Content

No.

Content

(A) Stakeholders of Pansar Bhd.

(B) Accounting Concept

- Money Measurement Concept
- Accruals Concept
- Consistency Concept

(C) Analysis
of
Company
Performance and Financaial
position
- Statement of Comprehensive
Income
- Statement
of
Financial
Position

Page

3-4

4-9

(D) Decision of Investment in the 9-10

company

Appendix

11-12
Page | 1

(A) Stakeholders of Pansar Bhd

Stakeholders is a person or entity that has interest or concern about the economic
performance of the business. Stakeholders are basically divided into two different user
categories which is internal and external. Internal users refer to the ones who use accounting
information in making decisions related to the companys operations. Meanwhile, on the other
hand, external users are not involved in the operations of the company but hold some financial
interest.
An example of external user are the investors. An investor uses the help of the
annual report to make relevent decisions. They could determine wheather to purchase
stocks,sell stocks or hold stocks. They are interested to know the strenght of the companys
financial position and their profitability. The annual report will be helpful for them to evaluate
the past performance and to check if its safe for them to invest. The investors can be separated
into two,the present and the potential investors. Present investors need the information in
order to decide whether they should continue in the present or not. Future investors in the
other hand ,may require the information to determine whether they should buy the shares of
the company or to make investment in some other better companies.
Besides ,an example of internal user is the owner. Owner use the annual report for
the sense of analyzing the organisations performance and the position of the company. They
want to know whether their funds are being properly used or are in the other way around. The
annual report helps them to identify the profitability and the financial position of the concern
in which they have invested their funds. Later on the would be taking some appropriate
measures to improve the companys results or we could say to increase their income.

Page | 2

(B)Accounting Concept
Money Measurement Concept.
In this concept, all the economic events are identified and measured in only financial terms.
The unwanted information is eliminated from being recorded such as the motivational level of
staff, inefficient management,or poor working condition cannot be recorded because it cannot
be measured in the monetary terms. All material transactions and events recorded in the
financial statements in Pansar Bhd. are recorded in a unit of monetary currency which is in
Ringgit Malaysia.
Accruals Concept.
Under accruals concept, all income has to be recorded in the accounting period in which it
was earned before. On the other hand, expenses must be recorded in the accounting period in
which they are incurred. The accured income in Pansar Bhd. was recognized in the accounting
period in which it arise rather than in the subsequent period in which they will receive. While
the accured expense in Pansar Bhd. was recognized in the accounting period in which it
occurs rather than in the following period in which it will be paid. Accrual concept ensures
that expenses are matched with the revenue earned in an accounting period.
Consistency Concept.
The consistency concept states that the company should use the same accounting method for
similar events and transactions over time. Similar transactions should be accounted for using
the same accounting method over time. This gives a consistency in the financial information
that the creditors and investors needed. As we can see, Pansar Bhd has used the same straight
line method in all their transaction recorded. This makes it easier to compare the financial

Page | 3

statement. Eventually the investors and the creditors would be able to compare their financial
performance or the financial position year after year.

(C) Analysis Of The Company Performance and Financial Position.

Statement of Comprehensive Income
i.

Total Expenses

Total expenses
RM48,000,000
RM47,500,000
RM47,000,000
RM46,500,000
RM46,000,000
RM45,500,000
RM45,000,000
RM44,500,000
RM44,000,000
RM43,500,000
RM43,000,000

total expenses

2012

2013

Based on the annual report of Pansar Bhd. from year 2012 to year 2013, the total expenses on
group in 2012 are RM 47,607,285 while the total expenses on group in 2013 are RM
44,668,488. There is a decrease of RM 2,938,797 or 6.17% in total expenses between two
years. The most obvious decreasing expense between year 2012 and year 2013 is other
operating expenses. It is decrease from RM 4,893,678 to RM 1,137,125 which is 76.76%
from year 2012 to year 2013. Besides, the finance costs and income tax expenses are also
decreases from year 2012 to year 2013 which is from RM 951,153 to RM 872,067 (8.31%)
and, RM 5,861,303 to RM 5,742,059 (2.03%) respectively. On the other hand, there are also
Page | 4

two expenses increase from year 2012 to year 2013 which is selling and distribution expenses
and administrative expenses. Selling and distribution expenses increase from RM 8,324,399
to RM 9,291,732 (11.62%) while administrative expenses increase from RM 27,576,752 to
RM 27,625,505 (0.18%).
ii.

Total Revenue.

Group revenue
440,000,000
430,000,000
420,000,000
Ringgit,RM

Group revenue

410,000,000
400,000,000
390,000,000
380,000,000
Year 2012

Year 2013

Based on the Statement of Comprehensive Income of the annual report, the Groups revenue
for financial year 2013 was RM429.9 million compared with RM399.1 million in year 2012,
there is an increase of 7.7 percent or RM30.8 million in total revenue between two years.

Page | 5

iii.

Profit after Taxation (Net Profit)

Net Profit
18000000
17500000
17000000
Net Profit

16500000
Ringgit,RM 16000000
15500000
15000000
14500000
2013

2012

Based on the annual report of Pansar Bhd from year 2012 to year 2013, the profit after
taxation on group in 2012 are RM 15,805,478 while the profit after taxation on group in 2013
are RM 17,458,111. There is a decrease of RM 1,652,633 or 10.46% in profit after taxation
between two years.
Statement of Financial Position of Pansar Bhd
i.

