The Annual Report Requirement Needed In Malaysia Accounting Essay

Published:

The accounting board of Malaysia is Malaysian Accounting Standard Board. Based on SME Corporation Malaysia, MASB is a statutory body launched by the Financial Reporting Act 1997 with the sole authority to set the legally obligatory financial reporting standards in Malaysia. The standard that issued by MASB is Malaysian Financial Reporting Standards (MFRS). This framework should be applied by all the companies other than Private companies for the financial year begin.

The United States follows Financial Accounting Standard Board (FASB). Financial Accounting Standards Board is to be designed to develop the Generally Accepted Accounting Principles (GAAP) within the United States. Those standards are generally accepted by the Securities and Exchange Commission (SEC) of United States that has the statutory authority to established the publish listed companies' financial accounting and reporting as stated under Securities Exchange Act of 1934.

Management Discussion & Analysis (MD&A)

There are not compulsory required to include this sections in the accounting and financial statements or reporting of the public listed companies in Malaysia. However, there is a compulsory requirements for public listed companies to publish the accounting and financial statements or reports as stated in the FASB.

Lady using a tablet
Lady using a tablet

Professional

Essay Writers

Lady Using Tablet

Get your grade
or your money back

using our Essay Writing Service!

Essay Writing Service

Revaluation to the properties of companies

In Malaysia, the revaluation to the companies' assets is allowed and stated in the published materials of the companies. However, the annually financial statements of United States' companies are not allowed to make revaluation to the assets as there is only using historical cost or book value as the normal accounting basis that stated in the FASB.

Inventory Accounting Methods

There are a differences in the inventory methods that applied by the public companies in reproducing its accounting and financial statements to determine the value of inventory in the financial statements. In general, there are three common methods to value the inventory. There are FIFO (first in, first out), LIFO (last in, first out), and average cost.

This three inventory methods are most frequently used by the U.S companies to value the inventory. However, the LIFO are not encouraged been used by the Malaysia companies.

Forms that needed to be filled by public listed companies :

Malaysia

United States

Form 11

Notice of Resolution

Form 10-K for annual reports

Form 24

Return of Allotment of Shares

Form 25

Statement Containing Particulars of Shares Allotted Otherwise Than For Cash

Form 27

Notice of Redemption of Redeemable Preference Shares

Form 28

Notice of Increase in Share Capital

Form 44

Notice of Situation of Registered Office and Office Hours and Particulars of Changes

Form 49

Return Giving Particulars in Register of Directors, Managers and Secretaries and Changes of Particulars

Liabilities

Accounting to the standards stated in the MASB, the liabilities that reporting in the periodical report should be separate into the different categories. However, the U.S companies only needed to report one amount in the balance sheet as required in the GAAP.

The Regulation of the Companies

There are few legal regulation of the companies that needed to be followed by the public listed companies in Malaysia are Companies Act 1965, Securities Commission 1995, Financial Reporting Act 1997 and Income Tax Act 1967, Bursa Malaysia Berhad and Central Bank of Malaysia in order to establish the accounting and financial statements or reports.

On the other hands, United State listed companies follows GAAP have to prepare their companies' financial statement. The regulation of the companies need to be followed by U.S listed companies is Securities Exchange Commission (SEC).

2.0 Financial Statements

2.1 Financial Statements of Fajarbaru Builder Group Bhd.

FAJARBARU BUILDER GROUP BHD

CONSOLIDATED STATEMENTS OF EARNINGS

For the Years Ended June 30, 2012, 2011, 2010, 2009, and 2008

 

2012

2011

2010

2009

2008

 

RM

RM

RM

RM

RM

Revenue

140,675,092

181,047,003

165,943,999

184,633,817

87,607,979

Other income

3,905,962

3,325,675

4,900,270

1,778,980

9,775,308

Project expenses

-159,019,683

-154,739,748

-129,446,533

-160,684,971

-77,660,547

Staff costs

-8,685,577

-6,995,726

-5,802,638

-4,737,815

-4,318,779

Depreciation

-1,114,945

-800,519

-801,135

-602,022

-591,372

Other expenses

-3,062,014

Lady using a tablet
Lady using a tablet

Comprehensive

Writing Services

Lady Using Tablet

Plagiarism-free
Always on Time

Marked to Standard

Order Now

-3,008,541

-1,688,347

-2,459,689

-1,015,149

Profit/Loss from operations

-27,301,165

18,828,144

33,105,616

17,928,300

13,797,440

Finance costs

-962,461

-116,359

-61,754

-173,401

-146,535

Profit/Loss before taxation

-28,263,626

18,711,785

33,043,862

17,754,899

13,650,905

Taxation

6,984,470

-5,007,961

-8,427,168

-3,397,211

1,030,267

Profit/Loss for the year

-21,279,156

13,703,824

24,616,694

14,357,688

14,681,172

 

 

Profit attributable to:

 

Owners of the parent

-21,279,156

13,603,960

24,683,626

14,390,500

14,252,635

Non-controlling interest

-

99,864

-66,932

-32,812

428,537

 

-21,279,156

13,703,824

24,616,694

14,357,688

14,681,172

Earnings per share attributable to equity holders of the Company (sen):

 

Basic, for (loss)/profit for the year

-12.15

8.19

16.18

12.05

16.76

Diluted, for (loss)/profit for the year

-11.42

7.57

14.68

8.86

16.76

FAJARBARU BUILDER GROUP BHD

CONSOLIDATED BALANCE SHEETS

30 June, 2012, 2011, 2010, 2009, and 2008

 

