Choose the Integrated Annual Report (IAR) for the year 2020 or 2021 of a J.S.E listed† company. You are required to come up with 2 bold options for substantial improvement in the business and consequently shareholder value for the company. On the basis of your predefined selection criteria, you will then recommend the preferred option to the board for implementation. In order to provide the recommendations, you will undertake key ratio analysis on the financial statements of the business.

You will begin by first assessing the fundamentals of the business by:

 Critically reviewing the firm’s strategic position and objectives

 Assessing the six capitals from an integrated report perspective

 Undertaking a risk assessment of the business and commenting on:

 The key risks facing the business from a probability and consequence perspective.

 Indicate what corrective actions can be undertaken to improve the position of risk.

 In addition to the ratio analysis, provide at least three of the following methods of analysis:

 Comparative trend analys Index analysis

 Common size analysis

 Du Pont Analysis

 Economic value added You will then develop 2 proposals for improvement.

These proposals can include one or a combination of the following topics:

 New projects

 Process improvements

 New equipment/assets

 Acquisitions or disposals

 Outsourcing/insourcing

The two proposals must provide a five-year projection of:  The Net Present Value (NPV)

 Internal Rate of Return (IRR)

 A pro-forma income statement (financial performance)

 A complete statement of financial position that can be expected at the end of the five years.

Answer rating: 100% (QA)

Solution Based on my analysis of the Integrated Annual Report IAR for the year 2020 or 2021 of a JSE listed company I have identified two bold options for substantial improvement in the business and c... View the full answer