TABLE OF CONTENTS

TABLE OF CONTENTS.................................................................................................. 1 1.0 COMPANY PROFILE................................................................................................ 5 1.1 Company Vision................................................................................................. 6 1.2 Company Mission.............................................................................................. 6 1. Co!po!a"# Co!# Va$%#s....................................................................................... 6 1.& S"!a"#'i( O)*#("i+#s.......................................................................................... 6 1.5 Finan(ia$ Ris, Mana'#m#n" O)*#("i+#s an- Po$i(i#s........................................... 1.5.1 C!#-i" Ris, .................................................................................................. . 1.5.2 In"#!#s" Ra"# Ris, ....................................................................................... . 1.5. Li/%i-i"y Ris, .............................................................................................. . 1.5.& Cas0 F$o1 Ris, ........................................................................................... . 1.6 Iss%# o2 S0a!#s an- 3#)#n"%!#s......................................................................... 1.6.1 S0a!# Op"ions.............................................................................................. 4 1.6.2 3i+i-#n-s.................................................................................................... 4 1.. 5!o%p Co!po!a"# S"!%("%!#................................................................................ 4 1.4 Boa!- o2 3i!#("o!s6........................................................................................... 7 1.4.1 YB0'. 3a"o6 8i!a Sy#- A)-%$ 9a))a! )in Sy#- :assan................................7 1.4.2 YB0'. 3a"%, :* :asni )in :a!%n................................................................10 1.4. YM. T#n',% 3a"o6 S#!i :asm%--in T#n',% O"0man..................................11 1.4.& YB0'. 3a"o6 Mo0- No! )in I-!%s................................................................11 1.4.5 En. Ba0a!i )in :am;a0..............................................................................12 1.7 Mana'#m#n" T#am.......................................................................................... 1& 2.0 5ENERAL ENVIRONMENT ANALYSIS....................................................................1& 2.1 Po$i"i(a$............................................................................................................ 1& 2.2 E(onomi( ........................................................................................................ 15 2. So(io (%$"%!a$................................................................................................... 16 2.& T#(0no$o'y...................................................................................................... 1. .0 TAS< ENVIRONMENT ANALYSIS..........................................................................14 .1 Ri+a$!y amon' Comp#"in' Fi!ms ....................................................................14 .2 Po"#n"ia$ #n"!y o2 N#1 Comp#"i"o!s.................................................................17 . Ba!'ainin' Po1#! o2 S%pp$i#!s.........................................................................17 .& Ba!'ainin' Po1#! o2 B%y#!s............................................................................. 17 1=Pa'#

&.0 S8OT ANALYSIS................................................................................................. 20 &.1 S"!#n'"0 ......................................................................................................... 20 &.2 8#a,n#ss#s .................................................................................................... 2 &. Oppo!"%ni"i#s................................................................................................... 2 &.& T0!#a"s............................................................................................................ 2& 6.1 Li/%i-i"y Ra"ios................................................................................................ 26 6.1.1 C%!!#n" Ra"io............................................................................................ 26 6.1.2 >%i(, Ra"io............................................................................................... 26 6.2 L#+#!a'# Ra"ios............................................................................................... 2. 6.2.1 3#)"?"o?To"a$ Ass#"s Ra"io........................................................................2. 6.2.2 3#)"?"o?E/%i"y Ra"io................................................................................. 2. 6. A("i+i"y Ra"ios................................................................................................. 24 6. .1 In+#n"o!y T%!no+#!................................................................................... 24 6. .2 Fi@#- Ass#"s T%!no+#!.............................................................................. 24 6. . To"a$ Ass#"s T%!no+#!............................................................................... 24 6. .& A((o%n" R#(#i+a)$# T%!no+#!...................................................................27 6. .5 A+#!a'# Co$$#("ion P#!io-........................................................................27 6.& P!o2i"a)i$i"y Ra"ios........................................................................................... 27 6.&.1 5!oss P!o2i" Ma!'in...................................................................................27 6.&.2 N#" P!o2i" Ma!'in...................................................................................... 0 ......................................................................................................................... 0 6.&. R#"%!n on To"a$ Ass#"s AROAB................................................................... 0 6.&.& R#"%!n on S"o(,0o$-#!s6 E/%i"y AROEB...................................................... 0 ..0 STRATE5IC 3IRECTION....................................................................................... 1 4.0 COMPANY PROFILE.............................................................................................. 4.1 Company Vision............................................................................................... & 4.2 Company Mission............................................................................................ & 4. 3i+i-#n-.......................................................................................................... & 4.6 Boa!- o2 3i!#("o!6s.......................................................................................... 5 4.. Boa!- o2 3i!#("o!6s P!o2i$#................................................................................ 5 4...1 3a"o6 Tan <in' S#n' AE@#(%"i+# C0ai!man C Mana'in' 3i!#("o!B.............. 5 4...2 Ooi Y#o, :o(, AE@#(%"i+# 3i!#("o!B........................................................... 6 4... Tan C0in :on' AE@#(%"i+# 3i!#("o!B.......................................................... 6 2=Pa'#

4...& C0#a0 C0oon 50## AE@#(%"i+# 3i!#("o!B................................................... 6 4...5 Lo0 C0y# T#i, AIn-#p#n-#n" Non?E@#(%"i+# 3i!#("o!B............................... . 4...6 T#o0 Y## S0i#n AIn-#p#n-#n" Non?E@#(%"i+# 3i!#("o!B............................. . 4.... T#o0 Y## S0i#n AIn-#p#n-#n" Non?E@#(%"i+# 3i!#("o!B............................. . 4.4 Co!po!a"# S"!%("%!#......................................................................................... 4 7.0 5ENERAL ENVIRONMENT ANALYSIS.................................................................... 7 7.1 Po$i"i(s............................................................................................................. 7 7.2 E(onomi(s....................................................................................................... 7 7. So(ia$............................................................................................................... &0 7.& T#(0no$o'i#s................................................................................................... &0 10.0 TAS< ENVIRONMENT ANALYSIS........................................................................&1 10.1 Ri+a$!y amon' Comp#"in' Fi!ms...................................................................&1 10.2 Po"#n"ia$ #n"!y o2 N#1 Comp#"i"o!s...............................................................&2 10. Po"#n"ia$ 3#+#$opm#n" o2 S%)s"i"%"# P!o-%("s..............................................&2 10.& Ba!'ainin' Po1#! o2 S%pp$i#!s.......................................................................& 10.5 Ba!'ainin' Po1#! o2 B%y#!s...........................................................................& 11.0 S8OT ANALYSIS............................................................................................... &5 12.0 TO8S ANALYSIS............................................................................................... &6 1 .0 RATIO ANALYSIS............................................................................................... &4 1 .1 Li/%i-i"y Ra"io............................................................................................... &4 1 .1.1 8o!,in' Capi"a$...................................................................................... &4 1 .1.2 C%!!#n" Ra"io ......................................................................................... &4 1 .1. >%i(, Ra"io ............................................................................................ &7 1 .2 Ass#" Mana'#m#n" Ra"io...............................................................................&7 .......................................................................................................................... &7 1 .2.1 A+#!a'# Co$$#("ion P#!io-......................................................................&7 1 .2.2 A((o%n" R#(#i+a)$# T%!no+#! ................................................................&7 1 .2. In+#n"o!y T%!no+#! ................................................................................ &7 1 .2.5 To"a$ Ass#" T%!no+#! .............................................................................50 1 . P!o2i"a)i$i"y Ra"io........................................................................................... 50 .......................................................................................................................... 50 1 . .1 5!oss P!o2i" Ma!'in.................................................................................50 .......................................................................................................................... 51 =Pa'#

1 . .2 Op#!a"in' P!o2i" Ma!'in..........................................................................51 1 . . N#" P!o2i" Ma!'in.................................................................................... 51 1 . .& R#"%!n on Ass#"...................................................................................... 51 .......................................................................................................................... 52 ......................................................................................................................... 52 1 . .5 R#"%!n on E/%i"y.................................................................................... 52 1 .& L#+#!a'# Ra"io.............................................................................................. 52 1 .&.1 3#)" Ra"io ............................................................................................. 52 1 .&.2 3#)" E/%i"y Ra"io................................................................................... 52 .......................................................................................................................... 52 1 .&. Tim# In"#!#s" Ea!n#- ATIEB......................................................................5 1&.0 STRATE5IC 3IRECTION..................................................................................... 55

ALIRAN IHSAN RESOURCES BERHAD

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1.0 COMPANY PROFILE Aliran Ihsan Resources Berhad (AIR Berhad) is a subsidiary of MMC Corporation Berhad and it is an investment holding company. AIRB was listed on the Main Board of the Bursa Malaysia ecurities Berhad on !" March #$$". %he AIRB group of companies is principally involved in the water treatment industry. It provides a wide spectrum of water related service including operations and maintenance to rehabilitation and restoration wor&s through its subsidiaries and associated companies. AIRB is one of the largest suppliers treated water in Malaysia' with a portfolio of !( water treatment plants in the districts of )ohor Bahru' Batu *ahat' Muar' +luang and egamat in the tate of )ohor as well in %aiping and ,unung emanggol in the tate of *era&. AIRB ,roup of companies principally comprises of Aliran -tara dn Bhd.'

outhern .ater Corporation dn Bhd and its subsidiaries / outhern .ater %echnology dn Bhd and outhern .ater 0ngineering dn Bhd' its two associate companies namely 01uiventures dn Bhd and trategi %egas (M) dn Bhd. %he water treatment plants in the tate of )ohor are managed by its water treatment company outhern .ater Corporation dn. Bhd. ( .C). Aliran -tara dn Bhd (A- B) was incorporated to manage the emanggol .ater %reatment *lant and operations and maintenance of the ,unung

