Accounting Assignment

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Component One

Introduction to organizations
SP Setia
SP Setia is also famous with the name of Bursa Malaysia after it get itself registered in the stock
exchange. However, the company is operating since 1974 (Setia Bhd Group, 2017). The
company deals in different products which varies and offers it an edge over competitors. It is
also recognized as leading real estate company which offers portfolios including luxury enclaves,
high-rise residences, retail and commercial which also includes mixed developments. This is an
award winning company that is famous for its quality and innovation that it brought in its
prodicts within Malaysia and outside this region. The company is best in producing Luxury
homes to High-rise residences, eco-homes, commercial and retail along with integrated
developments.
Vision

Mission

Financial Highlights

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SP setias revenue has been increasing yearly however, it dropped in 2016. The earning before
tax as well as profit attributable to the owners of SP Setia also decreased. In addition the equity
attributable to owners also increased that depicted investments made within the company.
Moreover, the quarterly revenue of the group, its earning before tax and profit attributable to
owners also rose that indicated good performance from the end of SP Setia in 2016.

Business Activities and Development

The company has been very settled in three of the key monetary focuses of Malaysia. They are
known as Johar Bharu, Penang and Klang Valley including Sabah. The worldwide business of
SP Setia has now come to five nations that are Australia, United Kingdom, China, Vietnam and
Singapore. In 2016, SP Setia has beaten its modified deals focus of RM3.5 billion by
accomplishing the aggregate deals total assets of RM3.82 billion. 92% of the deals was gotten
from the neighborhood extends that have added to RM3.5 billion for the 2016 money related
year. Klang Valley is the principle noteworthy spot as it has brought offers of worth RM2.64
billion in the aggregate deals. These deals primarily originate from the advancement of Setia
EcoHill 2, Setia Eco Templer, Setial EcoHill, including the Setia Alam and KL Eco City.
RM860 million worth of offers was contributed from Northern, Eastern, and Southern part.

Sunway Berhad
Sunway Berhad is one of the best and largest Malaysian group that seeks to mainly focus on
property, construction, healthcare as well as education. The company has presence in other parts
of the world except Malaysia, it operates in 50 nations having 15000 team members that work
together. The entire team focuses on ensuring sufficient quality standards via its 12 divisions
including Real Estate Investment Trust, healthcare, manufacturing and trading, hospitality, retail,
leisure, construction etc. The company has its own special model that is efficient enough to allow

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it to compete with the rivals by enabling it to sustain its quality standards that supports the
business objectives. Some of its divisions includes Sunway Iskandar in Johar, Sunway City in
Selangor, Sunway City Ipoh which extends up to five thousand acres.
Vision

Mission

Financial Highlights

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The profit before tax of Sunway Berhad is RM859m in 2016 compared to RM930.4m in 2015.
Moreover, in 2015 the revenue of the company was RM4448.4m and in 2016 the revenue was
RM4655.6m. the justification for the increase in revenue is crucial that is why, it is elucidated
that revenue has been increased due to positive performance of Sunway Berhad within different
divisions like manufacturing and trading, property development, healthcare divisions,
manufacturing and trading, etc. the companys earnings were low from the revaluation of the
investments within its properties that includes Sunway REIT, the profit from this was quite
lower.

In comparison to the year of 2015, it can be said that the fair value gains were RM91.3m that
declined in 2016. In 2015, the company performed well because its realized capital gains were
RM22.9m that is backed by the sale of Sunway Biz Hotel as well as Wisma Sunway which was
sold to Sunway RIET in 2015. As compared to other financial years, the Sunway Berhad
performed wuite well in 2016 as the revenue and all other aspects were far better.

Business Activities and Development

Sunway Group is a very much differentiated business that is incorporated vertically and on a
level plane by remembering the essential interests into property and development. The key
business exercises and units that are center extends from accommodation, recreation, exchanging
and fabricating, quarrying, medicinal services material generation. Each of the fragment of
Sunway Group is the main business in their specific field. Along these lines, the steady stream of
income from each of the business legitimizes the money related execution for each of the year.
This gives the quality to the gathering to manage amid the down cycles in the separate business

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divisions. In any case, the gathering ceaselessly endeavors to accomplish higher acquisition
funds, operational effectiveness incorporating the treasury administration so as to add to more
comes back to every one of the partners.

