Project Finance Options for Crocodile Garments Limited

This assignment discusses the financial analysis of a company, focusing on its solvency and liquidity ratios. The company's current ratio is not up to mark, indicating potential difficulties in short-term loans. Debt equity ratio is good, but it needs to work on improving current ratio and short-term loan arrangements. The conclusion recommends increasing sales turnover and reducing fixed costs to boost share price and attract investors.

Executive Summary
This report is about the business and financial data study of the Crocodile Garments Limited.
The business study report will have the study about of the main operations of the business,
the values and market capitalization of the company and how it deals with its competitors and
other market segments. Followed by this, financial analysis, operational review are been done
through analyzing the vertical and horizontal analysis of the company financial report. The
ratios of the companies has been worked out to find out the actual reason where the progress
needs to be done and how the company can move ahead to the business. These all report are
been then compared with two other companies so to benchmark their status with the other
companies of similar industry.
Furthermore, the Corporate Governance policy has also been overlooked which will further
assist how the company follow the best practices available for their company.
Investment plans for the future growths has also been an area where this report will focus on
and suggest the best possible way to invest the funds in some of the projects. The investment
and fund-raising management of the company has to be done as per the total assets available
to the company.
After the whole analysis an audit report has been framed and the audit plan has been shared
with the company so to get the trace the adverse remarks and the things on early moments
and then plan the things further.
1

Table of Contents:
Particulars Page no.
1. Introduction 3
1.1. Background of the company
1.2. Company Structure
1.3. Company Shareholding
2. Financial Review 4
2.1. Horizontal Analysis 4
2.2. Vertical Analysis 7
2.3. Operational Analysis 11
2.4. Ratios Analysis 11
3. Corporate Governance 14
4. Investment Appraisal
5. Financial Plan 15
6. Audit Plan 16
7. Conclusion and Recommendation 17
8. References 18
2

1. Introduction:
1.1 Background of the company:
The company is having a business and associated in a business of several fashion labels and
is generated in the manufacture, retail and wholesale of fashions in Hong Kong, Macau and
Mainland China, as well as property investment and letting in Hon kong and Mainland China.
(Annual Report, 2018) So, when we discuss about the group, then all the above components
are in sales, lead by the main business i.e. Fashion in terms of Men’s Fashion, Women’s
Fashion, Kid’s Fashion and imported labels. During the year ended 31 July, 2018, the net
profit of the company steady by HK $ 265,004,000. Further to this, the order division profits
are been different and reported on segment basis, where it has been review that profit is been
dipped slightly by 0.5% and the profit has been reduced.
The company was first listed on the stock exchange in the year 1971, and then the shares
were traded continuously.
1.2. Company Structure
Crocodile Garments Limited (Annual Report,2018) disclosed that the company corporate
structure apart from the Board and the management. Despite the company’s main share are
been shared by the Managing director but still management of the company is having a big
structure having a big team of, CEO, Division managers, Admin & HR, information
technology, accounting and finance.
1.3 Company Shareholdings
During the year, there was no addition in the equity capital, so the total equity remains to
$332,323, adding to this the retained profits, 1,336,858 and other reserves the total value of
equity reached to 1,799,591. The list of shareholders in the company are:
1. Lam Kin Ming, 486,918,000 51.39%
2. Lam Wai Shan, 10,026,500 0.06%
3. Wan Edward Yee Hwa 610,000 0.06%
4. Rich Promise Limited 472,200,000 49.83%
The above shareholding includes the substantial shareholders and personal interests / interest
in the associated corporation.
3

2. Financial Review:
2.1 Horizontal Analysis:
We can review the annual report of the company so to identify the financial improvement of
the company during the last three years. The years improvement has helped the company to
improve the core strength and increase the stability of the company’s resources. For the said
analysis last 3 years financials has been reviewed and analysis has been in terms of Vertical
and Horizontal analysis so to identify the clear picture of the company on the basis of each
items.
Crocodile Limited
Particulars 2018 2017
Amount
(Inc./De
c)
%
(inc./
Dec.) 2017 2016
Amount
(Inc./De
c)
%
(inc./
Dec.)
Revenue
265,0
04
264,1
19 885 0
264,1
19
313,2
17 (49,098) (16)
Cost of goods sold
84,53
2
95,02
7 (10,495) (11)
95,02
7
126,3
83 (31,356) (25)
Gross profit
180,4
72
169,0
92 11,380 7
169,0
92
186,8
34 (17,742) (9)
Operating Incomes
205,9
33
157,5
54 48,379 31
157,5
54
87,53
3 70,021 80
General and Admin
expenses
(64,3
18)
(60,1
79) (4,139) 7
(60,1
79)
(65,1
67) 4,988 (8)
Distribution and
selling expenses
(145,
512)
(155,
361) 9,849 (6)
(155,
361)
(197,
661) 42,300 (21)
Redemption and
Loss on change of
value
(11,6
67) 11,667 (100)
(11,6
67) (11,667)
#DIV/
0!
Finance Cost
(14,5
72)
(12,5
73) (1,999) 16
(12,5
73)
(12,1
05) (468) 4
Taxation Charge 490 1,252 (762) (61) 1,252 1,021 231 23
4

