Total Mark: /50

CENTRE FOR FOUNDATION STUDIES

FHBM1214 FINANCIAL ACCOUNTING

SEMESTER 202210
Lecture Group: ___L2___

Company name:

Berjaya Corporation
__________________________

Prepared by;
No ID No. Name Tutorial Signature
(alphabetical order) Group
1 2207574 Abineshwaran A/L T10
Murugayah
2 2206161 Bernie Lee Zheng Yang T7
3 2204460 Oscar Woo T8
4 2206938 Reyes Loh Chang Le T8
5 2207510 Tham Zhi Xin
6 2207083 Ho Yong Yi T8
7
8

Date of submission: 26rd December 2022

Marking Rubric
No. Description Marks Tota
l
a Nature of Correctly identified and described the
2
Business company’s nature of business.
Correctly identified the company’s nature of
business with no description. / Describe the
company background with no identification of 1
/2
nature of business.
Wrongly identified the company’s nature of
0
business.
b Stakeholders Correctly stated any 2 (TWO) stakeholders with
2
correct example for each based on the company.
Correctly stated any 1 (ONE) stakeholder with
correct example based on the company. /
1
Correctly stated any 2 (TWO) stakeholders with /2
wrong examples based on the company.
Provide answers other than stakeholders.
0
c (I) Table Complete SOCI & SOFP and correct table
4
analysis analysis.
Complete SOCI & SOFP with minor calculation
3
error in the table analysis.
Items included in SOCI / SOFP are not complete
/Complete SOCI & SOFP but with major errors
2 /4
in the table analysis.
Only include either SOCI or SOFP table
1
analysis.
No table analysis. 0
c (ii) Comments Ideas are organized; well structured;
on the six demonstrated full knowledge; applied critical 4
points thinking skills.
(4m x 6 Ideas are organized; well structured;
3
points =24m) demonstrated full knowledge.
Ideas are organized; brief explanation. /24
2
Ideas are unorganized, no explanation.
1
d Decision Decision is clearly stated. 1
/1
No decision is stated. 0
Summary of Provide clear and well-organized summary. 2
points Provide disorganized summary. 1
/2
No summary. 0
 Reasons Provide reasons based on excellent justification. 4
(4m x 3 Provide reasons based on good justification. 3
points =12m)
Provide reasons based on moderate justification. 2
Provide reasons based on poor justification. 1 /12

Provide reasons based on no justification. 0

e Creativity Provide a very well organized and 3
and format understandable report.
Provide a moderately organized and 2
/3
understandable report.
Provide a disorganized and not understandable 1
report.
Total /50
Company Name: Berjaya Corporation

Brief about the company: TAN SRI DATO owned the Berjaya Corporation group’ SERI
VINCENT TAN CHEE YIOUN and establish in 1984 year. Besides, it is a Malaysia-based
corporation which controls a wide array of businesses, including consumer marketing,
Property development and investment, as well as hotels, resorts, and recreation development.

The nature of business for Berjaya is an investment holding conglomerate, investment

holding conglomerate group and the focus is Consumer marketing Business.

Besides, the< core businesses> are Consumer Marketing, Direct selling/retail, Property
investment and Development, Lottery management.

Example Direct Selling: COSWAY(M) Sdn Bhd, Berjaya Books Sdn Bhd (Borders
bookstore)

Example of property: The Ritz-Carlton Residences (KL), The peak-Taman TAR (Ampang
Selangor)
Question
As an investor, you are trying to look for a good public listed company to invest in.
Therefore, you plan to look at the company’s financial statement before deciding whether to
invest in the company. You are required to download the latest annual report of a company
listed in Bursa Malaysia (www.bursamalaysia.com) and then prepare a report. Your report
must contain the following items:
(A) Identify and explain the nature of business conducted by the company. (2m)

Berjaya Corporation Berhad (BCorp) is one of Malaysia’s largest conglomerates.

The nature of business Berjaya Corporation Berhad (BCorp) is an investment holding
conglomerate. Conglomerate holding Company is a corporation with several company and
sometimes is unrelated business, Conglomerates also knows as parents’ companies.
Conglomerates company own few subsidiaries, each subsidiary runs the business
independently and giving business report to Parents company. Besides, (BCorp) also involves
in different kind of business such as; Direct selling and retail, hotels, and property
investment. Such as: COSWAY(M) Sdn Bhd, Plaza Berjaya (KL), Berjaya Times Square
Hotels are all the business.
(B) Identify any TWO (2) stakeholders that will use the information contained in the
financial statement for decision making. Briefly describe the decision(s) that would be made
by the mentioned stakeholders, respectively.

