ASSIGNMENT

Introduction to Finance
Group Assignment Report (30 %)
Course Code : BAFD2013

GROUP MEMBERS
NUR ELLISY BALQISYA (MC240126307)
SYARIFAH NURUL HANIZA (MC240126426)
NUR ALIAA NATASHA (MC240126609)
NURUL FAZREENA (MC240125795)

PART 1
KAWAN FOOD BERHAD
Kawan Food Berhad is a prominent Malaysian company established in
1994, specializing in the production and distribution of frozen food
products. The company is headquartered in Shah Alam, Selangor,
Malaysia. Kawan Food's core business revolves around manufacturing
a diverse range of frozen products, which includes paratha, chapati,
naan, and other traditional and ethnic foods. Their product portfolio
caters to both retail and food service sectors, emphasizing
convenience, quality, and authenticity in their offerings.

The company initially started with a focus on paratha, a type of

flatbread that is a staple in South Asian cuisine. Over time, Kawan Food
expanded its product range to include a variety of frozen food items
such as dumplings, samosas, and spring rolls, aiming to provide a
comprehensive solution for customers seeking ready-to-eat or easy-to-
prepare meals. The company's products are designed to cater to
diverse tastes and preferences, reflecting both local and international
culinary influences.

Kawan Food Berhad is well-regarded for its commitment to quality and

innovation. The company operates with a stringent quality control
system to ensure that all products meet high standards. They utilize
modern technology and processes to maintain the freshness and taste
of their products. Additionally, Kawan Food places a strong emphasis
on research and development, continuously exploring new product
lines and improving existing ones to meet changing consumer
demands.

In recent years, Kawan Food has expanded its market reach beyond
Malaysia, exporting its products to various countries in Asia, Europe,
and the Middle East. This international presence reflects the company's
successful efforts to tap into global markets and cater to a broader
customer base.

The company is publicly traded on Bursa Malaysia under the ticker

symbol "KAWAN," making it accessible to investors interested in the
food manufacturing sector. Kawan Food's growth and market presence
underscore its role as a significant player in the frozen food industry,
driven by a commitment to quality, innovation, and customer
satisfaction.
ANNUAL REPORT LINK
https://kawanfood.com/wp-content/uploads/2024/05/Kawan-Food-AR-
2023.pdf

LIQUIDITY

2023 2022
237,104,897 223,338,825
CURRENT RATIO 54,585,229 51,239,850 GOOD
=4.3x =4.3x

2023 2022
QUICK RATIO 237,104,897- 223,338,825-
36,429,562 42,033,804 GOOD
= 200,675,335 = 181,305,021
54,585,229 51,239,850
=3.67x =3.53x

 Current ratio for year 2023 was 4.3x , for year 2022 was 4.3x . It
showed that the current ratio for both year is good .
 Quick ratio for year 2023 was 3.67x , for year 2022 was 3.53x . It
showed that the quick ratio for year 2023 is good compared to year
2022
 Both ratio in liquidity showed that Kawan Food Berhad are having good
ability to pay short-term obligation on time.

ASSET MANAGEMENT

2023 2022
INVENTORY TURNOVER 205,148,099 191,684,230
36,429,562 42,033,804 GOOD
=5.63x =4.56x

2023 2022
RECEIVEABLES 287,215,315 274,761,875
TURNOVER 78,682,061 72,547,213 BAD
=3.65x =3.79x
 2023 2022
TOTAL ASSETS 287,215,315 274,761,875
TURNOVER 460,756,709 460,810,382 GOOD
=0.6x =0.6x

2023 2022
AVERAGE 287,215,315/360 274,761,876/3
COLLECTION PERIOD =797820.3194 60
78,682,061 =763227.4306 GOOD
797820.3154 72,547,213
=98.62 DAYS 763227.4206
=95.05 DAYS

DEBT MANAGEMENT

2023 2022
67,590,948+3,560 63,942,558+6,398,
TOTAL DEBT ,015 772
RATIO =71,150,963 =70,341,330 GOOD
460,756,709 460,810,382
=0.15x100 =0.15x100
=15% =15%

2023 2022
TIMES 33,780,811 39,949,572
INTEREST 460,756,709 312,323 GOOD
EARNED RATIO =162.6X =127.9x

PROFITABILITY

2023 2022
NET PROFIT 30,128,633 38,477,738
MARGIN 287,215,315 274,761,738
=0.10x100 =0.14x100 GOOD
=10% =14%
 2023 2022
RETURN ON 30,128,633 38,477,738
ASSETS 460,756,709 460,810,382 BAD
=0.06x100 =0.08x100
=6% =8%

2023 2022
RETURN ON 30,128,633 38,477,738
EQUITY 393,165,633 396,867,824
=0.07x100 =0.09x100 BAD
=7% =9%
 F&N (FRASER & NEAVE)

Fraser & Neave Holdings Bhd (F&N Malaysia) is a prominent and

historic beverage and dairy products company in Malaysia, with roots
dating back to 1883. Initially established as a small-scale beverage
business, F&N Malaysia has grown exponentially over the decades to
become a key player in the food and beverage industry. The company
is a subsidiary of Fraser and Neave, Limited, which is headquartered in
Singapore and has a significant presence across Southeast Asia. F&N
Malaysia boasts a diverse and extensive portfolio of well-loved brands
that have become household names. Among these are 100PLUS, a
popular isotonic drink, F&N carbonated soft drinks, Seasons ready-to-
drink teas and Asian drinks, and Magnolia dairy products, including
milk and ice cream. The company's products cater to a wide array of
consumer tastes and preferences, ensuring that there is something for
everyone.

