BasicsOfFinancialAccounting(BDAW2103)

FACULTYBUSINESSANDMANAGEMENT SEMESTER:06/YEAR:2012 COURSECODE:BDAW2103 BASICSOFFINANCIALACCOUNTING NAME : MARIANIBINTISUHAILI 770522135270001 770522135270 0194392557 marianisuhaili@oum.edu.my PPSarawak

MATRICULATIONNO : IDENTITYCARDNO. TELEPHONENO. EMAIL LEARNINGCENTRE : : : :

BasicsOfFinancialAccounting(BDAW2103)

1. Introduction Ajinomoto (Malaysia) Berhad is one of the companies in main board of Bursa Saham Malaysia. Ajinomoto (Malaysia) Berhad located at Lot 5710, Jalan Kuchai Lama Kuala Lumpur. Ajinomoto (Malaysia) Berhad have their own product and they are manufacturing or do their production. Ajinomoto (Malaysia) Berhad has constantly been committed to making improvement and produce new brand name. As we know, its too many product produce by Ajinomoto (Malaysia) Berhad which is wide range of seasoning and flovours to the industrial and people of Malaysia and their product become the most important things in our life. For example Aji-No-Moto, Tumix, Vono, Seri Aji, Aji-Shio, Pal Sweet, Slim Up and Aji Mix. We can found their product at anywhere like supermarket, mini market and so on. Ajinomoto (Malaysia) Berhad will continue to grow the product range and its quality by offer innovative products and by giving the highest standard and quality of services. Products manufactured by Ajinomoto (Malaysia) Berhad also certified by Islamic Development Department of Malaysia (JAKIM) which is for Halal certification. Its not only reflects for Muslims consumption but a deep understanding of local cultural and norms too. Ajinomoto (Malaysia) Berhad also give full commitment towards quality of the product by product certification and ISO 9001: 2000 certification. This certification done by SIRIM which to make sure they are provide a safety and high quality products and services. The company also have internal audit. The auditor among their employees itself, which they have an objective is to make sure all process in the company follow the rule and requirement that they have. To make sure food safety and in continually ensuring that our products are safe to be consumed has earned us the HACCP certification by the Ministry of Health. Performance for the last year the revenue grew by 11% or RM32 million for the year under review. By increasing in revenue can contributed higher domestic sales in terms of better selling price and higher volume.

BasicsOfFinancialAccounting(BDAW2103)

2. Information Needs Accounting is very important part in every company. Its can show us what condition of the company, what there are facing and its also as a tool for decision making for internal and external users. In the accounting also we can find the expenses for the particular year, new assests, plant or machine they buy. Dividend for the shareholder and for the future shareholder. In accounting also we get informtion for the company activities for the whole year and we know the stability for the company.

2.1 Internal users This information are the most important to internal user who are directly involved the management and operation of an entity. Accounting can give information for evaluationg performance of the company. All employee need to know the situation in the company for example how the profit gain by the company for every year. It is important for the increament of salary and so on. Accounting also important for the employee to make a planning and controlling the operation. Information in the accounting can be used for planning and controlling the operation of the company. From this information, the employee can make a proper planning for the operation the whole year. From here the company will make a more profit and give advantage to all employees. For example the employee can get extra money from overtime, promotion for the staff and staff can feel satisfy. Lastly, accounting can be used for decision making including determining price selection. Information inside the accounting is very important to make a decision making. For example the cost of production must be less than the price of the product in the market. From here the company will make the profit and can up their ranking in the Bursa Saham.

BasicsOfFinancialAccounting(BDAW2103)

2.2 External Users For the external users, who are parties outside the entity which have direct or indirect interest in an entity. Each of the user group may use the accounting information for different purposes. There are many people outside the company need the accounting information to make a decision and for future planning and also to making a countermeasure for everthing that have been done.

2.2.1

Investor

Accounting information very important for the investor. For the current investor they need to know the profit and lost gain by the company. Decision making by the current investor whether still want to maintain invest in the current company or not. The current investor also can increase the investment or decrease the investment depend on the company performance. Accounting information not only used by current investor but also for future investor and shareholder to make a decision whether they want to invest or not. Accounting information can give good or bad perception for future investor. If the company can make a good performance many future investor want to invest in the company. Shareholder also can get more if the company make a good performance. Shareholer also feel satisfy and maintain in the company. They dont sell their share to other company if company can maintain in a good condition.

