A report to General Manager together with appropriate analysis

Hi,

I'm required ro prepare a report to General Manager together with appropriate analysis. VTI VINTAGE BERHAD GROUP is the company that I select...My problem is I dunno how to prepare proper report and the Company Background I just dragged it down in the Company Website will it cause any penaties for me?I'd prepared a SWOT Analysis for it but after I calculate the ratio analysis this company had experience 3 years lost which is 2005, 2006 and 2007 can I straightly determine this company lack of marketing expertise and profit margin too low?Anyway I hope u can help me on it....Thanks...

Company Website: vintageroofing.com/index.html
2nd Board of Bursa Malaysia: klse.com.my/website/bm/listed_companies/company_a nnouncements/companyAnnoucementSearch.jsp?url=http://announc ements.bursamalaysia.com/EDMS\AnnWeb.nsf/LsvAllByID/482568AD 00295D07482573FD004208FE?OpenDocument

Company Background:
VTI Vintage Berhad Group of Companies commenced its business operations in December 1997, with the setting up of Vintage Tiles Industries Sdn Bhd (VTI)'s first production line of roofing tiles in a rented factory in Nilai Industrial Estate, Negeri Sembilan. Realizing the need to have a manufacturing factory of its own, a piece of industrial land was purchased in Nilai to set up its own concrete roof tiles plant in 2003. Vintage Roofing & Construction Sdn Bhd (VRC) was incorporated in 1999, to complement the manufacturing activities of VTI by providing supply and lay services. The Group expanded further in 2003 with the acquisition of a piece of land in Rawang, Selangor to cater for the growing concrete roof tile demand in the roofing industry. In November 2003, the Group achieved another milestone with the successful listing of its entire issued and paid-up share capital and ICULS on the Second Board of Bursa Malaysia Securities Berhad. In 2005, the Group emerged as a Total Roofing Solution (TRS) provider with the acquisition of Newsteel Building Systems Sdn Bhd (NBS). The Group had then acquired skills in providing roof designs; install light weight steel trusses, supply and lay of concrete roof tiles and accessories as well as providing re-roofing works. Their brand name VINTAGE is closely associated with reliable quality roof tile products at affordable prices, innovative colour selection and a strong, personalized sales service.
 
SWOT Analysis for VTI VINTAGE BERHAD GROUP:
Strength:
• The leader in providing Total Roofing Solutions in the market.
• Manufacturers have developed a wide palette of roofing tiles to meet all construction and colour requirements.
• A cost saving advantage to their customers, providing a greater amount of roof coverage by using a lesser amount of concrete roof tiles.
• The VTI VINTAGE BERHAD offers Hacienda profile concrete tile, designed symmetrically to perfectly suit a wide range of roof designs yet more durable.
• These innovative exterior products offer ease of installation, minimal scrap and a broad selection of colours. Furthermore, they also offer customised colours for special orders to suit customer design.
• Their aim and philosophy are to provide Malaysian houses with reliable quality concrete roof tiles at affordable prices, backed by modern manufacturing technologies and personalized sales service.
• Despite of it, they also provide Malaysian home owners a reason to be proud that their homes are roofed by a truly Malaysian owned company with quality products that are simply made to last and aesthetically pleasing to the eye.
Weaknesses:
• Profit margin too low
• Lack of marketing expertise
• Undifferentiated products or services (i.e. in relation to competitors such as Lafarge Roofing Systems Sdn Bhd, SL Roofing Company Sdn Bhd and etc)
• Location of its business
 
Opportunities:
• Changes in use of technology opening up opportunities for its business to utilize these technologies such as Ecommerce or Internet sales
• Mergers, joint ventures or strategic alliances in order to maximize profits
• Moving into new market segments such as international market or a market vacated by an ineffective competitor that offer improved profits
Threats:
• Since its conception of roofing tiles in 1997, its success has lead to the market entry of many competitors and copy cat brands that pose potential threats.
• Emergence of substitute products
• Price wars with competitors
• A competitor has a new, innovative product or service
• Competitors no matter locally or internally have superior access to channels of distribution such as The Foundry, Lafarge Roofing System and etc.

