Assignment-New Venture DEvelopment Q1. Write a profile of 2 companies who are financially not stable, Q2. Provide reasons for their failure

1. (ASSIGNMENT TEMPLATE – ENGLISH VERSION) (COVER PAGE)
< FACULTY: OUM BUSINESS SCHOOL>
< SEMESTER / YEAR: MAY/2015
< COURSE CODE: BMNV5103>
< COURSE TITLE:NEW VENTURE DEVELOPMENT>

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Table of Contents
Page Number
Question 1(a) Company Profile1 2 – 4
Company Profile 2 5 – 7
Question 1 (b) Question 1 (b) 8 - 18
Conclusion 18 - 19
List of Abbreviations 20
Attachment 1 to 8 21-29
References 30

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Question 1(a)
Company Profile 1
The Malaysian company chosen for this assignment is Asia Knight Berhad, formerly known as
Pahanco Corporation Berhad (Co No: 71024-T). This company was incorporated in 1981 and it
changed name to Asia Knight Berhad (AKB) in October, 2012.
AKB is a public limited liability company, incorporated and domiciled in Malaysia and is listed
on the Main Market of Bursa Malaysia Securities Berhad. Please refer to Attachment 1 for AKB’s
corporate information.
During the financial period, the Company changed its financial year end from 31 December to 30
June. Consequently, the current financial period is made up for 18 months from 1 January 2013 to
30 June 2014. This assignment will be based on information extracted from the audited financial
report for the period ending 30 June 2014 and 31 December 2013.
The principal activities of the Company are investment holding and sales and marketing of
particleboards. The Company has suspended its operations pending restructuring of its operations
and proposed acquisitions of businesses and joint ventures.
In the audited financial report for the 18 months ending 30 June 2014 the auditors of AKB in the
“Independent Auditors’ Report to the members of AKB” have included a “Disclaimer of Opinion”
statement. The auditors were unable to express an opinion on AKB’s financial statement after
conducting the audit in accordance with approved standards on auditing in Malaysia due to several
matters described in the “Basis for Disclaimer of Opinion paragraph”.

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The auditors express: “During the financial period, the Group and the Company had incurred a net
loss of RM9.8million and RM12.6million respectively and as of that date the Group’s current
liabilities exceeded its current assets by RM12.7million. The continuation of the Group as a going
concern is dependent on the successful restructuring of the Group’s operations and continued
availability of adequate financial support from its shareholders, creditors and bankers.”
AKB is classified by Bursa Saham Malaysia as a PN17 company. PN17 stands for Practice Note
17/2005 and is issued by Bursa Malaysia, relating to companies that are in financial distress. AKB
has a timeframe of 12 months from the date of the First Announcement (31 October 2014) to
submit its plan to regularize its financial condition.
Attachment 2 shows, total revenue of AKB rose 83% during the 18 months financial period ended
30 June 2014, as compared to the 12 months financial year ended 31 December 2012. However
during the same period AKB’s net loss before taxation increased by 21.0%. No dividend was
declared, in view of the loss.
It appears that while the Group was able to restructure its manufacturing and overall business
operations however it failed to control manufacturing and operational cost which increased, by
50% during the financial year ended 2014 as compared to 2012.
The revenue of the Group for the current financial year ending 30 June 2014 was partly contributed
by manufacturing of plastic parts division. This business was acquired in April 2014 through the
purchase of the entire equity interest in T-Venture Industries (M) Sdn Bhd at an acquisition cost
of RM4.8million.

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The Directors report the manufacturing of particleboards, which was one of the principal activities
of the Group has been stopped due to strong competition from low cost producing countries and
the increasing operating costs. The manufacturing division and the hotel operations
division remains the core businesses of the Group during the financial year. A breakdown of the
contribution from each division towards Group revenue is provided in Attachment 2.
There were 2 (two) issues of shares during the financial year ending 30 June 2014 which
increased AKB’s issued and paid-up ordinary share capital. The net issuance raised RM16.5
million which was used for working capital and partial settlement of debts owing to related
parties.
Attachment 3 shows the ratio analysis for AKB. The liquidity ratios reveals the company
is not in a position to meet its short term debts or convert its assets into cash. The asset turnover
ratio shows very poor management of assets in generating revenue. However the average
collection period of its accounts receivable has been reduced to 3 months. Gearing ratio
measures the degree to which the Group’s activities are funded by owner’s fund as compared to
creditor’s funds. AKB’s gearing ratio for the current financial period is lower as compared to the
two previous financial periods. This could be due to the Group’s exercise to issue shares and
partly repay creditors. The Group’s basic loss per share has increased to 20.8 sen as compared to
the previous two financial periods.