%aiping 2eadwor&s in *era&. %wo other treatment plants under the AIR ,roup are run by associated companies 01uiventures dn Bhd and trategi %egas (M) dn Bhd. .C is engaged in .ater treatment' rehabilitation of water treatment plants and construction of water wor&s. .hile' outhern .ater 0ngineering dn Bhd ( .%) is in construction wor&s' speciali3ing in water related construction pro4ects. .ith over #$ years of e5perience in operating water treatment plants' AIR Berhad has established itself as a leading 6perations 7 Maintenance private operator which continues to deliver high standard of services that complement the country8s vision towards efficient water management for the people. AIR Berhad has also established alliances with both domestic and international strategic partners and is more than ready to continuously deliver 1uality services.
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In addition' AIR received an image change when the water molecule was selected as AIR9s new logo. It is an image of a large sphere' the o5ygen atom' connected to two smaller spheres that represent hydrogen atoms in a visualisation of the chemical symbol for water / 2#$. It carries a &ey message that the Company is analytical and innovative in its approach to business' and as resilient as water which can ta&e many forms: as a li1uid' solid ice and vapour or gas that can combine with many other elements in virtually limitless permutations. 1.1 Company Vision %o be the trusted leader in the regional water sector. Company Mission %o consistently offer best total solutions to the water sector and to serve the best interests of the company and sta&eholders. 1. Co!po!a"# Co!# Va$%#s C & Customer ;ocus A & Absolute Integrity N & i<novation and continuous learning D & =edication to result delivery O & 6neness and teamwor& 1.' S"!a"#(i) O*+#)"i,#s Ma5imi3e shareholder value ervice e5cellence to sta&eholders >ead in value innovation Be the preferred employer

1.2

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1.-

Finan)ia$ Ris. Mana(#m#n" O*+#)"i,#s an/ Po$i)i#s %he company is e5posed to a variety of financial ris&s and the overall ris& management ob4ective is to ensure that the company creates value for its shareholders whilst minimi3ing the potential adverse effects on the performance. %he company does not use derivative financial instruments to hedge its ris&s and trade in financial instruments during the financial year. %he main ris&s arising from the company9s financial instruments are credit ris&' interest rate ris&' li1uidity ris& and cash flow ris&.

1.-.1

C!#/i" Ris. Credit ris& arises when sales are made on deferred credit terms. %he company9s credit ris& is concentrated on a single customer' yari&at Air )ohor dn. Bhd. (? A)@)' and the terms of payments are stated in the concession agreements with A). Any late or nonA payment may have an adverse impact on the cash flow andBor profits of the company.

1.-.2

In"#!#s" Ra"# Ris. %he company is e5posed to interest rate ris& mainly from its fi5ed deposits and borrowings. %here is no formal hedging policy in respect to interest rate e5posure. %he interest rate ris& is monitored on an ongoing basis and the company endeavors to &eep the e5posure at an acceptable level.

1.-.

Li0%i/i"y Ris. %he company practices prudent li1uidity ris& management by maintaining sufficient cash and through an ade1uate amount of committed credit facilities to meet the company9s operating and financial re1uirements for foreseeable future.

1.-.'

Cas1 F$o2 Ris. %he company reviews its cash flow position regularly to manage its e5posure to fluctuations in future cash flow associated with its monetary financial instruments.

1.3

Iss%# o4 S1a!#s an/ D#*#n"%!#s =uring the financial year ended C! =ecember #$!!' the company increased its issued and paidAup share capital from RM#C('DD!'E"" to RM#(F'GCE'CE# via the issuance of #G'D"G'FCG new ordinary shares of RM!.$$ each upon the conversion of Redeemable Convertible -nsecured >oan toc&s. %he company authori3ed ordinary shares of RM!
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each for !'$$$'$$$'$$$. %he company has not issued any debentures during the financial year. 1.3.1 S1a!# Op"ions <o options have been granted by the company to any parties during the financial year to ta&e up unissued shares of the company. <o shares have been issued during the financial year by virtue of the e5ercise of any option to ta&e up unissued shares of the company. As at the end of the financial year' there were no unissued shares of the company under options. 1.3.2 Di,i/#n/s %he dividend declared and paid by the company are as followsH In respect of the financial year ended C! =ecember #$!!' single tier first interim dividend per share net of ta5 D."$ sen on #CG'!#$'G$C ordinary shares' declared on !" April #$!! and paid on C! May #$!!. %he amount dividend net of ta5 is RM#$'!""'$$$ 1.5 6!o%p Co!po!a"# S"!%)"%!#

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1.7 Boa!/ o4 Di!#)"o!s8

CHAIRMAN NON;INDEPENDEN< NON;E=ECU<IVE DIREC<OR

IBhg. =ato9 .ira yed Abdul )abbar bin yed 2assan

AUDI< COMMI<<EE

Non;In/#p#n/#n" Non; In/#p#n/#n" Non;E>#)%"i,# E>#)%"i,# Di!#)"o!? 1.7.1 Di!#)"o! YB1(. Da"o8 9i!a Sy#/ A*/%$ :a**a! IBhg. =atu& 24Hassan 2asni bin 2arun S#nio! In/#p#n/#n" Di!#)"o!

*in

Non;In/#p#n/#n" Non; E>#)%"i,# Di!#)"o!

In/#p#n/#n" Non;

Sy#/ E>#)%"i,# Di!#)"o!

0n. Bahari bin 2am3ah

IBhg. =ato9 .ira IM. %eng&u yed Abdul =ato9 )abbar eri bin yed 2assan' Malaysian' aged G#' was 2asmuddin %eng&u 6thman appointed as a nonAindependent Chairman of Aliran Ihsan Resources Berhad on !" March #$!$. IBhg. =ato9 .ira yed Abdul )abbar holds a Bachelor of 0conomics cience degree in degree from -niversity of .estern Australia and a Master9s of .ira

IBhg. =ato9 Mohd <or bin Idrus

Mar&eting from -niversity of <ewcastleA-ponA%yne' -nited +ingdom. IBhg. =ato9 yed Abdul )abbar was the Chief 05ecutive 6fficer of the +uala >umpur Commodity 05change from !ED$ to !EE(' the 05ecutive Chairman of the Malaysia
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Monetary 05change from !EE( to !EED and the 05ecutive Chairman of the Commodity and Monetary 05change of Malaysia from !EED to #$$$. IBhg. =ato9 .ira yed Abdul )abbar is the Chairman of MAR=0C Berhad' *adiberas <asional Berhad' %radewinds *lantation Berhad' %radewinds (M) Berhad' MMC Corporation Berhad and Mala&off Corporation Berhad and a director of tar *ublications (Malaysia) Berhad and +A; Investment Ban& Berhad. 2e has attended all seven (G) Board meetings for the financial year ended C! =ecember #$!!. IBhg. =ato9 .ira yed Abdul )abbar does not hold any interests in the securities of the Company or its subsidiaries nor has he any family relationship with any =irector andBor ma4or shareholder of the Company or any conflict of interest with the Company. 1.7.2 YB1(. Da"%. H+ Hasni *in Ha!%n IBhg. =atu& 24 2asni bin 2arun' Malaysian' aged "F' was appointed to the Board of =irectors of Aliran Ihsan Resources Berhad on G <ovember #$$D and is a member of the Audit Committee and <omination and Remuneration Committee. IBhg. =atu& 24 2asni is a member of the Malaysian Institute of Accountants. 2e holds a Masters degree in Business Administration from -nited tates International -niversity' an =iego' California and a Bachelor of Accounting (2onors) degree from -niversity of Malaya. IBhg. =atu& 24 2asni held several senior positions in the Accountant ,eneral9s 6ffice from !ED$ to !EEF. 2e was the enior ,eneral Manager of the Investment =epartment at the 0mployees *rovident ;und from !EEF to #$$!' and the Managing =irector of R2B Asset Management dn Bhd from #$$! until #$$(. 2e then 4oined =RBA2IC6M Berhad as ,roup Chief ;inancial 6fficer until #$$( and 4oined MMC as the ,roup Chief 6perating 6fficer in )anuary #$$G until ;ebruary #$$D' prior to his appointment as the Chief 05ecutive 6fficer Malaysia' MMC Corporation Berhad in March #$$D. 6n C May #$!$' =atu& 24 2asni assumed the position of the ,roup Managing =irector of MMC Corporation Berhad. IBhg. =atu& 24 2asni sits on the Boards of MMC Corporation Berhad' Jelan Berhad' Mala&off Corporation Berhad' )ohor *ort Berhad' MMC 0ngineering ,roup Berhad and several private limited companies. IBhg. =atu& 24 2asni attended all seven (G) of the Board meetings held for the financial year ended C! =ecember #$!!. IBhg. =atu& 24 2asni does not hold any interests in the securities of
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the Company or its subsidiaries nor has he any family relationship with any =irector andBor ma4or shareholder of the Company or any conflict of interest with the Company. 1.7. YM. <#n(.% Da"o8 S#!i Hasm%//in <#n(.% O"1man IM. %eng&u =ato9 eri 2asmuddin %eng&u 6thman' a Malaysian' aged "$' was eri 2asmuddin is the Chairman of the <omination and appointed to the Board of =irectors of Aliran Ihsan Resources Berhad on !D <ovember' #$$F. IM. %eng&u =ato9 Remuneration Committee and a member of the Audit Committee. 2e is a member of %as& ;orce on Islamic ;inance for >abuan I6;C' Member of )awatan&uasa *emantauan dan *engawasan yari&at )aminan *embiayaan *erniagaan Berhad and Investment Committee Member of AmanahrayaAR0I%. IM. %eng&u =ato9 eri 2asmuddin holds a Bachelor of >aws (2ons) from -niversity of Malaya and was admitted to the Bar in !EDG. 2e is a practicing lawyer and is currently the principal partner of Messrs 2isham' obri 7 +adir' 2is areas of e5pertise include the various e5pects of Islamic ban&ing and finance' corporate ban&ing and pro4ect financing' corporate matters' corporate Muamalat Islamic ban&ing and litigation as well as matters relating to yariah. 2e sits on the boards of a number of companies' including Ban& Muamalat Malaysia Berhad' Institut )antung <egara dn. Bhd.' 2 + Corporate Advisory 7 Consultancy' Rang&aian 2otel eri Malaysia dn Bhd and Amanah I&htiar Malaysia. IM. %eng&u =ato9 eri 2asmuddin has attended all seven (G) of the Board meetings held for the financial year ended C! =ecember #$!!. 2e does not hold any interests in the securities of the Company or its subsidiaries nor has he any family relationship with any =irector andBor ma4or shareholder of the Company or any conflict of interest with the Company. 1.7.' YB1(. Da"o8 Mo1/ No! *in I/!%s IBhg. =ato9 Mohd <or bin Idrus' Malaysian' aged "E' was appointed to the Board of =irectors of Aliran Ihsan Resources Berhad on #( March #$!#. IBhg. =ato9 Mohd <or is a member of the Board of 0ngineers Malaysia. 2e holds a Bachelor of cience degree in 0ngineering (Civil) from underland *olytechnic' -nited +ingdom. IBhg. =ato9 Mohd <or held several senior positions in RenongB-0M ,roup of Companies from !EDE to #$$". 2e was the enior *ro4ect 0ngineer with *>B Berhad' Managing =irector of Cement Industries Malaysia Berhad (CIMA)' *utra Berhad and -0M Builders Berhad
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and the Chief 05ecutive 6fficer of +eretapi %anah Melayu Berhad. 2e then 4oined +ien 2uat Construction as Chief 05ecutive 6fficer in #$$( and subse1uently 4oined MMC 0ngineering ,roup Berhad as the =irector of Rail *ro4ects in #$$G until present. IBhg. =ato9 Mohd <or sits on the Board of Jelan Berhad. IBhg. =ato9 Mohd <or does not hold any interests in the securities of the Company or its subsidiaries nor has he any family relationship with any =irector andBor ma4or shareholder of the Company nor any conflict of interest with the Company. 1.7.En. Ba1a!i *in Ham@a1 0nci& Bahari bin 2am3ah' Malaysian' aged FE was appointed to the Board of =irectors of Aliran Ihsan Resources Berhad on #! <ovember #$$(. 0nci& Bahari is the Chairman of the Audit Committee and is a member of the <omination and Remuneration Committee. 0nci& Bahari 4oined Arab Malaysian Merchant Ban& Berhad as a enior *ortfolio Management 6fficer upon his graduation in !EDE and is responsible for managing the ban&9s institutional funds. 2is other tas&s include analysing and conducting inAdepth studies on public listed companies' liaising with stoc&bro&ers on share trading with a view in ensuring good returns for the clients. In !EEF' he 4oined Business ;ocus dn Bhd as enior Manager in Business and Corporate =evelopment. ;rom !EE(A#$$$' he was the Assistant ,eneral Manager in Business =evelopment with Island 7 *eninsula Berhad' a company involved in property development and controlled by *ermodalan <asional Berhad' the nation9s biggest trust fund manager. *erumahan <egara Berhad as a In year #$$$' he 4oined yari&at enior ,eneral Manager in Business and Corporate

