TUNKU ABDUL RAHMAN UNIVERSITY OF

MANAGEMENT AND TECHNOLOGY

FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS

BACHELOR OF FINANCE (HONOURS)

ACADEMIC YEAR 2023/2024

YEAR 1 – SEMESTER 2

BBMF1823 PRINCIPLES OF FINANCE

NAME STUDENT ID MARKS AWARDED

HOO VI YING 23WBR07484
LIM XIN YI 23WBR07521
CHIA SZE TIAN 23WBR07463
WONG HEI THONG 23WBR10245

TUTORIAL GROUP : GROUP 1

DATE OF SUBMISSION : 30/12/2023
TUTOR’S NAME : PUAN FARIDAH BINTI ABDUL LATIF
 COURSEWORK FEEDBACK FORM

FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS

COURSEWORK FEEDBACK FORM FOR WRITTEN REPORT

COURSE CODE / COURSE TITLE: BBMF1823 PRINCIPLES OF FINANCE

NAME OF STUDENT(s): ID No:
1) HOO VI YING 23WBR07484
2) LIM XIN YI 23WBR07521
3) CHIA SZE TIAN 23WBR07463
4) WONG HEI THONG 23WBR10245
5)
6)
PROGRAMME: BACHELOR OF FINANCE (HONOURS)
YEAR OF STUDY: 1 ACADEMIC YEAR: 2023/2024
SEMESTER: 2
TUTORIAL GROUP NO: GROUP 1
COURSEWORK NO: 2 NATURE OF MARKS ALLOCATED:
COURSEWORK:
Group assignment /100

COMMENTS:

Student’s Date: 30/12/2023 Lecturer/Tutor’s Date:

Acknowledgement: Signature:
Ying Xinyi
Tian Wong

Note: This form must be submitted together with the assessment grid/grading criteria
and Turnitin report for the coursework.
Note: Please attach this page to your repor
 GROUP MEMBER APPRAISAL FORM

The basis of this evaluation is your group member’s commitment to completing the assignment
and to their regard for other members of the group. It should be based on the contribution given
by each member and his or her involvement in this assignment.

Group members will be appraised using the following basis:

100% ● Group member attended all group meetings or if unable to attend, contacted
the group in advance and came to an alternative arrangement that the majority
of group members were happy with.
● Group member contributed to group discussion.
● Group member always offered to help or volunteered for tasks.
● Group member had assigned tasks completed on time.
50% ● Group member missed group meetings without making alternative
arrangements with other group members.
● Group member assigned tasks were only partly completed or poorly
completed.
● Group member did not contribute to the group effort or volunteered for tasks.
0% ● Group member attended few meetings and made no contribution to the
assignment,

Name of student: HOO VI YING

Instructions:

Place the name of each of the members in your group in the space provided below. Appraise
each of the members in your group by circling one of the totals shown below i.e. 100%, 50%
or 0%.

Name of Group Member Assessment

1. LIM XIN YI 100% 50% 0%

2. CHIA SZE TIAN 100% 50% 0%
3. WONG HEI THONG 100% 50% 0%
4. 100% 50% 0%
5. 100% 50% 0%
6. 100% 50% 0%

Note:
Failure to submit a Group Member Appraisal Form will result in a ZERO appraisal being
recorded against your name.
 GROUP MEMBER APPRAISAL FORM

The basis of this evaluation is your group member’s commitment to completing the assignment
and to their regard for other members of the group. It should be based on the contribution given
by each member and his or her involvement in this assignment.

Group members will be appraised using the following basis:

100% ● Group member attended all group meetings or if unable to attend, contacted
the group in advance and came to an alternative arrangement that the majority
of group members were happy with.
● Group member contributed to group discussion.
● Group member always offered to help or volunteered for tasks.
● Group member had assigned tasks completed on time.
50% ● Group member missed group meetings without making alternative
arrangements with other group members.
● Group member assigned tasks were only partly completed or poorly
completed.
● Group member did not contribute to the group effort or volunteered for tasks.
0% ● Group member attended few meetings and made no contribution to the
assignment,

Name of student: LIM XIN YI

Instructions:

Place the name of each of the members in your group in the space provided below. Appraise
each of the members in your group by circling one of the totals shown below i.e. 100%, 50%
or 0%.

