FACULTY OF BUSINESS MANAGEMENT

DIPLOMA IN BANKING (BA119)

MBA1193A

FUNDAMENTALS OF FINANCE

FIN242

CHOCOLICIOUS ENTERPRISE

PREPARED FOR:

PUAN HASMI BINTI MOKHLAS

PREPARED BY:

FARAH NABILA BINTI ZULQARNAIN 2018269634

LINA KHALIDA BINTI SHAMSUDIN 2018240332

NUR FARZANA BINTI MAZLAN 2018253496

 NURDINA SUHADA BINTI MAT ASRIPIN 2018415524

NURIZZAHTUL AMIRA BINTI NORISHAM 2018294354

NURUL IZZAH BINTI MOHAMED FAUZI 2018413456

DATE OF SUBMISSION:

2 DECEMBER 2019

ACKNOWLEGEMENT

First and foremost, in the name of Allah, the Most Gracious and the Most
Merciful, Alhamdulillah for all the strengths and His showers of blessing in
completing this report successfully.

Special appreciation goes to our fundamental of finance’s lecturer, Puan Hasmi

Binti Mokhlas, for her supervision and constant support throughout this report. Her
continuous guidance and encouragement has helped us to produce a good outcome
from the research that been studied.

Besides, big thanks to all group members that give full efforts in doing and
completing this assignment successfully. Through this report, we were able to become
more organize and mature in dealing with the problems that occur during the process
of completing this report.

Last but not least, we were also thankful to all our fellow classmates who has
helped us in finishing our report. The ideas and comments by them have helped us to
improve more in our report. We hope that all the efforts in this report will give
benefits for us to make good reports in the upcoming assignments.

TABLE OF CONTENT
No Content Pages

1.0 INTRODUCTION 1-2

1.1 Organizational Chart 3

2.0 PRODUCT AND SERVICES 4-6

3.0 OBJECTIVE OF THE REPORT 7

3.1 Statement of Financial Performance 7

3.2 Financial Analysis

3.2.1 Liquidity Ratio 8

3.2.2 Activity Ratio 9

3.2.3 Leverage Ratio 10

3.2.4 Profitability Ratio 11

4.0 CURRENT ISSUES 12-13

5.0 CONCLUSION 14

6.0 REFERENCES 15
 1.0 INTRODUCTION

Chocolicious Enterprise is a company that sells variety of chocolate bars. The

headquarter of the company is at Shah Alam and the company also have seven
branches in Malaysia. There is 13 products that had been produced by the company.
The name of the company is due to the combination of the word ‘chocolate’ and
‘delicious’. The bar and the ingredients of the products have changed over years. The
company has become one of the most well-known company in Malaysia.

Chocolicious Enterprise was established at Shah Alam, Selangor in 2000, by

Tuan Haji Remy bin Haji Ishak. In 19th May 2000, he started his business in a small
scale where he sold the chocolate that he and his wife made in a retail store. There
was only one type of chocolate that has been introduced in the company which is
Chocolicious Chocolate. After getting a lot of attraction by the neighbourhood, he
then decided to expand his business. He started his business with only 10 workers
who were his own family members. Tuan Haji Remi started to create various types of
chocolate such as roast almond and hazelnut chocolate. After being operated in 7
years, this business has developed well and there is a lot of changes made towards the
products. The number of workers were increased from only 10 workers to 220
workers. The chocolate was reformulated to become more delightful in taste and there
is more flavour that has been created such as Oreo chocolate, Honeycomb and Nuts
chocolate and others. The design of the packaging has been upgraded with more
interesting appearance and the size of the chocolate has been changed into variable

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sizes where there is big and smaller size of the chocolate. Thus, the weight of the bar
was also reduced slightly.

The objectives of the company is to create chocolate that have unique ingredients.
Thus, improving the quality in their chocolate products and become one of the
chocolate company that is well known not only in Malaysia but also in the worldwide.
The vision of the company is to work together and create a brand that people love.
Moreover, as for the mission statement is to provide the customer with more tempting
and appetizing in taste. The company promised to make a continuous improvement
towards the product’s quality and give full satisfaction towards their customer in all
generation.

