(a)

Identify two stakeholders who would utilize the annual report

Shareholder is a person who buys the shares from the company by investigates the

companys financial report. Usually, he will focus on the income statement to knowledge
about the net profit margin. For example, comparison net profit margin of Malton Berhad
between from the year 2013 to the year 2014 was increasing 10.4%. Besides, he was also
focus on the statement of financial position. For example, total asset Malton Berhad in
the year 2014 is RM1,298,096,000. Therefore, he will know which segment is operating
well and which segment has flow problems in the company and that company are suitable
for invest or not. The decision he made is based on the comparison between the year and
year from the annual report of the company. For example, comparison total asset Malton
Berhad from the year 2013 to the year 2014 was increasing 28.94%. Besides, he will
predict the feedback of that they will get. For instance, if the process of Malton Berhad is
developed in the future time not only the price of share will being higher but also Malton
Berhad will increasing the dividend from 3% per share to the higher.
Creditor is a person who was borrowed the money or sell goods on credit to the
company. He will always refer to the statement of financial position which includes
assets, liabilities and equity between the year and year to know the ability of the company
to pay off the debt. For example, the working capital ratio Malton Berhad in the year
2014 is 2.72:1. After he knew about it, he can make a decision easier. For example, when
he knew that working capital Malton berhad is high which means the company is stable
and the percentage being doubtful debt is lower. So, he can let Malton Berhad to buy
more goods on credit. The creditor will be also being well in future time by selling on
credit because it was also increasing their quantity of selling.

(b) Identify and explain THREE (3) accounting concepts applied by the company.
1. Money Measurement
The money measurement is record the transaction and business events of the company
from the financial statement by using the monetary term in the unit of (RM). Using in the
term of (RM) can be measured in monetary terms of (RM) to consider a part of
accounting. For instance, Malton Berhad did not record the location of business in the
unit of (RM) because it is non-monetary factor.
2. Conservatism Principle
Conservatism principle is estimate the possible future loss by doing the provision account
in the company for know about expected gains are not gains. Provision account that will
be least amount of assets and without the company from the gains and became loss. For
example, the market price of property, plant and equipment of the company Malton
Berhad will always drop and they must always opening the provision for depreciation
account which is to estimate the amount of gain or loss in the company.
3. Accrual Concept
Accrual concept is recognized the revenue and expenses was occurs in period of time,
even though the company overpaid or did not receive any cash. This concept will let
Maton Berhad save the time in the business transaction to get more profit but the
company must be incurring the possibility of being bad debts. For instance, trade
receivables for Malton Berhad which was comprise from customers for construction
works carried out, project management services and sales of properties developed and do
not receive the cash in the period of time.

(c) Analyze The Company Performance Statement Of Comprehensive Income

Revenue
Revenue is the gross increase in owner's equity resulting from business activities entered
into for the purpose of earning profit.
Years
2014
2013
Revenue
RM500,300,000
RM359,179,000
Revenue = [(RM500,300,000-RM359,179,000)/RM359,179,000] X 100%
= (RM141,121,000/RM359,179,000) X 100%
= 39.29%
In comparison, revenue Malton Berhad in year 2014 is greater to compare with the year
2013 and more effect by the increasing RM140,000,000 completed properties: non-cash
transaction in the year 2014. Based on the annual report, the completion of the Asset
Exchange transaction with (BDDSB) does not involve any cash proceeds accruing to
the Group and has resulted the Group recognizing the Subject Entitlement amounting to
RM140,000,000 as its investment property. In concluding, effective revenue in
comparison is better and will lead the company develop in the future time.

Revenue

RM'000
600000
400000
200000
0
2014

2013

Years

Expense Before Tax

Expense before tax is operating cost of the business to make profit and is not include tax.
Years
2014
2013
Expense Before Tax
RM418,228,000
RM308,387,000
Expense Before Tax = [(RM418,228,000-RM308,387,000)/RM308,387,000] X 100%
= (RM109,841,000/RM308,387,000) X 100%
= 35.62%
In comparison, the expense before tax in the year 2014 has been increasing
RM109,841,000 because all method in the expense before tax are increasing. Besides, the
increasing cost of sales is more effective by the cost of construction contracts
RM13,184,000 and the cost inventories sold which is lead the expense before tax
increasing RM87,822,000. By the increasing expense of the company will also lead the
company became better because the increasing cost of sales means the company was
buying more inventories and the cost of contraction contracts also make increasing the
service of the business to get more profit in the future period.

