UKFF1023 Financial Management Fundamentals May 2020/2021

UNIVERSITI TUNKU ABDUL RAHMAN (UTAR)

FACULTY OF ACCOUNTANCY AND MANAGEMENT (FAM)

ACADEMIC YEAR: 2020/2021

BACHELOR OF ACCOUNTING (HONS)

YEAR 2 TRIMESTER 1

UKFF1023 FINANCIAL MANAGEMENT FUNDAMENTALS

ASSIGNMENT

Financial ratio analysis is not merely calculating and reporting a given ratio, but also an
effective way investor could appraise whether the company has performed to achieve
the goal of maximisation of shareholders’ wealth. A good ratio analysis involves looking
behind the numbers and interpreting the ratio value helps to answer questions relating
to the operations and financial health of the company. Financial ratios are generally
classified into five broad categories: liquidity ratios, activity or efficiency ratios, debt
ratios, profitability ratios and market ratios. Each categories enable investors and
management of the company to examine a specific area of the company’s performance.

Required:
Confirm your assignment group members of FIVE (5). Select a listed company from the
following list (First come first serve basis, and MUST HAVE the availability of the
LATEST SEVEN years of financial data/annual reports).

Technology Consumer Industrial P Construction Glove

Penta Magni UWC GDB Harta
FrontKN GCB FPgroup Gamuda TopGlove
Greatec PwRoot VS Jaks Kossan
Mi MBMR Sunway Naim Supermax
Dsonic GenM Scicom Ruberex
D&O Genting PIE Oil & Gas Comfort
Krono Dayang
VIS E-Wallet Hardisk Carimin REITs
Vitrox Revenue Dufu Penergy IGBReit
Inari Notion Uzma SUNReit
KESM Finance JCY Serbadk
MyEG RceCap Hibiscus Packaging
Fiber Optic Tguan
Pharma Palm Oil Binacom Property
Kotra JTiasa Rohas MKH Electricity
FGV OCK EwINT MFCB
UKFF1023 Financial Management Fundamentals May 2020/2021

UNIVERSITI TUNKU ABDUL RAHMAN (UTAR)

FACULTY OF ACCOUNTANCY AND MANAGEMENT (FAM)

You are required to:

(1) Discuss the key strengths and likely threats of the selected company, including
the future prospects of the company in its industry. (Hints: growth potential, major
competitors, risks in line with its future direction, such as IoT under the IR4.0)
(10 marks)

(2) By utilising the WEEKLY data, calculate and evaluate:

(i) the mean (average) share price returns of your selected company for each
year and over the LATEST SEVEN (7) years period;
(10 marks)

(ii) the risks, as measured by standard deviation of your selected company

over the LATEST SEVEN (7) years period;
(10 marks)

(iii) the correlation coefficient of your selected company's share price returns
with the market returns (FBM KLCI index) over the LATEST SEVEN (7)
years period.
(10 marks)

(3) Analyse the financial ratios of your selected company based on the financial
statements obtained from the LATEST SEVEN (7) years’ Annual Reports of the
company. (Hints: Your team should look into the FIVE (5) broad categories of
financial ratios, perform time series analysis ONLY for RELEVANT specific
ratios)
Please be noted that heavier weights will be awarded for the in-depth analysis,
reasoning and linkage to relevant facts of the company and industry rather than
precision of calculations or number of ratios calculated.
(30 marks)

(4) Construct a DuPont model for your selected company that combine all data over
the LATEST SEVEN years period. (Hint: based on the Net Profit Margin x Asset
Turnover x Gearing, i.e. Net Profit/Turnover x Turnover/Total Asset x Total
Asset/Shareholders’ Fund)
(10 marks)

(5) Based on your overall analysis from part (1) to (4), recommend with
justifications whether the selected company is viable to invest over the long
term. (Hint: each component of DuPont provides business insights for
investment opportunities)
(20 marks)
UKFF1023 Financial Management Fundamentals May 2020/2021

UNIVERSITI TUNKU ABDUL RAHMAN (UTAR)

FACULTY OF ACCOUNTANCY AND MANAGEMENT (FAM)

NOTE:
Your report shall be of a minimum of SIX (6) pages but SHALL NOT EXCEED TEN
(10) pages (exclusive of the appendices for calculations). Marks will not be allocated
for pages beyond Page 10. For questions 2 to 4, summary of outputs from calculations
should be summarised and tabulated. Marks are given according to the
interpretation and implication of findings. It should be very specific in answering
the question; nothing should be included that doesn’t contribute directly to
answering the question.

Students are reminded to include mark sheet provided below after the cover page of the
report for submission.

Other Requirements
Standard format: Times New Roman/Arial, font size of 12, 1.5 spacing, one-inch
margins. Hand-written assignment will not be accepted.

Assignment submission: WEDNESDAY, 12PM, WEEK 9, upload to WBLE. Each

group must upload the softcopy of the assignment with the file name strictly in the
format of UKFF1023_TUTORIAL GROUP NO_COMPANY NAME (e.g.
UKFF1023_T2_GENM) to WBLE ON THE SUBMISSION DATE (please read Late
Submission Penalty Clause in the Course Plan). All relevant information including raw
data and calculations used in your assignment must be included in the softcopy.

Procedures for handling “Free-Rider” issue in group assignment

In a team or group, a free rider is someone who wants others to contribute but plans to
use other’s contribution for themselves. The following procedures will be implemented
in handing “free-rider” issue for a team or group:
1. An interview session will be conducted by the LEAD LECTURER with ALL members
in order to collect reports on members’ contributions (who did what work);
2. An assessment or evaluation will be conducted by having ALL members assess/rate
themselves and their peers on how much they did or contribute. An average (mean) of
all ratings will be taken into account as final evaluation.
UKFF1023 Financial Management Fundamentals May 2020/2021

UNIVERSITI TUNKU ABDUL RAHMAN (UTAR)

FACULTY OF ACCOUNTANCY AND MANAGEMENT (FAM)

SELECTED COMPANY: __________________________________________

TUTORIAL GROUP: _____

NAMES STUDENT ID
1)
2)
3)
4)
5)

Areas of Evaluation Marks Allocated Marks Awarded

(1) Background of selected company 10 marks
and industry
(2) Calculation and analysis of
(i) Return 10 marks
(ii) Risk 10 marks
(iii) Correlation 10 marks
(3) In-depth ratio analysis 30 marks
(4) DuPont model 10 marks
(5) Recommendation and justifications 20 marks
Total 100 marks
Total convert to 20 marks

Comments:
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

EXAMINER’S NAME: ___________________________ DATE: __________

SIGNATURE: ___________________________