The Iron Curtain Of Berlin Wall - Free Essay Example

Sample details Pages: 3 Words: 996 Downloads: 6 Date added: 2019/05/07 Category History Essay Level High school Tags: Berlin Wall Essay Did you like this example? For thirty years, an iron curtain was placed across Germany separating East and West Germany. This iron curtain was called the Berlin Wall. This wall not only separated families and friends but it was the cause of East Germanys loss of freedom and democracy. The Berlin Wall was a symbol of communism and oppression, but the fall of it would lead to a new world of freedom and opportunities. The creation of the wall, the reasons on which it was built upon and the impact of the wall had on the world are all important factors to be explored. World War II, also known as the Second World War, was a War which involved almost every part of the World. It was a conflict between the Allies and the Axis powers. The Allies consisted of Great Britain, the Soviet Union, The United States and China while the Axis consisted of Germany, Japan and Italy. World War II ended in the mid 1940s after the surrender of the Axis powers. A conference was held in Potsdam, Germany to set up peace treaties. Also at this conference, the countries that fought with Hitler were punished as well as Germany itself. Germanys primary punishment was the reduction of the size of their nation and the division of German Territory between the Allied powers to ensure proper reconstruction of Germany into democratic power(history.com). Don’t waste time! Our writers will create an original "The Iron Curtain Of Berlin Wall" essay for you Create order The Soviet Union had other plans to punish Germany. They also starved and caused poverty in West Berlin in what is known as the German blockade to get the U.S and other western allies out of the city. The U.S. did not retaliate. Instead they airlifted supplies to West Berlin such food, fuel and other goods. Unable to push the allies out, dictator Joseph Stalin ended the blockade. In 1958, tensions were raised again. Many refugees were fleeing East Berlin to West Berlin due to the communist government they were experiencing. Most of these refugees were skilled workers. Summits, conferences and other negotiations were set up but refugees were still escaping. In just one day, August 12, 1961, about 2,400 people fled from East to West. So, that night Premier Khrushchev ordered the East German government to stop any one trying to leave. Two weeks later a makeshift barbed wire and concrete block wall was built by police workers, East German army and others. This became known as the Berlin Wall. It would have divided Germany for several years and be the result of a growing tension between two superpowers, the US and the USSR. Before the wall, it was possible to travel the East-West border. There were even train and subway lines to take. There were three checkpoints at the wall which each had East German soldiers to check you before allowing you to pass. It was rare that they would allow them to cross. Overtime, the wall was replaced by a tall, thick mass of concrete with an enormous pipe on top. It was nearly impossible to climb over. However, from 1961 to 1989, more than 5,000 East Germans managed to pass the border. The people were going through great measures to make it over the wall and challenged their intelligence to do so. One man threw a hammer and a line from the roof of a building, pulled a cable, and with his wife and son, slid down it in a homemade chair lift to safety on the other side. (Mirabile 11). The Eastern Germans who had been oppressing their people began to notice a decline in their economy as Eastern Berliners fled to the west. Walter Ulbricht stated that they needed to do something about it. The people had heard about the idea of a wall being put up. On the 15th of June 1961, Ulbricht spoke at an international press conference No one has the intention of creating a wall but obviously this was false considering on August 13, 1961 the wall was built. West berliners did not agree with the wall just as much as the people of East Berlin. They were led by their Mayor Willy Brandt who criticized the United States for not responding. When the leaders of East Berlin suggested their decision to close off East Berlin, the U.S. only saw the idea as a way of trying to stabilize the city. Both we and West Germans consider it to our long-range advantage that potential refugees remain [in] East Germany. But soon Americans discovered the severity of the wall and went from them being bystanders to activists. The wall was not only stopping refugees leaving East Berlin but was also preventing the economic links between East and West Berlin. Their disagreement led to the Cold War. All free men, wherever they may live, are citizens of Berlin, and, therefore, as a free man, I take pride in the words, Ich bin ein Berliner (Famous Quotes). The fall of the Berlin Wall was brought about by the ending of the Cold War. The Cold War began to end in the mid1980s following the Arms Race. The Soviet Union and the other communist powers were beginning to weaken and the new leaders were more reasonable and willing to make a deal. The democratic powers took advantage of their weakness to manipulate their leader Mr. Gorbachev to destroy the Berlin Wall and begin the reconstruction of Europe. Ronald Reagan stated Mr Gorbachev open this gate! Mr Gorbachev, tear down this wall! beginning a new Europe, uniting families, and promoting democracy. The fall of the Soviet Union is greatly due to President Reagan and his policy known as Reaganomics. Its domestic changes were an attempt to weaken the Soviets in the Arms Race. Reagans plan to win the cold war was to bankrupt the Soviets before they could defeat the United States. The policies ended the Cold War then making it possible to demand the freedom of the East Berliners. The Soviets were in a weak position having no choice but to submit to the Democratic Nations.

