This assignment aims at developing a clear understanding of students on different sources of funds used/raised by companies. They will need to identify different sources of fund used by two selected...

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Abstract
In this paper, the 2018 annual report of two companies – Qantas Airways ltd and Caltex ltd are studied and analyzed over past three years. The analysis is made mainly on two things – sources of funds the companies have, their merits and demerits and the different items of Balance sheet. The study reveals that both companies have significant internally generated fund while long term borrowings are major external source of fund. Both the companies don’t issue any equity over past three years to raise the fund. Long term borrowings are mainly interest bearing instruments and Qantas Airways ltd has higher proportion of long term borrowings in its capital than Caltex ltd has. Such capital structure makes the Qantas Airways ltd little riskier. The assets are categorized as per traditional way in current and non-current Assets. Both the companies project their financial performance according to the accounting standards. The AASB 137 Provisions, Contingent liabilities and Contingent assets are strictly applied to both the companies in preparing their annual report and accordingly Provisions, Contingent liabilities and Contingent assets are treated. Assets are measured and valued according to the accounting standards and Annual report is prepared accordingly.
List of Content
Introduction                                    Page No 3
About Company
    Qantas Airways ltd                            Page No 4
    Catex ltd                                Page No 5
Sources of fund                                Page No 6
Evolution of sources of fund                             Page No 7
Internally and externally generated fund                    Page No 8
Merits and short comings of different sources of fund            Page No 9 to 10
Identification of liabilities                            Page No 11
Key provisions under AASB 137                        Page No 12 to 13
Categories of assets                                Page No 14
Measurement basis of assets class                        Page No 15
Conclusion                                    Page No 16
References                                    Page No 17
Introduction
Adequate and all time availability of fund are necessary for long term sustainability and growth, for any business. Fund can be generated either internally or externally. The nature and suitability of fund depend upon several factors like company’s own performance, its capital structure, strategic planning and policy, credit worthiness of the business and other economical factors. Here, two firms – Qantas Airways ltd and Caltex ltd are taken from two different Industries – Airlines and Petroleum Industry respectively and their funds and assets are evaluated through their annual report of 2018. Liabilities and Assets are evaluated for their classifications, measurements and reporting in Balance sheets. Contingent assets and liabilities are also evaluated and checked how companies have treated them and reported in Annual report. Further, different sources of funds are analyzed. In addition to evaluation of their internal and external sources of fund, assets and liabilities; the guidelines of AASB 137 Provisions, Contingent liabilities and contingent assets are analyzed and tried to check whether they adhere to it in preparation of their report.
About Company
Qantas Airways ltd is one of the most prominent carrier airlines of Australia. Its domestic market share is almost 65% and carries over 19% of the passengers travelling in and out of the Australia. Qantas Airways has more than 280 aircrafts presently in service in which almost 200 are Boeing aircrafts. It started its domestic aviation business in 1920 and International flight operation in 1935. Qantas was founded by Hudson Fysh, Paul Mc Ginness and Fergus McMaster as Queensland and Northern Territory Aerial Services Limited in 1934, Britain’s Imperial Airways and Qantas merged together and formed a new company named Qantas Empire Airways Limited (QEA). Qantas dominates the Australian airlines in terms of revenue and infrastructure both. In March 2018, Qantas Boeing 787 Dreamliner started non-stop commercial flight between Australia and Europe and became the first aircraft to provide such non-stop service. In addition to the core business, Qantas operates a number of subsidiaries including QantasLink, Qantas Freight, Qantas Holidays, Jetstar, Q catering and Express Ground Handling.
    Market Cap
    11.05 Billion
    Enterprise value
    14.18 Billion
    Trailing P/E
    13.14
    Price/Sales
    0.62
    Price/Book
    3.22
    Profit margin
    4.96%
    Return on Assets (ROA)
    4.00%
    Return on Equity (ROE)
    24.11%
    Earnings per share (EPS)
    0.54
    Current ratio
    0.49
    Debt-Equity ratio
    152.04
    Beta
    0.41
    52 week change
    14.96%
    Share outstanding
    1.57 Billion
    Dividend payout ratio
    40.44%
Source: https://finance.yahoo.com
Caltex ltd is petroleum brand name of Chevron Corporation. it operates in almost more than 60 countries. Caltex was established in 1936 as a joint venture company between Texas company and Standard oil (later named Chevron Corp). In 1968, it was named as Caltex Petroleum Corp. In 2001, both the parent companies merged together and formed Chevron Texaco that later renamed as Chevron but Caltex renamed as on if its major brand name. Till March 2015, Chevron owned 50% of share while rest of the 50% was owned by Australian shareholders. In March 2015, 50% of Chevron’s holding was sold to Australian shareholders and company got renamed as Caltex Australia. In retail sector of petroleum products, Caltex is most renowned name that holds substantial market share. It deals in Petroleum, Diesel, Auto gas, Lubricants and motor oil. Caltex is the only integrated oil refining and marketing company listed on the Australian Security Exchange. A large portfolio of petroleum products, Strategic acquisitions in past and a strong backing of Chevron makes it dominant player in global market.
    Market Cap
    8.72 Billion
    Enterprise value
    10.89 Billion
    Trailing P/E
    27.10
    Price/Sales
    0.40
    Price/Book
    2.81
    Profit margin
    1.53%
    Return on Assets (ROA)
    4.44%
    Return on Equity (ROE)
    10.37%
    Earnings per share (EPS)
    1.29
    Current ratio
    1.26
    Debt-Equity ratio
    70.00
    Beta
    0.59
    52 week change
    35.54%
    Share outstanding
    249.71 million
    Dividend payout ratio
    91.61%
Source: https://finance.yahoo.com
Sources of fund
The major sources of fund of Qantas Airways ltd over past three years are as follows –
· Cash receipts from...