(a) Nature Of Business Of Cepatwawasan Group Berhad

Cepatwawasan Group Berhad is an investment holding company with its subsidiaries

principally involved in oil palm cultivation, milling, quarrying, and sales of oil palm

products. This company uses residual wastewater (Palm Oil Mill Effluent or POME)

from palm oil production to generate green and sustainable electricity.

(b) Identify And Describe The Decision Of The Stakeholders

There are two groups of stakeholders (Internal and External Users) utilize the annual

report to gather the essential information to make their decision. The company which

had assigned is CEPATWAWASAN GROUP BERHAD. Shareholders as an internal

shareholders have to make decision whether to buy, remain or sell out the shares to

others. The shareholders will consider whether to buy more or remain the shares to earn

more profits from the shares. External stakeholders are those who do not directly work

with a company but are affected somehow by the actions and outcomes of the business.

Creditors as an external stakeholders will evaluate the borrower’s financial situation

and forecast future operations to determine the borrower’s capacity to make scheduled

payments. If the company continues to lose money, creditors will also consider whether

to grant interim financial assistance.

1
C) i) The changes amount in SOCI & SOFP
Statement of Comprehensive Income

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER

2020

Particular The Group

Increase/Decrease

2020 2019 Amount Percentage

(RM’000) (RM’000) (RM’000) (%)

Revenue 234,994 215,280 19,714 9.2

Cost of Sales (201,215) (197,033) (4,182) 2.1

Gross Profit 33,779 18,247 15,532 85.1

Interest income 513 707 (194) (27.4)

Other operating income 1,500 1,882 (382) (20.3)

Other expenses (2,133) (268) (1,865) 695.9

Administrative expenses (8201) (8376) 175 (2.1)

Profit from operations 25,458 12,192 13,266 108.8

Finance costs (3,678) (5,474) 1,796 (32.8)

Profit before taxation 21,780 6,718 15,062 224.2

Income tax expense (6,566) (4,282) (2,284) 53.3

Profit for the financial year 15,214 2,436 12,778 524.6

Other comprehensive loss, net 280 (87) 367 (421.8)

of tax

Other comprehensive loss for 280 (87) 367 (421.8)

the financial year, net of tax

2
Total comprehensive income 15,494 2,349 13,145 559.6
for the financial year

Profit attributable to owners of 14,618 418 14,200 3,397.1

the company

Profit attributable to non- 596 2,018 (1,422) (70.5)

controlling interests

Total of profit attributable 15,214 2,436 12,778 524.6

Total comprehensive income 14,793 363 14,430 3,975.2

attributable to owners of the
company

Total comprehensive income 701 1,986 (1,285) (64.7)

attributable to non-controlling
interests

Total of comprehensive income 15,494 2,349 13,145 559.6

Earning per share attributable to 4.73 0.14 4.59 3,278.6

owners of the company (sen per
share)

3
Statement of Financial Position

STATEMENT OF FINANCIAL POSITION

Particular The Group

Increase/Decrease

31/12/2020 31/12/2019 Amount Percentage (%)

(RM’000) (RM’000) (RM’000)

Assets

Non-current
assets

Property, plant 342,434 350,518 (8,084) (2.3)

and equipment

Investment 43,340 43,340 0 0

properties

Intangible 17,358 17,358 0 0

assets

Land use rights - - - -

Investments in - - - -
subsidiaries

Deferred tax 6,777 7,559 (782) (10.3)

assets
\Trade and other - - - -
receivables

Total non- 409,909 418,775 (8,866) (2.1)

current assets

Current assets

Biological 2,180 1,927 253 13.1

assets

4
Inventories 16,482 23,151 (6,669) (28.8)
Trade and other 12,831 13,953 (1,122) (8.0)
receivables

Tax recoverable 832 1,503 (671) (44.6)

Short-term 13,883 13,927 (44) (0.3)

investments

Cash and bank 25,550 15,660 9,890 63.2

balances

Total current 71,758 70,121 1,637 2.3

assets

Total assets 481,667 488,896 (7,229) (1.5)

Equity &
Liabilities

Equity

Share capital 318,446 318,446 0 0

Treasury shares (11,097) (11,097) 0 0

Reserves (80,874) (80,934) 60 (0.1)

Retained profits 107,693 96,825 10,868 11.2

Total of above 334,168 323,240 10,928 3.4

data

Non-controlling 7,384 9,846 (2,462) (25.0)

interests

Total equity 341,553 333,086 8,466 2.5

Non-current
liabilities

5
Loans and 44,751 49,309 (4,558) (9.2)
borrowings

Deferred tax 24,889 23,223 1,666 7.2

liabilities

Lease liabilities 3,186 2,614 572 21.9

Lease rental - - - -
liabilities

Total non- 72,826 75,146 (2,320) (3.1)

current
liabilities

Current
liabilities

Loans and 46,295 54,500 (8,205) (15.1)

borrowings

Lease liabilities 851 732 119 16.3

Trade and other 19,064 24,687 (5,623) (22.8)

payables

Taxation 1,079 745 334 44.8

Total of above 67,289 80,664 (13,375) (16.6)

data

Total liabilities 140,115 155,810 (15,695) (10.1)