Industry Analysis Overview of Property Market

Every industry plays a crucial role in the economic development of the country so as the role of
Malaysian property industry. However, it is also mentioned by few scholars that the role of
property market is not clear. It is also argued by few that property market seeks to regulate the
economy (Razak Bin Ibrahim et al. 2010).

Figure 1 Comparison - Malaysian Property Market

Among the major monetary segments, the significance of property market is one of a kind paying
little heed to whether the nation is developed, underdeveloped or developing. For example, the
Glomac Berhad has been profitable association and that is the greatest quality one association
could have. For this reason, it could use the income to grow the business further. In any case,
having low earnings per share and lower existing could be a noteworthy shortcoming. The most
critical and the huge open door for Glomac is that as of now the property and development
market of Malaysia is expanding at a quick pace. It is in this way the best chance to secure as
more contracts as would be prudent. In the meantime, the expansion in the outside direct
ventures (FDI) implies that Glomac Berhad could undoubtedly access to such open door. Then
again, the expansion rate is expanding and this is the potential risk as it could raise the prices of
such components that would build the operating and direct expenses of the business industry is
subjected to quarterly and yearly statements of national records. This very industry seems more
than once in the national records: GNI, GDP and GFCF. The outputs are being considered by net
output, capital development as well as added value. The greater part of GFCF comprises of
property outputs. The homes, workplaces, streets, industrial facilities, and shopping centers are
all crucial elements that leads to the output of property industry among other capital or venture
goods (Abdullah et al. 2004). The list below shows the uses of property industry:
Generates employment for locals
Redistribution and generation of income

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 Tool for accomplishing sustainable development
Contribution to economy in the form of GDP and GNI
GFCF (Gross Fixed Capital Formation)
Offers output to industries

Figure 2 KUALA LUMPUR PROPERTY TRANSACTIONS

Figure 3 the real GDP and Inflation Rate

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Figure 4 the inflation rate in surrounding countries

Malaysia is effectively working towards accomplishing a high-wage status by 2020. This

includes concentrated change of the financial structure. The legislature has illustrated a monetary
guide to change the nation keeping in mind, the end goal to be perceived as a high-income
country. Since independence, the economy of Malaysia has also witnessed different five-year
plans for sustainability and growth. For attaining this objective, the average growth of 6.0 % in
GDP in the 10th plan period.
4.7% was the growth of Malaysian economy in 2013 however; all the sector has experienced a
positive growth. In the case of supply, it is also mentioned that service and manufacturing sector
played a crucial role. The double digit growth was also experienced by the Malaysian economy
that will be 18.6%. This is basically accountable and backed by the strong developments in
residential sector of the economy this is further backed by the civil engineering projects and
infrastructure developments. There are in total four sector that defines property sector of
Malaysia. This includes civil engineering, special trade sectors and residential buildings.

The Malaysian Property Market Outlook

Global economic climate being volatile, the property market in Malaysia is quite impressive. The
industry has experience a steady growth that is defined by 6% as its growth status towards 2020
and beyond. The role of Malaysian private sector is increasing that is why it is predicted that the
government will not intervene and reduce its investment. It is considered that the growth will
continue and private sector will play a crucial role in it. That is why by 2020; new privatization
policies will be created. In addition to it, it has been stated that there will be more collaboration
and equitable risk sharing in the growth and strategies among both public and private sectors. On
the other hand, as mentioned by Sambasivan & Soon (2007), the tendering process will be quite
competitive especially in engineering process as well as PPP system that are likely to dominate
procurements however, local contractors are the entities that will be dominating the property
industry of Malaysia. It is also assumed that the dominance of services and manufacturing
sectors will be high as they will contribute to the economic growth.

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Various projects are in process or at their advanced stages that have contributed to the country
and are still contributing however, there are some of the projects that are still in process and are
deemed to be mega projects which will also spur economic growth (Bin Zakaria et al. 2013). The
list given below depicts some major projects in Malaysia:
Sarawak Corridor of Renewable Energy (SCORE)
Northern Corridor Economic Region (NCER)
Second Penang Bridge
Sabah Development Corridor (SDC)
KLIA 2
Some of the major projects that are in line includes expansion of the KTM rails, LRT extensions,
and the HSR, MRT, Pahang-Selangor Raw Water Transfer and Pengerang projects. By the end
of 2009, it is also stated that RM 245.49 billion were kept aside for the completion of Sarawak
Corridor of Renewal Energy, Eastern Corridor Economic Region, Iskandar Malaysia, Sabah
Development Corridor etc.

