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FACULTY OF BUSINESS AND MANAGEMENT

BACHELOR OF BUSINESS ADMINISTRATION (HONS) FINANCE

FIN 658

FINANCIAL STATEMENT ANALYSIS

GROUP ASSIGNMENT

(MUDAJAYA BERHAD AND MRCB BERHAD)

PREPARED FOR:
DR NURAZLEENA BINIT ISMAIL

PREPARED BY:
MUHAMAD KHAIRUL BIN YAMAT 2021480214 BA242 5B

SUBMISSION DATE:

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ACKNOWLEDGEMENT

To begin, I'd want to thank Allah SWT for bestowing upon me the wisdom, courage, and
endurance required to accomplish this project, as well as for allowing me to participate in and
learn from this course. My objectives were met passionately and quickly. I made good use of
it by doing a case study and searched for material for my assignment. This project is the
product of personal labour and the direct and indirect assistance of others.

After that, I'd want to express my heartfelt gratitude to our class's speaker, Dr. Nurazleena
Binti Ismail, for his unending patience with us. I'd want to thank her for providing me with
the instructions and other materials I needed to complete this task.

Finally, I'd want to thank my colleagues for always being there for me in both good and bad
times. As an understudy, they provide me a lot of help on this trip. I doubt I could complete
my work report on time without their assistance and guidance. I don't know how to convey
my thanks in words, but my heart is always full of the gift that everyone gets.

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Contents
ACKNOWLEDGEMENT...........................................................................................................................2
1.0 COMPANY BACKGROUNDS..............................................................................................................4
1.1 NATURE OF BUSINESS......................................................................................................................5
1.2 ORGANIZATION CHART....................................................................................................................5
1.3 MISSION STATEMENT.......................................................................................................................6
1.4 VISION STATEMENT..........................................................................................................................6
2.0 RATIO ANALYSIS...............................................................................................................................7
2.1 Liquidity Ratio..............................................................................................................................7
2.2 Leverage Ratio...........................................................................................................................10
2.3 Activity Ratio..................................................................................................................................11
2.4 Profitability Ratio...........................................................................................................................12
3.0 Comparative Analysis.....................................................................................................................14
4.0 COMMON SIZE ANALYSIS...............................................................................................................17
5.0 RECOMMEDATION.........................................................................................................................19
6.0 CONCLUSION.................................................................................................................................20
7.0 REFERENCES...................................................................................................................................21
8.0 APPENDICS.....................................................................................................................................22

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1.0 COMPANY BACKGROUNDS

Mudajaya Group Berhad or Mudjaya (Bursa Malaysia: MUDAJYA) is a conglomerate

in Malaysia based in Petaling Jaya, Selangor. Mudajaya provides five superior services cores:
construction, property development, asset concession, manufacturing, and trading.

Mudajaya was founded as Chye Hin Construction Co. Ltd. (CHCCL) in 1965. In 1972,
CHCCL took part in the World Bank-sponsored Young Irrigation Project to irrigate rice fields
in Kedah and Perlis. The Tuanku Jaafar Power Station, a thermal power plant, was developed
by CHCCL. The company was renamed Mudajaya Construction Sdn Bhd (MCSB) in the
same year.

In 1983, Ipoh Garden, Jurutama & Mudajaya merged, and MCSB was made a division of IJM
Berhad. MCSB joined United Engineers Bhd. (now known as UEM) as a subsidiary in 1990.
It joined Mulpha International Bhd as a subsidiary for real estate development in 1993.
MCSB joined the EPC consortium for the KLIA project in 1995.

In 2004, Mudajaya Group Berhad, the holder of MJC, was listed on Bursa Malaysia. In 2012,
Mudajaya moved to a new office in Menara Mudajaya, Mutiara Damansara. Mudajaya also
received ISO 14001:2004 & OHS.AS 18001:2007 recognition.

Over the years, Mudajaya Berhad has expanded its operations and established a presence in
several countries, including Malaysia, Indonesia, India, the United Arab Emirates, and Saudi
Arabia. The company has a track record of delivering quality projects and has been
recognized for its contributions to the construction and power sectors.

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MRCB was founded as Perak Carbide Corporation Sdn Bhd, a carbide maker, in 1968 and
went public in 1971.In 1981, it changes its business focus to property development and took
on its present name. From the 1990s onwards, MRCB led a consortium that included Keretapi
Tanah Melayu and Pembinaan Redzai to design and build KL Sentral, Malaysia's largest
transport hub.