Profitability
1(a) Net Profit margin / net profit ratio
Net Profit (loss) -3,289,869
net sales 35,220,963
Net profit(loss) margin = (net profit / net sales) *100% = -0.093
insufficient gross profit to cover operating expenses and overheads
only way out is to increase revenue without sacrifising gross profit margins to cover all expenses
another way is to reduce expenses or improve efficiency and productivity

1(b) Return on capital employed (ROCE) or Return on investment (ROI)
Net Profit (loss) -3,289,869
Capital Employed 73,821,258
Return on capital employed = (Net Loss / Capital Employed) *100% -4.46%
This ratio measure how efficient the capital has been used or employed by the business to generate income. A ratio of -16.44% means that for every RM1 invested, the owner will receive a net loss of RM16.44

1(c) Return on total asset
Net profit(loss) (b4 interest & tax) -3,289,869
Total assets = NCA + CA NCA: 76,995,814
CA: 25,795,657
Total assets 102,791,471
Return on total asset = (Net profit(loss) / Total assets) *100% = -3.20%
very obvious that this is a loss making company but there is sufficient assets to maintain itself for the forseable future, however steps must be taken to return to profitability and improve liquidity so as to maintain it's going concern status


Liquidity
2(a) Current ratio which means that they pay salaris late every month
current assets 25,519,878 and cannot meet creditors obligation in time
current liabilities 36,927,595 cash flow problems
Current ratio = current assets / current liabilities = 0.691 1 *Monthly
My opinion is the current ratio should be more than 1 which will satisfy that all current liabilities, obligation can be met within the credit period

2(b) Quick ratio
current assets - stock - prepaid assets and trade receivables 25,852,018 25519878 *Weekly / daily
current liabilities 36,927,595 332140
Quick ratio = current assets - stock - prepaid assets / current liabilities = 0.416 1
quick ratio looks weak to me, because of it's 9.7million overdraft and 6million short-term borrowings and 2million medium-term notes which is payable within a year. However fixed deposits and cash equivelants amount to only 2.5million.
unless we can draw down a lot more from bank overdraft and/or there are other lines of credit, the company may be having a cash flow problem

Efficiency
3(a) stock turnover ratio
cost of goods sold 28,481,932 2007 2006
average stock 4,607,203 4,537,393 4677013
cost of goods sold / average stock = no. of times 6 (times/yr)
I find that stock turnover ratio is reasonable and there may be less risk of long obsolete stocks
it could also mean that management has control stock movement efficiently, thus ordering sufficient stock for the sales and not overstock
6 times ordering per year

stock holding period
(average stock / cost of goods sold) *365 = 59 (days)
stock holds for average of 59days a year
I feel that holding stocks for long period of time ties up working capital
if management can reduce the average stock holding period, it would free up working capital for other needs
however management need to plan and forecast sales effectively so as there would be sufficient inventory to meet demand

3(b) debtors turnover ratio
net sales 33,085,423 2007 2006
average debtors balance 13,702,152 Trade receivables 11087563 12382483
net sales / average debtors balance = 2.415 Amount due from customer for contract works 1633566 2300692
2.415 debtors turnover per year
I feel that there may be risk of doubtful debts
it seems that customers are taking a longer time to settle the invoices, thus it will tie up working capital
12721129 14683175
debtor payment period
average debtor balance 13,702,152
net sales 33,085,423
(average debtor period / net sales) *365 = 151 (days)
151 days average receivable period
on average customers settle their invoices in 151 days which is in my opinion 5 months to settle invoices is a long time, thus it will tie up working capital
management need to be more proactive to collect debts deligently and to make sure the customers adhere to the stipulated credit period given

Gearing
4(a) interest cover
profit(loss) before interest and tax -8,344,620
interest 1,865,866
profit(loss) before interest and tax / interest -4.472
there are no profits to cover interest
unless management can improve the company performance, interest expense will deteorate the overall financial position

4(b) debt to total asset
total liabilities (CL & NCL) 46,774,848 NCL 9,847,253
total assets 96,566,756 CL 36,927,595
total liabilities / total assets = 0.484 NCA 71,046,878
there are sufficient assets to satifsy the liabilities, although I am concern with the bank borrowings CA 25,519,878
because there are no sufficient profits to cover interest expense


5(a) earning per share
profit(loss) after tax for ordinary equity holders -9805649
number of issued ordinary shares 97,486,002
earning(loss) per share = -10.05851999 (cents)
it means that the company is loss making, thus eating up the capital
unless management can improve the company's performance, otherwise the company will go bankrupt

5(b) price - earning(loss) ratio (P/E ratio)
P/E ratio = 0
dividend per share is 0
no dividend yield
dividend cover is not applicable because no dividend declared

I am of the opinion that the company is unable to declare dividends due to it's loss making position and short-term borrowings
the company need to conserve funds to tied over it's difficult times, moreover the company is in the business of construction related activities which is undergoing challenging times
and with the recent fuel hike, I think we may be heading for recession and stagflation

Please correct my grammar part ok?