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Financial Analysis and Ratios
The data for financial analysis has been extracted from the financial statement of respective
companies. The extract of financial statements has been attached at the end of this document for
the ease of reader to refer.

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Capital Structure
Graham, Leary and Roberts (2015) indicated that capital structure of the organization is made up
of sources of finance that company arranges to run the company. The sources are either debt or
equity. Debt and equity are both together in charge of the development of the capital structure.
The debt bookkeeping to capital structure can be anything including long haul liabilities, bond
issued and so on. Though equity can be as held investors own money, regular stock and so forth.
The current case examines that the capital structure of SP Setia and Sunway Berhad where a debt
to capital ratio is of 28% and 27% respectively. Studies suggested that higher debt ratio could be
risky for any organization. The above analysis demonstrate that SP Setia is marginally less
secure than Sunway Berhad, which makes SP Setia somewhat more good for the investors to put
their assets into. In spite of the fact that interests in Sunway Berhad are liable to somewhat
higher risk yet a few investors would at present put resources into it on the premise of high
rewards that accompany the higher risk.
Graham, Leary and Roberts (2015) suggested that higher debt is a factor prompting higher
interest costs and shows a resulting diminish in profit to be exhausted, yet at the same time debt
amplification is not prescribed and is considered not great. Comparative is the situation of SP
Setia, where the problem could be the interest consumption would bring about the consequent
development of the higher expenses. This expanded interest expense is undesirable for the
association itself as well as results in the failure of the organization's stakeholders who expect to
get a higher benefit for their investment while in the above situation the resultant would be a
diminishing return on each share.

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Profitability
Profitability refers to how well the organization is in bringing the positive returns from the sales
revenue. In this case, the both of the organizations has been profitable. A gross profit comparison
of SP Setia and Sunway Berhad shows the later to be in a clear lead with its gross profit margin
at 34.28% while SP Setia at 29.08%, which shows the better performance of Sunway Berhad. A
gross profit examination of SP Setia and Sunway Berhad demonstrates the later to be in an
unmistakable lead with its gross profit margin at 34.28% while SP Setia at 29.08%, which
demonstrates the better execution of Sunway Berhad's management. When contrasting the
operating margins a repudiating result was could be viewed as Sunway was 26.32% while SP
Setia was 15.36% which gave an unmistakable perception of positive management of
backhanded expenses by SP Setia in contrast with Sunway, this as well as the more prominent
net profit margin of SP Setia over Sunway signals a more noteworthy and better administrative
execution level there at SP Setia.

Liquidity
Liquidity alludes to the degree where a benefit can be instantly purchased or sold into the market
without influencing the cost of advantage (Kiyotaki and Moore, 2012). It demonstrates the
degree through which an association can meet its budgetary commitments against the fluid assets
accessible. There are sure recipes to research the liquidity of any association that are said in the
table above. The current assets for SP Setia is 1:2.17 when contrasted with Sunway Berhad that
is 1:1.20. It demonstrates SP Setia have twofold assets to settle its budgetary commitments while
Sunway has practically the equivalent assets to settle its liabilities or money related
commitments. Though, the speedy ratios is same as the current ratio with the exception of the
way that it don't take inventories that is considered as moderate moving assets. In this way,
speedy ratio is more favored over current ratio. The brisk ratio for SP Setia and Sunway is 1:1.97
and 1:1.11 individually.
So also, obligation to assets ratio uncovers the leverage of the organization (Kiyotaki and Moore,
2012). It considers the total liabilities (obligation) when contrasted with total assets of the
organization. The reason for existing is to confirm how much leverage the organization have i.e.
settling the total liabilities through the total assets. For this situation, the obligation to assets ratio
is 0.21 and 0.40 separately for SP Setia and Sunway Berhad. SP Setia is finished up as more
leverage contrasted with Sunway Berhad

