Contents

INTRODUCTION ................................ ................................ ................................ ............................. 2 Oriental Food Industries Holdings Berhad (OFIHD)................................ ................................ ....... 2 Mamee-Double Decker (M) Bhd (MDD) ................................ ................................ ....................... 3 United Plantation Berhad (UP) ................................ ................................ ................................ ....... 4 BLD PLANTATION BERHAD (BLDP) ................................ ................................ ....................... 5 FINANCIAL RATIO ................................ ................................ ................................ ......................... 6 Oriental Food Industries Holdings Berhad (OFIHD)................................ ................................ ....... 6 Mamee-Double Decker (M) Bhd (MDD) ................................ ................................ ....................... 8 United Plantation Berhad (UP) ................................ ................................ ................................ ..... 10 BLD Plantation Berhad (BLDP) ................................ ................................ ................................ ... 12 COMPARISON BETWEEN BUSINESS SECTORS ................................ ................................ ....... 14 Consumer Product Sector Ratio 2009 ................................ ................................ ........................... 14 Plantation Sector Ratio 2009 ................................ ................................ ................................ ........ 18 COMPARISON SECTORS ................................ ................................ ................................ ............. 22 CONCLUSION ................................ ................................ ................................ ............................... 25

INTRODUCTION Oriental Food Industries Holdings Berhad (OFIHD) Oriental Food Industries Holdings Berhad (OFIH) was incorporated on 8 June 1996 in Malaysia under the Companies Act, 1965 as a public limited company. OFIH was listed on the Second Board of Bursa Malaysia Securities in August 2000 and was subsequently transferred to the Main Board on 13 October 2003. Oriental Food Industries Sdn Bhd (OFISB), the wholly owned subsidiary of the Company continuously maintains certifications which have been conferred by various governmental bodies namely Hazard Analysis Critical Control Point (HACCP) System (potato crisps line only), MS ISO 9001:2000, Super Brands and Halal product certification for the entire snack food and confectionery products manufactured by OFISB. OFISB is currently working on incorporating HACCP System to its other products and upgrading the quality management system certification to the ISO 9001:2008. OFIH is principally an investment holding company while the OFIH Group has subsidiaries that are engaged in the following activities: Equity Interest (%) 100 80 100

Name of Major Subsidiaries Oriental Food Industries Sdn. Bhd. (OFI) OFI Properties Sdn Bhd Oriental Food Marketing (M) Sdn Bhd (OFM)

Principal Activities Manufacturing and marketing of snack food and confectionaries Property Development Sales and Marketing of snack food and confectionaries

Mamee-Double Decker (M) Bhd (MDD) Mamee-Double Decker was incorporated in 1971, currently listed on the Main Board of the Kuala Lumpur Stock Exchange. Over 35 years since its inception, Mamee-Double Decker has become the first largest local food and beverages manufacturing company in the country with the award of "Top 100 Listed Companies Year 2005". The principal activities of the Company consist of investment holding and provision of management services to subsidiary companies. The principal activities of the Group consist of manufacturing and marketing of food and dairy products, soft drinks and property development activity. Started off with a single product, MDD have consistently grown to various range of products, and we continue to grow. Today, MDDs products have become global household brands which are vastly exported to more than 80 countries offering millions of people with large variety of product ranges from Mamee Instant Noodles, Double Decker and Smax cracker snacks, Mister Potato Chips, Mister Potato Crisps, Cheers Beverage, Nicolet Swiss Herb Candy, Nutrigen Cultured Milk Drink, Yogurt and the most recent addition of Mamee Sllrrp and Nutrigen IQ3. The Group acquired a 100% equity interest in Charmille Pte Ltd via Rosedale Investments Pte Ltd, a wholly-owned subsidiary of the Group. Charmille owns 60% equity interest in PT Rana Central Nugraha; the exercise effectively resulted in the Group having 60% interest in the plantation.

United Plantation Berhad (UP) The Companys principal business activity is in the cultivation and processing of palm oil, coconut and other plantation crops in a sustainable manner. Its subsidiary companies are engaged in several downstream activities such as; processing palm oil; and manufacturing; packing/distributing of end products in the form of cooking oils, edible oils, specialty fats and soap products. United Plantations Berhad is one of the most efficiently managed, eco-friendly and integrated plantation companies in Malaysia and is well known globally for its best agricultural practices and high quality standards. In Malaysia UP s total Landbanks consist of approximately 40,855 hectares. The main focus is cultivation of oil palms (90%) and coconuts (10%). In Malaysia, United Plantations Berhad operates 6 Palm Oil Mills and the Unitata refinery, a subsidiary that has been cooperating for a number of years with AarhusKarlshamn AB; a leader in the global speciality fats sector. United Plantations Berhad possesses considerable know-how in plant breeding, agronomy, and micro-propagation through its own R&D facilities for the development of new and improved planting materials as well as improved crop husbandry practices. This has resulted in United Plantations Berhad being recognized as one of the highest yielding, costcompetitive and innovative plantation companies in Malaysia.