2012

2011

2010

2009

2008

RM

RM

RM

RM

RM

Assets

 

Non-current assets

 

 

Property, plant and equipment

12,966,944

9,959,595

5,784,355

5,088,701

6,515,658

 

Investment properties

1,331,405

1,335,734

1,205,633

-

-

 

Land held for property development

122,982,715

58,187,844

45,262,348

45,262,348

45,262,348

 

Trade receivables/Retention sums

87,150

4,837,008

6,414,676

5,667,299

1,075,000

 

Intangible assets

208,202

208,202

208,202

208,202

208,202

 

Deferred tax assets

-

-

-

-

700,000

 

Total non-current assets

137,576,416

74,528,383

58,875,214

56,226,550

53,761,208

Current assets

 

 

Trade and other receivables

33,843,215

48,773,529

22,688,877

30,766,746

40,452,754

 

Other current assets

1,528,006

1,321,655

-

-

-

 

Tax recoverable

1,741,067

150,728

81,086

13,945

31,201

 

Cash and cash equivalents

74,212,285

94,882,763

124,535,455

88,753,795

33,518,742

 

Total current assets 

111,324,573

145,128,675

147,305,418

119,534,486

74,002,697

 Total assets

248,900,989

219,657,058

206,180,632

175,761,036

127,763,905

Equity and liabilities

 

Equity attributable to owners of the parent

 

 

Share capital

94,474,003

86,345,538

83,105,338

68,698,463

45,098,775

 

Share premium

3,628,459

3,313,468

10,279,378

6,512,547

6,898,973

 

Treasury shares

-1,116,581

-5,894,477

-10,395,891

-5,738,240

-

 

Warrant reserve

1,196,354

1,250,801

2,149,909

2,149,909

-

 

Other reserve

-85,947

-140,394

-2,149,909

-2,149,909

-

 

Employee Share Option Reserve

97,222

240,120

112,800

-

-

 

Retained profits

37,436,813

58,475,130

50,798,575

32,093,005

17,646,647

 

 

135,630,323

143,590,186

133,900,200

101,565,775

69,644,395

 

Non-controlling interest

-

-

16,397,450

16,464,382

16,497,194

Total equity

135,630,323

143,590,186

150,297,650

118,030,157

86,141,589

 

 

 

Non-current liabilities

 

 

Trade payables

5,419,464

4,743,334

-

-

-

 

Other payables

-

-

-

80,388

166,365

 

Hire purchase payables

-

-

-

-

1,583

 

Deferred tax liabilities

630,349

8,085,304

7,655,415

7,655,415

7,545,881

 

Loans and borrowings

45,782,222

-

-

-

-

 

Total non-current liabilities

51,832,035

12,828,638

7,655,415

7,735,803

7,713,829

Current liabilities

 

 

Trade and other payables

49,177,284

38,368,554

30,725,775

48,204,489

33,852,544

 

Other current liabilities

10,000,000

24,382,129

13,315,736

-

-

 

Bank borrowings

-

-

-

-

46,592

 

Tax payable

163,569

487,551

4,186,056

1,790,587

9,351

 

Loans and borrowings

2,097,778

-

-

-

-

 

Total current liabilities 

Lady using a tablet
Lady using a tablet

This Essay is

a Student's Work

Lady Using Tablet

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Examples of our work

61,438,631

63,238,234

48,227,567

49,995,076

33,908,487

Total liabilities

113,270,666

76,066,872

55,882,982

57,730,879

41,622,316

Total equity and liabilities

248,900,989

219,657,058

206,180,632

175,761,036

127,763,905

FAJARBARU BUILDER GROUP BHD

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Years Ended June 30, 2012, 2011, 2010, 2009, and 2008

 

2012

2011

2010

2009

2008

 

 

RM

RM

RM

RM

RM

Operating activities

 

 

Profit/Loss before taxation

-28,263,626

18,711,785

33,043,862

17,754,899

13,650,905

 

Adjustments for:

 

 

Depreciation on property, plant and equipment

1,110,616

796,192

796,808

602,022

591,372

 

Depreciation on investment properties

4,329

4,327

4,327

-

-

 

Interest expense

-

-

-

12,435

47,098

 

Grant of equity-settled share options to employee

101,603

321,167

136,960

-

-

 

Gain on disposal of property, plant and equipment

-11,949

-9,999

-1,528

69,400

-

 

Impairment loss on land held for development

-

612,348

-

1,216,535

-

 

Impairment loss on receivables

-

-

71,594

-

-

 

Interest income

-3,531,624

-3,095,176

-2,190,742

-1,778,980

-930,276

 

Finance costs

962,461

116,359

61,754

-

-

 

Accrual for bonus

-

-

-

737,500

415,787

 

Write off of property, plant and equipment

-

5,242

-

-

-

 

Operating (loss)/profit before working capital changes

-29,628,190

17,462,245

31,923,035

18,613,811

13,774,886

 

Changes in working capital:

 

 

Trade and other receivables

21,138,689

-25,864,976

6,717,938

5,093,709

-9,002,711

 

Trade and other payables

11,468,214

6,356,379

-5,608,613

13,528,468

-2,243,496

 

Other current assets

-206,351

-1,321,655

-

-

-

 

Other current liabilities

-14,382,129

18,453,023

1,365,247

-

-

 

Cash (used in)/generated from operations

-11,609,767

15,085,016

34,397,607

37,235,988

2,528,679

 

