Financial Analysis Report

This report provides a comprehensive financial analysis of two companies, Vita Group Limited and Redflow Limited. It compares their financial performance and position using various financial ratios, including profitability ratios, asset efficiency ratios, liquidity ratios, and debt ratios. The analysis covers a three-year period, examining trends and changes in key financial metrics. The report includes a detailed examination of the companies' financial statements, providing insights into their revenue, expenses, assets, liabilities, and cash flows. A comparative analysis highlights the strengths and weaknesses of each company, offering a basis for investment decisions. The report concludes with recommendations based on the findings of the analysis, suggesting which company presents a more attractive investment opportunity. The limitations of the analysis, primarily the reliance on historical data, are also acknowledged.

Finance
Name of the student:
Name of the University:
Authors Note:

Table of Contents
Part 1................................................................................................................................................6
Answer to Question 1......................................................................................................................6
Background summary of Vita Group..........................................................................................6
Answer to Question 2......................................................................................................................7
Answer to Question 3......................................................................................................................7
Answer to Question 4......................................................................................................................7
Redflow Limited..........................................................................................................................7
Vita Group Limited......................................................................................................................8
Answer to Question 5......................................................................................................................9
Vita Group Limited......................................................................................................................9
Redflow Limited..........................................................................................................................9
Part 2..............................................................................................................................................10
ANSWER TO QUESTION 1:.......................................................................................................10
ANSWER TO QUESTION 2:.......................................................................................................11
ANSWER TO QUESTION 3:.......................................................................................................11
ANSWER TO QUESTION 4:.......................................................................................................12
ANSWER TO QUESTION 5:.......................................................................................................13
ANSWER TO QUESTION 6:.......................................................................................................13
ANSWER TO QUESTION 7:.......................................................................................................13

ANSWER TO QUESTION 8:.......................................................................................................14
ANSWER TO QUESTION 9:.......................................................................................................14
Part 3..............................................................................................................................................15
Answer to Question 1....................................................................................................................15
Redflow limited.........................................................................................................................15
Vita Group Limited....................................................................................................................15
Answer to Question 2....................................................................................................................15
Redflow limited.........................................................................................................................15
Vita Group Limited........................................................................................................................15
Answer to Question 3....................................................................................................................16
Redflow limited.........................................................................................................................16
Vita Group Limited....................................................................................................................16
Answer to Question 4....................................................................................................................16
Redflow limited.........................................................................................................................16
Vita Group Limited....................................................................................................................16
Answer to Question 5....................................................................................................................16
Redflow limited.........................................................................................................................16
Vita Group Limited....................................................................................................................17
Answer to Question 6....................................................................................................................17
Redflow limited.........................................................................................................................17

Vita Group Limited....................................................................................................................17
Answer to Question 7....................................................................................................................17
Redflow limited.........................................................................................................................17
Vita Group Limited....................................................................................................................17
Answer to Question 8....................................................................................................................18
Redflow limited.........................................................................................................................18
Vita Group Limited....................................................................................................................18
Answer to Question 9....................................................................................................................18
Redflow limited.........................................................................................................................18
Vita Group Limited....................................................................................................................18
Answer to Question 10..................................................................................................................18
Redflow limited.........................................................................................................................18
Vita Group Limited....................................................................................................................19
Answer to Question 11..................................................................................................................19
Redflow limited.........................................................................................................................19
Vita Group Limited....................................................................................................................19
Answer to Question 12..................................................................................................................19
Vita Group Limited....................................................................................................................19
Answer to Question 13..................................................................................................................19
Redflow limited.........................................................................................................................19

Vita Group Limited....................................................................................................................20
Answer to Question 14..................................................................................................................20
Part 4..............................................................................................................................................21
Introduction....................................................................................................................................21
Comparative performance.............................................................................................................21
Limitation of analysis....................................................................................................................21
Conclusion and recommendation..................................................................................................21
Reference.......................................................................................................................................23