KL Sentral serves as the central point for the KTM Komuter, ETS, Rapid Rail (LRT and
monorail), Express Rail Link to Kuala Lumpur International Airport, and the recently opened
KVMRT Sungai Buloh-Kajang line. The business district also houses major local companies
such as UEM, CIMB, and Axiata, as well as the Malaysian headquarters of multinational
corporations such as Shell and General Electric.

KL Sentral had nearly completed development by 2015, with only two lots reserved for future
projects. MRCB's township projects on Kuala Lumpur's suburbs include 9 Seputeh and Kota
Semarak.Penang Sentral, a similar transit hub for the northern city of Penang, PJ Sentral, a
mixed residential and commercial development in the KL suburb of Petaling Jaya, and the
restoration of the Bukit Jalil National Stadium were all big projects in the pipeline in 2015. It
is also a joint venture in the development of the town centre in the 2,330-acre Kwasa
Damansara township in the Klang Valley, which is held by the Employees Provident Fund
(EPF), its largest shareholder.

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1.1 NATURE OF BUSINESS OF MUDAJAYA

Construction is the main contributor to the Mudajaya Group Berhad (“Mudajaya” or
the “Company”) and its subsidiaries (“Mudajaya Group” or the “Group”)’s income. The
Group’s construction activities are primarily undertaken by Mudajaya Corporation Berhad
(“MJC”). MJC is involved in general construction, in particular civil engineering and
building construction on both design and build and conventional construction contracts for
Government, quasi-Government and the private sector.The Mudajaya Group has been
involved in a portfolio of contracts (some of which were on joint venture basis) comprising
highways, roads, bridges, power stations, buildings, infrastructure, marine structures, dams
and retaining structures, water supply works, drainage and sewerage works.

NATURE OF BUSINESS OF MRCB BERHAD

Malaysian Resources Corporation Berhad (MRCB) is an investment holding company. The
company specialized in property development, property investment, building services,
environmental engineering, infrastructure, and engineering and construction-related
endeavors.

1.2 ORGANIZATION CHART

LEE ENG LEONG Dato’ Amin Rafie Bin Othman

Non-independent executive chairman Independent Non-executive Deputy Chairman

Ir. James Wong Tet Foh Chew Hon Pin

Group Managing Director Senior Independent Non-
& Chief Executive Officer Executive Directior

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Oei Su Lee

Independent Non-Executive Director

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MUDAJAYA BERHAD

MISSION STATEMENT
 Committed to continuously improve on performance by meeting international quality
standards, timely completion customer satisfaction and enhancement of shareholders
value.
 Committed to improve in the overall to continuously attract, engage, retain and
develop human capital.

VISION STATEMENT
 To be preferred leader in the Construction and Property Development Industry.
 To provide good infrastructure and energy requirements society.
 Strive looking ahead beyond expectation and goal by integrating technical excellence,
commitment and leveraging on the competency of our people.

MRCB BERHAD

MISSION STATEMENT
 Leading the field through innovation in property development, engineering, and
construction.

VISSION STATEMENT
 SETTING THE STANDARD

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2.0 RATIO ANALYSIS

2.1 Liquidity Ratio
Liquidity Ratio is to determine a company’s ability to pay off its short-term debt’s obligation.
Generally, the higher the value of the ratio, the larger margin of safety that the company
possesses to cover its short-term debts. It can give a sense of the efficiency of a company’s
operating cycle or its ability to turn its product into cash.

2.1.1 Current Ratio

MUDAJAYA BERHAD

2022 2021 2020

CURRENT ASSET 1,292,024 556,427 784,657

CURRENT LIABILITY 693,399 347,973 579,896

CURRENT RATIO 1.86 times 1.60 times 1.35 times

MRCB BERHAD

2022 2021 2020

CURRENT ASSET 3,547,330 3,651,445 2,962,335

CURRENT LIABILITY 2,697,291 2,451,283 1,633,911

CURRENT RATIO 1.32 times 1.49 times 1.81 times

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The Mudajaya Berhad's current ratio has been consistently increasing year after year. This
indicates that the company has been effectively managing its ability to fulfill its short-term
obligations. In 2020, the company had a current ratio of 1.35, which means it had RM 1.35 of
current assets for every RM 1 of current liabilities. In 2021, the current ratio improved to
1.60, indicating that the company had RM 1.60 of current assets for every RM 1 of current
liabilities. Furthermore, in 2022, the current ratio further increased to 1.86, revealing that
Mudajaya Berhad possessed RM 1.86 of current assets for every RM 1 of current liabilities.
These figures suggest that Mudajaya Berhad is in a healthy financial position and has no
difficulty in meeting its short-term obligations. The higher the current ratio, the greater the
margin of safety for the company to cover its short-term liabilities.

