UNIVERSITY MALAYA

EXECUTIVE DIPLOMA IN BUSINESS MANAGEMENT

ACCOUNTING & FINANCIAL MANAGEMENT ASSIGNMENT

Submission Date: 3/April/2011

Name of student Registration No. Name of company Signature and date

Ong Chee Koon EDBM5-23 YTL Cement Bhd

Foong Wei Hong EDBM7-06 Cheetah Holdings Bhd

Nor Marsitah EDBM7-26 Yeoh Hiap Seng Bhd

Ng Soh Ling EDBM7-21 Public Bank Bhd

Wong Ve Lin EDBM7-48 Nestle (M) Bhd

Salmah EDBM7-32 Nestle (M) Bhd

NAME OF COMPANY: YTL CEMENT BERHAD

DATED LISTED ON BURSA SAHAM: 26/10/2010

SECTOR: INDUSTRIAL PRODUCT (CONSTRUCTION)

TYPE OF PRODUCTS: PORT LAND CEMENT, CONCRETE, GROUND GRANULATED BLAST FURNACE SLAG,
HIGH SULPHATE RESISTING CEMENT, BLENDED CEMENT, SLAG CEMENT, FLY ASH CEMENT, PULVERIZED
FLY ASH, AND CLINKERS, HIRING VEHICLES, INVESTMENT HOLDING AND MANAGEMENT COMPANY.

SOURCE: BURSA SAHAM MALAYSIA

http://www.bursamalaysia.com/website/bm/listed_companies/company_announcements/annual_reports/index.jsp

5 YEARS FINANCIAL HIGHLIGHTS

2010 2009 2008 2007 2006

RM'000 RM'000 RM'000 RM'000 RM'000

Sales Revenue 1,854,319 1,968,294 1,466,908 1,150,041 1,061,946

Profit Before Tax 411,226 360,345 290,049 236,268 157,988

Profit After Tax 311,143 264,862 212,049 177,772 155,852

EPS (sen) 57.25 50.98 41.14 33.45 28.51

FUTURE OUTLOOK OF YTL CEMENT BERHAD

YTL Cement will continue to focus on maximising production efficiencies in order to mitigate
rising costs, enhancing product quality and improving customer service levels. The Group will
continue to build on its proven track record of organic and acquisition-driven growth to further
strengthen our integration into upstream and downstream business activities.
 Caculation of Ratios and Comparisons

Year 2009 (RM'000) Year 2010 (RM'000)

Formula Formula

1 Current ratio

Total current assest / Total current liab 1,154,365/ 759,088 1.52 1,400,709/ 704,628 1.99

2 Debt ratio

(Total liabilities / total assests) x 100 1,311,718/ 3,123,243 X 100 42.00% 1,352,785/ 3,406,117 39.72%

3 Net profit margin on sales

(Net income / sales) x 100 264,862/ 1,968,294 X 100 13.46% 311,143/ 1,854,319 16.78%

4 Return on total assests

(Net income / total assests) x 100 264,862/ 3,123,243 X 100 8.48% 311,143/ 3,406,117 9.13%

5 Return on equity

(Net income / total equity) x 100 264,862/ 1,811,525 X 100 14.62% 311,143/ 2,053,332 15.15%

6 Earnings per share

Net income / no. of shares 50.98 57.25

COMPARISON BETWEEN LIQUIDITY, LEVERAGE AND PROFITABILITY FOR 5 COMPANIES

CURRENT RATIO DEBT RATIO NET PROFIT MARGIN RETURN ON TOTAL ASSETS RETURN ON EQUITY
COMPANY
2009 2010 2009 2010 2009 2010 2009 2010 2009 2010

NESTLE (M) BHD 130.27 432.54 0.48% 0.15% 99.21% 100.74% 69.80% 71.76% 70.13% 71.87%

PUBLIC BANK BHD 1.06 1.03 93.40% 94.09% 61.90% 67.26% 2.51% 2.95% 42.55% 44.64%

YEO HIAP SENG BHD 1.074 1.071 94.40% 93.99% 0.36% 0.22% 0.18% 0.09% 0.48% 0.30%

CHEETAH HOLDINGS BHD 2.71 4.69 33.17% 19.40% 10.67% 11.11% 9.23% 11.10% 29.70% 13.77%

YTL CEMENT BHD 1.52 1.99 42.00% 39.72% 100.93% 98.41% 21.49% 9.21% 14.62% 15.15%

Conclusion:

The purpose of liquidity ratio is to access the liquidity of the company. This ratio acts as a guide to test company's solvency. It indicated a company's ability to repay its current liabilities
immediately from its current assets which are in cash form. Based on the above, Nestle (M) Bhd is the most liquid company due to high current ratio compare to others.

Debt ratio shows the proportion of assets financed by debt. Yeo Hiap Seng Bhd's debt ratio is the highest therefore it is the greatest financial leverage compared to other companies. The

Profitability ratios show the combined effects on net profit margin, liquidity, asset management & debt on operating results. For 2010, Nestle (M) Bhd is the highest profit margin and YTL
Cement Bhd shown the highest net profit margin of 100.93% in 2009. Nestle (M) Sdn Bhd earned 69.80 sen on each dollar of asset investment in 2009 and 71.70 sen on each dollar of
asset investment in year 2010. Based on the return on equity calculation, Nestle (M) Bhd earned 70.13 sen on each $1 of shareholder equity in the year 2009 and $71.87 sen on each of
$1 of shareholder equity in year 2010. Therefore, based on the 3 profitability ratios, Nestle (M) Bhd stands the highest profit margin on sales, return on total assets and equity. Seconded
by YTL Cement Bhd due to higher profit margin and return on total assets compared to other companies. Public Bank Bhd also had the 2nd highest return on equity in both years.
Therefore we decide that the best company that suitable for better investment option is Nestle (M) Bhd.