The Hock Seng Lee (HSL) Group is principally engaged in marine engineering and civil engineering, construction contractor as well as property development. There has been no significant change in the nature of these activities during the financial year. Recently, it has been the practice of the company to use Economic Value Added (EVA) as a tool to measure the quality of management performance.

For HSL Group, for the year 2020 and 2021 respectively, the risk premium rate was 5.0% in both years with the treasury bond rate of interest at 3.0% and 3.5% per annum. The Group borrowings cost on average was 6.5% and 7.5 % per annum, for 2020 and 2021 respectively. Assume that the corporation tax is maintained at 24 percent and ignore the assumptions made on profit and cash flow levels of the company. Study the financial statements of the annual report of HSL Group Berhad, 2021 (page 36 to page 37) and answer the following questions;

a. Determine the total invested capital, earnings before discounting for capital charge, the weighted average cost of capital (WACC) and the economic value added (EVA) of Group HSL Berhad for 2020 & 2021 respectively. The company has consistently measured total assets based on total equity and interest bearing liabilities. All market values are assumed to be the same as par value. (need 500 - 800 words)

please do it in 10 minutes will upvote

FINANCIAL STATEMENTS Directors' interests in shares The interests of the Directors (including where applicable, the interests of their spouses or children who themselves are not Directors of the Company), in the shares of the Company and of its related corporations (other than wholly-owned subsidiaries) during and at the end of the financial year as recorded in the Register of Directors' Shareholdings are as follows: Number of ordinary shares Bought Sold Interest in the holding company, Hock Seng Lee Enterprise Sendirian Berhad Direct interests Dato Yu Chee Hoe Interests in the Company Dato Yu Chee Hoe: Direct interest ^ Deemed interest Lau Kiing Kang: Direct interest # Deemed interest Lau Kiing Yiing: Direct interest Deemed interest At 1.1.2021 8,322,351 19,326,853 321,267,207 2,892,569 399,513 287,150 411,160 10,143,700 104,269,114 281,800 : At 31.12.2021 8,322,351 29,470,553 425,536,321 3,174,369 399,513 287,150 411,160 The Directors, by virtue of their interests in the ordinary shares of the Company, are also deemed interested in the 7,000,000 shares held in its subsidiary, HSL DMIA JV Sdn. Bhd. to the extent the Company has an interest. 427,740 shares held through Citigroup Nominees (Tempatan) Sdn. Bhd. and 29,042,813 shares held through Kenanga Nominess (Tempatan) Sdn. Bhd. # 24,969 shares held through CIMSEC Nominees (Tempatan) Sdn. Bhd. The other Directors holding office at 31 December 2021 did not have any interest in the shares of the Company and of its related corporations during and at the end of the financial year. Directors' benefits Since the end of the previous financial year, no Director of the Company has received nor become entitled to receive any benefit (other than benefits included in the aggregate amount of remuneration received or due and receivable by Directors including remuneration received as a full-time employee, where applicable) as shown in financial statements of the Company and/or of its related corporations disclosed as part of the key management personnel compensation (see Note 29) by reason of a contract made by the Company or a related corporation with the Director or with a firm of which the Director is a member, or with a company in which the Director has a substantial financial interest, other than certain Directors who have substantial financial interests in companies which traded with certain companies in the Group in the ordinary course of business as disclosed in Note 29 to the financial statements. There were no arrangements during and at the end of the financial year which had the object of enabling Directors of the Company to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate. Issue of shares and debentures There were neither changes in the issued and paid-up capital of the Company, nor issuances of debentures by the Company, during the financial year. Options granted over unissued shares No options were granted to any person to take up unissued shares of the Company during the financial year. FINANCIAL STATEMENTS Indemnity and insurance costs Directors and officers During the financial year, the indemnity coverage and insurance premium paid for Directors and officers of the Group and of the Company are RM10,000,000 total in aggregate and RM10,000 respectively. Auditors a. b. Any indemnity given to or insurance effected for the auditors of the Company is to be made to the extent as permitted under Section 289 of the Companies Act 2016. There is no amount of such indemnity given or insurance effected for its auditors during the year. Other statutory information Before the financial statements of the Group and of the Company were made out, the Directors took reasonable steps to ascertain that: all known bad ebts have been written off and adequate provision made for doubtful debts; and any current assets which were unlikely to be realised in the ordinary course of business have been written down to an amount which they might be expected so to realise. At the date of this report, the Directors are not aware of any circumstances: i) that would render the amount written off for bad debts or the amount of the provision for doubtful debts in the Group and in the Company inadequate to any substantial extent, or i) ii) ii) iii) that would render the value attributed to the current assets in the financial statements of the Group and of the Company misleading, or iv) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate, or not otherwise dealt with in this report or the financial statements, that would render any amount stated in the financial statements of the Group and of the Company misleading. At the date of this report, there does not exist: 1) any charge on the assets of the Group or of the Company that has arisen since the end of the financial year and which secures the liabilities of any other person, or ii) any contingent liability in respect of the Group or of the Company that has arisen since the end of the financial year. No contingent liability or other liability of any company in the Group has become enforceable, or is likely to become enforceable within the period of twelve months after the end of the financial year which, in the opinion of the Directors, will or may substantially affect the ability of the Group and of the Company to meet their obligations as and when they fall due. In the opinion of the Directors, the financial performance of the Group and of the