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TASKS write the report must be more than 2500 words,if less than 2500 words please do not answer ,thank u Helang Air Berhad (Helang Air)

TASKS write the report must be more than 2500 words,if less than 2500 words please do not answer ,thank u

Helang Air Berhad (Helang Air) is an airline company listed on Bursa Malaysia. The business has grown rapidly since its establishment seven years ago but in the recent periods it has been criticised for under-investing of its non-current assets. Assume you are working for Helang Air and you have been tasked to prepare a ratio analysis based on the comparative financial statements of Helang Air. Extracts from Helang Airs financial statements are as follows:

Statements of financial position as at 30 June:

2020

RM000

2021

RM000

ASSETS

Non-current assets

Intangible assets

32,000

40,000

Property, plant and equipment

348,000

634,000

380,000

674,000

Current assets

Inventories

980

1,160

Trade and other receivables

12,600

12,200

Cash and cash equivalents

44,200

18,600

57,780

31,960

Total assets

437,780

705,960

LIABILITIES

Non-current liabilities

6% loan notes

300,800

261,920

Current liabilities

Trade and other payables

8,500

20,960

6% loan notes

38,880

38,880

47,380

59,840

EQUITY

Equity shares

6,000

6,000

Retained earnings

83,600

88,200

Revaluation surplus

Nil

290,000

89,600

384,200

Total liabilities and equity

437,780

705,960

Other extracts from Helang Airs financial statements for the years ended 30 June:

2020

RM000

2021

RM000

Revenue

318,000

308,000

Profit from operations

37,200

24,600

Finance costs

(20,400)

(18,400)

Cash generated from operations

48,620

36,960

The results of the ratio analysis are as follows:

As at 30 June 2020

As at 30 June 2021

Gearing (Debt/Equity)

379.1%

78.3%

Current ratio

1.22:1

0.53:1

Interest cover

1.8 times

1.3 times

Net asset turnover

0.74 times

0.45 times

Operating profit margin

11.7%

8.0%

Return on capital employed

8.7%

3.6%

The flight schedule, the number of flights and destinations were the same in both 2020 and 2021. Helang Air is currently negotiating with the nine major airports to renew its licences that are due to expire in November 2021. The licence will give Helang Air the right to operate flights in the respective airports.

Required:

write the report must be more than 2500 words,if less than 2500 words please do not answer ,thank u

  1. Prepare a list of comments on the financial performance and position of Helang Air for the year ended 30 June 2021.
  2. Explain any issues that Helang Air should be considering in the near future.

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