Naspers Limited Case Study

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Naspers Limited Project 1. The three main users of financial statements include: Prospective investors use financial statements to assess whether or not investing in a company. They predict future dividends by looking at disclosed profit in the financial statements and can judge how risky a business is by fluctuating profits. Lenders and Other Creditors (institutions like banks and other lending institutions) use financial statements to decide whether to help the company with working capital or to issue debt security to it. 2. The three committees established by the board are the Audit, Nomination & Governance and Compensation committees. The audit committee is charged with the oversight of financial reporting and disclosure. A nomination committee…show more content…
An executive director is a member of the board of directors who is also an employee. They will have a specific role such as finance director and as such be responsible for the day to day running of the company. A non executive director is a member of the board who is not an employee but on the board for his/her expertise and takes a part in decision making at board meetings. All the rules, practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of the many stakeholders in a company - these include its shareholders, management, customers, suppliers, financiers, government and the community. The King (III) 4. The purpose of an audit is to provide an objective examination of the financial statements, which increases the credibility and value of the financial statements produced by the company. It therefore increases user confidence of financial statement, reduce investor risk and consequently reduce the cost of capital of the preparer of the financial statements. The statements were audited by PwC. 5. MWEB, MNet, and MultiChoice Groupe Canal+ and they produce Canal+ which are premium and theme channels. 6. There are 415 540 259 ordinary shares in…show more content…
9. An asset that is not physical in nature. Corporate intellectual property items such as patents, trademarks, copyrights, goodwill and brand recognition. The company has Intellectual property rights and patents of R162m, subscriber base of R204m, brand name and title rights of R3794m and software of R573m 10. Dividends are not an expense but rather a distribution of the retained earnings Yes, an amount of R1324m. Retained earnings (2012) + net profit for year – retained earnings (2013) 11. No, 30% of R328m is R91,84m and the taxation is R60m, a reason for this is that some incomes may be tax exempt or a portion of said incomes. R64m. In the statement of cash flows 12. In the Media section 125141c -1481c. It represents the difference between the high price and the low price in one trading day. It is 12.4. It is the ratio between a company’s share price to its earnings per share. It can be used to see if stock price is overvalued. Companies with a high PE are usually seen as growth

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