Ambertech Technology Ltd
Letter of Transmittal
16th October 2009
Mr Mukesh Garg
Department of Accounting and Finance
Monash University 400 Dandenong Road
Caulfield Vic 3145
Dear Mr Mukesh Garg,
Ref: Business Valuation Group Project 2 in Semesters 2, Year 2009
Here is the report you requested on 16th October, 2009. This report attempts to analyze Ambertech Technology Limited by industry analysis, accounting analysis, financial analysis and evaluation and forecasting from ***to ***** through ***** and relative valuation multiple models.
We would like to express our sincere thanks for your valuable guidance and support during the research and completion for this assignment. Please feel free to contact us if you have any further queries regarding this report.
Yours sincerely,
Shuai LI
ID 21643873 sli66@student.monash.edu.au
Fei KONG
ID 21631239 fkon2@student.monash.edu.au
Table of Contents
Business and Industry analysis 5
Industry Analysis: Hardware and Electronic Equipment Industry 8
Corporate Governance Analysis 10
Assessing the accounting flexibility 11
Evaluate Accounting strategy 12
Evaluate the Quality of Disclosure 12
Earnings quality assessment 13
Sales growth vs. Receivables 14
Plant and Equipment Treatment 14
Foreign currency transactions and Balances 15
Evaluating operating management 16
Common-sized Income statement and profitability ratios 17
Evaluating Investment management 19
Long term assets management 20
Evaluating financial leverage 21
Castagna and Matolcsy Model 29
Forecast and Valuation Analysis 30
Reasonable Assumptions for forecasting purpose:...