School of Business
Master of Business Administration
BMBS 1024
Accounting and Finance for Managers
Analysis of Financial Statements of Fima Corporation Berhad and
Sarawak Plantation Berhad
Group Assignment
Action Learning Project Report
January 2019 Semester
Submitted by:
1234-
NAME
Yousuf Mohammed Alam
Lee Su Zy
Joseph Emmanuel Patricks
Nyan Heth Hut
Student ID
0112126
0127202
0116670
0115602
Table of Content
Page
1.0 Introduction
1.1 Background of Fima Corporation Berhad
1
1.2 Background of Sarawak plantation Berhad
2
1.3 Overview of Financial Ratio Analysis
2
2.0 Comparison of Three Valuation Ratios
3
2.1 Liquidity Ratio (Appendix 2)
3
2.1.1 Current Ratio
3
2.1.2 Quick Ratio
4
2.2 Profitability Ratio (Appendix 3)
5
2.2.1 Gross Profit Margin
5
2.2.2 Net Profit Margin
6
2.2.3 Return on Capital Employed
7
2.3 Gearing Ratio (Appendix 4)
8
3.0 Recommendation and conclusion
10
4.0 References
12
5.0 Appendix
14
Figures
Figure 1: Current Ratio
Page
3
Figure 2: Quick Ratio
4
Figure 3: Gross Profit Margin
5
Figure 4: Net Profit Margin
6
Figure 5: Return on Capital Employed
7
Figure 6: Gearing Ratio
8
1.0 Introduction
1.1 Background of Fima Corporation Berhad
Fima Corporation Berhad (Appendix 1) has been registered as an investment holding
company with consist of plentiful subsidiaries primarily invested in the field of
manufacturing, plantation and property management. Malaysia is the second largest producer
of palm oil in the world, after Indonesia. According to the announcement of the Malaysian
Palm Oil Council (MPOC), the country has been contributed to the world palm oil production
in 29% and exports around the world as 37% (Terence, 2017).
In Malaysia, the production of palm oil has contributed almost 6% of the country’s
Gross Domestic Product (GDP) with currently occupy over five million hectares around the
country. According to the result of the research paper stated that Malaysia has widely served
29.4% of the global Palm oil output on 0.1% of global agricultural land in 2016 (Terence,
2017). By looking at the historical analytical on hectares, the rapid growth in Sarawak by
took off large scale oil planting in Sabah during that time which has exceeded a million
hectares.
Impressively Fima Corporation Berhad, through its subsidiaries, is engaged in the
production of security and confidential documents, oil palm production and processing, and
production and sale of bank notes. The Company operates in three segments: production and
trading, which is engaged in the production and trading of security and confidential
documents; investment holding and property management, which include investment holding,
rental, management of commercial properties, and oil palm production and processing. Its
subsidiaries include Security Printers (M) Sdn. Bhd., Percetakan Keselamatan Nasional Sdn.
Bhd., FCB Property Management Sdn. Bhd., FCB Plantation Holdings Sdn. Bhd. and PT
Nunukan Jaya Lestar.
Page 1 of 24
1.2 Background of Sarawak plantation Berhad
Sarawak Plantation Berhad (SPB) (Appendix 1) was incorporated in Malaysia on 28
October 1997 as a private limited company under the name of Sarawak Plantation Sdn Bhd.
and commenced business in the same year. SPB was converted into a public company on 1
February 2000 and assumed its present name (Spbgroup, 2006).
Sarawak Plantation Berhad (SPB) was specially incorporated as the vehicle company
for the privatization of the Sarawak Land Development Board’s (SLDB) assets. The
privatization of SLDB’s assets, comprising oil palm plantations, milling facilities and related
assets, was effected in 1997 through the transfer of SLDB’s assets to SPB Group (comprising
SPB and its subsidiaries). With this privatization, all principal assets of SLDB are owned and
managed by SPB and certain of its subsidiaries (Spbgroup, 2006).
The Group is principally engaged in the cultivation and processing of oil palm into
crude palm oil and palm kernel. Other businesses include seed production, cattle integration,
provision of laboratory and management services and property investment.
According to Spbgroup (2006), SPB is one of the pioneer players in the oil palm
industry in Sarawak. Currently, the Group has a total land bank of 48,056 hectares (ha) of
which 1,855 ha is under the Native Customary Rights (NCR) scheme. In addition, 417 ha is
under joint venture development with a government statutory body.
