FIN242 REPORT Group 3

FUNDAMENTALS OF FINANCE UITM
FINANCIA
LANALYS
ISREPORT
PREPA RED B Y:
AIMAN FARIS BIN NOOR HISHAM ALI
ADAM AFIQ BIN MOHD YAZID
MUHAMMAD AKMAL BIN NIRWAN
FARHAN HAIQAL AHMAD BIN ABDULLAH
ADAM ADLI BIN MOHAMMED SHAMSU
MUHAMMAD WAFI BIN MOHD HAZRINUDDIN

CONTENT
FOREWARD/ FINANCIAL SUMMARY
ABOUT US
INDUSTRY & COMPANY ANALYSIS

o INDUSTRY ANALYSIS
o PLAYERS IN THE INDUSTRY
o MARKET SHARE ANALYSIS
EXTRACTED FINANCIAL STATEMENT

o EXTRACTED BALANCE SHEET
o EXTRACTED INCOME STATEMENT
o FINANCIAL STATEMENT ANALYSIS
TREND ANALYSIS
o LIQUIDITY
o LEVERAGE
o ACTIVITY
o PROFITABILITY
o SUMMARY OF TREND ANALYSIS
COMPARATIVE ANALYSIS
o LIQUIDITY
o LEVERAGE
o ACTIVITY
o PROFITABILITY
o SUMMARY OF COMPARATIVE ANALYSIS
CONCLUSION
APPENDIX
F I N2 4 2 UI T M (i)
FINANCIAL
S U M M A R Y
Dutch Lady Milk Industries Berhad is a Malaysia-based dairy company. The
Company operates through the manufacturing and distribution of a range of dairy
products segment. It is engaged in providing specialized powders for infant and
growing children, liquid milk in different packaging formats and yoghurts. Its
products include Dutch Lady 123, Dutch Lady 456, Dutch Lady 6+, fresh milk, full
cream milk, low fat high calcium milk, chocolate flavored milk, strawberry flavored
milk, coffee flavored milk, kurma flavored milk, Dutch Lady marvel, Dutch Lady
frozen, Dutch Lady mini, juicy milk, professional full cream milk, eating and drinking
yogurt, family milk powder and Dutch Lady +protein. The Company markets its
products in a range of brands, such as Dutch Lady, Dutch Baby, Frisolac, Friso Gold
and Dutch Lady PureFarm.
In 2021, The company received RM1,133,733,000 in total net sales. The total
assets of the company amounted to RM 701,232,000 while the total liabilities of the
company amounted to RM 318,652,000. The company also has a total equity of RM
382,580,000. Lastly, the net profit of the company for the financial year ended in
2021 is RM 248,000,000.
This report dives deeper in the company’s liquidity, insolvency, profitability, and
activity.
ABOUT US
Dutch Lady Milk Industries Berhad is the subsidiary of Friesland Campina, one of the world’s largest dairy
cooperatives. We are a multinational company with a global presence and strong local advantage,
constantly evolving to strengthen our position as the leading dairy company in Malaysia. We are
continuously innovating in our efforts to nourish Malaysians with quality dairy nutrition to help them move
forward in life.
Dutch Lady Milk Industries Berhad (DLMI) was established in 1963 in Petaling Jaya, Selangor. For 58 years,
Dutch Lady Milk Industries Berhad (DLMI) have embraced the changing lifestyles of our consumers and
evolved to meet their nutritional needs better. Today, DLMI is a 600-strong company that offers an extensive
range of quality and delicious milk based dairy products, from formulated milk powder, yoghurt drinks to
fresh milk and UHT, distributed nationwide to help Malaysians stay nourished and healthy to help them
move forward in life.
Dutch Lady Milk Industries Berhad (DLMI) is a leading dairy company with a multinational management
framework that focuses on a strong local presence to remain close to our consumers in Malaysia. As one of
the leading dairy companies in Malaysia, we strive to continue providing better nutrition for the nation and to
continuously help build a stronger Malaysia for generations to come. This helps us fulfil our purpose of
Nourishing Our Planet and People in Every Stage of Life.
A N A L Y S I S
F I N2 4 2 UI T M
INDUSTRY ANALYSIS
Industry analysis is a market assessment tool used by businesses and analysts to understand the competitive
dynamics of an industry. It helps them get a sense of what is happening in an industry, e.g., demand-supply
statistics, degree of competition within the industry, state of competition of the industry with other emerging
industries, prospects of the industry considering technological changes, credit system within the industry, and
the influence of external factors on the industry.
Industry analysis, for an entrepreneur or a company, is a method that helps to understand a company’s position
relative to other participants in the industry. It helps them to identify both the opportunities and threats coming
their way and gives them a strong idea of the present and future scenario of the industry. The key to surviving in
this ever-changing business environment is to understand the differences between yourself and your
competitors in the industry and use it to your full advantage.
To start off, we look at the financial year ended 2019 of Dutch Lady Milk Industries Berhad. The company
received RM 1,066,662,000 in revenue. However, the company gained a reduced amount of revenue in the next
year with only RM 1,100,659,000. Then in 2021, the company increased its revenue to RM 1,133,733,000. This
shows that the company increases its’ net sales for each year since 2019 until 2021.
KEY PLAYERS
PLAYERS IN THE INDUSTRY
The main company chosen is Dutch Lady Milk Industries Berhad., The other companies in the same industry
are:
- Dutch Lady Milk Industries Berhad