Interest paid

-

-

-

-12,435

-47,098

 

Taxes paid

-2,384,806

-8,346,219

-6,098,840

-789,185

-

 

Taxes refunded

-

-

-

-

415,289

 

Net cash (used in)/generated from operating activities

-13,994,573

6,738,797

28,298,767

36,434,368

2,896,870

Investing activities

 

 

Acquisition of non-controlling interest

-

16,048,407

-

-

-

 

Additions to investment properties -

-

-134,428

669,000

-

-

 

Interest received

2,073,107

2,855,527

2,190,742

1,778,980

930,276

 

Net cash outflow on acquisition of subsidiary

-

-13,532,844

-

-

-

 

Proceeds from disposal of property, plant and equipment

11,950

10,000

4,025

50,000

-

 

Profit guarantee received

-

5,000,000

2,794,635

3,726,180

-

 

Purchase of property, plant and equipment

-2,745,649

-4,976,675

-1,494,959

-511,000

-1,278,446

 

Purchase of land held for property development

-66,167,188

-

-

-

-

 

Net cash used in investing activities

-66,827,780

-26,826,827

2,825,443

5,044,160

-348,170

 

 

Financing activities

 

 

Finance cost paid

-945,815

-35,000

-61,754

-

-

 

Payment of dividend

-

-10,179,578

-8,789,171

-3,670,322

-910,172

 

Payment of hire purchase payables

-

-

-

-48,175

-54,911

 

Proceeds from issuance of shares, net of transaction cost

544,465

1,754,200

23,038,560

23,213,262

5,450,789

 

Proceeds from private placements

13,396,395

-

-

-

-

 

Acquisition of treasury shares

-874,370

-4,175,584

-9,770,185

-5,738,240

-

 

Proceeds from exercise of employee share options

151,200

3,071,300

240,000

-

-

 

Drawdown of borrowings

47,880,000

-

-

-

-

 

Net cash generated from/(used in) financing activities

60,151,875

-9,564,662

4,657,450

13,756,525

4,485,706

 

 

Net increase/decrease in cash and cash equivalents

-20,670,478

-29,652,692

35,781,660

55,235,053

7,034,406

Cash and cash equivalents at beginning of year

94,882,763

124,535,455

88,753,795

33,518,742

26,484,336

Cash and cash equivalents at end of year

74,212,285

94,882,763

124,535,455

88,753,795

33,518,742

2.2 Financial Statements of Hock Seng Lee Bhd

HOCK SENG LEE BHD

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Years Ended June 30, 2012, 2011, 2010, 2009, and 2008

 

2012

2011

2010

2009

2008

 

RM'000

RM'000

RM'000

RM'000

RM'000

Revenue

603,267

581,515

488,276

375,021

309,069

Cost of sales

-473,488

-455,388

-379,449

-287,576

-241,200

Gross profit

129,779

126,127

108,827

87,445

67,869

Other income

687

1,065

1,638

823

625

Administrative expenses

-14,729

-14,498

-14,175

-14,187

-12,742

Results from operating activities

115,737

112,694

96,290

74,081

55,752

Finance income

5,995

4,372

2,515

1,488

738

Finance expense

-583

-468

-386

-

-32

Net finance income

5,412

3,904

2,129

1,488

706

Profit before tax

121,149

116,598

98,419

75,569

56,458

Income tax expense

-30,455

-29,330

-24,980

-19,246

-14,619

Profit/Total comprehensive income for the period

90,694

87,268

73,439

56,323

41,839

 

 

Profit attributable to:

 

Owners of the Company

90,692

87,265

74,435

56,324

41,839

Non-controlling interests

2

3

4

-1

-

Profit for the period

90,694

87,268

73,439

56,323

41,839

Profit/Total comprehensive income attributable to:

 

Owners of the Company

90,692

87,265

74,435

56,324

41,839

Non-controlling interests

2

3

4

-1

-

Profit/Total comprehensive income for the period

90,694

87,268

73,439

56,323

41,839

 

 

Earnings per share from continuing operations

 

Basic earnings per ordinary share (sen)

16.37

15.81

13.40

10.25

7.56

Diluted earnings per ordinary share (sen)

16.37

15.81

13.40

10.25

7.56

HOCK SENG LEE BHD

CONSOLIDATED BALANCE SHEETS

30 December, 2012, 2011, 2010, 2009, and 2008

 

2012

2011

2010

2009

2008

 

RM'000

RM'000

RM'000

RM'000

RM'000

Assets

 

 

 

 

 

Non-current assets

 

 

Property, plant and equipment

113,906

112,647

96,175

71,131

49,335

Investment properties

4,565

-

-

-

-

Land held for property development

154,738

94,014

87,344

66,721

72,153

Total non-current assets

273,209

206,661

183,519

137,852

121,488

Current assets

 

 

Cash and cash equivalents

198,769

183,721

89,702

76,360

56,942

Trade and other receivables

229682

241669

268709

226,935

196,308

Inventories

17,034

23,246

13,077

10,982

6,036

Property development costs

38,313

27,845

27,013

25,626

20,834

Total current assets

483,798

476,481

398,501

339,903

280,120

Total assets

757,007

683,142

582,020

477,755

401,608

 

 

 

Equity

 

 

Share capital

116,535

116,535

116,535

116,535

116,535

Capital redemption reserves

2,165

2,165

2,165

2,165

2,165

Retained earnings

386,901

322,222

247,369

193,967

144,237

Treasury shares

-25,672

-31,672

-21,029

-20,706

-20,296

Total equity attributable to owners of the Company

479,929

409,250

345,040

291,961

242,641

Non-controlling interest

-

206

203

199

-

Total equity

479,929

409,456

345,243

292,160

242,641

 