The first stakeholders are Managers. Managers playing a significant role in a company

because they need to experience direct effects based on company performance and decide

their decision making and evaluate the growth and stability of each department. Managers use

Forecasting to evaluate business performance, cash flow and decide the next year’s

budget. Besides, Managers also use Financial Statement as a company planning, they reveal

the balance sheet to know their assets and liabilities to control companies finance

Name Title

Chia Fan Cheng Co-Chief Executive Officer & Executive

Director

Cahul Hameed Syed Ali Deputy Chairman & C0-chief Executive

Officer

Jong Ren Hen Chief Financial Officer

Lai Heng Tham Co-secretary

Siew Guek Wong Co-Secretary

Ley Moi Soh Co-Secretary

Su Peng Yau Director-Retail Marketing & Innovation

 The second stakeholders are shareholder which is a person, company, or institution

that owns at least one share of a company’s stock or in a mutual fund. Shareholder

analysis of share value is widely based on cash flows, so they will have the greatest

interest in the statement of cash flows. Financial statements are an easy way for

shareholders to gauge the overall health of a company and provide a useful snapshot

that allows shareholder to keep up with the company’s decisions, mark increase in

growth or changes in strategy. Furthermore, financial statement is essential because it

provide information about a company's revenue, expenses, profitability, and debt that

shareholder can get a good idea of how much they can expect to make in dividend

earnings.

Name Equities %
Chee Yioun Tan 1,256,473,431 21.1%
Hotel Resort Enterprise Sdn. Bhd. 318,684,724 5.34%
Berjaya Corporation Berhad 317,988,527 5.33%
Berjaya Assets Berhad 276,450,000 4.64%
Abdul Jalil bin Abdul Rasheed 171,571,000 2.88%
The Vanguard Group, Inc. 103,436,953 1.73%
HQZ Credit Sdn. Bhd. 76,674,052 1.29%
AIA Bhd. 72,436,700 1.21%
Fook Ling Chea 59,084,600 0.99%
Dimensional Fund Advisors LP 55,247,735 0.93%
 Calculate the changes by using the horizontal method for both SOCI and SOFP. You may use
font size’s 10 for this table.

Statement Of Comprehensive Income

Particulars 2022 2021 Increase/Decrease Percentage of change

Amount
revenue 8,155,139 7,464,542
cost of sales (5,695,044) (5,491,351)
gross profit 2,460,095 1,973,191

other income 543.272 398.853

administrative expenses (1,846,819) (1,572,290)
selling and distribution expenses (354,545) (346,656)
other expenses (293,095) (361,807)
508,908 91,291

Financial costs (349,196) (355,991)

SHARE OF RESULTS OF ASSOCIATES 39,505 (10,217)
SHARE OF RESULTS OF JOINT VENTURES 31,354 14,527
PROFIT/(LOSS) BEFORE TAX 230,571 260,390

TAXATION (207,078) (196,753)

profit /(loss) for the year 23,493 63,637

attributable to:
owners of the parent 51,770 (459,630)
non-controlling interests (28,277) 2,487
23,493 (457,143)
Particulars 2022 2021 Increase/ Percentage of change
Decrease
Amount
TOTAL PROFIT/(LOSS) FOR THE YEAR 23,493 (457,143)
other COMPREHENSIVE INCOME: ITEMS THAT
MAY BE RECLASSIFIED SUBSEQUENTLY TO
PROFIT OR LOSS
FOREIGN CURRENCY TRANSLATION 7,827 60,782
foreign CURRENCY RESERVE TRANSFER TO 8 (3343)
PROFIT OR LOSS DUE TO DISPOSAL OF
ASSOCIATED COMPANY
foreign CURRENCY RESERVE TRANSFER TO - (81,437)
PROFIT OR LOSS DUE TO DISPOSAL/DEEMED
DISPOSAL SUBSIDIARIES
share OF ASSOCIATED COMPANIES AND JOINT 727 (2354)
VENTURES CURRENCY TRANSLATION
DIFFERENCES