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1.1 Organizational Chart

NURUL IZZAH FAUZI

(Chief Executive Officer)

NURIZZAHTUL AMIRA
NORISHAM

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 (Secretary)

LINA KHALIDA NURDINA SUHADA NUR FARZANA

SHAMSUDIN MAT ASRIPIN MAZLAN

(Financial Manager) (Marketing Manager) (Accountant)

FARAH NABILA
ZULQARNAIN

(Investor)

2.0 PRODUCT AND SERVICES

No. Product Details

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1. Chocolate The chocolicious chocolate flavored contains
milks solid, sugar, cocoa mass, cocoa butter, non
hydrogenated vegetable fat (palm, shea lllipe).
This product is not advisable for milk, and
soybean allergen. The product calories are 55kcal
per serving and 528kcal per 100g. It was
available on market for 40g, 100g, 165g, doy bag
and neaps jar.

2. Fruit and Nut The chocolicious fruit and nut flavored contains
milks solid, sugar, raisins, cocoa mass, cocoa
butter, non hydrogenated vegetable fat (palm,
shea lllipe). This product is not advisable for fruit
and nut allergen. The product calories are 57kcal
per serving and 516kcal per 100g. It was
available on market for 40g, 100g, and 165g.

3. Roast Almond The chocolicious roast almond contains milks

solid, sugar, almond, cocoa mass, cocoa butter,
non hydrogenated vegetable fat (palm, shea
lllipe). It was not for milk, and almond allergen.
The product calories are 50kcal per serving and
548kcal per 100g. It was serve to market for 40g,
100g, 165g and share bags.

4. Oreo The chocolicious oreo contains milks chocolate,

sugar, almond, cocoa mass, cocoa butter, and
emulsifiers. The product is suitable for the person
who really love oreo. The product calories are
566kcal per serving and 147kcal per 100g. It was
serve to market for 40g, 60g and 130g.

5. Bubbly The chocolicious bubbly contains milks solid,

sugar, cocoa mass, cocoa butter, and emulsifiers.
The product is suitable for the person who really

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 like bubbly. The product calories are 534kcal per
saving and 53kcal per 100g. This product
available in market only 50g and 120g.

6. Hazelnut The chocolicious hazelnut contains milks solid,

sugar, hazelnut, cocoa mass, cocoa butter, non
hydrogenated vegetable fat. This product is not
advisable for hazelnut allergen. The calories
for this product is 61kcal per serving and 555kcal
per 100g. It was serve to market for 40g, 100g,
165g.

7. Black Forest The chocolicious black forest contains milks

chocolate, sugar, cocoa mass, cocoa butter,
emulsifiers and non hydrogenated vegetable fat.
This product is not advisable for black forest
allergen. This calories for this product is 56kcal
per serving, 505kcal per 100g. It was serve to
market for 40g, 100g, 165g.

8. Hazelnut Praline The chocolicious hazelnut praline contains milks

solid, sugar, cocoa mass, cocoa
butter,emulsifiers, hazelnut, non hydrogenated
vegetable fat, hazelnut pass and cocoa powder.
This calories for this product is 54kcal per
serving, 540kcal per 100g.

9. Chocolate Mousse This chocolicious chocolate flavored in chocolate

mousse contains milk solids, sugar, vegetable fat,
cocoa mass, cocoa powder, cocoa powder,
emulsifier, acidity regulator and some flavors.
It was not advisable for anyone that allergic to
milk and soybean to consume this product
flavors. The calories consume by this flavor is
49kcal per serving and 495kcal per 100g. It is

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 also available in 180g for sale on market.

10. French vanilla The French vanilla flavored contains milk solids,
sugar, vegetable fat, cocoa mass, cocoa butter,
emulsifiers, some flavors and salt. It is also
should be prevented by person that allergic
with milk and soybean. The products calories are
54kcal preserving and 544kcal per 100g. The
product is available in 180g for sale on market.

11. Honeycomb and nuts The flavor of this product contains with milk
solids, sugar, cocoa mass, cocoa butter, cashew
nuts, honeycomb, vegetable fat, hazelnuts,
emulsifiers and some flavor. This product is not
advisable for milk, wheat, nuts and soybean
allergen. It is also includes calories for 58kcal
per serving and 525kcal per 100g. It was
available in market for 45g and 165g for sale.