- Frazer & Neave Holdings Berhad (F&N)
- Cocoaland Holdings Berhad
- Spritzer Berhad
COMPANY SALES IN 2021 (RM)

Dutch Lady Milk Industries Berhad 1,133,733,000
Frazer & Neave Holdings Berhad 4,130,872,000
Cocoaland Holdings Berhad 210,299,487
Guan Chong Berhad 3,923,297,392
Total Sales 9,398,201,879
MARKET SHARE
MARKET SHARE
Dutch Lady Milk Industries: 1,133,733,000 / 9,398,201,879 X 100 = 12.06%
Fraser & Neave Holdings Berhad: 4,130,872,000 / 9,398,201,879 X 100 = 43.95%
Cocoaland Holdings Berhad: 210,299,487 / 9,398,201,879 X 100 = 2.24%
Guan Chong Berhad : 3,923,297,392 / 9,398,201,879 X 100 = 41.75%
Dutch Lady Milk Industries Berhad has 12.06% of the market share of the industry. It has the second lowest
market share compared to other competitors. The company with the highest market share is Fraser & Neave
Holdings Berhad or F&N berhad.
FINANCIAL STATEMENTS
DUTCH LADY MILK INDUSTRIES BERHAD
BALANCE SHEET STATEMENT AS OF 31 DECEMBER 2019
RM
ASSETS
INVENTORIES 135,024,000.00
TRADE AND OTHER RECEIVABLES 112,852,000.00
PREPAYMENT 5,052,000.00
CASH AND BANK BALANCES 61,532,000.00
DERIVATIVE FINANCIAL ASSETS -
TOTAL CURRENT ASSETS 314,460,000.00
PROPERTY, PLANT AND EQUIPMENT 123,482,000.00

RIGHT-OF-USE ASSETS 3,977,000.00
INTANGIBLE ASSETS 1,675,000.00
TOTAL NON-CURRENT ASSETS 129,134,000.00
TOTAL ASSETS 443,594,000.00
TRADE AND OTHER PAYABLES 264,928,000.00

PROVISION 207,000.00
CURRENT TAX LIABILITIES 7,663,000.00
BANK OVERDRAFT 16,724,000.00
LEASE LIABILITIES 634,000.00
DERIVATIVE FINANCIAL LIABILITIES 1,887,000.00
TOTAL CURRENT LIABILITIES 292,043,000.00
LEASE LIABILITIES 340,000.00

DEFERRED TAX LIABILITIES 6,794,000.00
TOTAL NON-CURRENT LIABILITIES 7,134,000.00
TOTAL LIABILITIES 299,177,000.00
SHARE CAPITAL 64,000,000.00

RETAINED EARNINGS 80,417,000.00
TOTAL EQUITY 144,417,000.00
TOTAL EQUITY AND LIABILITIES 443,594,000.00
INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2019
RM
NET SALES 1,066,662,000.00

COST OF GOODS SOLD (661,942,000.00)
GROSS PROFIT 404,720,000.00
OTHER INCOME 3,371,000.00
DISTRIBUTION EXPENSES (168,191,000.00)
ADMINISTRATIVE EXPENSES (28,156,000.00)
OTHER EXPENSES (70,902,000.00)
RESULTS FROM OPERATING ACTIVITIES 140,842,000.00

INTEREST INCOME 455,000.00
FINANCE COSTS (3,697,000.00)
PROFIT BEFORE TAX 137,600,000.00

TAX EXPENSE (34,642,000.00)
NET PROFIT FOR THE FINANCIAL YEAR 102,958,000.00
BASIC AND DILUTED EARNINGS PER ORDINARY SHARE (SEN) 160.90