ITEMS THAT WILL NOT BE CLASSIFIED

SUBSEQUENTLY TO PROFIT OR LOSS
NET CHANGES IN FAIR VALUE RESERVE OF (1,554) 23,493
INVESTMENTS CLASSIFIED AS FAIR VALUE
THROUGH OTHER COMPREHENSIVE INCOME
(FVTOCI)
share OF ASSOCIATED COMPANIES CHANGES IN (9,706) (3,398)
FAIR VALUES OF FVTOCI INVESTMENTS
SHARE OF OTHER COMPREHENSIVE ITEMS OF 439 (3,634)
ASSOCIATES
revaluation OF LANDS AND BUILDINGS 491 559
ACTUARIAL GAIN RECOGNISED IN DEFINED 14,929 12,014
BENEFIT PENSION SCHEME
TAX EFFECTS RELATING TO
 REVALUATION OF LAND AND 149 (55)
BUILDINGS
 FVTOCI INVESTMENTS - 13
 DEFINED BENEFITS PENSION SCHEME (3,735) (2,987)
- -
9575 (347)
TOTAL COMPREHENSIVE INCOME FOR THE 33,068 (457，490)
YEAR
ATTRIBUTABLE TO:
 Owners OF THE PARENT 64,535 (493,101)
 NON-CONTROLLING INTERESTS
(31,467) 35,611
33,068 (457,490)

Particulars 2022 2021 Increase/Decrease Percentage of

 RM”000 RM”000 Amount change
ASSETS
Non-current assets
Property, plant and equipment 3,230,786 3,139,768
Right-of-use assets 1,853,675 1,858,016
Investments properties 936,605 974,183
Inventories- land held for property 2,307,376 2,264,595
development
Subsidiary companies - -
Associated companies 943,933 1,065,165
Joint ventures 175,042 134,777
Other investments 349,425 242,804
Other long-term receivables 383,893 359,025
Retirement benefits assets 25,294 9927
Intangible assets 4,876,957 4,879,130
Deferred tax assets 86,692 94,357
7,003,712 15,032,747
Current assets
Inventories- property 91,200 107,556
development costs
Inventories- others 1,467,950 1,482,677
Contract cost assets 12,417 13,127
Trade and other receivables 1,854,267 1,862,808
Contract assets 161,777 129,026
Short term investments 99,713 64,345
Tax recoverable 46,525 50,071
Derivative assets - 195
Deposits with financial institutions 637,209 556,767
Cash and bank balances 721,864 646,617
5,092,922 4,912,989

Assets of disposal group/ non- 188.968 187,768

current assets classified as held for
sale
TOTAL ASSETS 20,450,568 20,122,504

EQUITY AND LIABILITIES

Equity attributable to equity
holders of the parent
Share capital 5,286,202 5,092,989
Equity component of
irredeemable convertible
unsecured loan stocks 53,231 242,657
Reserves 806,269 807,627
6,145,702 6,143,273
Treasury shares (74,982) (59,987)
6,070,720 6,083,286
Non-controlling interests 2,808,371 2,824,227
Total equity 8,879,091 8,907,513
Non-current liabilities
Liabilities component of
irredeemable convertible
unsecured loan stocks 5066 6643
Long term borrowings 3,248,194 675,478
Lease liabilities 1,802,679 -
Other long-term liabilities 135,638 61,140
Contract liabilities 185,341 -
Provisions 37,381 -
Deferred tax liabilities 1,237,231 1,243,762
Derivative liabilities - -
6,651,530 6,157,416
Current liabilities
Liability component of
irredeemable convertible
unsecured loan stocks 2057 25,714
Trade and other payables 2,248,998 2,081,346
Contract liabilities 435,773 316,262
Provisions 21,994 7,904
Short term borrowings 1,871,413 2,349,735
Least liabilities 231,947 228,154
Taxation 68,015 41,709
Derivative liabilities 39,750 6751
4,919,947 5,057,575
Liabilities directly associated - -
with disposal groups
classified as held for sale

Total liabilities 11,571,477 11,214,99

1

TOTAL EQUITY AND 20,450,568 20,122,50

LIABILITIES 4
(ii) Choose any SIX (6) components, THREE (3) each from SOCI and SOFP respectively
(3 from SOCI and 3 from SOFP) that you want to further analyse and give comments.

Statement of Comprehensive Income

REVENUE

Particular Year 2021 Year 2022 Variance

(RM’000) (RM’000) Increase Percentage
(RM’000) (%)

Revenue Rm7,464,542 RM 8,155,139 RM690, 597 9.25%

Revenue is a form of income of organization which is generated by sale of goods and

services. Berjaya Corporation Berhad generate their revenue through direct selling and retail,
hotels, and property investment. Some of the well-known goods and services provided by
Berjaya Corporation are Starbucks, COSWAY and many more.

(Diagram of Revenue between each year)

As shown in the table above, the revenue received had increase from Rm 7,464,542 to
Rm8,155,139 in year 2022 compared to the year 2021, an increase by RM690,597 with
9.25%. The revenue is derived from two major revenues which are retail revenue and services
revenue. At the same time follow by property revenue and hospitality revenue.