BLD PLANTATION BERHAD (BLDP) BLDP was incorporated in Malaysia as a public limited company under the Companies Act 1965 on 19 October 2001. It was listed on the Main Board of Bursa Malaysia Securities Berhad under the plantation sector on 21 July 2003. It serves as a parent Company to Bintulu Lumber Development Sdn. Bhd., Kirana Palm Oil Refinery Sdn. Bhd., Grand Mutual Sdn. Bhd., Niamas Istimewa Sdn. Bhd. and BLD Resources Sdn. Bhd. BLDP is principally engaged in investment holding and provision of management services. The BLDP Group is principally involved in the cultivation of oil palm, processing of fresh fruit bunches and sales of related products. The Group is also involved in ancillary activities, namely integrated cattle farming and boer goat rearing. The Company is principally engaged in investment holding and provision of management services while the principal activities of the Group are operation of a palm oil refinery and kernel crushing plant, cultivation of oil palm, processing of fresh fruit bunches and sales of related products. Name of Major Subsidiaries Bintulu Lumber Development Sdn. Bhd. Kirana Palm Oil Refinery Sdn. Bhd. Equity Interest (%) Principal Activities Oil palm plantation, palm oil 100 milling and sales related products 100 Palm oil refinery and kernel crushing plant

FINANCIAL RATIO Oriental Food Industries Holdings Berhad (OFIHD) 2009 31,168,557 42,614,718 11,446,161 3.72 42,614,718 / 11,446,161 2.65 (42,614,718 12,335,933) / 11,446,161 9.82 118,440,509 / 12,058,209 6.96 85,798,619 / 12,335,933 0.23 24,330,467 / 106,197,972 0.19 24,330,467 / 130,723,679 0.09 10,583,606 / 118,440,509 0.09 9,766,635 / 106,393,212 2008 23,826,112 39,807,963 15,981,851 2.49 39,807,963 / 15,981,851 1.58 (39,807,963 14,532,625) / 15,981,851 8.48 124,397,459 / 14,662,033 6.56 95,327,428 / 14,532,625 0.33 29,705,615 / 91,324,722 0.25 29,705,615 / 121,226,918 0.04 5,541,747 / 124,397,459 0.05 4,764,629 / 91,521,303 2007 27,529,901 41,402,777 13,872,876 2.98 41,402,777 / 13,872,876 2.09 (41,402,777 12,459,383) / 13,872,876 7.56 125,508,573 / 16,610,167 7.36 91,651,274 / 12,459,383 0.25 23,103,218 / 90,883,366 0.20 23,103,218 / 114,184,892 0.09 11,174,805 / 125,508,573 0.09 8,371,380 / 91,081,674

WORKING CAPITAL Current Asset Current Liabilities CURRENT RATIO Current Asset / Current Liabilities QUICK RATIO (Current Assets - Inventory) / Current Liabilities ACCOUNT RECEIVABLE TURNOVER Net sales / Gross Receivable INVENTORY TURNOVER Cost of Goods Sold / Inventory EQUITY RATIO Total Liabilities / Shareholders Equity DEBT RATIO Total Liabilities / Total Asset RETURN ON SALES Operating Income / Net Sales RETURN ON EQUITY Net Income / Total Equity

