1 EPPM 2114 Financial Management SET 2, 7 & 8: Miss Veelaiporn Promwichit GROUP ASSIGNMENT (20%) GROUP: (1) (1) There are 31 students in set 2, 11 students in set 7 and 3 students in set 8. Thus, in total, there are 45 students. Students are required to form a group of 5 students, irrespective of which set they belong to. (2) Each student is required to select a group leader and only this leader will submit the assignment by 12.00 am the latest on Friday Week 14. (3) The group leader will only need to submit a softcopy via ifolio. No hard copy is required. TASK: Malaysia is currently under a lockdown and border closure from 18 March 2020 to 31 March 2020 to curb the spread of COVID-19. On 2003, Malaysia suffered from severe acute respiratory syndrome (SARS). I attach along some articles on SARS and Covid-19 for your readings: https://www.businessinsider.my/china-wuhan-coronavirus-compared-to-sars-2020-1?r=US&IR=T https://www.thestar.com.my/news/nation/2020/01/29/how-sars-impacted-tourism PART A: Company Selection (1) Select a Malaysian company that you think was affected by SARS in 2003 i.e. Company X. In the first part of the assignment, provide justification on why you select Company X. (2) Identify the industry in which Company X is operating in. Provide an overview about the industry. (3) Select another company that operates in the same industry as Company X. Lets name this company as Company Y. Company Y must have almost a similar size and operations as Company X. PART B: Financial Statement Analysis (1) Perform a financial statement analysis on Company X in 2001, 2002, 2003 and 2004. Since students must perform the analysis for four years, students are advised to use Excel to perform the analysis and attach along the Excel when they submit the assignment. Students are then not required to show the calculation on their Word report. They are only required to report the final figure with two decimal place on the report. (2) As part of your analysis, you are required to perform ratio analysis. 2 (3) As part of the analysis, each group is also required to perform the same financial analysis on Company Y. Discuss about the industry performance during these four years. (4) Students must identify the steps that the company took to deal with the SARS situation. Did the company cut salaries? Did the company increase their advertising and marketing in an effort to increase revenue? What measures did the company take to prevent huge losses? (5) Finally, did the measures successful reduce their losses? Did Company X still sustain losses due to SARS in 2004? How did the company and the industry perform post-SARS in 2004? PART C: Performance in the current Covid-19 crisis In your opinion, how will Company X perform now and in the near future i.e. post Covid-19. Provide a justification on your answer based on your analysis in Part B. In your answer, discuss any measures taken by the company in this current situation. PART D: Your suggestion to improve Company X performance during this Covid-19 crisis PART E: Would you invest in Company X? Provide justification for your answer FORMAT OF SUBMISSION: Submit the report in the format mentioned above. Attach along your Excel spreadsheet and the financial statement for Company X and Y. Use Times New Roman, Font 12, Double spacing
