Financial Analysis of 5G Networks Limited

Running head: REPORT 0
PRINCIPLES OF FINANCIAL MANAGEMENT
SEPTEMBER 18, 2019
STUDENT DETAILS:

REPORT 1
Contents
Introduction........................................................................................................................2
Industry description............................................................................................................2
Company description.........................................................................................................3
Financial Instrument Analysis-...........................................................................................3
Financial instruments.....................................................................................................3
Off balance sheet business............................................................................................4
Financial Structure Analysis..............................................................................................4
Three main financial ratios for creditors.........................................................................4
Three main financial ratios for shareholders..................................................................5
Calculation of financial ratios..........................................................................................5
Financial market analysis..................................................................................................6
Role of financial players in communication service sector............................................6
Need of government intervention in communication service industry...........................6
Involvement of 5G Networks limited in unethical practices............................................7
Findings, conclusion and recommendations.....................................................................7
References.........................................................................................................................9

REPORT 2
Appendix..........................................................................................................................10

REPORT 3
Introduction
In the present world, the Australian telecommunications industry has practised great
changes, creating extensive chances for the organisations such as 5G Networks limited.
In recent, the company is starting to consider commercial 5G network ongoing live. The
past generation made focus on the consumers along with private communication but
now 5G would serve consumer, organisations and take the internet of thing to upcoming
stage wherever the superior connectivity is the precondition. In the following parts, the
communication service sector, overview of 5G network limited its financial instrument
analysis as well as financial structure analysis is discussed. This report also discusses
the financial market analysis and recommendations.
Industry description
There are various companies in communications services sector that render
communication service mainly throughout the fixed line, cellular, high bandwidth,
wireless-connection, or fibre optic cable networking. The communication services
industry is economical, diverse as well as interlinked sector utilising global satellite, as
well as wireless transmission system. The communication service industry is the main
element of the economy as this underlies functions of all business, public security
organization, as well as administration. In Australia, the telecommunications sector runs
in the atmosphere of completely open competition. It is open to take entry in
telecommunication marketplaces open with minimal operational requirement. There are
2 major groups of operators:

REPORT 4
1. Service provider—the service provider who uses carrier facility for rendering the
phones, net service along with content related services, like Pay TV to public.
2. Carriers—they are people who run main telecommunication amenities.
Moreover, in this sector, the foreign ownership is subject to common provision of
the Foreign Acquisitions and Takeovers Act 1975. It does not include Telstra. As per
the Telstra Corporation Act 1991, just thirty-five per cent of Telstra takes may be owned
by the international interest. There are 2 regulators. These are following-
1. the Australian Communications and Media Authority for technical or different
cases (like carrier or services render licensing, as well as number probabilities) in
the Telecommunications Act 1997
2. Australian Competition and Consumer Commission regulate the matter related
to competition matters as per Competition and Consumer Act 2010.
Company description
5G Networks Limited is the licensed telecommunication carrier functioning in Australia.
The mission of the company is to become the partner of choices to unify the flawless
digital experiences for the consumers across information connectivity, data centre as
well as cloud services, all underpinned by the expert supervising service. Because of
the digital leadership, as well as the exceptional customer experience, the main
foundation to the approaches is to enable the customers to thrive in the digital world.
Additionally, this company is devoted to rendering the customer with the best and
proper experience, stated by the vision of company. In addition, the culture of company
is securely centred on the individuals, faith along with teamwork, enabling the staff to

REPORT 5
continually unlock value for the customers throughout modernization, and the expertise
for transforming the digital issues in successful results related to the business. The
company runs the business to work in fast as well as smart way. 5GN Data network
connects businesses to secure, world class techniques for enhancing the relevance
performance along with accessibility. Further, the big shareholder group in the company
has powers over an organisation. The institution often has the share in more developed
corporations, when this is not strange to watch the insider has a fair bit of small entities.
Financial Instrument Analysis-
Financial instruments
It can be analysed by the annual report of 5G networks limited that AASB 9- ‘Financial
Instruments and associated Amending Standards’ would be applicable in retrospect as
well as involves the revised requirement for classification along with amount of the
financial instrument, revised recognitions along with requirements to recognise the
financial instruments as well as basic requirement for hedging the accounting. Further,
the cash as well as cash equivalents involves the cash in hand, deposit held at call with
financial organisations, the short term, high liquid investment with real maturity of 3
months or less than 3 months that are willingly convertible to recognized amount of the
cash, and that is matter to the significant risks of change in the value (Leite and Vieira,
2015).
Further, the financial liabilities along with financial assets are identified while the
corporation becomes the contracting person to the contractual provision to the
instruments. For financial assets, it is corresponding to a date that groups commit itself
to either sale of business assets or purchase of business assets. It can see that the