The working capital measures OFIHDs efficiency and its short-term financial wealth. The positive amount of working capital means that OFIHD able to pay off its short-term liabilities with its current assets such as cash, account receivable and inventory. The ability increased from 2008 to 2009. The current ratio indicates the liquidity of OFIHD that measures the ability to pay short-term obligations. Dramatic increased of current ratio from year 2008 to 2009 shows good sign of short term financial performance. The quick ratio measures OFIHDs ability to meet it short-term obligations with its most liquid assets. Year 2009 shows the highest quick ratio which indicates better position of the company compared to year 2008 and 2007. The account receivable turnover is an activity ratio which measures how efficiently OFIHM uses its asses. OFIHMs effectiveness in extending credit as well as collecting debts decreased as the days to collect the receivables increased from 2007, 2008 and 2009. The inventory turnover shows how many times OFIHDs inventory is sold and replaced over a period. The turnover was decreased from 2007 to 2008. However, the turnover increased from 2008 to 2009. The equity ratio indicates the proportion of debt of OFIHD has relative to its assets. The measure gives an idea to the leverage of OFIHD along with the potential risks in terms of debt-load. The proportion increased on 2008 but decreased on 2009. Debt ratio measures OFIHDs financial leverage calculated by dividing its total liabilities by stockholders equity. It indicates what proportion of equity and debt OFIHD is using to finance its assets. The proportion increased on 2008 but decreased on 2009. Return on sales widely used to evaluate OFIHDs operational efficiency. The ratio decreased on 2008 but increased at the same percentage as 2007 on 2009. Return on sales is also indicates the operating profit margin. The amount of net income returned as percentage of shareholders equity when determining the return on equity. It measures the OFIHD profitability by revealing how much profit OFIHD generates on 2007, 2008 and 2009 with money invested which decreased on 2008 and increased on 2009.

Mamee-Double Decker (M) Bhd (MDD) WORKING CAPITAL Current Asset Current Liabilities CURRENT RATIO Current Asset / Current Liabilities QUICK RATIO (Current Assets - Inventory) / Current Liabilities ACCOUNT RECEIVABLE TURNOVER Net sales / Gross Receivable INVENTORY TURNOVER Cost of Goods Sold / Inventory EQUITY RATIO Total Liabilities / Shareholders Equity DEBT RATIO Total Liabilities / Total Asset RETURN ON SALES Operating Income / Net Sales RETURN ON EQUITY Net Income / Total Equity 2009 110,715,872 177,232,253 66,516,381 2.66 177,232,253 / 66,516,381 2.27 (177,232,263 26,490,987)/ 66,516,381 7.31 411,567,139 / 56,268,975 10.06 266,564,112 / 26,490,987 0.31 70,256,571 / 224,027,473 0.24 70,256,571 / 294,444,881 0.14 55,639,882 / 411,567,139 0.20 44,387,986 / 224,188,310 2008 78,527,954 145,044,335 66,516,381 2.18 145,044,335 / 66,516,381 1.72 (145,044,335 30,640,434) / 66,516,381 6.89 396,967,181 / 57,598,957 9.26 283,826,619 / 30,640,434 0.33 63,699,094 / 191,320,514 0.25 63,699,094 / 255,250,095 0.08 30,667,828 / 396,967,181 0.12 23,606,357 / 191,551,001 2007 70,471,933 132,209,235 61,737,302 2.14 132,209,235 / 61,737,302 1.82 (132,209,235 20,013,007) / 61,737,302 6.78 359,741,695 / 53,044,032 8.83 256,280,480 / 29,013,007 0.39 65,504,492 / 169,463,033 0.28 65,504,492 / 235,188,162 0.06 20,797,555 / 359,741,695 0.08 14,000,204 / 169,683,670

The working capital measures MDDs efficiency and its short-term financial wealth. The positive amount of working capital means that MDD able to pay off its short-term liabilities with its current assets such as cash, account receivable and inventory. The ability increased from year 2007 until 2009. The current ratio indicates the liquidity of MDD that measures the ability to pay shortterm obligations. Dramatic increased of current ratio from year 2007 to 2009 shows good sign of short term financial performance. The quick ratio measures MDDs ability to meet it short-term obligations with its most liquid assets. Year 2009 shows the highest quick ratio which indicates better position of the company compared to year 2008 and 2007. The account receivable turnover is an activity ratio which measures how efficiently MDD uses its asses. MDDs effectiveness in extending credit as well as collecting debts decreased as the days to collect the receivables increased from 2007, 2008 and 2009. The inventory turnover shows how many times MDDs inventory is sold and replaced over a period. The turnover is taking longer time year by year from 2007 until 2009. The equity ratio indicates the proportion of debt of MDD has relative to its assets. The measure gives an idea to the leverage of MDD along with the potential risks in terms of debtload. The proportion decreased from 2007 until 2009. Debt ratio measures MDDs financial leverage calculated by dividing its total liabilities by stockholders equity. It indicates what proportion of equity and debt MDD is using to finance its assets. The proportion decreased on 2008 and 2009. Return on sales widely used to evaluate MDDs operational efficiency. The ratio increased on 2008 and on 2009. Return on sales is also indicates the operating profit margin. The amount of net income returned as percentage of shareholders equity when determining the return on equity. It measures the MDD profitability by revealing how much profit MDD generates on 2007, 2008 and 2009 with money invested increased from year to year.