 

 

Liabilitoes

 

Non-current liabilities

 

 

Deferred tax liabilities

15,517

15,930

14,067

10,368

6,531

Total non-current liabilities

15,517

15,930

14,067

10,368

6,531

Current liabilities

 

 

Trade and other payables

253,606

249,713

217,297

170,609

148,864

Current tax liabilities

7,955

8,043

5,413

4,618

3,572

Total current liabilities

261,561

257,756

222,710

175,227

152,436

Total liabilities

277,078

273,686

236,777

185,595

158,967

Total equity and liabilities

757,007

683,142

582,020

477,755

401,608

HOCK SENG LEE BHD

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2012, 2011, 2010, 2009, and 2008

 

2012

2011

2010

2009

2008

RM'000

RM'000

RM'000

RM'000

RM'000

Cash flows from operating activities

 

 

 

 

 

Profit before taxation from continuing operations

121,149

116,598

98,419

75,569

56,458

Adjustments for:-

 

Non-cash items

10,287

7,844

7,109

5,554

4,505

Non-operating items

-5,688

-3,838

-2,410

-2,035

-803

Operating profit before changes in working capital

125,748

120,604

103,118

79,088

60,160

Changes in working capital

 

Change in Inventories

8,088

-8,712

3,925

-4,718

-3,052

Change in property development costs

-3,364

-2,320

1,161

1,418

-175

Change in receivables, prepayment and other financial assets

-21,316

19,213

-81,022

-31,768

-58,183

Change in payables

3,417

32,171

46,996

22,882

64,851

Cash generated from operations

112,573

160,956

74,178

66,902

63,601

Overdraft interest capitalised

-

-32

Income taxes paid

-30,956

-24,836

-20,118

-14,363

-13,717

Net cash from operating activities

81,617

136,120

54,060

52,539

49,852

Cash flows from investing activities

 

Acquisition of property, plant & equipment

-11,975

-17,360

-22,991

-29,118

-18,213

Proceeds from disposal of property, plant & equipment

695

1,609

1,712

2,315

426

Acquisition of investment property

-4,579

-

-

-

-

Land held for property development

-35,800

-6,670

-1,715

-1,005

-587

Interest received

5,312

3,374

1,529

1,491

655

Acquisition of shares by a subsidiary from non-controlling interest

-200

-

-

-

-

Issue of shares by a subsidiary to minority interests

-

-

-

200

-

Net cash used in investing activities

-46,547

-19,047

-21,465

-26,117

-17,719

 

 

Cash flows from financing activities

 

Purchase of treasury shares

-4,131

-10,643

-8,571

-410

-3,189

Dividend paid to owners of the Company

-15,890

-12,412

-10,682

-6,594

-13,103

Net cash used in financing activities

-20,021

-23,055

-19,253

-7,004

-16,292

Net increase in cash and cash equivalents

15,049

94,018

13,342

19,418

15,841

Cash and cash equivalents, beginning of year

183,270

89,252

75,910

56,492

40,651

Cash and cash equivalents, end of year

198,219

183,270

89,252

75,910

56,492

2.3 Financial Statements of TSR Capital Bhd

TSR CAPITAL BHD

CONSOLIDATED STATEMENTS OF EARNINGS

For the Years Ended December 31, 2012, 2011, 2010, 2009, and 2008

 

2012

2011

2010

2009

2008

 

RM'000

RM'000

RM'000

RM'000

RM'000

 

 

Revenue

108,421

118,597

184,052

173,566

280,344

Cost of sales

-94,837

-142,805

-168,361

-155,400

-285,838

Gross profit

13,584

24,208

15,691

18,166

-5,494

 

 

Other income

4,604

1,906

2,082

1,981

3,163

Administration expenses

-12,957

-10,068

-14,534

-13,812

-11,074

Finance costs

-1,638

-133

-506

-868

-462

Profit/(Loss) before taxation

3593

32503

2733

5467

-13,867

Income tax expenses

-1155

-95

-1311

-558

50

Profit for the period

2,438

-32,598

1,422

4,909

-13,817

 

 

Attributable to:

 

Equity holders of the Company

2,570

-32,587

1,409

4,771

-14,270

Non-controlling interests

-132

-11

13

138

453

Profit for the period

2,438

-32,598

1,422

4,909

-13,817

 

 

Earnings per share (sen)

 

Basic

2.3

-28.8

1.2

4.2

-12.9

Diluted

2

-25.2

1.1

3.7

N/A

TSR CAPITAL BHD

CONSOLIDATED BALANCE SHEETS

As at December 31, 2012, 2011, 2010, 2009, and 2008

 

2012

2011

2010

2009

2008

 

RM'000

RM'000

RM'000

RM'000

RM'000

Non-Current Assets

 

Property, plant and equipment

8,093

8,435

33,240

10,273

9,567

Investment Properties

91,198

93,728

-

-

-

Prepaid lease payments

-

-

-

-

334

Other assets

-

-

-

-

5,301

Deferred tax assets

5,42

542

411

376

162

Property development expenditure

-

-

35,977

7,920

716

Land held for future development

30,338

26,084

4,613

18,907

18,907

Trade receivables

821

128

1,041

-

-

Total non-current assets

130,992

128,917

75,282

37,476

34987

 

 

Current assets

 

