Calculate term of leverage liquidity and fluidity, Financial Accounting


as at 31 December 2011



Note         2011                         2010       

RM'000                     RM'000


Property, plant and equipment                                             3             889,741                   897,505

Goodwill                                                                                                4             61,024                     61,024

Investments in subsidiaries                                                                  5             -                              -

Investment in an associate                                                   6             3,210                       3,189

Deferred tax assets                                                                7             9,482                       10,441

Trade and other receivables                                                8              23,802                     22,653


Total non-current assets                                                                     987,259                   994,812


Trade and other receivables                                                8              444,854                   354,303

Inventories                                                                             9              517,573                   380,539

Current tax assets                                                                                                 176                          344

Cash and cash equivalents                                                 10            52,461                     48,683


Total current assets                                                             1,015,064                783,869


Total assets                                                                           2,002,323 1,778,681




Share capital                                                                                          234,500                   234,500

Reserves                                                                                                10,560                     37,016

Retained earnings                                                                                                395,800                   341,820

Total equity attributable to owners of the Company      11            640,860                   613,336




Loans and borrowings                                                         12            337,711                   326,298

Employee benefits                                                                 13            42,316                     42,537

Deferred tax liabilities                                                           7              66,696                     75,595


Total non-current liabilities                                                                446,723                   444,430


Loans and borrowings                                                         12            4,223                       87,256

Trade and other payables                                                    14            878,321                   623,269

Taxation                                                                                                                 32,196                     10,390


Total current liabilities                                                                         914,740                   720,915


Total liabilities                                                                      1,361,463                1,165,345


Total equity and liabilities                                                   2,002,323 1,778,681


for the year ended 31 December 2011



Note         2011                         2010

RM'000                     RM'000


Revenue                                                                                                 4,700,994                4,026,319

Cost of goods sold                                                                                               (3,158,877)             (2,682,027)


Gross profit                                                                                           1,542,117                1,344,292


Other income                                                                                         1,595       736

Distribution and selling expenses                                                      (828,947)                (749,794)

Administrative expenses                                                                      (128,711)                (95,576)

Other expenses                                                                                     (6,626)    (12,167)


Results from operating activities                                       15            579,428   487,491


Finance income                                                                                    458          35

Finance costs                                                                                        (21,398) (21,669)

Net finance (costs)/income                                                                 (20,940) (21,634)


Share of profit/(loss) of an equity accounted associate,

net of tax                                                                                                321          (113)


Profit before tax                                                                                    558,809   465,744


Income tax expense                                                              17            (102,508)                (74,346)


Profit for the year                                                                                 456,301   391,398


Other comprehensive (expense)/income, net of tax


Cash flow hedge                                                                                   (26,456) 4,125

Definedbenefi t plan actuarial (losses)/gains                                     (3,671)    2,384


Other comprehensive (expense)/income

for the year, net of tax                                                         18            (30,127) 6,509


Total comprehensive income for the year                                        426,174   397,907


Basic and diluted earnings per ordinary share (sen)      19            195          167



for the year ended 31 December 2011

                                                                                                                Note         2011                         2010

RM'000                     RM'000

Net cash from operating activities                                                                     581,844                   508,926

Cash flows from investing activities


Acquisition of property, plant and equipment (ii)                                                              (93,015) (143,915)

Finance income received                                                                                     458                          35

Dividend received from an associate                                                                                 300                          165

Proceeds from disposal of property,

plant and equipment                                                                                             1,574                       3,327


Net cash (used in)/from investing activities                                                     (90,683)  (140,388)

Cash flows from fi nancing activities


Dividends paid to owners of the Company                                       20            (398,650)                (351,750)

Finance costs paid                                                                                               (21,398) (21,669)

Payment of finance lease liabilities                                                                     (3,204)    (3,453)

Proceeds from borrowings                                                                                  165,000   58,000

Repayment of borrowings                                                                                    (202,761)                (47,500)


Net cash used in financing activities                                                                (461,013)                (366,372)


Net increase in cash and cash equivalents                                                       30,148     2,166

Cash and cash equivalents at 1 January (i)                                                       22,313     20,147

Cash and cash equivalents at 31 December (i)                                                52,461     22,313


Answers all the questions below .

You are required to determine :

Question 1

What is the financial position of the company in term of leverage, liquidity and fluidity? Were the position better in 2011 compared to 2010 ?

Possible ratios :

-          Leverage ratio

-          Current Ratio

-          Liquid ratio

-          Cash ratio

Question 2

How is the performances of the company in managing each important type of assets and the overall assetsvalue ? Were the performances better in 2011 than 2010 ?

Possible ratios :

-          Account receivable turnover

-          Inventory turnover

-          Current assets turnover

-          Assets turnover

Question 3

How is the profitability performance of the company in term of profit margin and the return on investment ?

Possible ratios :

-          Gross profit margin

-          Net profit margin

-          Return on Investment

-          Return on Equity

-          Return on Assets

-          Payback period

Question 4

Profit for the year for 2011 was much better than 2010. What were the factors that contributed to the better performances in 2011 ?

Question 5

The potential investor who want to invest in the company is concern about the insolvency risk of the company. He requested you to calculate the Altman's ratios of the company. Is the company at risk of being insolvent  in the near future?

Question 6

Based on the above analysis and the evaluation of the three set of financial statements of the company for the two years, what is your conclusion on the financial position and the performances of the company during the last two years ?

Posted Date: 2/14/2013 2:11:23 AM | Location : United States

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