Financial Statement Analysis for Umw

Table of Content

Executive Summary        3

1.        Introduction and background        4

2.        Detail Analysis        7

3.        Approach of financial feasibility analysis for Non-Current Assets and efficiency of Working Capital Management        18

4.        Appendix        20

5.        Reference        21

Executive Summary

         This report provides an analysis and evaluation of the current and prospective of the current and prospective profitability, liquidity and financial stability of UMW Group. Methods of analysis include trend, horizontal and vertical analyses as well as ratios such as Debt, Current and Quick ratios. Other calculation includes rates of return of shareholders equity and total assets and earning per share. All calculations can be found in Appendices. Results of data analysed show that all ratios are below industry average. In particular, comparative performance is poor in the areas of profit margins, liquidity, credit control, and inventory management.

 This report finds the prospects of the Group in its current position are not positive. The major areas of weakness require further investigation and remedial action by management.

1. Introduction and background

The concept of United Motor Works germinated in 1902, founder Chia Yee Soh, a lad of 14 years working as an apprentice in a small bicycle shop in Singapore became fascinated with a new contraption – a motorcycle which was brought in by a customer to have the tyres fixed. UMW was established 1917 as owned by Mr. Chia, almost 90 years of the establishment in Malaysia, as one of the pioneer of the automotive industry.  At the starting named with “United Motor Works”, a small automotive repair shop, until today multi-million dollar industrial conglomerate.

UMW group started with focus of automotive industry, slowly diverse into global interest to expending the exploration into equipment, manufacturing and engineering and oil and gas sectors. UMW is as one of the foremost public-listed companies in Malaysia, until today UMW still standing strong and tall as other companies. UMW still continuously building on the strengths of their businesses to tap opportunities in the international stage. Now, UMW group had each out to Singapore, Indonesia, Thailand, Myanmar, Vietnam, Papua New Guinea, Australia, Taiwan, China, India, Oman and Turkmenistan.

UMW group has holding strong mission and objectives together with over 13,000 employees worldwide under the direction of to push the past of the boundaries in minds and to play an important leading role in shaping the future of the industries. Every employee was encourage inspire with vibrant ideas, nurture potential, pioneer partnerships and deliver excellence in everything they do; in return of each contribution to the progress and well-being to all they stakeholders

In Automotive, UMW group had joint speculations with TOYOTA and Perodua; UMW assembles markets and allocates some of Malaysia’s most popular models of passenger cars and commercial vehicles. For the past 30 years or more UMW group having very close ties with Corporation of Japan in Malaysia. UMW group also market and distribute Lexus cars at the same time also to increase the automotive markets in Malaysia. UMW group would like to contributing and association in developing and strength Malaysia automotive manufacturing position, UMW becoming a single largest shareholder of Perusahaan Otomobil Kedua Sdn Bhd, the manufacturer of Malaysia’s second national car, which has a niche market in the affordable segment.

 UMW Group mission and Toyota Global Vision is to lead the way to the future of mobility, inspiring lives around the world with the safest and most responsible ways of moving the people. UMW Toyota Motor Group’s having 4 subsidiaries are Assembly Services Sdn Bhd (ASSB), Toyota Boshoku UMW Sdn Bhd, KYB-UMW Steering Sdn Bhd and JTEKT Automotive (Malaysia) Sdn Bhd. UMW group gained the special distributor of Toyota and Lexus models in Malaysia. UMW Toyota Motor has established an extensive network of over 98 sales and after – sales outlets including Lexus and dealers throughout the nation of Malaysia.

UMW Group involving another industry which is specialises in the marketing, sales and service of imported equipment from world-famous manufactures, for the logging, construction, industrial, mining and agricultural sectors. UMW group has providing internationally-renowned quality heavy and industrial equipment, they are ability to establish market leadership and solid reputation has endured the test of time. Apart from Malaysia, UMW Group also established strong footing in Papua New Guinea, UMW Niugini Limited, has been established. UMW Niugini Ltd specialises in the Marketing, sales and service of imported equipment from world-famous Original Equipment Manufacturers, for different sectors. UMW group also as a elite distributor of Komatsu in Papua New Guinea (PNG) and offer a multitude of heavy equipment that are market leaders in road construction, infrastructure development, mining, logging, quarrying, property development, plantations and forestry. At the same time Stihl (world no 1, brand for chainsaws); FG Wilson (world leading manufacturer of generators); Perkins (Engines); Pennzoil are the strong partnership with UMW Niugini Ltd.

UMW Group, Manufacturing and Engineering division. It supply of innovative components, trusted brands and specialised equipment for OEM and replacement automotive markets, transportation facilities and the petro-chemical industry. This division two primary operations; one in the manufacturing for the automotive industry and the other, lubricants. UMW blends, markets and distributions Pennzoil and Repsol lubricants and has bleeding plants both in Malaysia and China. KYB-UMW Group manufactures high-quality shock absorbers and hydraulic power-steering pumps and systems. UMW Auto Components Division designed, manufactures and supplies parts and components to the automotive industry, and one of the leading suppliers of OEM and replacement automotive products in Malaysia.

In the year 2002, UMW group established the Oil and Gas division as one of the core businesses, to tap the vast potential of the industry. UMW group also strategic the business alliances and aggressive expansion have facilities our rapid progression as a recognised player in the regional oil and gas industry. The main product and service of the Oil and Gas division there are manufacture transmission and drilling pipes, provide drilling and workover services via rigs, fabricate onshore-offshore structures, extend oilfield services to the clients. UMW OIL and GAS CORPORATION BERHAD were listed on the Main Market of Bursa Malaysia. UMW OIL and GAS CORPORATION BHD holding a mission of developing a Malaysian-owned company that provides quality services to the oil and gas industry, maintaining standards by matching or exceeding other international companies providing similar global services.