12. Marvellous creations jelly This product contains milk solids, sugar, cocoa
popping candy mass, cocoa butter, beanies, cocoa powder,
thickener, jellies, popping candy, vegetable fat,
emulsifiers, flavors and may more. The person
that allergic with milk, wheat and soybean should
not take this flavor to eat. It has 51kcal per
serving and 509kcal per 100g. This product is
available for 40g, 150g and 160g in the market.

13. Marvellous creations peanut This flavor contains milk chocolate, sugar, cocoa
toffee cookie mass, cocoa butter, vegetable fat, emulsifiers,
cookies, sugar, raising agents, roasted peanuts,
caramel toffee, butter fat, salt and more. This
flavor is not advisable for milk, wheat, nuts and
soybean allergen. The calories are 53kcal per
serving and 527kacl per 100g. It was available
on market for 40g, 150g and 160g.

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 3.0 OBJECTIVES OF THE REPORT

i. To analyse the company's performance in 2019.

ii. To compare the company's performance with the industry's performance.

iii. To investigate the issues that happened in the company.

iv. To solve the problems that occur in the company.

3.1 STATEMENT OF FINANCIAL POSITION PERFORMANCE

Below are the financial statements of Chocolicious Enterprise for the financial year
2018.

Chocolicious Enterprise
Balance Sheet as at December 31,
2018 (RM’000)
Cas
h 500 Accounts payable 500
1,20
Accounts receivable 0 Notes payable 800
Inventory 700 Accruals 100
Marketable securities 300 Long term debt 2,500
3,80
Plant and equipment 0 Debentures 1,000
Land and 2,68
buildings 0 Common stock 2,000
Less: Accumulated
depreciation 480 Retained earnings 1,800

TOTAL 8,70
ASSETS 0 TOTAL CLAIMS 8,700

Chocolicious Enterprise
Income statement for the year ended December 31,2018
RM
Sales 8,000,000
Less: Cost of goods
sold 6,200,000

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 Gross Profit 1,800,000
Less: Operating expenses 1,000,000
Earnings before interest and
taxes 800,000
Less: Interest expense 280,000
Earnings before taxes 520,000
Less: Taxes (40%) 208,000
Net Income 312,000
3.2 Financial Analysis

3.2.1 Liquidity Ratio

No Ratio Company’s Industry Comment

Ratio Ratio
1. Current Ratio (CR) The company’s curr
ratio is better t
Total Current Asset industry because
=
Total Current Liability 1.93 times 1.80 times company does not h
difficulty in pay
2,700,000 current liability.
= 1,400,000

2. Quick Ratio(QR) The company’s qu

ratio is better t
TCA – (Inventories+ Prepaid Expenses ) industry because
= Total Current Liability company can make sh
1.43 times 1.25 times term obligation with
2,700,000 – (700,000+0) relying on inventory
= 1,400,000
prepaid expenses.

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 3.2.2 Activity Ratio

No Ratio Company’s Industry Comment

Ratio Ratio

1. Fixed Assets Turnover (FATO) The company’s fixed

assets turnover is worse
Sales than industry because
= Net ¿
assets ¿
the company is having
1.33 times 1.60 times
difficulty in generate
8,000,000 sales by net fixed assets.
= 6,000,000

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2. Average Collection Period The company’s average
collection period is
Account Receivable worse than industry
= Sales
x 360
because the company is
54 days 45 days
having difficulty in
1,200,000 collecting debts.
= 8,000,000
x 360

3.2.3 Leverage Ratio

No Ratio Company’s Industry Comment

Ratio Ratio

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1. Debt Ratio (DR) The company’s debt
ratio is worse than the
Total Debt industry’s since the
= Total Assets
x 100 company has high risk of
56.32% 50%
bankruptcy.
4,900,000
= 8,700,000
x 100

2. Times Interest Earned (TIE) The company’s times

interest earned is worse
EBIT than the industry’s
= 2.86 times 3.00 times
Interest because the company is
having difficulty in
paying interest payment.
800,000
=
280,000