Due to the outbreak of the virus COVID-19, the vital disease had spread all around Malaysia
and striked down Malaysia’s Economic Structure from various aspects such as restaurants
and cafes. Due to the pandemic caused by this outbreak, many citizens preferred cooking at
home rather than eating at outside. Which Impacted many hawkers' revenue as it started to
steep decline.

Apart from that, the vital disease also striked down the economics' structure from the aspects
of hotels and resorts. This is due to governments order to initiate a movement control order
which restricted tourists from foreign countries from travelling to Malaysia. The revenue of
hotels and resorts went down by a wide margin, as the travel rate began to decline due to the
order.
EXPENSES
Expenses Year 2022 Year 2021 Variance

(RM’000) (RM’000) Increase Percentage

(RM’000) (%)

Administrative (RM1,846,819) (RM1,572,290) RM274,529 17.46%

Expenses

Selling and (RM354,545) (RM346,656) RM7889 2.28%

Distribution Expenses

Total Expenses (RM2,201,364) (RM1,918,946) RM282,418 14.72%

The total expenses of Berjaya Berhad in the year 2021 is (RM1,918,946), Whereas the total
expense in the next year is (RM2,201,364). The total expenses of the company have
increased by 14.72% with the amount RM282,418.

The total expenses of the company might be affected by few factors such as the amount of
administrative expenses and other expenses for those two years. These factors will indicate
whether did the total expenses for the company has decreased or increased compared to
the previous year.

Besides, there was an increase of administrative expenses by 17.46% amounting RM

274,529. This was the major cause of the increment of the total expenses with the factor
being the increment of other expenses. The amount of selling and distribution expenses
increased by 2.28% amounting RM 7889.
 NET PROFIT/NET LOSS
Particular Year 2022 Year 2021 Variance
(RM’000) (RM’000) Amount Percentage
(RM’000) (%)
Owners of The RM 51,770 RM (459,630) Rm 511,400 111.26%
Parent
Non-controlling RM (28,277) RM 2,487 (RM 30,764) -1236.99%
Interests

Total Net RM 23,493 RM (457,143) RM 480,636 105.14%

Profit/Net Loss

The net profit of Berjaya Company Berhad in 2021 is (RM 457,143), while in 2022 the
company Net profit increasing and reach RM 23,493, the net profit has increased 105.14%
or RM 480,636.

The reasons the net profit turn increase is because of the owners of the parent have increased
more than non-controlling interests during year 2021 to year 2022.According to the table, we
can see that the increased of amount for the owners of the parent was RM511,400, and the
deceased amount of non-controlling interests was RM30,764. Therefore, it will cause the
total net profit increased in the year 2022.
 Statement Of financial Position
Assets

Year 2022 Year 2021 Variance

Particular (RM’000) (RM’000)
Increase Percentage
(RM’000) (%)

Property, Plant RM 3,230,786 RM 3,139,768 RM 91,018 2.9%

and Equipment

Joint Ventures RM 175,042 RM 134,777 RM 40,265 29.88%

Total Assets RM 3,405,828 RM 3,274,545 RM 131,283 4%

As shown in the table above, show the total asset of Berjaya Corporation Berhad in 2021 is
RM 3,274,545, while in 2022 is RM 3,405,828. The total asset has increase by 4% with the
amount RM 131,283 from the year 2021 to 2022.

Two factors leading to the decrement of the total assets are both property, plant and
equipment and joint ventures. The property, plant and equipment has increased from
RM3,139,768 to RM 3,230,786 which is by 2.9%. Next the joint ventures also increased by
RM 40,265 which is by 29.88%.

These two factors had led to the increment of the total assets of Berjaya Berhad.
LIABILITIES

Particular Year 2022 Year 2021 Variance

(RM’000) (RM’000)
Amount Percentage
(RM’000) (%)

Non-Current
Liabilities RM6,651,530 RM6,157,416 RM494,114 8.02%

Current
Liabilities RM4,919,947 RM5,057,575 (RM137,628) -2.72 %

Total RM11,571,477 RM11,214,991 RM356,486 3.18%

Liabilities

Liabilities are the future sacrifices of economic benefits that the entity is obliged to make to
other entities as a result of past transactions. The liabilities of Berjaya Berhad had increased
by RM 356,486 which is by 3.18%.