Total equity 481,667 488,896 (7,229) (1.5)

and liabilities

6
C)ii) SIX (6) components, THREE (3) each from SOCI and SOFP

Analysis Data of Statement of Comprehensive Income

Total Revenue

Year Year Amount Percentage (%)

2019 (RM’000) 2020 (RM’000) (RM,000)

Total Revenue 215,280 234,994 19,714 9.2

Total Revenue
240,000 234,994

230,000
RM'000

220,000 215,280

210,000

200,000
Total Revenue

2019 2020

Based on the bar chart above show that the total revenue of Cepatwawasan Group Berhad

company in the Year 2020 was RM234,994 million and compare to Year 2019 was

RM215,280 million. The different amount for this two years, Year 2020 and Year 2019 were

RM19,714, means that the revenue from Year 2019 to Year 2020 has increased by RM19,714

million. In the other words, the company’s performance has increased by 9.2% compared to

Year 2019.

According to the annual report of Cepatwawasan Group Berhad, reason of revenue

increased is due to sales performance has increased. Good sales in Year 2019 were RM215,280

million whereas sales in Year 2020 was RM234,994 million. It means that the sales have

increased 9.2% which is RM19,714 million. This is the reason shows that total revenue has

increased.

7
Total Expenses

Particular 2020 2019 Amount Percentage

(RM’000) (RM’000) (RM’000) (%)

Other Expenses (2,133) (268) 1,865 695.9

Administrative (8,201) (8,376) (175) (2.09)

Expenses

Finance Costs (3,678) (5,474) (1,796) (32.80)

Income Tax Expenses (6,566) (4,282) 2,284 53.34

Total Expenses (20,578) (18,400) 2,178 11.84

Total Expenses
21,000 20,578
20,500
20,000
19,500
RM'000

19,000
18,400
18,500
18,000
17,500
17,000
Total Expenses

2019 2020

An expense is the cost of operations that a company incurs to bring revenue. Common

expenses include payments to suppliers, employee wages, factory leases, and equipment

depreciation. The table and the chart show that the total expenses of the company increase from

RM 18,400 million (Year 2019) to RM 20,578 million (Year 2020). An increase of RM 2,178

million and equivalent to 11.84 % is noted. The reason of increase in total expenses is because

of the increase in other expenses and income tax expense. Other expenses had increased up to

695.9% compare with last year. Besides that, income tax expenses had also increased up to

53.34% compared with last year.

8
Total Profit
Particular 2019 2020 Amount Change in
RM’000 RM’000 RM’000 percentage
(%)

Total Profit 2,436 15,214 12,778 524.6

Total Profit
16,000 15,214

14,000
12,000
10,000
RM'000

8,000
6,000
4,000 2,436
2,000
0
Total Profit

2019 2020

Based on the bar chart above show that the total profit of the CEPATWAWASAN

GROUP BERHAD company in the year 2019 was RM2,436 million compared to year 2020

RM15,214 million. The amount of profit between year 2019 and 2020 is RM12,778 million,

mean that the profit had increased. In a word, the process of year 2020 is better than year 2019

by 524.6%.

The reason of CEPATWAWASAN GROUP BERHAD’s profit had increased is because

the company has sold better result in year 2020 than year 2019, the company increase all the

resources. Overall, the revenue has increased RM19,714 million to 8.4% by accelerate goods

and services. By focusing in property, plant and equipment the expanses in year 2020 is

increased by RM10,311 million compared to year 2019. It will increase company’s profit.

9
Total Assets
Increase/Decrease
Year 2019 Year 2020
Amount
(RM’000) (RM’000) Percentage (%)
(RM’000)

Total Assets 488,896 481,667 (7,229) (1.5)

Total Assets
490,000 488,896
488,000

486,000
RM'000

484,000
481,667
482,000

480,000

478,000
Total Assets

2019 2020

Based on the bar chart above shows that the total asserts of Cepatwawasan Group Berhad

company in the Year 2020 was RM481,667 million and in the Year 2019 was RM488,896

million. In these two years, it has decreased RM7,229 million in the Year 2020. The company

has decreased 1.5% in Year 2020. The reason of total assets decreased is due to Cepatwawasan

Group Berhad company’s property, plant and equipment and deferred tax decreased. Compare

to Year 2019 the property, plant and equipment has decreased RM8,084 million and the

deferred tax has decreased RM782 million. At the same time, inventories and trade and other

receivables of the company also decreased. Inventories has decreased RM6,669 million and

trade and receivables has decreased RM1,122 million in Year 2020. The total non-current

assets have decreased RM8,866 million in Year 2020 but the total current assets in Year 2020

has increased RM1,637 million.