Ludwig Van Beethoven And His Influence On Classical Music

Ludwig van Beethoven is a revered figure in the history of classical music in today’s world. Born in Bonn, Germany, he underwent strict guidance from his father who aspired to mold him into the next generation â€Å"Mozart.† Sailing through the tides of social, political and cultural revolution, Beethoven became a renowned composer and rose in ranks in the history of classical music. Although succumbed to deafness in his later years, Beethoven had left behind a phenomenon legacy which took the stage of classical music. Moving on from the early 18th century, his works were venerated by many composers and musicians, and till date, his name still tops the lists in the field of classical composition. Not only expanding on his own classical style, Beethoven also highly influenced subsequent generations of classical music, such as the juxtaposition of chords and the expansion of orchestra size. Above all achievements, Beethoven had established such a classical music elitis m that he represents a firm benchmark for classical music. Composers and musicians idolized Beethoven, so much that their humble veneration made him seemed unsurpassable. That veneration had also transformed Beethoven into a â€Å"singularity† that is studied extensively and his works played repeatedly, creating a stationary progression. Consequently, this veneration might stifle the future generation by excluding them of their individuality. However, Beethoven might be at the â€Å"zenith† but his works only paved one ofShow MoreRelatedLudwig Van Beethoven, One of the Greatest Composers of the Roomantic Period1099 Words   |  4 PagesThe Life of Ludwig van Beethoven Multitudes of music books recount the life of Ludwig van Beethoven and his contributions to music. 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Throughout the course of history, there have been ar tist that have changed the face of music as we know it. Two important composers to the course of music’s history are Ludwig van Beethoven and Franz Liszt. While both composers certainly have similarities in their music, thereRead More Ludwig Van Beethoven Essay1285 Words   |  6 Pages German composer and pianist, Ludwig van Beethoven, was born December 1770 and spent most of his life in Vienna, Austria. His first teacher was his alcoholic father, who worked as a musician at the Court of Bonn. Teaching him day and night, Ludwig suffered from his fathers harsh and erratic behavior. For a time, he and his father played at the Church. As his fathers alcoholism increased, Ludwig became the main musician. Beethovens talents were discovered at an early age, and he was sentRead MoreBeethovens Life Outline1208 Words   |  5 Pages1. 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Ppi and the Big Mac Index Free Essays

Estimating the Purchasing Power Parity (PPP) of currencies using the Big Mac Indexâ„ ¢ Table of Contents 1. Introduction 2. Purchasing Power Parity and Theory of one Price 3. We will write a custom essay sample on Ppi and the Big Mac Index or any similar topic only for you Order Now Over/Under Valuation of currencies against the Dollar 5. Comparative analysis of the most overvalued to the most undervalued 6. Observation and Alternative indexes 7. Limitations 8. Appendix INTRODUCTION Purchasing power parity (PPP) is an important and critical topic in international economics. It arises when the purchasing power of an amount of money is the same in different countries. This is when prices of two different countries are converted to a common currency. The idea is based on the law of one price, where in the absence of official trade restrictions, similar goods will have the same price in different markets, with the prices being expressed in the same (common) currency. Deviations from parity infer differences in purchasing power of goods across countries, which means that for the purposes of many international comparisons, countries’ GDPs or other national income statistics need to be â€Å"PPP adjusted† and converted into common units. There can be a huge difference when adjusted by purchasing power and when converted via market exchange rates. For ex:- If calculated at nominal exchange rates, India has the tenth largest economy while adjusting by PPP, India has the fourth largest economy. Thus, to remove this discrepancy, a common currency of measurement is highly essential. The Big Mac Index is an example of a measure of law of one price. It refers to the prices of a Big Mac burger in McDonald’s restaurants in different countries. It