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REPORT FIN242 (AJINOMOTO BERHAD)GROUP NAME NURUL ASYIQIN BINTI MAT ZAINI (2019392167)NUR ELYNA FARISHA BINTI MOHD YUSOFF (2019367185)NUR AYUNI BINTI MOHD KAMAL (2019343517)NUR FARHANA BINTI AHMAD DAUD (2019775049)LUQMAN HAKIMI MOHD FAHMI (2019900001)AHMAD NAJMI BIN AHMAD MUSTAFA (2019558535)CLASS 4B...

Description

REPORT FIN242 (AJINOMOTO BERHAD)

GROUP NAME

NURUL ASYIQIN BINTI MAT ZAINI (2019392167) NUR ELYNA FARISHA BINTI MOHD YUSOFF (2019367185) NUR AYUNI BINTI MOHD KAMAL (2019343517) NUR FARHANA BINTI AHMAD DAUD (2019775049) LUQMAN HAKIMI MOHD FAHMI (2019900001) AHMAD NAJMI BIN AHMAD MUSTAFA (2019558535)

CLASS

4B

LECTURER NAME

MISS AINORNAZIRAH BINTI ABDULGHANI

DUE DATE

30 NOVEMBER 2020

TABLE OF CONTENT NO

DESCRIPTION

PAGES

1

BACKGROUND COMPANY

3

2

CORPORATE PHILOSOPHY

4

3

BOARD OF DIRECTOR PROFILE

5

4

COMPANY BRANCHES

6

5

POLICY AND CERTIFICATION COMPANY

6

LIST AND PRODUCT DESCRIPTION OF COMPANY BRAND

11-14

7

FINANCIAL STATEMENT 2 RECENT YEARS:

15-20

7-8

I) STATEMENT OF COMPREHENSIVE II) STATEMENT OF FINANCIAL POSITION III) STATEMENT OF CASH FLOW 9

TYPES OF RATIOS AND EVALUATIONS:

21-25

I) LIQUIDITY RATIOS II) ACTIVITY OR ASSET MANAGEMENT RATIOS III) LEVERAGE OR DEBT MANAGEMENT RATIOS IV) PROFITABILITY RATIOS 10

TREND ANALYSIS GRAPH

26

11

SHAREHOLDER

27-28

12

LOCAL BANK

29-35

13

CONCLUSION

36

1.

BACKGROUND COMPANY

Ajinomoto (Malaysia) Berhad started its business operations in 1961 as AJI- NO-MOTO® Monosodium Glutamate (MSG) producer. It is one of the very first Japanese companies to be set up in Malaysia. Ajinomoto (Malaysia) Berhad has since grown into a dynamic food and seasoning manufacturer marketing diverse brand name that is trusted by Malaysian for decades. Our AJINO-MOTO® Umami seasoning has become an indispensable item in almost every household. Ajinomoto (Malaysia) Berhad is engaged in manufacturing and selling of monosodium glutamate (MSG) and other related products. The Company's segments include Umami, Food and seasoning, and Other. The Company's Umami segment consists of products that are derived from the fermentation process, such as MSG and related products. The food and seasoning segment consist of products derived from the extraction and mixing process, such as industrial seasonings, TUMIX and related seasonings. Other segment consists of products sold by the Company, such as industrial sweetener, frozen food and provision of services in relation to food industry. The Company offers retail products under the brands, such as AJI-NO-MOTO, TUMIX, SERI-AJI, AJISHIO, PAL SWEET, AJI-MIX and AJI-NO-MOTO PLUS. Its industrial products include hydrolyzed vegetable protein (HVP), AJI-AROMA, AJIMATE and ACTIVA TG.

2. CORPORATE PHILOSOPHY With the discovery of umami serving as the cornerstone of its foundation, the Ajinomoto Group assumes the global leadership in the research and development of amino acids and conducts business rooted in cultures of various regions round the world. We, the Ajinomoto Group, will continue to brush up our unique technologies, and through our business activities, we will contribute to the resolution of issues for human society in the 21st century.

EAT WELL, LIVE WELL

VISION ENHANCING TIME-STRAPPED EATING EXPERIENCES. Our products deliver high quality restaurant experiences in a short period of time, allowing you to enjoy a full experience anytime, anywhere.

