(d) Your decision as to whether you would invest in the company or not, based on the analysis made.

You are

required to provide relevant reasons to support your decision. Reasons can be analysis you made and other sources

that might be relevant to be included.

Summary for the reasons of increased and decreased six components, three each from SOCI and SOFP
respectively.
Based on the analysis that we have made, the total assets decreased from RM861,360 to RM575,255 in 2018 and

the percentage decreasing is -33.20%. Next, the total liabilities also decreased from RM580,456 to RM256,281

in 2018. There is a decrement of RM324,175 that represents -55.85%, The total equity increased from RM280,904

to RM318,974 and the percentage increasing is 13.6%.

On the other point of view,

The decision whether to invest in the company or not.

Yes, we would invest in the Chemical Company of Malaysia Berhad.

Reasons to invest in the company.

One of the reasons that we choose to invest in the company is the increase of its assets which is ‘Property, plant

and equipment’. Items of property, plant and equipment are measured at cost less any accumulated depreciation

and any accumulated impairment losses. Depreciation is based on the cost of an asset less its residual value.

Significant components of individual assets are assessed, and if a component has a useful life that is different

from the remainder of that asset, then that component is depreciated separately. Depreciation is recognised in

profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property,

plant and equipment from the date that they are available for use. The assets which is ‘Property, plant and

equipment has increased from RM143,816 to RM175,568. There is an increment of RM31,752 which represents
22.08%. Therefore, when the assets of a company increased, that means the financial position of the company is

better than previous year.

Next, we choose to invest in the Chemical Company of Malaysia Berhad because it has a decreased in

total liabilities. One of the liabilities is “Loans and Borrowings’. The company has obtained a RM150.57 million,

3 years unsecured term loan at the rate of 4.70% per annum (2017: 4.70% per annum) which matured and fully

paid on 30 April 2018. On the same day of 30 April 2018, the company obtained and drawdown a new unsecured

term loan of RM98 million, with tenure period of 3 years at the rate of 5.25% per annum which matures on 30

April 2021. The company has obtained a RM150 million, 3 years unsecured term loan at the rate of 4.93% per

annum (2017: 4.93% per annum) which matured in December 2018. This unsecured term loan has been fully

settled on 18 December 2018. The liability of the company which is ‘Loans and Borrowings’ has decreased from

RM359,388 to RM41,695 and the percentage decreases is- 88.4%. Therefore, we will invest in this company.

The other reason that we choose to invest in this company is the increased of its revenue. Revenue is

measured based on the consideration specified in a contract with a customer in exchange for transferring goods

or services to a customer, excluding amounts collected on behalf of third parties. The total revenue of the company

has increased from RM370,709 to RM395,939 in the year 2018. There is an increment of RM25,230 that

represents 6.81%. One of the revenues is ‘Primary geographical markets in Indonesia’. This revenue has increase

from RM10,732 to RM11,055 and its percentage increases is 3.0%. Next, the ‘Primary geographical markets in

Singapore’ revenue also increase. Its increment is RM6,496 which is from RM23,687 to RM30,183 that

represents a percentage of 27.42%.

Based on the above reasons, we decided to invest in Chemical Company of Malaysia Berhad in order to

have a better profit.