STATEMENTS OF FINANCIAL POSITION:
as at 31 December 2011
Group
Note 2011 2010
RM'000 RM'000
Assets
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
Equity
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
Liabilities
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
STATEMENTS OF COMPREHENSIVE INCOME
for the year ended 31 December 2011
Group
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
STATEMENTS OF CASH FLOWS
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 ?