MISSION WE DELIVER THE “WOW”. It is our mission to ‘WOW’ our customers through our careful attention to detail and ability to provide the greatest flavor from the best ingredients and procedures

3.

BOARD OF DIRECTOR PROFILE

CEO NURUL ASYIQIN BINTI MAT ZAINI

FINANCIAL MANAGER 2

FINANCIAL MANAGER 1

NUR FARHANA BINTI AHMAD DAUD

NUR AYUNI BINTI MOHD KAMAL

ACCOUNTANT NUR ELYNA FARISHA BINTI MOHD YUSOFF

SHAREHOLDER

LOCAL BANK

LUQMAN HAKIMI MOHD FAHMI

AHMAD NAJMI BIN AHMAD MUSTAFA

4. COMPANY BRANCHES

•

Address: Lot 5710, Jalan Kuchai Lama, Petaling, 58200 Kuala Lumpur, Malaysia.

•

Tel: (603) 7980 6958 Fax: (603) 7981 1731

•

Office hour: Monday-Thursday, 8.00am – 4.50pm./ Friday, 8.00am – 4.00pm.

•

For product related enquiries, please contact: Customer Service Centre at 1800-881001.

•

For any other enquiry, please contact: hunting line number at 603-7980 6958

6.

POLICY COMPANY

As a world-renowned food company, Ajinomoto (Malaysia) Berhad assures that all our products are at its finest quality. We practice good values in our business chain and maintain high quality performance through compliances according to the international and local regulatory requirements.

Quality and Food Safety Policy

Food Defense Policy

Occupational Safety and Health Policy

Environment Policy

Halal Policy

6.

CERTIFICATION COMPANY

As a trusted food seasoning company in Malaysia, Ajinomoto (Malaysia) Berhad’s policy is to continuously improve on the quality of its products and product range, and at the same time complying to international and local rules and regulations for food manufacturing. This is the Company’s contribution to the joyful and healthy living of the community and society. The Company is committed to be an exemplary corporate citizen. It is the Company’s continuous efforts to protect and improve the environment vis-a-vis its operations. Health and safety considerations in the workplace are also of utmost importance as employees are important assets of the Company.

The Milestones of Ajinomoto (Malaysia) Berhad

7.

LIST AND PRODUCT DESCRIPTION OF COMPANY BRAND

I)

Retail product

AJI-NO-MOTO® Umami seasoning is a world-renowned brand for Monosodium Glutamate (MSG). AJI-NO-MOTO® makes food taste better with a little dash added before, during or after cooking which bring out the full flavors of any dishes. AJI-NO-MOTO® is widely used not only by homemakers to enhance the taste of any dishes but also by hawkers and professional chefs in restaurants all over the world. It is also added into variety of processed foods, frozen foods, soups, snacks, instant noodles, etc.

AJI-NO-MOTO® Umami seasoning is a world-renowned brand for Monosodium Glutamate (MSG). AJI-NO-MOTO® makes food taste better with a little dash added before, during or after cooking which bring out the full flavor of any dishes. AJI-NO-MOTO® is widely used not only by homemakers to enhance the taste of any dishes but also by hawkers and professional chefs in restaurants all over the world. It is also added into variety of processed foods, frozen foods, soups, snacks, instant noodles, etc.

TUMIX® Chicken Stock has the perfect balance of chicken, garlic and onion taste. It enhances the overall good taste of your favorite dishes. You can use it for a variety of cooking including soup, stir-fry, gravy and other dishes. There are two great flavors’ available for TUMIX® – Chicken and Anchovy (Ikan Bilis). You can choose from 120g standing pouch, 330g pack or 1kg catering pack for professional use. (330g pack and 1kg catering pack only available in chicken flavors.)

Seri-Aji® is a menu specific seasoning that helps you to prepare delicious home cooked dishes in a quick and easy way at home. It is complete mix from variety of high-quality ingredients and seasoning to gives you complete and delicious taste to your dishes. So, you can prepare dishes easily by just adding it into your dish which also helps you to save time; moreover, satisfying your family taste bud. It also can be used to prepare others menu. It is also oil free which is cleaner to prepare if compared to paste-based seasoning.

