Assignment -
a. Find the most current published annual report of a listed company in Australia at ASX website. You will usually find the financial statements as part of the 'Annual Report/Investor Relations' section of a company's website. The objective of this task is that you get the feel of a real life example of financial accounting.
b. Read the financial statements from the annual report and write a report after completing following tasks:
1. Provide a brief of the company (Name, year of establishment, history, background, the product/service they deal in)? Select the latest year for review.
2. Looking at the contents page and flicking through the report, which sections dominate the report?
3. Referring to the director's report section, list three or four main directors along with a brief summary of director's report.
4. Who are the auditors? What is the auditor's opinion? Provide a brief summary of auditor's report after referring the auditor's report section.
5. Have sales increased or decreased (compare the year you have selected with that of the previous/preceding one)? Comment on the reasons for the change in the sales.
6. What is the net cash inflow (outflow) from operating activities? (See the company's cash flow statement). How has the company's net cash inflow changed from the previous year in terms of money and in terms of percentage?
7. What was the retained profit for the year? Has the company any borrowings, i.e. loans, debentures, etc.?
8. Based on the income statement, Balance sheet & cash flow statement, calculate the following ratios and comment on the financial health of the company:
- Profitability ratios
- Liquidity ratios
- Asset turnover ratio
- Leverage ratios