FACULTY OF BUSINESS AND MANAGEMENT

DIPLOMA IN BUSINESS TRANSPORT

(BA117 4E)

FUNDAMENTAL OF FINANCE
(FIN242)

TITLE:
PETRONAS BERHAD

PREPARED BY:

NAME STUDENT ID

MOHAMAD ZAFRI BIN MOHD ZAID 2021838232

MUHAMMAD SHAHIS IDZANI BIN MOHD SHAHID 2021602394

MUHAMMAD NAZRIN AKMAL BIN MAZLAN 2021490344

MUHAMMAD FAHMY BIN NORAZLAN 2021605272

MUHAMMAD HIFZHANI BIN AZMAN 2021893662

PREPARED FOR:
DR SUHANA MOHAMED

DATE OF SUBMISSION: 30 JUNE 2023

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ACKNOWLEDGMENT

First and foremost, we would like to thank Allah SWT from the bottom of our heart for guiding
and blessing us so that we could successfully complete our group assignment report. Then, we'd
like to extend our sincere gratitude to Dr Suhana Mohamed, a lecturer in the course
Fundamental Of Finance (FIN242), for allowing us to complete this group assignment report and
for her unwavering support and guidance all throughout the semester of our assignment.

In addition, we want to express our sincere gratitude to our family, who did everything they
could to support us by giving us advice and funding our assignment report from beginning to
end. Not to mention all the friends we have that have helped us and taught us over the semester.
Finally, we would like to convey our gratitude to everyone who has been involved and
contributed to our assignment report, whether directly or indirectly. They have shown their work
and initiative in helping us to successfully complete this group assignment report.

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TABLE OF CONTENTS

1.0 ROLE OF CHARACTER IN PETRONAS COMPANY………………………………..4-5

2.0 WORK EXPERIENCE…………………………………………………………………..6-10
3.0 CONCLUSION………………………………………………………………………….11-12

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1.0 ROLES OF CHARACTER IN PETRONAS COMPANY

MUHAMMAD NAZRIN AKMAL as ANALYST

Utilise all tools available, such as v-lookup, pivot tables, etc., to perform data request analysis,
extraction, and formatting depending on user needs, and assess the relevance of the data to the
requestor in order to maintain data confidentiality and security. By analyzing and troubleshooting
issues, keeping track of issue resolution, escalating technical problems to the service provider,
and conducting reviews and acceptance tests on the suggested solutions. Analyst can provide
end-to-end first level functional support that addresses the full range of HR system
functionalities and landscape.

MOHAMAD ZAFRI as ACCOUNTANT

By gathering, monitoring, and adjusting the company's financial information, an accountant

assists firms in making important financial choices. They are in charge of conducting financial
audits, comparing bank statements, and guaranteeing the accuracy of financial records all year
long. The duties of an accountant include monitoring the payment of stakeholders both inside
and outside the company, creating budget projections and preparing tax returns and payments.

MUHAMMAD SHAHIS IDZANI as FINANCIAL MANAGER

Financial manager is an important element of operating a business that involves the planning,
collecting, control, and administration of cash utilised in the business in order for the firm to
function smoothly and successfully. Furthermore, financial managers are responsible for
maintaining an organization's financial health, and they must prepare financial reports, direct
investment operations, and formulate strategies for their organization's long-term financial goals.

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MUHAMMAD FAHMY as LOCAL BANK

A local bank, frequently referred to as an officer of the bank or bank employee, is essential in
offering the consumer of banks a variety of services and support. The primary job they have is to
communicate with clients, analysis their financial requirements, and provide suitable solutions
and bank products.

MUHAMMAD HIFZHANI as CEO

The CEO, often known as the board of the firm, is in charge of making decisions and managing
the corporation. Each Sdn Bhd firm in Malaysia must have a minimum of one resident director.
A person cannot be a director of a firm unless they are at least 18 years old. It is not necessary
for a corporation's director to be a shareholder. During a company's incorporation process, the
CEO could be referred to as a promoter.

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2.0 WORK EXPERIENCE

ANALYST

In Petronas Berhad , the analyst often refers to a position as a financial or business analyst. These
experts are in charge of doing research, analyzing financial and operational data, and delivering
suggestions to aid decision-making inside the company. Petronas Berhad analysts do financial
analysis to examine the performance of the company's finances, spot patterns, and determine the
effects of different factors on the bottom line. In this situation, analysts will perform some
profitability ratio analysis of Petronas Berhad in the last two years.

Petronas Berhad has a good profitability ratio in 2022 compared to the year 2021. The first ratio
that needs to be emphasized is net profit margin ratio. Petronas Berhad’s amount of profit earned
from sales and other operations in 2022 is far better than 2021. As much as 31% they got in the
year 2022 while 26.40% they got in the previous year. There are 4.6% differences obtained in
those two years. Next, the percentage of revenue recorded also makes a higher upgrade in the
year 2022 compared to 2021. It is a good sign for the Petronas Berhad company, they gained
40.43% in 2022 while in 2021 they got only 35.36% lower than the other year for the gross profit
margin. There is a 5.07% difference between those two years recorded.

