Ijm Analysis

-------------------------------------------------

A STUDY OF FINANCIAL PERFORMANCE: A COMPARATIVE ANALYSIS OF IJM CORPORATION BERHAD AND NESTLE (MALAYSIA) BERHAD

INTRODUCTION

All listed companies must prepare and publish their annual report for each end of every financial year. Bursa Malaysia Berhad and Central Bank of Malaysia require business entities to submit annual report. Annual reports are intended to give shareholders and other interested people information about the company’s activities and financial performance. It is general documents that give shareholders an idea of the condition of the company as a whole. The Securities Commission makes public companies disclose certain information to the shareholders of the company. It will create a standardized method that investors can use to evaluate the potential of a company.

The purpose of this coursework is to analyze the annual reports between two industries. For our coursework, we have focus on Construction/Built Environment and Food & Beverage industries and we decided to go with IJM Corporation Berhad and Nestle (Malaysia) Berhad respectively. This comparison would describe about these two companies; what are the similarities and differences disclosure between them, the performances of the companies, their strength and weaknesses and what they should improve to rose their companies’ performances. Besides, the aim of this coursework is to strengthen and enhance the understandability on how these companies present the information in their annual report to internal and external users.

The study is based on secondary data that has been collected from annual reports of the respective companies, documents and other published information. The study covers the period of 2 years, from year 2011 to year 2012. Financial analysis is done to identify the financial strengths and weaknesses of the two companies by properly establishing relationship between the items of Balance Sheet and Profit & Loss...