=evelopment' a company wholly owned by the Ministry of ;inance Incorporated' tas&ed to build 1uality and affordable houses for the hardcore poor and low income families. In year #$$"' 0nci& Bahari ventured into private business and is principally involved in advisory and consultancy wor&s. 0nci& Bahari graduated with a Bachelor of Business Administration (;irst Class 2onours) from 6hio -niversity in the -nited tates of America. 2e also holds a =iploma in Investment Analysis from -niversiti %e&nologi MARA. 0nci& Bahari sits on the Board of several private limited companies. 2e has attended all seven (G) of the Board meetings held for the financial year ended C! =ecember #$!!. 2e does not hold any interests in the securities of the Company or its
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subsidiaries nor has he any family relationship with any =irector andBor ma4or shareholder of the Company or any conflict of interest with the Company.

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1.A

Mana(#m#n" <#am

2.0

6ENERAL ENVIRONMEN< ANALYSIS ,eneral environment analysis describes a framewor& of macro environmental factors used in the environmental strategies. %his general environmental analysis primarily consists of four primary factors' which are politicalBlegal' economic' socioAcultural' and technologies. %hese four sections describe the e5ternal environmental factors a firm must understand to effectively compete in a specific mar&et. 2.1 Po$i"i)a$ 6bviously' most company is influenced by its environment. ;urthermore' the stability of a political system is a real important aspect for most firms. ince Malaysia politics is
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stable and this factor affects and influenced Aliran Ihsan Resources Berhad (AIRB) to remain as the third largest of supplier treated water in Malaysia. *olitical deal with the governmental policies which has a great influence to the economic in a country. AIRB and others private operators in this industry has been given special tariff by the government. %he tariff is different from one state to another. Moreover' ;ederal ,overnment is allocating RM C$$ million for replacement of water pipelines and sewage to improve water supply and sewage system and almost all the states are receiving either loans or funds for water services infrastructure development. It shows that the si3e of government budget is important aspect to maintain water treatment industry. In addition' there are support received from +ementerian %enaga' %e&nologi 2i4au =an Air (+0%2A)' uruhan4aya *er&hidmatan Air <egara ( *A<)' *engurusan Aset Air Berhad (*AAB)' )626R tate ,overnment' )ohor tate 0conomic *lanning -nit' Badan +awalselia Air )ohor' *era& tate ,overnment and >embaga Air *era& that help AIRB stay remain and competitive among private operators in )ohor Bahru state as well in *era& tate. *olitical and legal factors are here regarded as a unit. %hey refer to framewor& given by politics. Besides' law enforcement is crucial to further strengthen water industry in Malaysia. Moreover' legal factor can affect how a company operates' its costs and the demand for its products. %here are several law such as .ater Industry Act #$$(' ewage Industry Act !EEC (Act "$D)' .ater (>icensing) Regulations #$$G' .ater ervice Industry (*ermit) Rules #$$G. 2.2 E)onomi) 0conomical factor is crucial for the industry development. %hese factors have ma4or impacts on how business operates and ma&e decisions. Achieving sustainable growth will continuously help to create value for AIRB sta&eholders and ma5imi3e shareholders9 value. AIRB posted a revenue of RMDC.$ million for the year ended C! =ecember #$!!' an increase of RM!$.( million or !F.(K compared to the previous year9s revenue of RMG#.F million. %he increase in revenue was mainly attributable to construction' operation and maintenance (?67M@) income from newly secured businesses in )ohor and *era&.
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ervice

ervice Industry

Moreover' restructuring of the water service sector with the ob4ective of creating an efficient and sustainable industry is well underway. .ater operators in )ohor' Mela&a' <egeri embilan' *erlis and *enang have completed the migration to the new regime. ;ull migration of the remaining states will be completed under the !$ th Malaysian *lan from #$!!A#$!". -nder the !$th Malaysian *lan' the water service industry will move towards efficiency in operation and management to achieve the tariff setting mechanism to allow full cost recovery' integration of water supply and sewage service. According to the 0conomic Report #$!!B#$!#' Malaysia9s gross domestic product (,=*) for #$!! was ".!K and the ,overnment pro4ects the economic growth to pic& up in #$!# with ,=* e5panding between "K and (K. %he construction sector is one of the &ey drivers and is e5pected to grow at a stronger pace of GK in #$!# as larger infrastructure pro4ects and housing construction activities pic& up. ;urthermore' in Budget #$!#' the ;ederal ,overnment has allocated appro5imately RM#." billion to upgrade water supply infrastructure and the supply of clean water especially to rural areas.

2.

So)io )%$"%!a$ ocial factors deal with social issues regarding the values' ideals' opinions and the culture of mar&et participants. Mar&et participants can be employees' customers or suppliers. Aliran Ihsan Resources Berhad (AIRB) shares the spirit and conviction of their parent company' MMC Corporation Berhad to apply the principles of social responsibility as part of its corporate citi3enship. %hroughout #$!!' a number of C R program and activities were carried out' in line with Bursa Malaysia9s C R ;ramewor&' namely Mar&etplace' .or&place' 0nvironment and Community. It involves all level of employees. AIRB organised a ,round Brea&ing ceremony for the *hase # emangar .ater %reatment *lant construction pro4ect in +ota %inggi' )ohor. +ey sta&eholders from *engurusan Aset Air Berhad (*AAB)' tate of )ohor and ;ederal government officials as well as representatives of the local community were present at the event. %he event was
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an effective platform for fostering closer relationship with AIRB sta&eholders. %he ,roup had made every effort to ensure a safe' inclusive and stimulating wor&ing environment for its employees and ensured that employee relations align with the organi3ational ob4ectives. %he ,roup set up of AIR 2 0 .or&ing Committee and three subAcommittees to raise the awareness level on 6ccupational afety and 2ealth and enhance professionalism as well as safeguard the employees9 welfare. Access to clean water has emerged as one of the most important challenges in the #!st century and AIR is at the forefront of this challenge. #$!! is a significant year which saw the ,roup9s continuous efforts to safeguard the 1uality of the water source. -pon the discovery of algae presence at %asi& embrong' AIRB resolve the issues by way of releasing fish fry (baby fish) into the la&e to control the algae problem. %his initiative was an environmentally friendly measure to mitigate the spread of algae blooms affecting the embrong Barat water treatment plant' which had slowed down production of clean water. AIRB community activities also include the contribution of cash grants and inA &ind donations to deserving parties. %he ,roup also continued to assist the Iayasan <urul Ia1een (a nonAprofit organisation) to carry out welfare activities that cover underprivileged communities and education. 2.' <#)1no$o(y %echnological factors is visible and can be validates easily as it is more tangible. It include ecological and environment aspects' such as R7= activity' automation' technology incentives and the rate of technological change. %ransfer of the latest technology for the water sector in #$!$ came as a hardware and software pac&age A CMM ' aimed at providing AIR operations with a constantly updated computer database of information about ongoing maintenance operations. 6perators operate the e1uipment in water and wastewater treatment plants in order to purify drin&ing water' remove domestic and industrial pollutants and solids from
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the water' and return clean water' bioAsolids and air bac& to the environment. Clean' safe water is essential for life and good health. .ater and wastewater treatment plants remove impurities' solids' organisms' chemicals' and to5ins from water and wastewater so that it is safe for people' animals' and the environment. .ater plants treat water and distribute it to customers. .astewater plants then return the clean water to rivers' la&es' and oceans. -sing modern technology' water and wastewater treatment plants help provide clean water for use in homes and industries' help prevent disease' protect fish and wildlife from pollution' and protect the environment. .astewater entering a treatment plant goes through several processes that eliminate critical pollutants. 6perators monitor meters and gauges that tell whether the e1uipment is operating correctly. .astewater treatment plant wor&ers operate and maintain the pumps' engines' and generators that move the sewage or wastewater through primary' secondary and tertiary processes. 6perators ensure that the water or wastewater has been properly disinfected. %hey collect samples of water or wastewater and perform routine laboratory tests.