The current ratio of MRCB Berhad, which assesses its capability to meet short-term
obligations with short-term assets, has been decreasing throughout the year. In 2020, the
company displayed a robust current ratio of 1.81, indicating that it had RM1.81 of current
assets for each RM1 of current liabilities. However, in 2021, the ratio dropped to 1.49,
suggesting slightly lower liquidity. By 2022, the ratio further declined to 1.32, indicating
potential difficulties in covering short-term obligations with the assets at hand. This
downward trend indicates a potential deterioration in MRCB Berhad's liquidity position and
highlights the importance of monitoring its ability to manage short-term debts with available
assets.

2.1.2 Quick Ratio

Also known as the acid-test-ratio. It measures the ability of a company to meet its short-term
financial obligations with quick asset. It is most used by analyst in analysing creditworthiness
of a company on how fast it can pay off its debts if due payment right now.

MUDAJAYA BERHAD

2022 2021 2020

CURRENT ASSET-INV 1,181,389 443,730 654,485

CURRENT LIABILITY 693,399 347,973 579,896

QUICK RATIO 1.70 1.28times 1.13 times
times

MRCB BERHAD
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2022 2021 2020

CURRENT ASSET-INV 1,861,907 2,003,343 1,141,852

CURRENT LIABILITY 2,697,291 2,451,283 1,633,911

QUICK RATIO 0.69 0.82times 0.70 times
times

The company's quick ratio, which measures its ability to cover short-term debt without
relying on the sale of goods, indicates that it does not face any difficulties in paying its short-
term liabilities, as the ratio remains above 1. In 2020, Mudajaya Berhad had RM1.13 in quick
assets for every RM1 of current liabilities. In 2021 and 2022, the company had RM1.28 and
RM1.70 of quick assets respectively for every RM1 of liabilities. These figures demonstrate
that the company is not experiencing financial distress that could result in bankruptcy.

The quick ratio in 2020 was 0.70, meaning that for every RM1 of short-term debts, MRCB Berhad had
RM0.70 of quick assets available. In 2021, the quick ratio improved slightly to 0.82, indicating a slight
increase in the company's capacity to meet short-term debts without relying heavily on inventory.
However, in 2022, the quick ratio decreased to 0.69, suggesting a potential decline in MRCB Berhad's
ability to cover short-term debts with readily available assets. This downward trend indicates a
potential weakening in the company's liquidity and highlights the need to assess its capability to
fulfill short-term obligations without significant reliance on inventory.

2.1.3 Working Capital Turnover

Working capital turnover use to compares the depletion of working capital to the generation
of sales over a given period. The higher the value, the better because it means that the
company is generating a lot of sales compared to the money it uses to fund the sale.

MUDAJAYA BERHAD

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2022 2021 2020

SALES 305,192 288,688 347,698

WORKING CAPITAL 598,625 208,634 204,761

(CA-CL)
WORKING CAPITAL TURNOVER 0.51 times 1.38 times 1.70 times
MRCB BERHAD

2022 2021 2020

SALES 3,205,061 1,448,452 1,199,484

WORKING CAPITAL 850,039 1,200,162 1,328,424

(CA-CL)
WORKING CAPITAL TURNOVER 3.77 times 1.21 times 0.90 times

The trend in the Working Capital Turnover for Mudajaya Berhad indicates a decline, implying that the
company has been using more funds to cover construction costs rather than generating profits. The
ratios for 2020, 2021, and 2023 were 1.70, 1.38, and 0.51, respectively. The lowest value in 2022
suggests that the company has invested excessively in accounts receivables and inventory assets to
support sales or construction, which can lead to a higher amount of bad debt.

Similarly, looking at MRCB Berhad, we observe changes in the Working Capital Turnover ratio over
the years. In 2020, the ratio stood at 0.90, indicating that for every RM1 of working capital, the
company generated RM0.90 in sales. This signifies a lower efficiency in utilizing working capital for
revenue generation. However, the ratio improved to 1.21 in 2021, demonstrating better utilization of
working capital for sales. By 2022, the ratio saw a significant increase to 3.77, representing a
substantial enhancement in efficiency. This suggests that MRCB Berhad greatly improved its ability to
use available resources to generate revenue over the years.2.2 Leverage Ratio

2.2.1 Debt Ratio

Debt ratio is used to indicates the proportion of debt a company has relative to its asset. his
ratio varies widely across industries, such that capital-intensive businesses tend to have much
higher debt ratios than others. A company's debt ratio can be calculated by dividing total debt
by total assets.