Amount due from contract customers

14,613

21,088

56,126

50,320

40,585

Inventories

4,985

3,959

5,906

9,212

6,077

Property development costs

1,538

7,152

-

-

-

Trade receivables

22,900

25,616

29,204

54,995

43,864

Accrued billings

10,696

2,789

-

-

-

Other receivables

24,140

9,617

15,446

19,474

16,703

Tax refundable

1,850

1,753

1,269

1,572

2,482

Fixed deposits with licensed banks

18,449

5,575

17,830

47,961

24,816

Cash and bank balances

13,225

14,981

39,529

16,309

43,835

Total current assets

112,396

92,530

165,310

199,843

178,362

Total assets

243388

221447

240,592

237,319

213349

 

 

Equity

 

Share capital

113,300

113,300

113,300

113,300

113,300

Share premium

26,653

26,653

26,653

26,653

26,653

Retained earnings

-

-

14,061

11,867

9,645

Accumulated loss

-15,834

-18,404

-

-

-

Equity attributable to Equity holders of the Company

124,119

121,549

154,014

151,820

149,598

Non-controlling interests

-142

-10

511

792

789

Total equity

123,977

121,539

154,525

152,612

150,387

 

 

Non-current liabilities

 

Long-term bank borrowings

30,764

12,889

1,149

643

482

Trade payables

10,624

19,036

17,086

-

-

Total non-current liabilities

41,388

31,925

18,235

643

482

 

 

Current liabilities

 

Short-term bank borrowings

5,755

987

981

895

983

Amount due to contract customers

1,819

5,071

-

-

-

Trade payables

46,949

45,543

31,920

44,857

47,276

Other payables

22,609

16,378

34,923

38,310

13,607

Current tax payables

891

4

8

2

614

Total current liabilities

78,023

67,983

67,832

84,064

62,480

Total liabilities

119,411

99,908

86,067

84,707

62,962

TOTAL EQUITY AND LIABILITIES

243388

221,447

240,592

237,319

213,349

TSR CAPITAL BHD

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Year Ended December 31, 2012, 2011, 2010, 2009, and 2008

 

2012

2011

2010

2009

2008

 

RM'000

RM'000

RM'000

RM'000

RM'000

CASH FLOWS FROM OPERATING ACTIVITIES

 

Profit/ Loss before taxation

3,593

-32,503

2,663

5,467

-13,867

 

Adjustments for:

Non-cash & non-operating items

1,253

2,509

1,833

1,028

11,387

Operating profit before working capital changes

4,846

-29,994

4,496

6,495

-2,480

Net change in current assets

-12,488

49,562

20,009

-16,213

29,758

Net change in current liabilities

4,161

-4,244

2,547

10,051

-9,683

Cash generated from operations

-3,481

15,324

27,052

333

17,595

Non-operating items

-2,004

-845

-1,090

-565

-1,685

Net cash used in operating activities

-5,485

14,479

2,5962

-232

15,910

 

CASH FLOWS FROM INVESTING ACTIVITIES

Interest received

664

447

922

1,141

776

Purchase of property, plant and equipment

-903

-217

-378

-1,601

-1,851

Proceeds from disposal of property, plant and equipment

470

483

173

184

311

Proceeds from disposal of investment properties

2,100

-

-

-

-

Purchase of investment properties

-3,459

-41,243

-30,582

-

-

Purchase of land held for future development

-4,254

-21,471

-

-

-

Acquisition of shares in existing subsidiaries from non-controlling interests

-

-388

-225

-

-

Additions of fixed deposits pledged to financial institutions

-1,012

-6

-5

-

-

Net cash generated from investing activities

-6,394

-62,395

-30,095

-276

-764

 

CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of hire purchase obligations

-1,012

-1,176

-1,084

-1,189

-1,194

Procceds from issuance of shares

10,300

Drawdown of term loan

22,997

12,072

-

-

-

Dividend paid

-

-

-1,699

-2,684

-3,014

Net cash used in financing activities

21,985

10,896

-2,783

-3,873

6,092

Net in cash and cash equivalents

10,106

-37,020

-6,916

-4,381

21,238

Cash and cash equivalents, beginning of year

20,334

57,354

64,270

68,651

47,413

Cash and cash equivalents, end of year

30,440

20,334

57,354

64,270

68,651

3.0 Companies Background, Activities, and MD&A information

3.1 Fajarbaru Builder Group Bhd.

Fajarbaru Builder Group Bhd is a public listed company in Bursa Malaysia under construction sectors. Currently, this company not only operating its core business, construction, it also investing in some subsidiaries form the various sectors such as manufacturing ready-mix concrete, trading construction materials, and property development.

The origin of the company is starting their business on 6 May 1976 as a private limited company, Fajarbaru Builder Sdn Bhd under the Companies Act 1965. Currently, the Fajarbaru Builder Sdn Bhd is also one of its' core subsidiary.

The core operating activities of the origin companies are civil works, building construction and turnkey contractor and other construction works on contract basis. This company is also a Class A contractor that registered under Pusat Khidmat Kontraktor (PKK), Class G7 contractor that registered under Construction Industry Development Board (CIDB), and as a turnkey contractor that registered with Petroliam Nasional Berhad. Both of this types of license enable the company to tender any size of the public or private projects.

Currently, the Group is a one stop construction agency that capable to undertake a wide range of constructions projects. This capacity of the Group enable the efficiency and effective of the business activities such as cost and time saving because of internalization. Besides that, qualitative and quantitative managements of the Group can be controlled easily within the process of construction activities only within the Group.

