associate company Other investments 11 12 13 14 15 16 17 18 39,831,515 7,100,591 823,531 18,200,000 3,370,300 309,599 18,351,762 5,805,412 9,000,000 9,000,000 7,964,598 8,764,598 7,075,436 5,406,905 6,891,240 5,228,864 Total Non-Current Assets 76,401,373 61,833,991 29,172,340 26,501,577 Group 2020 RM 2019 RM Company 2020 2019 RM RM Note Equity Share capital Accumulated losses Other reserves 25 101,817,069 99,685,869 101,817,069 99,685,869 (56,323,201) (40,128,318) (49,309,341) (34,266,961) 26 14,472,007 14,434,207 14,472,007 14,434,207 66,979,735 73,991,758 1,938,303 79,853,115 59,965,875 708,060 Non-controlling interests 16 Total Equity 60,673,935 75,930,061 66,979,735 79,853,115 Non-Current Liabilities Term loan Hire purchase payables Lease liabilities Deferred tax liabilities 27 28 29 13 8,771,024 442,721 5,125,655 512,230 185,473 503,089 1,231,175 1,858,498 496,793 1,194,700 Total Non-Current Liabilities 14,851,630 1,919,737 2,355,291 1,194,700 23,529,677 20,957,969 6,817,285 19,214,251 5,935,842 1,559,034 6,296,539 207,257 Current Liabilities Trade payables Other payables, deposits and accruals Contract liabilities Amount due to subsidiary companies Bank overdrafts Term loan Hire purchase payables Lease liabilities 2,116,087 30 31 32 22 24 27 28 29 1,422,498 1,909,904 1,991,116 828,976 410,552 2,869,010 267,304 623,403 823,221 Accumulated losses Other reserves 26 (56,323,201) (40,128,318) (49,309,341) 14,472,007 14,434,207 14,472,007 (34,266,961) 14,434,207 66,979,735 79,853,115 Non-controlling interests 59,965,875 708,060 73,991,758 1,938,303 16 Total Equity 60,673,935 75,930,061 66,979,735 79,853,115 Non-Current Liabilities Term loan Hire purchase payables Lease liabilities Deferred tax liabilities 27 28 29 13 8,771,024 442,721 5,125,655 512,230 185,473 503,089 1,231,175 1,858,498 496,793 1,194,700 Total Non-Current Liabilities 14,851,630 1,919,737 2,355,291 1,194,700 23,529,677 20,957,969 6,817,285 19,214,251 5,935,842 1,559,034 6,296,539 30 31 32 22 24 207,257 Current Liabilities Trade payables Other payables, deposits and accruals Contract liabilities Amount due to subsidiary companies Bank overdrafts Term loan Hire purchase payables Lease liabilities 2,116,087 1,422,498 1,909,904 27 1,991,116 828,976 410,552 2,869,010 28 29 267,304 623,403 823,221 Total Current Liabilities 57,404,585 29,509,738 9,235,847 1,629,755 Total Liabilities 72,256,215 31,429,475 11,591,138 2,824,455 Total Equity and Liabilities 132,930,150 107,359,536 78,570,873 82,677,570