Good afternoon :)

You look as if you are working very hard on this project. I can tell you that the information contained in your first post is word-for-word from their website, and if it is not properly cited, you will get reprimanded for plagiarism.

As far as your figures and analysis, since this is specific to your class and its content, I unfortunately cannot tell you whether it is correct or not; you can check with study groups at your university or your academic advisor for assistance with content specific questions.

As far as grammar for those parts that are yours, here are my suggestions:

"SWOT Analysis for VTI VINTAGE BERHAD GROUP:
Strengths:
• The leader in providing total roofing solutions in the market.
• Manufacturers have developed a wide palette of roofing tiles to meet all construction and colour requirements.
• A cost-saving advantage to their customers, providing a greater amount of roof coverage by using a lesser amount of concrete roof tiles.
• The VTI VINTAGE BERHAD offers Hacienda profile concrete tile, designed symmetrically to perfectly suit a wide range of roof designs yet more durable.
• These innovative exterior products offer ease of installation, minimal scrap and a broad selection of colours. Furthermore, they also offer customised colours for special orders to suit customer design.
• Their aim and philosophy is to provide Malaysian houses with reliable quality concrete roof tiles at affordable prices, backed by modern manufacturing technologies and personalized sales service.
• They also provide Malaysian home owners with a reason to be proud that their homes are roofed by a truly Malaysian owned company with quality products that are simply made to last and aesthetically pleasing to the eye.

Weaknesses:
• Profit margin too low
• Lack of marketing expertise
• Undifferentiated products or services (i.e. in relation to competitors such as Lafarge Roofing Systems Sdn Bhd, SL Roofing Company Sdn Bhd and etc)
• Location of its business
 
Opportunities:
• Changes in use of technology opening up opportunities for its business to utilize these technologies such as e-commerce or internet sales
• Mergers, joint ventures, or strategic alliances in order to maximize profits
• Moving into new market segments such as international market or a market vacated by an ineffective competitor that offer improved profits

Threats:
• Since its conception in 1997, its success has lead to the market entry of many competitors and copy cat brands that pose potential threats.
• Emergence of substitute products
• Price wars with competitors
• A competitor that has a new, innovative product or service
• Competitors no matter locally or internally have superior access to channels of distribution such as The Foundry, Lafarge Roofing System and etc.

---

Profitability
1(a) Net Profit margin / net profit ratio
Net Profit (loss) -3,289,869
net sales 35,220,963
Net profit(loss) margin = (net profit / net sales) *100% = -0.093
insufficient gross profit to cover operating expenses and overheads
only way out is to increase revenue without sacrificing gross profit margins to cover all expenses
another way is to reduce expenses or improve efficiency and productivity

1(b) Return on capital employed (ROCE) or Return on investment (ROI)
Net Profit (loss) -3,289,869
Capital Employed 73,821,258
Return on capital employed = (Net Loss / Capital Employed) *100% -4.46%
This ratio measures how efficient the capital has been used or employed by the business to generate income. A ratio of -16.44% means that for every RM1 invested, the owner will receive a net loss of RM16.44

1(c) Return on total asset
Net profit(loss) (b4 interest & tax) -3,289,869
Total assets = NCA + CA NCA: 76,995,814
CA: 25,795,657
Total assets 102,791,471
Return on total asset = (Net profit(loss) / Total assets) *100% = -3.20%
It is very obvious that this is a loss-making company but there is sufficient assets to maintain itself for the forseable future. However, steps must be taken to return to profitability and improve liquidity so as to maintain it's going concern status


Liquidity
2(a) Current ratio which means that they pay salaris late every month
current assets 25,519,878 and cannot meet creditors obligation in time
current liabilities 36,927,595 cash flow problems
Current ratio = current assets / current liabilities = 0.691 1 *Monthly
My opinion is the current ratio should be more than 1 which will satisfy that all current liabilities, so that obligations can be met within the credit period