Net Profit
162,4
93
88,11
8 74,375 84
88,11
8 455 87,663
19,26
7
As per the above table, it can be reviewed that the revenue of the company has been increased
slightly during the year but the net profit has been increased by 84%. The reasons of such
increment are: Reduction of cost of goods sold by 11%, which results increment of gross
profit by 7%. Followed by the reduction of distribution and selling expenses by 6% and taxes
during the year by 61%. Also, the operating income i.e. exchange gains and other incomes
has been increased by 31% during the year 2018, so the net profit has been increased to
higher value. Comparing to the year 2016 and 2017, the profit has been increased drastically
from 455$ to 88,118 and the reasons of such increment are reduction of cost of goods sold by
25%, higher than the reduction of sales which means that the variable cost are been purchased
at less price and thus the cost of goods sold has been reduced for the period. Followed by this,
this other related cost in terms of reduction of general and admin expenses and selling and
distribution expenses has added value to the company and bring more effectiveness in the
workings of the company. This also highlight the optimation of the resources and building the
profits.
Yangtzekiang
Garment Limited
Particulars 2018 2017
Amount
(Inc./De
c)
%
(inc./
Dec.) 2017 2016
Amount
(Inc./De
c)
%
(inc./
Dec.)
Revenue
749,2
80
800,3
43 (51,063) (6)
800,3
43
938,4
34
(138,091
) (15)
Cost of properties
sold and services
611,7
31
661,0
36 (49,305) (7)
661,0
36
774,1
24
(113,088
) (15)
Gross profit
137,5
49
139,3
07 (1,758) (1)
139,3
07
164,3
10 (25,003) (15)
Operating Incomes
10,86
6
11,01
6 (150) (1)
11,01
6 9,029 1,987 22
General and
Admin expenses
(77,7
23)
(80,5
12) 2,789 (3)
(80,5
12)
(85,9
18) 5,406 (6)
Distribution and
selling expenses (53,5 (57,2 3,652 (6) (57,2 (64,1 6,868 (11)
5

96) 48) 48) 16)
Redemption and
Loss on change of
value
27,75
4
24,40
0 3,354 14
24,40
0
(12,2
88) 36,688 (299)
Finance Cost
(2,55
3)
(2,71
9) 166 (6)
(2,71
9)
(3,00
2) 283 (9)
Taxation Charge
(7,25
4)
(6,25
9) (995) 16
(6,25
9)
(3,65
8) (2,601) 71
Net Profit
35,04
3
27,98
5 7,058 25
27,98
5 4,357 23,628 542
As per the table above, the company net profit has been increased by 25% during the year
2018 and some of the reasons are, the cost of goods has been reduced by 7%, when the
revenue has been reduced by 6%, this is a sign of perfect variable cost bargaining and
realization of volume and price of the raw materials. Further the general, admin cost were
reduced by 3% and selling and distribution expenses reduced by 6%. This impact to increase
tax burden by 16%. While in comparing to the 2016, the net profit has drastically increased to
542%, and the reasons were due to reduction of change in exchange loss or redemption loss,
it has impact by 300%. Other expenses were reduced by 11and 6% for the period and this has
held to reduced the overall cost for the company and increase the profit for the period of the
company.
High Fashion
International
Limited
Particulars 2018 2017
Amount
(Inc./De
c)
%
(inc./
Dec.) 2017 2016
Amount
(Inc./De
c)
%
(inc./
Dec.)
Revenue
3,074
,745
2,732
,974 341,771 13
2,732
,974
2,422
,545 310,429 13
Cost of properties
sold and services
2,516
,612
2,208
,070 308,542 14
2,208
,070
1,947
,474 260,596 13
Gross profit
558,1
33
524,9
04 33,229 6
524,9
04
475,0
71 49,833 10
6

