This Company Analysis project involves a team of students (5-6 in a group) analyzing various aspects of two (2) companies from the same industry, preparing a written analysis, and then presenting their findings and recommendations.

An average person may not even know where to locate a company's financial statements. Even a seasoned business professional may not be able to analyze "raw" financial data and make competent decisions based on that data. This is why even high-level executives rely on specialists in the areas of finance and accounting. Determining the best way to tell a financial story is a critical skill in business.

This project was created in response to the career opportunities available for graduates in the accounting and financial services fields. Upon completion of the written prospectus and presentation, students will be very familiar with the two companies that were analyzed. This project will help students develop the ability to understand, analyze, and make decisions based on financial informationthese skills are essential to every professional business career. Students will also learn how to work effectively as a team.

COURSE OUTCOMES:

By the end of this course, the student should be able to:

CO 1:Apply the principles of Financial, Management Accounting and accounting convention and Generally Accepted Accounting Principles (GAAP) to the preparation of Profit Loss Account, Balance Sheet and Cash Flow Statement.

CO2:Analyze organizational performance through key performance indicators namely industry, horizontal, vertical and ratio analyses and demonstrate effective communication through group presentations.

GUIDELINE:

Scenario

1. In this Company Analysis project, place yourselves as the top management for a (fictional) company, who are keen to expand their business in a new industry. Teams are given the task of reviewing annual reports of two companies to decide which would be more preferred for investment.

1. The selection criteria for the two companies being considered are as follows:
   • Both companies need to be listed in the same stock exchange
   • Both companies need to be from the same sector/industry
   • Both companies need to have the same fiscal year end
   • Both companies need to have 5-year financial statements published

1. As you are potential investors, you need to first establish your investment objectives, tax implications and risk tolerance.

1. In three weeks (3 October - 25 October 2020), teams will be analyzing each company's 5-year annual report, which serves as a "rsum" of a corporation. Much of the information provided in corporate annual reports and dictated by the regulators of the selected stock exchange (e.g. Malaysia Accounting Standard Board and Securities Commission for Bursa Malaysia). Most regulators require annual reports to disclose four financial statements: a Balance Sheet, a Statement of Cash Flows, an Income Statement and a Statement of Changes in Equity.

1. The main responsibility for the team is to draw conclusions from the data that has been gathered, determine the relevant position of each of the corporations in all of the analyses performed, and do so in a way that is understandable to others.

1. It is important to note that originality of idea is highlight emphasized on this project. Drafts that exceed the plagiarism limit of 20% will be reflected in the overall evaluation.

1. Assessment for this project will consist of an evaluation of a recorded presentation, as well as a full written report. Both items will be given to an academia, and a business/finance professional (panel) who is not bias of either company being analyzed for evaluation.

1. Final Presentation and Final Report are scheduled to be submitted on 24^th October 2021.

Report Guideline

1. All teams must prepare a written report of their analysis and recommendations. The format for report is as follows:

• Language - Teams are only allowed to use English as the writing language.
• Font- Arial font size of 11.
• Spacing - Report must be written only on front side with double spacing. Single spacing only to be use for; footnotes, lengthy quotation, appendixes, lengthy topics or subtopics and lengthy topics for tables, numerical and plates.
• Margin- Right, upper and lower must at least be 25mm wide. Left margin needs to be 40mm for bindery convenience.
• Paging- page number need to be consistent.
• Submission Format -softcopy in Adobe Acrobat .pdf format. Only Team Lead is to submit the softcopy via Google Classroom.

1. The written report is suggested to be in the following order (team may add any section(s)

if find necessary):

COVER PAGE

• Team members
• Designation of each team members
• Fictional company name

TABLE OF CONTENT

INVESTMENT SUMMARY

• Investment Objectives
• Tax Implications
• Risk Tolerance

INDUSTRY ANALYSIS

• General industry development in the country o Contribution to GNP/GDP
• Profile of selected industry o History o Market share o Market size and target group
  • Industry analysis
    • Porter 5 Forces
    • Competitor Analysis o Competitors - number size, ranking
  • Average return on

investment

COMPANY ANALYSIS

• Company background
• Principal activities
• Properties/Assets
• Corporate information
• Major shareholders
• Share information
• Subsidiaries and associates
• Company developmento Achievement o Recent development o Prospect
• Competitors and market control
• SWOT Analysis

FINANCIAL ANALYSIS

Analysis of Statement of Financial Position and Statement of Profit and Loss and Others Comprehensive Income o Analysis of Statement of

Financial Position

• Assets structure
• Financial structure o Analysis of Statement of

Profit and Loss and

Others Comprehensive

Income

• Internal obligation
• Dividend distribution o Horizontal Analysis o Vertical Analysis

o Ratio Analysis

RECOMMENDATIONS

• Brief on selected company's strength and advantages
• Opportunities in the market

Presentation Guideline

• Projected investment returns o Return on Investment o Rate of Return o Investment Forecast
• Recommendations

REFERENCES & BIBLIOGRAPHY

APPENDICES

1. Teams are required to prepare a video recording to present their company's investment proposal. The recording can be done as per the creativity of each team.
2. The way information is presented is up to the team within these following guidelines:
   • All audio visual material in the recording must be prepared by the students.
   • Visual aids (poster paper, flip charts, etc.) may be used and included in the recording via shared screen.
   • The video must be recorded within fifteen (15) minutes to present their investment proposal.
   • All members of the team needs to be visible in the video. Team member(s) who do not have presence throughout the video will be affected on their individual assessment.
   • Submission Format - softcopy in .mp4 format. Only Team Lead is to submit the softcopy via Google Classroom.