.0 <ASB ENVIRONMEN< ANALYSIS *orter9s five competitive forces model for industry analysis is how a standard tool used by academics and practitioners when conducting strategic management studies. ;or AIR Berhad use these models to develop the strategies to e5pand their business. According to *orter' the nature of competitiveness in a given industry can be viewed as a composite of five forces but for AIR Berhad' F forces including rivalry among competing firms' potential entry of new competitors' bargaining power of suppliers and bargaining power of consumers. .1 Ri,a$!y amon( Comp#"in( Fi!ms ;or AIR Berhad' the main competitors that have been identified by our group are Indah .ater +onsortium and *unca& <iaga (M) dn Bhd where they have their own brand as well as they also operating in water treatment plants. Mar&et si3e and growth prospects in

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competitors is always most intense in stagnating mar&ets. %hus' rivalry among competing firms is 1i(1. .2 Po"#n"ia$ #n"!y o4 N#2 Comp#"i"o!s *otential for new competitors is $o2 because government have been developed %he Act and regulations to encourage competition in the water industry and foster innovative recycling pro4ects and dynamic efficiency in the provision of water and wastewater services. In addition' the regulations set out strict licensing rules to ensure that drin&ing water meets standards set by the Ministry of 2ealth' uruhan4aya *engurusan Air <egara ( *A<) and .orld 2ealth 6rgani3ation.' that recycled water is 8fit for purpose8' and that all services are delivered in a safe' reliable manner with minimal environmental impacts. . Ba!(ainin( Po2#! o4 S%pp$i#!s %his group of businesses provides supports to a company to allow it to run its operations' which can be in the forms of raw materials' human resource' monies' technology' and information. uppliers within the AIR Berhad business environment also include the research institutes and independent firms supplying research services and technologies. Because of the high capital nature of the business' AIR Berhad is also dependent on the public and private capital mar&ets. upportive government' which provides funding during certain stages of the company business lifeAcycle' could help mediate the effects of high cost of service development within the industry. %hus' bargaining power of supplies is 1i(1. .' Ba!(ainin( Po2#! o4 B%y#!s Customers are those who pay for services offered by a company. Customers of AIR Berhad include both individuals and businesses. %he survivability and sustainability of a company in a mar&et is influenced by the customers9 ability to control down the price of a company service' demand higher 1uality or more services from the company' and play it off against its competitors. Bargaining power of buyers is $o2 because AIR Berhad is a monopoly in operating water treatment plants in the districts of )ohor Bahru' Batu *ahat'

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Muar' +luang and

egamat in the state of )ohor as well as in %aiping and ,unung

emanggol in the state of *era&.

'.0 S9O< ANALYSIS %he .6% analysis is a planning tool used to understand the trengths' .ea&nesses' 6pportunities' and %hreats involved in a pro4ect or in a business. It involves specifying the ob4ective of the business or pro4ect and identifying the internal and e5ternal factors that are supportive or unfavorable to achieving that ob4ective. .6% is often used as part of a strategic planning process. '.1 S"!#n("1 AIR Berhad is one of the largest suppliers treated water in Malaysia' with a portfolio of !( water treatment plants in the districts of )ohor Bahru' Batu *ahat' Muar' +luang and egamat in the tate of )ohor as well in %aiping and ,unung emanggol in the tate of *era&.
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IFAS EFAS

S<REN6<H AIR Berhad is one of the largest suppliers treated water in Malaysia' with a portfolio of !( water treatment plants in the districts of )ohor Bahru' Batu *ahat' Muar' +luang and egamat in the tate of )ohor as well in %aiping and ,unung emanggol in the tate of *era&. Aliran Ihsan Resources Berhad (AIR Berhad) has core competence. .ith over #$ years of e5perience in operating water treatment plants' AIR Berhad has established itself as a leading 6perations 7 Maintenance private operator which continues to deliver high standard of services that complement the country8s vision towards efficient water management for the people. AIR Berhad has achieved a number of successes' including securing of a new 67M contract to operate and manage the ,unung emanggol and %aiping 2eadwor&s water treatment plants in *era&. %he ,roup is also pleased to be appointed by *engurusan Aset Air Berhad as the main contractor for *ac&age ! (construction of treatment wor&s) of the upgrading' rehabilitation and e5tension of the e5isting emangar water treatment plant in +ota %inggi' )ohor. %he upstream e5pansion is an auspicious starting point and strengthens AIR Berhad

9EABNESSESS 2igh cost structure in maintenance and continuous improvement programs which include replacement and refurbishment of water pumps' mechanical components and electronic instrumentation to enhance operational efficiency for all water treatment plants. AIR Berhad is an operating water treatment plants that have many competitors in the same industries' which are Indah .ater +onsortium and *unca& <iaga (M) dn Bhd. Revenues are up slightly and AIR Berhad becoming a technology follower' ta&ing too long to get product innovations to mar&et and other technology area. *lant aging and may be losing competitiveness as rivals upgrade facilities. Luality no longer will be distinctive competence. %hroughout #$!!' AIR Berhad 67M business continue to face various challenges' from raw water source up to meeting customers9 e5pectation.

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Aliran Ihsan Resources Berhad (AIR Berhad) has core competence. .ith over #$ years of e5perience in operating water treatment plants' AIR Berhad has established itself as a leading 6perations 7 Maintenance private operator which continues to deliver high standard of services that complement the country8s vision towards efficient water management for the people.

AIR Berhad has achieved a number of successes' including securing of a new 67M contract to operate and manage the ,unung emanggol and %aiping 2eadwor&s water treatment plants in *era&. %he ,roup is also pleased to be appointed by *engurusan Aset Air Berhad as the main contractor for *ac&age ! (construction of treatment wor&s) of the upgrading' rehabilitation and e5tension of the e5isting emangar water treatment plant in +ota %inggi' )ohor. %he upstream e5pansion is an auspicious starting point and strengthens AIR Berhad to resolve and commitment to grow the ,rouBp9s businesses to ma5imise shareholders9 value.

Ac1uired companies' which are outhern .ater Corporation dn Bhd' outhern .ater %echnology -tara dn Bhd. dn Bhd' outhern .ater 0ngineering dn Bhd and Aliran

AIR Berhad gratefully ac&nowledges the support and confidence received from +ementerian %enaga' %e&nologi 2i4au dan Air' <egara' *engurusan Aset Air Berhad' )ohor >embaga Air *era&. uruhan4aya *er&hidmatan Air tate ,overnment' )ohor tate

0conomic *lanning -nit' Badan +awalselia Air )ohor' *era& tate ,overnment and

%reated water 1uality from the AIR Berhad plants successfully met the drin&ing water standards set by the Ministry of 2ealth' uruhan4aya *engurusan Air <egara ( *A<) and .orld 2ealth 6rgani3ation.

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'.2

9#a.n#ss#s 2igh cost structure in maintenance and continuous improvement programs which include replacement and refurbishment of water pumps' mechanical components and electronic instrumentation to enhance operational efficiency for all water treatment plants. AIR Berhad is an operating water treatment plants that have many competitors in the same industries' which are Indah .ater +onsortium and *unca& <iaga (M) dn Bhd. Revenues are up slightly and AIR Berhad becoming a technology follower' ta&ing too long to get product innovations to mar&et and other technology area. *lant aging and may be losing competitiveness as rivals upgrade facilities. Luality no longer will be distinctive competence. %hroughout #$!!' AIR Berhad 67M business continue to face various challenges' from raw water source up to meeting customers9 e5pectation.

'.

Oppo!"%ni"i#s <A;%A and other regional trade pacts opening doors to mar&ets that offer enormous potential. %he largest wastewater operator is Indah .ater +onsortium Malaysia (I.+) that handles sewerage and wastewater treatment all over peninsular Malaysia' e5cept for the tate of +elantan and the capital of )ohor state. .hile' AIR Berhad operating in )ohor state.

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In Budget #$!#' the ;ederal ,overnment has allocated appro5imately RM#." billion to upgrade water supply infrastructure and the supply of clean water especially to rural areas.

,oing forward' AIR Berhad will pursue a strategy of e5pansion into the water related and sewerage business segments' including construction activities within the domestic and regional mar&ets. .here AIR Berhad' now is loo&ing at opportunities to operates in Mietnam' %hailand and Indonesia.