The company operates through several key segments: soft drinks,

dairies, and food services. In the soft drinks segment, F&N Malaysia
has consistently introduced innovative products and flavors to keep
pace with consumer trends. The dairies segment offers a variety of
nutritious dairy products that are both delicious and healthy, while the
food services segment provides quality ingredients and solutions to the
hospitality and catering industries.

Innovation and quality are at the core of F&N Malaysia's operations.

The company invests heavily in research and development to
continuously improve its products and processes. This commitment to
innovation has led to the introduction of numerous new products and
improvements to existing ones, helping F&N Malaysia maintain its
competitive edge in the market. Sustainability is another cornerstone
of F&N Malaysia's business strategy. The company has implemented a
range of initiatives aimed at reducing its environmental impact, such
as optimizing resource usage, minimizing waste, and promoting
recycling. F&N Malaysia is also actively involved in community
engagement and corporate social responsibility programs, contributing
to the well-being of the communities in which it operates.

With a robust and efficient distribution network, F&N Malaysia's

products are widely available across the country and in international
markets. The company's extensive reach ensures that consumers can
 easily access their favourite F&N products wherever they are. This
widespread availability, coupled with the company's strong brand
reputation, has cemented F&N Malaysia's status as a trusted and
beloved name in the food and beverage sector. In summary, Fraser &
Neave Holdings Bhd (F&N Malaysia) is a historic and leading beverage
and dairy products company with a rich legacy and a commitment to
innovation, quality, and sustainability. Its diverse product portfolio and
extensive distribution network have made it a household name in
Malaysia and beyond, ensuring its continued success and growth in the
competitive food and beverage industry.

ANNUAL REPORT LINK

https://fraserandneave.com/docs/default-source/investor-relations/annual-
reports/2023/f-n-annual-report-2023.pdf?sfvrsn=1e1da92b_6

LIQUIDITY

CURRENT RATIO 2023 2022

1,164,198 1,066,572
834,620 541,189 BAD
=1.39x = 1.97x

QUICK RATIO 2023 2022

1,164,198-324,704 1,066,572-
834,620 387,213 BAD
= 1.00x 541,189
= 1.25x

 Current ratio for year 2023 was 1.39x, for year 2022 was 1.97x. It
showed that the current ratio for year 2023 is bad compared to year
2022.
 Quick ratio for year 2023 was 1.00x, for year 2022 was 1.25x. It
showed that the quick ratio for year 2023 is bad compared to year
2022
 Both ratio in liquidity showed that F&N are having bad ability to pay
short-term obligation on time.

ASSET MANAGEMENT
 2023 2022
INVENTORY 1,476,058 1,429,370
TURNOVER 2,099,103 2,003,214 BAD
= 0.70x = 0.71x

2023 2022
RECEIVEABLES 2,099,103 2,003,214
TURNOVER 292,488 286,471 GOOD
= 7.17x = 6.99x

2023 2022
TOTAL ASSETS 2,099,103 2,003,214
TURNOVER 5,121,901 4,980,889 GOOD
= 0.41x = 0.40x

2023 2022
AVERAGE 292,488 286,471
COLLECTION PERIOD 2,099,103/ 360 2,003,214/360
=292,488 =286,471 GOOD
5,830.84 5,564.48
=50.16DAYS =51.48 DAYS

DEBT MANAGEMENT

2023 2022
TOTAL DEBT RATIO 1,719,294 1,478,404
5,121,901 4,980,889 BAD
= 0.33X100 = 0.29X100
=33% =29%

2023 2022
TIME INTEREST 248,508 223,415
EARNED RATIO 37,524 26,207 BAD
=6.62x =8.90x
 2023 2022
205,141 176,935
NET PROFIT MARGIN 2,099,103 2,003,214 BAD
= 0.09x100 =0.08x100
=9% 8%
PROFITABILITY

2023 2022
RETURN ON ASSET 205,141 176,935
5,121,901 4,980,889 GOOD
= 0.04x100 = 0.03x100
=4% =3%

2023 2022
RETURN ON EQUITY 205,141 176,935
3,402,607 3,502,485 GOOD
= 0.06x100 = 0.05x100
=6% =5%

Nestlé Malaysia Berhad

One of the major companies in Malaysia's food and beverage sector is Nestlé Malaysia
Berhad, a division of the multinational food and beverage corporation Nestlé S.A. Since
its founding in 1912, the business has developed into a household name that is
associated with reliability and quality. A vast variety of food and beverage products,
such as dairy products, drinks, kitchenware, breakfast cereals, infant foods, bottled
water, and ice cream, are part of Nestlé Malaysia's vast product line. Several popular
brands that cater to the varied interests and demands of Malaysian customers are Milo,
Nescafé, Maggi, KitKat, and Nestlé Omega Plus.