RM
ASSETS
PREPAYMENT 311,000.00
DERIVATIVE FINANCIAL ASSETS 2,000.00

INTANGIBLE ASSETS 957,000.00

BANK OVERDRAFT 16,705,000.00
LEASE LIABILITIES 2,893,000.00
DERIVATIVE FINANCIAL LIABILITIES 2,140,000.00


INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020
RM
NET SALES 1,100,659,000.00


INTEREST INCOME 683,000.00

TAX EXPENSE (24,148,000.00)

RM
ASSETS
PREPAYMENT 126,157,000.00
DERIVATIVE FINANCIAL ASSETS 258,000.00

INTANGIBLE ASSETS 8,469,000.00

BANK OVERDRAFT -
DERIVATIVE FINANCIAL LIABILITIES 158,000.00


INCOME STATEMENT FOR THE YEAR YEAR ENDED 31 DECEMBER 2021
RM
NET SALES 1,133,733,000.00


INTEREST INCOME 1,417,000.00

TAX EXPENSE (36,525,000.00)

TREND ANALYSIS
LIQUIDITY RATIO
CURRENT RATIO (CR)
2019: 314460000/292043000 = 1.08 times
2020: 288435000/324181000 = 0.89 times
2021: 482151000/306032000 = 1.58 times
It indicates that in 2019, for every RM 1, the firm has RM1.08 current assets and the firm has
enough current assets to cover for its current liabilities. Then in 2020, for every RM 1, the firm has
RM0.89 current assets and the firm has not enough current assets to cover for its current
liabilities. Finally in 2021, for every RM 1, the firm has RM1.58 current assets and the firm has
enough current assets to cover for its current liabilities. The firm has the highest current assets to
pays for its current liabilities in the year 2021.
QUICK RATIO (QR)
2019: (314460000-135024000)/292043000 = 0.61 times
2020: (288435000-151016000)/324181000 = 0.42 times
2021: (482151000-161055000)/306032000 = 1.05 times
It indicates that in 2019, for every RM1, the firm has RM0.61 current assets and the firm has not
enough current assets to cover for its current obligations. Then in 2020, for every RM1, the firm
has RM0.42 current assets and the firm has not enough current assets to cover for its current
obligations. Finally in 2021, for every RM1, the firm has RM1.05 current assets and the firm has
enough current assets to cover for its current obligations. The firm has the highest current assets
to pays for its current obligations in the year 2021.
NET WORKING CAPITAL (NWC)
2019: 314460000-292043000 = RM 22417000
2020: 288435000-324181000 = RM -35746000
2021: 482151000-306032000 = RM 176119000
It indicates that in 2019, the firm has RM 22417000 margin of safety, and the firm has sufficient
margin of safety will be able to meet its short-term obligations. Then in 2020, the firm has RM -
35746000 margin of safety, and the firm has insufficient margin of safety to will not be able to
meet its short-term obligations. Finally in 2021, the firm has RM 176119000 margin of safety, and
the firm has sufficient margin of safety will be able to meet its short-term obligations. The firm
has the highest margin of safety and will be able to meet its short-term obligations in 2021.
LEVERAGE RATIO
DEBT RATIO
2019: 299,177,000 / 443,594,000 X 100: 67.44%
2020: 332,265,000 / 498,845,000 X 100: 66.61%
2021: 318,652,000 / 701,232,000 X 100: 45.44%
It indicates that in 2019, 67.44% of the firm’s assets are financed by borrowing. Then in 2020,
66.61% of the firm’s assets are financed by borrowing. Finally, in the year 2021, 45.44% of
the firm’s assets are financed by borrowing. The firm has the lowest risk and lowest interest
payment in the year 2021.
DEBT-TO-EQUITY RATIO (DER)
2019: 7,134,000 / 144,417,000 X 100: 4.94%
2020: 8,084,000 / 166,580,000 X 100: 4.85%
2021: 12,620,000 / 382,580,000 X100: 3.30%
It indicates that in 2019, 4.94% of the firm’s capital are from borrowing. Then in 2020, 4.85%
of the firm’s capital are from borrowing. Lastly, in the year 2021, only 3.30% of the firm’s
capital are from borrowing. The firm has the lowest borrowing and lowest interest payment in
the year 2021.
TIMES INTEREST EARNED RATIO (TIE)
2019: 140,842,000 / 3,697,000: 38.10 Times
2020: 100,001,000 / 3,173,000: 31.52 Times
2021: 286,482,000 / 3,374,000: 84.91 Times
It indicates that in the year 2019, for every RM1 interest borne by the firm, it has 38.10 times
of EBIT to pay for it. Then in the year 2020, for every RM1 interest borne by the firm, it has
31.52 times of EBIT to pay for it. Finally, in the year 2021, for every RM1 interest borne by the
firm, it has 84.91 times of EBIT to pay for it. For this year, the firm has enough margin of
safety.
ACTIVITY RATIO
AVERAGE COLLECTION PERIOD (ACP)
2019: 11,285,2000 / 1,066,662,000 X 360 = 38.00 Days
2020: 815,010,000 / 1,100,659,000 X 360 = 26.66 Days
2021: 763,810,000 / 1,133,733,000 X 360 = 24.25 Days
It indicates that for the year 2019, the firm takes 38 days to recover back their money after making
net sales. Then, in the year 2020, the firm took 26.66 days to recover back their money after making
net sales. Finally, in 2021, the firm took 24.25 days to recover back their money after making net
sales.
INVENTORY TURNOVER (ITO)
2019: 661,942,000 / 135,024,000 = 4.90 Times
2020: 743,582,000 / 151,016,000 = 4.92 Times
2021: 734,030,000 / 76,381,000 = 9.61Times