Total Assets

Comparision of Total Assets between

Year 2012 and 2013
250000000
200000000

Current Assets
Column1

150000000
Ringgit,RM

100000000
50000000
0

2012

2013

Page | 6

From the chart above, we can found that the total assets of Pansar Bhd. rises a little from the
financial year 2012 to 2013 that is from RM 199,786,080 compare to RM 201,786,460
increase in the percentage of 10.2% and RM 2,018,380. Total assets of the group can be
divided into current assets and non-current assets.
Current Assets
Current assets increase RM 1,724,470 thats from RM 195,686,770 of the year 2012 to RM
197,411,240 of the year 2013 in the percentage of 0.88%. Based on the Statement of Financial
Position of Pansar Bhd. shown that only cash and bank balance; receivable, deposits and
prepayment; amount owing by contract customers and derivative assets have some decrease.
Others receivable, deposits and prepayments decrease 9.91% from the total of the year 2012
to 2013 meanwhile cash and bank balance decrease more which the percentage is 25.42%
between the two years 2012 and 2013. All of the others current assets increase widely.
Non Current Assets
Total non-current assets have slightly increase from the year 2012 with amount of RM
4,018,310 to RM 4,375,220 in the year of 2013 which is the percentage of 7.2%. From the
Statement of Financial Position provided by Pansar Bhd. Non-current assets property, plant
and equipment and also intangible assets increased have made the differences of the amount
between the year 2012 and 2013. But the only one non-current assets deferred tax assets
decrease little bit in the percentage of 14.93%.
ii.

Total Liabilities

From the chart, it shown that the Groups total liabilities for financial year 2013 was RM
58,061,336 compared with RM 68,895,766 in year 2012, there is a decrease of 15.73%. Total
liabilities can divided into two parts, which are non-current liabilities and current liabilities.

Page | 7

Comparison of Total Liabilities between

Year 2012 and 2013.
70,000,000
65,000,000
2012
2013

Ringgit, RM 60,000,000

55,000,000
50,000,000

Total Liabilities

Non-Current Liabilities
Non-current liabilities shown a sharp fall between 2012 and 2013, it dropped drastically from
originally RM 10,575 to RM 5,054, it decreased by 52.21% in year 2013. Actually, the main
reason for the higher decrease in non-current liabilities, which is due to the decrease in
deferred tax liabilities, it is a tax liability that company owes and does not pay at that current
point.
Current Liabilities
The total of current liabilities had slightly fallen about 15.72%, which from RM 68,885,191
drop to RM 58,056,282. Derivative liabilities and amount owing to contract customer
decreased, which highly affected the total of current liabilities. Especially, derivative
liabilities decreased by 71.87%. Besides, provision for taxation and the percentages of bank
borrowings also decreased about 46.76% and 41.99% respectively. Meanwhile, other
payables, deposits and accruals received in year 2013 were less than year 2012 about 20.14%.
But, the trade payables, amount owing to related companies, and the provision for employee
benefits had an increased from year 2012 to 2013, which about 4.85%, 48.85%, and 65.41%
respectively.
Page | 8

iii.

Owner Equity

Comparison of Total Equity between Year

2012 and 2013
145,000,000
140,000,000
2012
135,000,000
Ringgit,RM

2013

130,000,000
125,000,000
120,000,000

Total Equity

With add on the amount of foreign exchange reserve and the increases of retained profits
which are realised and unrealised, the companys total equity attributable to owners of the
parent increased about 9.82% compared to previous year, which is from RM 130,872,314 to
RM 143,725,124. Besides that, the share capital of the company remain unchanged between
this 2 years that is 140,000,000.

(D) Decision of Investment in the Company

Based on the analysis made, I would invest in this company, Pansar Berhad. Firstly, the
reason why I choose to invest as the profit earned of this company is the company able to
cover up the companys liability and enable to earn the net profit for the financial year, which
is also earned higher than the previous years. For instance, the total net revenues in this
company increased with 7.73% from RM 399,103,980 to

RM 429,935,062.

From the balance sheet of the company, the total liabilities of the company decreased
by about 15.73% in 2013, this shows that the company able to repay back for the bank
Page | 9

borrowings like bank overdrafts and the total assets is increasing about 1.01%. Furthermore,
interest income, insurance claim received, income received from sales of scrap materials,
rental income, reversal of impairment on trade receivables in year 2013 increased about
2.50% while trade payables for year 2013 increased also about 4.85% and there is no reversal
of impairment on inventories in year 2013 .
Besides, this company is a stable and potential company, its principal activity is
investment holding while its subsidiaries are involved in the marketing and distribution of
construction and building materials, marine and industrial engineering products, woodengineering equipment and supplies, electrical and office automation products and supplies;
design, installation and service maintenance of commercial and industrial air conditioning and
ventilation systems and fire protection systems; and mechanical, electrical, construction and
engineering works and services as well as industrial and marine engineering works.
From the statement of financial position, we can see that the non-current assets had
increased by 7.20%. The improvement of investments properties and other investments in the
company, which means the investments gold increased. So, we can ensure that the company is
trying to larger its value in the market such as enlarge the current product range, introduction
of new products, venturing into rural communities, overseas expansion and etc.
Finally, the Groups future plans of this company include reinforce its market position by
introducing more and more new product lines, likewise growing its distribution network by
penetrating further into rural Malaysia and overseas markets. So, I would invest in this
company based on these reasons.

Page | 10

Appendix

Page | 11

Page | 12