United Plantation Berhad (UP) 2009 WORKING CAPITAL Current Asset Current Liabilities CURRENT RATIO Current Asset / Current Liabilities QUICK RATIO (Current Assets - Inventory) / Current Liabilities ACCOUNT RECEIVABLE TURNOVER Net sales / Gross Receivable INVENTORY TURNOVER Cost of Goods Sold / Inventory EQUITY RATIO Total Liabilities / Shareholders Equity DEBT RATIO Total Liabilities / Total Asset RETURN ON SALES Operating Income / Net Sales RETURN ON EQUITY Net Income / Total Equity 497,235,000 620,824,000 123,589,000 5.02 620,824,000 / 123,589,000 3.93 (620,824,000135,168,000) / 123,589,000 35.95 816,674,000 / 22,719,000 1.89 255,987,000 / 135,168,000 0.12 192,579,000/1,63 8,145,000 0.11 192,579,000/1,83 0,849,000 0.44 362,134,000 / 816,674,000 0.17 280,884,000/1,63 8,270,000 2008 460,903,000 606,157,000 145,254,000 4.17 606,157,000 / 145,254,000 3.90 (606,157,000 39,465,000)/ 145,254,000 17.06 1,030,925,000 / 60,433,000 10.21 402,908,000 / 39,465,000 0.15 211,477,000/1,432 ,987,000 0.13 211,477,000 / 1,645,083,000 0.38 389,578,000 /1,030,925,000 0.21 299,599,000 / 1,433,606,000 2007 287,392,000 389,070,000 101,678,000 3.83 389,070,000 / 101,678,000 2.67 (389,070,000 118,034,000) / 101,678,000 14.56 674,193,000 / 46,296,000 2.29 270,158,000 / 118,034,000 0.14 165,350,000 /1,196,481,000 0.12 165,350,000 / 1,362,503,000 0.33 225,141,000 / 674,193,000 0.15 179,388,000 / 1,197,153,000

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The working capital measures the UPs efficiency and its short-term financial wealth. The positive amount of working capital means that UP able to pay off its short-term liabilities with its current assets such as cash, account receivable and inventory. The ability increased from year 2007 until 2009. The current ratio indicates the liquidity of UP that measures the ability to pay shortterm obligations. Dramatic increased of current ratio from year 2007 to 2009 shows good sign of short term financial performance. The quick ratio measures UPs ability to meet it short-term obligations with its most liquid assets. Year 2009 shows the highest quick ratio which indicates better position of the company compared to year 2008 and 2007. The account receivable turnover is an activity ratio which measures how efficiently UP uses its asses. UPs effectiveness in extending credit as well as collecting debts decreased as the days to collect the receivables increased from 2007, 2008 and 2009. The inventory turnover shows how many times UPs inventory is sold and replaced over a period. The turnover is taking longer time on 2008 but serve better on 2009. The equity ratio indicates the proportion of debt of UP has relative to its assets. The measure gives an idea to the leverage of UP along with the potential risks in terms of debtload. The proportion decreased on 2009. Debt ratio measures UPs financial leverage calculated by dividing its total liabilities by stockholders equity. It indicates what proportion of equity and debt UP is using to finance its assets. The proportion decreased on 2009. Return on sales widely used to evaluate UPs operational efficiency. The ratio increased on 2008 and on 2009. Return on sales is also indicates the operating profit margin. The amount of net income returned as percentage of shareholders equity when determining the return on equity. It measures the UP profitability by revealing how much profit UP generates on 2007, 2008 and 2009 with money invested increased from year to year.