It indicates that in the year 2019, the firm replenishes its inventories 4.9 times in a year. Then, in
the year 2020, the firm replenishes its inventories 4.92 times in a year. Lastly, in 2021, it indicates
that the firm replenishes its inventories 9.61 times in a year.
FIXED ASSETS TURNOVER (FATO)
2019: 1,066,662,000 / 129,134,000 = 8.26 Times
2020: 1,100,659,000 / 210,410,000 = 5.23 Times
2021: 1,133,733,000 / 219,081,000 = 5.17 Times
It indicates that in the year 2019, the ratio shows that for every RM1 invested in fixed assets, the
firm can generate RM8.26 sales from it. Next, in the year 2020, the ratio shows that for every RM1
invested in fixed assets, the firm can generate RM5.23 sales from it. Finally for the year ended 2021,
the ratio shows that for every RM1 invested in fixed assets, the firm can generate RM5.17 sales
from it.
TOTAL ASSETS TURNOVER (TATO)
2019: 1,066,662,000 / 443,594,000 = 2.40
2020: 1,100,659,000 / 498,845,000 = 2.21
2021: 1,133,733,000 / 701,232,000 = 1.62
It indicates that for the year ended 2019, the ratio shows that for every RM1 invested in total assets
the firm can generate RM2.40 sales from it. Next in the year 2020, the ratio shows that for every
RM1 invested in total assets the firm can generate RM2.21 sales from it. Lastly for the year ended
PROFITABILITY RATIO
GROSS PROFIT MARGIN (GPM)
2019: 404,720,000 / 1,066,662,000 X 100 = 37.94%
2020: 357,077,000 / 1,100,659,000 X 100 = 32.44%
2021: 399,703,000 / 1,133,733,000 X 100 = 35.26%
It indicates that in 2019 for every RM1 sales, the company is making a profit of 37.94
Sen after deducting direct costs. Then in 2020, it indicates that for every RM1 sales,
the company is making a profit of 32.44 Sen after deducting direct costs. And finally in
the year 2021, it indicates that for every RM1 sales, the company is making a profit of
35.26 Sen after deducting direct costs. The company has the highest GPM in the year
2019.
OPERATING PROFIT MARGIN (OPM)
2019: 140,842,000 / 1,066,662,000 X 100 = 13.20%
2020: 100,001,000 / 1,100,659,000 X 100 = 9.09%
2021: 286,482,000 / 1,133,733,000 X 100 = 25.27%
It indicates that in the year 2019, for every RM1 sales, the company is making a profit
of 13.20 Sen after deducting direct and indirect costs. Then in the year 2020, it
indicates that for every RM1 sales, the company is making a profit of 9.09 Sen after
deducting direct and indirect costs. Lastly, in 2021, it indicates that for every RM1
sales, the company is making a profit of 25.27 Sen after deducting direct and indirect
costs. The company has the highest operating profit margin during the 2021 financial
year.
NET PROFIT MARGIN (NPM)
2019: 102,958,000 / 1,066,662,000 X 100 = 9.65%
2020: 73,363,000 / 1,100,659,000 X 100 = 6.67%
2021: 248,000,000 / 1,133,733,000 X 100 = 21.87%
It indicates that in the year 2019, for every RM1 sales, the company is making a profit
of 9.65 Sen after deducting all costs. Next, in the year 2020, it indicates that for every
RM1 sales, the company is making a profit of 6.67 Sen after deducting all costs. Lastly,
for the year 2021, for every RM1 sales, the company is making a profit of 21.87 Sen
after deducting all costs. The company has the highest net profit margin in the year
2021 and the lowest net profit margin in the year 2020.
RETURN ON ASSETS (ROA)
2019: 102,958,000 / 443,594,000 X 100 = 23.21%
2020: 73,363,000 / 498,845,000 X 100 = 14.71%
2021: 248,000,000 / 701,232,000 X 100 = 35.37%
It indicates that in the year 2019, for every RM1 invested in the assets, the company is
able to generate a profit of 23.21 Sen. Then in the year 2020, It indicates for every
RM1 invested in the assets, the company is able to generate a profit of 14.71 Sen.
Finally, for the year 2021, It indicates that for every RM1 invested in the assets, the
company is able to generate a profit of 35.37 Sen. The highest return on assets for the
company occurred in the year 2021 and the lowest ROA occurred in the year 2020.
RETURN ON EQUITY (ROE)
2019: 102,958,000 / 144,417,000 X 100 = 71.29%
2020: 73,363,000 / 166,580,000 X 100 = 44.04%
2021: 248,000,000 / 382,580,000 X 100 = 64.82%
It indicates that in the year 2019, for every RM1 invested by the shareholders in the
company, they are able to get a profit of 71.29 Sen. Next, in the year 2020, It indicates
that for every RM1 invested by the shareholders in the company, they are able to get a
profit of only 44.04 Sen. Finally, in the year 2021, It indicates that for every RM1
invested by the shareholders in the company, they are able to get a profit of 64.82
Sen. The company experiences the highest ROE during the 2019 financial year and
the lowest ROE in the year 2020.
TREND ANALYSIS SUMMARY
LIQUIDITY RATIO
YEAR CR QR NWC
2019 1.08 Times 0.61 Times RM22,417,000
2020 0.89 Times 0.42 Times - RM35,746,000
2021 1.58 Times 1.05 Times RM176,119,000
It indicates that the company has good liquidity for the years 2019 and 2021. However, the company’s
current ratio, quick ratio and net working capital declined for the year 2020.
LEVERAGE RATIO
YEAR Debt Ratio DER TIE