Other than that, return on asset ratio (ROA) for the Petronas Berhad company given an
attachment who recorded for the two years respectively were 4.24% and 2.57%. While the
difference between the two ratios above is about 1.67%. It showed an increase by both years.At
the same time the Petronas Berhad has good percentage from year to year. It also stated that
Petronas Berhad company is in good relation to its total assets. In addition, for the return on
equity, Petronas Berhad got a higher percentage in 2022 compared to 2021. It indicates how well
the company uses funds and overall sign of profitability. Lastly, in 2022 the company raised
about 40.35% calculated for operating profit margin while in 2021 they have only 8.21%
difference compared to the other year. In 2021, the margin is 32.14%.

It indicates that Petronas Berhad makes a profit well after paying for variable costs of production
such as wages and raw materials.

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ACCOUNTANT

All financial concerns inside a business are handled by an accountant, including maintaining and
analyzing financial records. To keep their business in good financial status, they could be in
charge of tasks like payroll calculation and bank statement reconciliation. In the Petronas
Berhad, the accountant will explain more details about the financial position of the Petronas
Berhad and also show the comparison between 2022 and the previous year 2021.

Starting with total non-current assets which increased by RM412665 milion in 2022 and
compared to the previous year 2021 which is RM382324 million. The difference between these
two years is recorded as RM30341 million, same goes with the total current assets also
experienced a significant increase which is as much as RM725614 million, which has been
calculated for the year 2022. Next, after all liability items have been calculated, it recorded an
increase from 2021 to 2022. The total current liabilities have increased from RM83882 million to
RM 140509 million. As many as RM56627 million differences that have been calculated in this
two year comparison.

Then, move to the statement of profit for Petronas Berhad which has been recorded for the last
two years. Firstly, for the gross profit which has gained in value RM 40121 million in 2022.
Compared to the year 2021, the gross profit obtained is RM 21845 million.This represents an
increase over the two years for Petronas Berhad that it has recorded as much RM18276 million
difference. Lastly, for the operating profit which is earnings before interest and taxes (EBIT) in
2022 has increased by RM40039 million.

After generating financial statements, making sure they adhere to rules and accounting standards,
and giving stakeholders accurate financial information. Analysis of financial information,
transaction recording, and report preparation for management decision-making are the final
processes. For conclusion, we can conclude that from the financial statements, starting with total
non-current assets, total current assets, total current liabilities, gross profit and EBIT detail has
all increased in the year 2022 and also has increased higher than the previous year 2021.

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FINANCIAL MANAGER

In financial manager roles , it will be explain about the liquidity ratio on the company for the
years 2021 and 2022. for the liquidity ratio as Finacial Manager already calculate the Current
Ratio and Quick ratio which shows Petronas Berhad company is not able to meet the short-term
obligations and it is worse in 2022 compared to the year 2021. The current ratio in 2021 is 3.01
times while in 2022 shows takes 2.73 times . Next , for the quick ratio in 2021 is 2.84 times
while in 2022 it takes 2.55 times .This ratio shows that Petronas Berhad is not so good firm
because firms have a lower ability to pay with having to rely on illiquid current assets .Other
than that , for the efficiency ratio the average collection period in 2022 takes a shorter time
which is 252 days compared to the year 2021 which is 282 days so by that Petronas Berhad
Company is better because this firm is good in managing its credit sales and more cash in hands.

In addition, move on to the explanation about Inventory Turnover , it seems to be good on

2022 because it has a higher asset in turnover ratios compared to 2021. As we can see ,the total
assets turned over at 2022 is 0.14 times while 2021 is zero, so from this can conclude that
Pertronas Berhad is better firm because this firm able to utilize its overall assets and goods in
managing its assets and 1 times it is effecient at generating revenue from its assets . Next
financial manager also already calculated that the fixed asset turnover ratios in 2022 is better
than the year of 2021 , which 0.24 times in 2022 while in 2021 it is 0.6 times so Petronas
Berhad company has a higher ratio than 2021 , which is this firm is better because this firm is
able to utilize its fixed assets and good in managing its assets.

LOCAL BANK

A local bank, most frequently referred to as a community bank, is a financial institution that
operates business in a particular local or regional area and generally provides for the banking
requirements of local residents, small companies, and business organizations. The emphasis on
focused individual client care and close relationships to the areas they serve are frequently
characteristics of local banks. The role of the local bank is discussed and explained about the
financial statement of Petronas in the years 2021 and 2022.