Expense Before Tax

RM'000
150000
100000
50000
0
2014

2013

Years

Net Profit
Net profit is the amount of profit after taxation which remains after deduction of
operating expenses and income tax expenses
Years
2014
2013
Net Profit
RM52,043,000
RM35,387,000
Net Profit = [(RM52,043,000-RM35,387,000)/RM35,387,000] X 100%
= (RM16,656,000/RM35,387,000) X 100%
= 47.07%
In comparison, the profit have increased RM16,656,000 from the year 2013 to the year
2014 though income tax expense was increasing RM13,044,000 from the year 2013 to
the year 2014 which is effect by the tax at the applicable tax rate of 25%. Besides, the
business is also increasing RM40,045,000 in the gross profit which is effect by the
increasing 39.29% in the revenue from the year 2013 to the year 2014. Therefore, the
increasing of the net profit prove that the company was become betters.
Net Profit

RM'000
60000
50000
40000
30000
20000
10000
0
2014

2013

Years

Analyze The Company Performance Statement Of Financial Position

Total Assets
Years
2014
2013
Total Assets
RM1,298,096,000
RM1,006,757,000
Total Assets = [(RM1,298,096,000-RM1,006,757,000)/RM1,006,757,000] X 100%
= (RM291,339,000/RM1,006,757,000) X 100%
= 28.94%
The total assets is property of the company and have been increasing by RM291,339,000
because the non-current assets and current assets both are increasing and have a good
effect in the financial years. Increasing RM183,289,000 in non-current assets can lead the
company increase the quality of service and lead the demand curve shift to the right for
increase the quantity. Besides, the current assets of the company has increase
RM108,050,000 in the financial years. Trust that, the higher asset of the company will
increasing the profit of the company and lead the company growing in the future period

of time.
Total Assets

RM'000
1500000
1000000
500000
0
2014

2013

Years

Total Equity
Years
2014
2013
Total Equity
RM659,326,000
RM612,424,000
Total Equity = [(RM659,326,000-RM612,424,000)/RM612,424,000] X 100%
= (RM46,902,000/RM612,424,000) X 100%
= 7.66%
The total equity is the capital of the company which include the investment of the
investors and it is become higher in the year 2014 because effect by the increasing in
RM4,446,000 in the share capital and RM42,456,000 in the reserves from the year 2013.
The share capital has increasing means that shareholder was increase and they are believe
that the company will be growing in the future. Besides, the increasing of reserves is
most effect by the retained earnings, it was increasing RM40,862,000. Therefore, the
increase of the equity has a good efficient to the company for investment in other area in
the future time.

Total Equity
RM'000
700000
600000
500000
400000
300000
200000
100000
0
2014

2013

Years

Total Liabilities
Years
2014
2013
Total Liabilities
RM638,770,000
RM394,333,000
Total Liabilities = [(RM638,770,000-RM394,333,000)/RM394,333,000] X 100%
= (RM244,437,000/RM394,333,000) X 100%
= 61.99%
The total liabilities are all the amount debt of the Malton Berhad. In comparison, the
increasing of the liabilities in the year 2014 was bring positive effect to the company
because the increasing of non-liabilities mostly is effect by the increase of bank
borrowings RM176,432,000. This can lead the company make more investment. Besides,
the increasing of current liabilities is RM69,941,000 because the supplier were trust to
the company and giving more credit to the company, then the company will have more
cash to invest in other area. Therefore, the increasing of the total liabilities in the Malton
Berhad can make the company to get the higher profit in the future time.

Total Liabilities
RM'000
700000
600000
500000
400000
300000
200000
100000
0
2014

2013

Years

(d) Your decision as to whether you would invest in the company or not, based on
the analysis made. You are required to elaborate your decision.
Yes, I will do the investment to Malton Berhad because based on the analysis
is made from the statement of comprehensive income and the financial position in the
year 2014 can lead us knowledge that most area in the company is smooth.
Based on the analysis that is made in the net profit was increasing 47.07%
which was proving that the company was earned. Therefore, the company has the ability
to continuously the business in the future period mean that the company can be do
investment.
Besides that, the increasing revenue 39.29% in the year 2014 is the higher
percentage when compare to the previous years it can prove that the service in the
company was became better. The good services are also means that the company was
growing. Therefore, it can be consider for do investment.

From the analysis made from the total assets in the year 2014 are increasing
28.94%. It is show that the property of Malton Berhad was become higher. Therefore,
Malton Berhad was even more stable to do investment.
Thereafter, the total liabilities of the company were increasing 61.99%
because the supplier or who were provide lender or allow long time to Malton Berhad
was trust that it was stable. After then, Malton Berhad will have more cash to invest in
another area for maximum the profit in the future period. Therefore, I will do the
investment to this company because the profit is still increasing in the future time.