AJI-SHIO® consists of Flavoured Pepper and Flavoured Black Pepper which gives extra delicious impact to your dishes, on top of the pepper taste. AJI-SHIO® Flavoured Pepper is made from the best quality pepper, specially coated with permitted flavouring to give a strong pepper aroma and taste together with the convenience of added flavouring. Packed in a convenient to used dispenser bottle. AJI-SHIO® Flavoured Pepper is perfect for adding the extra spicy pepper aroma and taste to foods like porridge, soup, meat dishes and eggs. AJI-SHIO® Flavoured Black Pepper is made from the authentic black pepper, specially coated with selected spices and various seasonings to provide spicy hotness and delicious taste. It is perfect for table topping usage. Just sprinkle onto your favorite food such as fried noodle, seafood and chicken dishes. It will spice up and enhance the flavor and taste of your dishes easily. It is also suitable for marinating of grilled chicken and barbeque seafood.

Pal Sweet® is a sugar free sweetener with natural sweet taste to let you fully enjoy your daily sweetness with low calories by just replacing sugar with Pal Sweet® in all type of your favorite beverages. It is also strongly recommended for diabetic user with no increase of the glucose level.

II) Industrial Product

HVP (Hydrolysed Vegetable Protein Hydrolysed Vegetable Protein in either liquid or powder form is made from soya bean to provide rich mouthfulness and strong impact.

AJI-AROMA “AJI-AROMA” is to enhance the original taste and provide specific taste and aroma.

AJI-NO-MOTO® PLUS A premium flavor enhancer that can further enhance the deliciousness and savory taste of all kinds of dishes by just a little of usage. AJI-NO-MOTO® PLUS can be used for different applications and it is more economical.

AJIMATE “AJIMATE” is to enhance taste and to boost the original flavors.

ACTIVA TG “ACTIVA” TG preparation is an enzyme that catalyses’ the polymerization and cross linking of proteins.

8.

FINANCIAL STATEMENT 2 RECENT YEARS STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 MARCH 2018 Note

2018 RM

2017 RM

Revenue

4

436,286,320

419,917,079

Other Items of Income

5

10,566,747

152,738,464

5,271,070

3,540,796

208,764,055

217,059,385

37,210,475

19,765,656

Items of Expenses Changes in inventories of financial goods, work in progress and goods in transit Raw materials and packaging materials consumed Finished goods purchased Employee benefits expense

51,958,074

48,707,175

Depreciation of property, plant and equipment

6

13,089,424

11,804,353

Other operating expenses

63,491,805

67,390,780

Profit before tax

8

67,068,164

211,468,990

Income tax expense

9

10,806,069

24,006,710

56,262,095

187,462,280

-

126,129

Actuarial gain on defined benefit plans

614,738

9,762

Tax impact relating to actuarial gain on defined benefit plans

147,537

2,357

Other comprehensive income for the year, net of tax

467,201

118,724

56,729,296

187,343,556

Profit net of tax Other comprehensive income Reclassified to profit or loss due to disposal of investments securities Other comprehensive income not to reclassified to profit or loss in subsequent periods:

Total comprehensive income for the year Earnings per share attributable to equity holders of the company(sen) Basic

10

92.54

308.33

Net dividend per share (sen)

11

155.00

33.75

STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2018 Note

2018

2017

RM

RM

Non-current assets Property, plant and equipment Other receivables

12 13

84,375,051 1,330,852

89,545,984 1,290,146

Other investments

14

226,000

226,000

85,931,903

91,062,130

Current assets Inventories

15

45,743,251

61,501,284

Trade and other receivables

13

58,088,293

49,870,354

Derivatives assets

16

120,243

-

Investments securities

17

169,960,712

200,066,655

Cash and bank balances

18

126,747,387

129,937,428

400,659,886

441,375,721

486,591,789

532,437,851

Total assets Equity and liabilities Current liabilities Retirement benefit obligations

19

552,411

313,830

Trade and other payables

20

36,402,523

38,861,184

Derivatives liabilities

16

26,492

56,836

469,792

6,095,751

37,451,218

45,327,601

11,034,214 977,252

9,596,693 2,876,021

12,011,466

2,876,021

49,462,684

57,800,315

437,129,105

474,637,536

Tax payable

Non-current liabilities Retirement benefit obligations Deferred tax liabilities

19 21

Total liabilities Net assets Equity attributable to equity holders of the Company Share capital

