Richwood bersatu holdings

NIK HARUN AL-RASHID BIN NIK ZAIDIN (163302)

NUR SUHANA BT. HAMDAN (162034)LIYANA BT.AHMAD NIZAR (162422) SANTEY ANAK BERIKOM (161228)

NORAIMY BT. RAZALI (163955)

Company BackgroundCompany’s Name Richwood Bersatu Holdings

Company’s AddressRichwood Bersatu Holdings, Tingkat 13-

17, Menara Hutan Permai, Jalan Serumpun, 56100 Cheras, Kuala Lumpur

Date of business commencement 18 February 2012

Type of ownership Share holder

Total share 20% per members

Tel no. 03- 88827771/ 03-88827772

Fax no. 03- 88827770

Email suggestion@rwholdings.com

Web page www.richwoodbersatu.my

harun

MISSION

Maximizing the production of timber-based products by the

production of high- quality and accredited (CoC) products using

the parallel to sustainable forest

management.

VISION MOTTO

To be a leader in tropical timber-based

industries and competitive in the

global market by the year of 2020.

Every inch is money

yana

Objectives

To gain maximum profit in business

To produce an accredited wood-based products

To produce a good quality and environmental friendly products

To maintain the integrity in business

aimy

Functions

Marketing licensed wood-based products (e.g veneer, plywood, fibreboard, chipwood)

Helping other companies in the same industry in promoting and marketing their wood-based products.

Doing social services in order to improve economic of local community

aimy

Organization chart

Ketua PengarahNik Harun Al-Rashid bin

Nik Zaidin

Pengurus Pentadbiran

Nur Suhana Binti Hamdan

Pengurus KewanganLiyana Binti Ahmad Nizar

Pengurus Pemasaran

Noraimy Binti Razali

Pengurus Pembangunan dan

PenyelidikanSantey Anak Berikom

sue

Logo and rationale of logo

LOGO RATIONALE

Circle The board members always unite and cooperate to each other

Tree Our main products are wood-based

Combination colours in stem

We produced many types of wood products

Green colour Our products are environmental friendly

White colour We run a legitimate business

Red colour We always be brave to take risk in business

sue

Products and services

Plywood Veneer Particle board

Chipwood

san

Services

Social• Community projects

• Scholarships and bursary programmes

Environmental• Using bio-composite

material in the production of wood fiber products

• Sustainable waste disposal

san

Balance sheet

harun

Income Statement

sue

Retained Earning

aimy

Cash Flow

yana

Ratio Analysis

Liquidity Ratio

Liquidity Ratio

No. Ratio 2012 2013

1. 1.706x 1.785x

2. 0.664x 0.671x

The current ratio shows that the company are able to meet its short-term financial obligations of 1.7 times over the current liabilities.

However, according to the Acid Test Ratio (Quick Ratio) which already subtracted the least liquid of current assets (inventory), the company are not able to meet the short-term financial obligations of only 0.6 times over the current liabilities.

harun

Efficiency Ratio

Efficiency Ratio

No. Ratio 2012 2013

3. 197 days 201 days

4. 1.026x 0.978x

5. 2.425x 2.536x

6. 0.498x 0.492x

Yana & sue

Efficiency Ratio The Average Collection Period ratio shows that it takes almost 200 days for the company to

collect its credit sales from customers.

Solution : The company should have a very firm policies regarding the payback period from the customers.

The Inventory Turnover Ratio of the company indicates slow conversion of inventory into salable products. This is bad for the company because holding excess inventory due to slow conversion process.

The Fixed Asset Turnover Ratio in 2012 (2.4 times) is almost effective as is in 2013 which is 2.5 times in using its plant and equipment to generate sales and profit.

According to the Total Assets Turnover, the company only have to utilize half of its total assets to generate sales.

Yana & sue

Leverage Ratio

No. Ratio 2012 2013

7.0.466

@ 46.6%

0.452 @

45.2%

8. 5x 5x

According to the Debt Ratio, almost half of the company assets is supplied by the creditors.

The Times Interest Earned Ratio is able to repay the interest payment up to 5 times per year.

Leverage Ratio

harun

Profitability Ratio

No. Ratio 2012 2013

9.0.195

@19.5%

0.33@

33%

10.0.156

@15.6%

0.264@

26.4%

11.0.097

@9.7%

0.162@

16.2%

12.0.078

@ 7.8 %

0.13@

13%

13.0.146

@14.6%

0.237@

23.7%

Profitability Ratio

San & aimy

Profit in relation to sales :The company profit margin ratios show good control of cost of goods sold and other expenses from year 2012 to year 2103. This means that the company cost is low and generally occur because of efficient operations.

Profit in relation to investments : The Operating Income Return on Investment in year 2013 is higher than it is in 2012. There is 16.2% of investment that generates the operating income.

Return on Assets (ROA) : The ROA of the company in year 2012 is 7.8% while it is higher in year 2013 which is 13%. This higher return in 2013 is resulted from a more efficient utilization of assets and lower use of debt in that particular year compared to year 2012.

Return on Equity (ROE) : The ROE of the company in year 2012 is 14.6% while it is higher in year 2013 which is 23.7%. Thus, in both year, ROE is higher than ROA which

San & aimy

DuPont Analysis

San & aimy