helps in determining whether a currency is undervalued or overvalued and thus accordingly gives an idea about the direction in which currencies should move. The Big Mac was selected because it is available for a common purpose in many countries around the world as local McDonald’s franchisees have significant responsibility for converting input prices(at least in theory). The Big Mac Index is useful because it is based on a very well-known food item whose final price can be easily tracked in many countries. PPP and the Theory of One Price The One-Price Theory The theory of PPP and One price go hand in hand. It is imperative to understand the implication of â€Å"One Price† to understand the Purchase Power Parity as it is based on that. The Law of One Price proposes that if a gadget costs $2 in USA and the same gadget costs Rs 5 in India , then the exchange rate should be 2/5 = 0. 40 for the real prices to be same in both the countries. Let us denote it empirically as Price of a good in one country A be X and Price of the same good in some other country B is X* , then equalization of both the prices can be done using exchange rate denoted by the formula Exchange Rate = X/X* Suppose in the above example where the exchange rate is calculated to be 0. 4, increases to 0. 6, and then the same gadget would cost Rs 8. 33 in India. This would result in the inflow of gadgets to India from USA causing increase in the demand of dollars and increase in supply of Rupees. Law of One Price (LoOP) It states that identical goods should sell at same price in two different markets when there are no transportation costs and no differential taxes applied in two markets One Price Theory and PPP While this concept of one –price here in the example is being applied to one commodity, it can be applied universally to all other commodities in market as well. The Big Mac burger is one of the brightest examples of the application of One-Price to a commodity. It looks at the price of a big Mac burger across different countries. This way Purchase Power Parity applies not just to a single commodity but on general price level. This way we can universally derive a relation of One-Price theory and Purchase Power Parity. The Big Mac was created by Jim Delligatti in the year 1967 and introduced throughout the US in 1968. The Big Mac is now available in around 120 countries around the world and its composition is generally the same throughout – two all beef patties, special sauce, lettuce, cheese, pickles, onions on a sesame seed bun. Since beef is not consumed in India, a special Mac known as the â€Å"Maharaja Mac† can be found with chicken patties replacing beef patties. In Islamic countries the Big Mac is made with Halal beef and in Israel it is made with Kosher beef. The price of a Big Mac in US is calculated by the average of 4 cities – Atlanta, New York, Chicago and San Francisco. The price of Big Mac in Euro area is calculated by the weighted average of prices in Euro area. The Big Mac considered in India is the Maharaja Mac. Country| Big Mac Price| Implied PPP rate +| Today’s| Over(+) / Under(-) Valuation against the USD, % ++| | | | Exchange Rate| | in Local Currency| in US dollars| | 1 USD =| | US| $ 4. 07| 4. 07| —| 1| —| Argentina| Peso 20. 0| 4. 4153463| 4. 92| 4. 530| 8. 6175| Australia| A$ 4. 56| 4. 6373416| 1. 12| 0. 983| 13. 8996| Brazil| Real 9. 50| 5. 2511951| 2. 34| 1. 809| 29. 3452| Britain| ? 2. 39| 3. 7447139| 0. 59| 0. 638| -7. 5573| Canada| C$ 4. 73| 4. 6363004| 1. 16| 1. 020| 13. 7021| Chile| Peso 1850| 3. 6281104| 455| 509. 907| -10. 7681| China| Yuan 14. 7| 2. 3129209| 3. 6| 6. 356| -43. 3570| Colombia| Peso 8400| 4. 326| 2066| 1941. 748| 6. 3990| Czech Republic| Koruna 69. 3| 3. 6412205| 17. 1| 19. 32| -10. 1517| Denmark| DK 28. 5| 5. 1401734| 7. 01| 5. 545| 26. 4302| Egypt| Pound 14. 1| 2. 3477628| 3. 47| 6. 006| -42. 2217| Euro area| Euro 3. 44| 4. 6013727| 1. 18| 0. 748| 57. 8378| Hong Kong| HK$ 15. 1| 1. 9404672| 3. 71| 7. 782| -52. 3236| Hungary| Forint 760| 3. 3439474| 187| 227. 276| -17. 7213| India| Rupee 84. 0| 1. 6163756| 20. 7| 51. 968| -60. 1679| Indonesia| Rupiah 22534| 2. 501274| 5543| 9009. 009| -38. 4727| Israel| Shekel 15. 9| 4. 2277811| 3. 91| 3. 761| 3. 9662| Japan| ? 320| 4. 1212269| 78. 7| 77. 647| 1. 3564| Malaysia| Ringgit 7. 20| 2. 2981176| 1. 7| 3. 133| -43. 5046| Mexico| Peso 32. 0| 2. 3459637| 7. 87| 13. 640| -42. 3040| New Zealand| NZ$ 5. 10| 3. 9382574| 1. 25| 1. 295| -3. 4741| Norway| Kroner 45. 0| 7. 8321279| 11. 1| 5. 746| 93. 1925| Pakistan| Rupee 205| 2. 3019159| 50. 5| 89. 056| -43. 