1.3 Overview of Financial Ratio Analysis
Ratio analysis is a quantitative analysis of information contained in a company’s
financial statements. Ratio analysis is used to evaluate various aspects of a company’s
operating and financial performance. Ratio analysis involves evaluating the performance and
financial health of a company by using data from the current and historical financial
statements. The data retrieved from the statements is used to compare a company's
performance over time to assess whether the company is improving or deteriorating; compare
a company's financial standing with the industry average; or compare a company to one or
more other companies operating in its sector to see how the company stacks up (Investopedia,
2019).
Most investors are familiar with a few key ratios, particularly the ones that are
relatively easy to calculate. Some of these ratios include the current ratio, return on equity
Page 2 of 24
(ROE), the debt-equity (D/E) ratio, the dividend payout ratio, and the price/earnings (P/E)
ratio. While there are numerous financial ratios, ratio analysis can be categorized into six
main groups: Liquidity Ratios, Solvency ratios also known as gearing ratio, Profitability
Ratios, Efficiency Ratios, Coverage Ratios, and Market Prospect Ratios (Barnes, 2006).
This assignment will focus on 3 ratios: Liquidity Ratios, Gearing Ratio, and
Profitability Ratios in order to analyze annual report company financial statements for the
company Fima Corporation Berhad and Sarawak Plantation Berhad, also to determine which
company is superior to invest in.
2.0 Comparison of Three Valuation Ratios
2.1 Liquidity Ratio (Appendix 2)
In accounting, the term liquidity is defined as the ability of a company to meet its
financial obligations as they come due. The liquidity ratio, then, is a computation that is used
to measure a company's ability to pay its short-term debts. There are three common
calculations that fall under the category of liquidity ratios. The current ratio is the most liberal
of the three. It is followed by the acid ratio also known us quick ratio, and the cash ratio.
These three ratios are often grouped together by financial analysts when attempting to
accurately measure the liquidity of a company (Investopedia. 2019).
2.1.1 Current Ratio
Figure 1
Current Ratio
5,4
6
4,4
5
4
3
1,9
1,2
Sarawak
2
1
0
2016
Fima
2017
Figure: 1 Current Ratio
Page 3 of 24
The current ratio indicates a company's ability to pay its current liabilities from its
current assets. This ratio is used to quickly measure the liquidity of a company. The formula
for the current ratio is Current Ratio = Current Assets / Current Liabilities. Current assets are
those assets that are expected to turn into cash within one year. Current liabilities are those
debts that are expected to be paid or come due within a year (Bowlin, 1995).
Referring to the above figure 1, the current ratio can conclude that the current ratio of
Fima Corporation is 5.4 in 2016 which is higher compared to the Sarawak plantation 1.2. In
the following year, the current ratio of Fima is 4.4 and 1.9 for Sarawak. In many cases, a
creditor would consider a high current ratio to be better than a low current ratio because a
high current ratio indicates that the company is more likely to pay the creditor back. If current
liabilities exceed current assets the current ratio will be less than 1. A current ratio of less
than 1 indicates that the company may have problems meeting its short-term obligations.
2.1.2 Quick Ratio
Figure 2
Quick Ratio
4,7
4,05
5
4
3
1,7
1,08
Fima
Sarawak
2
1
0
2016
2017
Figure 2: Quick Ratio
The quick ratio is used to measure how well a company can meet its short-term
obligations with its most liquid assets. Liquid assets are those that can be quickly turned into
cash. Most of the current assets are highly liquid with the exception of inventory, which often
takes a longer amount of time to turn into cash. The formula for calculating the quick ratio is
Current assets such as Cash & Cash Equivalents – inventories / Current Liabilities (Mishra,
2016).
Page 4 of 24
In figure 2 shows the quick ratio of Fima Corporation 4.7 which is higher compared to
the Sarawak plantation 1.08 in 2016. Subsequently, in the year of 2017, the quick ratio of
Fima is 4.05 compared to Sarawak 1.7. The higher the ratio, the more financially secure a