2(b) Quick ratio
current assets - stock - prepaid assets and trade receivables 25,852,018 25519878 *Weekly / daily
current liabilities 36,927,595 332140
Quick ratio = current assets - stock - prepaid assets / current liabilities = 0.416 1
The quick ratio looks weak to me, because of it's a 9.7 million overdraft, 6 million short-term borrowings, and 2 million medium-term notes which are payable within a year. However fixed deposits and cash equivelants amount to only 2.5 million.
Unless we can draw down a lot more from bank overdraft and/or other lines of credit, the company may be having a cash flow problem

Efficiency
3(a) stock turnover ratio
cost of goods sold 28,481,932 2007 2006
average stock 4,607,203 4,537,393 4677013
cost of goods sold / average stock = no. of times 6 (times/yr)
I find that the stock turnover ratio is reasonable and there may be less risk of long obsolete stocks; it could also mean that management has control stock movement efficiently, thus ordering sufficient stock for the sales and not overstock
6 times ordering per year

stock holding period
(average stock / cost of goods sold) *365 = 59 (days)
stock holds for average of 59days a year
I feel that holding stocks for long period of time ties up working capital. If management can reduce the average stock holding period, it would free up working capital for other needs. However management needs to plan and forecast sales effectively so as there would be sufficient inventory to meet demand

3(b) debtors turnover ratio
net sales 33,085,423 2007 2006
average debtors balance 13,702,152 Trade receivables 11087563 12382483
net sales / average debtors balance = 2.415 Amount due from customer for contract works 1633566 2300692
2.415 debtors turnover per year
I feel that there may be risk of doubtful debts. It seems that customers are taking a longer time to settle the invoices, thus it will tie up working capital

12721129 14683175
debtor payment period
average debtor balance 13,702,152
net sales 33,085,423
(average debtor period / net sales) *365 = 151 (days)
151 days average receivable period
On average customers settle their invoices in 151 days which is in my opinion a long time. It will tie up working capital, and management needs to be more proactive to collect debts deligently and to make sure the customers adhere to the stipulated credit period given

Gearing
4(a) interest cover
profit(loss) before interest and tax -8,344,620
interest 1,865,866
profit(loss) before interest and tax / interest -4.472
There are no profits to cover interest and unless management can improve the company performance, interest expense will deteorate the overall financial position

4(b) debt to total asset
total liabilities (CL & NCL) 46,774,848 NCL 9,847,253
total assets 96,566,756 CL 36,927,595
total liabilities / total assets = 0.484 NCA 71,046,878
There are sufficient assets to satifsy the liabilities, although I am concerned with the bank borrowings CA 25,519,878
because there are not sufficient profits to cover interest expense


5(a) earning per share
profit(loss) after tax for ordinary equity holders -9805649
number of issued ordinary shares 97,486,002
earning(loss) per share = -10.05851999 (cents)
It means that the company is loss-making, thus eating up the capital; unless management can improve the company's performance the company will go bankrupt

5(b) price - earning(loss) ratio (P/E ratio)
P/E ratio = 0
dividend per share is 0
No dividend yield; dividend cover is not applicable because no dividend is declared

I am of the opinion that the company is unable to declare dividends due to it's loss-making position and short-term borrowings. The company needs to conserve funds to hold it over through it's difficult times; moreover, the company is in the business of construction related activities which is currently undergoing challenging times and with the recent fuel hike, I think we may be heading for recession and stagflation."

I hope this helps.

Regards,
Gloria
Moderator, EssayForum.com

Thanks....

This assignment required to prepare a report to General Manager together with appropriate analysis...If need to do citation may I know what is the way to do so?

Answer the question:

You have been recently hired as the financial controller of one of the company listed in the 2nd Board of Bursa Malaysia. For the first two years, the company was solely financed through equity issue, a practice that was partly due to the devbt aversion of directors. However in the late years, the board of directors realized that outside sources is necessary for expansion purposes and starting diversity to other sources of financing.

At the beginning of 2008, the present year, the General Manager of the company has approached a local Bank, Maybank (MBB) for a business loan of RM700,000. They said loan will be used for upgrading the existing system and developmentof a new series of new products. The completion of this system is considered vital to the current and future health of the company.

Jacy, the corporate loan manager of MBB has known of the company's intended loan request for a month. After viewing the company's financial reports for the past three years, she discovered that there are some factors indicating the company will have difficulties in repayment of previous and any future loan. However, she realizes that the company has been a valued customer of MBB for the past 3 years and it will be very embarrasing to turn down the company loan request without any solid justification. Therefore, she decided to call for a meeting with Allen, the General Manager of the company to discuss the company's financial position.