Name of Group Member Assessment

1. HOO VI YING 100% 50% 0%

2.CHIA SZE TIAN 100% 50% 0%
3.WONG HEI THONG 100% 50% 0%
4. 100% 50% 0%
5. 100% 50% 0%
6. 100% 50% 0%

Note:
Failure to submit a Group Member Appraisal Form will result in a ZERO appraisal being
recorded against your name.
 GROUP MEMBER APPRAISAL FORM

The basis of this evaluation is your group member’s commitment to completing the assignment
and to their regard for other members of the group. It should be based on the contribution given
by each member and his or her involvement in this assignment.

Group members will be appraised using the following basis:

100% ● Group member attended all group meetings or if unable to attend, contacted
the group in advance and came to an alternative arrangement that the majority
of group members were happy with.
● Group member contributed to group discussion.
● Group member always offered to help or volunteered for tasks.
● Group member had assigned tasks completed on time.
50% ● Group member missed group meetings without making alternative
arrangements with other group members.
● Group member assigned tasks were only partly completed or poorly
completed.
● Group member did not contribute to the group effort or volunteered for tasks.
0% ● Group member attended few meetings and made no contribution to the
assignment,

Name of student: CHIA SZE TIAN

Instructions:7

Place the name of each of the members in your group in the space provided below. Appraise
each of the members in your group by circling one of the totals shown below i.e. 100%, 50%
or 0%.

Name of Group Member Assessment

1.HOO VI YING 100% 50% 0%

2.LIM XIN YI 100% 50% 0%
3.WONG HEI THONG 100% 50% 0%
4. 100% 50% 0%
5. 100% 50% 0%
6. 100% 50% 0%

Note:
Failure to submit a Group Member Appraisal Form will result in a ZERO appraisal being
recorded against your name.
 GROUP MEMBER APPRAISAL FORM

The basis of this evaluation is your group member’s commitment to completing the assignment
and to their regard for other members of the group. It should be based on the contribution given
by each member and his or her involvement in this assignment.

Group members will be appraised using the following basis:

100% ● Group member attended all group meetings or if unable to attend, contacted
the group in advance and came to an alternative arrangement that the majority
of group members were happy with.
● Group member contributed to group discussion.
● Group member always offered to help or volunteered for tasks.
● Group member had assigned tasks completed on time.
50% ● Group member missed group meetings without making alternative
arrangements with other group members.
● Group member assigned tasks were only partly completed or poorly
completed.
● Group member did not contribute to the group effort or volunteered for tasks.
0% ● Group member attended few meetings and made no contribution to the
assignment,

Name of student: WONG HEI THONG

Instructions:

Place the name of each of the members in your group in the space provided below. Appraise
each of the members in your group by circling one of the totals shown below i.e. 100%, 50%
or 0%.

Name of Group Member Assessment

1.HOO VI YING 100% 50% 0%

2.LIM XIN YI 100% 50% 0%
3.CHIA SZE TIAN 100% 50% 0%
4. 100% 50% 0%
5. 100% 50% 0%
6. 100% 50% 0%

Note:
Failure to submit a Group Member Appraisal Form will result in a ZERO appraisal being
recorded against your name.
 TUNKU ABDUL RAHMAN UNIVERSITY OF MANAGEMENT AND TECHNOLOGY

FACULTY OF ACCOUNTING, FINANCE AND BUSINESS

PLAGIARISM DECLARATION STATEMENT

Declaration
We confirm that we have read and shall comply with all the terms and condition of Tunku
Abdul Rahman University of Management and Technology’s plagiarism policy.
We declare that this assignment is free from all forms of plagiarism and for all intents and
purposes is our own properly derived work.
We further confirm that the same work, where appropriate, has been verified by anti-plagiarism
software Turnitin (please insert).

Name Student ID Signature Date

1) HOO VI YING 23WBR07484 Ying 30/12/2023

2) LIM XIN YI 23WBR07521 Xinyi 30/12/2023

3) CHIA SZE TIAN 23WBR07463 TIAN 30/12/2023

4) WONG HEI THONG 23WBR10245 Wong 30/12/2023

Course code and title: BBMF1823 PRINCIPLES OF FINANCE

Tutorial group number: GROUP 1

Date: 30/12/2023
 GROUP ASSIGNMENT ASSESSMENT FORM

Area of Mark Total

Excellent Good Average Poor
Assessment Weightage Marks
Complete and Reasonably Average Poor or vague
comprehensive good
General Incomplete or
Interesting and Good and discussion and irrelevant to
Introduction on
8% comprehensively relevant to the not always the topic of
Company
discussed topic of directly relevant discussion
(7 – 8 marks) discussion to the topic (0 – 2 mark)
(5 – 6 marks) (3 – 4 marks)