company is in the short term. A common rule of thumb is that companies with a quick ratio
of greater than 1.0 are sufficiently able to meet their short-term liabilities. Low or decreasing
quick ratios generally suggest that a company is over-leveraged, struggling to maintain or
grow sales, paying bills too quickly or collecting receivables too slowly.
2.2 Profitability Ratio (Appendix 3)
A profitability ratio is a measure of a company’s profitability, which is a way to
measure a company’s performance as well. Profitability is basically the capacity to make a
profit which is left over from income earned after deducted all costs and expenses related to
earning the income (Fraser, 2013). It can be used to judge a company’s performance and to
compare its performance against other similarly situated companies. It measures the
efficiency in managing assets, liabilities, equity, and costs. Commonly profitability ratios
used in analyzing a company’s performance include a gross profit margin, net profit margin
and return on capital employed (Ville,2015).
2.2.1 Gross Profit Margin
Figure 3
Gross Profit Margin
38.9%
40,00%
31.4%
35,00%
24.5%
23%
30,00%
25,00%
Fima
20,00%
Sarawak
15,00%
10,00%
5,00%
0,00%
2016
2017
Figure 3: Gross Profit Margin
Page 5 of 24
Gross profit margin is the ratio of gross income or the profit to a sale which indicates
how much of every dollar of sales is left after cost of goods sold: (Gross profit margin =
Gross income/Sales). It illustrates how successful a company’s executive management team
is in generating revenue from the costs involved in producing their products and services. In
short, the higher the number, the more efficient management is in generating profit for every
dollar of labor cost involved.
Regarding the above figure 3, described that the percentage of the gross profit margin
ratio of Fima Corporation Berhad (38.9%) is higher than Sarawak Plantation Berhad(24.5%).
In the other hand, the sale of Sarawak Plantation Berhad is nearly 400 million in 2017 which
is 6.8% higher than the sale of Fima Corporation Berhad (Around 372 million). If compare to
the cost of sale between these two companies, the Sarawak Plantation Berhad (around 301
million) is more spending than Fima Corporation Berhad ( around 229 million) which
showed that 24% (301-229/301) more spending in the cost of sales than Fima. Generally,
when the sale of a company is high, it will increase the cost of good sale as well. But it comes
to the analysis of gross profit margin, the lower operating cost of the company will make to
increase their gross profit which helps them to maximize their shareholder’s dividends as
well.
2.2.2 Net Profit Margin
Figure 4
Net Profit Margin
12.3%
14,00%
9.4%
12,00%
10,00%
5%
8,00%
Fima
6,00%
Sarawak
4,00%
2,00%
0,00%
-2,00%
2016
2017
-2.6%
-4,00%
Figure 4: Net Profit Margin
Page 6 of 24
Net profit margin is the percentage by which a company’s total sales or revenue
exceeds or is less than the sum of its expense. If a company has positive net profit margin
during a certain period of time, it means the company made more money during that period
than it spent whereas a negative net profit margin means the company spent more money than
it made (Nailah, 2016). Net profit margin is calculated by subtracting the total cost from total
sales and then dividing the result by total sales. It essentially measures the amount of each
dollar of sales that a company has left over after it pays all of its expenses.
According to the above figure 4, Fima Corporation has better net profit margin than
Sarawak. In 2016, Fima Corporation has 12.3 % (RM0.123 of net income) and Sarawak
plantation has 5 % (RM0.05 of net income) which show that every Ringgit of sale made by
Fima Corporation is exceeded than Sarawak plantation. Beside that the higher ratio, the more
effective a company is at cost control. By looking at the comparison in 2017, Sarawak
plantation has a negative net profit margin by which the company’s expenses are higher than
revenue. Even though Fima Corporation has made positive net profit margin in 2017 but it
has been declined if compared with their previous year (2016) result. Moreover, a company
has a higher net profit margin like Fima Corporation is able to control it costs that buy goods
and services at prices significantly higher than it costs to produce or provide them.
2.2.3 Return on Capital Employed
Figure 5
Return on Capital Employed