2943| Peru| New Sol 10| 3. 7022146| 2. 46| 2. 701| -8. 9255| Philippines| Peso 118| 2. 7064108| 29| 43. 600| -33. 4865| Poland| Zloty 8. 63| 2. 5572242| 2. 12| 3. 375| -37. 1806| Russia| Rouble 75. 0| 2. 3810975| 18. 5| 31. 498| -41. 2663| Saudi Arabia| Riyal 10. 0| 2. 6661761| 2. 46| 3. 751| -34. 4121| Singapore| S$ 4. 1| 3. 4060498| 1. 08| 1. 295| -16. 5865| South Africa| Rand 19. 45| 2. 3850647| 4. 78| 8. 155| -41. 3850| South Korea| Won 3700| 3. 2782| 910| 1128. 668| -19. 3740| Sweden| SKr 48. 4| 7. 1816695| 11. 9| 6. 739| 76. 5741| Switzerland| SFr 6. 5| 7. 036772| 1. 6| 0. 924| 73. 2128| Taiwan| NT$ 75. 0| 2. 4825847| 18. 5| 30. 210| -38. 7629| Thailand| Baht 70. 0| 2. 2628537| 17. 2| 30. 934| -44. 3985| Turkey| Lire 6. 5| 3. 5532705| 1. 6| 1. 829| -12. 5349| + The Purchasing Power Parity or the PPP rate is the price of Big Mac in local currency divided by the price in the US. Price of Big Mac (and corresponding implied PPP rates from The Economist and is the latest). ++ The Over/Under valuation against the dollar is calculated using Exchangerate’s latest rates ( i. e as of 09/12/2011): 100 x ( P P P – Exchange Rate) / Exchange Rate (Source http://www. exchangerate. com/) OBSERVATION The most overvalued of currencies is the European Nordic countries’ currencies and most undervalued is the Indian Rupee. At market exchange rates, the Burger is 60% cheaper in India than in US. In other words, the Indian rupee is 60% undervalued against the dollar. However it should be noted that cheap burgers in India don’t mean that the Indian rupee is highly undervalued. Average prices should be lower in poor countries than in rich ones because labor costs are lower. The chart in the Appendix A shows a strong positive relationship between the dollar price of a Big Mac and GDP per person. Purchasing Power Parity is actually an indicator where exchange rates should move in the long run. For estimating the current fair value of a currency, a best fit line is drawn between Big Mac prices and GDP per person. The price thus predicted after the best fit line is drawn is compared with the actual price and this provides a better estimation of the currency over and under valuation than the above index. The â€Å"beefed up† index shows that the Brazilian Real is the most overvalued in the world; the Euro is also slightly overvalued. However the two major developing countries – India and China appear to be almost equal to its fair values. ALTERNATIVE INDICES An index similar to the Big Mac index has also been developed by the financial company UBS as part of general compilation of differences in prices and incomes around the globe. The Economist  also comes out with variants of the same. For example in the month of January in 2004, it proposed a  Tall Latte index  by replacing the Big Mac with a Starbucks Tall Latte. Refer Appendix B for the same. Commonwealth Securities, an Australian bank’s subsidiary, proposed to create the iPod index by using the concepts behind the Big Mac index. The banks contention that since the Big Mac index can be distorted by taxes, transport costs, labour laws and trade barriers in each country and the iPod was made in a single country – China, it made more sense to use the iPod as a measuring index. Since the iPod was made in a single country, the price should be broadly be the same all over the world and if the price difference were substantial, customers would switch their purchases to other countries (thanks to internet). However it was found to be ineffective since freight charges vary from country to country and countries such as US may get volume discounts. Bloomberg LP also introduced an alternative index known as Billy index after the iconic Ikea’s bookshelf. The index was calculated after converting the bookshelf’s price to US dollars. LIMITATIONS aapendix a APPENDIX B APPENDIX C (Exchange Rates as Of 9th December 2011) | | Country| Currency| ISO| 12-08-2011| 12-09-2011| % Change| | | ARGENTINA| Peso| ARS| 4. 52995| 4. 529656| -0. 01%|   | | | AUSTRALIA| Dollar| AUD| 0. 975877| 0. 983322| 0. 76%| |   | | AUSTRIA| Euro| EUR| 0. 74732| 0. 747603| 0. 04%|   | | | BELGIUM| Euro| EUR| 0. 74732| 0. 747603| 0. 04%| | | BRAZIL| Real| BRL| 1. 804477| 1. 809112| 0. 26%|   | | CANADA| Dollar| CAD| 1. 014437| 1. 02021| 0. 57%| | | | CHILE| Peso| CLP| 508. 4706| 509. 9073| 0. 28%|   | | | CHINA| Yuan| CNY| 6. 362878| 6. 3556| -0. 11%| | | CZECH REP. | Koruna| CZK| 18. 90629| 19. 3208| 0. 67%|   | | DENMARK| Krone| DKK| 5. 542461| 5. 54456| 0. 04%| | | | EUROPEAN UNION| Euro| EUR| 0. 74732| 0. 747603| 0. 04%|   | | | FINLAND| Euro| EUR| 0. 