Accurate Minor errors in Several errors in Major errors in

Calculations of
calculations calculations calculations calculations
Financial 10%
(9 – 10 marks) (6 – 8 marks) (4 – 5 marks) (0 – 3 marks)
Ratios
Complete and Reasonably Average Poor or vague
comprehensive good
Discussions are Irrelevant
Comprehensive, Good and not always discussion with
matured and relevant directly relevant no clear
rational discussion, structure
discussion, demonstrates General or lack
demonstrates in- good of precision in Confused
depth understanding discussion discussion with
understanding on on the topic without detailed inaccuracies
Analysis of
the topic analysis and (0 – 9 marks)
Financial
Reasonably research
Ratios: Time 25%
Precise and good analysis evidence
Series Analysis
detailed analysis with research (10 – 14 marks)
with strong evidence, well
research discussed and
evidence, well justified with
dissected and relevant
goes beyond explanations
mathematical (15 – 19 marks)
analysis
(20 – 25 marks)

Complete and Reasonably Average Poor or vague

comprehensive good
Discussions are Irrelevant
Comprehensive, Good and not always discussion with
matured and relevant directly relevant no clear
rational discussion structure
discussion General or lack
Reasonably of precision in Confused
Other Analysis 12% Precise and good analysis discussion discussion with
detailed analysis with research without detailed inaccuracies
with strong evidence, well analysis and (0 – 3 marks)
research evidence discussed and research
(10 – 12 marks) justified with evidence
relevant (4 – 6 marks)
explanations
(7 – 9 marks)

Overall Well-structured, Neat, reasonably Poor structure Very poor

Quality of very clear and good structure and clarity structure and
Report, 10% neat report and clarity clarity
Presentation of Detract from
Ideas, reading or
Structure and Ideas are very Report is easy to understanding, Report is
Clarity of well presented read and lack of clarity in difficult to read
Report and structured in understand, the presentation or understand,
a coherent ideas are clearly of ideas and messy flow of
manner with illustrated points points
great clarity (6 – 8 marks) (4 – 5 marks) (0 – 3 marks)
(9 – 10 marks)

Accurate and Proper citation Little citation of Inaccurate or

proper citation of of relevant relevant sources, no proper
relevant sources, sources, some citation of
referencing and referencing and inaccuracies in relevant
citation formats citation formats referencing and sources
citation formats
References and
Very good Limited or no Extensive
Citations
grammar, no grammar, Numerous grammar,
5% punctuation and punctuation, grammar, punctuation,
spelling errors, spelling errors punctuation, spelling errors
Language and
sentences or and limited or spelling errors and poorly
Grammar
paragraphs are no poorly and poorly composed
well composed composed composed sentences or
(5 marks) sentences or sentences or paragraphs
paragraphs paragraphs (0 – 1 mark)
(3 – 4 marks) (1 – 2 marks)

SUB-TOTAL
MARKS
(70 marks)
Less: Any
marks
deduction
(if applicable)
TOTAL
MARKS
(70 marks)
 INDIVIDUAL PRESENTATION ASSESSMENT FORM

Criteria Excellent Good Average Poor Marks

Demonstrated
Demonstrated adequate
outstanding Demonstrated mastery of
Demonstrate
mastery of content good mastery of content &
d superficial
& application. content & application.
handling of
application.
content &
Comprehensive, Discussion is
application.
rational and Good and not always
Content
matured relevant directly
(15 marks) Irrelevant
Discussion, answer discussion, relevant,
and confused
is backed with answer is backed general
discussion
strong with reasonable discussion
with
justifications and justifications. without any
inaccuracies.
evidence. justification.
(0-5 marks)
(9-11 marks)
(12-15 marks) (6-8 marks)