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MUDAJAYA BERHAD

2022 2021 2020

TOTAL DEBT 1,279,500 687,645 1,073,246

TOTAL ASSET 1,925,863 1,004,698 1,231,797

DEBT RATIO 0.66 times 0.68 times 0.87times
MRCB BERHAD

2022 2021 2020

TOTAL ASSET 2,980,992 3226160 2291548

TOTAL DEBT 9,228,640 9205458 8314187

DEBT RATIO 0.32 0.35 times 0.28 times

times

Mudajaya Berhad experienced a consistently high debt ratio over the three-year period from 2020 to
2022, with values of 0.87, 0.68, and 0.66 respectively. This indicates that the company relied more on
debt than its assets to finance its operations. Consequently, Mudajaya Berhad had a high level of
leverage, which increases the risk associated with its business activities. In comparison, MRCB
Berhad had varying debt ratios during the same period. In 2020, the ratio was 0.28, implying that
28% of its assets were debt-financed. This figure rose to 0.35 in 2021, reflecting a 35% debt financing
of its assets. However, there was a slight decline in 2022, with the ratio reaching 0.32 and indicating
that 32% of its assets were funded through debt. These changes in MRCB Berhad's debt ratios
provide insights into the company's financial health and the level of risk it carries2.3 Activity Ratio

2.3.1 Inventory Turnover

Inventory turnover rate (ITR) is a ratio measuring how quickly a company sells and replaces
inventory during a given period. The purpose of calculating the inventory turnover rate is to
help companies make informed decisions about pricing, manufacturing, marketing, and
purchasing new inventory. A low ratio can imply weak sales and/or possible excess inventory,
also called overstocking. This could be due to a problem with the goods being sold,
insufficient marketing, or overproduction. A high ratio can imply strong sales, but also
insufficient inventory.

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MUDAJAYA BERHAD

2022 2021 2020

COST OF GOOD SOLDS 257,022 233,024 330,191

INVENTORY 99,420 121,435 126,726

INVENTORY TURNOVER 2.59times 1.92times 2.61times

MRCB BERHAD

2022 2021 2020

COST OF GOOD SOLDS 2,759,108 1,268,405 946,407

INVENTORY 821,436 836,893 871,944

INVENTORY TURNOVER 3.36times 1.52times 1.09times

The inventory turnover ratio for MRCB Berhad has been consistently improving over the
years. In 2020, the ratio stood at 1.09, indicating that the company sold and replaced its
inventory approximately 1.09 times during that year. The efficiency slightly increased in
2021, with a ratio of 1.52, demonstrating a small improvement. However, the most significant
advancement was seen in 2022 when the ratio surged to 3.36, suggesting that the company
was able to sell and replenish its inventory twice during the year. This upward trend in the
inventory turnover ratio signifies that MRCB Berhad has become increasingly efficient in
managing its inventory throughout the three-year period.
2.3.2 Receivables Turnover Ratio
Receivable turnover is a measure of how quickly a company is collecting its sales that were
made on credit. This refers to sales for which cash payment was delayed until after the sale
date. A high rate of turnover occurs when the proportion of receivables to sales is low.

MUDAJAYA BERHAD

2022 2021 2020 2019 2018

SALES 305,192 288,688 347,698

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ACCOUNT RECEIVABLES 804,482 257,160 302,465

RECEIVABLES TURNOVER 0.38time 1.12times 1.15time times times

s s

MRCB BERHAD

2022 2021 2020 2019 2018

SALES 3,205,061 1,448,452 1,199,484

ACCOUNT RECEIVABLES 1,376,451 1,013,038 734,767

RECEIVABLES TURNOVER 2.33times 1.43times 1.63times times times

The accounts receivable turnover ratio for Mudajaya Berhad, a construction company, has
consistently decreased over time. In 2020, the ratio was 1.15, while in 2021, it dropped further to
1.12. The lowest receivable collection was recorded in 2022, with a ratio of 0.38. The years 2020 and
2021 were relatively more efficient, as the ratios were above 1.0, indicating that the company was
able to collect the full number of accounts receivable in a timely manner.