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 3.2.4 Profitability Ratio

No Ratio Company’s Industry Comment

Ratio Ratio
1. Return on Assets (ROA) The company’s return on
assets is worse than the
Net Income industry’s because the
= Total Assets
x 100
3.59% 8.50% company is only able to
obtain 0.0359 cent from
RM1 on their total
312,000 assets.
= 8,700,000
x 100

2. Net Profit Margin (NPM) The company’s net profit

margin is better than the
Net Profit industry’s since the
= Sales
x 100
3.90% 3.00% company has lower
operating cost and higher
312,000
= 8,000,000
x 100 sales.

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 4.0 CURRENT ISSUES

Ratio Crisis Suggestions

4.1 Fixed assets Over investing in the property Sell assets

turnover
The company make credit purchase on Sell any unused fixed assets that
machinery and others company does not improve the bottom line
equipment. This resulting to outflow on regular basis. The company
of money and increase the company has to lease equipment to make
expenditure on fixed assets. up for the sold assets.

4.2 Average Looser credit policy Notice

collection period
The company granted more credit to The company try to remind
customers in order to increase sales. debtor by using notice or follow
Certain customers are given longer up. This to ensure that they pay
period of times to pay their debt. the remaining invoice amount.

Reduced collection efforts Court procedure

There is an increase in the staff This process related to the

turnover of the department and the customers that refuse to pay the
company has less attention in paid to debt. After make a police report
collections, resulting in increasing the the company has right to bring
amount receivables outstanding. the cases to court.

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4.3 Debt ratio More debt than assets Looking for funds

The company debt causing to increase The company must take loan
in financial risk. This resulting to the immediately to settle the
investor refuse to invest money inside company debts before the
the company. company going to bankruptcy.

4.4 Time Making loans Reduce on making loans

interest earned
The company making loans every year Chocolicious company must
to pay the debt and to increase reduce to making loans every
working capital. The money of the year to avoid the payments of
loans of Chocolicious company are debt become increasing and can
used to manage the company day-to- make the company ratio better.
day operations. And this is the causes
of the company times interest earn
become poor.

4.5 Return on Machinery problems Give focus on work

assets
Because of the broken machinery in The workers in factory must
Chocolicious company, the process of focus on any problems in the
packaging had problems and arise the factory and the workers must do
controversy of worms in chocolate a check up of the machinery
bars. The issues make ROA of system every day to avoid the
company become poor. negative cases.

4.6 Net profit The porcine DNA issues Give the halal certificates
margin prove.
The net profit margin poor because of
the issues porcine DNA and that issues Chocolicious company must give
make sales of company decrease. the prove of halal certificates to
Other than that, about the rumours that the people and also do the media
our company not have the halal conference to clean this thing
certificates. This is also make our and make company names clear
company profit decreasing. with the negative comments.

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 5.0 CONCLUSION

Chocolicious Enterprise is one of the Malaysia’s largest chocolate company with

its mission to give happiness to their customer in all generation. It has launched many
products in Malaysia that makes them well-known in the country and become one of
the market leader. Providing and creating products that meet the customer’s
satisfaction is a never-ending challenge that Chocolicious Enterprise continually
faces. This is due to the uniqueness of the company’s competitors in producing their
own products and it is a fact that every person has their own preferences in choosing
the product that they desire. However, Chocolicious Enterprise will always upgraded
the formula in the chocolates that are more unique and delicious in taste. Thus, the
company will also improve the company’s performance and become one of best
chocolate company within a country and in worldwide.

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 6.0 REFERENCES

Mohd Sabri Hj. Mohd Amin (2019) Fundamentals of Finance, University

Technology Mara

Mondelez Malaysia (2018) Cadbury https://www.cadbury.com.my/

Will Kenton and Adam Hayes (2019) Debt Ratio Definition

https://www.investopedia.com/terms/d/debtratio.asp (20 April 2019)

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Johnston, Kevin (2019) Remedy for Low Asset Turnover
https://smallbusiness.chron.com/remedy-low-asset-turnover-36410.html

(30 November 2019)

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