Gez Berhad

In: Business and Management

Submitted By dhya
Words 4155
Pages 17
TABLE OF CONTENTS
1.0 Introduction 1
2.0 Main Issues ….3
3.0 Analysis of Revenue, Fixed Costs, Variable Costs and Income Statement before adjusted 5

3.1 Revenue 5

3.2 Fixed Costs 6

3.3 Variable Costs 7

3.4 Income Statement 9
4.0 Case Questions and Answers 11

4.1 How lucrative is the petrol station business? 11

4.2 Since the margin on fuel business is very low (6%) compared to convenience store (20%), do you agree that the convenience store subsidizing the fuel business?.........................................................................................................13

4.3 If the government raised the RON95 price to RM2.10, do you anticipate the profitability of the business will be eroded? 15

4.4 If a credit card sale is reduced from 40% to 20%, what is the effect on overall profitability? ……16 4.5 What is the appropriate basis to allocate the cashier cost between the four products RON95, RON97, Diesel and SelesaMart................................................22.

4.6 Is utility cost fixed or variable? What difference does it make to the breakeven point of RON95 if it is classified as (i) fixed cost, and (ii) variable cost? 23
5.0 Conclusion 25

1. INTRODUCTION

GEZ Bhd which is a major oil company in Malaysia has been developed and operated the petrol stations under three basic concepts, which are namely Company Owned Station (COS), Partially Company Owned Station (PCOS) and Dealer Built Station (DBS). Basically, the operators of PCOS and COS were landowners themselves or those who are being nominated and agreed by GEZ. However, under the Dealer Built Station (DBS) concept, the operators were not the landowners.

GEZ petrol station conducted two main businesses which are the fuel business and the convenience store business. The fuel business sold three types of fuel…...

Similar Documents

Flat Cargo Berhad

...1.0 Case Summary Flat Cargo Berhad (“FCB”) was one of the largest air freight companies in Malaysia. FCB was registered as an investment holding company with several subsidiaries and the principal activities included air freight services and aircraft ground handling services. FCB’s wholly-owned subsidiaries included FC Spare Sdn Bhd, Cargo Management Sdn Bhd, FCB (SPV), Cargo Air Services Sdn Bhd and FC Air Ltd. FCB started operations in 1997 and had been an overnight air express transport service for Freight Malaysia Berhad to Singapore. Flat Cargo Group obtained listing in Bursa Malaysia on 15 September 2001. Between years 2001 to 2004, FCB’s expanded due to the fast growing intra-Asian air express market. With an array of landing rights in the Asia Pacific region, FCB was in the idea niche position to offer express air services to international integrators, freight forwarders and major airlines within the Asian region. It managed to secure major landing rights in various countries in Asia including China, Japan, Thailand, Singapore, India, Indonesia, Taiwan, Sri Lanka, Philippines, Korea, Myanmar and Cambodia. Up to 2005, FCB secured agreements with well-established companies such as Worldwide Express, United Parcel Services (UPS), Nationwide Express, Citylink, Bax Global and Nippon Express. The composition of the Board of Directors was in adherence to the Malaysian Code of Corporate Governance. The chairman of FCB was Dato’ Ibrahim Samad who was also an......

Words: 1795 - Pages: 8

Case Gez Petrol

...GEZ PETROL STATION: USING COST-VOLUME-PROFIT ANALYSIS FOR PLANNING By KU NOR IZAH KU ISMAIL (Corresponding author) School of Accountancy UUM College of Business Universiti Utara Malaysia E-mail: norizah@uum.edu.my Tel: 04-9283906 And WAN NORDIN WAN HUSSIN Othman Yeop Abdullah Graduate School of Business Universiti Utara Malaysia GEZ PETROL STATION: USING COST-VOLUME-PROFIT ANALYSIS FOR PLANNING INTRODUCTION As an Area Manager of GEZ Bhd, a major oil company in Malaysia, in 2010, Mr Aiman was responsible for directing the sales activities of more than twenty petrol stations in the northern region of Malaysia. He was also responsible to train petrol station dealers and staff, initiate sales promotion and implement key initiatives to improve sales. Despite being a stable business with continuous increase in vehicles, often times, petrol station operators faced with the difficulty of sustaining the business, leading to the termination of the dealership license. The lack of knowledge in finance and costing, among others, contributed to business failures. Realising the importance of management accounting concepts and tools such as cost allocation and CVP analysis, Mr Aiman believed that the dealers and their relevant staff should have the knowledge in cost accounting. They should be able to differentiate between variable and fixed expenses, prepare a financial statement and perform a cost-volume-profit (CVP) analysis. To help the dealers perform the CVP......