13,05%
14,00%
10.4%
12,00%
10,00%
Fima
8,00%
4%
6,00%
Sarawak
4,00%
2,00%
0,00%
-2,00%
2016
2017
Figure 5: Return on Capital Employed
Page 7 of 24
-0.3%
Return on capital employed or ROCE is a profitability ratio that measures how
efficiently a company can generate profits from its capital employed by comparing net
operating profit to capital employed. In other words, the return on capital employed shows
investors how many dollars in profits each dollar of capital employed generates. ROCE is
calculated by earnings before interest and tax (EBIT) and capital employed. EBIT is the
company profile including all expenses but excluding interest and tax expenses. Capital
Employed is commonly calculated as total assets less current liabilities or fixed assets plus
working capital requirement (Pradip, 2017).
By looking at the revenue generated by each company, the capital employed by both
companies should be compared. Although Sarawak plantation had more sales for both years
and more assets, in terms of value, Fima Corporation’s ROCE 13.05% in 2016, 10.4% in
2017 is higher than Sarawak plantation’s 4% in 2016, -0.3% in 2017 ROCE. This means that
Fima Corporation does a better job of deploying its capital than Sarawak plantation. A higher
ROCE indicates more efficient use of capital and it should be higher than the company’s
capital cost. Otherwise, it indicates that the company is not employing its capital effectively
and is not generating shareholder value.
2.3 Gearing Ratio (Appendix 4)
Figure 6
Gearing Ratio
23,00%
21%
25,00%
20,00%
Fima
15,00%
Sarawak
10,00%
5,00%
0,00%
0,00%
2016
2017
0,00%
Figure 6: Gearing Ratio
Page 8 of 24
The world of business in this era is very competitive, tough and fast. In order to stay
longer in the game of business, the main priorities are to grow and develop their projects,
operations, and services. This will also help their business to be more lucrative and
successful. A company can raise capital through equity financing which is the internal funds
and debt financing which are the external funds. This can be seen as gearing. Investopedia
stated that the gearing ratio measures the financial leverage of a company (Investopedia,
2019).
It measures the number of assets invested in a business that is financed by long-term
borrowing and evaluating a company's financial health. This can be calculated by dividing
total debt by shareholders equity (Anon, 2019). Other than that, the gearing ratio also helps to
indicate the financial risk of a business. The higher the gearing ratio, the higher the
proportion of debt to equity, and the lower the gearing ratio, the lower the proportion of debt
to (Bragg and Bragg, 2019).
Figure 6 above shows that the gearing ratio for Fima Corporation Berhad both years
shows 0%. This is because the company did not borrow any loan from lenders. It can be
considered as low for both investors and lenders since the company have no debt involved
and are fully financed by Share Capital. This is good because the company does not have to
pay any loan interest and having no debt means no default risk. Therefore, the cost of
business is decreased and the profit of the company will increase.
The gearing ratio for Sarawak Plantation Berhad in 2016 is 21% and in 2017 is 23%. In
these two years, the company gearing ratio has increased. Nevertheless, the figure shows
Sarawak Plantation Berhad has low gearing ratio which means the company has a low
proportion of debt to equity. Besides that, it also tells that the firm is financially stable and
has good financial management. Moreover, it is a low risk for investors and lenders. So
investors would be happy because the business is a viable investment. As for lenders is a
good sign too because they are confident that Sarawak Plantation Berhad is able to pay back
the amount of loan.
However, the downside of having low ratio gearing is it affects the shareholders. The
reason why owners prefer debt capital is that issuing more stocks will dilute their ownership
stakes in the company and also reduce the amount of power. Furthermore, debt is also
cheaper than equity from a company’s perspective. This is because of the different corporate
tax treatment of interest and dividends.
Page 9 of 24
If the company decides to increase its gearing ratio, they can do as the following below.
Ways to increase the gearing ratio (tutor2u, 2019):