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Company Profile 2:
The second Malaysian company chosen for this assignment is Nationwide Express Courier
Services Berhad (NWE) (Co No: 133096-M). NWE was founded in 1985, it is one of the first few
locally established companies in Malaysia with its principal activities being that of a courier
service provider. .
NWE is a public limited liability company, incorporated and domiciled in Malaysia, and is listed
on the Main Market of Bursa Malaysia Securities Berhad. The Group’s corporate information is
provided in Attachment 4. Attachment 5 shows the vision and mission statement and core value
of NWE.
NWE’s financial year end is on 31 March. This assignment will be based on information extracted
from the audited financial report for the period ending 31 March 2014 and 31 March 2013.
The principal activities of the Group consist of providing express courier services, trucking
services, freight forwarding services, customized logistic services, mailroom management
services, retail and warehousing.The Group has developed a range of dedicated products and
solutions tailored to meet the demands of their discerning customers.
Attachment 6 is a line chart presentation of the financial performance of NWE over a five (5) year
period spanning from 2010 to 2014. NWEs revenue has shown a steady rise from 2010 to 2013
before decreasing in 2014 by 1.31% as compared to revenue recorded in 2013. However the net
profit after tax of NWE has shown steady decline from 2010 to record its highest net loss after
taxation of RM2.9 million in 2013. Surprisingly in 2013, NWE recorded its highest revenue of
RM99 million. Similarly the shareholders fund has been also decreasing steadily over the five

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years.Shareholders fund represents the amount by which a company is financed through its
common stocks plus retained earnings.
NWE did not declare any divided in the financial year ending 2014 due to the loss recorded.
The lower revenue recorded in 2014was attributed to expiry of long term contracts and generally
lower sales during the year. The courier service industry is a highly competitive industry and NWE
faces competition from both local and overseas courier service providers. One of its strongest
competitors is Pos Malaysia Berhad. A comparison of the breakdown of NWE and PMB revenue
by segments is provided in Attachment 7. PMB has recorded progressively higher revenue over
the three year period and it has shifted from the courier services to mail management segment, as
its biggest contributor of revenue. This is unlike NWE which has maintained its revenue
contribution by segments throughout the three years period studied in the assignment.
NWE’s brand name is “Nationwide Express” which the company has capitalized upon as a brand
that can be easily associated with courier and express delivery services in the Malaysian logistics
scene. However looking at NWE’s financial performance the company has to look into creating a
brand experience for its consumers in order for NWE to sustain and continue remaining
competitive in this business.
NWE’s operations have an indirect negative impact on the environment through its heavy reliance
on motor vehicles and usage of paper. Among the proposed initiative to protecting the environment
include regular servicing of its existing vehicles and recycling of paper. NWE has also used
information technology systems to better manage routes run by its vehicles and on-line services
for its customers to place delivery bookings and to view statements of account. This helps to reduce
emission of carbon to the environment and reduces paper usage.

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Attachment 8 is a ratio analysis of NWEs performance over a three year period. The liquidity ratio
in the current financial year of 4.15:1 suggests NWE has a large margin of safety to cover its short-
term debts. The asset turnover ratio is an indication of the efficiency with which a company is
deploying its assets. The ratio analysis for NWE indicates the company has a poor asset utilizations
which has dropped over the three year period. The higher gearing ratio in the current financial year
is because the company has purchased motor vehicles using Islamic finance leasing. The company
is committed to repay the borrowings over a five year period.
NWE’s gross profit ratio in the current year is 24.2%. NWE was able to record a higher gross
profit margin due to reduction in the cost of services through restructuring and better costs
management. A ratio analysis of its expenses indicates it has remained the same as previous year
except for the selling and marketing expenses and finance costs. The selling and marketing costs
has seen a reduction over the years and the finance costs has increased substantially in the current
year. This increase could be attributed to financing costs for the purchase of motor vehicles.
Question 1 (b)
Following is a discussion of the major causes of a business venture failure.