Operating Incomes
70,39
5
133,1
47 (62,752) (47)
133,1
47
236,2
68
(103,121
) (44)
General and
Admin expenses
(344,
675)
(327,
201) (17,474) 5
(327,
201)
(384,
815) 57,614 (15)
Distribution and
selling expenses
(218,
051)
(209,
622) (8,429) 4
(209,
622)
(209,
933) 311 (0)
Redemption and
Loss on change of
value
(6,11
7) (527) (5,590) 1,061 (527) (619) 92 (15)
Finance Cost
(29,9
37)
(32,1
00) 2,163 (7)
(32,1
00)
(30,7
40) (1,360) 4
Taxation credit
(charges) 8,920
(45,9
26) 54,846 (119)
(45,9
26)
(43,9
68) (1,958) 4
Net Profit
38,66
8
42,67
5 (4,007) (9)
42,67
5
41,26
4 1,411 3
On the similar industry but having a difference impact on financials, High Fashion
International Limited net profit for the year 2018 has been noticed to be reduced by 9% than
previous years. Further the company’s net revenue has been increased by 13%, but due to
increase in COGS by 14% has resulted to decrease in net profit. Further the redemption and
loss changed by huge percentage and this is where the tax impact has been noticed and
reduced to a huge percentage. While comparing with 2016, the amount has been shown
where the COGS and revenue has been increased by 13% and the net profit has been
increased by 3% from 2016. If we compare these figures with the Easyknit international then
we can see that during the periods from 2016 to 2017, the potential of revenue has been
increased but the Easyknit has not shown any increase in the revenue. If the volume can be
increased then there is a potential change to change the profit for the company in much more
higher way that it is predictable.
2.2 Vertical Analysis:
Crocodile Garments:
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Let’s us now review the vertical analysis of report which will give clear picture on the
increase and decrease of the expenses made by the company and all other financial items of
the company.
Particulars 2018 2017 2016
Revenue 100 100 100
Cost of goods sold 31.90 35.98 47.85
Gross profit 68.10 64.02 70.74
Operating Incomes 77.71 59.65 33.14
General and Admin expenses (24.27) (22.78) (24.67)
Distribution and selling expenses (54.91) (58.82) (74.84)
Redemption and Loss on change of value - (4.42) -
Finance Cost (5.50) (4.76) (4.58)
Taxation Charge 0.18 0.47 0.39
Net Profit 61.32 33.36 0.17
As per the analysis, it can be analyzed that the cost of goods sold has been reduced during the
years and it has brought down to 31.90 from the 47. 85 % which is really more than 15% less
than the earlier costs. This is one of the reason where net profit has been reduced as the
variable cost of the company has been came down. The further changes in operating incomes
i.e. change in revaluation and redemptions of values has been increased to 77% from 33%,
followed by the reduction of general and admin expenses on each year, has been really
worked out for the company to build some good profit over the year. Finance cost has not yet
worked out for the company but it will be slightly down in coming year and has not yet
increased from the earlier years. The overall profit has been increased to 61% from 0.17%
which is near to loss, so it means the potential of the company has been really raised off and
the company has really turnaround from where it has started.
Yangtzekiang Garment Limited
In terms of Vertical analysis, the company has a view to overlook, i.e. what expenses were
been increased or decreased in terms of burden shifts or what can be realized for the period.
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Particulars
Revenue 100 100 100
Cost of properties sold and services 81.64 82.59 82.49
Gross profit 18.36 17.41 17.51
Operating Incomes 1.45 1.38 0.96
General and Admin expenses (10.37) (10.06) (9.16)
Distribution and selling expenses (7.15) (7.15) (6.83)
Redemption and Loss on change of value 3.70 3.05 (1.31)
Finance Cost (0.34) (0.34) (0.32)
Taxation Charge (0.97) (0.78) (0.39)
Net Profit 4.68 3.50 0.46
It can be reviewed that the net profit has been changed and raised from 0.46 to 4.68%
between the three years. The change has been noticed by a reasons, the gross profit has been
increased in the year 2018 with a slight decrease in the year 2017. Other incomes has also a
few light up but the cost of the company has been increased from 9.16 to 10.37 during the 3
years, in terms of general and admin expenses also there is a increase in selling and
distribution expenses from 6.83 % to 7.15%. Finance cost has a lower impact and has been
noticed lower to 0.34% from 0.32% for the years to 2018. The overall profit has an impact on
the tax charges and has been noticed to 0.97% from the period 0.39%, the reason behind such
change is due to higher proportion of the profit and this has been obtained with reduction of
various expenses, which we can compare with the EasyKnit international where the net profit
has huge bounce back from 2017. So, EasyKnit had a worse business year in 2017 but has
improved their figures in the year 2018. The other impacts on the business in terms of
expenses can also be noticed and can be corrected.
High Fashion International Limited
Further to this the Vertical Analysis can be reviewed and can have following figures and
benchmarking can be done in various ways like:
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Particulars 2018 2017 2016
Revenue 100 100 100
Cost of properties sold and services 81.85 80.79 80.39
Gross profit 18.15 19.21 19.61
Operating Incomes 2.29 4.87 9.75
General and Admin expenses (11.21) (11.97) (15.88)
Distribution and selling expenses (7.09) (7.67) (8.67)
Redemption and Loss on change of value (0.20) (0.02) (0.03)
Finance Cost (0.97) (1.17) (1.27)
Taxation credit (charges) 0.29 (1.68) (1.81)
Net Profit 1.26 1.56 1.70
The net profit ratio in terms of the sales has been reduced from 1.7 to 1.26, the various
aspects of these decrease is increase in finance cost in the year 2018 and cost of goods sold
percentage has been increased in the years more than the sales in respect to the sales
percentage. Further to this the redemption and loss on change of value has been increased
during all these years and thus the profit has been directly hit and these figures has been
reduced. While comparing the figures with the Easyknit international holdings, the profit has
been increased a huge than high fashion international limited but then other several cost were
not reduced in a way that the company. Also, the main component is the increase in sales
revenue which has not been seen as increment.
After the financial report analysis, we can analyze and review the ratio’s of the company and
see how much they are viable to their profitability, to the shareholders, liquidity potential and
solvent for the future payoff.
10

