• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Accounting & Its Regulatory Framework of Scomi Group Bhd

Extracts from this document...


´╗┐KOLEJ LINTON B.A (Hons) Business Studies assignment REPORT Accounting & Its Regulatory Framework of Scomi Group Bhd Prepared by: Student 1: U0959729 (UEL ID) / R486374 (Passport ID) Student 2: U0959731 (UEL ID) / N06273071 (Passport ID) School of Business & Management Linton College 12/November/2010 Table of Contents Acknowledgmentpg.3 Introductionpg.4 Financial Ratio Analysis: Liquidity Ratiospg.5-7 2.1 Cash (working capital) ratio pg.5-6 2.2 Quick asset (acid test) ratio pg.6 2.3 Stock (average inventory) turnover period pg.6 2.4 Average debtors collection period pg.7 2.5 Cash or operating cycle pg.7 Working Capital and Cash Flow Statement pg.8 4. Scomi Group Bhd. annual report pg.9-10 Concepts, Conventions and Regulation of Scomi annual reportpg.9 4.2 Directors? report, the auditor?s report and the chairman?s statementpg.9-10 5. Qualitative & Quantitative point of Scomi Group Bhd.pg.11 Qualitative pointpg.11 5.2 Quantitative point pg.11 6. Conclusionpg.12 7. Appendixpg.13-18 8. Bibliographypg.19 Acknowledgment I would like to thank God for all His blessings. A lot of people have played a very important role in the successful completion of this report. In this section, I would like to express our appreciation for those who help our group directly and indirectly in our work. I would like to thank our group member for the valuable advice and support he has given me in the writing of this report. I would also like to thank my teachers, Mr. Alfred for his encouragement and guidance. My deepest thanks go to my fellow classmates for their understanding and support. ...read more.


This means that Scomi can get a clear picture to predict when their cash become solvent. Working Capital and Cash Flow Statement According to Calberg (2008), cash refers to the most liquid asset of the company. Many investors are mostly interested with value of cash that company has. By analyzing company cash flow the investor can get the measurement of company management performance that related to company funds. To focus more on the analysis of company funds, investor need to include concept of working capital. ?Working capital refers to the amount of money that a company has tied up in funding its day to day operations? (Pietersz, 2005-2010). This is done by analyzing the Scomi cash and working capital based on their cash flow statement for FYE 2008 and FYE 2009. According to cash flow statement for operating cash flow before working capital changed, in 2008 it was RM230,740 and has decreased to RM207,452 by 2009 (refer appendix 3 and 3.1). However, after working capital changed, the net operating cash flow was RM52,232 in 2008 and increased to RM149,401 in 2009. In summary, by including working capital, it acts as an important measure of company?s financial stability. According to both result in 2008 and 2009, Scomi cash flow statements and Scomi assets have been decreased after included the changes in working capital. From this data, investors can see a more accurate data of Scomi funds for their investment analysis. ...read more.


2009 average stock period: = 78 days 1.4 debtor collection period calculation Average debtors collection period: FYE 2005 average collection period: = 95 days FYE 2006 average collection period: = 93 days FYE 2007 average collection period: = 98 days FYE 2008 average collection period: = 104 days FYE 2009 average collection period: = 108 days 1.5 Cash cycle calculation Cash or operating cycle: average stock period + average collection period FYE 2005 cash cycle: 79 days + 95 days = 174 days FYE 2006 cash cycle: 78 days + 93 days = 171 days FYE 2007 cash cycle: 81 days + 98 days = 179 days FYE 2008 cash cycle: 77 days + 98 days = 175 days FYE 2009 cash cycle: 78 days + 108 days = 186 days Financial ratios for liquidity ratios data, chart and graph: 2. Liquidity ratios table Metric YEAR 2005 2006 2007 2008 2009 Cash (Working Capital) ratio 1.49 1.60 1.56 1.50 1.43 Quick asset (acid test) ratio 1.10 1.22 1.11 1.10 1.14 Stock (average inventory) turnover period 79 78 81 77 78 Average debtors collection period 95 93 98 104 108 Cash or operating cycle 174 171 179 175 186 2.1 Cash ratio Graph 2.2 Quick ratio Graph 2.3 Stock turnover period Graph 2.4 Debtors collection period Graph 2.5 Cash cycle Graph Cash flow statement analysis FYE 2008 and FYE 2009: 3 Cash flow statement 2008 and 2009 Metrix Year 2008 2009 Cash Flow Statements (before working capital changes) 230,740 207,452 Cash Flow Statements (after working capital changes) 52,232 149,401 3. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Accounting section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Accounting essays

  1. Contemporary issues in management accounting - Target costing,Life cycle costing andQuality ...

    Prevention costs are planned and are incurred before actual operation. Appraisal costs: These costs are associated with the supplier's and customer's evaluation of purchased materials, processes, intermediates, products and services to assure conformance with the specified requirements. Failure Costs: Costs that result from poor quality, such as the cost of fixing bugs and the cost of dealing with customer complaints.

  2. Ducati and Texas Pacific Group - A 'Wild Ride' Leverage Buyout.

    Based on growth estimates and breakdown EXHIBIT 5, we estimate sustainable growth of 6%, mostly attributed to volume increases as production becomes more efficient. In detail, volume growth stabilizes around 5.5% by 2003 and seems sustainable, pricing growth is nonexistent, and revenue from potential new products contributes another 0.5% growth.

  1. A brief synopsis and evaluation, in the light of subsequent reporting, of the history ...

    Any person assisting to retain the profit of crime is guilty of an offence and can be charged under the Criminal Justice Act 1988, The Drug Trafficking Act 1994 and the Prevention of Terrorism (temporary provision) Act 1989. Ownership and acquiring and exploiting criminal proceeds is an offence under the

  2. An analysis of the financial situation of Abbott Laboratories (Pakistan) Limited

    Economic: Economic sanctions against Pakistan in early 2000 affect the pharmaceutical industry as a whole. All of the imports are covered by foreign exchange contracts; hence the affect of the devaluation of local currency is minimized up to certain extent.

  1. The Effect of the Australian Government's Carbon Tax on the Stockland Property Development Company. ...

    The following discussion is based upon announcement of carbon tax associated with emission trading scheme. 2. Carbon tax: A carbon price is a price which implies the cost on pollution of the operating activities of the corporations. It is the cheapest and fairest way to cut pollution and build a clean energy economy.

  2. This report will incorporate an analysis of Blackmores LTD including, the level of leverage ...

    6.1 Assumptions The following valuation and sensitive analysis is based on the assumptions shown in Table 8 below. All assumptions listed in the Table will be discussed further in detail. Number Assumptions Details 1 Risk free rate (rf) = 10-year Australian Government Bonds yield = 5.56% 2 Market risk premium

  1. The topic I have chosen is the Business and financial analysis of a company ...

    Other sources for E-news papers, journals and articles used include : http://www.morningstar.co.uk http://www.ft.com http://www.telegraph.co.uk/ http://money.cnn.com/ www.time.com http://www.businessweek.com/ http://www.nytimes.com/ http://europe.wsj.com http://www.bbc.co.uk/ http://uk.reuters.com/ http://www.guardian.co.uk/ 2.3 Limitation of information gathering Primary source of information 1. Is expensive and time consuming to conduct and analyse.

  2. Free essay

    The purpose of this coursework is to collect stock data, use statistical tools and ...

    4 stocks have a mean return which is lower than the index. 3. HSBC, M&S, GSK and BP have negative average returns. Significantly, the volatility of the index was the lowest among all these stocks. Standard deviation of FTSE during that period was 4.74 while shares had standard deviation from 4.97 (GSK)

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work