Efficiency
An assortment of formulae which have been utilized to figure this ratio are in the previously
mentioned table, which decide the high ground of SP Setia in this ratio against Sunway Berhad,
as it is more effective in debt accumulation than Sunway. Another reality worth seeing is the
solidness in the installment technique and working capital directions, which can be controlled by
the way that a 142 days period of credit installment in SP Setia and a 161 days credit installment
period in Sunway Berhad is taken after demonstrating the seriousness in SP Setia.
Next in line is the stock direction which alludes to the inventory substitution by more current one
in the organization and is called inventory turnover ratio. The higher this turnover ratio the more

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it supports the organization this higher ratio will bring about the successive change of old
inventory by new one. Watching this factor in the considered associations we can see that SP
Setia has an inventory turnover period of 91 days contrasted with the period of 80 days for
Sunway.
Another efficiency measuring ratio utilized by associations is the advantage turnover ratio the
recipe for its calculation is to separate the net sales and the total number of assets of the
organization. The better execution of the organization is judged by the height of the benefit
turnover ratio. For the considered organizations, SP Setia has 26.5% and Sunway Berhad has an
advantage turnover ratio of 24.8%, the high ground of SP Setia in this ratio decides the way that
its management has been more careful in accomplishing the net income in contrast with that of
the Sunway who couldn't perform well. This ratio is considered as a standard of an organization's
execution, the acquired ratios are both very ready to the pull in ventures from the market, yet the
expansion of this ratio is an everlasting assignment for the organizations.

Market Performance
The most widely recognized parts of a market performance ratio are; per share income, ratio
amongst price and income, dividend yield ratio. Per share income known as gaining per share
(EPS) is the income created on single share issued. For the two associations, SP Setia has gaining
per share of 0.315RM while Sunway Berhad had procuring per share of 2.478RM, this
reasonable distinction checked Sunway as better than SP Setia in this ratio which can be a factor
in drawing in shareholders as they are looking for such associations where they can get an
exceptional yield for their speculations.
A ratio which is utilized to quantify the organization's worth on the premise of a connection
between the price of a share and the acquiring that is gotten on that solitary share, is known as
the price to earnings ratio. This is the ratio that the as of now partners and the individuals who
wish to put resources into the association use to gauge the price to earnings ratio of that
association in contrast with the entire industry or some particular association in that industry.
The table above demonstrates that SP Setia has a price to earnings ratio more prominent than
Sunway Berhad's which makes it a more appealing alternative among the two because of the way
that it has a more return accessible against each share.
Next in line is the dividend yield, which alludes to the dividend paid by the organization in
connection to the periodic share price. This dividend yield ratio for both SP Setia and Sunway is
practically same. A more oversimplified importance of this is the sum that a partner receives
consequently to the price paid by him for obtaining the share. Long story short, dividend yield
the turnover for stock speculation and is utilized by contributing gatherings to assess the contrast
between different associations in the market.

Recommendations
To the extent profitability is concerned, both of the organizations are gainful. Notwithstanding,
Sunway Berhad's working benefit should be more as the gross overall revenue was near 34%. It
speaks to that the management demonstrated their inefficiency in dealing with the costs of the
business. Therefore, it is prescribed for the management to set up better costing framework all

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through the association, for example, presenting activity based costing (ABC) which has as of
late helped a great deal of organizations to drop down their working expenses.
The liquidity indicates how rapidly association can use its assets to settle down the liabilities. For
this situation, both of the associations are sufficiently fluid to settle the monetary commitments
serenely. Nonetheless, the debt to total assets for Sunway is around 40% that is some way or
another critical. It could occupy potential investors before they put into the organization. In this
way, it is prescribed to the management to diminish down the debt to show appealing debt to
total assets ratio to the investors and in addition to the budgetary foundations.
Working capital is vital piece of the business keeping in mind the end goal to accomplish proper
cash flows. For this situation, Sunway Berhad gives more leverage to the debtors (customers). In
any case, giving long reimbursement days could prompt working capital issues since Sunway
needs working capital about each 80 days to acquire the new inventory. Along these lines, it is
prescribed for Sunway to build up certain working capital approaches to hold from the customers
snappy to maintain a strategic distance from any cash flow issues later on.
Potential and current investors utilize showcase esteem ratios to perceive how an organization's
present share price stacks up to its different measurements. Furthermore, showcase esteem ratios
give management a thought of what the association's investors think about the association's
performance and future prospects.
Present and potential investors use advertise performance ratios to guarantee how the present
share price of organization stacks up to specific measurements. Moreover, it offer thought to the
management about what the investors of firm think about organization's performance and the
future prospects. In this way, from the point of view of investors, it is prescribed to put resources
into Sunway Berhad with a specific end goal to amplify the shareholders' riches as it gives more
earnings per share contrasted with SP Setia. Be that as it may, the P/E ratio can divert the
investors as P/E alone for a specific organization does not proper legitimizes the performance.