2.3. Operational position:
2018 2017 2016
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
Revenue
Crocodile Garments Yangtzekiang Garments Limited High Fashion International Limited
As per the operational effort the company has been progressed in the year of 2018 and High
Fashion International limited revenue is higher than their benchmarked companies.
2.4 Ratio Analysis:
Current Assets 636940 413338 438376
Quick Assets 597280 365284 365040
Current Liabilities 714205 469542 457414
Total Debt 969570 738759 741783
Equity 1799591 1638915 1551384
Profitability Ratios:
Gross profit margin 68.10 64.02 59.65
Net profit margin 61.32 33.36 0.15
Gross profit margin of the company illustrates that how much the COGS of the company has
been effectively lower than the higher in revenue. There are two components in determining
the gross profit –
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a. Revenue : the revenue of the company can be increased on the basis of increase in
volume of the product/services and then increase in the base price or stabilize the
price of the product/services, if these figures are been put into the picture then the
figures for the company can up and then can be extracted to best potential.
b. COGS: the lower the variable cost of the company, there is higher the probability to
increase the profits for the company. The variable costs of the company will then
shows the cost of raw material, processing cost, packing cost and all other direct costs
which are related to the product or the services provided. So, if the COGS is lower
then the gross profit can be at higher side.
During the years the gross profit has been increased to 68.10% in the year 2018. So, higher
the gross profit will give an impact to have a good net profit ratios, subject to higher in the
indirect cost of the company.
Net profit margin, this illustrates that after the gross profit of the company has been identified
then the company will then identify or clarifies what other costs attracts to the development
of the product or services, all these costs then will be indirectly related to the product sales or
services deliver. Further to this, company should noticed that how the indirect costs can go
down and how the cost can be efficiently put upfront and increase the net profit of the
company. In having variance to the subject there can be variance in the strategy but the
indirect costs can always be a factors which can be reduced in higher than any direct related
costs. During the year net profit margin has been raised to 61.32 (2018) from the 33.36%.
There has been huge rise in the profit during the years. The increase and decrease in net profit
will attract the stakeholders to invest into the business and move ahead.
Market Ratios:
Earnings per share 17.15 9.3 0.05
Market Ratio also has a segment which illustrates that how much a company will repay as a
return to the shareholders on the investment made by them. The EPS will be covering the
amount which is an outcome from the business and that amount will be divided and send to
the shareholders as the amount of return. So, as the EPS will increase the attraction for the
shareholders will also increase and potential to increase the market price of the company.
Further to this, the company EPS has been increased drastically from 0.05 in the year 2016 to
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9.3% in the year 2017 and has been boost up to 17.15%, which has been increased due to the
increase in profit and retention of the existing shares.
Liquidity Ratios:
Current ratio 0.89 0.88 0.96
Quick ratio 0.84 0.78 0.80
On the liquidity ratio, basically it identifies that the potential of the company to repay their
current liabilities with the current assets. So, if the assets of the company is lower then the
liquid portion of the company will be minimized as they cannot pay their obligation on the
determined period. The other vary purpose where the company needs to work out is to settle
their obligation with their assets. The two measures on the liquidity are:
Current ratio, which means that how much current assets a company posses to repay their
current liabilities. So, if the ratio is above 1, then it is assumed that the company has higher
assets to repay their obligations and further they can settle the balances onwards. If not, and
the ratio is less than 1 then we can assume that the company does not have the potential to
repay the obligation with the assets they have in their account. As shown in the table, the
ratio of the company has been increased in the year 2018 from 0.89 to 0.88 which means that
the company borrowings are been increasing vs. their assets to the company, but as the ratio
is less than 1, so it means the potential of the company to repay their debts are really less and
this where the company has to work out and find the ways from where it can build of the
current ratio and improve the potential to repay the short term debts.
Quick Ratio, this is a another parameter where the liquidity of the company can be measured,
this basically is in depth of the current ratio, where the current assets will only be having the
those assets which can be realized and get converted into cash quickly than the others. So,
basically the inventories and the short-term investments are been removed as the realization
of these assets i.e. conversion into cash is very tight so when the time to realize the current
liabilities of the company. So, these ratios is basically to check the actual realization to the
current assets into cash quickly and more effectively.
As shown in the figures, the quick ratio of the company has been decreased in the year 2017
and then it has realized higher to 0.84 in 2018, this is in realization of the company against
this, which the company needs to work out for the repayment of their short term payment.
Solvency Ratios:
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Solvency Ratios:
Debt to equity 0.54 0.45 0.48
Solvency ratio means that the ownership of the company i.e. how much the company is been
owned by the shareholders and how much it has been owned by the debtholders. So, if the
company is been owned by the shareholders then it is solvent than in case of any losses then
the company cannot be auctioned or should not under the debt. But if it owned by the other
stakeholders then in case of poor performance it can be asked for dissolution and thus cannot
be getting the things better for future. So, solvency ratio indicates where the debt ratio is
higher than the equity funds. As shown in the table, the ratio of the company has been
increased from 0.48 to 0.54 in the year 2018, it means that the debt of the company is been
increasing during the years but as the ratio is less than one, so it means the potential and
repay/return to the equity holders are still higher and the interest in the business is still
survival..
3. Corporate Governance Report:
Company is following the Corporate Governance code provision as per the Appendix 14 to
the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited.
As per the said report, the board of the company is responsible for the various of the activities
in the company and which will also cover;
- To develop and review the company’s policies and practices on corporate governance,
monitor it and maintenance of appropriate and effective risk management and also
have to ensure that the internal control system of the group is effective into the
system;
- To review and monitor the training and continuous professional development of the
senior management and the Directors of the company;
- To check whether the legal requirement of the companies are valid or not
14