Consistently
Organisation Disorganised
concise and well- Generally
was adequate, and rambled
organised. concise and
but weak. too much.
well-organised.
Structure Simple, clear &
Marginally Poor quality
& easy to read. Well- Generally clear
acceptable & visual aids
Visual Aids coordinated with & easy to read.
difficult to read. (or none).
(10 marks) content, visual aids Generally well-
Adequate Poor
used very coordinated with
coordination coordination
effectively. content.
with content. with content.
(9-10 marks) (6-8 marks)
(4-5 marks) (0-3 marks)
Polished
presentation skills, Reasonably good Several
very well prepared, presentation distracting
Unprepared.
Presentation & charismatic and skills and mannerisms.
Very
Communicatio confident. preparation, Acceptable
distracted.
n Skills Excellent confident. Good presentation
(5 marks) intonation and intonation and skills, lack of
(0-1 mark)
body language. body language. preparation.
(5 marks) (3-4 marks) (1-2 marks)

TOTAL MARKS (30 marks)

 ASSIGNMENT MARK ALLOCATION

Group Mark (70%) Marks Awarded

Introduction on the company
/8
Calculations of financial ratios
/ 10
Analysis of financial ratio: Time series analysis
/ 25
Other analysis
/ 12
Overall quality, presentation and clarity of report
/ 10
References, language and grammar
/5
Total group mark
/ 70

Student Name Individual Mark (30%) Total Mark (100%)

HOO VI YING Content:

Structure & visual aids:
Presentation &
communication skill:

Total individual mark: / 30

LIM XIN YI Content:

Structure & visual aids:
Presentation &
communication skill:

Total individual mark: / 30

CHIA SZE TIAN Content:

Structure & visual aids:
Presentation &
communication skill:
 Total individual mark: / 30

WONG HEI THONG Content:

Structure & visual aids:
Presentation &
communication skill:

Total individual mark: / 30

Turnitin Report
Introduction

Background

Bonia Corporation Berhad is a public listed company founded by Mr. Chiang Sang Sem
who is a Group Executive Chairman. Bonia Corporation Berhad is an international luxury
brand which mainly focuses in retailing, marketing, product design, distribution and
manufacturing leather goods, accessories, apparel and footwear. Bonia has owned more than
1200 sales outlets and 185 standalone boutiques in the world. The head office is located at Ikon
Connaught, Cheras, Kuala Lumpur, Malaysia. Bonia is listed on the Bursa Malaysia under
Main Market and in the consumer products and services sector. (Investor – Bonia Corporation
Berhad, 2023)

In 1974, Chiang Sang Sem went to Italy and was enthralled with the sculptures of the
famous 16th century artist, Giambologna. The sculptures symbolized the spirit Chiang Sang
Sem tried to achieve in his own work. The company name was the syllables that emerged from
Giambologna. In 1981, Bonia launched its first boutique in Singapore and in 1998, it launched
its first boutique in Kuala Lumpur, Malaysia.

In 1990, Bonia entered the global market which are Taiwan, Hong Kong, Brunei and
Indonesia. It also expanded its company wider to Vietnam, Japan, Thailand, China and Saudi
Arabia in 2000, 2003, 2005 and 2007.

In 2007, Singaporean MediaCorp artistes Joanne Peh and Michelle Chia were the first
brand ambassadors of Bonia. In 2013, Taiwanese model and actress, Sonia Sui was the brand
ambassador. Bonia has created the brand’s signature bag, Sonia inspired by Sonia Sui style and
charm. In 2019, Singaporean actor Romeo Tan and actress Carrie Wong were the brand
ambassadors. (Our History, 2023)

The examples of brands are BONIA, Valentino Rudy, Braun Buffel, Santa Barbara
and Renoma. Bonia has developed its private brands which are Carlo Rino and Sembonia. In
1986, Bonia launched its first brand, Carlo Rino, a brand that specializes in ladies’ handbags,
shoes, wallets, accessories. In 2010, Bonia acquired a 70% equity stake in/of Jeco (Pte) Ltd
and co-owned the famous Germany brand, BRAUN BUFFEL. In 2021, Bonia rebranded itself
as a luxury lifestyle brand with the launch of lifestyle and tableware collections. It collaborates
with Malaysian actress, Scha Alyahya which is called BONIA x SCHA.
Nature of its business

• Vision, Mission
Bonia is a lifestyle brand that creates both enduring and reimagined classics. It aims to fuel
your sense of self-expression and investigation. Besides that, since the 1970s Bonia has been
on a mission to mature luxury goods for all of the BONIA men and women, we want to become
part of their lives. Beyond setting trends, we want to foresee the needs of our customers and
curate a lifestyle towards which they can aspire.