AIR Berhad has ta&es the opportunities to manage the ,unung %aiping 2eadwor&s water treatment plants in *era&.

emanggol and

%he .orld %rade 6rgani3ation (.%6) is the only global international organi3ation dealing with the rules of trade between nations.

'.'

<1!#a"s Indah .ater +onsortium and *unca& <iaga (M) dn Bhd have enormous resources and developing global presence. Indah .ater +onsortium mar&et mature and e5tremely competitive' vigilant consumers demand high 1uality with low price in safe' environmentally sound products. 0nvironmentalism being reflected in laws on pollution and energy usage.

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-.0

<O9S ANALYSIS

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3.0 3.1

RA<IO ANALYSIS Li0%i/i"y Ra"ios 3.1.1 C%!!#n" Ra"io C%!!#n" ass#"s C%!!#n" $ia*i$i"i#s

Y#a! 2011 #(F'C#!'$$$ !"'"DC'$$$ N !(.E# times

Y#a! 2010 #!G'CDG'$$$ CC'!EC'$$$ N (."" times

3.1.2

C%i). Ra"io C%!!#n" ass#"s & In,#n"o!y C%!!#n" Lia*i$i"i#s

Y#a! 2011 #(F'C#!'$$$ / #'F#('$$$ !"'"DC'$$$ N !(.D! times

Y#a! 2010 #!G'CDG'$$$ / "#G'$$$ CC'!EC'$$$ N (."C times

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3.2

L#,#!a(# Ra"ios 3.2.1 D#*";"o;<o"a$ Ass#"s Ra"io

<o"a$ D#*" <o"a$ Ass#"s

Y#a! 2011 !('!$('$$$ C"D'G"F'$$$ N F.FEK

Y#a! 2010 CC'ED"'$$$ CC$'F#E'$$$ N !$.#EK

3.2.2

D#*";"o;E0%i"y Ra"io <o"a$ D#*" <o"a$ S"o).1o$/#!s8 E0%i"y

Y#a! 2011 !('!$('$$$ CF#'(FD'$$$ N F.G$K

Y#a! 2010 CC'ED"'$$$ #E('FFF'$$$ N !!.F(K

2. = P a ' #

3.

A)"i,i"y Ra"ios 3. .1 In,#n"o!y <%!no,#! Cos" o4 sa$#s A,#!a(# in,#n"o!y *a$an)#s

Y#a! 2011 FD'CG$'$$$ !'FG('"$$ N C#.G( times 3. .2 Fi>#/ Ass#"s <%!no,#! Sa$#s Fi>#/ Ass#"s

Y#a! 2010 #"'DG('$$$ "#C'"$$ N FE.FC times

Y#a! 2011 D#'EEE'$$$ C'EFF'$$$ N #!.$F times

Y#a! 2010 G#'CGE'$$$ !$'"!('$$$ N (.DD times

3. .

<o"a$ Ass#"s <%!no,#! Sa$#s <o"a$ Ass#"s

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Y#a! 2011 D#'EEE'$$$ C"D'G"F'$$$ N $.#C times 3. .' A))o%n" R#)#i,a*$# <%!no,#! N#" C!#/i" Sa$#s A,#!a(# A))o%n" R#)#i,a*$#

Y#a! 2010 G#'CGE'$$$ CC$'F#E'$$$ N $.## times

Y#a! 2011 D#'EEE'$$$ !C'$FC'"$$ N (.C( times 3. .A,#!a(# Co$$#)"ion P#!io/ A))o%n" R#)#i,a*$# <o"a$ C!#/i" Sa$#s D 3- /ays

Y#a! 2010 G#'CGE'$$$ #C'#DE'"$$ N C.!!times

Y#a! 2011 !C'C(E'$$$ ##G'CE" N "E days

Y#a! 2010 !#'G!D'$$$ !ED'#EE N (F days

3.'

P!o4i"a*i$i"y Ra"ios 3.'.1 6!oss P!o4i" Ma!(in 6!oss P!o4i" Sa$#s

27 = P a ' #

Y#a! 2011 CF'(#E'$$$ D#'EEE'$$$ N F!.G#K 3.'.2 N#" P!o4i" Ma!(in P!o4i" Ea4"#! in)om# "a>F R#,#n%#s

Y#a! 2010 F"'"$C'$$$ G#'CGE'$$$ N (#.DGK

Y#a! 2011 CD'"$!'$$$ D#'EEE'$$$ N F(.CEK 3.'. R#"%!n on <o"a$ Ass#"s EROAF

Y#a! 2010 CF'CC$'$$$ G#'CGE'$$$ N FG.FCK

P!o4i" *#4o!# in)om# "a> G Finan)# )os" A,#!a(# "o"a$ ass#"s

Y#a! 2011 F('C(F'$$$ O (!'$C"'$$$) !GE'CGG'$$$ N #".#GK

Y#a! 2010 FC'#!#'$$$O (#'$F('$$$) !("'#!F'"$$ N #F.E#K

3.'.'

R#"%!n on S"o).1o$/#!s8 E0%i"y EROEF N#" In)om# <o"a$ S"o).1o$/#!s8 E0%i"y

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Y#a! 2011 CD'"$!'$$$ CF#'(FD'$$$ N !!.#FK

Y#a! 2010 CF'CC$'$$$ #E('FFF'$$$ N !!."DK

5.0 S<RA<E6IC DIREC<ION

AIR Berhad has mapped into a strategic direction aimed at addressing those challenges in future. AIR Berhad will pursue a strategy of e5pansion into the water related and sewerage business segments' including construction activity within the domestic and regional mar&ets. Consistent with the aim to continuously create value for their sta&eholders' the AIR Berhad will continue to focus on achieving sustainable growth. %owards this end' the company has mapped its strategic business direction and charted the growth for the coming years. AIR Berhad growth plan is centered on four main strategies namely' mar&et penetration' mar&et development' product development and diversification. ince service 1uality is crucial for the company sustainability' AIR Berhad has strengthened wor& practice and establishes cost management measure to ma&e the wor&force and processes more efficient and effective. AIR Berhad are pleased with the successes achieved in their mar&et penetration and diversification strategies with the e5pansion of our 6perations 7 Maintenance (67M) activities at ,unung emanggol and %aiping 2eadwor&s in *era& as well as their entry into water infrastructure construction business with the award of the emangar .ater %reatment *lant (.%*) construction pro4ect in )ohor. %hey are fully cogni3ant that these early success are only the beginning of a challenging as well as rewarding business venture ahead. %he ,roup will remain robust and agile in capitalising on the demand of the dynamic development of the water sector' both in the country and in the region. Moreover' AIR Berhad embar&ed on a number of initiatives aimed at ensuring alignment of employees9 activities with the company vision and mission. AIR Berhad
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employees9 have now become more resultAoriented and are wellAgeared to meet new challenges since individual performance were matched against the business targets but also their rewards were also lin&ed to their individual and ,roup +*Is. ;urthermore' good corporate governance is fundamental to the ,roup9s competitiveness' growth and sustainability and will significant contribute towards the achievement of the ,roup9s strategic goals' whilst maintaining investors9 confidence. In order to elevate its mar&et position' AIR Berhad may rely on mergers 7 ac1uisition (M7A). ince the company vision is to becoming one leading water and sewage companies in the region' so the company will be loo&ing at companies that will provide synergy and can help company to capture more growth from the regional mar&et. >ast but not least' AIR Berhad is now loo&ing at mar&ets such Indonesia' Mietnam and %hailand where a lot opportunities for future company e5pansion.

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:HM CONSOLIDA<ION BERHAD

7.0 COMPANY PROFILE

)2M Consolidation Berhad is a public listed company on M0 =AL Mar&et and its subsidiary companies provides oneAstop engineering solutions to its customers' from the design and development of microAelectronic components (?M0C@) to the complete design' fabrication and assembly of tooling9s for the manufacturing of these M0Cs. )2M ,roup is currently focused on the design' development and provision of the following categories of M0Cs which are components related to 2igh Brightness >ight 0mitting =iode (?2B >0=@): fine pitch connector pins and other electronics component. %he strength behind )2M ,roup is in its design and development capabilities of comple5 M0C. %he ,roup would normally be involved from the conceptual phase to the designing and ultimately commissioning of the components for mass production at optimal cost efficiency. %he cutting edge capabilities in designing have enabled the ,roup to not only penetrate multinational corporations (?M<Cs@) but also allowed the ,roup to enlarge its customer base to cover larger mar&et applications. M0C are catered to a wide base of industries such as electronic' telecommunication' semiconductor and automobile. )2M ,roup consistently conforms to stringent 1uality management. As credentials to its efforts' the ,roup obtained the I 6 E$$!A#$$$ certification in #$$!' shortly after its incorporation as well as recognition from customers. In #$$( the ,roup obtained I 6 !F$$! certification for establishing internationally recogni3ed environmental management within the ,roup. %he ,roup had also obtained
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recognition for its compliance with I 6B%

!(EFE that specifies the 1uality system

re1uirements for the designBdevelopment' production and installation services of automotive related products' in line with the e5panded activity of )2M in providing assembly 7 testing of automotive lighting. :HM )onso$i/a"ion B#!1a/ pai/;%p )api"a$ on 2011 is RM 12? 00?000.00 21i$# "1#i! a%"1o!i@#/ s1a!# )api"a$ is 2-?000?000.00 7.1 Company Vision %o continuously ac1uire latest technologies in design and development by &eeping abreast with global developments for the advancement of Microelectronics Components (?M0C@) and benefits of our customers. 7.2 Company Mission %o provide oneAstop engineering solution to our customers' from the design and development of M0C to the complete design' fabrication and assembly of tooling9s for the manufacturing of these M0C. %o continuously enhance our Research and =evelopment (?R7=@) capabilities to enable us to offer 1uality M0C to our customers at competitive pricing. %o continuously strengthen the core competencies of the ,roup through onAgoing improvement on the employees9 s&ills and &nowledge. 7. Di,i/#n/ <o dividend has been declared by )2M Consolidation Berhad since the end of the previous financial year. %he directors do not recommend any dividend payment for the financial year. 7.' R#s#!,#s an/ P!o,isions %here are no material transfers to or from reserves or provisions during the financial year. 7.S1a!# Capi"a$ an/ D#*#n"%!#s =uring the financial year' )2M Consolidation Berhad did not issue any share or debenture and did not grant any option to anyone to ta&e up the unissued shared of the company.
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7.3