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A companies’ failure to understand the market and its customers could possibly be one of the
causes of failure of the business venture. Any venture should be able to identify its competitive
market space and customers buying habits in order to continue generating its sales and to have
healthy cash flow.
AKB’s original business venture into selling particle boards was not profitable for the group. It
was not able to anticipate and understand the changes in the market. On one hand customers were
looking for variety in the quality of particleboard manufactured and at lower prices. Particleboards
are used especially in the manufacture of furniture and fittings for household and office. Customers
were also becoming environmentally conscious and were cautious using wood-based products as
it involved cutting down of trees.
However AKB’s competitors like Heveaboard Berhad has been successful in the manufacture, of
particleboards and particleboards related furniture. Heveaboard through its subsidiary engaged in
partnership with rubber tree producers and was able to obtain continuous supply of trees which
were cut down during replanting. Heveaboard too ventured into production of furniture and
fittings. Its production of various quality of particleboards and at lower prices appealed to
customers. Its furniture production too was successful among customers as the designs were
modern and appealed to customers taste.
AKB was not able to compete with the local manufactures nor could it anticipate the global
competition. Countries like the Philippines and China were also producing particleboards of
various quality to meet various uses for its customers and at lower production costs. AKB had
invested heavily in plants and machinery for the production of particleboards and their production
method did not facilitate any changes in the production methodology. New production methods

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were evolving which resulted in a better quality particleboards which can be applied for different
usage purposes. AKB was not able to compete effectively against its competitors and lost its
market share.
Lessons to be learnt here are a new venture should be aware of the changes occurring in the market
and in its competitors. It is also important to know customers’ expectations. Any heavy investment
in plant and equipment should be done only after a careful study of the market and analysis of
potential costs and revenue is performed. If this is not performed the investment only weighs
heavily upon the performance of the company, affecting its future growth.
Secondly, a business venture may fail when it is unable to understand and communicate what it is
selling to its customers. Thus it becomes important for companies to clearly define their value
proposition and effectively communicate it to their customers.The company in their value
proposition statement should be able to explain how they would provide for their customers and
how the product would help to solve the customers’ needs, well.
In its financial report for the year ending 31 March 2014 NWE states among the customized
products and solutions its offers to its customers are the Mail Room Management Services (MMS)
and Pharmaceutical Dedicated Services (PDS) NWE’s strongest competitor PMB has successfully
positioned itself among B2B customers as the solutions provider for all their mail room
management needs. The PDS services was to provide logistics services for the pharmacies to
ensure safe storage and distribution of the pharmaceutical products. However it is questionable if
NWE succeeded in promoting this services among its medical and pharmacy relating business
customers.

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Please refer to Attachment 7 which compares the volume of revenue by product segment of NWE
against PMB. PMB has shown growth in revenue over the three year period by product segment.
NWE shows reduced growth in sales volume and its revenue by product segment has not changed
much over the three year period.
It is possible NWE’s marketing strategy is not effective to promote its range of new products to its
potential customers. The ratio analysis for NWE’s selling costs shows a reducing trend from 2012
to 2014. For effective sales and marketing promotion activities to proceed, it is important sufficient
allocation is made in the budget so that the marketing team can produce results through higher
sales.
Lessons to be learnt here would be that having a great product alone is not sufficient for a new
venture to succeed, it is important sales and marketing efforts also go together in order to get the
products to the customer’s attention. Promotional activities should go with creating a customer
value proposition in order to be effective in getting sales revenue.
The third possible reason for a business venture failure is its inadequate cash flow position. The
short term financial health of a company is reflected by its working capital. Generally a ratio of
between 1.2 to 2.0 against current liabilities is preferred however this would depend on the
industry.
The working capital ratio for AKB has been below 1 over the three years. In the financial year
ending 30 June 2014, the working capital ratio is 0.31:1. This can be interpreted to mean for every
RM1 of short term lability the company has only RM0.31 worth of current assets to meet the debt.
The low working capital also supports the high leverage of the Group as it is heavily relying on