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Next, to meet the financial needs of local individuals, companies, and organizations local banks
carry out a variety of tasks. Local banks function as deposit services to provide an amount of
deposit products, including certificates of deposit (CDs), investments, and checking accounts.
Customers may store their money there in complete privacy and receive interest on the deposits
they make. Additionally, local banks also serve loans for a range of needs, including small
company loans, personal loans, vehicle loans, and mortgages for homes. By the provision of
payment services including online banking, wire transfers, and the issue of debit and credit cards,
local banks facilitate the movement of funds between individuals and companies.

In the year 2022, the overall percentage for the leverage ratio on that debt ratio was recorded at
38.55%, although in the previous year, 2021, the percentage decreased by 2.22% to 36.33%.
These indicate that your business has the largest debt levels related to financing assets. This
shows that Petronas business has the biggest debt in terms of financing assets. Next, we turn to
the debt to equity ratio, which in 2022 recorded a total percentage of 11.29% as opposed to
2021's 12.52 percent. This demonstrates a 1.23 percent decrease in the total percentage from
2022 to 2021. It demonstrates that 2022 is preferable than 2021 because of the latter's lower
capital structure debt level. On-time interest earned, however, indicates a positive shift in 2022.
This corporation made 28.89 times as much money as it did the year before, which was 13.76
times. It demonstrates Petronas ability to fulfill the loan's interest obligations

As a consequence, local banks have specific responsibilities within the international oil and gas
company Petronas. Local banks manage the management of the company's corporate accounts as
well as payments, transfers, and assistance with international operations. These banks could also
provide credit facilities, such as loans or credit lines, to assist Petronas with its needs for
operating capital, capital projects, or regional growth aspirations.

CEO

The CEO of Petronas is in charge of managing the day-to-day operations of one of the biggest
and most powerful multinational oil firms in the world. People who are chosen to this position

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often have a wealth of energy industry experience, excellent leadership qualities, and a track
record of effective management.

Next, the CEO is essential in determining Petronas' long-term strategic direction, creating goals
and objectives, and making sure the business is on pace to meet those goals. They also lead the
executive team and help them make critical choices on business operations, financial
investments, and resource allocation. They work closely with the Board of Directors and other
interested parties to create corporate policies, governance structures, and ethical guidelines. They
keep an eye on the programmes and policies that support the expansion and prosperity of the
business.

Other than that, the CEO speaks for Petronas and maintains connections with all parties
involved, including shareholders, customers, employees, shareholders, and regulatory
organizations. A positive corporate image and the protection of the company's interests depend
on effective communication and stakeholder engagement. The CEO is in charge of managing
Petronas' finances, maintaining profitability, and making financial decisions that maximize
revenue generation and cost effectiveness.

Last but not least, The CEO's responsibility also includes managing risks, which is a critical
component. This entails identifying potential risks to the business's operations, reputation, and
financial stability and putting mitigation measures in place.In order to stay current on trends,
developments, and difficulties in the business, the CEO represents Petronas in the oil and gas
sector, takes part in pertinent conferences and forums, and interacts with industry experts.

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3.0 CONCLUSION

Finally, we think it is essential to identify the company's finances in order to minimize losses and
have control over the entry and departure of its assets. Financial considerations are among the
most important decisions that a company owner must make. This is an excellent decision that
should be taken after thorough deliberation. They decide how, when, and where businesses
should get their financial resources. An increase in a firm's stock not only shows progress for the
company, but it also increases the wealth of stockholders.Other than that , financial management
as everyone is understanding, involves many aspects such as planning, collecting, regulating, and
administering cash utilised in company. As a result, every firm that wishes to conduct business
should establish financial goals and objectives that are consistent with the broader business goals
and objectives. As a consequence, the goals of financial management include increasing
shareholder value, ensuring liquidity, lowering the cost of capital, and controlling risk.

Next, any company that wishes to establish a business should regularly review its financial
performance to ensure that it is on track to meet the financial goals and objectives that have been
set. Financial performance, for example, may be tracked via financial reporting, financial
analysis, and financial ratios. When a company regularly examines its financial performance, it
may discover areas that need to be addressed and take remedial action before problems become
worse.

Next, we need to take a look at capital accessibility. Making prudent financial decisions
guarantees a company's ability to access sufficient resources for operations, expansion, and
strategic goals. When a business has enough funding, it may invest in new projects, grow its
market share, develop new products, hire outstanding employees, and take advantage of
development possibilities as they arise.

Finally, businesses that wish to make the greatest choices for their operations must be
knowledgeable about risk management. By making the right financing decisions, a company can
effectively control its financial risks. By diversifying its sources of funding and keeping a
healthy ratio of debt to equity, a corporation can lower the danger of becoming unduly dependent

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on one source of funding. A strong financing plan can also provide the flexibility needed to deal
with unanticipated difficulties, business interruptions, or recessions in the economy.

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