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BLD Plantation Berhad (BLDP) 2009 WORKING CAPITAL Current Asset - Current Liabilities CURRENT RATIO Current Asset / Current Liabilities QUICK RATIO (Current Assets - Inventory) / Current Liabilities ACCOUNT RECEIVABLE TURNOVER Net sales / Gross Receivable INVENTORY TURNOVER Cost of Goods Sold / Inventory EQUITY RATIO Total Liabilities / Shareholders Equity DEBT RATIO Total Liabilities / Total Asset RETURN ON SALES Operating Income / Net Sales RETURN ON EQUITY Net Income / Total Equity 1,793,466 252,476,032 250,682,566 1.01 252,476,032 / 250,682,566 0.62 (252,476,032 96,463,618) / 250,682,566 15.85 823,061,805 / 51,942,429 7.78 750,734,279 / 96,463,618 1.11 507,475,600 / 455,025,512 0.53 507,475,600 / 964,094,820 0.06 46,311,010 / 823,061,805 0.07 29,966,337 / 456,619,220 2008 -14,177,525 220,163,529 234,341,054 0.94 220,163,529 / 234,341,054 0.61 (220,163,529 77,950,515) / 234,341,054 64.02 518,172,413 / 8,093,891 5.52 429,984,110 / 77,950,515 1.03 446,406,745 / 431,936,309 0.51 446,406,745 / 879,594,508 0.12 59,827,345 / 518,172,413 0.15 64,440,961 / 433,187,763 2007 1,467,997 53,669,506 52,195,509 1.03 53,669,506 / 52,195,509 0.75 (53,669,506 14,656,024) / 52,195,509 36.42 152,034,831 / 4,173,931 5.89 86,331,486 / 14,656,024 0.12 45,757,203 / 375,253,972 0.07 45,757,203 / 621,393,005 0.32 48,635,209 / 152,034,831 0.10 37,812,233 / 375,635,802

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The working capital measures the BLDPs efficiency and its short-term financial wealth. The positive amount of working capital means that UP able to pay off its short-term liabilities with its current assets such as cash, account receivable and inventory. However, the negative amount on 2008 shows that BLDP unable to pay its short-term liabilities. The current ratio indicates the liquidity of BLDP that measures the ability to pay short-term obligations. Dramatic increased of current ratio from year 2008 to 2009 shows good sign of short term financial performance. The quick ratio measures BLDPs ability to meet it short-term obligations with its most liquid assets. Year 2007 shows the highest quick ratio which indicates better position of the company compared to year 2008 and 2009. The account receivable turnover is an activity ratio which measures how efficiently BLDP uses its asses. BLDPs effectiveness in extending credit as well as collecting debts increased as the days to collect the receivables decreased from 2008 to 2009. The inventory turnover shows how many times BLDPs inventory is sold and replaced over a period. The turnover is taking longer time on 2009 but serve better on 2008. The equity ratio indicates the proportion of debt of BLDP has relative to its assets. The measure gives an idea to the leverage of BLDP along with the potential risks in terms of debt-load. The proportion increased year by year. Debt ratio measures BLDPs financial leverage calculated by dividing its total liabilities by stockholders equity. It indicates what proportion of equity and debt BLDP is using to finance its assets. The proportion increased from 2007 to 2009. Return on sales widely used to evaluate BLDPs operational efficiency. The ratio decreased on 2008 and on 2009. Return on sales is also indicates the operating profit margin. The amount of net income returned as percentage of shareholders equity when determining the return on equity. It measures the BLDP profitability by revealing how much profit BLDP generates on 2007, 2008 and 2009 with money invested increased from year to year.

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COMPARISON BETWEEN BUSINESS SECTORS Consumer Product Sector Ratio 2009

OFIHD WORKING CAPITAL Current Asset Current Liabilities CURRENT RATIO Current Asset / Current Liabilities QUICK RATIO (Current Assets - Inventory) / Current Liabilities ACCOUNT RECEIVABLE TURNOVER Net sales / Gross Receivable INVENTORY TURNOVER Cost of Goods Sold / inventory EQUITY RATIO Total Liabilities / Shareholders Equity DEBT RATIO Total Liabilities / Total Asset RETURN ON SALES Operating Income / Net Sales RETURN ON EQUITY Net Income / Total Equity 31,168,557 42,614,718 11,446,161 3.72 42,614,718 / 11,446,161 2.65 (42,614,718 12,335,933) / 11,446,161 9.82 118,440,509 / 12,058,209 6.96 85,798,619 / 12,335,933 0.23 24,330,467 / 106,197,972 0.19 24,330,467 / 130,723,679 0.09 10,583,606 / 118,440,509 0.09 9,766,635 / 106,393,212

MMD 110,715,872 177,232,253 66,516,381 2.66 177,232,253 / 66,516,381 2.27 (177,232,263 26,490,987)/ 66,516,381 7.31 411,567,139 / 56,268,975 10.06 266,564,112 / 26,490,987 0.31 70,256,571 / 224,027,473 0.24 70,256,571 / 294,444,881 0.14 55,639,882 / 411,567,139 0.20 44,387,986 / 224,188,310