On the other hand, MRCB Berhad's accounts receivable turnover ratio has fluctuated over the years.
In 2020, the ratio stood at 1.63, implying that the company collected payments about 1.63 times
during the year. This suggests effective management of credit sales and prompt payment collection.
However, in 2021, the ratio decreased to 1.43, indicating a slower rate of payment collection
compared to the previous year. However, in 2022, there was a significant improvement, with the
ratio increasing to 2.33, indicating a faster turnover of payments. Overall, MRCB Berhad's accounts
receivable turnover ratio varied, with higher ratios reflecting faster payment collection and better
management of credit sales2.4 Profitability Ratio

2.4.1 Net Profit Margin

Net Profit Margin is used to measure how much out of every cash sale of a company keep
earning. A higher profit margin indicates that a more profitable company that has better
control over its cost compared to competitors.

MUDAJAYA BERHAD

2022 2021 2020 2019 2018

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Net Income -24,465 8,080 -45,276

Sales 305,192 288,688 347,69

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(percentage) 100 100 100 100 100

Net Profit -8% 3% -13% % %

Margin
MRCB BERHAD

2022 2021 2020 2019 2018

Net Income 53,546 6718 -176,568

Sales 3,205,061 1,448,452 1,199,48

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(percentage) 100 100 100 100 100

Net Profit 1.67% 0.46% -14.72% % %

Margin

Mudajaya Berhad's financial performance fluctuates, with varying increases and decreases in
their ratios. In 2020, the company experienced a loss of 13%, but they were able to turn it
around in 2021 with a profit of 3%. However, their profitability declined again in 2022,
reaching -8%. These results indicate that the company may struggle with cost control
compared to its competitors.
Regarding MRCB Berhad's net profit margin, it exhibited changes over time. In 2020, the net
profit margin stood at -14.72%, indicating a loss due to higher expenses than revenue.
However, in 2021, it improved to 0.46%, indicating a small profit relative to their total
revenue. Furthermore, in 2022, it increased further to 1.67%, suggesting a slightly better level
of profitability. These fluctuations imply that MRCB Berhad faced challenges in 2020 but
managed to recover and achieve modest profitability in subsequent years.
2.4.2 Return on Asset
A company's earnings before interest and taxes (EBIT) and total net assets are compared
using the return on total assets (ROA) ratio. It is referred to as the ratio of net income to total
average assets, or the amount of operational and financial income that a company receives in
a fiscal year relative to its total assets. The ratio is used as a measure of how well a company
generates profits from its assets.

MUDAJAYA BERHAD

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2022 2021 2020 201 2018

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Net Income -24,465 8,080 -45,276

Total Assets  1,472,981 1,118,24 1,279,646

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(percentage) 100 100 100 100 100

Return on Asset  -2% 1% -4% % %

MRCB BERHAD

2022 2021 2020 2019 2018

Net Income 53,546 6718 -176,568

Total Assets  9,217,049 8,759,823 8,759,823

(percentage) 100 100 100 100 100

Return on 0.58% 0.08% -2.11% - %

Asset  12.11%

The return on assets (ROA) is a measure that evaluates how effectively an organization
utilizes its assets to generate profits. When the ROA is low, it suggests that the company is
not maximizing its assets to maximize earnings. Conversely, a higher ROA indicates that the
company is generating more profits with fewer investments. Mudajaya Berhad experienced
negative ROA values in 2020 (-4%) and 2022 (-2%), indicating inefficiency in income
generation from assets. However, there was a slight improvement in 2021, where the ROA
climbed to 1%. This suggests that the company's ability to generate profits from its assets
improved, although it remained relatively modest. MRCB Berhad, a construction and
engineering company in Malaysia, also had varying ROA figures over time. In 2020, their
ROA was -2.11%, resulting in a loss due to insufficient earnings from assets. However, in
2021, there was a slight improvement to 0.08%, indicating a small positive return on assets.
By 2022, MRCB Berhad's ROA further increased to 0.58%, indicating a modest enhancement
in their ability to generate profits from assets. These changes indicate that MRCB Berhad
faced challenges in 2020 but managed to improve their asset efficiency and profitability in
subsequent years, albeit at a relatively moderate level.

