GUI SEK TING 220312VOON LI ZHEN 220347NORLIANABINTI NOOR EZAT 221306PARIMALAR A/P RAJINDRAN 221407MUHAMMAD NURFAIZAN BIN NORDIN 222168

PROJECT PRESENTATION Group 6

A-RANK BERHAD

Commenced operations in 1998 and listed on Bursa Malaysia on 11 May 2005

Principal Activity: Investment holding3 subsidiary:(i) Formosa Shyen Horng Metal

Sdn Bhd(ii) HongLee Group (M) Sdn Bhd(iii) HongLee Design and

Marketing Sdn Bhd

Largest manufacturer and supplier of aluminum billetsOne of Asia’s leading suppliers of aluminum extrusion billets.

Presently exports about 40% of its production.

Exports market:(i) Africa

(ii) Europe(iii) South Asia

(iv) South America(v) South East Asia

Revenue: RM400.4 m RM431.5 mProfit Before Tax: RM7.8 m RM8.5 mProfit After Tax: RM7.2 m RM7.4 mEPS: 6.16 centNet Asset Per Share: 61.8 cent

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Name Position BackgroundDato’ Shahrir Bin Abdul Jalil Independent Non-Executive Director –

Chairman Advanced Diploma in Estate Management LLB (Hons) degree Is presently the managing partner of

Messrs Shahrizat Rashid & Lee

Tan Way Lay Managing Director Diploma in civil engineering Over 20 years of experience in aluminum

extrusion industry

Tuan Haji Ahmed Azhar Bin Abdullah

Senior Independent Non-Executive Director

Bachelor of Science in Accounting Master of Business Administration

Dr Leong Chik Weng Independent Non-Executive Director Ph.D in Chemical Engineering Currently the founder and CEO of e-Lock

Corporation Sdn Bhd

Wong Tze Kai Independent Non-Executive Director Bachelor of Law Currently the Executive Director of CPK

Solutions Sdn Bhd

Gan Choon Sun Executive Director Diploma in Civil Engineering First Class Honour Degree in

Manufacturing Management Engineering Currently Executive Director of Formosa

Shyen Horng Metal Sdn Bhd

BOARD OF DIRECTOR220312

AUDIT COMMITTEE

Audit Committee was established on 17 March 2005.Audit Committee shall consist of at least three (3) members, all of

whom must be independent Non-Executive Directors. In my opinion, all of them are independent members, so can ensure

they act in an objective and free from any conflict of interest or any external influence.

Name Position BackgroundTuan Haji Ahmed Azhar Bin Abdullah (Chairman)

Senior Independent Non-Executive Director

Bachelor of Science in Accounting Master of Business Administration

Dr Leong Chik Weng (Members) Independent Non-Executive Director Ph.D in Chemical Engineering Currently the founder and CEO of

e-Lock Corporation Sdn Bhd

Wong Tze Kai (Members) Independent Non-Executive Director Bachelor of Law Currently the Executive Director

of CPK Solutions Sdn Bhd

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Statements enclosed by A-Rank Bhd consist of : a statement of financial position (balance sheet), a statement of comprehensive income, a statement of changes in equity a statement of cash flows notes comprising a summary of significant accounting policies and explanatory notes.

MFRS 101 Presentation of Financial Statement on para 10

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AUDIT REPORT• LUM CHIEW MUN, a Chartered Accountant of BDO audited

the financial statement.• The type of audit report issued was unqualified audit report with explanatory paragraph or modified working.

Circumstances:

All statements - balance sheet, income statement, statement of retained earnings, and statement of cash flows- are included in the financial statements.

The ISAs have been followed in all respects on the engagement.

Sufficient evidence has been accumulated and the auditor has conducted the engagement in a manner that enables him or her to conclude that the three standards of field work have been met.

The financial statements are presented in accordance with generally accepted accounting principles. This also means that adequate disclosures have been included in the footnotes and other parts of the financial statements.

Emphasis of a matter.

Subsidiaries of ARANK Bhd• All the subsidiaries are audited by the same auditor as the parent who is BDO. The audit report on the financial statements of the subsidiaries was not qualified

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If I was the investor, I will suggest…

….suggest the entity should show the relevant information for each business decision to make financial statements more useful. For example, it may be difficult to understand how the financial statements can help in reducing uncertainty.

….should show the relevant non-financial performances such as the management of human resources.

Traditionally the main performance measure for staff was cost (a FPI).

Suggestion that can improve the quality of report…

FIRST : If ARANK BHD can show the comparing between 5 years, the investor and other user can take more information from the Annual Report to analysis company performance.

Example :

SECOND : The company also can show out the expenses in the Company Social Responsibility (CSR) to make sure the future investor and shareholder have a good perceptive toward the company.

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  2013 20121.0 Liquidity    Current Ratio 27.1934 97.0704Net working Capital to sales ratio 0.26292 4.2082

2.0 Profitability    Operating profit margin 97.1563 91.7094

Net profit margin 97.156352 68.003643.0 Activity    Total Asset Turnover 32.4531 10.5844Fixed Asset Turnover 35.6074 19.2464.0 Financial leverage    Debt Ratio 3.2575 4.6364Equity multiplier 1.00326 1.00465.0 Shareholder ratios    Earnings per share 6.16 6.00Dividend per share 2.0 2.06.0 Return ratios    Basic earning power ratio 31.5302 9.6605

Return on assets 31.5302 7.1978Return on equity 33.1655 7.2313

Share Price Movement

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CONCLUSION

Annual reports of A-Rank Bhd are prepared on the assumption that a company is a going concern

A-Rank Bhd is a going concern when it is considered to be able to pay its debts as and when they are due, and continue in operation without any intention or necessity to liquidate

Besides, A-RANK BHD had compliance with most of the legal requirements in its operation and it would not affect its going concern while A-RANK would need to pay more attention on uncertain or difficult economic conditions such as inflation and recession for its going concern purpose.

The financial report for the year 2013 is well-performed compare to 2012

A-RANK BHD would still able to keep running its operation in future.

Financial ratio A-Rank Bhd in 2013 is performed very well and better than 2012

A-RANK BHD runs

a high

probability

of going concern in 2013

There is an increases from 2012 to 2013 which consists, operating profit margin, total asset turnover, fixed asset turnover, earnings per share, basic earning power ratio, return on assets and return on equity

There is a decrease too in current ratio, net working capital to sales ratio, debt ratio and equity multiplier

Based on the table and graph, the share prices for A-RANK BHD fluctuated in the range of RM63.00 to RM65.00 from the period of 25th July 2014 until 8th October 2014.

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