74732| 0. 747603| 0. 04%| | | FRANCE| Euro| EUR| 0. 74732| 0. 747603| 0. 04%|   | | | GERMANY| Euro| EUR| 0. 74732| 0. 747603| 0. 04%| | | | | GREECE| Euro| EUR| 0. 74732| 0. 747603| 0. 04%|   | | HONG KONG| Dollar| HKD| 7. 776135| 7. 781631| 0. 07%| |   | HUNGARY| Forint| HUF| 227. 0945| 227. 2763| 0. 08%|   | | | ICELAND| Krona| ISK| 119. 1911| 118. 9654| -0. 19%| | | | INDIA| Rupee| INR| 51. 73987| 51. 96812| 0. 44%|   | | INTNL MON. FUND| SDR| XDR| 0. 642256| 0. 642147| -0. 02%| |   | | IRELAND| Euro| EUR| 0. 74732| 0. 747603| 0. 04%|   | | | ISRAEL| Sheqel| ILS| 3. 775473| 3. 760838| -0. 39%| |   | ITALY| Euro| EUR| 0. 74732| 0. 747603| 0. 04%|   | | JAPAN| Yen| JPY| 77. 60051| 77. 64678| 0. 06%| | | | KOREA (SOUTH)| Won| KRW| 1132. 612| 1146. 365| 1. 21%| | | KUWAIT| Dinar| KWD| 0. 277164| 0. 277164| 0. 00%| -| | | MEXICO| Peso| MXN| 13. 62357| 13. 64045| 0. 12%|   | | | NETHERLANDS| Euro| EUR| 0. 74732| 0. 747603| 0. 04%| | | | NEW ZEALAND| Dollar| NZD| 1. 28856| 1. 294989| 0. 50%|   | | | NORWAY| Krone| NOK| 5. 70238| 5. 745565| -0. 43%| | | | PAKISTAN| Rupee| PKR| 89. 01636| 89. 05625| 0. 04%|   | | PERU| Sol| PEN| 2. 701086| 2. 701086| 0. 00%| -| | | PHILIPPINES| Peso| PHP| 43. 29727| 43. 60018| 0. 70%|   | | | POLAND| Zloty| PLN| 3. 360573| 3. 374753| 0. 42%| | | | PORTUGAL| Euro| EUR| 0. 74732| 0. 747603| 0. 04%|   | | ROMANIA| Leu| RON| 3. 23797| 3. 23797| 0. 00%| -| | | RUSSIA| Ruble| RUB| 31. 43216| 31. 49808| 0. 21%|   | | | SAUDI ARABIA| Riyal| SAR| 3. 750569| 3. 75069| 0. 00%| | | | SINGAPORE| Dollar| SGD| 1. 291813| 1. 294755| 0. 23%|   | | SLOVAKIA| Euro| EUR| 0. 74732| 0. 747603| 0. 4%| | | | SOUTH AFRICA| Rand| ZAR| 8. 204971| 8. 154915| -0. 61%|   | | | SPAIN| Euro| EUR| 0. 74732| 0. 747603| 0. 04%| | | SWEDEN| Krona| SEK| 6. 771076| 6. 73938| -0. 47%|   | | | SWITZERLAND| Franc| CHF| 0. 925818| 0. 923719| -0. 23%| | | | TAIWAN| Dollar| TWD| 30. 16208| 30. 21045| 0. 16%|   | | THAILAND| Baht| THB| 30. 77703| 30. 93439| 0. 51%| |   | | U. A. E. | Dirham| AED| 3. 673236| 3. 673236| 0. 00%| -| | | UKRAINE| Hryvnia| UAH| 8. 000472| 7. 998369| -0. 03%| |   | UNITED KINGDOM| Pound| GBP| 0. 637984| 0. 638233| 0. 04%|   | | | UNITED STATES| Dollar| USD| 1| 1| 0. 00%| -| How to cite Ppi and the Big Mac Index, Papers

Australian Natural Proteins

Question: Discuss about theAustralian Natural Proteins. Answer: Introduction Australian Natural Proteins (AYB) is a company down under focused on the animal husbandry segment. The prime activity of this company used to be sheep and crop production. However, these activities seem to have been discontinued over the past few years and in the Year ended 30 June 2016 and Year ended 30 June 2015, the peak revenue of the company was $2.5k. Now the company is trying to venture into a new activity in the dairy industry and is looking to undertake a project in the Murray River region of Australia in dairy farming. The milk generated is expected to be sold in domestic and international markets. The strategy for entering into this sector seems to be through the acquisition of dairy farms and for auctioning this inorganic strategy of acquitting 5 dairy farms, it has appointed the lead manager for managing its fund raising and issued a prospectus. Of the 5 farms, 3 are in Finley of South New Wales and the other 2 are in Murray River basin. The Farm 1 has an estimated produ ction of 3.7 mn liters of milk and can be sold to generate revenue of$2.1 mn translating to an income per liter of 54 cents. The average milk output per cow in this farm is expected to be 12,000 liters per annum. The farm is 210 hectares (or 519 acres) with 411 milking cows, 189 R2 and 175 H2 Reifers. The Farm 2 has an estimated production of 3.9 mn liters of milk and can be sold to generate revenue of$2.1 mn translating to an income per liter of 54 cents. The average milk output per cow in this farm is expected to be 8,390 liters per annum. The farm is 220 hectares (or 544 acres) with 461 milking cows, 200 R2 and 75 H2 Reifers. The Farm 3 has an estimated production of 7.4 mn liters of milk and can be sold to generate revenue of$3.8 mn translating to an income per liter of 51 cents. The average milk output per cow in this farm is expected to be 8,173 liters per annum. The farm is 398 hectares (or 984 acres) with 980 milking cows, 140 R1 and 15 bulls. The Farm 4 has an estimated pro duction of 5.8 mn liters of milk and can be sold to generate revenue of$3.2 mn translating to an income per liter of 55 cents. The average milk output per cow in this farm is expected to be 7,647 liters per