Furthermore, we believe that quality can satisfy our customer's expectations and deliver
promises. We will continue learning from mistakes and be proactive to let our brand continue
to improve. The essence of adventure and romance are the spirit of Bonia which hopes to
inspire and continually explore new ways to empower the community.

Encouragement and support will be habits that we practice as an integral part of our culture.
Our mission is to design and produce a creative portfolio of timeless products that inspire
lifestyle across generations. Nothing embodies our commitment to craftsmanship more than
the best-selling style BONIA Monogram since 1974. We believe that the Corporate and Brand
Image is an important asset which can demonstrate what we are and what we stand for. (Our
Philosophy & Ethos, 2023)

• Target customers

Bonia’s target customer is a middle-income group that is between 20-45 years old
which has household income between RM 5251- RM 11819. Bonia’s target customers
are focused on trendy products, fashion and prioritize luxury image products. The
examples of target customers are people who prioritize luxury and trendy lifestyle,
professional workers, people who have income and high purchasing power.
• Products of Bonia

1. Bags 2. Wallet

Women- backpacks, sling bags, Women- long wallet, compact wallet,

bucket bags, shoulder bags, totes card holders, pouches

Men- backpacks, crossbody bags, Men- long wallet, compact wallet,

totes card holders

3. Shoes 4. Accessories

Women- boots, flats, heels, sandals, Women- belt, scarves, bag straps,
pumps, mules, sneakers lanyards

Men- sandals/slides, sneakers, Men- belt, lanyards

loafers

5. Watches 6. Apparel

Women- La Luna Monogram Series, Women- coats & jackets, dress &
Cristallo, Sirena, metal, leather skirt, pants & shorts, shirts & tops,
sportswear, unisex
Men- La Luna Monogram Series, Men- blazers & jackets, pants, shirts,
metal, leather unisex, sweatshirts
• Services of Bonia

Services Explanation

1. Product care On the website of Bonia, it will give some directions to

take care about the products.
Eg: leather care- leather cream, leather moisturizer,
patent leather care, nubuck leather and suede care, storing
leather goods

2. Shipping services Consumers can track their order through the delivery
company. For Malaysia delivery, consumers can trace
their parcel from GD express while international delivery
trace from DHL. (Track My Order, 2023)

3. Returns and exchanges There are some terms and conditions that consumers need
to notice. The returned or exchanged items must be in
original condition with the original packaging, price tags
and labels. Items that are on sale or discounted cannot be
returned or exchanged unless there is proof of a
manufacturing problem. Returns are only accepted for
clothing and shoes if the item or items you bought do not
fit. Besides that, consumers who purchase products online
can return or exchange via courier while consumers who
purchase from Bonia stores can return or exchange from
outlet stores. (Returns & Exchanges, 2023)

4. Store pickup Bonia provides store pickup service to its consumers.

Consumers can shop online and collect their purchased
items from the outlet they choose. The products will take
7 working days to arrive at the outlet that the consumer
chose. There are 3 outlets available for store pickup
service which are BONIA KLCC, BONIA One Utama
and BONIA Mid Valley Southkey. (Store Pickup, 2023)
5. Privacy policy Bonia would like to collect customers’ names, date of
birth, gender, postal address, and other relevant
information to provide services, information, promotional
or latest products to the customers. So when customers
visit Bonia’s website, it will automatically gather some
information regarding your preferences which include
your IP address. Bonia will ensure a sufficient level of
protection by implementing technology and policies to
protect customers’ privacy from unauthorized access,
unlawful destruction, accidental loss or improper use.
(Privacy Policy, 2023)
Analysis of financial performance

1) Liquidity- Current Ratio

Current ratio is chosen to compare Bonia’s current assets to its current liabilities. It is used to
measure whether Bonia can cover its current liabilities with its current assets. Current ratio
with a value more than one shows that a company has sufficient current assets to meet its
current liabilities. Therefore, it can help investors to have a better understanding of the ability
of Bonia to cover its current liabilities with current assets.

Statements of Financial Position as at 30 June 2022

Current Assets = RM 248,416,000

Current Liabilities = RM 89,874,000

Current Ratio = Current Assets/ Current Liabilities

= RM 248,416,000/ RM 89,874,000

= 2.76 times

For every RM 1 of current liabilities that Bonia has, it has RM 2.76 worth of current assets.

