You are currently employed as an Investment Analyst at Oman Investment Agency (OIA). The Company is currently considering investing in Raysut Cement Company.Required:1- Evaluate the Liquidity position for Raysut Cament Company using Cash-Based Ratio measures for the year 2019. Explain the company’s current liquidity position clearly with clear reference to the company’s operational environment. (The statement of financial position is attached) RAYSUT CEMENT COMPANY SAOG AND ITS SUBSIDIARIESParent company and consolidated statement of financial positionas at 31 December 2019ParentConsolidatedNotes2019201820192018ASSETSNon-current assetsROROROROGoodwill64,153,29529,050,72646,617,068114,356,38821,577,59445,798,58690,041,013Property, plant and equipmentRight-of-use assetsInvestment in an associateInvestment in subsidiariesReceivable from a related party - non-currentFinancial assets at fair value throughother comprehensive income61,469,21410113,34366,641,73511234,75979,166,3031,300,000121814125,000125,000125,000125,000Total non-current assets173,795,324128,349,292182,676,050136,199,358Current assetsInventoriesTrade receivables – net1526,619,38215,462,335849,0002,616,10211,416,40022,608,68911,625,1742,834,0003,229,0027,441,5704,700,0001,092,84132,764,01726,045,24029,003,39318,327,84316Advance to a subsidiaryFinancial assets at fair value through profit or lossPrepayments, advances and other receivablesShort term depositsCash and bank balances13172,616,1029,757,4383,229,0026,558,9514,700,0001,751,131181920203,465982,464Total current assets57,166,68453,531,27672,165,26163,570,320Total assets230,962,008181,880,568254,841,311199,769,678EQUITY AND LIABILITIESEQUITYShare capitalShare premiumLegal reserveAsset replacement reserveVoluntary reserveRetained earnings20,000,00013,456,8736,666,6673,647,5666,352,43479,245,05620,000,00013,456,8736,666,6673,647,5666,352,43481,560,2312120,000,00013,456,8736,666,6673,647,5666,352,43495,671,60620,000,00013,456,8736,666,6673,647,5666,352,43495,911,87522232425Equity attributable to Owners of the Parent CompanyNon-controlling interest129,368,596131,683,771145,795,14674,740146,035,41574,740Total equity129,368,596131,683,771145,869,886146,110,155LIABILITIESNon-current liabilitiesBorrowingsLease liabilities2720,359,58624,064,28023,576,6044,113,000672,15515,950,82115,434,4714,113,0001,267,13920,359,58628Deferred taxation293,950,000824,6983,950,0001,456,052End of service benefits30Total non-current liabilities52,426,03925,134,28436,765,43125,765,638Current liabilitiesBorrowingsLease liabilitiesTrade and other payablesShort term borrowingsTaxation9,101,5286,470,82818,723,76314,417,254454,000276,905,17925,721,0936,595,83622,425,45217,009,613454,0006,945,314283117,315,33419,525,763243,8041,179,0044941842,000Total current liabilities49,167,37325,062,51372,205,99427,893,885Total liabilities101,593,41250,196,797108,971,42553,659,523Total equity and liabilities230,962,008181,880,568254,841,311199,769,678Net assets per share320.6470.6580.7290.731suegliaeGhose Jøtirmoy Pratul KrishnaChief Executive OfficerAhmed Bin Yousuf Bin Alawi Al IbrahimChairmanThe accompanying notes form an integral part of these parent company and consolidated financial statements.

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You are currently employed as an Investment Analyst at Oman Investment Agency (OIA). The Company is currently considering investing in Raysut Cement Company.

Required:

1- Evaluate the Liquidity position for Raysut Cament Company using Cash-Based Ratio measures for the year 2019. Explain the company’s current liquidity position clearly with clear reference to the company’s operational environment. (The statement of financial position is attached)

RAYSUT CEMENT COMPANY SAOG AND ITS SUBSIDIARIES
Parent company and consolidated statement of financial position
as at 31 December 2019
Parent
Consolidated
Notes
2019
2018
2019
2018
ASSETS
Non-current assets
RO
RO
RO
RO
Goodwill
64,153,295
29,050,726
46,617,068
114,356,388
21,577,594
45,798,586
90,041,013
Property, plant and equipment
Right-of-use assets
Investment in an associate
Investment in subsidiaries
Receivable from a related party - non-current
Financial assets at fair value through
other comprehensive income
61,469,214
10
113,343
66,641,735
11
234,759
79,166,303
1,300,000
12
18
14
125,000
125,000
125,000
125,000
Total non-current assets
173,795,324
128,349,292
182,676,050
136,199,358
Current assets
Inventories
Trade receivables – net
15
26,619,382
15,462,335
849,000
2,616,102
11,416,400
22,608,689
11,625,174
2,834,000
3,229,002
7,441,570
4,700,000
1,092,841
32,764,017
26,045,240
29,003,393
18,327,843
16
Advance to a subsidiary
Financial assets at fair value through profit or loss
Prepayments, advances and other receivables
Short term deposits
Cash and bank balances
13
17
2,616,102
9,757,438
3,229,002
6,558,951
4,700,000
1,751,131
18
19
20
203,465
982,464
Total current assets
57,166,684
53,531,276
72,165,261
63,570,320
Total assets
230,962,008
181,880,568
254,841,311
199,769,678
EQUITY AND LIABILITIES
EQUITY
Share capital
Share premium
Legal reserve
Asset replacement reserve
Voluntary reserve
Retained earnings
20,000,000
13,456,873
6,666,667
3,647,566
6,352,434
79,245,056
20,000,000
13,456,873
6,666,667
3,647,566
6,352,434
81,560,231
21
20,000,000
13,456,873
6,666,667
3,647,566
6,352,434
95,671,606
20,000,000
13,456,873
6,666,667
3,647,566
6,352,434
95,911,875
22
23
24
25
Equity attributable to Owners of the Parent Company
Non-controlling interest
129,368,596
131,683,771
145,795,146
74,740
146,035,415
74,740
Total equity
129,368,596
131,683,771
145,869,886
146,110,155
LIABILITIES
Non-current liabilities
Borrowings
Lease liabilities
27
20,359,586
24,064,280
23,576,604
4,113,000
672,155
15,950,821
15,434,471
4,113,000
1,267,139
20,359,586
28
Deferred taxation
29
3,950,000
824,698
3,950,000
1,456,052
End of service benefits
30
Total non-current liabilities
52,426,039
25,134,284
36,765,431
25,765,638
Current liabilities
Borrowings
Lease liabilities
Trade and other payables
Short term borrowings
Taxation
9,101,528
6,470,828
18,723,763
14,417,254
454,000
27
6,905,179
25,721,093
6,595,836
22,425,452
17,009,613
454,000
6,945,314
28
31
17,315,334
19,525,763
243,804
1,179,004
49
41
842,000
Total current liabilities
49,167,373
25,062,513
72,205,994
27,893,885
Total liabilities
101,593,412
50,196,797
108,971,425
53,659,523
Total equity and liabilities
230,962,008
181,880,568
254,841,311
199,769,678
Net assets per share
32
0.647
0.658
0.729
0.731
suegliae
Ghose Jøtirmoy Pratul Krishna
Chief Executive Officer
Ahmed Bin Yousuf Bin Alawi Al Ibrahim
Chairman
The accompanying notes form an integral part of these parent company and consolidated financial statements.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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