Horizontal Analysis of Group Statement of Financial Position

for OKA CORPORATION BHD

Changes'
2020 2021 Changes' $ %
Assets
Property, plant and equipment 69,906,907 71,490,619 1,583,712 2.27%
Right of Use Assets 1,048,451 1,337,971 289,520 27.61%
Investment Property 2,657,602 2,602,043 (55,559) -2.09%
0.00%
Other Investments 11,920 11,920 -
Differed Tax Asset 1,490,783 1,654,377 163,594 10.97%
Total non-current assets 75,115,663 77,096,930 1,981,267 2.64%

Inventories 41,206,064 41,217,973 11,909 0.03%

Receivables, deposits and 26.13%
prepayment 27,230,803 34,346,222 7,115,419
Current tax assets 6,083,406 5,825,445 (257,961) -4.24%
Cash and Cash Equivalents 52,064,881 52,538,042 473,161 0.91%
126,585,15 5.80%
Total current assets 4 133,927,682 7,342,528

201,700,81 4.62%
Total assets 7 211,024,612 9,323,795

Equity
0.00%
Share capital 87,836,442 87,836,442 -
Reserves 88,106,901 93,894,380 5,787,479 6.57%
Total equity attributable to owners 175,943,34 3.29%
of the Company 3 181,730,822 5,787,479

Liabilities
Payables and accruals 24,752,832 28,208,077 3,455,245 13.96%
Contract liabilities 1,004,642 1,085,713 81,071 8.07%
Total current liabilities 25,757,474 29,293,790 3,536,316 13.73%

Total liabilities 25,757,474 29,293,790 3,536,316 13.73%

201,700,81 4.62%
Total equity and liabilities 7 211,024,612 9,323,795
Interpretation
This Table above presents the Horizontal analysis of OKA CORPORATION BHD, which
compares statement of financial position of year 2020 and 2021, which year 2020 was
used as the base year. The total non-current asset shows a slight increase in year 2021
with 1,981,267RM (2.64%), this increase was as a result of some factors like increase in
Property, Plant and Equipment by 2.27%, which could be that the company acquired
more PPE, also Right of Use Asset which is an account showing the finance lease
obligation that the company is currently holding, and this as seen a significant increase
of 27.61% in 2021, when compared with the previous year, this show that the company
has more non-asset that they have the right to use through leasing. Furthermore,
Differed Tax Asset shows that the company is currently gaining and the future tax to be
paid will be reduce by 10.97% increment in 2021. Although, there was a little drawback
on Investment Property by 55,559RM (-2.0%), but this reduction did not have much
significant effect on the total non-current asset, because most other asset increase in
value, except Other Investment that remains changed.

The total current asset shows an increase in year 2021 with 7,342,528RM (5.8%), this
increase was as a result of some factors like a small positive change in Inventory by
0.03%, which could be that the company acquired more input material, or slow
production process, or difficulty in selling its product, also Receivables, deposits and
Prepayment shows a significant increase of 26.13%, which the notes to the financial
statement (10) shows that the company relax its credit policy, and customers are taking
longer time to pay back, because the Trade receivable amount increase from
26,446,968RM in 2020 to 33,852,814RM in 2021 by 28%, while other non-trade
receivable increase from 130,322RM in 2020 to 159,662RM in 2021 (22.51%), also
deposit shows a reduction in value from 647,070 in 2020 to 331279 in 2021 (48.73%)
and a decrease in prepayment by 55.42% (from 5,534 to 2,467).

Furthermore, the Current tax asset shows a reduction in value and percentage from
6,083,406RM to 5,825,445RM which is -4.24%, this means that the tax paid in the
current year increased from 3,185,986 to 5,792,157, which caused the current differed
asset to reduces in value. Lastly, the Cash and Cash Equivalent had only little change
which was positive 0.91%, which connote that the cashflow rise upward slight, which
might be due increase in cash outflow that went to investment activities, leading to
increase in asset or increase in account receivable, which means company cash is
being tied up in the hands of customers.

The Total Assets for the company increase by 4.62%, which is good for the company,
because is shows an upward growth and development.

The Total value of equity attributable to the owners of the company shows an upward
change of 3.29%, this increment could be attribute to only the positive change in
Reserves by 6.57% (from 88,106,901 to 93,894,380) as equity Share Capital shows no
changes for the two periods under consideration. This increase in reserve was as a
result of increase in retained profit in 2021 by 6.56% (increase from 88,103,521RM to
93,891,000RM).

Lastly, the total current liabilities for 2021 increase by 13.73% when compare with 2020
from a total value of 25,757,474RM to 29,293,790RM. This increase in current liability is
as a result of increase in payables and accruals by 13.96% and contract liabilities by
8.07%. The payables and accruals according to note (14) of the financial statement,
displays that Trade Payable Amount for 2021 increase by 2,920,456RM (17.05%), while
other non-trade items payable and accrual also increase by 534,789RM (7.02%). The
contract liabilities that increase by 8.07% are advance that as being received from
customer before transfer of purchase consideration in form of product, and this means
revenue as not been recognise, but treated as liability till when the product ownership or
control is transferred to customer, and this value increase from 1,004,642 in 2020 to
1,085,713 in 2021, which is 81,071RM (8.07%).

The total current liability is same as total liabilities, because there is no presence of any
long term liability, giving the financial statement a clear understanding that the business
is total finance through the use of Equity Resources.

The Total Equity and liability for the current period also increase by 9,323,795 at 4.62%
(from 201,700,817RM in 2020 to 211,024,612RM in 2021).