BWFF1013 FOUNDATION OF FINANCE

SEMESTER A212
INDIVIDUAL ASSIGNMENT #1: TOPIC 2

PART I

Choose TWO (2) Shariah-compliant public listed companies from Bursa Malaysia. These
two companies must have the SAME BUSINESS ACTIVITIES.

Download the companies’ Annual Reports and obtain Income Statement (Statements of
Profit & Loss) and Balance Sheet (Statements of Financial Positions) in the latest FIVE (5)
years: FYE2016, 2017, 2018, FYE 2019 & FYE 2020)

1) Provide the details of your Company Background as follows:

I. Logo and name of the company

II. Sector (as provided in Bursa Malaysia)

III. Vision and Mission of the company

IV. History of the company (including when the company was established,
who were the founders, when the company was listed in Bursa Malaysia,
etc.)

V. Details of the company’s Business Activities [both in Malaysia and abroad

(if any)]. You are encouraged to provide pictures or photos of the
company’s activities

2) List at least ONE (1) public listed company which is the competitor for both
companies. Provide the name, logo and brief description of the competitor.

3) What does Shariah-compliant mean? You are required to explain the criteria that
will qualify the companies listed as Shariah-Compliant [S] in Bursa Malaysia.
PART II

You are required to do the following:

1) Calculate the following Financial Ratios for each company:

LIQUIDITY RATIO:
i) Current ratio
ii) Quick ratio

ASSET MANAGEMENT RATIO:

i) Total Asset Turnover

PROFITABILITY RATIO:
i) Net Profit Margin
ii) Return on Assets
iii) Return on Equity

LEVERAGE RATIO:
i) Debt Ratio
ii) Equity Ratio

2) Compare & analyze the financial ratios between two companies and provide
explanation based on both Trend Analysis and Comparison Analysis

Use a horizontal (landscape) box format in Microsoft Word.

 Show all formula and calculations for the all financial ratios in each year.

 Show the graph of the trend of each ratio.

 Write your analysis based on

1) TREND ANALYSIS [year by year performance for each company]; and
2) COMPARISON ANALYSIS [year by year performance between the two
companies).

Note: Must use adverbs or adjectives in your description analysis.

Examples:
 The current ratio for 2019 is slightly lower than that of 2018 because …
 In 2019, the current ratio for Maxis is significantly higher than…

3) Based on your opinion, choose the best company and give your overall
conclusion based on the Trend Analysis and Comparison Analysis in (Q2) above.

4) Provide the share price movement (chart) in the last 5 years for each company &
explain on the comparison of price performance. The chart can be obtained from
Bursa Malaysia website, Yahoo! Finance or any other financial-based websites.

5) Provide your opinion on the effects of pandemic Covid-19 on both the industry
and companies in short-term (current year until next year) and medium-term (next
3-5 years). Your opinion and argument must be supported by some facts and
references.