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3.0 Comparative Analysis

comparative analysis refers to the process of evaluating and comparing financial information
from different sources, such as companies or industries, to gain insights into their relative
performance, financial health, and investment potential. It involves examining various
financial metrics, ratios, and trends to assess the strengths, weaknesses, opportunities, and
threats associated with different entities.

Comparative analysis is commonly used in financial research, investment analysis, and

corporate finance. It enables investors, analysts, and financial professionals to make informed

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decisions by understanding how a particular company or industry compares to its peers,

competitors, or benchmarks. It helps in identifying key differences, assessing performance
drivers, and highlighting areas of concern or potential growth.

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3.2 YEAR-TO-YEAR ANALYSIS OF BALANCE SHEET

According to the table above, the comparative analysis for the year 2020 to 2022 for
Mudajaya Berhad. Analysis for the total asset shows inconsistence changes in percentage, for
the year 2020 92.79% was recorded and decreased to 81.56% in 2021. In 2022 shows the
increase to 191.69%. Next for the total equity, for 3 years show the increasing pattern,
83.28% in 2020, 169.43% in 2021 and 230.79% in 2022. For the total liability also shows the
increasing in 3 years which is 64.28% for 2020, 65.66% for 2021 and 175.49% in 2022.

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Lastly, for total equity and liabilities, show the changes of percentage continuous increase
from 92.79%-2020, 81.56%-2021 and 191.69% in 2022.

3.2 YEAR-TO-YEAR CHANGE OF INCOME STATEMENT

2019 2020 CHANGES % 2021 CHANGES % 2022 CHANGES %
RM'OOO RM'OOO RM'OOO RM'OOO

Revenue 393770 347698 88.30% 250898 72.16% 305192 121.64%

Cost of sales -297856 -278412 93.47% -215488 77.40% -257022 119.27%
Gross profit 95914 69286 72.24% 35410 51.11% 48170 136.04%
Other income 272378 17906 6.57% 60846 339.81% 54107 88.92%
Distribution and selling expenses - - 0.00% 0.00% -365 0.00%
Administrative expenses -51636 -25217 48.84% -34964 138.65% -42913 122.73%
Other expenses - - 0.00% -4629 0.00% -2344 50.64%
Finance costs -54159 -51451 95.00% -44430 86.35% -31683 71.31%
Share of profit of equity accounted associates, net of tax -259905 -109189 42.01% 7760 -7.11% 4917 63.36%
Profit/(Loss) before tax -63350 -41591 65.65% 19993 -48.07% 29889 149.50%
Income tax (expense)/credit -17060 -3544 20.77% -6092 171.90% -5424 89.03%
Profit/(Loss) for the year -86090 -45276 52.59% 13901 -30.70% 24465 175.99%
Other comprehensive loss for the year Items that may be
reclassified subsequently to profit or loss: Foreign currency
translation differences for foreign operations 269 221 82.16% -790 -357.47% -15211 1925.44%
Total comprehensive income/(loss) for the year -85821 -45055 52.50% 13111 -29.10% 9254 70.58%

For the income statement, the comparative analysis, year-to-year from 2020-2022 shows
above. Change percentage in gross profit for the year 2020 is 72.24% and decreased to
51.11% in 2021 but increased again 2022 which is 136.04%. Next is change percentage in
profit or loss before tax. For the year 2020 the percentage is 65.65% and decreased in huge
amount in 2021 which is -48.07% and for the next year become stable back, increased to
149.50% in 2022. Lastly, for the total comprehensive income/loss for the year show the
increased and decreased in percentage from 52.50%, -29.10% and 70.58%.

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4.0 COMMON SIZE ANALYSIS

4.1 COMMON SIZE ANALYSIS OF BALANCE SHEET
YEAR 2020 CHANGES % 2021 CHANGES % 2022 CHANGES %
RM'OOO RM'OOO RM'OOO
ASSET
Non-current assets
Property, plant and equipment 26,695 2.17% 23,443 2.33% 170,525 8.85%
Right-of-use assets 44,735 3.63% 39,391 3.92% 41,790 2.17%
Investment properties 51,718 4.20% 50,843 5.06% 49,918 2.59%
Intangible asset 8,673 0.70% 8,053 0.80% 11,604 0.60%
Service concession assets 302,622 24.57% 285,080 28.37% 278,354 14.45%
Investments in subsidiaries - 0.00% - 0.00% - 0.00%
Investments in associates 9,695 0.79% 17,455 1.74% 22,612 1.17%
Other investments 936 0.08% 21,936 2.18% 28,436 1.48%
Deferred tax assets 2,066 0.17% 2,066 0.21% 1,925 0.10%
Land held for property development - 0.00% - 0.00% 11,121 0.58%
Trade and other receivables - 0.00% - 0.00% 17,554 0.91%