annum. The farm is 518 hectares (or 1,280 acres) with 850 milking cows, 320 R2 and 220 R2 Heifers. The Farm 5 has an estimated production of 3.7 mn liters of milk and can be sold to generate revenue of $ 2.1 mn translating to an income per liter of 58 cents. The average milk output per cow in this farm is expected to be 7,646 liters per annum. The farm is 388 hectares (or 959 acres) with 700 milking cows, 200 R2 Heifers. Overall, all the 5 farms will have an aggregate estimated production of 24.4 mn liters of milk and can be sold to generate revenue of$13.2 mn translating to an average income per liter of 584cents. The average milk output per cow in this farm is expected to be 8,863 liters per annum. In all the company will have 1,734 hectares (around 4,286 acres) with 3.4k adult milking cows, 900 R2 Heifers, 535 R1 Heifers. (Reuters, 2016) (Asx.com.au, 2011) The company was listed on the Australian Stock Exchange with outstanding shares of 3.15 mn. However, the trading has been suspended for some reason for the past few months. The last traded price was$0.29 which translates to a market cap of$8-9 mn. The company has secured agreements to buy the first farm of GRS Foods and is under negotiation to secure long term contracts of acquisition for the remaining as well. In line with this strategy, the company has appointed the lead manager. (Anon, 2016) Statement of Financial Position The items in the Statement of Financial Position analyzed are a) Total Current assets, b) Total non current assets , Total Current Liabilities, Total Stock Holder' equity. Total Current assets of the company for year ended 30 June 2016 is $ 535, 916. In comparison to the previous financial year ended 30 June 2015, the Current Assets have decreased from $1, 045, 766 to $ 535, 916. This represents a decrease of 49%. Current Assets in year ended 30 June 2016 comprises of cash cash equivalents of $ 535, 916 which is 100% of the Current Assets. For the previous year, mix of Current Assets was 17% in cash cash equivalents ($ 175, 341), loans 83% ($868, 259) and other current assets comprised of less than 1% ($2, 166). The company seems to be liquidating its current assets and converting it to cash. Hence all other Current Assets for year ended 30 June 2016 was probably the liquidation of the Current Assets in year ended 30 June 2015 and conversion to cash. This is because the company does not have any operations and have generated sales of only $ 2, 825 in year ended 30 June 2016 and $68 for year ended 30 June 2015 Total non current assets for year ended 30 June 2016 of $ 99, 428 comprising primarily of Property, Plant Equipment ($ 29, 756) and investments ($69, 672) in the mix of 30% and 70% respectively represented an increase of 1.22 x over the previous year ended 30 June 2015. In year ended 30 June 2015, non Current Assets were primarily represented by Property, Plant Equipment of $44, 676 (nearly 100%). Property, Plant Equipment has decreased by 33% for year ended 30 June 2016 compared to year ended 30 June 2015. This could be due to the depreciation charge. The company seems to be parking its current assets liquidated into cash and putting into investments due to the stall in operations Total Current Liabilities droProperty, Plant Equipmentd by 36% for year ended 30 June 2016 compared to the previous year ended 30 June 2015 from $814, 048 to $ 519, 511 respectively. This was mainly on account of 64% decrease in loans borrowings which represented 89% of the mix of Current Liabilities for the year ended 30 June 2015. Property, Plant Equipment decreased from $ 726, 468 to $ 263, 792. In year ended 30 June 2016, the Loans Borrowings comprised of 51% of the Current Liabilities. 49% of Current Liabilities at $255, 719 was represented by trade payables. Total Stock Holder' equity is $ 115, 833 in year ended 30 June 2016 compared to $ 276, 493 for year ended 30 June 2015. This represents a decrease of 58% over year ended 30 June 2015. The company has an accumulated loss of $ (19, 180, 961) compared to $ (17, 624, 768) for year ended 30 June 2015. This represents a 9% increase. The company has been accumulating losses due to stalled operations and spending costs. Hence the accumulated loss has increased by $2 mn for year ended 30 June 2016 over year ended 30 June 2015. The company has also been pumping equity to remain afloat over the period of time. In year ended 30 June 2016, the equity holders have pumped $1.2 mn for the year ended 30 June 2016 Stockholder Equity Total Stock Holder' equity is $ 115, 833 in year ended 30 June 2016 compared to $ 