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debt or borrowings to service its daily operations. On the other hand it also indicates the Group is
struggling to maintain and finding new sources of revenue.
A look at AKB’s current assets, indicates it consists of mainly of trade receivables and inventory.
The auditors have also stated the trade receivables of the Group comprise balances past due of
RM2.1million which the directors however believe is recoverable. Other than debtors the current
assets comprise over RM1million of inventories. Inventories usually take time to liquidate and if
sold immediately it is likely the selling price may have to be reduced to find a potential buyer.
The low liquidity ratio is also indicative of the general poor management of the company as it is
reflective of the ineffectiveness of the sales and marketing teams to generate revenues, the overall
debt management by the company and management of finances.
This unhealthy cash flow position has also resulted in AKB not being able to service repayment
of its banking facilities with its banker. This poor state of affairs of the Group is pointed out by the
auditors of AKB in their disclaimer of opinion statement.
The lesson to be learnt here for new ventures is while making profits is important the company
should also look at maintaining a healthy working capital. Availability of liquid cash is important
for the company, for purposes of running its day-to-day operations and to take advantage of any
new opportunities that may arise. Banks would also be more likely to advance to a company with
healthy financial position as it reflects good management practices.
The fourth possible reason for the business venture failure is it’s over dependence on a single or
group of customers, so that when the contract or agreement expires and is not renewed it affects
the revenue of the business concerned.
This could possibly be the case with NWE which had a drop in revenue of 1.3% in the financial
year ending 31 March 2014 as compared to the previous financial year. Though this may be a small

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number, from the financial report it can be understood NWE did know the contracts were expiring
in 2013/2014. NWEshould have taken two possible actions: firstly look into renewing the contract
and secondly look for potential new sales contracts.
Thus it becomes important especially for a services based firm to have effective marketing team
in order to put forward its services to potential customers. There is a huge potential in sourcing
B2B customers as was done by, NWE’s competitors, PMB. NWE needs to seriously increase its
marketing allocation as there is a possibility of it losing its potential customers to its competitors.
Also in NWE’s effort to maintain its customers it is important the company be sensitive to the
needs of its customers. Staff training is essential to interact effectively with customers and be a
solution provider to their needs. Competition is high in this business and NWE has to embark on
every possible effort to retain and generate new customers.
The lesson to be learnt here is, it is not advisable for a venture to be over dependent on a single
customer. When the contract expires or the customer sources a different supplier the company
suffers from reduced sales. Marketing efforts should be continuous in order to gain new customers
as well as to keep existing customers. Any customer retention exercise involves total management
and staff commitment.
Fifth reason for a business venture failure is the reactive attitude of management towards
competition, technology or marketplace changes. Any failure to be innovative and not being
generally aware of the goings on in the market will affect the competitiveness of the firm.
AKB’s management was not reactive towards competition both internally and globally. New
players had entered the market who not only manufactured varying quality of particleboards but

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at lower manufacturing cost. The competitors had also successfully ventured into the end-user
products example furniture and fittings using the particleboards.
For example. AKB’s competitor HB had successfully applied the changing technology in their
production methods to come up with quality products which also met with consumer’s needs. HB
were able to produce at lower production cost which resulted in them being able to sell at reduced
prices. The market for particleboards was changing, new technology created new products which
appealed to the changing tastes of the consumers.
AKB’s management could not react positively and in a timely manner to changes that were
occurring in the manufacture of particleboards. AKB had invested heavily in machinery and
equipment for purposes of production of particleboards however the equipment could not facilitate
any modifications to its internal structure for innovation in production.
The management team of AKB continued to struggle to remain in the industry and decided in 2014
to stop the manufacture of particleboards and to venture in to the area of plastic parts manufacture
and sales.
Lessons to be learnt here for future ventures is, it is important for the management team to be fully
aware of their market and changes that are occurring in that market in terms of technology and
consumer tastes. Any failure to address such changes in a timely manner would result in the
company not being able to meet sales targets and losing its customers to the competitors. This
would be costly on any venture as it impacts on the company’s future growth.
The sixth reason for a business failure is when there is no customer strategy in place. Customers
represent revenue to a business, it is important for the business to put in place effective strategy to

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retain and grow its market share. Thus understanding the customers’ needs and wants become
crucial for the development of a strategy.
NWE has ventured in to various new products for example MRM and PDS. Both are customer-
driven solution provider services, however the question is how far has NWEbrought forward these
services to its customers. A customer strategy is essential for NWE if it wants to gain a competitive
edge in the marketplace by building a large and loyal customer base. The only way for NWE to
grow its sales would be building a customer-centric strategy that works on building loyalty and
word-of-mouth advertising among the company’s client base. NWE’s customer strategy should
meet and exceed potential customer’s expectations. A customer service culture within NWE is also
essential towards customer retention.
It is not clear if NWE has undertaken any market research to identify its customers’ needs and
requirement before introducing the various products. Though it is important to diversify products
range however it should be reflected in revenue through increased revenue. However this does not
appear to be the case for NWE.
The lessons to be learnt here would be customer strategy is essential for any new venture in order
to retain and build new sales. A customer driven strategy encompassing management and staff in
the firm becomes essential in order to be seen as meeting the needs of its customers. Thus an
exercise encompassing the whole firm becomes important in its efforts to retain and build its
customer base.
The seventh reason for a venture failure is poor management. Management of a business
encompasses a number of activities: planning, organizing, controlling, directing and
communicating. It is important for a business to know where it stands at all times as compared to