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WORKING CAPITAL If company current assets do not exceed its current liabilities, it may run into trouble paying back creditors in the short term. The worst-case scenario is bankruptcy. A declining working capital ratio over a longer time period could also be a red flag that warrant further analysis. Different working capital ratio indicates that OFIHD has lower potential of unable to settle its current liabilities compared to MDD which has higher potential of paying the short term liabilities. Working capital also gives investors an idea of a companys underlying operational efficiency. Money that is tied up in inventory or money that customers still owe to the company cannot be used to pay off any of the obligations. This can be seen by comparing working capital from OFIHD and MDD in 2009 where slow collection may signal an underlying problem in the company operations. CURRENT RATIO The ratio is mainly used to give an idea of the company's ability to pay back its shortterm liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations. OFIHD shows better performance on managing its current liabilities. However, it does not necessarily mean that MDD not performing well, as there are many ways to access financing; hence it is definitely not a good sign. The current ratio can give a good sense of the efficiency of a companys operating cycle or its ability to turn its product into cash. MMD compared to OFIHD has trouble getting paid on their receivables or have long inventory turnover can run into liquidit y problems because they are unable to alleviate their obligations. QUICK RATIO The quick ratio is more conservative than the current ratio, a more well-known liquidity measure, because it excludes inventory from current assets. Inventory is excluded because some companies have difficulty turning their inventory into cash. OFIHDs quick ratio is better compared to MDDs quick ratio. But however, in the event that short-term obligations need to be paid off immediately, there are situations in which the current ratio would overestimate a company's short-term financial strength. ACCOUNT RECEIVABLES RATIO By maintaining accounts receivable, firms are indirectly extending interest-free loans to their clients. A high ratio implies either that a company operates on a cash basis or that its extension of credit and collection of accounts receivable is efficient. OFIHD can be referred to this explanation. On the other hand, a low ratio implies the MDD should re-assess its credit policies in order to ensure the timely collection of imparted credit that is not earning interest for the firm.

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INVENTORY TURNOVER Although the first calculation is more frequently used, COGS (cost of goods sold) may be substituted because sales are recorded at market value, while inventories are usually recorded at cost. Also, average inventory may be used instead of the ending inventory level to minimize seasonal factors. A low turnover implies poor sales and, therefore, excess inventory like OFIHD has. A high ratio implies either strong sales or ineffective buying as what taking place in MDD. High inventory levels are unhealthy because they represent an investment with a rate of return of zero. It also opens the company up to trouble should prices begin to fall. EQUITY RATIO A high equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense. Comparing OFIHD and MDD, MDD have higher equity ratio in 2009. If a lot of debt is used to finance increased operations, the MDD could potentially generate more earnings than it would have without this outside financing. If this were to increase earnings by a greater amount than the debt cost, then the shareholders benefit as more earnings are being spread among the same amount of shareholders. However, the cost of this debt financing may outweigh the return that the company generates on the debt through investment and business activities and become too much for the company to handle. This can lead to bankruptcy, which would leave shareholders with nothing. DEBT RATIO A debt ratio of greater than 1 indicates that a company has more debt than assets; meanwhile, a debt ratio of less than 1 indicates that a company has more assets than debt. In 2009, both company in consumer products sectors shows that both have more assets compared to liabilities. Used in conjunction with other measures of financial health, the debt ratio can help investors determine a company's level of risk. RETURN ON SALES This measure is helpful to management, providing insight into how much profit is being produced per dollar of sales. As with many ratios, it is best to compare a company's ROS over time to look for trends. An increasing ROS indicates the company is growing more efficient, while a decreasing ROS could signal looming financial troubles that refers to MDD. RETURN ON EQUITY Return on equity reveals how much profit a company earned in comparison to the total amount of shareholder equity found on the balance sheet. A business that has a high return on equity is more likely to be one that is capable of generating cash internally. For the most part,

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the higher a company's return on equity compared to its industry, the better. For 2009, MDD is more capable in generating cash compared to OFIHD.