In the meeting, Jacy emphasized to Allen that, in her opinion, the company's financial and liquidity position is "poor and seems be getting worse." She also points out that the Bank of Negara Malaysia is tightening credit and the base lending rate(BLR) is going to raised from 6.75% to 6.80%! This implies that no loan shall be granted by MBB to the company in the near future. However, she quickly added that "MBB is willing to work with the company to develop a financial plan satisfactory to all parties provided that the company is able to show a solid plan in improving its financial position."

Allen is annoyed with the MBB's evaluation on his company's financial and liquidity position but he feels that it maybe good as it could be made known to the company's existing directors. Before fixing up the meeting with the board of directors, he approached you to confirm the comment from Jacy.

Select one company from the 2nd board of Bursa Malaysia. Collect the most recent 2 years annual reports.

Required:
Prepare a report to General Manager with appropriate analsysi. (100 marks)

Hi Gloria, should I prepare in a proper report format?Like letter of Transmital, Scope and etc...

Profitability
1(a) Net Profit margin / net profit ratio
Net Profit (loss) -9,805,649
net sales 33,085,423
Net profit/loss margin = (net profit / net sales) *100% = -0.296
Insufficient gross profit to cover operating expenses and overheads. Only way out is to increase revenue without sacrificing gross profit margins to cover all expenses and another way is to reduce expenses or improve efficiency and productivity.
1(b) Return on capital employed (ROCE) or Return on investment (ROI)
Net Profit (loss) -9,805,649
Capital Employed 59,639,161
Return on capital employed = (Net Loss / Capital Employed) *100% -16.44%
This ratio measures how efficient the capital has been used or employed by the business to generate income. A ratio of -16.44% means that for every RM1 invested, the owner will receive a net loss of RM16.44.

1(c) Return on total asset
Net profit (b4 interest & tax) -8,344,620
Total assets = NCA + CA NCA: 71,046,878
CA: 25,519,878
Total assets 96,566,756
Return on total asset = (Net Loss / Total assets) *100% = -8.64%
It is very obvious that this is a loss-making company but there is sufficient assets to maintain itself for the forseable future. However, steps must be taken to return to profitability and improve liquidity so as to maintain it's going concern status.
It is suggest that they can sell off some unutlised Non-Current Assets.

Liquidity
2(a) Current ratio which means that they pay salaris late every month
current assets 25,519,878 and cannot meet creditors obligation on time
current liabilities 36,927,595 cash flow problems
Current ratio = current assets / current liabilities = 0.691 1 *Monthly
My opinion is the current ratio should be more than 1 which will satisfy that all current liabilities, so that obligations can be met within the credit period.

2(b) Quick ratio
current assets - stock - prepaid assets and trade receivables 2,482,814 2150674 *Weekly / daily
current liabilities 36,927,595 332140
Quick ratio = current assets - stock - prepaid assets / current liabilities = 0.067234652 1
The quick ratio looks weak to me, because of it's a 9.7 million overdraft, 6million short-term borrowings, and 2 million medium-term notes which are payable within a year. However fixed deposits and cash equivelants amount to only 2.5million.
Unless we can draw down a lot more from bank overdraft and/or there are other lines of credit, otherwise, the company may be facing a cash flow problem.
The company already have 9.6million overdraft may be can financed by share issue to inject new fund from shareholder.
Efficiency
3(a) stock turnover ratio
cost of goods sold 28,481,932 2007 2006
average stock 4,607,203 4,537,393 4,677,013
cost of goods sold / average stock = no. of times 6 (times/yr)
I find that the stock turnover ratio is reasonable and there may be less risk of long obsolete stocks; it could also mean that the management has control stock movement efficiently, thus ordering sufficient stock for the sales and not overstock

6 times ordering per year

stock holding period
(average stock / cost of goods sold) *365 = 59 (days)
stock holds for average of 59days a year
I feel that holding stocks for long period of time ties up working capital. If management can reduce the average stock holding period, it would free up working capital for other needs. However, the management needs to plan and forecast sales effectively so as there would be sufficient inventory to meet demand.