Conclusion
Basically, a simple perspective of the Malaysian market has demonstrated incredible measure of
development and advance in the year 2016, this development alludes to the inflow of both
universal and neighborhood ventures this inflow features the way that the industry was on the
way of advance so the quantity of contributing gatherings additionally developed. The premise
shaped in the year 2016 has lit a light of advance and success to proceed in the year property
showcase in 2017. A gander at the Malaysian economy in the previous couple of years has
demonstrated a moderate development with a clear low level of GDP, the ascent in swelling has
given a lift to the property prices which has been very ideal as to the property merchants. Every
ratio has been painstakingly drawn and figured with the formula utilized as a part of their
arrangement likewise being composed alongside them. These ratios have given a correlation
between the two considered associations; Sunway Berhad and SP Setia. Last yet not the
minimum the proposals have been put down as for the investigation of each of the association
remembering the perspectives of shareholders, organization management and any potential and
existing investors.

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 Component Two
Company Profile of Glomac Berhad
Glomac Berhad
Another real estate company that is famous in Malaysia is Glomac Berhad. It basically sells
commercial and residential properties including mixed development properties and townships
etc. further, building management services and property investment are also considered by
Glomac Berhad. It also offers car park management and consultancy services via its subsidiary
that is named as Prominent Excel Sdn Bhd. It has operations expanded in Thailand and Australia.
It manages numerous car park systems in Malaysia as well.
Vision
The vision around which Glomac Berhad revolves shed light on improving the quality of life by
offering the clients a better place for work and living. The company seeks recognition from its
customers, employees as well as share holders and wants to be a world-class property developer
Mission
Moreover, the mission of Glomac Berhad is to be such a dealer that offer extensive levels of
quality for satisfying customers by offering quality products that have value for money. The
company is dedicated, innovative and passionate enough to accomplish the goals of the
company.

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Financial highlights

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Since, 2014, 2015 and 2016 have been quite crucial for Glomac as it face fluctuations in the
revenue. The revenue was increased to RM616603000 in 2016 from RM473254000 in 2015 that
showed an increase and a positive change. Earning before tax has been increased as well which
declined sharply in 2015 and 2016. Furthermore, the highest profit of the company was in 2014
that amounted to RM108380000.

SWOT Analysis
Strength
Glomac not always relies on the single or selected businesses in order to have good or increased
market share because it has well diversified business and product portfolio. In total four divisions
are being associated with Glomac including property development, property investment and
others and lastly, construction. However, the focus of construction is also on the mixed
development projects as well as township projects. In addition to it, construction division of
Glomac offers services in the form of contracting within the Malaysian region. Moreover, it also
seeks to undertake commercial and residential development of the projects as well as turnkey
projects too. On the other hand, Glomac also contemplates investment in the buildings and land
that are looking for investment options. Similar to this, the other divisions of the company, seeks
to focus on the car parking management and also performs the consultancy services which range
from pre-operations to making it operational fully.

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Weaknesses
The financial position of the company is very important. The solvency ratio of the company as
well as its financial leverage both represents the willingness of company to repay and borrow.
Glomacs solvency position is not good as its debts are more than its equity. At the end of
FY2013, the recorded debt-to-equity ratio was 0.6 percent in comparison to the competitors of
Glomac that are Gamuda and AMCORP. These two entities have the debt-to-equity ratio of 0.5
and 0.3 respectively. Converse to this, it has been pinpointed that the debt to equity ratio
experienced an increase decrease of 21.9% that was MYR506.8 million in comparison to
MYR415.68 million in 2012. In order to interpret this, it can be said that limited solvency of the
company explains that the firm has been found utilizing higher financial advantage and it has
quite weak position in terms of equity that seeks to explain the lower creditworthiness of
Glomac.

