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Caring Pharmacy Group Berhad Case Study

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Caring Pharmacy Group Berhad Case Study
Company that we choose Caring Pharmacy Group Berhadused the source of financing for the purpose of raising fund for future investment projects and working capital or acquisition. Caring Pharmacy Group Berhad are preparing for the next stage of growth. The future investment project is investing in the human capital and stepped up for the recruitment for senior management and frontline staff. These projected bring the impact to the current financial year’s bottom line but Caring Pharmacy Group Berhad think that it is an essential investment to make sure the continued growth of the Group in term of long run.
Short term sources of financing
Caring Pharmacy Group Berhadused borrowing as their source of financing clearly shown in their annual report. The sources can be divided into two which are long term financing and short term financing.
There are some short term sources of financing in Caring Pharmacy Group Berhad. According to the annual report, Caring Pharmacy Group Berhad has short term bank loan with an amount of RM121, 412 in 2014. The short term bank loan is repayable within one year. When a business do not have …show more content…
Issue share capital is one of the ways for Caring Pharmacy Group Berhad to raise their funds expansion without incurring too much debt. The company had issued 35, 000,000new ordinary shares of RM1.00 each at an issue price of RM1.25 each per ordinary share for public issue and listing. The issuance of these new ordinary shares has created a share premium account of RM8, 750,000 of which RM1, 348,084 being expenses directly attributed to the issuance of these shares were written off against the share premium account. Besides, the amount of share capital is RM217, 706,400 which is include acquisition of subsidiaries (RM182, 706,397) and public issue (RM35, 000,000) while share premium is RM7, 401,916 which include premium from public issue and listing
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