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competitors, technological changes and its consumer needs. A common problem faced by
successful companies is growing beyond management resources or skills.
For AKB the loss situation the company is in and its generally poor state of affairs is reflective on
its directorship and management. The ratio analysis over a three year period on AKB shows the
company’s unhealthy working capital, asset generation ratio and gearing ratio. However the
management team appears to have shifted their concentration on marketing from particleboards to
their hotel operations and in 2012 trading in apparel wear which was discontinued in 2014. In 2014
directors decided to discontinue manufacture of particleboards and to shift to manufacture of
plastic parts.
This move has resulted in the plant and machinery used for manufacture of particleboards being
classified as assets held for sale totaling RM7.9million. As at the audited financial report date, the
Directors appear to be sourcing for buyers and the resale value is as yet undetermined.
Also the directors of AKB are also the majority shareholders of the Group. The directors may
have had managerial qualities and resources to run the company earlier but as the various
companies consolidated and a Group was established, it is possible the directors did not possess
the acumen to run such a large Group. Either a managerial team consisting of experts in their
respective fields or a specialized consulting firm could have been hired by the directors in order to
move AKB forward. The current poor state of affairs of AKB certainly reflects on the management
team.
Lessons to be learnt for future venture entrepreneurs is it is essential they be able to read and
understand financial reports. Financial reports reflect the financial position and the state of affairs
of a company. If the entrepreneur lacks this skill he should hire or seek exert help from companies

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which provide such services. Being able to interpret financial figures is important as it should save
the entrepreneur much headache before the venture turns into a loss running business.
The eighth reason being when legal proceedings are initiated against the company for possible
wrong doings by the company concerned.
AKB has three legal proceedings initiated against it, with total claims amounting to approximately
RM2.2 million. The first claim involves AKB being sued for a sum of RM610,000 being the initial
due diligence review costs for aborting the proposed acquisition of a company. The second claim
is for RM1.6million by Tenaga Nasional Berhad against AKB for alleged malfunction of the
electricity meter which caused the meter readings be inconsistent with the electricity supplied to
AKB. The third proceeding involves AKB’s subsidiary for infringement of copyright.
All three proceedings were mentioned by the auditors as significant events which would have
major impact on AKB’s financial performance and statement of affairs. Legal proceedings against
a company gives it a negative impact in the public eye as it implies the company has done
something against the law of the country.
The lesson to be learnt here would be to avoid any wrongdoing especially those that involves
fraudulent activity. It is always better for a new venture to stay within the law and ensure it gets
the advice of a professional lawyer where legal matters are involved, to avoid any possible claims.
Litigation involves heavy cost to the company and also gives the unwanted negative publicity from
the media.
The ninth reason being poor management of its assets. The asset turnover ratio analyses how
effectively and efficiently a company manages its assets in order to generate sales.

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During the current financial year NWE’s asset turnover ratio is 1.25X, (Attachment 8) which is
interpreted as for every RM1 of assets the Group is generating RM1.25 worth of sales. Over the
three year period analyzed it appears this ratio has been decreasing. NWE has made purchase of
motor vehicle in 2013 and 2014. The purpose of the purchase was in order to replace the old
vehicles and to upgrade its services to cater for the new services in PSB that NWE expected to
venture. However the above ratio analysis indicates the company has very poor asset management
which means it is underutilizing its assets in order to generate revenue. This could also means the
company has over-capitalized by buying assets it does mot actually require and tying itself up in
debts. Also the gearing ratio is high reflecting the loans NWE has acquired in order to purchase
the fixed assets.
The lessons leant here is that asset management is very important. Assets are purchased in order
for a company to generate revenue and if the asset does not do so then the acquisition cost of that
asset only weighs heavily upon the company. Thus it becomes important, a cost study is performed
to see whether a capital acquisition would be profitable for the company.
The tenth reason for the failure of a business venture would be when its management team have a
poor knowledge of the business ventured. Knowledge here encompasses product knowledge,
market knowledge, consumer demand, competitors, capital requirement and future prospects of
the business. This list does not cover all the knowledge required but it does give a fair idea as to
their importance in a new venture prospect. A failure to address this issues could possibly result in
the venture going broke.
This was what had occurred to AKB. The directors had decided to venture into production of
particleboards and had as a result purchased the machinery required in the production of