Opportunities
There are various strategic objectives set by Glomac that helps in sustaining and accomplishing
its business growth. The company has made significant investments in various sectors and has
purchased a land worth MYR66.8 million that is 192 acres in Dengkil. This will be used by the
home buyers who want to have property at the affordable price. In addition to it, in February
2013, further purchases made by Glomac are in the form of acquiring 200-acre leasehold parcel
that is located next to Bandar Saujana Utama and the price paid was MYR44.0 million. In
addition to it, further the company also acquires Magnitud Teknologi Sdn. Bhd and Anugerah
Armada Sdn Bhd, these are basically the property development companies. On the other hand, it
has been mentioned as well that these are the strategic initiatives taken by the company for
sustaining its business operation for generating more profits in comparison to its rivals.

Threats
Companies while operating in the tough competition tend to face various threats from the end of
their rivals as there are various fluctuations in the financial position of the company. In the case
of Glomac, it is stated that the company is likely to face a slight increase in its operational costs
that will be due to the change in volatility within its input costs that will be in the form of raw
materials and components like cement and steel materials within other parts of the world will
surely affects its functioning. There were price fluctuations in carbon steel in June and December
2013. The global price was US$ 686 per ton in June that rose to US$ 716 per ton as recorded in
December 2013. On the other hand, the crude oil also experienced severe fluctuations in the
prices. This was increased to US$97.91 per barrel in 2013 from US$ 94.12 per barrel in 2012.
However, the volatility in the pricing strategies lead to a secure that helps in retaining the
business. In addition to it, this is also mentioned that this increase in the costs seeks to reduce the
margin of profits as well as impose a huge impact on the sustainability of the company.
In addition to this, the labor issues are also aligned with the Malaysian construction sector as
there is a shortfall of labors. Moreover, there found cheaply available foreign migrants that also
contribute to the development of sectors. For meeting the shortage and availability of employees,
the sector has concentrated on the program that is named as Amnesty program started in June
2011 in order to legalizing the foreign labors to work and meet the labor shortage. In Malaysia,

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there is also a shortage of qualified sub-contractors and trained personnel as well which prohibits
the functioning of and completion of complex construction projects. On the contrary, another
factor that is quite challenging is the aging workforce which further intensifies the situation.
Since 1997, the trainings are being offered and Construction Industry Development Board has
been taking continuous efforts, still they are reluctant to meet the gap existing between the
demand and supply of the employees.

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Financial Analysis and Ratios
The data for financial analysis has been extracted from the financial statement of respective
companies. The extract of financial statements has been attached at the end of this document for
the ease of reader to refer.

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Capital Structure
For the situation being viewed as a 19.40% off the capital structure of Glomac Berhad is its debt
parcel which demonstrates the organization to be very appealing in the perspective of the
contributing gatherings because of the way that their speculations will have a lower risk factor
included. Additionally favorable position of a low debt part would be the higher profit post
taxation as this would bring about lower expenses identifying with enthusiasm being paid to
banks and other business centers. Associations that have high sums debts are very negative for
the investors as their speculation are at a risk in such places

Profitability
The financial calculations done above are a proof that Glomac Berhad's operations are to produce
revenue, the three profit margins; operating gross and net for the organization are a particular
19.85%, 34.32% and 13.89%. In the light of these figures obviously the association has managed
issues and issues and performed well in controlling its exercises and procedures. When
processing the gross profit margin just the immediate variable cost and settled cost per unit is
considered while in the figuring of the operating profit margin the in a roundabout way
connected cost are thought about. Said that the turnover shape equity is known as profit for
equity and is the speculations made by the proprietors. The Glomac Berhad's arrival on equity is
at a satisfactory 8.15% which is very worthy for the two specialists and management.
Many scholars commented that the adequacy of a substance in using and dealing with its assets
to create revenue is known as the arrival on assets, at Glomac Berhad the arrival on assets was
4.35% which is satisfactory. Despite the fact that this level is satisfactory yet at the same time the
association needs to grow better approaches to expand this with a specific end goal to make more
lucrativeness for financial centers and associations that arrangement in the comparable business
ranges as Glomac does.

