1. To familiarize the students with the financial statements and subsequently able to apply the knowledge obtained in class. 2. To develop the ability to interpret and analyze the financial statements among the students. 3. To analyze and explain the interpretation of the ratios namely liquidity ratios, activity ratios, debt ratios, profitability ratios, and investment ratios.
GENERAL GUDELINES:
1. Each student will be assigned a group consists of FIVE (5) members for each group. Once the group members have been finalized, NO change of group members is allowed.
2. Each group must select two companies (2 years basis) within the same business sector from Main board of Bursa Malaysia for the analysis. The company will be selected from different industry sectors and NO group will replicate the same company.
3. The financial information relating to the companies can be downloaded from the following websites: http://www.klse.com.my/ http://www.klse-ris.com.my/ http://www.klse-ris.com.my/CDB/owa/cpsearch http://biz.thestar.com.my/marketwatch/ http://financeyahoo.com
Page 1 4. The background information and the annual reports regarding the company can also be accessed through their own company’s web page.
5. There is no strict format for the report but as a general guidance you can follow the following outlines:
Table of Contents 1-2 pages With pages numbering. Introduction and Background Information 1-2 pages Relating to the companies.
Finding 1) Comparison on the Profitability Ratios
On 2-year period basis, evaluate this two company’s financial performance 2-5 pages and indicate any improvement/deterioration in the performance of company.
Finding 2) Comparison on the Liquidity Ratios
On 2-year period basis, evaluate this two company’s financial performance 2-5 pages and indicate any improvement/deterioration in the performance of company.
Finding 3) Comparison on the Debt Ratios
On 2-year period basis, evaluate this two company’s financial performance 2-5 pages and indicate any improvement/deterioration in the performance of company.
Finding 4) Comparison on the Activity Ratios
On 2-year period basis, evaluate this two company’s financial performance 2-5 pages and indicate any improvement/deterioration in the performance of company.
Other Relevant Information
1-2 pages Current issues related to the companies. Conclusions and Recommendations From a point of view of an investor, is this company considered as a good 1-2 pages investment? Justify your recommendation. Bibliography 1 page Journals, books, articles, and etc as a reference. Appendix Attaches all relevant data sources regarding the companies e.g.; Annual Report, newspapers
6. The report must be typed using Microsoft Word and bind in A4 paper with 1.5 spacing throughout text (justify). NO hand written is accepted for the writings and graphs.
Page 2 7. Marks will be given for the clarity and quality of your explanation and discussion. Your professionalism in terms of the presentations of your analysis is heavily counted in the report. Any spelling mistakes or English grammatical error will be penalized.
8. The date of submission of a complete report of your group project on WEEK 12 BEFORE 5.00PM.