The results of operating of Fajarbaru Builder Group Bhd showed an uncertainty trends in the net earnings for the period of 2008 to 2012. That is a decreasing trends for the period 2008 to 2009. This might to the financial crisis occurs during that period of time. Then, the net earnings for the period of 2009 to 2010 showed an increasing trends. This is because of the injections of the government to the properties and public infrastructure development projects during the periods of time that also give significant effects to the business of the construction firms. The decreasing trends occurred for the net earnings of 2010 to 2012. During the recent few years, the government budget to develop many projects on public infrastructure. This types of projects normally are long term projects, so the return to the firms during the starting period of time might not be so favorable for this moments. The chairmen of the company also predicted that the return for the coming year 2013 will be favorable as stated in Annual Report 2012.

Based on the consolidated statements of cash flows, there are all negative net cash flows for year 2012 from three sources (operating, financing and investing). This showed that the companies currently wish to make long-term investments. This can seem from the purchase of land the held for properties developments. Besides that, the companies has a good liquidity managements because according to the amount stated in the balance sheet, the cash and cash equivalent of the company still in a healthy level, that is able to pay-off the current liabilities for that financial year.

3.2 Hock Seng Lee Bhd

Hock Seng Lee Berhad (HSL) is a well-developed construction company based in the Sarawak that fully integrated marine engineering, civil engineering and building construction activities or projects of Sarawak. This company also capable to dig up the complex infrastructure works such as bridge, road, flyover construction, flood mitigation, rural water supply and marine structures. Since HSL starting their business, many areas of Sarawak have been transformed into modern infrastructures such as modern housing, resorts, commercial/shopping centers, industrial estates, international seaports, airports and highways.

The origins of HSL is operated by three eldest brothers of the Yii family (Yii Chi Hau, Yu Chee Lieng and Yu Jih Tung) in the mid-1960s. The principal operating activities are sand dredging and land fill operation. After that, the company was named, Hock Seng Lee, after the first timber dredging vessel to operate the partnership company. The company named Hock Seng Lee is because the sounds like "good business" in the local Hokkien dialect.

Then, the company was incorporated in January 1979 with the company named Hock Seng Lee Development Company Sendirian Berhad. Over the past thirty few years after incorporated, its core business activities has been diversified into a wide range of civil engineering and construction works such as prestigious road works and new township developments projects. On 10 June 1996, HSL was listed on the Main Market of Bursa Malaysia under the construction sectors. Since HSL listed in Bursa Malaysia, it is one of the company that frequently winning the shareholder value awards.

Nowadays, HSL Berhad has over 700 full time employees in the company and thirty per cent of them hold tertiary or technical qualifications. The headquarters of HSL is located in Kuching and can be classified as electronic office environment that attached with an advanced computer network, fully computerized accounting system and a wide range of customized computer software to support the tendering activities, job costing and project management.

According to the consolidated statements of earnings, the results of operating of HSL Bhd showed an increasing trends in the net earnings for the period of 2008 to 2012. That is give a good sign of investments to the investors that the company has a stability growth in the business. The chairmen of the company and also the investment companies such as OSK also predicted that the return for the coming year 2013 will be favorable. This is common predictions as to HSL Bhd because this companies is one of the companies that frequently winning the award of shareholder value of Bursa Malaysia.

Based on the consolidated statements of cash flows, there are all positive net cash flows for the year of 2008 to 2012. This showed that the company has the capacity to generate positive net cash flows each year. However, the net cash used in investing and financing activities are all showed negative value for the period of 5 years. This types of negative cash flows might not be giving negative signal to investors because as we know that most of the cash outflows in this two categories are used in investing long-term investments such as treasury shares, lands held for properties development. So, the potential investors might perceived this type of cash outflows as the investment that give favorable return in the future. Besides that, the companies has a healthy liquidity levels because the assets and liabilities of the firms are mostly in the range of optimization.

3.3 TSR Capital Bhd

TSR Capital Berhad is a public listed construction company that listed in the Main Market of Bursa Malaysia. The core business of TSR are construction foundation engineering, soil improvement, construction and civil engineering works. Besides that, TSR also involved in the manufacturing, investment, development, project management, and properties management activities. The headquarter of the company is located in Kuala Lumpur, Malaysia.

Based on the information regarding to the discussion of the meeting that provided in the annual report of the companies, I know that the companies from the construction faced increasing uncertainties in business during the starting period of my study, 2008 due to the spill-over effect of the US sub-prime crisis that occurred during that period of time. However, the company still remain optimistic mind set to the economic condition of market Malaysia because of the stronger and the healthy financial landscape based on the solid economic fundamentals. Therefore the company belief that the economics of Malaysia is decupled from the financial turmoil of U.S.

According to the consolidated statements of earnings, the results of operating of HSL Bhd showed uncertainty trends in the net earnings for the period of 2008 to 2012. There are an increasing for the period of 2008 to 2009, a decreasing for the period of 2009 to 2011 and an increasing trends for the periods of 2011 to 2012. The uncertainty trends from 2008 to 2010 might due to the economy downturn for the period of time. However, the chairman of the company predicted that the company can gain favorable return in the coming year that generated from the current long-term investment.

Based on the consolidated statements of cash flows, there is a positive net cash flows generated in 2012 since continued three financial years generated negative cash and cash equivalents from 2009 to 2011. This positive net cash flows might motivate the potential to invest to the company because according to the financials theory, there are a time considered to generate the return form an investments. So, the company might start to receive some periodical return that generates from the previous investments.