Boa!/ o4 Di!#)"o!8s

7.5 7.5.1

Boa!/ o4 Di!#)"o!8s P!o4i$# Da"o8 <an Bin( S#n( EE>#)%"i,# C1ai!man D Mana(in( Di!#)"o!F =ato9 %an +ing eng was appointed to the Board on !C April #$$(. 2e graduated with a Bachelor of cience =egree in Mechanical 0ngineering from <ational Cheng +ung -niversity of %aiwan in !EDC. 2e started his career as an engineer with Intel %echnology in !EDF and thereafter in 2ewlett *ac&ard in !EDE. *rior to starting his own business n !EE"' he was a senor production engineer in charge of optoelectronic production in 2ewlett *ac&ard dn' Bhd.
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7.5.2

Ooi Y#o. Ho). EE>#)%"i,# Di!#)"o!F 6oi Ieo& 2oc& was appointed to the Board on ! April #$$( and serves as a member of the remuneration committee. 2e is currently in charge of the R7= and 0ngineering =epartment of Morrissey %echnology and graduated with a Bachelor of 0ngineering =egree ma4oring in Mechanical 0ngineering from -niversity of trathclyde' -nited +ingdom in !ED( and subse1uently obtained a =iploma in 0lectrical 0ngineering from City ,uilds (C7,)' -nited +ingdom in !EE$. 2e started his career as a senior process engineer with <orthem %elecom in !EDG. 2e has more than !" years of e5perience in engineering and production of M0C from multinational corporations in the -nited tates of America' China and Malaysia.

7.5.

<an C1in Hon( EE>#)%"i,# Di!#)"o!F 2e was appointed to the Board on !C April #$$( and started his career as a Machining %echnician with Mifa 0ngineering in !EDE. 2e 4oined Brusia engineering as a production supervisor in !EE# and was promoted to production manager in !EEF. After that he 4oined ;orward Matri5 as the general manager in charge of factory operation. *rior to 4oining Morrissey in eptember #$$! as its plant manager' and he has !$ years wor&ing e5perience in design and fabrication of tools and dies and " years wor&ing e5perience in production.

7.5.'

C1#a1 C1oon 61## EE>#)%"i,# Di!#)"o!F 2e was appointed to the Board on !! =ecember #$$G. *rior to his appointment to the Board' he is the senior administration manager in this company. 2e graduated with a =iploma in 0lectronic engineering from %un&u Abdul Rahman College in !EDF. 2e started his career as an assistant engineer with <ational emiconductor dn. Bhd in !ED". %hen he 4oined Cintronic Mar&eting as its Administrator manager in charge of the
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company operation until !EE". %he he 4oined Allied tamping Corporation as its ales director overseeing the company business and currently he is in charge of the entire administration department of )2M ,roup. 7.5.Lo1 C1y# <#i. EIn/#p#n/#n" Non;E>#)%"i,# Di!#)"o!F 2e is senior independent nonAe5ecutive director and was appointed to the Board on !C April #$$(. 2e serves as the chairman of audit committee' remuneration committee and nomination committee. 2e graduated from -niversity of Malaya' +uala >umpur with a bachelor of Accounting (2onours) in !EDF. 2e is presently the managing partner of *+; Chartered Accountants and Managing =irector of Interesources %a5 Advisory. 2e is a member of both the Malaysian Institute of Accountants and the Malaysian Institute of %a5ation. 2e started his career as an auditor in a Chartered Accountants firm in !ED" and proceeded to set up his own accountancy and audit firm in !EEF. 7.5.3 <#o1 Y## S1i#n EIn/#p#n/#n" Non;E>#)%"i,# Di!#)"o!F he was appointed to the Board on !C April #$$( and serves as a member of audit committee' remuneration committee and nomination committee. Malaysian Institute of Accountants. he graduated with a Bachelor of accounting from -niversity -tara Malaysia in !EE! and is a member of the he started her career in the audit division of he was 4oining *rinsipte& he leads prinsipte& *ricewaterhouse Coopers prior to 4oining >eader -niversal 2oldings as the corporate planning and investment manager for seven years. Corporation Berhad in year #$$C as the group financial controller. affairs department. corporate planning. 7.5.5 <#o1 Y## S1i#n EIn/#p#n/#n" Non;E>#)%"i,# Di!#)"o!F 2e was appointed to the Board on !! =ecember #$$G. 2e serves as a member of the Audit Committee and <omination Commmitte. 2e graduated with a =octor of Medicine from +aohsiung Medical -niversity in %aiwan in !EGF. %hen he was employed by the ,eneral 2ospital of *enang until !ED$ where he entered into a partnership to open a clinic until !EEE. In !EE"' he became a state assemblyman in the state legislative
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corporation Berhad ,roup accounts and finance team' legal department and corporate he is actively involving in the *rinsipte& corporation operations and

assembly of penang' a position he held until ;ebruary #$$D. ;or the period from !EEE to #$$F' he serves his team as an e5ecutive councilor of the penang state government. In addition' in august #$$F' he was appointed as a chairman of the penang port commission' a position he held until the ends of #$$D. 7.7 Co!po!a"# S"!%)"%!#

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A.0 6ENERAL ENVIRONMEN< ANALYSIS

In order for a firm to effectively compete in an industry' an analysis of its specific industry must be underta&en. %his is done to provide the firm with a description of the elements in society that directly affect the industry and the direction managers must ta&e to implement appropriate strategies to survive. %his general environmental analysis primarily consists of four primary factors' which are politicalBlegal' economic' socioA cultural' and technologies. %hese four sections describe the e5ternal environmental factors a firm must understand to effectively compete in a specific mar&et. A.1 Po$i"i)s Malaysian politics is stable and this factor affects and influenced the )2M consolidation Berhad to remain in manufacturing and engineering of microAelectronic components. %hese factors also ma&e the company freely to e5pand their business to all parties' especially in the electronics industry. *olitics is an important factor in helping the company to remain in the industry entered by them. in addition' the government also provides funds to the )2M consolidation company and indirectly it can help the company to stay competitive with other competitors. As a company that is subsidi3ed by the government' this company have strong financial and have potential to be developed globally. A.2 E)onomi)s %he strong 0lectric 7 0lectronic (070) industry in Malaysia is a result of the ,overnmentPs initiatives to promote labor intensive and e5portAoriented industries. ince the establishment of the first semiconductor plant in *enang in !EG#' Malaysia has become a ma4or global manufacturing hub for the electrical and electronics industry' as attested by the large number of multinational companies (M<Cs) from - A' )apan'
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0urope' %aiwan and +orea which have chosen Malaysia as their base. %his issue become as advantages of )2M consolidation Berhad to e5pand their business. In addition' Malaysia also has lots of import and e5port of electronic component called a semiconductor in which the matter is to help )2M Consolidation Berhad to achieve their goals and vision. .ith a stable economic structure' this company has the potential to go global and have the opportunity to e5port their goods abroad. A. So)ia$ MalaysiaPs consumer electronics devices mar&et' defined as the addressable mar&et for computing devices' mobile handsets and AM devices. %his factor leads the )2M Consolidation Berhad to growth. Mendors will continue to target products innovation to drive revenues' with growth areas including smart phones' noteboo&s and 2=%M. %he leading companies are now underta&ing R7= activities in the country to support their global and Asian mar&ets. )2M Consolidation Berhad was ta&e advantages from this activities to move forward with bring new changes in the electronic component manufacturing industry to meet consumer needs' especially for emerging technologies. %hese consumers9 social factors help companies to become more responsive to the demands around which society or the consumer is now more focused on current technologies such as the use of smart phones' the use of 2=%Ms and laptops. A.' <#)1no$o(i#s Current technology that evolving ma&es the electronic industry increasing in term of components manufacturing to meet consumer needs. %his occurs because of a rapidly growing technology ma&es a lot of e1uipment re1uire electronic components to ma&e it wor& properly li&e smart phones' cameras' television' radio and other e1uipment that re1uires the support of electronic components. )2M Consolidation Berhad is responsible for producing high 1uality electronic components for the purpose of supporting the latest technology. %he company also serves as liaison to current technology in which' if don9t have electronic components' technologies such as digital camera will not wor& properly.

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10.0<ASB ENVIRONMEN< ANALYSIS

*orter ;ive forces Models of competitive analysis is a widely used approach for developing strategies in many industries. ;or )2M Consolidation Berhad in electronic industries' the companies use these models to develop the strategies to e5pand their business. ;ive forces models including rivalry among competing firms' potential entry of new competitors' potential development of substitute products' bargaining power of suppliers and bargaining power of consumers. 10.1 Ri,a$!y amon( Comp#"in( Fi!ms ;or )2M Consolidation Berhad' the main competitors that have been identified by our group is ;u4itsu and *restige %echnology company where they have their own brand as well as they also supply electronic components for the goods produced by them. %hese two companies offer the latest electronic services and not 4ust focused on electronics manufacturing only but they also provide consulting services and provides a range of new products that highlight green elements. ;u4itsu offers wide range of microelectronics components and also provides widest products such as I% and telecommunication. ;u4itsu have partnerships with other companies that have a big name in the electronics industry in which they also collaborated in producing a high 1uality product. %his company has their own products and their brands are very well &nown in Asia. .hile' *restige %echnology Company are speciali3e in manufacturers in providing a oneAstop solution to the emiconductor' >C=' *harmaceutical and 0lectronic Manufacturing Industries. *restige %echnology Company is a multinational company and has regular customers and also established in the electronic industry. o' the rivalry among competing firms is 1i(1.