- To review the company compliance with CG code and disclosure in the corporate
governance report in the company’s annual reports.
- To appoint audit committee and review the functions of the committee members in
terms of reporting of financial status, internal control, comment on the audit reports.
- To appoint Remuneration Committee and check the KPI of the persons in charge and
also recommend, board on the policies and structure for the remuneration for them;
approve and review the management’s remuneration proposals;
- Nomination committee, to review the structure, size and composition of the board,
identify and nominate suitable candidates of directors, to assess the independence of
the independent non-executive directors
- To check the attendance record of directors and committee members;
- Should be accountable for the audit and accountability of the members;
- To review the risk management and internal control of the company along with the
financial reporting of the company
4. Working Capital and Financing Management:
For the raising of the finance there are multiple options to raise the funds, but then it depends
on the structure of the company on which they want to move on. Some of such financial
options are:
1. Long Term Loan : The loan taken mostly for 4-5 years can be considered as a term
loan and have to pay installments in each months. This term loan is viable where the
company plans to get the funds for any project investment and once the pay back
period is viable then they repay the installment amounts to the financial institutions.
Along with this company use to get sufficient amount of time to finance for the
project. So, this option can also be viable for the company as the debt equity ratio will
also allow for this and further the company has a viable current ratio.
2. Letter of Credit: This option can also be viable to those companies who are raising
funds for the working capital or short terms projects. But if the tenure is higher then
the time given for the LC have to be converted into the term loan and the funds will
be hold for the long period. But still LC is viable for the company as the cost for the
LC is lower than any term loan interest. For the company the project tenure needs to
15