Invest in revenue growth rather than profit.

Buy back ordinary shares.

Convert short-term loans into long term loans.

Issue preference shares or debentures.

Pay increased dividends out of retained earnings.
In conclusion, it is important for a company to manage their debt well. This can result
to good performance of the company. So, having debt can be a strategic business decision
because it means less equity financing. Furthermore, fewer shares outstanding can result in
less share dilution and potentially lead to an elevated stock price. There are always pros and
cons in anything we do. The company should consider these both before making any vital
decision in order to generate profit and keep the shareholders satisfied.
3.0 Recommendation and conclusion
Analysis and interpretation of financial ratios is an important tool in assessing the
company’s performance. It reveals the strengths and weakness of a firm. It helps investors to
decide in which firm the risk is lesser or in which they should invest so that maximum benefit
can be earned. Based on the financial ratios’ analysis with data retrieved from the respective
company’s financial statements in Fima Corporation and Sarawak Plantation, the trend of the
company can be predicted in the near future. From the summarized findings of key financial
ratios as described above in detail, it is recommended for the investor to invest in Fima
Corporation instead of Sarawak Plantation.
With similar size and business nature of the company portfolio, where both companies
has delivered annual revenues approaching RM400million, in general, Fima corporation has
better financial performance and more attractive in long term investment compare to Sarawak
plantation based on the analysis on their profitability, liquidity, and gearing ratio.
In the review of profitability, Sarawak plantation has increased in revenue by +4%
compared to the preceding year and has driven +1.5% improved in Gross profit margin.
However, the company had registered a net loss of RM10.51million in the financial year
2017 mainly due to impairment losses of RM43 million was recognized. These impairment
Page 10 of 24
losses were recognized due to a continuing inability to harvest fresh fruit bunches. This has
shown that the production and operation efficiency of Sarawak plantation is needed to
improve. Fima Corporation has diversified in business with 3 divisions into manufacturing
(62.7%), plantation (35.8%) and property management (1.5%). Fima’s revenue remained
relatively flat with slight falls of -0.8% compared the fiscal year 2016 but it has improved in
Gross profit margin by +7.5% mainly contributed from manufacturing division. However, it
has recognized lower Net profit margin decreased by -2.9% was mainly due to biological
assets in Fima’s Indonesian plantation subsidiary that Indonesian government’s decision to
revoke one of the land titles affecting 57% of its plated area. Even though the case is still in
the midst of appealing the decision, Fima had recognized the impairment losses upfront.
From here we can observe that Fima has constantly driven healthy profitability, even with the
foreseen risk stated above, the management looks to be putting in their best efforts to save the
situation and has taken immediate decision to mitigate its impact which brings more
confidence to the investor on the performance of the company.
In the review of the liquidity and gearing ratio, it is obviously shown that Fima
Corporation position at 3-4 times higher current ratio compared to Sarawak plantation. Most