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10.2 Po"#n"ia$ #n"!y o4 N#2 Comp#"i"o!s Microeconomics teaches that profitable industries attract new competition until the downward pressure on prices has s1uee3ed all the economic profit from the firms. <ew firms in an industry put downward pressure on prices' upward pressure on costs and an increased necessity for capital e5penditures in order to compete. %he less threat there is from firms entering the industry' the more stable a firm9s profits are. 0lectronics industry is the industry that has a largest number of new competitors will enter the industry. %his led to many companies e5perienced a decline due to the entry of new competitors because they offering lower prices than e5isting companies. In addition' the new company also uses a largeAscale promotion to attract customers to switch to their company. %his happened to the company ony in which result from the entry of new competitors in the mar&et that cause they have a decrease in the demand for products. Besides that' e5isting customers are not loyal to their suppliers where they will turn to companies offering more services at a cheap price as well as various advantages to be gained by them. %his rapidly growing technology ma&es o' consumers more sensitive to price comparison and 1uality offered by the suppliers where they will prioriti3e cost savings compared with the cost of investing in other things. the potential entry of new competitors is 1i(1. 10. Po"#n"ia$ D#,#$opm#n" o4 S%*s"i"%"# P!o/%)"s Many companies in the electronics industry is e5periencing competition in producing high 1uality products in which it can save costs and get high returns. It is also e5perienced by all industries in the world. %he Company will focus on the production of new products that are not available in the current mar&et to ma&e them as a choice for many customers. Manufacturing a variety of new products and also have a best 1uality are important to attract customers to believe the strength of the product.

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An attractive price of substitutes is the price of substitute9s acts as a ceiling to the price of the sub4ect product. An attractive price of a substitute acts inhibits an industry from reaching its profit potential. Increasing the substitute can leads to increased witching costs to consumers can Monetary costs pressure to increase the 1uality of the sub4ect product.

come in the form of monetary costs or lifestyle switching costs.

effectively increase the price of the substitute products whereas lifestyle costs are more sub4ective and difficult to identify. %here are many electronics products in the mar&ets that customers can choose the best to be their suppliers. )2M Consolidation Berhad is one of the best electronic companies that have been choosing by many customers for their electronics products. o' the potential development of substitute products is 1i(1.

10.' Ba!(ainin( Po2#! o4 S%pp$i#!s *owerful suppliers capture more of the value for themselves by charging higher prices' limiting 1uality or services' or shifting costs to industry participants. *owerful suppliers' including suppliers of labor' can s1uee3e profitability out of an industry that is unable to pass on cost increases in its own prices. )2M Consolidation Berhad is not a monopoly in electronic industry because this company competes with many electronic companies such as ;u4itsu and *anasonic. %he supplier groups depend heavily on the industry for its revenues because this company only produce and manufacturing of microelectronic components (M0C). uppliers should protect the industry through reasonable pricing and assist in activities such as R7=. speciali3es in these fields. uppliers offer products that are differentiated which are )2M Consolidation Berhad offer only M0C and it prove that this company o' the bargaining power of suppliers is 1i(1.

10.- Ba!(ainin( Po2#! o4 B%y#!s Buyers have more power to choose which company that they li&e to get services because there are many companies in electronic industries. Buyer can choose in term of lower price and high 1uality product or high price and high 1uality products. )2M Consolidation Berhad offer M0C products and this company speciali3e in this product. Buyers that need the M0C product can choose this company but if they need to find out

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more electronic services' they have right and power to find any companies that provides more services than )2M Consolidation Berhad. Buyers are powerful if they have negotiating leverage relative to industry participants' especially if they are price sensitive' using their clout primarily to pressure price reductions. %he industry9s products are standardi3ed or undifferentiated. If buyers believe they can always find an e1uivalent product' they tend to play one vendor against another. Buyers face few switching costs in changing vendors. %he 1uality of buyers9 products or services is little affected by the industry9s product where 1uality is very much affected by the industry9s product: buyers are generally less price sensitive. Most sources of buyer power apply e1ually to consumers and to businessAtoAbusiness customers. >i&e industrial customers' consumers tend to be more prices sensitive if they are purchasing products that are undifferentiated' e5pensive relative to their incomes and of a sort where product performance has limited conse1uences. %he ma4or difference with consumers is that their needs can be more intangible and harder to 1uantify. of buyer is 1i(1. o' the bargaining power

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11.0S9O< ANALYSIS

S<REN6<HS

9EABNESSESS

!. Involved from the conceptual phase to the !. )2M Consolidation Berhad is a electronic designing and ultimately commissioning of the components for mass production at optimal cost efficiency. #. %he cutting edge capabilities in designing penetrate multinational corporations manufacturing company that have many competitors in same industries' it could leave it wea& in some areas due to the huge span of control. that have a good reputation. competitive advantage' the manufacturing of M0C. arise. <HREA<S %his could ma&e them slow to diversify into other sectors should the need

have enabled the ,roup to not only #. 0lectronic industries have many companies (?M<Cs@) but also allowed the ,roup to C. %he organi3ation is dependent on a main enlarge its customer base to cover larger mar&et applications. C. Consistently conforms to stringent 1uality management OPPOR<UNI<IES

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!. %he growing of technologies helps )2M !. Competitors offer variety of services not Consolidation Berhad to produce more products because of demands of M0C. #. )2M Consolidation Berhad is a specific in M0C products only. #. Competitors are established and more stable than )2M Consolidation Berhad. recession occurs' the electronic industries become slowly and demand of the product also decrease. Berhad has the

subsidiaries company by government and it C. .hen economic ma&es this company become more stable than other competitors. C. )2M Consolidation opportunities to e5pand their business globally because they have customers abroad. 12.0<O9S ANALYSIS S"!#n("1s Q =esign and development
05ternal ;actors

Internal ;actors

9#a.n#ss#ss Q )2M Consolidation Berhad have many competitors in same industries' it could leave it wea& in some areas due to the huge span of control. Q 0lectronic industries have many companies that have a good reputation. Q %he organi3ation is dependent on a main competitive advantage' the manufacturing of M0C. %his could ma&e them slow to diversify into other sectors should the need arise.
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capabilities of comple5 M0C. Q %he cutting edge capabilities in designing have enabled the ,roup to not only penetrate multinational corporations but also allowed to enlarge its customer base to cover larger mar&et applications. Q Consistently conforms to stringent 1uality management

Oppo!"%ni"i#s

SO S"!a"#(i#s

9O S"!a"#(i#s Q %ry to plan to produce products that do not have competition in the mar&et and diversify e5isting services. Q 2ighlights the advantages e5isting products and significantly reduce the vulnerability of the product by increasing the manufacturing of 1uality products

Q %he growing of technologies Q *lans to produce more products helps the company to produce to fulfill needs and demands of more products because of customers. demands of M0C. Q )2M is a subsidiaries Q Increase mar&eting capabilities company and ma&es company competitors. Q )2M has the opportunities to e5pand their business globally because they have customers abroad. <1!#a"s Q Competitors offer variety of services not specific in M0C products only. Q Competitors are established and more stable than )2M Consolidation Berhad. Q .hen economic recession occurs' the electronic industries become slowly and demand of the product also decrease. S< S"!a"#(i#s Q *roduce high 1uality product and increasing the benefits of products than other company. Q trategic plans to overcome the problems when economic recession occurs. Q Build customer trust by providing the best service and ta&e all their feedbac& and ma&e improvements. to e5pand product globally. reputation to remain competitive in the electronic industry become more stable than other Q Maintain the stability and

9< S"!a"#(i#s Q 0mphasis on mar&ets in Asia and subse1uently e5tended it nationwide. Q =iversified mar&eting strategy to strengthen the financial position.

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1 .0RA<IO ANALYSIS

1 .1 Li0%i/i"y Ra"io 1 .1.1 9o!.in( Capi"a$ Y#a! 2011 C%!!#n" Ass#" & C%!!#n" Lia*i$i"i#s RM ##'C$#'#C" / RM !C'!"C'(#$ H RM A?1''3?11 .1.2 C%!!#n" Ra"io Y#a! 2011 C%!!#n" Ass#" C%!!#n" Lia*i$i"y RM ##'C$#'#"C RM !C'!"C'(#$ H 1.50 "im#s Y#a! 2010 C%!!#n" Ass#" C%!!#n" Lia*i$i"y RM !E'G$E'#"" RM !#'DFF'"(" H 1.- "im#s Y#a! 2010 C%!!#n" Ass#" & C%!!#n" Lia*i$i"i#s RM !E'G$E'#"" / RM !#'DFF'"(" H RM 3?73'?3A0

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1 .1.

C%i). Ra"io Y#a! 2011 C%!!#n" Ass#" & In,#n"o!y C%!!#n" Lia*i$i"y RM ##'C$#'#"C / RM G'$D!'EF( RM !C'!"C'(#$ Y#a! 2010 C%!!#n" Ass#" & In,#n"o!y C%!!#n" Lia*i$i"y RM !E'G$E'#"" / RM G'E(E'EFE RM !#'DFF'"(" H 0.A1 "im#s

H 1.13 "im#s 1 .2 Ass#" Mana(#m#n" Ra"io 1 .2.1 A,#!a(# Co$$#)"ion P#!io/ Y#a! 2011 A))o%n" R#)#i,a*$# Ann%a$ C!#/i" Sa$#s D 3RM !C'E(#'CF( RM (F'($C'"E" B C(" H 5A /ays 1 .2.2 A))o%n" R#)#i,a*$# <%!no,#! Y#a! 2011 C!#/i" Sa$#s A))o%n" R#)#i,a*$# RM (F'($C'"E" RM !C'E(#'CF( H '.3 "im#s In,#n"o!y <%!no,#! Y#a! 2011

Y#a! 2010 A))o%n" R#)#i,a*$# Ann%a$ C!#/i" Sa$#s D 3RM E'(!F'F## RM FE'#FC'#$# B C(" H 51 /ays

Y#a! 2010 C!#/i" Sa$#s A))o%n" R#)#i,a*$# RM FE'#FC'#$# RM E'(!F'F## H -.12 "im#s Y#a! 2010

1 .2.