2.2.2

Creditor

Accounting information also important for creditor (including supplier) and bank. Accounting information can determine whether granting a loan is variable or not. Its also can make sure the stability of the company. The creditor will appraise firms or company to repay their loan and they can get a better figure if they can achieve and maintain a good performance every year. From the accounting information also have their advatage. More creditors offer their product or services to the firm or company if company can get better performance.

BasicsOfFinancialAccounting(BDAW2103)

2.2.3 Government Its also important to government which is Inland Revenue, Statistic Department and Regulatory Bodies. From the accounting information, government can calculate the tax to be imposed for the company or firms. They also can ensure the compliance of regulation. Oversee the running of an organisation which complies to the government regulations. From the accounting, information inside there also important to the trade-union and Non-government Organisation (NGO). The information very important for welfare society and salary negotiations.

3. Extraction Of Information Form the annual report 2011, we can see the company make a profit. The company also sales good in high quantity different from the last year. We can see the profir and sales at the statement of comprehensive Income, statement of financial position, statement of changes in eauity and statement of cash flows.

3.1.1

Statement of Comprehensive Income The financial is for the year ended 31 March 2011. From the statement of comprehensive income, the company gain the revenue increase from the las year which is RM 316,165,220 (2011) and RM 284,616,880 (2010). From the data we know that the company make a lot of profit from last year. From the expenses company purchased for finished goods less from last year so the company can full utilized their supplier. They can make more goods from the less expenses. As we can see, net profit for the company income make more profit from the last year RM 25,870,244 (2011) and RM 23,939,091 (2010). The company also give high dividend for their company share high from last year. Dividend for last year only 15.00 per share compare to year 2011 they give 15.75 per share. From here we can see the company always make a profit.

BasicsOfFinancialAccounting(BDAW2103)

3.1.2

Statement of Financial Position From the statement of financial position, total equity and liabilities increase from the last year. There are included total assests, total liabilities, net assests, total equity and total equity and liabilities. In the current assests there have property, plant and equipment, prepaid land lease payments, investment in associate, other receivables, investment securities and other investments. Total for non-current assets increase from las year which is RM 106,155,305 (2011) and RM 104,907,377 (2010). For current assests they have inventories, trade and other recivables, derivatives and cash and cash equivalents. Overall total also increase from the last year current assests which is RM 164,016,975 (2011) and RM 134,678,870 (2010). So we know total assests absolutely imcrease from last year. Total assets for this year RM 270,172,280 which is increase 88.68% from the last year. The company gained more from total assests for this year. Stability of the company in a better condition. In the statement also have information for current liabilities and non-current liabilities. For current liabilities included retrirement benefit obligations, trade and other payables, derivatives and current tax payable. Total for curent liabilities also increase by RM 14,939,992 total increased from last year. There also have non-current liabilities which is included retirement benefits obligations and deffered tax liabilities. So, total liabilities for the company this year also increased from RM 49,983,540 (2011) and RM 35,469,9369 (2010). Here we can calculate total liabities increased by 92.70% from the last year. In the statement of financial position also have equity attributable to equity holders of the company. In the equity attributable they have share capital, share premium, retained earnings and other reserves. Here we can calculated total equity which is increased by RM 16,072,432 from last year. Finally we already have a figure for total equity and liabilities which is increase by 85.35% from las year.

BasicsOfFinancialAccounting(BDAW2103)

3.1.3

Statement of Changes in Equity From the statement of changes in equity, the company have information about transfer from evaluation reserves as at 1 April 2009. Total equity at 1st April 2009 RM 189,296,997 difference at 31st March 2010 have increasing in total equity. Differences for this two years is RM 14,819,311. So at the 31st March 2011 there are increased also from the last year. Total equity for the latest year is RM 220,188,740 much different from last year.