Nestlé Malaysia's dedication to nutrition, health, and wellness is demonstrated by its

ongoing innovation and development of products that improve the quality of life for its
clients. The company emphasizes manufacturing nutritious and delicious products while
adhering to strict safety and quality guidelines. Nestlé Malaysia's consumer-focused
approach is supplemented with a strong corporate social responsibility (CSR) strategy,
which includes participation in a variety of activities promoting sustainability,
environmental stewardship, and community development.
 One of the company's most significant milestones was the building of its first facility in
Petaling Jaya in 1962, which marked the start of local manufacture. Nestlé Malaysia has
expanded its activities throughout the years, adding manufacturing facilities and
distribution centers across the country to provide effective supply chain management
and nationwide product accessibility. Nestlé also invests substantially in R&D to remain
ahead of industry developments and consumer preferences, drawing on its global
knowledge and resources.

Nestlé Malaysia is listed on Bursa Malaysia's Main Market, representing the company's
solid financial performance and commitment to transparency and governance. The
firm's objective is to be Malaysia's top food, nutrition, health, and wellness company,
providing long-term value for its stakeholders while positively impacting the country's
socioeconomic development. With more than a century of presence in Malaysia, Nestlé
continues to expand on its heritage of providing high-quality goods that meet the
changing demands of Malaysian consumers, guaranteeing a brighter future for future
generations.

ANNUAL REPORT
Financial Statement Report

LIQUIDITY

2023 2022
CURRENT RATIO 1,306,006 1,599,218 BAD
2,137,884 2,258,971
= 0.61 x = 0.71 x

2023 2022
QUICK RATIO 1,306,006 - 831,435 1,599,218-1,115,083
2,137,884 2,258,971 BAD
= 474,571 = 484,135
= 0.22 x = 0.21 x
  Current ratio for year 2023 was 0.61x, for year 2022 was 0.70x. It showed that
the current ratio for year 2023 is bad compared to year 2022.
 Quick ratio for year 2023 was 0.22, for year 2022 was 0.21x. It showed that the
quick ratio for year 2023 is good compared to year 2022
 Both ratio in liquidity showed that Nestle (Malaysia) Berhad are having poor
ability to pay short-term obligation on time.

ASSET MANAGEMENT

2023 2022
INVENTORY TURNOVER 4,819,875 4,603,260 GOOD
831,435 1,115,083
= 5.80 x = 4.13 x

2023 2022
RECEIVEABLES 7,050,879 6,664,145 GOOD
TURNOVER 462,968 445,201
= 15.23 x = 14,97 x

2023 2022
TOTAL ASSETS 7,050,879 6,664,145
TURNOVER 3,569,222 3,554,011 GOOD
= 1.98 x = 1.88 x

2023 2022
AVERAGE COLLECTION 462,968 445,201
PERIOD 7,050,879 / 360 6,664,145 / 360 GOOD
= 23.64 Days = 24.05 Days
DEBT MANAGEMENT

2023 2022
2,894,326 2,927,695
TOTAL DEBT RATIO 3,569,222 3,554,011 BAD
= 0.81 x 100 = 0.82 x 100
=81% =82%

2023 2022
TIMES INTEREST 939,337 902,931 GOOD
EARNED RATIO 60,687 44,994
= 15.48 x = 20.06 x

PROFITABILITY

2023 2022
659,870 620,334
NET PROFIT MARGIN 7,050,879 6,664,145 GOOD
= 0.0936 x 100 = 0.930 x 100
= 9.36% = 9.30%

2023 2022
659,870 620,334
RETURN ON ASSETS 3,569,222 3,554,011
= 0.185 x 100 = 0.175 x 100 GOOD
= 18.5% = 17.5%

2023 2022
RETURN ON EQUITY 659,870 620,334
674,896 626,316 GOOD
= 0.97 x 100 = 0.99 x 100
= 97% = 99%
PART 2

YEAR 2023
KAWAN F&N NESTLE DUTCH
CURRENT FOOD LADY
RATIO BERHAD
1,164,198 1,306,006
237,104,897 834,620 2,137,884
54,585,229 =1.4x =0.6x
=4.3x

YEAR 2022
KAWAN F&N NESTLE DUTCH
CURRENT FOOD LADY
RATIO BERHAD
1,066,572 1,599,218
223,388,825 541,189 2,258,971
51,239,850 =2.0x =0.7x
=4.3x