Total non-current assets 447,140 36.30% 448,271 44.62% 633,839 32.91%

Current Asset 0.00% 0.00% 0.00%
Service concession assets 0.00% 0.00% 12,565 0.65%
Inventories 130,172 10.57% 112,697 11.22% 110,635 5.74%
Other current assets 152,361 12.37% 152,361 15.16% 156,145 8.11%
Contract assets 51,476 4.18% 19,282 1.92% 65,610 3.41%
Trade and other receivables 136,401 11.07% 120,759 12.02% 683,723 35.50%
Loan receivables 0.00% 0.00% 29,130 1.51%
Tax recoverable 3,047 0.25% 3,405 0.34% 2,922 0.15%
Derivative financial assets - 0.00% 1,197 0.12% - 0.00%
Cash and cash equivalents 311,200 25.26% 146,726 14.60% 231,294 12.01%
Total current assets 784,657 63.70% 556,427 55.38% 1,292,024 67.09%
Total assets 1,231,797 100.00% 1,004,698 100.00% 1,925,863 100.00%
Equity
Share capital 397,730 265.55% 502,054 170.65% 663,450 97.71%
Warrant reserve - 0.00% 38,426 13.06% 4,195 0.62%
Employees' share option reserve 10,278 6.86% - 0.00% - 0.00%
Foreign currency translation reserve 2,866 1.91% 2,095 0.71% - 3,232 -0.48%
Accumulated losses - 297,070 -198.35% - 280,280 -95.27% - 260,269 -38.33%
0.00% 0.00% 0.00%
Equity attributable to owners of the Company 113,804 75.98% 262,295 89.15% 404,144 59.52%
Non-controlling interests 35,970 24.02% 31,907 10.85% 274,844 40.48%
Total equity 149,774 100.00% 294,202 100.00% 678,988 100.00%
Liabilities
Non-Current Liabilities
Loans and borrowings 445,290 41.15% 305,937 43.06% 473,502 37.98%
Lease liabilities 44,508 4.11% 42,573 5.99% 41,868 3.36%
Refundable deposits 2,204 0.20% 2,365 0.33% 2,695 0.22%
Deferred tax liabilities 10,125 0.94% 11,648 1.64% 35,411 2.84%
Total Non-Current Liabilities 502,127 46.41% 362,253 50.99% 553,476 44.39%
Current Liabilities 0.00% 0.00% 0.00%
Loans and borrowings 399,615 36.93% 174,806 24.60% 256,359 20.56%
Trade and other payables 167,018 15.44% 148,420 20.89% 379,856 30.46%
Lease liabilities 1,752 0.16% 1,225 0.17% 2,655 0.21%
Contract liabilities 3,759 0.35% 20,486 2.88% 6,248 0.50%
Tax liabilities 4,938 0.46% 3,036 0.43% 48,283 3.87%
Derivative financial liabilities 2,814 0.26% - 0.00% - 0.00%
Defered income - 0.00% - 0.00% 0.00%
Total Current Liabilities 579,896 347,973 693,399 55.61%
Total Liabilities 1,082,023 100.00% 710,496 100.00% 1,246,875 100.00%
TOTAL EQUITY AND LIABILITIES 1,231,797 1,004,698 1,925,863

According to the table above, using the common size analysis, shows that Mudajaya Berhad
has consistent trend in their non-current asset. This can be proved by the increasing trend in
their property, plant, and equipment from 2020-2023. Even though the increase of percentage

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in small amount but it shows the increase year by year. For the inventories in current asset,
the highest percentage was recorded is 11.22% in 2021.

Meanwhile, the analyse for the total liability in total non-current liability, loans and
borrowing shows the increased and decreased pattern. 41.15% in 2020 and for the year 2022
is 37.98%.