276, 493 for year ended 30 June 2015. This represents a decrease of 58% over year ended 30 June 2015. The company has an accumulated loss of $ (19, 180, 961) compared to $ (17, 624, 768) for year ended 30 June 2015. This represents a 9% increase. The company has been accumulating losses due to stalled operations and spending costs. Hence the accumulated loss has increased by $2 mn for year ended 30 June 2016 over year ended 30 June 2015. The company has also been pumping equity to remain afloat over the period of time. In year ended 30 June 2016, the equity holders have pumped $1, 395, 533 mn for the year ended 30 June 2016. However, given the situation, there is an increasing chance that the company cannot be classified as a Going Concern as per the Accounting Standards Board (Bloomberg.com, 2016) Statement of Profit and Loss The items in the Statement of Profit and Loss analyzed are Total (operating) revenues, Cost of Goods Sold, Total expenses (before income taxes), Any non-operating (or extraordinary) gains and losses, Earnings per share (EPS). Total (operating) revenues The company does not have any operations. Hence the operating revenues are close to negligible. For year ended 30 June 2016, the company had revenue of $ 2, 825 compared to that of $ 68 for year ended 30 June 2015. Cost of Goods Sold (if relevant) There is neither cost of manufacturing operations nor cost of goods sold since the operations have been discontinued. Total expenses (before income taxes) Inspite of no operations, the company still incurs fixed costs with respect to employees, contractor pay and other expenses. In addition there are financing expenses especially on working capitals spend. Total Operating expenses on Continuing activities of the company for YE2016 is $ 690, 759. In comparison to the previous financial year YE2015, the Operating expenses on Continuing activities have increased from $ 328, 597 to $ 690, 759. This represents an increase 1.1x. Operating expenses on Continuing activities in YE2106 comprises of other expenses of $ 325, 075 which is 47% of the Operating expenses on Continuing activities. 45% of the mix comprises of expenses for Consultant Contractor expenses. For the previous year ended 30 June 2015, 40% of the mix comprises of expenses for Consultant Contractor expenses mix of Operating expenses on Continuing activities while other expenses constituted another 40%. The employee benefit expenses halved from $40, 484 to $20, 883 from year ended 30 June 2015 to year ended 30 June 2016 while the financing expenses became 2x from $5, 593 in year ended 30 June 2015 to $17, 433 in year ended 30 June 2016. Financing expenses roughly constitutes 2-3% of the Operating expenses on Continuing activities. It is obvious that employees have been pruned from year ended 30 June 2015 to year ended 30 June 2016 and hence the expenses corresponding to them have reduced by 48%. This is in line with the fact that operations have been curbed and sales are on the diminishing side. This is because the company does not have any operations and have generated sales of only $ 2, 825 in year ended 30 June 2016 and $68 for year ended 30 June 2015 Any non-operating (or extraordinary) gains and losses There is a Loan write off by $(1, 668, 052) in YE 16. The revenue from discontinued operations has posted a loss of $858, 259 in year ended 30 June 2016. In year ended 30 June 2015, the loan writes off was $2, 526, 311. Due to the operations being discontinued progressively loan which has been part of the Current Assets has been becoming non performing and the company has been taking continuous write offs in the past 2 years of year ended 30 June 2015 and year ended 30 June 2016. In all, in the past 2 years, there has been a write off of $3.4 mn. This is also evident in the analysis of Current Assets, where loans of $ 868, 259 in year ended 30 June 2016 have become nil in year ended 30 June 2015. Earnings per common share (EPS) The EPS has marginally been better from -1.89 in Year ended 30 June 2015 to -0.49 in Year ended 30 June 2016. Owing to the loss of $2,860,866 in Year ended 30 June 2015 reducing to $1,556,193. The biggest contributor for the loss in Year ended 30 June 2015 was the loan write off of$2, 526, 311 which was 86% of the loss after tax for Year ended 30 June 2015 Statement of Cash Flow net cash inflow (outflow) from operating activities The receipts from customers, payments to suppliers / employees / others, interest received constitutes the CFO. The total CFO for Year ended 30 June 2015 was $462,064 compared to $502,710 for