attractively is Fima not only has strong cash flow but with no borrowings, from the indication
that Fima has zero gearing ratio. Its cash has grown steadily from year to year and we expect
the net cash position to continue into coming years with strong operating cash flow with
limited capex from historical research.
In conclusion, the result of the financial ratio analysis has strongly recommended
investment in Fima Corporation due to the company has remained focused on providing
sustainable value to shareholders through three core performance objectives in profitable
revenue growth, solid returns on capital employed and strong cash generation.
Page 11 of 24
4.0 References
Anon, (2019). Gearing Ratio. Available at: https://xplaind.com/908989/gearing-ratio
[Accessed 22 Feb. 2019].
Barnes, 2006. The Analysis and Use of Financial Ratios: A Review Article. Available at:
https://www.researchgate.net/publication/229579403_The_Analysis_and_Use_of_Fin
ancial_Ratios_A_Review_Article [Accessed 22 Feb. 2019].
Bhimani, A., Horngren, Ch., Datar, S.M., Foster, G. (2008). Management and Cost
accounting, 4th edition. Pearson Education Limited [Accessed 22 Feb. 2019].
Bowlin, 1995. The Current Ratio in Current Position Analysis. Available at:
https://www.cfapubs.org/doi/abs/10.2469/faj.v19.n2.67 [Accessed 22 Feb. 2019].
Bragg, S. and Bragg, S. (2019). Gearing ratio. Accounting Tools. Available at:
https://www.accountingtools.com/articles/2017/5/5/gearing-ratio [Accessed 22 Feb.
2019].
Fraser (2013), Understanding Financial Statements, Tenth Edition. Essex: Pearson Education
limited [Accessed 22 Feb. 2019].
Investopedia,
2019.
Liquidity
Ratios.
Available
at:
https://www.investopedia.com/terms/l/liquidityratios.asp [Accessed 22 Feb. 2019].
Investopedia,
2019.
Ratio
Analysis.
Available
at:
https://www.investopedia.com/video/play/ratio-analysis/ [Accessed 22 Feb. 2019].
Investopedia.
2019.
Gearing
Ratio.
Available
at:
https://www.investopedia.com/terms/g/gearingratio.asp [Accessed 22 Feb. 2019].
Mishra, S, 2016. Quick Ratio: Meaning, Interpretation and Significance (With Example).
Available at: http://www.yourarticlelibrary.com/accounting/ratio-analysis/quick-ratiomeaning-interpretation-and-significance-with-example/66906
2019].
Page 12 of 24
[Accessed
22
Feb.
Nailah Husna (2016), International Journal Of Management And Applied Science The
Analysis Of Financial Performance On Net Profit Margin At Coal Company
[Accessed 22 Feb. 2019].
Pradip, D. 2017, Impact of Return on Capital Employed On Company Performance – An
Introspection
in
India.
Available
At
http://scholarsmepub.com/wp-
content/uploads/2017/10/SJBMS-29848-853-r.pdf [Accessed 22 Feb. 2019].
Spbgroup,
2006.
Corporate
History
of
SPB.
Available
at:
http://www.spbgroup.com.my/about_us.htm [Accessed 22 Feb. 2019].
Terence, T. 2017. “100 Glorious Years Of Palm Oil In Malaysia”: Journal of Star Online:
http://www.star2.com/palmoil/2017/05/18/100-glorious-years-of-palm-oil-inmalaysia/#0ECLLwbVxCwPY5zF.99 [Accessed 22 Feb. 2019].
Tutor2u,
2019.
Gearing
Ratio
|
tutor2u
Business.
Available
at:
https://www.tutor2u.net/business/reference/gearing-ratio [Accessed 22 Feb. 2019].
Ville, 2015. Profitability Analysis of Finnish Banking Sector in 2010-2014, Available at
https://www.theseus.fi/bitstream/handle/10024/100974/Merilainen_Ville.pdf;jsessioni
d=9C762EC5211782D6921C0E33532D1FDD?sequence=2 [Accessed 22 Feb. 2019].
Page 13 of 24
5.0 Appendix
Appendix 1 Company Background
Page 14 of 24
Appendix 2 Liquidity Ratio

