1 Person a) An overview of the chosen industry – You should include the current situation of the industry in Malaysia. (6 marks) b) Company’s business description – Includes the profile of TWO (2) targeted companies of your choice including the companies’ history, date of establishment, the nature of business, products/services provided by the company, future prospects (e.g. expansion plan or strategies for growth), Board of Directors and Committees. (10 marks) 2 persons a) An evaluation of the TWO (2) targeted companies’ financial performance. - - - You are required to compute the key accounting ratios for two years (latest), indicating profitability, efficiency, liquidity, gearing and investment returns of the PLCs. You are required to show, in table format, the formula (as provided in Appendix 2) and the supporting figures/workings for all ratios. You are to critically comment on the 2-year trends on the profitability, efficiency, liquidity, gearing and investment returns of the PLCs. Your comments should include references to the business and other relevant factors identified from the AR and/or external sources. Charts/graphs are encouraged to show the trend of the company’s performance. All facts and figures must be interpreted. (30 marks) b) Performance report – Your proposals/opinions/suggestions of the best company to takeover. Evaluation on the overall performance (in relation to key business and financial potential / risks, future prospects and/or industry outlook) of the PLCs from the perspective of an investor need to be done. You need to rely on the comparison of the targeted companies’ performance based on the FIVE (5) categories of ratio as well as additional information from external sources (e.g. analyst reports). You are encouraged to cite views from external sources, including analyst reports, to support your investment decision. (14 marks) 2 Persons Conclusion from question 1 Conclusion – Conclude with your working group’s decision on which company is the best company to takeover, with reasoned justifications for your decision. Discuss any other factors that have to be considered besides financial performance. (10 marks) Question 2 Instead of considering a takeover exercise, companies may undertake an external reconstruction, which is more common among smaller companies (especially family concerns). A new company is formed by the existing shareholders to take over the assets and liabilities of an ailing company. The old company is wound up. The shareholders of the new company will be mainly made up of the shareholders of the old company. Discuss how the books of the old company are dealt with in the situation of external reconstruction. Support your discussions with relevant illustration. (20 marks) Marks will be given to references cited (on source materials and bibliography) and the overall presentation (e.g. structure and clarity of English) of your assignment report. You are required to attach copies of newspaper article(s) and / or research analyst reports (cited in your answers). (References: 5 marks)