2019 67.44% 4.94% 38.10 Times
2020 66.61% 4.85% 31.52 Times
2021 45.44% 3.30% 84.91 Times
It indicates that the firm decreases its risks and interest payments as the years went by. The company
also has the highest times interest earned ratio in the year 2021. This indicates that the company's
income is 84.91 times greater than its annual interest expense.
ACTIVITY RATIO
YEAR ACP ITO FATO TATO

2019 38.00 Days 4.90 Times 8.26 Times 2.40 Times
It indicates that the company has good cash flow and high inventory turnover. The goods are also sold
quickly especially in the year 2021. However, the company’s fixed assets turnover and total assets
turnover declined since 2019 until 2021.
PROFITABILITY RATIO
YEAR GPM OPM NPM ROA ROE

2019 37.94% 13.20% 9.65% 23.21% 71.29%
2020 32.44% 9.09% 6.67% 14.71% 44.04%
2021 35.26% 25.27% 21.87% 35.37% 64.82%
It indicates that the company has good gross profit margin for each year. The company also received the
highest net profit margin and return on assets in the year 2021. However, the company has very low
operating profit margin and return on equity on the financial year ended 2019.
COMPARATIVE ANALYSIS
LIQUIDITY RATIO
CURRENT RATIO (CR)
DUTCH LADY MILK INDUSTRIES BERHAD FRASER & NEAVE HOLDINGS BERHAD
2021 2021
482151000 / 306032000 = 1.58 times