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pasteboards. However it appears the directors did not obtain any expert advice as to the viability
of this venture. AKB has invested heavily into machinery which only ended up being underutilized
as production had to be cut down due to low demand.
AKB’s competitors were able to fulfill customers demand in terms of quality, quantity and price.
AKB was not able to predict the changes that were occurring in customers demand. The
competitors had also diversified their venture to manufacture of furniture and fittings using
particleboards as their main material. This innovative ideas was well received by the consumers
as the material used had modern designs and was economical.
Thus the lesson learnt here is any new entrepreneur should cultivate the habit of acquiring
knowledge of his venture. This would enable him to remain competitive and to sustain demand for
its products. This habit of knowledge acquisition should be continuous as changes occur constantly
and knowledge would enable the entrepreneur to say ahead of competition and make wise
decisions.
Conclusion
The two Malaysian copies selected for this assignment were Asia Knight Berhad and Nationwide
Express Courier Services Berhad. Both are public listed companies, While NWE continues to be
listed in Bursa Saham Malaysia, AKB’s status is that of a PN17 company. Both companies are
suffering losses and their continued presence in the market place depends on their respective
management to steer the companies to profitable grounds.
Ten reasons were put forward for possible causes of their failure. The reasons encompassed areas
of
 Generally poor management of all areas of business
 Inability to understand and lack of knowledge of market conditions

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 No knowledge and failure to comprehend competitors move
 Inability to address changes in customers’ needs and wants towards building stable
customer relations
It was the failure to address all of the above issues by both the companies that had resulted in both
of them being in the present state of affairs.
There were indeed many lessons to be learnt by any future venture entrepreneurs towards making
their business profitable. Managerial ability covers business management, finance, accounting,
production, selling and marketing, distribution and finally human capital management. A new
venture who can cover all of the above areas, either on his own or gaining expert help, would
certainly make his venture a successful one.
(Number of Words:
List of Abbreviations
AKB Asia Knight Berhad
NWE Nationwide Express Courier Services Berhad
PMB Pos Malaysia Berhad
B2B Business to Business
HB Heveaboard Berhad

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Attachment 1:
Asia Knight Berhad (Co No: 71024-T)
Registered Office:
No. 9, Jalan Bayu Tinggi, 2A/KS6, Taipan 2, Batu Unjur, 41200 Klang, Selangor Darul Ehsan
Principal Place of Business:
No. 33 & 35, Jalan Batu Tiga,41300 Klang, Selangor Darul Ehsan
and

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Kawasan Perindustrian Batu Tiga, Jalan Kuantan Gambang, 25150 Kuantan, Pahang Darul
Makmur.
Auditors:
Nexia SSY, SSY Building @ Sentral, Level 1, 2A Jalan USJ Sentral 3, USJ Sentral, Persiaran
Subang 1, 47620 Subang Jaya, Selangor Darul Ehsan
Principal Bankers:
HSBC Bank Malaysia Berhad, 1 Jalan Mahkota, 25000 Kuantan, Pahang Darul Makmur
CIMB Bank Berhad, No A1, Lorong Tun Ismail, Sri Dagangan 2, 25000 Kuantan, Pahang Darul
Makmur
Share Registrars :
Symphony Share Registrars Sdn Bhd (Co No: 378993-D), Level 6, Symphony House,
Pusat Dagangan Dana 1, Jalan PJU 1A/46, 47301 Petaling Jaya, Selangor Darul Ehsan
Attachment 2:
Breakdown of sources of Income and Expenditure of Asia Knight Berhad
For the 18 months
Financial year ending
30 June 2014
(millions) RM
For the 12 months
Financial year ending
31 December 2012
(millions) RM
For the 12 months
Financial year ending
31 December 2011
(millions) RM
Manufacturing 2.1 1.0 2.2
Hotel Operations 4.2 2.7 2.7
Trading 4.3 2.6 -
Total Revenue 11.6 6.3 4.9