Fima Current Ratio
2017- Current Ratio =
Current Asset
Current Liability
471,296,000
= 107,250,000 = 4.40
2016- Current Ratio =
=

Current Liability
395,709,000
73,251,000
= 5.4
Fima Quick Ratio
2017- Quick Ratio =
Current Asset−Inventory
Current Liability
=
2016- Quick Ratio =
471,296,000−37,431,000
107,250,000
= 4.05
Current Asset−Inventory
Current Liability
=

Current Asset
395,709,000−51,003,000
73,251,000
= 4.7
Sarawak Current Ratio
2017- Current Ratio =
=
2016- Current Ratio =
Current Asset
Current Liability
162,147,723
87,328,075
= 1.9
Current Asset
Current Liability
158,351,574
= 129,931,715 = 1.2

Sarawak Quick Ratio
2017- Quick Ratio =
Current Asset−Inventory
Current Liability
Page 15 of 24
=
2016- Quick Ratio =
162,147,723−16,975,430
85,328,075
= 1.7
Current Asset−Inventory
=
Current Liability
158,351,574−18,092,259
129,931,715
= 1.08
Appendix 3 Profitability Ratio

Fima Gross Profit Margin
2017- Gross profit margin =
Gross Profit
Revenue
× 100
142,450,000
= 372,101,000 × 100 = 38.9%
2016- Gross profit margin =
Gross Profit
Revenue
× 100
117,690,000
= 375,207,000 × 100 = 31.4%

Sarawak Gross Profit Margin
2017- Gross profit margin =
Gross Profit
Revenue
× 100
97,749,712
= 399,176,782 × 100 = 24.5%
2016- Gross profit margin =
Gross Profit
Revenue
× 100
84,312,907
= 383,966,858 × 100 = 23%

Fima Net Profit Margin
2017- Net Profit Margin =
Net Profit
Revenue
=
2016- Net Profit Margin =
× 100
35,007,000
372,101,000
Net Profit
Revenue
× 100 = 9.4%
× 100
Page 16 of 24
54,872,000
= 372,101,000 × 100 = 12.3%

Sarawak Net Profit Margin
2017- Net Profit Margin =
Net Profit
Revenue
=
2016- Net Profit Margin =
× 100
(10,509,980)
399,176,305
Net Profit
Revenue
× 100 = −2.6%
× 100
19,330,513
= 383,966,858 × 100 = 5%

Fima Return on Capital Employed
Profit Before Tax
2017- Return on Capital Employed = Capital Employed × 100
61,261,000
= 586,800,000 × 100 = 10.4%
Profit Before Tax
2016- Return on Capital Employed = Capital Employed × 100
77,300,000
= 582,388,000 × 100 = 13.05%

Sarawak Return on Capital Employed
Profit Before Tax
2017- Return on Capital Employed = Capital Employed × 100
(1,546,305)
= 618,476,620 × 100 = −0.3%
Profit Before Tax
2016- Return on Capital Employed = Capital Employed × 100
25,728,163
= 628,986,600 × 100 = 4.1%
Page 17 of 24
Appendix 4 Gearing Ratio

Fima Gearing Ratio
Long Term Loans
2017- Gearing Ratio = Capital Employed × 100
0
= 586,800,000 × 100 = 0%
2016- Gearing Ratio =
Long Term Loans
Capital Employed
× 100
0
= 582,388,000 × 100 = 0%

Sarawak Gearing Ratio
Long Term Loans
2017- Gearing Ratio = Capital Employed × 100
=
110,291,563 + 29,577,184
618,476,620
× 100 = 23%
Long Term Loans
2016- Gearing Ratio = Capital Employed × 100
=
42,925,410 + 89,942,540
618,476,620
× 100 = 21%
Page 18 of 24
Appendix 5 Annual Reports
Fima Corporation Berhad
Page 19 of 24
Page 20 of 24
Sarawak plantation Berhad
Page 21 of 24
Page 22 of 24