Nature/ Background of Dutch Lady Milk Industries Berhad Dutch Lady Milk Industries Berhad ("Dutch Lady Malaysia") is a branded manufacturer of dairy products in Malaysia. It was incorporated in 1963 as a manufacturer of sweetened condensed milk called Pacific Milk Industries (Malaya) Sdn Bhd. Dutch Lady Berhad then converted into a public company and became the first milk company in Malaysia listed on the Bursa Malaysia in 1968. Dutch Lady Berhad is a subsidiary company of the Royal FrieslandCampina in Netherlands, one of the world’s largest dairy companies. The second largest shareholder of the company is Permodalan Nasional Berhad. Dutch Lady Berhad obtains benefits from its holding company by obtaining global procurement services and …show more content…
There are four Non-executive Directors whose remuneration falls in the range of RM50,001-RM100,000 while there are two Executive Directors whose remuneration falls in the range of above RM500,000. (ii) The other key management personnel receive a total of RM4,138,000 short-term employee benefits and total contributions of RM165,000 Employee Pension Fund. (d) The Company’s risk and control framework is based on the COSCO Internal Control Framework. During year 2012, the Company completed the implementation of the new Group’s Internal Control Framework. (i) The Company defines credit risk as the risk of financial loss to the Company if a debtor fails to meet settle its accounts. To diminish the risk of financial loss from defaults, the Company has adopted a policy of only dealing with creditworthy customers based on careful evaluations of customers’ financial condition and credit history. To limit high credit concentration in a single customer, the Company also deals with a large number of customers. 3 (ii) The Company classifies liquidity risk as the risk of failing to meet financial obligations. The Company’s management team maintains a deemed adequate level of cash and cash equivalents to meet payables when they fall due. (iii) The Company recognizes market risk as the fluctuations in market prices. The Company’s market risk can be categorized into currency risk, interest rate risk and other prices that will affect the Company’s financial position.
Liquidity Risk: The liquidity risk of Telstra can be analysed from the help of these two ratios
Speaker's notes: Risk is an everyday part of financial life. There are few decisions we can make which do not come with some degree of risk. However, it is important to understand and distinguish between different types of risks so we can better 'hedge' against potential unforeseen events and minimize our institution's exposure to financial dangers.
Identify the potential risks which affect the company and manage these risks within its risk appetite;
Liquidity ratios are the measure of a company’s ability to meet its short term liabilities by converting its assets into cash without losing value. The results of the liquidity ratios depend on the outcome of Current ratio and quick ratio. In the appendix-I, in 2011 Target had better Current ratio
Risk is defined as the probability that a company will become insolvent and will not be able to meet its obligations when they become due for payment. The profitability versus
Liquidity is a financial term used to determine the ability of a company to pay off its short-term debts, which will be due within the next year or in an operating cycle. In another word, liquidity is a very important indicator to evaluate a company’s financial health. Liquidity ratio shows a comparison between the most liquid assets and short-term obligations of a company. A higher liquidity expresses that the company has not only a better ability to pay off its short-term debts but also a greater amount of cash for an unexpected needs. In another word, when a company has a low liquidity, the company may face a risk to pay its short-term debt and struggle to fund its long-term operation. The current ratio is one of the most common and useful terms used to measure the liquidity of a company. It suggests the capability of a company to pay back its liabilities with its assets. The current ratio is computed by dividing current assets by current liabilities. According to a financial
One determinant of a company’s debt capacity is the liquidity of its assets. An asset is liquid if it can be readily converted to cash, while a liability is liquid if it must be repaid in the near future. Liquidity is the company’s working capital, current ration and acid-test ration. The components of Liquidity are Working Capital, Current Ratio and Acid Test Ratio.
2) The amount and nature of the company’s liabilities, including the degree of reliance on short-term funding.
Business risk refers to the chance a business's cash flows are not enough to cover its operating expenses like cost of goods sold, rent and wages. Unlike financial risk, business risk is independent of the amount of debt a business owes (Guzman & Media, 2015). Financial risk refers to the chance a business's cash flows are not enough to pay creditors and fulfill other financial responsibilities (Guzman & Media, 2015). Financial risk is the additional business risk concentrated on common stockholders when financial leverage is used and depends on the amount of debt and preferred stock financing (Brigham & Ehrhardt, 2014).
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.
Liquidity represents a company’s ability to pay its short-term obligations. In the following schedule is the calculation of the ratios that are indicators of the liquidity position of a company.
Liquidity ratios measure the ability of a firm to meet its short-term obligations. A company that is not able
Liquidity is an important factor in financial statement analysis since an entity that can not meet its short term obligations may be forced into liquidation. The focus of this aspect of analysis is on working capital, or some computer of working capital.
The liquidity position of a company can be evaluated using several ratios which evaluate short-term assets and liabilities and a firm’s ability to settle short-term debts (Gibson, 2011). These ratios can provide insight into a firm’s ability to repay its debts in the short term (Gibson, 2011). In turn they suggest a firm’s capacity for debt-satisfying capabilities into the future (Gibson, 2011). This paper will use financial statement data as cited in Gibson (2011) from 3M Company (3M) to better understand liquidity measures to evaluate a firm’s total liquidity position. The following paper will focus on various liquidity calculations, their meaning, and their interpretation relative to 3M. Finally, an overall view of 3M’s liquidity
In 1950, Dutch Lady Industries is a manufacturer of dairy products in Malaysia. Previously, Dutch Lady Malaysia was under Royal Friesland Foods, it is a Netherlands-based multinational cooperative that dates back to 1879. Dutch Lady Malaysia is currently a subsidiary of Friesland Campina, which was formed in December 2008 as a result of the merger between Friesland Foods and Campina. In 1960, Dutch Lady Malaysia build a manufacturer of sweetened condensed milk themselves located in Petaling Jaya. After 50 years, they are still operating from the same production plant in Petaling Jaya and only they have enlarge their range of quality and delicious dairy products. Moreover, their products including Dutch Lady PUREFARM