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CO6S In,#n"o!y RM "D'#$('$#E RM G'$D!'EF( H 7.22 "im#s

CO6S In,#n"o!y RM F"'E(F'C"( RM G'E(E'EFE H -.55 "im#s

1 .2.' Fi>#/ Ass#" <%!no,#! Y#a! 2011 Sa$#s <o"a$ Fi>#/ Ass#" RM (F'($C'"E" RM !G'C!C'($$ H .5 "im#s 1 .2.- <o"a$ Ass#" <%!no,#! Y#a! 2011 Sa$#s <o"a$ Ass#" RM (F'($C'"E" RM CE'(!"'DC" H 1.3 "im#s 1 . P!o4i"a*i$i"y Ra"io 1 . .1 6!oss P!o4i" Ma!(in Y#a! 2011 6!oss P!o4i" Sa$#s RM ('CEG'"(( Y#a! 2010 6!oss P!o4i" Sa$#s RM C'#GD'DF( Y#a! 2010 Sa$#s <o"a$ Ass#" RM FE'#FC'#$# RM CD'!$C'E$G H 1.2A "im#s Y#a! 2010 Sa$#s <o"a$ Fi>#/ Ass#" N RM FE'#FC'#$# RM !D'CEF'("# H 2.37 "im#s

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RM (F'($C'"E" N A.AI

RM FE'#FC'#$# N 3.5I

1 . .2 Op#!a"in( P!o4i" Ma!(in Y#a! 2011 EBI< Sa$#s RM !'G!"'!F# RM (F'($C'"E" N 2.3-I 1 . . N#" P!o4i" Ma!(in Y#a! 2011 N#" In)om# Sa$#s RM !'D"!'F$F RM (F'($C'"E" N 2.75I 1 . .' R#"%!n on Ass#" Y#a! 2011 N#" In)om# <o"a$ Ass#" RM !'D"!'F$F RM CE'(!"'DC" H '.35I Y#a! 2010 N#" In)om# <o"a$ Ass#" RM !'EE('CEF RM CD'!$C'E$G H-.2'I Y#a! 2010 N#" In)om# Sa$#s RM !'EE('CEF RM FE'#FC'#$# N '.0-I Y#a! 2010 EBI< Sa$#s RM #'($D'E$C RM FE'#FC'#$# N -. I

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1 . .- R#"%!n on E0%i"y Y#a! 2011 N#" In)om# <o"a$ E0%i"y RM !'D"!'F$F RM #('F(#'#!" N 5.0I 1 .' L#,#!a(# Ra"io 1 .'.1 D#*" Ra"io Y#a! 2011 <o"a$ D#*" <o"a$ Ass#" RM !C'!"C'(#$ RM CE'(!"'DC" N .2I 1 .'.2 D#*" E0%i"y Ra"io Y#a! 2011 <o"a$ D#*" <o"a$ E0%i"y RM !C'!"C'(#$ RM #('F(#'#!" H 'A.51I Y#a! 2010 <o"a$ D#*" <o"a$ Ass#" RM !C'FEC'$E( RM CD'!$C'E$G N -.'1I Y#a! 2010 <o"a$ D#*" <o"a$ E0%i"y RM !C'FEC'$E( RM #F'(!$'D!! N -'.7I Y#a! 2010 N#" In)om# <o"a$ E0%i"y RM !'EE('CEF RM #F'(!$'D!! N 7.11I

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1 .'.

<im# In"#!#s" Ea!n#/ E<IEF Y#a! 2011 EBI< <o"a$ E0%i"y RM !'G!"'!F# RM #('F(#'#!" H 3.'7 "im#s Y#a! 2010 EBI< <o"a$ E0%i"y RM #'($D'E$C RM #F'(!$'D!! H 10.3 "im#s

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1'.0S<RA<E6IC DIREC<ION )2M Consolidation Berhad drives a concept of Investment Company. =ue to the investment made in the electronics industry is ma&ing the company grow in line with the current technology. %he company is also setting up two fractions where the first company &nown as Morrissey %echnology dn. Bhd and the second is &nown as the )ingheng 0lectronic *recision %echnology. Morrissey %echnology dn. Bhd focusing on the design and manufacturing of precision Microelectronic component (M0C) in which they mar&et these components to companies that produce electrical appliances such as smart phone companies' television companies' camera companies and other potential companies in the current mar&et. %heir capabilities are e5posed to the varied )apaneseB+orea style 2igh peed tooling design B fabrication environment' in particular related to miniature electronic components. %hey have e5tensive e5perience in endAtoA end e5pectations' with full capabilities to design from startAtoAfinish products for the handAphone' automotive and telecommunication industries sub components. Additionally' the company also maintains original design manufacturer (6=M) of high brightness light emitting diode by )ingheng 0lectronic *recision %echnology. )2M consolidation also ma&ing improvements on their vision to establish annual ob4ectives is a =ecentrali3ed that8s directly activity involves all managers in an organi3ation. As evidence' on the annual report presented by the company' there were improvements made by the company to achieve its ob4ectives and vision of the company in which they ta&e into account the current needs and current mar&et in the electronics industry. 6b4ectives of the organi3ation are also clearly states and e5plain in detail the main goals to be achieved by the organi3ation. )2M also improve the 1uality of products from time to time. %he strategies underta&en by companies to improve the 1uality of the product is to perform analysis of the mar&et to &now the wants and
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needs of the user. Additionally' the company also ta&e immediate steps to train and recruit employees who have e5pertise in the design and manufacture products according to benchmar&ing and standards.

,lobal economic growth in #$!# is e5pected to be wea& due to the faltering 0uropean Mar&ets and )2M Consolidation Berhad was prepared to buc&le down' wor& together and weather any possible storm as we continue to build on their strengths and focus on improving their mar&et position. )2M also tried to loo&ing beyond #$!!' which they are li&e to reiterate their steadfast commitment in creating a stronger platform for the group. )2M intend to stay focused on their core competencies and aim to emerge in a stronger position for years to come. )2M also strongly believe that with proper management and support from all parties' )2M prospects for long term and sustainable growth remain sound. %he company also performs product improvements by implementing reengineering e5isting products and adding other products and services that are less in the mar&et. Mar&eting strategy underta&en by the company will also help the company in e5panding their mar&ets overseas. %he companies is more focused on the local mar&et and ta&e advantage of opportunities as companies are subsidi3ed by the government to e5pand its mar&et to overseas. %his puts the company &nown in the electronics industry. Although the electronic industries has lots of competition' this company still superior because they practice and prioriti3e their main products and services of M0C. %hey provide the best service to users and their customers and they are e5perts in this field. *ricing strategy also underta&en by )2M Consolidation Berhad because price is important to ensure that the company able to survive in competitive mar&et. *rice offered by the company is very affordable in which it ta&es into account the current mar&et price. ,overnment gives funds n this industry and causes this company dare to offer a very affordable price to their customers. %he government also imposed price controls on goods to be e5ported out' price fi5ing' price discrimination' minimum price' unit pricing' and price advertising.
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In addition' )2M ma&e strategic planning with giving authority to the Board Committee members to investigate and report on any areas of improvement for the betterment of the group. )2M also performing in depth study on ma4or variances and deliberating irregularities in the Board meeting' and Audit Committee meeting so as to identify the causes of the problems and formulate solutions to resolve them. 6ne of &ey success of this company is they always &eeping the management informed in the development of action plan for enhancing system of internal control and allowing various management personnel to have access to important information for better decision ma&ing.

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1-.0

CONCLUSION

6ur group was made analysis of two company which different industries. %he companies are Aliran Ihsan Resources Berhad in .ater treatment industries and )2M Consolidation Berhad in 0lectronic Industries. ;rom our observation' both companies are subsidiaries by government and the companies also stable for <eelofa to ma&e investment. Based on ration analysis made by our group' we found that both company have good financial and it prove that both company are stable in term of their financial. Besides that' both company have improve their performance compared to past year performance. %heir paid up capital also increase if we compared to past year and both company have been increasing their revenue at least double. Based on our opinion' neelofa can choose both or either company that we have been analy3e because we believe that both company have financial stability based on the industries involved. In this case' both companies are different industries' so we cannot ma&e any assumption or comparison in different industries. 6ur group have ma&e a comparison for both company based on their *aidAup capital which are Aliran Ihsan Resources Berhad (AIRB) have RM#(F'GCE'CE# less than )2M Consolidation Berhad which have RM!#' C$$'$$$.$$. we suggest that neelofa should ma&e an investment in )2M because their paid up capital is more than AIRB. Besides that' even )2M have many competitors among them' the company still can survive and stay competitive to be the best company in electronic industries. Aliran Ihsan Berhad is a monopoly industry which means that the company did not have many competitors among them. 0ven the company does not have many competitors' their paidAup capital still less than other company that has many competitors and it can prove that )2M Consolidation Berhad is one of the best companies to choose and invest.

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As a conclusion' we have made a decision to choose )2M Consolidation Berhad to suggest to the <eelofa company because of the factors that have been analy3e before. Resources Berhad. o' we suggest that <eelofa should ma&e an investment in )2M Consolidation Berhad than Aliran Ihsan

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