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Less Expenses (20.2) (13.4) (1.9)
Net Loss/Profit
Before Tax
(8.6) (7.1) 3.0
Attachment 3: Asia Knight Berhad – Ratio Analysis
For the 18
months
Financial
year ending
30 June
2014
(millions)
RM
For the 12
months
Financial
year ending
31 December
2012
(millions)
RM
For the 12
months
Financial
year ending
31 December
2011
(millions)
RM
Liquidity Ratio
1. Current Ratio Total Current Assets 5,559
18,217
4,447
27,092
2,795
22,657

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Total Current
Liabilities
= 0.31 = 0.16 = 0.12
2. Quick Ratio Total Current Assets
– Inventory / Total
Current Liabilities
5,559 -1,097
18,217
= 0.24
4,447 – 1,091
27,092
= 0.12
2,795 – 1,458
22,657
= 0.06
Activity ratios
1. Asset Turnover
Ratio
Turnover
Total Assets
11,518
51,733
= 0.22
6,339
52,078
= 0.12
4,875
54,719
= 0.09
2. Receivables
Turnover
3. Average
Collection
Period
Turnover
Accounts
Receivables
365
Receivables
Turnover
11,518
2,892
= 3.98
365
3.98
= 91.7 Days
6,339
1,992
= 3.18
365
3.18
= 114.8 Days
4,875
523
= 9.3
365
9.3
= 39.2 Days
Financial Ratios
1. Gearing
Ratio
Total Borrowings
Total Equity
6,062
31,317
= 19.4%
6,885
24,570
= 28.0%
7,875
31,646
= 24.9%
2. Basic Loss
Per Share
Net Loss after Tax
Weighted Average
Number of Ordinary
Shares
9,767
46,953
=20.8 sen
7,160
44,083
= 16.2 sen
6,788
44,083
= 15.40 sen
Attachment 4:
Nationwide Express Courier Services Berhad (Co No: 133096-M)
Registered Office and Principal Place of Business:
Lot 11A, Persiaran Selangor, Section 15, Selangor Darul Ehsan
Auditors:

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Messrs. Hanafiah Raslan & Mohamad (AF:0002) Chartered Accountants, Level 23A, Menara
Milenium, Jalan Damanlela, Pusat Bandar Damansara, Damansara Heights, 50490 Kuala
Lumpur
Principal Bankers:
Malayan Banking Berhad and HSBC Bank Malaysia Berhad
Registrar:
Symphony Share Registrars Sdn Bhd (Co No: 378993-D)Level 6, Symphony House, Pusat
Dagangan Dana 1,Jalan PJU 1A/46, 47301 Petaling Jaya, Selangor Darul Ehsan
Attachment 5:
Nationwide Express Courier Services Berhad (Co No: 133096-M)
Vision Statement:
To be the Premier Total Logistics Provider Globally Providing Innovation in Services
with State of the Art Technology

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Mission Statement:
Nationwide Express D.E.L.I.V.E.R.S
• Dedicated Workforce
• Efficient and Excellent Services
• Learning Organization
• Intimacy with Business Partners
• Value Stakeholders
• Exceed Customers’ Expectations
• Respect for Individual Dignity
• Socially Responsible
Core Values:
Trustworthiness & Excellence Driven
Our Core Values denote and represent the deeply held beliefs within Nationwide Express. These
timeless principles are intrinsic values, which are seen in all our employees through our day-to-
day behavior and attitude. We hold these values close to our hearts as these are the very values,
which makes us Nationwide Express!
Attachment 6:
Nationwide Express Courier Services Berhad – Financial Performance over a 5 year period
(all figures are in millions)

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Attachment 7:
Nationwide Express Courier Services Berhad – Breakdown of Sales over three year period
according to product segments
2010 2011 2012 2013 2014
Turnover 87,520 92390 96178 99036 97742
Profit or Loss After Taxation 1792 1270 1205 -2922 -892
Shareholders Fund 68090 67632 67279 63021 62145
-20,000
0
20,000
40,000
60,000
80,000
100,000
120,000
Nationwide Express Courier Services Berhad - Financial
Performanceover 5 years
Turnover Profit or Loss After Taxation Shareholders Fund