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Plantation Sector Ratio 2009

UP WORKING CAPITAL Current Asset Current Liabilities CURRENT RATIO Current Asset / Current Liabilities QUICK RATIO (Current Assets - Inventory) / Current Liabilities ACCOUNT RECEIVABLE TURNOVER Net sales / Gross Receivable INVENTORY TURNOVER Cost of Goods Sold / Inventory EQUITY RATIO Total Liabilities / Shareholders Equity DEBT RATIO Total Liabilities / Total Asset RETURN ON SALES Operating Income / Net Sales RETURN ON EQUITY Net Income / Total Equity 497,235,000 620,824,000 123,589,000 5.02 620,824,000 / 123,589,000 3.93 (620,824,000135,168,000) / 123,589,000 35.95 816,674,000 / 22,719,000 1.89 255,987,000 / 135,168,000 0.12 192,579,000/ 1,638,145,000 0.11 192,579,000/ 1,830,849,000 0.44 362,134,000 / 816,674,000 0.17 280,884,000/1,638,27 0,000

BLDP 1,793,466 252,476,032 250,682,566 1.01 252,476,032 / 250,682,566 0.62 (252,476,032 96,463,618) / 250,682,566 15.85 823,061,805 / 51,942,429 7.78 750,734,279 / 96,463,618 1.11 507,475,600 / 455,025,512 0.53 507,475,600 / 964,094,820 0.06 46,311,010 / 823,061,805 0.07 29,966,337 / 456,619,220

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WORKING CAPITAL If company current assets do not exceed its current liabilities, it may run into trouble paying back creditors in the short term. The worst-case scenario is bankruptcy. A declining working capital ratio over a longer time period could also be a red flag that warrant further analysis. Different working capital ratio indicates that BLDP has lower potential of unable to settle its current liabilities compared to UP which has higher potential of paying the short term liabilities. Working capital also gives investors an idea of a companys underlying operational efficiency. Money that is tied up in inventory or money that customers still owe to the company cannot be used to pay off any of the obligations. This can be seen by comparing working capital from UP and BLDP in 2009 where slow collection may signal an underlying problem in the company operations. CURRENT RATIO The ratio is mainly used to give an idea of the company's ability to pay back its shortterm liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations. UP shows better performance on managing its current liabilities. However, it does not necessarily mean that BLDP not performing well, as there are many ways to access financing; hence it is definitely not a good sign. The current ratio can give a good sense of the efficiency of a companys operating cycle or its ability to turn its product into cash. BLDP compared to UP has trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. QUICK RATIO The quick ratio is more conservative than the current ratio, a more well-known liquidity measure, because it excludes inventory from current assets. Inventory is excluded because some companies have difficulty turning their inventory into cash. UPs quick ratio is better compared to BLDPs quick ratio. But however, in the event that short-term obligations need to be paid off immediately, there are situations in which the current ratio would overestimate a company's short-term financial strength. ACCOUNT RECEIVABLES RATIO By maintaining accounts receivable, firms are indirectly extending interest-free loans to their clients. A high ratio implies either that a company operates on a cash basis or that its extension of credit and collection of accounts receivable is efficient. UP can be referred to this explanation. On the other hand, a low ratio implies the BLDP should re-assess its credit policies in order to ensure the timely collection of imparted credit that is not earning interest for the firm.

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INVENTORY TURNOVER Although the first calculation is more frequently used, COGS (cost of goods sold) may be substituted because sales are recorded at market value, while inventories are usually recorded at cost. Also, average inventory may be used instead of the ending inventory level to minimize seasonal factors. A low turnover implies poor sales and, therefore, excess inventory like UP has. A high ratio implies either strong sales or ineffective buying as what taking place in BLDP. High inventory levels are unhealthy because they represent an investment with a rate of return of zero. It also opens the company up to trouble should prices begin to fall. EQUITY RATIO A high equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense. Comparing UP and BLDP, BLDP have higher equity ratio in 2009. If a lot of debt is used to finance increased operations, the BLDP could potentially generate more earnings than it would have without this outside financing. If this were to increase earnings by a greater amount than the debt cost, then the shareholders benefit as more earnings are being spread among the same amount of shareholders. However, the cost of this debt financing may outweigh the return that the company generates on the debt through investment and business activities and become too much for the company to handle. This can lead to bankruptcy, which would leave shareholders with nothing. DEBT RATIO A debt ratio of greater than 1 indicates that a company has more debt than assets; meanwhile, a debt ratio of less than 1 indicates that a company has more assets than debt. In 2009, both company in plantation sectors shows that both have more assets compared to liabilities. Used in conjunction with other measures of financial health, the debt ratio can help investors determine a company's level of risk. RETURN ON SALES This measure is helpful to management, providing insight into how much profit is being produced per dollar of sales. As with many ratios, it is best to compare a company's ROS over time to look for trends. An increasing ROS indicates the company is growing more efficient, while a decreasing ROS could signal looming financial troubles that refers to UP.