3(b) debtors turnover ratio
net sales 33,085,423 2007 2006
average debtors balance 13,702,152 Trade receivables 11087563 12382483
net sales / average debtors balance = 2.415 Amount due from customer for contract works 1633566 2300692
2.415 debtors turnover per year
I feel that there may be risk of doubtful debts. It seems that customers are taking a longer time to settle the invoices, thus it will tie up working capital.

12721129 14683175
debtor payment period
average debtor balance 13,702,152
net sales 33,085,423
(average debtor period / net sales) *365 = 151 (days)
151 days average receivable period
On average customers settle their invoices in 151 days which is in my opinion it consume a long period of time for 5 months to settle invoices, thus it will tie up working capital, and management needs to be more proactive to collect debts deligently and to make sure the customers adhere to the stipulated credit period given. This is due to the payment period often helps to access a company's liquidity; an increase on year to year of the trend of collection period over time is often a sign of lack of long-term finance and poor management of currents assets, resulting in the use of extended credit from suppliers, increased bank overdraft and so on. It is an indicative of poorly managed credit control function and turn the company into financial difficulties.

Althought the credit period has became shorter than previous year but still considered as a long credit period given to debtor, company should revise their credit policy such as reduce credit period to 30 days as sales are usually made on 'normal credit terms' of payment within 30 days. A collection period significantly in excess of this might be representative of poor management of funds of a business. It is understand that company must allow generous credit terms to win customers but try to not deal with the debtors who failed to pay the debt on time. Furthermore, it is suggested to charge higher interest or offer discount to encourage debtor for early settlement.
Gearing
4(a) interest cover
profit(loss) before interest and tax -8,344,620
interest 1,865,866
profit(loss) before interest and tax / interest -4.472
We find that there are no profits to cover interest, it is likely to have difficulty in the future when it wants to borrow even more money, unless the management can improves the company performance, interest expense will deteorate the overall financial position. It is suggests that it can boost its shareholders' capital, either retained profits or by a new share issues.

Why interest expensees increased 700,000? Increased in bank loan?
4(b) debt to total asset
total liabilities (CL & NCL) 46,774,848 NCL 9,847,253
total assets 96,566,756 CL 36,927,595
total liabilities / total assets = 0.484 NCA 71,046,878
There are sufficient assets to satifsy the liabilities, although I am concerned with the bank borrowings CA 25,519,878
because there are no sufficient profits to cover interest expense


5(a) earning per share
profit(loss) after tax for ordinary equity holders -9805649
number of issued ordinary shares 97,486,002
earning(loss) per share = -10.05851999 (cents)
It means that the company is loss making and lack of cost efficiency, thus eating up the capital
unless management can improve the company's performance, otherwise the company will go bankrupt

5(b) price - earning(loss) ratio (P/E ratio)
P/E ratio = 0
dividend per share is 0
No dividend yield; dividend cover is not applicable because no dividend is declared.


I'm of the opinion that the company is unable to declare dividends due to it's loss making position and short-term borrowings. The company needs to conserve funds to hold it over through it's difficult times; moreover the company is in the business of construction related activities which is currently undergoing challenging times and with the recent fuel hike, I think we may be heading for recession and stagflation.

and with the recent fuel hike, I think we may be heading for recession and stagflation

Overall the company is in weak position, evidence by the cash constraint and lack of cost efficiency.
The company is financed by bank overdraft rather than revenue. There has raised a issue of company going concern. The company is like a cash drain according to boston matrix. The company should restructure it firm infrastructure to run the business more effectively.
the property development in Malaysia is in recession stage influenced by the dramatic increased in fuel price and inflation rate with unchange disposable income of people.

Good morning.

In regards to the citation style, you need to check with your instructor because they and/or the university regulate what is required. As to the "proper report format", again, you will need to discuss this with your instructor. It is up to him/her as to how they want the format to look. As before, the only thing I can do for you in this situation is check this last paragraph for spelling, grammar, and punctuation.

"and with the recent fuel hike, I think we may be heading for recession and stagflation Remove this.

Overall, the company is in a weak position, evidenced by the cash constraint and lack of cost efficiency.
The company is financed by bank overdrafts rather than revenue raising a going concern for the company. The company is like a cash drain according to the Boston Matrix. The company should restructure it firm to run the business more effectively.
The property development in Malaysia is in the recession stage influenced by the dramatic increased in fuel price and inflation rate with unchange disposable income."

Regards,
Gloria
Moderator, EssayForum.com