The liquidity policies that applied in this company is more to borrowing to generates the business activities. This can showed by the various types of payables that stated in the balance sheets under the section of current liabilities.

4.0 Valuation and Discussion

4.1 Fajarbaru Builder Group Bhd

FAJARBARU BUILDER GROUP

Common-Size Income Statements (Percent)

 

2012

2011

2010

2009

2008

Revenue

100.00%

100.00%

100.00%

100.00%

100.00%

Other income

2.777%

1.837%

2.953%

0.964%

11.158%

Project expenses

-113.040%

-85.469%

-78.006%

-87.029%

-88.646%

Staff costs

-6.174%

-3.864%

-3.497%

-2.566%

-4.930%

Depreciation

-0.793%

-0.442%

-0.483%

-0.336%

-0.675%

Other expenses

-2.177%

-1.662%

-1.017%

-1.332%

-1.159%

Profit/Loss from operations

-19.407%

10.400%

19.950%

9.710%

15.749%

Finance costs

-0.684%

-0.064%

-0.037%

-0.094%

-0.167%

Profit/Loss before taxation

-20.091%

10.335%

19.913%

9.616%

15.582%

Taxation

4.965%

-2.766%

-5.078%

-1.840%

1.176%

Net Earnings

-15.126%

7.569%

14.834%

7.776%

16.758%

FAJARBARU BUILDER GROUP BHD

COMMON-SIZE BALANCE SHEETS (PERCENT)

 

2012

2011

2010

2009

2008

Assets

 

Non-current assets

 

Property, plant and equipment

5.210%

4.534%

2.805%

2.895%

5.100%

Investment properties

0.535%

0.608%

0.585%

-

-

Land held for property development

49.410%

26.490%

21.953%

25.752%

35.427%

Trade receivables/Retention sums

0.035%

2.202%

3.111%

3.224%

0.841%

Intangible assets

0.084%

0.095%

0.101%

0.118%

0.163%

Deferred tax assets

-

-

-

-

0.548%

Total non-current assets

55.274%

33.929%

28.555%

31.990%

42.079%

 

 

Current assets

 

Trade and other receivables

13.597%

22.204%

11.004%

17.505%

31.662%

Other current assets

0.614%

0.602%

-

-

-

Tax recoverable

0.700%

0.069%

0.039%

0.008%

0.024%

Cash and cash equivalents

29.816%

43.196%

60.401%

50.497%

26.235%

  Total current assets

44.726%

66.071%

71.445%

68.010%

57.921%

Total assets

100.000%

100.000%

100.000%

100.000%

100.000%

 

 

Equity and liabilities

 

Equity attributable to owners of the parent

 

Share capital

37.956%

39.309%

40.307%

39.086%

35.299%

Share premium

1.458%

1.508%

4.986%

3.705%

5.400%

Treasury shares

-0.449%

-2.683%

-5.042%

-3.265%

-

Warrant reserve

0.481%

0.569%

1.043%

1.223%

-

Other reserve

-0.035%

-0.064%

-1.043%

-1.223%

-

Employee Share Option Reserve

0.039%

0.109%

0.055%

-

-

Retained profits

15.041%

26.621%

24.638%

18.259%

13.812%

 

54.492%

65.370%

64.943%

57.786%

54.510%

Non-controlling interest

-

-

7.953%

9.367%

12.912%

Total equity

54.492%

65.370%

72.896%

67.154%

67.422%

 

 

Non-current liabilities

 

Trade payables

2.177%

2.159%

-

-

-

Other payables

-

-

-

0.046%

0.130%

Hire purchase payables

-

-

-

-

0.001%

Deferred tax liabilities

0.253%

3.681%

3.713%

4.356%

5.906%

Loans and borrowings

18.394%

-

-

-

-

  Total non-current liabilities

20.824%

5.840%

3.713%

4.401%

6.038%

Current liabilities

 

Trade and other payables

19.758%

17.467%

14.902%

27.426%

26.496%

Other current liabilities

4.018%

11.100%

6.458%

-

-

Bank borrowings

-

-

-

-

0.036%

Tax payable

0.066%

0.222%

2.030%

1.019%

0.007%

Loans and borrowings

0.843%

-

-

-

-

Total current liabilities

24.684%

28.790%

23.391%

28.445%

26.540%

Total liabilities

45.508%

34.630%

27.104%

32.846%

32.578%

Total Equity and Liabilities

100.000%

100.000%

100.000%

100.000%

100.000%

FAJARBARU BUILDER GROUP BHD

CONSOLIDATED STATEMENTS OF CASH FLOWS (PERCENT)

For the Year Ended December 31, 2012, 2011, 2010, 2009, and 2008

 

2012

2011

2010

2009

2008

Operating activities

 

Profit/Loss before taxation

201.961%

277.672%

116.768%

48.731%

471.229%

Adjustments for:

 

Depreciation on property, plant and equipment (Note 12)

-7.936%

11.815%

2.816%

1.652%

20.414%

Depreciation on investment properties (Note 13)

-0.031%

0.064%

0.015%

-

-

Interest expense

-

-

-

0.034%

1.626%

Grant of equity-settled share options to employee

-0.726%

4.766%

0.484%

-

-

Gain on disposal of property, plant and equipment

0.085%

-0.148%

-0.005%

0.190%

-

Impairment loss on land held for development

-

9.087%

-

3.339%

-

Impairment loss on receivables

-

-

0.253%

0.000%

0.000%

Interest income

25.236%

-45.931%

-7.741%

-4.883%

-32.113%

Finance costs

-6.877%

1.727%

0.218%

-

-

Accrual for bonus

-

-

-

2.024%

14.353%

Write off of property, plant and equipment

-

0.078%

-

-

-

Operating (loss)/profit before working capital changes (balance carried forward)

