You are a fresh graduate who has recently been hired as a Financial Analyst within an investment arm of a multinational corporation based in Kuala Lumpur.
Your late grandfather has left with you with a legacy of RM 10,000,000 in his will and you would like to invest this amount of money in a Malaysian public listed company listed on Bursa Malaysia. You believe that this legacy amount of RM 10,000,000 will grow in the future and you being a financial analyst do not believe in speculation and short term investment in order to sustain your wealth in the long run.
Required:
Your task is to select a public limited company listed on Bursa Malaysia in which you think it is worth to invest your RM 10,000,000 legacy in order to create sustainable wealth for the future.
The reasons for the selection of the company must include the following criteria:
1. Corporate Governance
• Define what Corporate Governance is.
• Refer to your chosen company and analyse on the underlying principles of Corporate Governance practiced within the company. (PLEASE SUMMARIZE FROM THE ANNUAL REPORT 2011)
2. Corporate Social Responsibility
• Define what Corporate Social Responsibility is.
• Refer to your chosen company and analyse on the four dimension of Corporate Social Responsibility practiced within the company. (PLEASE SUMMARIZE FROM THE ANNUAL REPORT 2011)
3. Interpretation of the Financial Statements (Ratio Analysis)
• Define what Ratio Analysis is.
• Calculate the relevant ratios from the figures extracted for the Annual Report of your chosen company. Please calculate only the important ratios (liquidity ratios, profitability ratios and solvency ratios) from the Income Statement and Balance Sheet of the company (from the Group column only) after calculating the ratios, then write a comment based on the ratios between the year 2011 and 2010. Does the ratio increases or decreases between 2011 and 2010 and why increase and decrease between 2011 and 2010. (PLEASE SUMMARIZE FROM THE ANNUAL REPORT 2011).
4. Market news / publicity (good and bad)
• Is the company having a good publicity/news or bad publicity/news? If they did have a bad publicity/news, how they overcome the bad publicity/news? If they did have a good publicity/news, just write what are the good publicity/news they are receiving. (PLEASE SUMMARIZE FROM THE ANNUAL REPORT 2011)
5. Any future investments that the company plans to undertake based on the information obtained from the Annual Report
• What are the future plans for their company? (PLEASE SUMMARIZE FROM THE ANNUAL REPORT 2011)