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Pos Malaysia Berhad – Breakdown of Sales over three year period according to product segments
Attachment 8:
Nationwide Express Courier Services Berhad – Ratio Analysis: A comparison over 3 years.
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
Mail Courier Retail Others
Revenue(inRM'000)
Product Segments
Pos Malaysia Berhad
2014 2013 2012
0
20000
40000
60000
80000
100000
Courier Freight Retail & Others
RevenueinRM'000
Product Segments
Nationwide Express Courier Services Berhad
2014 2013 2012

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Ratio Computation Financial
Year Ended
31.3.2014
Financial
Year Ended
31.3.2013
Financial
Year Ended
31.3.2012
Liquidity Ratio
1. Current Ratio Total Current Assets
Total Current
Liabilities
43,710
10,540
= 4.15
41,549
9,910
= 4.19
2,795
22,657
= 0.12
Activity ratios
4. Asset Turnover
Ratio
Turnover
Total Assets
97,742
78,317
= 1.25
99,036
73,060
= 1.36
96,178
54,719
= 1.76
Financial Ratios
5. Gearing
Ratio
Total Borrowings
Total Equity
7,713
62,145
= 12.4%
26
63,021
= 0.04%
181
67,279
= 0.27%
6. Basic (Loss)/Profit
Per Share
Net Loss/Profit after
Tax
Weighted Average
Number of Ordinary
Shares
(892)
60,116
=(1.5sen)
(2,922)
60,116
= (4.9sen)
1,205
60,116
= 2.0sen
Profitability Ratios
7. Gross Profit Ratio
Gross Profit
Revenue
23,689
97,742
= 24.2%
21,199
99,036
21.4%
25,370
96,178
= 26.4%
8. Staff Salary &
Related Expenses
to Revenue Ratio
Staff Salary
Revenue
36,849
97,742
37.7%
37,312
99,036
37.7%
37,269
96,178
= 38.8%
9. Directors
Remuneration
To Revenue Ratio
Directors
Remuneration
Revenue
410
97,742
= 0.42%
470
99,036
= 0.47%
568
96,178
=0.59%
10. Administrative
Expenses/Revenue
Ratio
Administrative
Expenses
Revenue
21969
97742
= 22.5%
21344
99036
= 21.6%
20,599
96,178
= 21.4%

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11. Selling &
Marketing
Expenses To
Revenue Ratio
Selling & Marketing
Expenses
Revenue
2287
97742
= 2.3%
2502
99036
= 2.5%
2578
96,178
= 2.7%
12. Other Expenses to
Revenue Ratio
Other Expenses
Revenue
304
97742
= 0.3%
283
99036
= 0.3%
180
96,178
= 0.2%
13. Finance Costs to
Revenue Ratio
Finance Costs
Revenue
70
97742
= 0.07%
13
99036
= 0.01%
141
96,178
= 0.2%
14. Total Expenses to
Revenue Ratio
Total Expenses
Revenue
24630
97742
= 25.2%
24142
99036
= 24.4%
23,498
96,178
= 24.4%
1.
References

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1. www.klse.info/counters/view/stock/9954
2. www.klmanagement.com.my/.../pn17-listed-companies-in-financial-distr...
3. www.investopedia.com/university/ratio-analysis/using-ratios.asp
4. onstrategyhq.com/resources/ten-common-causes-of-business-failure/
5. Business/Business-News/2015/06/22/IRM-Group-expects-to ...
6. www.thestar.com.my/...News/.../IRM-Group-expects-to-return-to-the-bla...
7. lowes.com/cd_OSB,+MDF+%26+Particleboard+Buying+Guide_42...
8. www.mtib.gov.my/natip/Natip3.pdf
9. www.investopedia.com/terms/l/liquidityratios.asp
10. www.investopedia.com/terms/g/gearingratio.asp
11. www.investopedia.com/terms/s/shareholdersequity.asp
12. https://en.wikipedia.org/wiki/Particle_board
13. www.investopedia.com/terms/w/workingcapital.asp
14. www.investopedia.com/terms/a/assetturnover.asp
15. www.unitiv.com/intelligent-help-desk.../What-is-Customer-Strategy
16. klse.i3investor.com/servlets/stk/annrep/9954.jsp
17. cdn1.i3investor.com/my/files/.../2014/07/25/1481056458-124877377.p...
18. cdn1.i3investor.com/my/files/.../2014/07/.../1481056459--2031955314....
19. www.heveaboard.com.my/