Statements of Financial Position as at 30 June 2021

Current Assets = RM 206,483,000

Current Liabilities = RM 71,425,000

Current Ratio = Current Assets/ Current Liabilities

= RM 206,483,000/ RM 71,425,000

= 2.89 times

For every RM 1 of current liabilities that Bonia has, it has RM 2.89 worth of current assets.

According to the Statements of Financial Position of Bonia in 2021, its company’s current
assets are RM206,483,000 and its current liabilities are RM71,425,000. Using the current ratio
formula, we know that Bonia can cover its current liabilities at 2.89 times in 2021.
Next, according to the Statements of Financial Position of Bonia in 2022, its company’s current
assets are RM 248,416,000 and its current liabilities are RM 89,874,000. Using the current
ratio formula, we know that Bonia can cover its current liabilities at 2.76 times in 2022.

In conclusion, Bonia has enough current assets (inventories, trade and other receivables, current
tax assets, cash and bank balances, and short-term funds) to cover its current liabilities (trade
and other payables, borrowings, lease liabilities, provision for restoration costs, contract
liabilities, and current tax liabilities) in both 2021 and 2022. The liquidity of Bonia had
deteriorated from 2021 to 2022. This is because there’s an increase in Bonia’s current assets
and current liabilities in 2022. However, the increase in the proportion of current liabilities is
more than the increase in the proportion of current assets causing the value of the current ratio
to decline. This indicates that Bonia’s ability to generate cash has also decreased. (Business
Ratios, 2023)
2) Asset Management Ratios- Inventory Turnover Ratio

Inventory turnover ratio is chosen to compare Bonia’s cost of goods sold to its ending inventory.
It is an efficiency ratio that measures how efficiently inventories are managed. (Inventory
Turnover Ratio, 2023)For example, it measures how many times a Bonia’s inventory is sold
and replayed over a specified period.

Statements of Profit or Loss and Other Comprehensive Income for the FYE 30 June 2022

Cost of Sales = RM 140,517,000

Statements of Financial Position as at 30 June 2022

Ending Inventory = RM 53,869,000

Inventory Turnover Ratio = Cost of Sold/ Ending Inventory

= RM 140,517,000/ RM 53,869,000

= 2.61times

On average, Bonia has produced and sold inventories 2.61 times in 2022.

Statements of Profit or Loss and Other Comprehensive Income for the FYE 30 June 2021

Cost of Sales = RM 124,264,000

Statements of Financial Position as at 30 June 2021

Ending Inventory = RM60,792,000

Inventory Turnover Ratio = Cost of Sold/ Ending Inventory

= RM 124,264,000/ RM60,792,000

= 2.04 times

On average, Bonia has produced and sold inventories 2.04 times in 2021.

According to the Statements of Profit or Loss and Other Comprehensive Income of Bonia, its
company’s cost of sales is RM 124,264,000 in 2021. According to the Statement of Financial
Position of Bonia, the company has an ending inventory of RM60,792,000 in 2021. Using the
inventory turnover ratio formula, we know that the company will sell their inventory 2.04 times
in 2021.

On the other hand, according to the Statements of Profit or Loss and Other Comprehensive
Income of Bonia, its company’s cost of sales is RM 140,517,000 in 2022. According to the
Statement of Financial Position of Bonia, the company has an ending inventory of RM
53,869,000 in 2022. Using the inventory turnover ratio formula, we know that the company
will sell their inventory 2.61 times in 2022.

In summary, Bonia improved in producing and selling inventory from 2021 to 2022. Bonia
inventories in 2022 will be faster than inventories in 2021. This means that Bonia produced
and sold its goods in 2022 faster than in 2021.
3) Debt Management Ratio- Debt Ratio

Debt ratio is chosen to compare Bonia’s total liabilities to its total assets in debt management
ratio. It measures the percentage of funds provided by creditors. Debt ratios can be utilized to
analyse a person's, company's or government's financial situation.

Statements of Financial Position as at 30 June 2022

Total Liabilities = RM 222,348,000

Total Assets = RM 645,498,000

Debt Ratio = Total Liabilities / Total Assets

= RM 222,348,000 / RM 645,498,000

= 0.3445 or 34.45%

34.45% of the firm’s total assets are financed using debt.

Statements of Financial Position as at 30 June 2021

Total Liabilities = RM 196,642,000

Total Assets = RM 581,677,000

Debt Ratio = Total Liabilities / Total Assets

= RM 196,642,000 / RM 581,677,000

= 0.3381 or 33.81%

33.81% of the firm’s total assets are financed using debt.

