a) The type of business conducted by Genting Berhad is service business.

Genting Berhad
provides services in terms of entertainment such as theme park and concert shows. Theme
park is one of the most attractions on Genting Resorts in which it divided into outdoor, indoor
and water park. Theme Park provides a lot of rides like thrill rides, family rides and children
rides. Besides, Genting Berhad also offers hotel services for tourists in Genting Highlands
that operate together with the major casinos. Casinos provide a range of slot machines and
table games including baccarat roulette, and Caribbean Stud Poker for gamblers. Another
popular activity is shopping. Retail shopping is available in First World Plaza attached to one
of the major Genting Highlands hotels. There are more than 60 Retail and 70 F&B outlets. In
addition, Genting Berhad provides shuttle bus services for visitors which serve destinations
as far as Singapore. Furthermore, transportation like cable cars is also available for tourists.
The cable car journey to reach the Genting hill top takes about 15 minutes.

b) The type of organization formed by Genting Berhad is corporation. This company is the
investment holding and management company of Genting Group. The business owner ship of
Genting Berhad is divided into shares of stock and the shareholders are known as owner. On
30 July 1968, Genting Berhad was incorporated under the Companies Act under the original
name of Genting Highlands Hotel Sdn Bhd to operate a hotel and casino. Genting Group was
founded in 1965 by the late Tan Sri Dr Lim Goh Tong Kiet Huat Realty Sdn Bhd, a private
company controlled by the late Tan Sri Dr Lim Goh Tongs Family owns 39.6% of Genting
Berhad. Besides that, Genting Berhad is organized under Company Law as a separated legal
entity. This form of business ownership is characterized by the limited liability of its owners,
the issuance of shares of easily transferable stock, and existence as a going concern. The
creditors of the company can claim against the companys assets only in a limited liability
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company. As a result, if a limited liability company goes bankrupt and it can no longer pay its
creditors, the creditors are not entitled to be repaid form the owners personal assets.

c) The first accounting concept applied in this company is consistency. Based on the financial
reports of the company over the past 5 years, Genting Berhad uses the same accounting
method to record, report and interprets financial information. This company records the
financial reports regularly within each accounting period and from one period to the next, so
that information reported will be comparable. Users can compare the financial information of
one accounting period with the previous periods. This accounting concept is to prevent
misleading profits arising from differing accounting methods from being reported. It also
helps the users of financial statement in making their economic decisions.
The second accounting concept applied in this company is business entity. Genting Berhad is
organized under Company Law as a separate legal entity. The founder of the company is the
late Tan Sri Dr. Lim Goh Tong and the company is registered as Genting Berhad. The
business transactions are recorded form the point of view of the business, as a separate entity.
For accounting purposes, the nosiness is considered as a business entity which is different
form its owners. In this company, all the private and personal expenses are ignored and
personal transactions will not be recorded in the financial statements of the company. This
accounting concept shows that only accounting information that relates to the business
transactions of the company will be recorded in its financial statements.
The last accounting concept applied on the company is money measurement. Money is used
as the basic measuring unit for this companys financial reports. The financial statements of
this company only provide information which can be expressed in monetary terms. For
example, the company was paid RM30, 000 by a customer for service provided and this
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amount will be appeared on the financial reports. Events that cannot be measured in monetary
terms are ignored and will not be recorded in financial statements. For example, satisfactions
of tourists, inefficient management, loyalty and honesty of employees, poor working
conditions and quality of the service provided.

d)

Based on the Statement of Comprehensive Income, the Groups revenue for financial year
2011 was RM 19 559.0 million compared with RM 15 194.7 million in 2010, there is an
increase of 28.7%. This increase is due to increase in revenue of other branches business.
From the financial review report of the company, the revenue from Resorts World Sentosa
with the maiden full year of operations of the Resorts World Sentosa casino, Universal
Studios Singapore and hotels increased by 18.4% in 2011. The Malaysian leisure and
hospitality business also achieved higher revenue due to overall higher volume of business
and higher hold percentage in the premium players business. The Groups 2011 revenue
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increased also due to the Power Division had higher revenue due mainly to the Meizhou Wan
power plant as a result of higher dispatch.


The total costs and expenses for the Group in 2010 is RM11485.1 million while for that in
Group 2011 is RM13348.3 million. There is an increase of RM 1 863.2 million or 16.2% in
the total costs and expenses. It was mainly due to the following reasons. First and foremost,
there is an increase of RM 3 195.5 million in cost of sales due to construction costs incurred
for the development of Resorts World Casino New York City as well as costs incurred in
relation to Genting Malaysias commencement of operations in the US. Besides, higher input
cost as labour and material prices rose in wages, incentives as well as inflationary pressures
and purchase of third party fresh fruit bunches by Genting Plantations Group also contributed
to the increased cost. Apart from then, there is an increase in fuel costs for the Meizhou Wan
power plant and increased coal consumption. Administration expenses increased due to the
development and operations of Resorts World Casino New York City and operations of
development of a destination resort in Miami. Impairment losses were lower in 2011
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compared with 2010. The impairment losses in 2010 were in respect of goodwill and licenses
of the UK casino operations in 2006, plant and equipment, property and intangible assets of
the Meizhou Wan Power Plant, exploration costs in respect of two of the Groups oil and gas
projects and Genting Malaysias investment in Walker Digital Gaming, LLC. Other expenses
which include net exchange losses and property related termination costs increased by RM
209.6 million.