4.2 COMMON SIZE ANALYSIS OF INCOME STATEMENT

0 2019 2020 CHANGES % 2021 CHANGES % 2022 CHANGES %
RM'OOO RM'OOO RM'OOO

Revenue 347698 100.00% 250898 100.00% 305192 100.00%

Cost of sales -278412 -80.07% -215488 -85.89% -257022 -84.22%
Gross profit 69286 19.93% 35410 14.11% 48170 15.78%
Other income 17906 5.15% 60846 24.25% 54107 17.73%
Distribution and selling expenses - 0.00% 0.00% -365 -0.12%
Administrative expenses -25217 -7.25% -34964 -13.94% -42913 -14.06%
Other expenses - 0.00% -4629 -1.84% -2344 -0.77%
Finance costs -51451 -14.80% -44430 -17.71% -31683 -10.38%
Share of profit of equity accounted associates, net of tax -109189 -31.40% 7760 3.09% 4917 1.61%
Profit/(Loss) before tax -41591 -11.96% 19993 7.97% 29889 9.79%
Income tax (expense)/credit -3544 -1.02% -6092 -2.43% -5424 -1.78%
Profit/(Loss) for the year -45276 -13.02% 13901 5.54% 24465 8.02%
Other comprehensive loss for the year Items that may be
reclassified subsequently to profit or loss: Foreign currency
translation differences for foreign operations 221 0.06% -790 -0.31% -15211 -4.98%
Total comprehensive income/(loss) for the year -45055 -12.96% 13111 5.23% 9254 3.03%

The table above shows the common size analysis for the Mudajaya Berhad from 2020-2022.
Revenue is used as the basis for all items in income statement for the 3 years direct. The
change in cost of sale increased for 3 years, 2020 to 2023. Next for the gross profit, it also
shows the decreased in the amount. 19.93% for 2020 and down to 15.78% in 2022.

Moreover, administrative expenses and other expenses, both of it have an up trend for the 3
years direct. But for the profit/loss for the year, it shows an increasing pattern. -11.6% in
2020, 7.97% in 2021 and 9.79% in 2022.

Lastly, for the total comprehensive income/ loss for the year. The inconsistence trend happens
for the 3 years, which is -12.96% for the first year 2020 and increase in 2021, 5.23% but
decreased again in 2022 which is 3.03%.

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5.0 RECOMMENDATION

As we can see from the ratio for Mudajaya Berhad, most of the ratio for three year is
good. Example current ratio is increasing year by year. This means that Mudajaya Berhad is
successfully managing their short-term financial obligations. My recommendation is to
maintain their liquidity ratio because have a better liquidity ratio means that Mudajaya
Berhad have a health financial and its capacity to handle short-term financial challenges.

Furthermore, Mudajaya Berhad activity ratio shows the inconsistency for the 3 years. For
example, inventory turnover for Mudajaya Berhad is in increasing and decreasing pattern.
Mudajaya Berhad should focus on managing their inventory effectively. They should
optimize inventory level properly by balancing customer demand and the cost of holding
inventory.

Next is for leverage ratio shows the improvement pattern. Even though for the 2020
company’s asset are funded by loans instead of equity because the value is more than one.
Mudajaya Berhad need to reduce their debt and increase their income by look the opportunity
to boost their income.

Lastly, for profitability ratio especially net profit margin. The ratio for 2020 and 2022 is
negative and that means the production cost costs are more than the total revenue. Mudajaya
Berhad spending more money than making it. The company need review their pricing
strategy by ensure that their services are priced appropriately to cover cost and generate a
healthy profit margin.

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6.0 CONCLUSION

In conclusion, based on the financial statement analysis of Mudajaya Berhad, it can be

concluded that the company has been performing well in terms of liquidity and profitability.
The company's current ratio has been increasing year by year, indicating that Mudajaya
Berhad is successfully managing its short-term financial obligations. Additionally, the
company's profitability ratios such as return on assets (ROA) and return on equity (ROE)
have been consistently above industry averages for the past three years.

However, there are also areas where Mudajaya Berhad can improve its financial performance.
The company's activity ratios such as inventory turnover have shown inconsistency over the
past three years. Furthermore, the company's debt-to-equity ratio has been increasing over
time, which may indicate a higher level of financial risk.

Overall, this financial statement analysis provides valuable insights into Mudajaya Berhad's
financial performance and highlights areas where the company can improve to achieve long-
term success. By implementing these recommendations and continuing to monitor its
financial performance closely, Mudajaya Berhad can position itself for sustainable growth in
the future.

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7.0 REFERENCES

 MUDAJAYA BERHAD 2020, 2021 and 2022 Annual Report from mudajaya.com
https://www.mudajaya.com/Annual-Report/

 Drobnič, S. (n.d.). Comparative Analysis. Comparative Analysis | SpringerLink.

https://doi.org/10.1007/978-94-007-0753-5_492

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8.0 APPENDICS

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