Year ended 30 June 2016. This also represents a 109% increase in the payments to suppliers / employees / others. Given the suppressed level of operations that company has received only $2,500 of its receivables from customers. net cash inflow (outflow) from investing activities The company has invested $69,572 in Year ended 30 June 2016 for CFI. In the previous year Year ended 30 June 2015, the company seems to have sold $27,300 of Property, Plant Equipment. This points to a scenario where the company is trying to change its business line by selling existing Property, Plant Equipment and buying new Property, Plant Equipment. This is in line with their announcement where they have appointed a lead manager investment banker for their fund raising activity. net cash inflow (outflow) from financing activities The company has been funding its new business model from issuing convertible instruments where convertible loans are converted into equity. This amount raised is $1,082,334in Year ended 30 June 2016 compared to $626,577 in Year ended 30 June 2015. The company has repaid $137,200for loans and $12,277 for hire purchase obligations for Year ended 30 June 2016. In the previous year of Year ended 30 June 2015, $32674 is repaid for hire purchase obligations. net increase (decrease) in cash during the year Overall, there has been an increase in CCE by $360,575 for Year ended 30 June 2016 compared to $159,139 for Year ended 30 June 2015. Thus the CCE has more than doubled. Primarily, the increase has been on account of infusion of cash from the convertible loans into equity of $1,082,334 in Year ended 30 June 2016. Thus the CCE at the end of the year in Year ended 30 June 2016 was $535,916 which represents a 4x of the CCE of $175,341 for Year ended 30 June 2015. Conclusion Thus it is clear that the company is in a phase where it is changing its business model from being a crop production company to a dairy farming company. The company is choosing an inorganic route to develop scale in this business by acquiring 5 farms for which definitive agreements seem to have been under negotiation. As a result, currently it has pumped equity in the company and is also raising money from the market by floating a prospectus. Currently, therefore, its cash flows are under strain. In undoing its earlier business, it has liquidated its working capital and sold its Property, Plant Equipment. It has used the cash available through this in addition to the equity infusion to buy Property, Plant Equipment and create a war chest for acquisitions of the 5 dairy farms. The amount to be raised from the market will add to the war chest. The company was listed in the Australian stock exchange earlier and it seems due to the change in the business plan, the company has got itsel f delisted. It is looking for a fresh listing by raising money from the market. (Australiannaturalproteins.com.au, 2016) Recommendation The company has very little track record of the dairy business. Moreover, the risk for the investors is enhanced since this is not a steady operating model with years of history. Moreover the company is substantially using investor money to commence this business which means that the skin of the company promoters in this game is limited who have invested from the returns they derived in the earlier business. The earlier business also does not seem to show any traction and year on year losses have been accumulated. Hence it is recommended that investors do not invest in this company until their operations are stabilised and the proof of the pudding is evident. References and Bibliography References Anon, (2016). [online] Available at: https://www.intelligentinvestor.com.au Home Companies AYB [Accessed 21 Sep. 2016]. Asx.com.au. (2011).Announcements Search Results. [online] Available at: https://www.asx.com.au/asx/statistics/announcements.do?by=asxCodeasxCode=aybtimeframe=Dperiod=M6 [Accessed 20 Sep. 2016]. Australian Natural Proteins. (2016).AProperty, Plant Equipmentndix 4E - Preliminary Final Report, ASX Listing rule 4.2A. Australiannaturalproteins.com.au. (2016).Home | Australian Natural Proteins. [online] Available at: https://www.australiannaturalproteins.com.au/ [Accessed 20 Sep. 2016]. Bloomberg.com. (2016).AYB:ASE Stock Quote - Australian Natural Proteins Ltd. [online] Available at: https://www.bloomberg.com/quote/AYB:AU [Accessed 21 Sep. 2016]. Reuters. (2016).${Instrument_CompanyName} ${Instrument_Ric} Analysts | Reuters.com. [online] Available at: https://www.reuters.com/finance/stocks/analyst?symbol=AYB.AX [Accessed 20 Sep. 2016].