CASE STUDIES IN FINANCE (FIN3CSF) 代写

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  • CASE STUDIES IN FINANCE (FIN3CSF) 代写

    CASE STUDIES IN FINANCE (FIN3CSF) – STUDY PERIOD 1, 2017
    CASE STUDY 4: FINANCIAL STATEMENT ANALYSIS AND FINANCIAL
    DISTRESS PREDICTION
    Maurice Blackburn Lawyers has been approached by a number of disgruntled shareholders of
    DSHE Holdings Limited (previously named Dick Smith Holdings Limited until June 2016, and
    popularly known as the Dick Smith Electronics business) looking to form a class action to
    commence legal proceedings against the directors of DSHE Holdings Limited and the company
    auditors, Deloitte Australia (Australian partnership of Deloitte Touche Tohmatsu). The
    potential class action claim against the directors of DSHE Holdings Limited is centred on
    incompetent and fraudulent management, failure to inform shareholders and the market earlier
    about inventory, cash resources and financing issues impacting on the going concern likelihood
    of the company, and the resulting entry of the company into voluntary administration. The
    related allegation is that Deloitte Australia, as the company’s auditor, failed to identify the
    development of these operating and financial issues as part of the auditing of Dick Smith
    Holdings Limited’s 2015 financial statements and issued a clean, unqualified audit opinion
    rather than a qualified or adverse opinion that would likely have been forthcoming had such
    issues and associated internal control weaknesses been realised.
    The Dick Smith business has been in operation in various forms since the late 1960s. The
    business was created in 1968 by the well-known Australian entrepreneur, Dick Smith, and his
    wife, with an initial capital investment of just $610, and focused on selling car radios and
    electronic components. The business later branched out into computers and other electronic
    equipment, including telephone and television products. In 1982, the business was rationalised
    and sold to Woolworths Limited, which invested substantially in further developed the retail
    chain of Dick Smith Electronics stores. Woolworths Limited operated the business relatively
    successfully for approximately 30 years, until they sold the business to the Australian-based
    Anchorage Capital Partners private equity firm in 2012. After paying $115 million to purchase
    the business (but effectively only $20 million in cash) from Woolworths Limited, the private
    equity firm conducted a public listing of the Dick Smith Electronics business (named initially
    as Dick Smith Holdings Limited, and most recently DSHE Holdings Limited) on the Australian
    Securities Exchange (ASX) in December 2013, with the business valued at the time of public
    listing at approximately $520 million. On January 4 th 2014, Dick Smith Holdings Limited
    released an announcement on the ASX that, due to cash flow problems and lack of ongoing
    funding support from its capital providers and Banking Syndicate, the company has been
    placed into voluntary administration. Following the inability of the appointed receiver and
    manager, Ferrier Hodgson, to suitably restructure the business or find an alternative buyer, the
    decision was made to liquidate the company and close all of the Dick Smith Electronics store,
    with the company suspended from official quotation on the ASX on August 23 rd 2016.
    Maurice Blackburn Lawyers has requested your accounting and consulting firm to conduct an
    investigative and forensic assessment of the Dick Smith Holdings Limited business and provide
    a report and analysis to aid in their final decision-making as to whether a class action lawsuit
    is likely to be successful. The brief provided to your firm is that the report should include the
    following:
     An overall financial statement analysis of the Dick Smith Holdings Limited business, with
    particular focus on trends and changes in the inventory, working capital, cash and financing
    aspects of the company’s operations.
     An assessment of the financial health of the company using recognised financial distress
    (bankruptcy) prediction models
     An examination and reporting on relevant information releases, and any other
    documentation, by the company about their operating activities and going concern status.
     Based on the above analysis, an overall recommendation as to whether there is potential
    basis for a claim against the Dick Smith Holdings Limited directors and senior management
    and/or the company’s audit firm, Deloitte Australia.
    Required:
    This case study report is due to be submitted to the Managing Partners of Maurice
    Blackburn Lawyers by 5.00pm on Friday, 5 th May 2017, via the FIN3CSF LMS site. This
    case study contributes 15% to the overall final assessment in the FIN3CSF subject. This
    case study is to be completely individually, and the maximum word limit, excluding
    calculations and financial analysis reporting, is 1,000 words.
    CASE STUDIES IN FINANCE (FIN3CSF) 代写