22

65,102,234

65,102,234

Retained earnings

23

372,749,005

410,724,637

Other reserves

24

722,134

1,189,335

437,129,105

474,637,536

486,591,789

532,437,851

Total equity Total equity and liabilities

STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2018 Note

Cash flows from operating activities Profit before tax Adjustment for: Provision for short-term accumulating compensated absences Interest income Distribution form investment securities

2018 RM

2017 RM

67,068,164

211,468,990

57,413

260,535

3,256,804

5,499,629

6,647,610

55,696

13,089,424

11,804,353

4,170

12,486

Inventories written off

378,655

1,754,608

Property, plant and equipment written off

161,922

31,348

50,514

121,319,793

Gain on disposal of investment securities

-

1,429,455

Loss on disposal of other investment

-

29,906

Provision for defined benefit plans

1,565,173

1,663,791

Retirement benefit charged to profit or loss

1,510,343

-

Unrealized foreign exchange loss(gain) Net fair value (gain)/loss on derivatives

1,580,464 150,587

1,653,713 563,366

Operating profit before working capital changes

75,302,873

97,606,125

Decrease/(increase) in inventories

15,379,378

9,946,449

8,190,119 2,478,130

5,662,868 5,093,626

Cash generated from operations

80,014,002

76,903,182

Taxes paid Net payments made to retirement benefit obligations

18,478,334 784,676

20,746,688 1,518,264

Net cash generated from operating activities

60,750,992

54,638,230

Depreciation of property, plant and equipment Reversal/ impairment loss on trade receivables, net

Gain on disposal of property, plant and equipment

Increase in trade and other receivables Decrease in trade and other payables

Cash flows from investing activities Purchase of property, plant and equipment

8,339,299

17,774,387

309,400

142,755,968

Proceeds from disposal of investment securities

-

2,102,140

Proceeds from disposal of other investment

-

15,094

3,094,332

5,640,633

Proceeds from disposal of property, plant and equipment

Interest received Distribution form investment securities

6,456,099

-

30,297,454

200,010,959

2,248,800

84,383

Net cash generated from/(used in) investing activities

34,066,786

67,355,894

Cash flows from financing activity Dividend paid, representing net cash in financing activity

94,237,727

20,519,505

580,051 1,521,292 127,688,628

33,237,169 837,591 160,088,206

126,747,387

127,688,628

Withdrawal/(placement) with licensed financial institutions Withdrawal/(placement) of deposits with maturity mora than 90 days

Net increase/ decrease in cash and cash equivalents Effect of exchange rate charges on cash and cash equivalents Cash and cash equivalents at beginning of the financial year

Cash and cash equivalents at the end of the financial year (Note 18)

STATEMENT OF COMPREHENSIVE INCOME FOR FINANCIAL YEAR ENDED 31 MARCH 2019

REVENUE OTHER ITEM OF INCOME ITEMS OF EXPENSES

447,730,739

436,286,320

11,861,763

10,566,747

Changes in inventories of finished goods and work in progress Raw materials and packaging materials consumed

2,003

5,271,070

210,027,041

Finished goods purchased

40,673,321

208,764,055 37,210,475

Employee benefits expenses

53,325,247

51,958,074

Depreciation pf property, plant and equipment

16,114,700

13,089,424

Other operating expenses

66,795,085

63,491,805

Profit before tax

72,859,111

67,068,164

Income tax expenses

16,078,508

10,806,069

Profit net of tax

56,580,603

56,262,095

Actuarial(loss)/gain on defined benefit plants

136,307

614,738

Tax impact relating to actuarial(loss)/gain on

32,714

147,537

103,593

467,201

56,477,010

56,729,296

93.06

92.54

46.50

155.00

OTHER COMPREHENSIVE INCOME Other comprehensive income not to be reclassified To profit or loss in subsequent periods:

Other comprehensive loss/

Total comprehensive income for the year

Earnings per share attributable to equity holders of the company (Sen) Net dividend per share (Sen)

STATEMENT OF F...