i) Long-term loan: There is no indication of why this loan was raised and how it was used to finance the business. Further details are needed of interest rate(s), security given, and repayment dates.

ii) Trading activity: The level of sales has fluctuated in quite a strange way, requiring further investigation and explanation. Factors to consider would include pricing policies, product mix, market share, and any unique occurrence which would affect sales.

iii) Further analysis: It would be useful to break down some of the information in the financial statements, perhaps into a management accounting format. Examples would include sales by segment, market, or geographical area; cost of sales split into raw materials, labour, and overheads; inventory broken down into raw materials, work in progress, and finished goods; and expenses analysed between administrative costs, sales, and distribution costs.

iv) Accounting policies: Accounting policies may have a significant effect on certain items. In particular, it would be useful to know what the accounting policies are in relation to intangible assets (and what these assets consist of) and whether there has been any change in accounting policies.

v) Dividend policy: Konka Ltd has maintained the dividend payments to shareholders during the three years. Presumably, Konka Ltd would have been able to reduce the amount of long-term debt taken on if it had retained part or all of the dividend during this period. It would be interesting to examine the share price movement during the period and calculate the dividend cover.