According to the Statement of Financial Position as at 30 June 2022, total liabilities of Bonia
is RM 222,348,000 and its total assets is RM 645,498,000. After using the debt ratio formula,
we know that 34.45% of the firm’s total assets are financed using debt.

Besides that, according to the Statement of Financial Position as at 30 June 2021, total liabilities
of Bonia is RM 196,642,000 and its total assets is RM 581,677,000. After using the debt ratio
formula, we know that 33.81% of the firm’s total assets are financed using debt.
In conclusion, debt management of Bonia in 2021 was better than 2022. There is an increase
in Bonia’s total liabilities and total assets in 2022 compared to 2021. The lower the ratio, the
better the company’s debt management. Bonia can earn profits by reducing its debt ratio. If
Bonia’s debt ratio is high, it may have borrowed more money than it can easily pay back.
4) Profitability ratios- Gross profit margin

Gross profit margin is to measure the amount of firms earning from its revenue after deducting
the cost of goods sold. We can know the firm has generated how much gross profit for every
RM 1 of revenue earned by the firm.

Statements of Profit or Loss and Other Comprehensive Income for the FYE 30 June 2022

Gross Profit = RM 192,494,000

Revenue = RM 333,011,000

Gross Profit Margin = Gross Profit / Revenue x 100%

= RM 192,494,000 / RM 333,011,000 x 100%

= 57.80%

For every RM 1 of revenue earned, the firm has generated RM 0.58 of gross profit.

Statements of Profit or Loss and Other Comprehensive Income for the FYE 30 June 2021

Gross Profit = RM 136,955,000

Revenue = RM 261,219,000

Gross Profit Margin = Gross Profit / Revenue x 100%

= RM 136,955,000 / RM 261,219,000 x100%

= 52.43%

For every RM 1 of revenue earned, the firm has generated RM 0.52 of gross profit.

According to the Statements of Profit or Loss and Other Comprehensive Income for the
Financial Year Ended 30 June 2022, the company’s gross profit is RM 192,494,000 and
revenue is RM 333,011,000. After calculating the gross profit margin, we know that 57.80%
or RM 0.58 is generated by the firm when earning RM 1 revenue.

According to the Statements of Profit or Loss and Other Comprehensive Income for the
Financial Year Ended 30 June 2021, the company’s gross profit is RM 136,955,000 and
revenue is RM 261,219,000. After calculating the gross profit margin, we know that 52.43%
or RM 0.52 is generated by the firm when earning RM 1 revenue.

In conclusion, the profitability of Bonia in 2022 was better than 2021. This is because there is
an increase of gross profit and revenue in 2022. Bonia will operate more efficiently when the
company gets a higher profit margin.
5）Market value ratios

Market value ratio is concerned with the company's stock price to its earnings. It indicates how
much investors are consenting to pay per dollar of reported profit. A higher ratio indicates that
investors are consenting to pay a higher share price today due to future share price growth
forecasts.

Statements of Profit or Loss and Other Comprehensive Income for the Financial Year Ended
30 June 2022

Profit after tax:RM52,561,000

Number of ordinary shares outstanding:RM201,572,000

Earnings per share＝Profit after tax / Number of ordinary shares outstanding

＝RM52,561,000/201,572,000

＝RM0.2608(26.08sen)

P/E ratio＝price per share/earnings per share

＝RM1.87/RM0.2608

＝7.17times

The firm’s shares currently sell for 7.17times its earnings.

Statements of Profit or Loss and Other Comprehensive Income for the Financial Year Ended
30 June 2021

Profit after tax:RM16,162,000

Number of ordinary shares outstanding:RM201,572,000

Earnings per share＝Profit after tax / Number of ordinary shares outstanding

＝RM16,162,000/201,572,000

＝RM0.0802(8.02sen)
P/E ratio＝price per share/earnings per share

＝RM0.90/RM0.0802

＝11.22 times

The firm’s shares currently sell for 11.22 times its earnings.

According to the Statements of Profit or Loss and Other Comprehensive Income for the
Financial Year Ended 30 June 2022 the profit after tax of Bonia company is RM52,561,000
and the number of ordinary shares outstanding is RM201,572,000. By using the formula, we
can know the earnings per share is RM0.2608.After calculating the P/E ratio we know that the
company’s shares currently sell for 7.17 times its earnings.