211.712%

259.130%

112.807%

51.089%

475.509%

Changes in working capital:

 

Trade and other receivables

-151.049%

-383.822%

23.739%

13.981%

-310.774%

Trade and other payables

-81.948%

94.325%

-19.819%

37.131%

-77.446%

Other current assets

1.475%

-19.613%

-

-

-

Other current liabilities

102.769%

273.833%

4.824%

-

-

 

 

Cash (used in)/generated from operations

82.959%

223.853%

121.552%

102.200%

87.290%

Interest paid

-

-

-

-0.034%

-1.626%

Taxes paid

17.041%

-123.853%

-21.552%

-2.166%

-

Taxes refunded

-

-

-

-

14.336%

Net cash (used in)/generated from operating activities

100.000%

100.000%

100.000%

100.000%

100.000%

 

 

Investing activities

 

Acquisition of non-controlling interest

-

-59.822%

-

-

-

Additions to investment properties -

-

0.501%

23.678%

-

-

Interest received

-3.102%

-10.644%

77.536%

35.268%

-267.190%

Net cash outflow on acquisition of subsidiary

-

50.445%

-

-

-

Proceeds from disposal of property, plant and equipment

-0.018%

-0.037%

0.142%

0.991%

-

Profit guarantee received

-

-18.638%

98.910%

73.871%

-

Purchase of property, plant and equipment

4.109%

18.551%

-52.911%

-10.131%

367.190%

Purchase of land held for property development

99.012%

-

-

-

-

Net cash used in investing activities

100.000%

100.000%

100.000%

100.000%

100.000%

 

 

Financing activities

 

Finance cost paid

-1.572%

0.366%

-1.326%

-

-

Payment of dividend

-

106.429%

-188.712%

-26.681%

-20.290%

Payment of hire purchase payables

-

-

-

-0.350%

-1.224%

Proceeds from issuance of shares, net of transaction cost

0.905%

-18.340%

494.660%

168.744%

121.515%

Proceeds from private placements

22.271%

-

-

-

-

Acquisition of treasury shares

-1.454%

43.656%

-209.775%

-41.713%

-

Proceeds from exercise of employee share options

0.251%

-32.111%

5.153%

-

-

Drawdown of borrowings

79.599%

-

-

-

-

Net cash generated from/(used in) financing activities

100.000%

100.000%

100.000%

100.000%

100.000%

Net (decrease)/increase in cash and cash equivalents

-27.853%

-31.252%

28.732%

62.234%

20.986%

Cash and cash equivalents at beginning of year

127.853%

131.252%

71.268%

37.766%

79.014%

Cash and cash equivalents at end of year

100.000%

100.000%

100.000%

100.000%

100.000%

4.2 Hock Seng Lee Bhd

HOCK SENG LEE BHD

COMMON-SIZE INCOME STATEMENTS (PERCENT)

 

2012

2011

2010

2009

2008

Revenue

100.000%

100.000%

100.000%

100.000%

100.000%

Cost of sales

78.487%

78.311%

77.712%

76.683%

78.041%

Gross profit

21.513%

21.689%

22.288%

23.317%

21.959%

Other income

0.114%

0.183%

0.335%

0.219%

0.202%

Administrative expenses

-2.442%

-2.493%

-2.903%

-3.783%

-4.123%

Results from operating activities

19.185%

19.379%

19.720%

19.754%

18.039%

Finance income

0.994%

0.752%

0.515%

0.397%

0.239%

Finance expense

-0.097%

-0.080%

-0.079%

0.000%

-0.010%

Net finance income

0.897%

0.671%

0.436%

0.397%

0.228%

Profit before tax

20.082%

20.051%

20.156%

20.151%

18.267%

Income tax expense

-5.048%

-5.044%

-5.116%

-5.132%

-4.730%

Net Earnings

15.034%

15.007%

15.040%

15.019%

13.537%

Other comprehensive income, net of tax

0.000%

0.000%

0.000%

0.000%

0.000%

Profit/Total comprehensive income for the period

15.034%

15.007%

15.040%

15.019%

13.537%

HOCK SENG LEE BHD

Common-Size Balance Sheets (Percent)

 

2012

2011

2010

2009

2008

Assets

 

Non-current assets

 

Property, plant and equipment

15.047%

16.490%

16.524%

14.889%

12.284%

Investment properties

0.603%

0.000%

0.000%

0.000%

0.000%

Land held for property development

20.441%

13.762%

15.007%

13.966%

17.966%

Total non-current assets

36.091%

30.252%

31.531%

28.854%

30.250%

Current assets

 

Cash and cash equivalents

26.257%

26.894%

15.412%

15.983%

14.179%

Trade and other receivables

30.341%

35.376%

46.168%

47.500%

48.881%

Inventories

2.250%

3.403%

2.247%

2.299%

1.503%

Property development costs

5.061%

4.076%

4.641%

5.364%

5.188%

Total current assets

63.909%

69.748%

68.469%

71.146%

69.750%

Total assets

100.000%

100.000%

100.000%

100.000%

100.000%

 

 

Equity and Liabilities

 

Equity

 

Share capital

15.394%

17.059%

2