Part 1
Answer to Question 1
Background summary of Vita Group
The Vita Group Company was founded by the Maxine Horne and David McMahon. The
main reason for forming the business was to provide retail outlets to Australians from where they
can buy mobile phones and telecommunication products. The company first started its operation
in 1995. The core business of the company is that it is a retailer that operated under the name
Telstra. The company operated in more than one industry they are telecommunication,
information communication, technology accessories and Athleisure. The company only operates
within Australia and it is one of the truly national organization as it has presence all across
Australia.
Background summary of Red flow limited
The Redflow limited was incorporated in the year 2008. The main reason for
commencing the operation of the company was to provide sustainable solution for storing energy
for various application that includes telecommunication, renewable energy etc. The core business
of the company was to develop, manufacture, and selling of Zinc bromine flowing electrolyte
battery module (ZBM). The company is not diversified and it is only engaged in the Electrical
Components & Equipment industry. The company currently only operates in Australia. The
company operates in USA and Germany through subsidiary (Vogel, 2014).
Answer to Question 2
The corporate governance report of both the companies provided discussion of
fulfillment in the application of the various principles of corporate governance under the heading

of the principles. The eight principles of corporate governance under which heading the report
have been discussed are:
 Principle 1: Lay solid foundations for management and oversight;
 Principle 2: Structure the Board to Add Value;
 Principle 3: Ethical and Responsible Decision Making;
 Principle 4: Safeguard Integrity in Corporate Reporting;
 Principle 5: Timely and Balanced Disclosure;
 Principle 6: Respect the Rights of Security Holders;
 Principle 7: Recognize and Manage Risk;
 Principle 8: Remunerate Fairly and Responsibly;
Answer to Question 3
The corporate governance report is in page 19 of the annual report of the company Red
flow limited. In case of Vita group the company has issued a separate corporate governance
statement. In both the cases the report contains the information related to the corporate
governance effort of the company and compares that with the principles of corporate governance
of the company (Kallala et al., 2015).
Answer to Question 4
Redflow Limited
In case of Redflow limited there are four members in the board of directors. The highest
position was held by Mr. Simson Hackett as the Executive chairman of the company. The deputy
chairman of the company was Mr. Howard Stack. The total remuneration of Mr. Simson Hackett
is $92447 and that of Mr. Howard Stack was $58342.

Vita Group Limited
The two most important directors of the company are Dick Simpson and Maxine Horne.
The Dick Simpson is the chairman and his remuneration is $205883 in 2016 and it was $185229
in 2015. On the other hand, Maxine Horne is the Chief Executive Officer and the remuneration is
$615371.
Answer to Question 5
Vita Group Limited
The consolidated financial statement of the company includes the financial statements of
the Vita group limited and its subsidiaries provided below:

Redflow Limited
The company has subsidiary that are provided below:

Part 2
ANSWER TO QUESTION 1:
REDFLOW:
In the current year the amount invested by the company in net assets is $14,266,636. The
amount of net asset is reduced by $203,134 from the year 2015 and the amount increased by
$3,981,065 from the year 2014. This is because in 2016 inventories was reduced compared to
2015 and from 2014 plant and equipment was increased.
VITA GROUP LTD.:
Amount invested in net asset in 2016 is $67,986,000. The net assets have increased over
the years. It was $30,740,000, $48,992,00 and $67,986,000 in the year 2014, 2015 and 2016
respectively. Current and non-current assets have increased.

ANSWER TO QUESTION 2:
REDFLOW:
The total equity in 2016 was 14,266,636. In 2016 decreased slightly from 2015 and
increased significantly from 2014. The reasons behind this is in 2016 reserves increased
significantly compared to 2015 and accumulated losses increased in 2016.
VITA GROUP LTD.:
Total equity in 2016 was $67,96,000. The total equity have also increased over the years
and the reason being retained earnings have increased substantially.
ANSWER TO QUESTION 3:
REDFLOW:
The current assets for 2016 is $15,001,858.
The components of current asset are:
Yes there are changes. Cash and cash equivalents have decreased in 2016 and trade
receivables also decreased.
VITA GROUP LTD.:

Current Asset for 2016 is $72,844,000.
Yes there are significant change. Cash and cash equivalents have increased and term
deposits have been raised in 2016.
ANSWER TO QUESTION 4:
REDFLOW:
The items under non-current liabilities are:
Yes, non-current Warranty claim was absent in 2014 but present in 2015 & 2016.
VITA GROUP LTD.:
The items are:
No. there are no such activity.