3.1.4

Statement of Cash Flows In statement of cash flows, more information we can get from here. There informaation inside the statement of cah flow are profit before tax, operating profit before working capital changes, cash generated from operations, cash flows from investing activities, cash flow from financing activities and cah and cash equivalents at end of the financial year. From the annual report, that show operationg profit before working capital changes for last year RM 42,650,467 and year 2011 was RM 44,580,270, increased by 95.67%. For cash generated from operations, last year (2010) RM 40,112,541 and this year 2011 was RM 41,529,564. This cash generated from operations also increased by 96.59%. The company makes more profit in the year 2011. The net cash generated from operationg activities, overall increased by 92.46% from last year report 2010. All above shows cash flows from operating activities. There also have information for cash flows from investing activities. Most of the activities in the statement are purchased of poperty, plant and equipment for making the product easier and must follow the new technology. From here they will produce product as well as product in the market. Total cash in investing activities are RM 13,106,870 for the year 2011. Last year they only spend RM 10,196,002 and its also shows increased in cash used for investing activities. For the year 2011, company gain more profit. From cash and cash equivalents at end of the financial year increased by 81.95 %. Total cash equivalent for the year 2011 are RM 68,767,151 different from last year RM
7

BasicsOfFinancialAccounting(BDAW2103)

56,354,967. From the annual report for the year 2011, employee of the company, investor and shareholders feel comfortable and happy working for the company. More the future investor will invest in the company due to stability of the company.

4. Assessment Of Additional Information From Annual Report Additional information ia about share buy back. For this company they did not enter into any share buy back transaction during thr financial year. The company also has neither granted any options nor issued any convertible securities during the financial year. For the information, company also did not sposor any depositary Receipt Progranne during the financial year. Also during the financial year, the amount of non-audit fees paid by the company to the external auditors for the certain amount. This activities is to make sure the company follow the customer needs and comply to the specification set by their requirements. From the information there were no material variations between audited results for the financial year ended 31 March 2011 against the unaudited results for the year ended 31 March 2011 released by the company previously. The company did not entered any materials contract. The company also did not have any profit guarantee during the financial year. Others company also did not gave any profit guarantee for their company. They only make guarantee for the produck that they produced. The company also adopted a policy of regular revaluation on its landed properties. As at 31 March 2011, the company did not carry out any revaluation exercise on its landed properties. All the detail transactions with related parties undertaken by the company during the financial year are disclosed in Related Party Disclosures of the Financial Statement. For maintained the corporate responsibilities, they have teambuiding training to all their employee. Here to make sure the employee will motivated to work and to make sure their employee will satisfy. They also make activites for fund raising activities on 23 January 2011. The company also have sales personnel training. This training conducted twice a year and the purpose of enhancing company products and merchandising knowledge among the participats through the presentations and hands on cooking activities.

BasicsOfFinancialAccounting(BDAW2103)

The company also committed with environmental issues in order to promote global sustainability. Activities for enviromental issues are Smile earth campaingn which initiated by the company since 2007. Their goals is to decrease adverse impacts on global environment and local ecosystems. Another activities are Eco Action Reusable food container and beverage mug. They lounched a project to reduce solid waste in Companys cafeteria on 27 September 2010. This project focused in encouraging Companys staff to utilise the reusable food container and beverage mug in cafeteria. The main objective are to increase awereness and reducing environment burden. The company also make environment safe and clean. They follow global clean up day to make sure any manufacturing product activities can make sure the safety environment. From the annual report, there are 139 Ajinomoto members took part in the activities.

5. Conclusion The company Ajinimoto is the big company and fomous not only in out contury but also in the world. Most of the customer using their product eveday and everywhere. From ther report we know that the company can make more profit if the company still habe a good planner for their company. All the director and board of director is experience person and they know which way they can follow. From time to time they produce new product to maintain their achievement for every year. This company gave a good benefit ro their employee, for their investors, shareholders and for the government. Employee feel safety and happy to working in this company. The company can give increment on their employee salary or can give bonus for the good achievement. The company also take actions to make sure their company in the right line, they make external audit twice of financial year. External auditor also make dicussion on the findings and the external audit with all the committee members in the company.

BasicsOfFinancialAccounting(BDAW2103)

6. References 1) Prof. Madya Dr Ku Nor Izah Ku Ismail & Rohaida Abd. Latif (UUM). Basic Of Financial Accounting (BDAW2103) : Meteor doc. Sdn. Bhd.,Taman Serdang Raya, Seri Kembangan, Selangor Darul Ehsan. 2) Annual Report 2011, Ajinomoto Malaysia Berhad

10