RETURN ON EQUITY Return on equity reveals how much profit a company earned in comparison to the total amount of shareholder equity found on the balance sheet. A business that has a high return on

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equity is more likely to be one that is capable of generating cash internally. For the most part, the higher a company's return on equity compared to its industry, the better. For 2009, UP is more capable in generating cash compared to BLDP.

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COMPARISON SECTORS

CONSUMER PRODUCT SECTOR (OFIHD)

PLANTATION SECTOR (UP)

WORKING CAPITAL

27,508,190

415,176,666

CURRENT RATIO

3.06

4.34

QUICK RATIO

2.11

3.50

ACCOUNT RECEIVABLE TURNOVER

8.62

22.52

INVENTORY TURNOVER

6.96

4.80

EQUITY RATIO

0.27

0.14

DEBT RATIO

0.21

0.12

RETURN ON SALES

0.07

0.38

RETURN ON EQUITY

0.08

0.18

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As to compare the performance of the consumer product sector and plantation sector, OFIHD and UP been chosen to represent the average performance in the industry. OFIHD represent the performance of consumer product sector while UP represents the performance of plantation sector. As the working capital has huge difference, working capital is going to be critical for the consumer products industry. Businesses need to be vigilant and actively manage debtors, inventory and payables before cash levels are drained over the slower period. The current ratio shows slightly difference where each sectors has difference price of current assets has to cover each RM1.00 in current liabilities. The difference occurred due to the ignorance timing of cash received and paid out. For example, if all bills are due this week, and inventory is the only current asset, but wont be sold until the end of the month, the current ratio tells very little about the companys ability to survive. The quick ratio indicates which sectors of businesses vulnerability to risk. This ratio often used by creditors to determine the ability of the business to repay loans. The ratio shows that plantation sector quickly convert their assets into cash and all current liabilities. This indicates the extent to which consumer product could pay current liabilities without relying on the sale of inventory. The account receivable turnover shows significant differences due to the nature of business where plantation sector need longer time to get back the invested money as the business requires time for the plantation to grow. This not happen to consumer product sector because it did not have to wait for growing period. The inventory turnover shows the consumer product sector has bigger number of times that they can sell during the 3 years. Generally, a high inventory turnover is an indicator of good inventory management. But a high ratio can also mean there is a shortage of inventory. A low inventory turnover may indicate overstocking or obsolete inventory. The equity ratio of plantation sector is about half percentage of consumer product sector because the percentage where a high equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense. The debt ratio shows the ratio between capital invested by the owners and the funds provided by lenders. Too much debt can put the sector at risk but too little debt may mean not realizing the full potential of business and may actually hurt your overall profitability. This is particularly true for larger companies where shareholders want a higher reward than lenders. The return on sales measure is helpful to management, providing insight into how much profit is being produced per dollar of sales. As with many ratios, it is best to compare a company's ROS over time to look for trends. An increasing ROS indicates the company is growing more efficient, while a decreasing ROS could signal looming financial troubles.

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The return on equity determines the rate of return on investment in the business. As an owner or shareholder this is one of the most important ratios as it shows the hard fact about the business.

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CONCLUSION
To sum up, the performance of company in consumer products sector and plantation sector can be evaluated when calculating the financial ratios that relates to the operations in the business. This liquidity, leverage, profitability, and management ratios allow the business owner to identify trends in a business and to compare its progress with the performance of others through data published by various sources. The owner may thus determine the business's relative strengths and weaknesses. When it comes to investing, analyzing financial statement information is one of, if not the most important element in the fundamental analysis process. At the same time, the massive amount of numbers in a company's financial statements can be bewildering and intimidating to many investors. However, through financial ratio analysis, we can identify which company performing well in the sectors. In my opinion, based on the ratios calculated, in consumer products sector, Oriental Food Industries Holdings Berhad performed well compared to Mamee-Double Decker (M) Bhd. On the other hand, in the plantation sector, United Plantation Berhad currently performing much better compared to BLD Plantation Berhad. In addition, the consumer product sector shows better performance compared to plantation sector. However, the nature of the business influences the performance of the company. Although relatively small in size with planted area of only 46,100 hectares, United Plantations is still one of the most efficiently managed plantation groups in the country with superior yield and cost-competitive operations. This is due to its continued efforts in upgrading its facilities and infrastructure.

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