Two factors leading to the increment of the liabilities are non-current liabilities and current
liabilities. The non-current liability had increased by 8.02% amounting RM 494,114. The
current liability however had a decrement of 2.72% amounting RM 137,628. These two are
the factors that led to the increment of total liabilities of Berjaya Berhad.
 Year 2022 Year 2021 Variance
(RM’000) (RM’000) Decrease Percentage
Particular
(RM’000) (%)

Reserves RM 806,269 RM 807,627 RM 1358 0.17%

Total
shareholders’ RM 8,879,091 RM 8,907,513 RM 28,422 0.32%
Equity

Total shareholder’s Equity

The total shareholders’ equity of Berjaya Company Berhad in 2021 is RM8,907,513 while in
2022 is RM8,879,091. The total equity has decreased 0.32% or RM28,422

According to the annual report, the main reasons for increase in shareholder’s equity is
reserves. Reserves have increased from RM1,101,770 to RM1,120,510 respectively 2021 to
2022.It increased by 1.7% with the amount RM18,740. Furthermore, the reserves of Berjaya
Company Berhad are divided into two main parts, which are Capital reserves and Revenue
reserves. A capital reserve is taken out of the capital profit and is not shared as a dividend to the
shareholder. This reserve cannot be created out of the profit earned from the core operation. Few
examples of capital reserves are:

 Cash received by selling current assets

 Premium earned on the issue of share and debentures

 Excess on revaluation of assets and liabilities

Last but not lease is Revenue reserve is a portion of profit owned by the company and is kept
aside for the use of other multiple purposes. This reserve is recorded in the profit and loss
account and can be used the following way:
(D)Your decision as to whether you would invest in the company or not, based on the
analysis made. You are required to provide relevant reasons to support your decision.
Reasons can be from analysis you made and other sources that might be relevant to be
included (You may decide on how many reasons required to justify your decision, and
creativity in supporting your decision from external sources such as internet, magazines,
newspapers would be rewarded more marks.) (15m)

Based on our analysis, we can conclude that total assets increased by 4%, total liabilities
increased by 3.8%, total shareholders equity decreased by 0.32%, revenue increased by
9.25%, expenses increase 14% and net profit increase by 104% compare 2021 to 2022
overall.

I will invest Berjaya corporation starting from the year of 2022, with few aspects and
prospectors which is Cash flow statement, income statement and working capital.

First of all, according to the BGRO cash flow statement, we are able to compare the stability
of Berjaya company’s cashflow. Compare between year 2022 with 2021,2020,2019, 2022
have a positive cashflow while the three others year have negative cashflow. Negative cash
flow is when your business has more outgoing than incoming money. Which explained by the
company cannot cover their expenses from sales alone. Instead, you need money from
investments and financing to make up the difference. Besides a negative cashflow are a sign
or red light that this company business is losing money and poor timing of income and
expenses
Furthermore, working capital also a factor and reason for me why I would like to invest this
company. Following the balance sheet, the bar chart shows that the Total assets is exceed
more than the liabilities which means they have a stronger working capital and planning for
sustainable growth. Besides, the equity of Berjaya corporation also rises up compared to 2020
and 2019, with a more higher of equity I could earned more dividends as well.|

Last but not least, inventory turnover also a significant factor that drive us to investing this
company. Compare between few years with 2022, Bcrop company inventory are performing better.
The turnover ratio is derived from a mathematical calculation, where the cost of goods sold is
divided by the average inventory for the same period. A higher ratio is more desirable than a
low one as a high ratio tends to point to strong sales.

Knowing the turnover ratio also give me a more confident and long-term investing for this
company because with high turnover ratios it means that the company is selling a lot of
products and needs to replace it often.

In Conclusion, I will firmly invest this Bcorp company; the financial ratio of Berjaya
Corporation Bhd indicate that it will be a good investment and will bring more dividend for
investors with their good prospectors and long-term visual in the future.
 Reference

1.Berjaya Corporation Berhad, 2022 Annual Reports (page 101-106)

https://www.berjaya.com/assets/images/annual-reports/bjcorp22.pdf

2.Berjaya Corporation: Shareholders Board Members Managers and Company Profile:

MYL339OO000：Market Screen

https://www.marketscreener.com/quote/stock/BERJAYA-CORPORATION-
6496990/company/

3.Inventory turnover of BERJAYA CORPORATION BHD-MYX: BJCORP

https://www.tradingview.com/symbols/MYX-BJCORP/financials-statistics-and-ratios/invent-
turnover/

4.Berjaya Corporation Bhd (BGRO) Financial Ratios

https://www.investing.com/equities/berjaya-corporation-bhd-ratios

5.BRYAF/Berjaya Corp Bhd Financial Statements-WSJ

https://www.wsj.com/market-data/quotes/BRYAF/financials