1764827000 / 655878000 = 2.69 times
The current ratio of DUTCH LADY MILK INDUSTRIES BERHAD in 2021 indicates that for
every RM 1, the firm has RM1.58 current assets and the firm has enough current assets to
cover for its current liabilities. When compared to other competitor, for every RM1, the firm has
less than RM1.11 current assets from other competitor but still can cover for its current
liabilities.
QUICK RATIO (QR)
2021 2021
(482151000-161055000) / 306032000 =
1.05 times (1764827000-659745000) / 655878000 = 1.68
times
The quick ratio of DUTCH LADY MILK INDUSTRIES BERHAD in 2021 for every RM1, the firm
has RM1.05 current assets and the firm has enough current assets to cover for its current
obligations. When compared to other competitor, for every RM1, the firm has less than RM0.63
current assets from other competitor but still can cover for its current obligations.
NET WORKING CAPITAL (NWC)
2021 2021
482151000 - 306032000 =
RM 176119000 1764827000 - 655878000 =
RM 1108949000
The net working capital of DUTCH LADY MILK INDUSTRIES BERHAD in 2021 the firm has
RM176,119,000 margin of safety, and the firm has sufficient margin of safety will be able to
meet its short-term obligations. When compared to other competitor, the firm has less than
RM932,830,000 margin of safety from other competitor but still can meets its short-term
obligations.
LEVERAGE RATIO
DEBT RATIO
2021 2021
318,652,000 / 701,232,000 X 100: 45.44% 812,976,000 / 3,631,746,000 X 100: 22.39%
The debt ratio of DUTCH LADY MILK INDUSTRIES BERHAD in 2021 indicates that 45.44% of the
firm’s assets are financed by borrowing. When compared to other competitor, the firm has higher risk
and higher interest payment.
DEBT TO EQUITY RATIO (DER)
2021 2021
12,620,000 / 382,580,000 X100: 3.30% 157,098,000 / 2,818,770,000 x 100: 5.57%
The debt-to-equity ratio of DUTCH LADY MILK INDUSTRIES BERHAD in 2021 indicates that 3.30%
of the firm’s capital are from borrowing. When compared to other competitor, the firm has lower
borrowing and lower interest payment.
TIMES INTEREST EARNED (TIE)
2021 2021
286,482,000 / 3,374,000: 84.91 Times 472,286,000 / 3,173,000: 148.85 Times
The times interest earned of DUTCH LADY MILK INDUSTRIES BERHAD in 2021 indicates that for
every RM1 interest borne by the firm, it has 84.91 times of EBIT to pay for it. When compared to other
competitor, the firm also has enough margin of safety.
ACTIVITY RATIO
AVERAGE COLLECTION PERIOD (ACP)
2021 2021
2021: 763,810,000 / 1,133,733,000 X 360 = 2021: 558,253,000 / 4,130,872,000 X 360 =

24.25 Days 48.65 Days
It indicates that in 2021, the company took 24.25 days to recover back their money after making net
sales. When compared to other competitor, the company has better average collection period.
INVENTORY TURNOVER (ITO)
2021 2021
2021: 734,030,000 / 76,381,000 = 9.61 Times 2021: 2,936,714,000 / 659,745,000 = 4.45 Times
It indicates that in 2021, the company replenishes its inventory 9.61 times in a year. When compared to
other competitor, the company is more efficient in using its inventory to generate sales.
FIXED ASSETS TURNOVER (FATO)
2021 2021
2021: 1,133,733,000 / 219,081,000 = 2021: 4,130,872,000 / 1,866,919,000 =

2.21 Times
5.17 Times
It indicates that in 2021, the ratio shows that for every RM1 invested in fixed assets, the company can
generate RM5.17 sales from it. Compared to other competitor, the company is able to generate higher
sales with small amount of investment on fixed assets.
TOTAL ASSETS TURNOVER (TATO)
2021 2021
2021: 1,133,733,000 / 701,232,000 = 2021: 4,130,872,000 / 3,631,746,000 =

