Describe about the Computer Organisation and Architecture of Companies?
The Cosco Corporation (Singapore) limited and the Singapore shipping limited are the companies from the same industry of ship building and other related activities. Both of them are the keen competitors of each other. The cosco company revenue is not very good many ups and down evident in their financial statement. For knowing the trend a of any company’s position, the comparison of the financial data with other company need to be done and also its past years financial data need to be analysed. Here also above mentioned company’s last three years data are analysed and compare with each other. It is to be noted that such comparison of past years data gives the behaviour of its operation however it does not evident any future of the company. As the future of the company can be affected by some proposed future moves moves which can be non financial in nature. In the below analysis the comparison of income statement, balance sheet and cash flow are carried out .
Comparison of Balance sheet between two companies:
Cosco Corporation (Singapore) limited:
The cash and cash equivalent of the company has been increased of 0.3billion $ from the year 2012 to 2013 and such increase was done as a result of borrowing the funds from the bank as a working capital. During the period of 2013 to 2014 the cash balance was decreased to 0.4 billion $.
The trade receivables of the cosco company have been increased from 165.7 million to 2.9 billion $. The total amount of such are been increased as a result of new construction contracts have been received and it was further increased to 4.6$ billion in 2014.
The trade payables are been increased in the period of 2012 to 2013 from 451.5 million to 2.7$ billion but such position was not there during the period of 2014 as it was decreased due to less advance amount is received from the customers.
The inventory positions of the company remain stagnant.
The current assets ratio of the cosco corporation limited for the year 2014 was calculated and it comes to 1.33 times which was sound ratio as compare to industry standards but when comparison is made with the same industry company with Singapore shipping limited than the ratio was very low in front of Singapore limited ratio.
Singapore shipping limited:
The cash and cash equivalent of the company was for the period starting from 2012 to 2013 was 12.38 million $ and raised ton 17.24 $ million and there was minute increase in the cash equivalent which was 17.95$ million of the whole group. The above increase in amount was due to purchasing the material and the completion of the contracts which makes the inflows of the cash.
The trade receivable of the company in the year 2014 was very high which occurs due to higher sales of the company as compare to other years. The company has less trade receivable in against of cosco limited. It seems that such company is huge in comparison of the Singapore shipping limited. The company receivable increased in 2014 was due to advance amount and amount due of the customer for the contract was received in such years.
The current assets of the company in against of current liabilities was more than it so we can comment that the company has sound background as the current assets in 2014 was 25989000$ in against of current liabilities was 9448000$ so the current assets ratio comes to 2.75 times which is consider as more than required industry ratio and it was followed for last three years.
Comparison of two companies as per income Statement:
Cosco Corporation (Singapore) limited:
The turnover of the consolidated company of cosco limited was decreased as compared to 2012 by 6.1% from 3.7$ billion to 3.5$ billion. The decrease in amount in 2013 was happened due to lower contribution of the ship repair department and the ship building department. In the period of 2013 to 2014 the company turnover was increased at very fast rate at the rate of 21.5% from the 6.5% and if we can see in terms of money it was 4.3$ billion to 3.5$ billion and such increase was due to mainly growth in the revenue of the ship repairs and the ship building.
Let see as per profitability of the company the profit was decreased by 33.8% in 2013 as per 2012 the amount was 484.9$ million in 2012 and in 2013 it was 321.2$ million and such a decrease in profit was due to higher inventory write downs and the provision was created for the construction contracts which resulted into lower profit contribution towards the company. In 2014 the company profitability was been decreased from 9.4% from 321.2 to 291.0 million dollar which was gain mainly due to inventory written down.
Interest expense increased by 15.2% to $127.7 million in 2014 due to higher bank borrowings deployed to fund shipyard operations.
The tax credit of $9.0 million in 2014 is mainly due to tax incentives available to certain subsidiaries in People's Republic of China (PRC), recognition of previously unrecognized deferred tax assets in the current financial year and the adjustment for over provision of tax in respect of prior years.
Net profit attributable to equity holders of the Company decreased 31.8% from $30.6 million in 2013 to $20.9 million in 2014.
Singapore shipping limited:
The sales of the company in the year 2012 was 19711$ which was increased little bit in the year 2013 which was 19914$ and it was further increased to 2.3 times than 2013 revenue to 34446 $. The main income in 2014 was come from the department of the charter hire and other freight charges.
The profitability of the company in the year 2014 was increased to 8558 $ as compare to 6807$ in 2013 which was mainly due to increase in sales in the year 2014 the amount was increased as a result of higher sales and less expenses incurred of the company.
The finance cost of the company was decreased in 2014 as compared to 2013 from 814 $ to 690$. The total finance cost in 2012 was 899$ and it was decreased in 2013 as a result of payment of the borrowing taken from the bank.
There is no taxation expense to the company in the current years as the current year tax is been absorbed against the deferred tax expense and setoff is been made. The amount of tax was 69$.
The exchange difference in 2012 was 162$ and it was decreased to 88$ which occurs due to foreign exchange gain in foreign currency.
Please enter a valid email address to download a sample you request.
We will send you answer file on this email address.
MyAssignmenthelp.com is one of the noted service providers that deliver essay help. We provide tailored essay assistance to make sure that student gets online essay help exactly in the way they want it to be written. We at MyAssigemnthelp.com have built teams of consultants, who readily attend every query related to help me writing my essay. We provide essay writing help in forms of tips and steps in order o assist students with tough essay assignments.