Financial Analysis of CSR Ltd: Ownership, Governance, and Performance

Running head: ACCOUNTING FOR BUSINESS MASTERS
Accounting for Business Masters
Name of the Student:
Name of the University:
Author’s Note

1ACCOUNTING FOR BUSINESS MASTERS
Table of Contents
Introduction:....................................................................................................................................3
Overview of the Company...............................................................................................................3
Ownership and Governance Structure:............................................................................................4
Substantial Shareholders:.............................................................................................................4
People involved in the governance of TPG Telecom Ltd Board:................................................5
Calculations of the Fundamental Ratios:.........................................................................................6
Liquid Ratios:..............................................................................................................................6
Financial Leverage Ratios...........................................................................................................7
Efficiency Ratios.........................................................................................................................7
Profitability Ratios:......................................................................................................................8
Market Value Ratios....................................................................................................................8
Graphical representation of movement in Share Price:...................................................................9
Movement in CSR Ltd Share Price Index to All Orders Index...................................................9
Significant Announcement that Influenced Share price of CSR Ltd.........................................10
Calculation of Beta and Required Rate of Return under CAPM:..................................................13
Calculation of Beta for CSK Ltd...............................................................................................13
Explanation behind Conservative Investment...........................................................................13
Calculations of Weighted Average of Cost of Capital..................................................................14
Debt ratio...................................................................................................................................15

2ACCOUNTING FOR BUSINESS MASTERS
Dividend Policy of the Business....................................................................................................16
Letter of Recommendation............................................................................................................17
Reference.......................................................................................................................................18

3ACCOUNTING FOR BUSINESS MASTERS
Introduction:
The main purpose of this report is to analyze the financial statements of CSR ltd. The
report will be focusing on the current financial position of CSR ltd so as to provide a means for
the shareholders to take effective decisions regarding investments. The report will be analyzing
the financial statement of CSR ltd so as to understand the corporate governance policies of the
business and also the ownership structure of the business (Tallon 2013). The report will also be
including calculations of significant ratios which are related to profitability, solvency and
efficiency of the company so as to have a basic understanding of the viability of the business.
A graphical representation of the shares prices of the company will be carried out and the
same will be compared against the all ordinary index to understand the movement in the share
prices over the years. In addition to this, emphasis will be provided on the debt structure of the
business along with the dividend policy of the business (Travlos, Trigeorgis and Vafeas 2015).
The report will be concluding with a letter of recommendations which will be including
significant recommendations regarding investments prospects in the company.
Overview of the Company
CSR limited is considered to be one of the major Australian company which is engaged
in the business of producing building products for the business. The head quarter of the company
is situated in Sydney, Australia. The company is listed in Australian stock exchange. The
company had started off as a sugar refining company as the colonial Sugar Refining Company
and the company expanded its business into milling of sugarcane business (Corporate. 2018).
The company in no time became one of the most important miller and refiner in Australia. With
a further view to diversify the business of the company the company moved to manufacture of