Acct868 Finance|Financial Information Assessment Answer

Assignment Question

Your group has been asked to evaluate Kathmandu Holdings Limited as a potential investment option for your overseas client. Your client was unsure about this investment as he has heard about the poor retailing business for clothing in Australia and New Zealand. In particular, he was advised that Jeanswest Pty Limited had been put on voluntary administration in January 2020. He was concerned that Kathmandu Holdings Limited might face the same fate.

Your senior manager has approached your group to provide a report regarding Kathmandu Holdings that contains both financial and non- financial information. The purpose of this report is to assist the client in making an investment decision of $3million in Kathmandu Holdings. In particular, the manager has emphasized on the following information for your report:

• A brief overview of the business;

• Some historical highlights, both good and bad;

• Financial performance over the last three years, including profitability, liquidity and gearing;

• Other important financial information including share prices, dividends and other relevant information;

• Important non-financial information (where applicable): e.g. management and operational, corporate governance, social responsibility, international and domestic competition, and risk assessment.

Required:

1. Your group is required to write a report to assist the overseas client with his decision regarding Kathmandu Holdings Limited with the following:

a. Discussion and details of all the information as required by the senior manager;

b. One section of the report to include the comparison of Kathmandu Holdings to Jeanswest Pty Limited as they are in the same retailing business in Australia and New Zealand;

c. The group’s assessment and recommendation to the overseas client regarding Kathmandu Holdings.