10
Total Liabilities

Particular 2019 2020 Amount (RM) Percentage (%)

RM’000 RM’000
Total Liabilities 155,810 140,115 15,695 10.1

Total Liabilities
160,000
155,810
155,000

150,000
RM'000

145,000
140,115
140,000

135,000

130,000
Total Liabilities

2019 2020

Based on the bar chart above show that the total liabilities of the CEPATWAWASAN

GROUP BERHAD company in the year 2019 was RM155,810 million, and in the year 2020

was RM140,115 million. The amount of between year 2019 and 2020 is RM15,695 million,

mean that the liabilities had decreased. In short, in the year 2020, it decreased 10.1%.

The reason of CEPATWAWASAN GROUP BERHAD’s liabilities had decreased

because of in year 2020, the trade and payables were decreased RM5,623 million. At once, in

year 2020 the company had decreased the load and borrowing because of the legal charges over

certain leasehold plantation have reduce. The total non-current liabilities had decreased

RM2,320 million in year 2020.

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Total Owner’s Equity

2020 2019 Increase (Decrease)

Particular (RM ’000) (RM ’000)

Amount Percentage
(RM’000) (%)

Total Equity 341,552 333,086 8466 2.5

Total Owner's Equity

344,000
341,552
342,000
340,000
338,000
RM'000

336,000
334,000 333,086

332,000
330,000
328,000
Total Owner's Equity

2019 2020

The table and chart show that the number of total equities was RM 333,086 million in

year 2019 and RM 341,552 million in year 2020. It shows that the number of total equities has

increased from RM 333,086 million (2019) to RM 341,552 million (2020). An increase of RM

8466 million and equivalent to 2.5 % is shown. The reason of increase in total equity is because

of the retained profits has increased from RM 96,825 million (2019) to RM 107,693 million

(2020). An increase of RM 10868 million and equivalent to 11.2 % is noted. The number of

share capital didn’t change from year 2019 to year 2020 at RM 318,446 million but the number

of total equities still increases in year 2020.

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D) Decision

Based on my analysis, I will choose Cepatwawasan Group Berhad to be invest. This is

because Cepatwawasan Group Berhad has an increasing total equity 2.5% based on year 2019

to year 2020. Return on equity (ROE) of Cepatwawasan Group Berhad was 9.5% based on year

2019 to year 2020. Cepatwawasan Group Berhad seems like have a good return on equity in

future. The ROE of the company (9.5%) is quite higher than the industry (8.8%). In addition,

the retained profits had increase 11.2% based on year 2019 to year 2020. It means that the

company had earn more income so that they can grow up their retained profit for others

important use. The company also very serious about the sharing profits because the company

has paid dividends at least five years. For the following years, the payout ratio of the company

is expected. In general, I will invest the Cepatwawasan Group Berhad.

I will invest in the company Cepatwawasan Group Berhad（CGB）. This company is an

investment holding company with its subsidiaries principally involved in oil palm cultivation,

milling, quarrying and sales of oil palm products. Increasing profit income for the financial

year is the main reason that I will invest the company based on the annual report 2019 and

2020. The total comprehensive income for the financial year in 2019 is RM2.4 million however

2020 is RM15.2 million. The overall profit had increased RM12.8million or (524.6%) compare

with last year. That’s why I will invest in this company because the net profit income is going

up. After 2017, the net income for CGB is slowly decrease year to year. But in 2020, it has

risen a lot after two years. 2020 become the highest net profit from 2018 to 2020 which is

RM15.2 million. Besides that, other factor that make net profit increase is the revenue. The

total revenue of CGB in year 2019 is RM215.2 million and year 2020 is RM234.9 million The

change in percentage between the year 2019 and also the year 2020 is (9.2%) . So, these reason

that may make me more attractive investment to CGB because the increasing of net profit.

13
 The opposite external reason was palm oil production. Cepatwawasan Group Berhad

(CGB) is pleased to contribute to the Malaysian palm oil industry’s long-term growth. The

company maintains a positive environmental image through its plantation activities. CGB

appreciates the contribution to CGB's recycling of solid wastes and the Palm Oil Mill Effluent

(POME) to generate power. A subsidiary company operates a biogas power plant that generates

electricity by absorbing and burning methane gas from POME. Another subsidiary runs a

biomass power plant that generates electricity from the combustion of solid waste such as

empty oil palm fruit bunches, oil palm shells, mesocarp fibres and wood waste.

Moreover, sustainability of Cepatwawasan Group Berhad (CGB) is Cepatwawasan

Humana Education Resource Centre (CHERC). CHERC was achieved Asia Responsible

Entrepreneurship Award in 2015. Since its start in 2009, the response to CHERC has been

overwhelmingly positive. It currently has 200 students enrolled. Most importantly, the children

continue to complete primary school, with a very low dropout rate. To date, more than 300

preschool and primary school students have graduated. This has prompted CHERC to reach

out to more children in need and to improve the teaching quality on a regular basis. A total of

100 teachers from various Humana centres had also attended CHERC sessions. CHERC, the

largest of the Humana centres, serves as a model and benchmark for the others. It has attracted

UNICEF, foreign embassies, and local and international organisations. Overall, I feel

Cepatwawasan Group Berhad shows that their whole system is pretty good. So, I would like to

invest to Cepatwawasan Group Berhad.

14
Appendix

15
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