Technology Park Malaysia BM003-3-1-BEN
UCIF1110-Accounting and Finance
STUDENT NAME &TP NO – Al Tooqi Haitham Mohamed TP027371 LECTURERS NAME – Noor Hasliaziziyati Binti Suli
HAND OUT DATE: 6th JUNE 2012
HAND IN DATE: 20TH JUNE 2012
Table of Contents
1) ANALYSIS AND INTERPRETATION OF ACCOUNTING STATEMENTS OF ASTINO BERHAD7
2) DISCUSS IN DETAILS THE ECONOMIC VALUE ADDED (EVA®)10
2.1) EVA’s Advantages and Disadvantages10
3) Reasons Why Business Valuations Are Performed15
4) PREPARE A PARTNERSHIP AGREEMENT15
Astino Berhad was incorporated in 2000 as a holding company of the Astino Group comprising Ooi Joo Kee & Brothers Sdn. Bhd.Under the brand name of Astino®, the company has established itself as one of the leading industrial enterprise in the field of building products with three major manufacturing plants located at strategic locations in Peninsular Malaysia. The Group has weathered the economy storm successfully and continues to record impressive profit achievement and capital growth. For financial year 2005, the Group's turnover was RM190 million. The principal activities of ASTINO are those of investment holding and provision of management services. The principal activities of the subsidiaries are manufacture and sale of metal roof sheets and other building related products, manufacture and sale of insect screen, trading of PVC panels, doors and frames. Astino Bhd was incorporated as a public limited company on 9 August 2000 and was listed on the Second Board of Bursa Malaysia on 18 July 2003.
1) ANALYSIS AND INTERPRETATION OF ACCOUNTING STATEMENTS OF ASTINO BERHAD
I)LIQUIDITY| FORMULERS| 2011| 2010| Current ratio| current assets/current liabilities)| =222,796,993/109,518,622 =2.034:1| =117,250,579/93,592,211=1.893:1| Quick ratio| current assets-inventory-prepayment/current liabilities| =222,796,993-122,808,146-6,191,388/109,518,622=0.856:1| 177,250,579-101,561,733-5,014,826/93,592,211=0.755:1|
These ratios indicate the ease of turning assets into cash. They include the Current Ratio, Quick Ratio, and Working Capital. Current ratio: is mainly used to give an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). 2011 have the higher current ratio than 2010 which means that 2011 is more capable of paying its obligations and have the assurance that the current liabilities can be paid. On the other hand 2010 have the ability to pay its financial debts even though the ratio is lower compared to 2011 The acid test ratio: is an indicator that determines whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory. The acid-test ratio is far more strenuous than the working capital ratio, primarily because the working capital ratio allows for the inclusion of inventory assets. 2011 have the higher acid test ratio than 2010 means that 2011 can easily paid its current liabilities from its liquidity resources and may have faster inventory turnover and cash conversion cycles. But 2010 also has to cover its financial obligation. Having a high acid test ratio generally indicates that a company solid top-line growth, and easily cover its financial obligations.
2)ASSET MANAGEMENT| Formulas| 2011| 2010| account receivable turnover| Net revenue/Average account receivable| =419,176,685/ 65,739,425=6.376 times| =334,834,685/67,168,262.5=4.985 times|...