1.62 Times 1.14 Times
It indicates that in 2021, the ratio shows that for every RM1 invested in total assets the company can
generate RM1.62 sales from it. Compared to other competitor, the company is more efficient in using all
PROFITABILITY RATIO
GROSS PROFIT MARGIN (GPM)
2021: 399,703,000 / 1,133,733,000 X 100 = 2021: 1,194,158,000 / 4,130,872,000 X 100 =
35.26% 28.91%
In the year 2021, it indicates that for every RM1 sales, the company is making a profit of 35.26 Sen after
deducting direct costs. Compared to other competitor, the company is more financially stable and more
efficiently ran.
OPERATING PROFIT MARGIN (OPM)
2021: 286,482,000 / 1,133,733,000 X 100 = 2021: 472,286,000 / 4,130,872,000 X 100 =
25.27% 11.43%
It indicates that in the year 2021, for every RM1 sales, the company is making a profit of 25.27 Sen after
deducting direct and indirect costs. Compared to other competitor, the company is has a higher quality of
earning.
NET PROFIT MARGIN (NPM)
2021: 248,000,000 / 1,133,733,000 X 100 = 2021: 395,130,000 / 4,130,872,000 X 100 =
21.87% 9.57%
It indicates that in the year 2021, for every RM1 sales, the company is making a profit of 21.87 Sen after
deducting all costs. Compared to other competitor, the company is more efficient at converting sales into
actual profit.
RETURN ON ASSETS (ROA)
2021: 248,000,000 / 701,232,000 X 100 = 2021: 395,130,000 / 3,631,746,000 X 100 =
35.37% 10.88%
It indicates that in the year 2021, for every RM1 invested in the assets, the company is able to generate a
profit of 35.37 Sen. Compared to other competitor, the company is more efficient in converting the money it
invests into net income.
RETURN ON EQUITY (ROE)
2021: 248,000,000 / 382,580,000 X 100 = 2021: 395,130,000 / 2,818,770,000 X 100 =
64.82% 14.02%
It indicates that in the year 2021, for every RM1 invested by the shareholders in the company, they are able
to get a profit of 64.82 Sen. Compared to other competitor, the company is more efficient in using its’
investors money to generate profit.
COMPARATIVE ANALYSIS SUMMARY
LIQUIDITY RATIO 2021
COMPANY CR QR NWC
Dutch Lady Milk 1.58 Times 1.05 Times RM 176,119,000
Industries
Fraser & Neave Holdings 2.69 Times 1.68 Times RM 1,108,949,000
Berhad
It indicates that in the year 2021, the company has less liquidity when compared to other competitor.
LEVERAGE RATIO 2021
COMPANY DEBT RATIO DER TIE

Dutch Lady Milk Industries 45.44% 3.30% 84.91 Times
Fraser & Neave Holdings 22.39% 5.57% 148.85 Times
Berhad
When compared to other competitor in the year 2021, the company is worse in debt ratio. However, the
company has better debt-to-equity ratio. The company is also below the other competitor in times interest
earned.
ACTIVITY RATIO 2021
COMPANY ACP ITO FATO TATO

Dutch Lady Milk 24.25 Days 9.61 Times 5.17 Times 1.62 Times
Industries
Fraser & Neave 48.65 Days 4.45 Times 2.21 Times 1.14 Times
Holdings Berhad
In the year 2021, it indicates that the company is more efficient in leveraging the assets on its balance
sheet, to generate revenues and cash when compared to other competitor.
PROFITABILITY RATIO 2021
COMPANY GPM OPM NPM ROA ROE

Dutch Lady Milk 35.26% 25.27% 21.87% 35.37% 64.82%
Industries
Fraser & Neave 28.91% 11.43% 9.57% 10.88% 14.02%
Holdings Berhad
In the year 2021, it indicates that the company is more efficient in generating profit and value for
shareholders when compared to other competitor.
CONCLUSION
In order to maintain efficiency with the goal of maximising the holders' resources, analysis and
appraisal of financial issues are required. It displays a company's assets and liabilities. It enables the
firm to evaluate whether financial state is weaker or which one they should favour to realise the
maximum profit. It is usual for the company to take out loans and issue equity assets to assist its
financial endeavours. Therefore, before accepting loans at any branch, one must have thorough
information of the history and outcomes. The company's indication of productivity and profitability can
be anticipated soon based on the results in terms of liquidity.
These financial challenges research is more than just a project requirement; it also provides a basic
understanding of how to evaluate a company's financial status. The research conducted revealed the
following results. By analysing the company's current situation, the study claims to have discovered this
information based on comparison and pattern research. It is evident that Dutch Lady Milk Industries
Berhad was profitable during the research period. According to the study, it is advantageous to evaluate
the willingness to return the loan on time based on the company's debt levels.
This project primarily focuses on the foundations of Dutch Lady Milk Industries Berhad financial
status statement in its various formats for the 2021 fiscal year. The ratio analysis conducted by Dutch
Lady Milk Industries Berhad revealed that the company's liquidity status was respectable. The ideal
current ratio, quick ratio, and net working capital are examples of ratios and assessments. Inventory
turnover, average collection period, fixed assets turnover, and total asset turnover are frequently broken
down into operation or asset management ratios.
Additionally, there are three interest ratios, the debt ratio, debt to equity ratio and times interest
earned. In contrast, profitability metrics include gross profit margin, operating profit margin, net profit
margin, return on assets, and return on equity.
Finally, to build a totally rational basis for assessing how closely your company's performance is
linked with relevant industry and internal benchmarks, financial analysis is used. This holds true for
each financial indicator as well as the overall financial health of your company. A financial analysis will
not only provide a better understanding of a company's financial situation and enable people to assess
its creditworthiness, profitability, and capacity for wealth creation, but it will also give people a more
detailed understanding of how well it runs internally.
APPENDIX
1. https://www.investopedia.com/terms/f/financial-statements.asp
2. https://www.condley.cpa/accounting-edge/financial-analysis-is-important-to-your-business/
#:~:text=Many%20business%20owners%20and%20company,%2C%20cash%20flow%2C
%20and%20value.
3. https://www.dutchlady.com.my/wp-content/uploads/2022/04/DLMI-AR2021.pdf
4. https://www.dutchlady.com.my/wp-content/uploads/2021/04/Annual-Report-2020.pdf
5. https://www.dutchlady.com.my/wp-content/uploads/2020/pdf/reports/DL-AR19_WEBSITE.pdf
6. https://fn.com.my/investors/ar2021/download/fn-ar2021-web.pdf