Liquidity Ratios
The liquidity demonstrates how adaptable in the association as far as its present assets to settle
the present liabilities. The present ratio for Glomac Berhad for the financial year 2016 is 1:1.38
speaking to that it can easily conceal its present liabilities. Then again, the fast ratio is same as
the present ratio with the exception of that it doesn't produce results of the inventory
subsequently giving more sensible outcomes. Brisk ratio for Glomac Berhad for the financial
year 2016 is 1:1.196 that shows it can in any case effectively conceal with its present liabilities.
The more the fluid association, the better for the management and the financial establishments.
The banks and the financial establishments are worried about positive brisk or current ratio since
it help them to legitimize the financial position of association and at exactly that point could
issue loan regarding long haul debentures.
The debt to total assets for Glomac Berhad has been finished up as 0.128 or 12.8%. The debt to
total assets is again critical segment of financial investigation as it causes the partners to
effortlessly comprehend the financial positive by taking a gander at these measures. There are
just 12.8% of debt against its total assets that is very modest bunch for Glomac Berhad

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particularly when it is thinking about to extend the association and require capital through debt.
The financial establishments would be urged to loan the long haul loan.

Efficiency Ratios
The efficiency ratios indicates how compelling the association as far as dealing with its interior
issues. In such manner, it uncovers about the how much of the time cash in coming in and
leaving the business. The account receivable days for Glomac Berhad is 34days while it took
125days to pay back to the creditors that implies holding the cash in the business for long.
Nonetheless, the inventory days are 108days implying that there is cash outflow each 108days to
bring the new inventory. By and large, it demonstrates the working capital is sound for Glomac
Berhad.

It can likewise be reasoned that with regards to gather installment from the debtors, the Glomac
Berhad may have stricter recuperation approaches while then again paying to creditors after
124days consequently cash inflow to the business for longer period. Asset turnover ratio of 31%
is very great uncovering that assets are used viably and productively by the management.

Market Performance Ratios

The market performance ratios has been computed for Glomac Berhad and appeared in the table
above. Earnings per share for Glomac Berhad is 0.118 that uncovers that on each issued share,
the earnings is RM0.118. So the current shareholders can utilize this ratio to rapidly compute the
amount they procure on each of the share they have. While, the price to earnings ratio
demonstrates the examination of existing with earnings per share. All things considered it is
5.912 that can be utilized by the investors to think about EPS between specific associations in a
similar industry.
Then again, the dividend yield ratio is likewise computed and the formula is appeared in the
table over that clears up that it looks at. If there should be an occurrence of Glomac Berhad, the
dividend yield ratio is 0.028. Once more, such ratio are fundamentally utilized by the investors
and the current shareholders to contrast it and different associations and industry. Particularly
those investors who have interest in a few association, the need to expand their dividend yield on
each of various shares they have in general.

Recommendations
The present capital structure of Glomac Berhad which is at 19.40%, shows the debt to be at a
lower level. This outcomes in bring down risk of the organization towards banks and other
financial foundations and therefore causes the organization to accomplish higher profitability.
The capital structure makes Glomac a decent choice for contributing gatherings who mean to
accomplish a less risk factor on their speculations.
At the point when profitability is concerned Glomac has advanced a significant appealing
viewpoint with its operating, gross and net profit margins being on an expansion. However the
management at Glomac needs to execute more successful costing frameworks which will enable

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it to chop down different expenses and furthermore to help improve performance from the top to
the bottom of the organization's order.
If there should be an occurrence of liquidity, the organization in its present state is considered
adequately fluid and can settle its liabilities easily. Recommendations in regards to liquidity are
that it ought to keep up these ratios with a specific end goal to draw in financing foundations so
it can have plentiful capital to put resources into the consistently developing property market to
guarantee a splendid future.

Conclusion
Glomac Berhad has been profitable association and that is the greatest quality one association
could have. For this reason, it could use the income to grow the business further. In any case,
having low earnings per share and lower existing could be a noteworthy shortcoming. The most
critical and the huge open door for Glomac is that as of now the property and development
market of Malaysia is expanding at a quick pace. It is in this way the best chance to secure as
more contracts as would be prudent. In the meantime, the expansion in the outside direct
ventures (FDI) implies that Glomac Berhad could undoubtedly access to such open door. Then
again, the expansion rate is expanding and this is the potential risk as it could raise the prices of
such components that would build the operating and direct expenses of the business.

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Appendices
Financial statements of Glomac Berhad

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Financial statements of Sunway Berhad

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31
32
Financial statements of SP Setia Berhad

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