PSB7025CL Managerial Finance Assignment Brief 2026 | Coventry University, Singapore

PSB7025CL Assignment Brief

Coursework 1

This coursework is to be prepared and submitted by group of FOUR persons from within the same seminar class.

No student will be allowed to submit work of a company that has not been selected for this coursework. Please ensure that you submit work based on the given Company (listed on the London Stock Exchange (londonstockexchange.com). This company is listed at the end of this document.

Your seminar tutor will maintain a list of students’ names together with choice of organisation. This Tutor held list is the definitive record; submitted work will not be assessed if it does not agree with the list.

Requirements:

1. Based on the information from the published annual reports of the selected listed company for the two years 2023 and 2024:

(a) Compute the following categories of ratios:

i) Profitability
ii) Liquidity
iii) Efficiency
iv) Leverage or debt and
v) Investors’ ratios.

(b) Perform a vertical and horizontal analysis of the statement of profit or loss and the statement of financial position.

2. Based on the financial ratios, the vertical and horizontal analysis that you have computed in part 1 and any other relevant information from the annual report, provide a report to the board of directors of the company on the performance of the company over the two years.

3. In addition to the financial analysis and interpretation of the company, design a balanced scorecard to measure both the financial and non-financial performance of the company to help the management of the company meet its strategic objectives. Include in the scorecard: the strategic objectives, the performance measures, targets and the initiatives. A strategy map is required showing the links to the four perspectives.

4. Make recommendations to improve the company’s performance considering the competitive and changing business environment.

Your approach to this task must reflect your ability to carry out research, understanding key principles to the financial and non-financial performance management and apply these to a real business situation.

The outcome of this task should be in the form of a detailed and structured report addressed to the directors of the organisation. You must also include evidence of your research materials including full workings of your financial analysis in the appendix section of your assignment.

Coursework 2

Details of the task

Case Study 1 – Sustainable Fabrics: Paving the Way for a Greener Future.

“The textile industry is transforming significantly as the world becomes increasingly aware of environmental issues. Sustainable fabrics are at the forefront of this change, offering a promising solution to reduce the industry’s environmental footprint.

The global Sustainable Fabrics Market was valued at $17.6 billion in 2023. It is expected to grow at a compound annual growth rate (CAGR) of 8.1%, reaching $27.8 billion by 2029. This growth is driven by increasing environmental concerns, rising demand for eco-friendly products, and advancements in sustainable textile technologies.”

– BC Research, November, 2024

Ecofabz Limited is a well-established name in the global textile industry. It produces more than 200 000 metric tons of fabric and half a million garments annually. The company works closely with some of the most recognizable international brands. The company has carved out a niche for itself by offering high-quality clothing at lower prices, without

compromising its strong focus on sustainability and ethical practices. These include making commitments to reduce waste, energy usage and carbon emissions. The company is keen develop advance sustainable textiles to address environmental concerns and align with the growing consumer preferences for eco-friendly products.

Ecofabz Limited is appraising the feasibility of investing in new facilities that specialise in producing high-quality fabrics and garments from 100% recycled materials, such as factory cutoffs, organic fabrics and end-of-life clothing to create new fibers. The development of eco-friendly manufacturing processes not only aligns with global sustainability trends, but also empowers the company to partner with leading fashion brands committed to sustainability. Ecofabz aims to position the firm as a top choice for businesses seeking eco-conscious fabric solutions.

The following information involves required investment, projected revenues and expenses, and other information for this project.

a. Assembly facilities and processing equipment would have to be acquired and installed. These assets are estimated to cost $500 million, including installation cost. These would have to be fully paid before commencement of project.

b. The land on which to build the extended facilities would have to be leased from the state, at a monthly rental of $100 000.

c. The facilities and equipment are expected to have a 10-years useful life, after which it will have to be replaced when new technology requires upgraded infrastructure. There is no scrap value at the end of asset’s life. Depreciation on the new infrastructure will be at cost over 10 years using straight line method.

d. Annual revenue in dollars over the next 10 years are projected to be as follows:

• • This project would require increase of net working capital of $80 million to finance operations such as inventory purchases. This net working capital will be released at the end of the project’s life.
  • Annual fixed expenses (excluding rent) is projected at $40 million. Included in fixed expenses are administration, sales and marketing expenses. Variable expenses would be 20% of annual revenue. g Ecofabz’s board of directors has specified a required rate of return of 12% on this investment.  h          Ecofabz pays a corporate tax rate of 18%. Capital gain on asset disposal is charged at corporate tax rate.

Case Study 2 – Budgeting Ahead

On 1 October 2024, Ecofabz is attempting to budget cash flows through 31 December, 2024. A bank loan in the amount of $5 million was borrowed on 1 June 2024 to carry the company through the trading seasonal peaks. The interest payable on this note is at 5% per annum and cash Interest payment on this loan are settled monthly. Half of this loan is due end of

November 2024

The company only transact on credit sales. A discount of 5% is given to all customers who pay within one month. 60% of the accounts receivable will be received in the month of sale. 30% will be collected in the following month, and 10% will be received 2 months after sale. There is a 10% provision for bad debt for accounts receivable owing 2 months after sale.

Projected and Actual Sales are:

Purchases are made on basis of 80% of the following month’s projected sales. Half of the purchases are paid for in the month of purchase, and a 5% prompt settlement discount is received. The remainder is paid in full the following month.

Total budgeted fixed operating expenses for the year is $24 million. Fixed costs are accrued evenly through the year.  The operating variable costs is determined to be 20% of that month’s projected sales. Both fixed and variable operating expenses are paid in the month incurred.

Opening cash balance as at 1 October 2024 is $20 500 000.

Requirements: 

You will be required to write a management report in which the following points should be discussed.

• • Analyse the Investment proposals by using NPV and IRR and provide recommendations. You should also briefly comment on other investment proposal techniques that Ecofabz may use, and the limitations of using these techniques.
  • Provide an explanation on the different sources of funding available to the company, and their advantages and disadvantages and make recommendations as to how these funding sources are appropriate to the planned investment project.
  • Prepare a forecasted cash budget for October to December 2024.
  • An evaluation of the company’s performance or position during the same period.
  • A detailed Literature Review of the tools you have used such as capital investment techniques and budgets and their importance to the business case.
  • Other issues for management to consider that you think are vital for them to survive and make a profit.