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FUNDAMENTALS OF FINANCE UITM

AIMAN FARIS BIN NOOR HISHAM ALI

ADAM AFIQ BIN MOHD YAZID

MUHAMMAD AKMAL BIN NIRWAN

FARHAN HAIQAL AHMAD BIN ABDULLAH

ADAM ADLI BIN MOHAMMED SHAMSU

MUHAMMAD WAFI BIN MOHD HAZRINUDDIN

FOREWARD/ FINANCIAL SUMMARY

INDUSTRY & COMPANY ANALYSIS

EXTRACTED FINANCIAL STATEMENT

PLAYERS IN THE INDUSTRY

- Dutch Lady Milk Industries Berhad

COMPANY SALES IN 2021 (RM)

Dutch Lady Milk Industries: 1,133,733,000 / 9,398,201,879 X 100 = 12.06%

Fraser & Neave Holdings Berhad: 4,130,872,000 / 9,398,201,879 X 100 = 43.95%

Cocoaland Holdings Berhad: 210,299,487 / 9,398,201,879 X 100 = 2.24%

Guan Chong Berhad : 3,923,297,392 / 9,398,201,879 X 100 = 41.75%

PROPERTY, PLANT AND EQUIPMENT 123,482,000.00

TRADE AND OTHER PAYABLES 264,928,000.00

LEASE LIABILITIES 340,000.00

SHARE CAPITAL 64,000,000.00

NET SALES 1,066,662,000.00

RESULTS FROM OPERATING ACTIVITIES 140,842,000.00

PROFIT BEFORE TAX 137,600,000.00

NET PROFIT FOR THE FINANCIAL YEAR 102,958,000.00

BASIC AND DILUTED EARNINGS PER ORDINARY SHARE (SEN) 160.90

PROPERTY, PLANT AND EQUIPMENT 199,721,000.00

TRADE AND OTHER PAYABLES 295,492,000.00

LEASE LIABILITIES 3,590,000.00

SHARE CAPITAL 64,000,000.00

NET SALES 1,100,659,000.00

RESULTS FROM OPERATING ACTIVITIES 100,001,000.00

PROFIT BEFORE TAX 97,511,000.00

NET PROFIT FOR THE FINANCIAL YEAR 73,363,000.00

BASIC AND DILUTED EARNINGS PER ORDINARY SHARE (SEN) 114.60

PROPERTY, PLANT AND EQUIPMENT 206,028,000.00

TRADE AND OTHER PAYABLES 282,795,000.00

LEASE LIABILITIES 6,652,000.00

SHARE CAPITAL 64,000,000.00

NET SALES 1,133,733,000.00

RESULTS FROM OPERATING ACTIVITIES 286,482,000.00

PROFIT BEFORE TAX 284,525,000.00

NET PROFIT FOR THE FINANCIAL YEAR 248,000,000.00

BASIC AND DILUTED EARNINGS PER ORDINARY SHARE (SEN) 387.50

CURRENT RATIO (CR)

2019: 314460000/292043000 = 1.08 times

2020: 288435000/324181000 = 0.89 times

2021: 482151000/306032000 = 1.58 times

QUICK RATIO (QR)

2019: (314460000-135024000)/292043000 = 0.61 times

2020: (288435000-151016000)/324181000 = 0.42 times

2021: (482151000-161055000)/306032000 = 1.05 times

NET WORKING CAPITAL (NWC)

2019: 314460000-292043000 = RM 22417000

2020: 288435000-324181000 = RM -35746000

2021: 482151000-306032000 = RM 176119000

2019: 299,177,000 / 443,594,000 X 100: 67.44%