Besides that, as stated by Statements of Profit or Loss and Other Comprehensive Income for
the Financial Year Ended 30 June 2021 the profit after tax of Bonia company is RM16,162,000
and the number of ordinary shares outstanding is RM201,572,000. By using the formula, we
can know the earnings per share is RM0.0802.After computing the P/E ratio we know that the
company’s shares currently sell for 11.22 times its earnings.

In a nutshell, the P/E ratio shows that investors were paying less for the company’s earnings in
2022, as compared to 2021. The P/E ratio decrease can indicate either that the Bonia company
may be undervalued or it is operating exceptionally well relative to 2021. The lower the P/E
ratio is the better it is for both business and investors.
Other Analysis- SWOT Analysis

SWOT analysis represents strengths, weaknesses, opportunities and threats which is a

technique that assesses these four aspects of a business. It is a tool that helps Bonia to review
their entire business and establish a successful strategy in future. (Home, 2023)

Strengths

Bonia offers a wide range of high-quality products and excellent services. Firstly, Bonia sells
products such as leather bags, shoes, accessories and more. It is well-known for their high-
quality leather products made from high quality materials. This will be a unique selling point
for Bonia compared to most of their competitors that used artificial leather goods to produce
their products. Besides that, Bonia’s employees were also well-trained and able to assist
customers in fulfilling their requirements. Their employees have sufficient knowledge in
providing excellent customer service which will help to increase the customer satisfaction.
Therefore, Bonia can gain competitive advantages and attract more customers which
subsequently increase their sales in future.

Weaknesses

Firstly, Bonia makes products with a high material cost. We know that Bonia uses high quality
leather materials to make their products so the material costs will be higher than other
competitors like Pedro and Charles & Keith. With a high material cost, this will increase the
price of products. Consumers might not be able to afford it and target consumers will be lesser.
Moreover, Bonia sells similar products with their competitors like Pedro and Charles & Keith.
Nowadays, a lot of fashion industries produce similar and undifferentiated products and sell
them in the market. For example, Bonia sells wallets, bags, and accessories in their store which
are almost the same with their competitors. Therefore, Bonia needs to have the most attractive
products to stand out from their competitors.

Opportunities

Bonia can innovate its products by launching new products with new features, new products
with existing features, or existing products with new features. Since Bonia has a lot of
competitors who sell similar products, they need to develop new products or collections while
retaining the use of high-quality materials. As the movie ‘Barbie’ went viral in 2023, Bonia
collaborated with them and set up a pop-up store to introduce the Barbie x Bonia capsule
collection at Sunway Pyramid Mall. To promote this program, they will sponsor toys for
critically ill children when any customer spends RM 900 or above in a single purchase. (Bonia
and Barbie's first collaboration , 2023) Therefore, this can increase Bonia’s business reputation
which will attract more new customers and retain their existing customers. Bonia can also
remain competitive among its competitors in the future as it can keep up with the new trends.

Threats

Firstly, customers may change their preferences toward a product or brand according to the
trends. Bonia company find it difficult to know the needs and wants of their target consumers.
The company needs to do research and follow the current trends to make the suitable products
and keep their customers. For example, people love to buy the black color bag normally as it
easily matches the outfit. However, when the Barbie movie came out, the current trend became
the pink color was the most popular. Besides that, there is intense competition in the fashion
industry because many competitors sell similar products. Fashion products are not the necessity
goods so they can easily be substituted by new trend goods. Consumers will compare Bonia’s
products to those competitors such as comparing the price, quality and design before buying.
When Bonia does not follow the trend, it may cause the sale and revenue of their company to
decrease. (SWOT analysis of Bonia Corporation Berhad Assignment, 2023)

(3385 words)
Appendix

Appendix 1- Logo of Bonia Corporation Berhad

Appendix 2- Statement of Financial Position of Bonia Corporation Berhad as at 30 June 2022
Appendix 3- Statements of Profit or Loss and Other Comprehensive Income for the Financial
Year Ended 30 June 2022
Appendix 4- Price per share of Bonia Corporation Berhad in 30 June 2021

Appendix 5- Price per share of Bonia Corporation Berhad in 30 June 2022

Appendix 6- The Barbie x BONIA collection

Appendix 7- Barbie x BONIA: Pink Style Express at Sunway Pyramid Shopping Centre

Appendix 8- The products sell in the Bonia store and those competitors are similar.
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