ascertain and if the vendors allow then the Letter of credit will be the best option to
choose out as the cost to get the credit is very less and it can assist to get the contract
very soon.
3. Short term Borrowing Letter of Credit: This is where the bank gives guarantee to the
vendor that in case of non payment to the vendor. The other aspects to this credit is
that it can be for the tenure as per required, so this can also be a possible option to get
the funds finance by and the cost to have this credit is cheaper than others. For the
company this option is better in the terms where the company have potential to
decline the current ratio and work on the cheap finance cost.
4. Debt funds: This way to get the funds from the market is very common where the
company use to raise the debenture or capital reserve plan for the public and repay a
good interest rate to the public on the deposits. The Debt funds are highly appreciated
to collect the funds from the common public but the cost for the repayment is huge
and should be mature on time. So, for the company the debt ratio is fine enough to
raise this funds and this will also not effect the working capital but still the cost of the
project is higher than other options, so needs to check on the same.
5. Equity raising: To collect the funds from the market as being the shareholders is
another option to collect the funds. The company can raise the funds by equity subject
to the shareholders interest.
Out of the above options, without impacting on the working capital the Debt funds are
efficient if the funds are not available from the equity raising.
6. Audit Plan:
Audit for the company should be planned by two different means:
1. Internal audit
2. External Audit
3. Compliance Audit
For the Internal Audit the company should plan to have the audit once in a month for approx..
2 days where they will trace the internal control system and the compliances as well. Further
the internal auditor should come for quarterly audit and review the things for the quarter.
Followed by this they should come for the final audit for the whole year and then submit the
report accordingly.
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For the External Audit, the interim audit should be placed and be done in each quarter so to
check the period end transactions and identify the difference from the periods. Followed by
this the company should ask the auditors to report and discuss the interim audit report to the
management as soon as possible. For the final audit the audit report should be submitted to
the board and then place the report with the shareholders in the general meeting.
Compliance audit: This needs to be reviewed with the compliance check and should be done
by the Company Secretariat in practice so to ensure that the company should be compliane in
all diameter and the company legal obligations are not outbound accordingly.
Conclusion and Recommendation:
As per the financial data are concern the company has a good debt equity ratio and but the
current ratio is not upto the mark and so the company needs to work out on the current ratio
and see the potential where the company can find the ways to improve their short term loans
and arrangement of the working capital will work out. The solvency of the company is
higher than the benchmarked companies. But the sales turnover of the company has not been
productive and not increased from the last years, so the company should put effort to increase
on that segment. Further to this the company has a good track record on the payment of
dividend but as it is lower than the previous years so the interaction to the company shares
are very less. But the area where the company can boost the share price is the increase in
sales and reduction of the fixed cost. This will insight the shareholders to put more money
into the business and get a good return from it. The main growth is the profit where the sights
of the investors are always there and so the company growth is pushing the shareholders to
invest more to the business. The shares of the company has two different aspects i.e. reserves
and the profit segments, the profit segments are been increasing as the potential is increasing
and the share retention has helped the company to get return to the existing shareholders
initially and then later to the new persons who are stakeholders i.e. the financial institutions
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whose value can be reduced as the debt ratio has gone down in previous years and so that can
still go down
So, far the project is concern, if the company want to put the money into the project the
company should identify the project length and then the plans can be chosen from the above
options, but the short term loan will not be viable for a long term projects and it will also
effect the working capital of the company. So, that needs to be considered when the project
finance option is to be chosen.
References:
1. Crocodile Garments, 2018, “Annual report”, Available from:
https://www.crocodile.com.hk/en/financial_reports.php
2. Bloomberg.com, 2018, “Market shares of the company”, Available from:
https://www.bloomberg.com/markets/stocks?cic_redirect=fallback
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3. Webb site.com, 2017, “Crocodile Limited Annual Reports”, Available from:
https://webb-site.com/dbpub/docs.asp?p=1492&s=spdup
4.
5. Highfashiongroup, 2018, “Annual Report”, Available from:
http://125.215.221.120/e_index.asp?action=content&id=5344
6. Ygm.com, 2018, “Annual report of Yangtzekiang Garments Limited”, Available from:
https://www.ygm.com.hk/index.php/en/investor-relations/financial-report-2
7. Investopedia.com, 2018, “Vertical and Horizontal Analysis” Available from:
https://www.investopedia.com/terms/v/vertical_analysis.asp
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