The profits for the financial year increased by 50.85%. The profit attributable to equity
holders of the company increased from RM 2 203.0 million in 2010 to RM 2 867.5 million in
2011.
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Based on the statement of the financial position, total assets for the Group 2010 were
RM49014.1 million while total assets for the Group 2011 were RM54344.7 million. There is
an increase of 10.9% in total assets. This increase is due to an increase in net book value of
freehold land, leasehold building and improvement and plant, equipment and vehicles. On
November 2010, a company named GENN sold its leasehold land in Pulau Indah with a net
book value of RM 19.7 million. The sale of land results in a gain on disposal of RM12.6
million. Investment in freehold land is increased by 21.16% from year 2010 to year 2011. In
addition, investment properties also increase in net book value by 29.164% in year 2011.
Plantation development increased in net book value by 29.86% in year 2011 and the currency
fluctuations of plantation development also increase from RM-11.6 million in year 2010 to
RM3 million in year 2011. Leasehold land use rights increased from 2010 to 2011 by 24.2%.
This is because of its cost increased from 2010to 2011 by 25.1% and the net book value
increase by 24.2%. Within jointly controlled entities, shares in foreign corporations increased
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a lot. Shares in foreign corporations wan RM194.8 million in 2011 compared to RM102.5
million in 2010. The jointly controlled entities include Apollo Genting London Limited, DCP
(Sentosa) Pte Ltd and Gemstones Investment Pte Ltd. There was an increase in inventories
from 2010 to 2011. For example, stores and spares, completed properties, food, beverages
and other hotel supplies, produce stocks and finished goods.
The Groups total liabilities for financial year 2011 was RM21177.8 million compared with
RM19567.6 million in 2010, there is an increase of 8.2%. The main reason for the increase in
total liabilities is due to the increase in other payables and accruals and short term borrowing.
Other payables and accruals included progress billings payable and accruals for capital
expenditure. This expenditure was related to a hotels construction and upgrading of resorts
infrastructure. Retirement gratuities and deposits also increase from 2010 to 2011. On August
2011, Genting Capital Limited (GCL) had a Facility agreement with DBS Bank Labuan that
can borrow a short term loan facility of up to SG100.0 million for investment purposes.
The Groups total equity for financial year 2011 was RM33166.9 million compared with RM
29466.5 million in 2010, an increase of 12.6%. Share capital increased from RM371.4
million in 2010to RM 371.6 million in 2011, an increase of 0.05%. Reserves increased from
2010 to 2011 by 15.1%. This is due to the increase in share premium, revaluation reserves
and retained earnings.

e) Yes. I will invest in the company. There are several reasons for it. First of all, Genting
Berhad is one of the largest listed companies in Malaysia with market capitalization of about
RM 37.2 billion as at 31 May 2012. Genting Berhad has conducted many branches of
operations such as operating hotels and casinos, as well as developing an integrated tourist
complex in Genting Highlands, Malaysia. Besides that, Genting Berhad is backed by 46 years
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of solid financials and strong management leadership. Genting Berhad was founded by the
late Tan Sri (Dr.) Lim Goh Tong who thinks and acts as genuine entrepreneurs. The company
offers unique opportunities for the management team to upgrade their objectives, to
implement their visions and share the risks and rewards of success. The management team of
Genting Berhad has good ways to solve the problems that company faces. For examples, the
most difficult challenge is Genting integrated resorts may see greater regional competition,
primarily from Macau and Singapore for the upcoming future. The natural earthquake
disasters that have hit several countries may negatively impact leisure air travel and cause
volatility in global commodity prices. Natural earthquake disasters is unexpected situation
will happen. Many countries are still recovering from the global financial crisis. While most
of these global factors are beyond the control, Genting are constantly reviewing the
operational systems and risk controls to ensure that there are more than ready to manage any
crisis. These concerns will not deter Genting from providing the best leisure and
entertainment in the world. Genting focus on developing the global brand network of Resorts
World properties. Resorts World Genting and Resorts World Sentosa both have become
hugely successful landmark attractions with unique market appeal. Thus, I am confident to
invest the company because the management team has good strategy to overcome problems.
While we compare the revenue for the 5 consecutive years (2006-2011) of the company, we
found that the profit sales revenue increase. So, I am sure it is a potential company to expand
its business. I believe in the current management it can guide the company to its full potential.
Next, based on what we researched, the companys profits increase from year to year. For
instance, the profit attributable to equity holders of the company increased from RM2, 203.0
million in 2010 to RM 2,867.5 million in 2011. Since the price earning per ratio is high, it can
prevent us from overpaying for stock.

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