Company for the financial year ended 31 December 2021 have not been substantially affected by any item, transaction or event of a material and unusual nature nor has any such item, transaction or event occurred in the interval between the end of that financial year and the date of this report. Subsequent event Subsequent event is disclosed in Note 30 to the financial statements. Auditors The auditors, KPMG PLT, have indicated their willingness to accept re-appointment. The auditors' remuneration is disclosed in Note 19 to the financial statements. Signed on behalf of the Board of Directors in accordance with a resolution of the Directors: Dato Yu Chee Hoe Director Lau Kiing Kang Director FINANCIAL STATEMENTS Directors' interests in shares The interests of the Directors (including where applicable, the interests of their spouses or children who themselves are not Directors of the Company), in the shares of the Company and of its related corporations (other than wholly-owned subsidiaries) during and at the end of the financial year as recorded in the Register of Directors' Shareholdings are as follows: Number of ordinary shares Bought Sold Interest in the holding company, Hock Seng Lee Enterprise Sendirian Berhad Direct interests Dato Yu Chee Hoe Interests in the Company Dato Yu Chee Hoe: Direct interest ^ Deemed interest Lau Kiing Kang: Direct interest # Deemed interest Lau Kiing Yiing: Direct interest Deemed interest At 1.1.2021 8,322,351 19,326,853 321,267,207 2,892,569 399,513 287,150 411,160 10,143,700 104,269,114 281,800 : At 31.12.2021 8,322,351 29,470,553 425,536,321 3,174,369 399,513 287,150 411,160 The Directors, by virtue of their interests in the ordinary shares of the Company, are also deemed interested in the 7,000,000 shares held in its subsidiary, HSL DMIA JV Sdn. Bhd. to the extent the Company has an interest. 427,740 shares held through Citigroup Nominees (Tempatan) Sdn. Bhd. and 29,042,813 shares held through Kenanga Nominess (Tempatan) Sdn. Bhd. # 24,969 shares held through CIMSEC Nominees (Tempatan) Sdn. Bhd. The other Directors holding office at 31 December 2021 did not have any interest in the shares of the Company and of its related corporations during and at the end of the financial year. Directors' benefits Since the end of the previous financial year, no Director of the Company has received nor become entitled to receive any benefit (other than benefits included in the aggregate amount of remuneration received or due and receivable by Directors including remuneration received as a full-time employee, where applicable) as shown in financial statements of the Company and/or of its related corporations disclosed as part of the key management personnel compensation (see Note 29) by reason of a contract made by the Company or a related corporation with the Director or with a firm of which the Director is a member, or with a company in which the Director has a substantial financial interest, other than certain Directors who have substantial financial interests in companies which traded with certain companies in the Group in the ordinary course of business as disclosed in Note 29 to the financial statements. There were no arrangements during and at the end of the financial year which had the object of enabling Directors of the Company to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate. Issue of shares and debentures There were neither changes in the issued and paid-up capital of the Company, nor issuances of debentures by the Company, during the financial year. Options granted over unissued shares No options were granted to any person to take up unissued shares of the Company during the financial year. FINANCIAL STATEMENTS Indemnity and insurance costs Directors and officers During the financial year, the indemnity coverage and insurance premium paid for Directors and officers of the Group and of the Company are RM10,000,000 total in aggregate and RM10,000 respectively. Auditors a. b. Any indemnity given to or insurance effected for the auditors of the Company is to be made to the extent as permitted under Section 289 of the Companies Act 2016. There is no amount of such indemnity given or insurance effected for its auditors during the year. Other statutory information Before the financial statements of the Group and of the Company were made out, the Directors took reasonable steps to ascertain that: all known bad ebts have been written off and adequate provision made for doubtful debts; and any current assets which were unlikely to be realised in the ordinary course of business have been written down to an amount which they might be expected so to realise. At the date of this report, the Directors are not aware of any circumstances: i) that would render the amount written off for bad debts or the amount of the provision for doubtful debts in the Group and in the Company inadequate to any substantial extent, or i) ii) ii) iii) that would render the value attributed to the current assets in the financial statements of the Group and of the Company misleading, or iv) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate, or not otherwise dealt with in this report or the financial statements, that would render any amount stated in the financial statements of the Group and of the Company misleading. At the date of this report, there does not exist: 1) any charge on the assets of the Group or of the Company that has arisen since the end of the financial year and which secures the liabilities of any other person, or ii) any contingent liability in respect of the Group or of the Company that has arisen since the end of the financial year. No contingent liability or other liability of any company in the Group has become enforceable, or is likely to become enforceable within the period of twelve months after the end of the financial year which, in the opinion of the Directors, will or may substantially affect the ability of the Group and of the Company to meet their obligations as and when they fall due. In the opinion of the Directors, the financial performance of the Group and of the Company for the financial year ended 31 December 2021 have not been substantially affected by any item, transaction or event of a material and unusual nature nor has any such item, transaction or event occurred in the interval between the end of that financial year and the date of this report. Subsequent event Subsequent event is disclosed in Note 30 to the financial statements. Auditors The auditors, KPMG PLT, have indicated their willingness to accept re-appointment. The auditors' remuneration is disclosed in Note 19 to the financial statements. Signed on behalf of the Board of Directors in accordance with a resolution of the Directors: Dato Yu Chee Hoe Director Lau Kiing Kang Director