Words: 1426 - Pages: 6

Flat Cargo Berhad

...Flat Cargo Berhad: An Auditor’s Conundrum Flat Cargo Berhad (FCB) a well-known and one of the largest air freight companies in Malaysia that operate as air cargo carrier. FCB also registered as an investment holding company with several subsidiaries that operate with the same operating principal of the FCB. Their primary operating principal was to provide air freight transportation which includes air charter and leasing. Started their operation in 1997 and became the only dedicated Intra-Asian overnight express cargo based in Malaysia. The company also had access to an international cargo complex at the Sultan Abdul Aziz Shah Airport in Subang. FCB also have secured agreement with well-established companies. FCB had appointed Kenchana & Associates as their external auditor. In 2006 audit team from Kenchana & Associates found several suspicious finding in finalizing their report. It is also said that FCB can remained as the nation’s leading cargo carrier if not because of the scandal. Mr Chuah Mun Soong, head of the audit team from Kenchana & Associate, is the decision maker or protagonist in this case. Been informed by his subordinate, he show some dissatisfaction towards the FCB due to the scandal. He needs to present the financial report to the audit committee of FCB in two weeks. However, the inconsistencies in the account make him feel restless. Dilemma face by Mr Chuah is that the FCB also might be high possibility involved in fraud. Mr Chuah state that......

Words: 382 - Pages: 2

Padini Berhad

...PADINI HOLDING BERHAD 1.0 COMPANY PROFILE 1.1 Background of the company Padini is a Malaysian-domiciled investment-holding company headquartered in HicomGlenmarie Industrial Park, Shah Alam. Incorporated in 1971 as proprietorship under the trade name Hwayo Garments Manufacturers Company, Padini was initially engaged in the manufacture and wholesale of ladies wear. The company subsequently added men’s and children’s lines to its offerings when it established its first three brands from 1975 – 1987. In 1988, Padini discarded its role as wholesaler to take up the role of consignor. Thereafter, the first single-brand store distributing Seed was opened in 1992 in Sungei Wang Plaza, Kuala Lumpur. The company has nine labels in its family of brands and retail in 330 freestanding stores, franchised outlets and consignment counters in Malaysia and around the world. The company’s subsidiaries include Vincci Ladies’ Specialties Centre Sdn. Bhd., which is engaged in dealing of ladies’ shoes and accessories; Padini Corporation Sdn Bhd., Seed Corporation Sdn. Bhd., Yee Fong Hung (Malaysia) SendirianBerhad (Yee Fong Hung) and Padini International Limited, which is engaged in dealing of garments and ancillary products; Padini Dot Com Sdn. Bhd. (Padini Dot Com), which is engaged in provision of management services, and Mikihouse Children’s Wear Sdn. Bhd. (Mikihouse), which is engaged in dealing of children’s garments, maternity wear and accessories. Tizio was introduced to the public......

Words: 4484 - Pages: 18

Flat Cargo Berhad

...COMPANY BACKGROUND Flat Cargo Berhad (FCB) was established in 1997 as the mean of providing air freight services to the Intra-Asia air market. FCB’s services were not only limited to air freight and aircraft ground handling but also included aircraft charter and leasing. FCB was chaired by Dato’ Ibrahim Samad, a former Director General for the Ministry of Transportation and former President of Malaysian Chamber of Commerce. He was the company’s Independent Non-Executive Director (INED). The top management team consisted of Mr Lim Loon Sim as the Chief Executive Officer, Mr Ali Bin Ahmad as the Executive Director and Mr Kim Boon Chok as the Chief Financial Officer. Mr Ali Bin Ahmad also held the position of FCB’s Audit Committee Chairman besides being a member of Employee’s Share Option Scheme FCB Wholly Owned Subsidiaries Cargo management Sdn Bhd Fc Spare Sdn Bhd FCB Wholly Owned Subsidiaries FC Air Ltd FCB (SPV) Ltd Cargo Air Service Sdn Bhd FCB secured agreements with well-established companies Up to 2005 Bax Global United Parcel Service (UPS) Express Worldwide Nippon Express CityLink Nationwide Express Top Management Team Dato’ Ibrahim Samad • Chairman • Independent non-executive director • Former of Directors General for Ministry of Transportation • As a Malaysia chamber of commerce’s former president Mr Lim Loon Sim • Chief Executive Officer (CEO) • Founder for FCB • Board member since 1997 •......

Words: 297 - Pages: 2

Flat Cargo Berhad

...I. Executive Summary Flat Cargo Berhad (FCB) is a listed company that provides air cargo carrying services within the Asian region. The company owns five fully owned subsidiaries and the major shareholders of this company is Bangor Berhad. The company’s external auditor is Kencana & Associates where the audit team is led by Mr Chuah Mun Soong. On 5th February 2006, Mr Chuah has been informed by his team that there are some inconsistencies in the accounts of FCB. Therefore he has decided to do his own investigation on the company to determine is there any fraud involved before he can report the situation the managing partner of Kencana & Associates, Mr Keong Chee Wah. II. Statement of the Problem One of the issues faced by the company is the inconsistencies in the company’s accounts where they were unable to verify the aircraft that they claim have purchased in the year 2005. The auditor also found a non-functional aircraft in the hangar that does not worth much. It can be said the cause of this problem would the weakness in assets management or internal control system as well as the weakness in the accounting department where the management of the company is able to make false claims. The second issue faced is poor debt management where a lot of debt confirmation letters that were sent was returned due to the changes in debtors addresses. This can be only explained by the company’s weakness in keeping proper records of their debtors as well as their ability...

Words: 1016 - Pages: 5

Proton Holding Berhad

... CONTENT NO. | PARTICULAR | PAGE | 1 | BACKGROUND OF PROTON | 2 | 2 | PORTER’S FIVE FORCES MODEL | 5 | 3 | SWOT ANALYSIS | 10 | 4 | TOWS MATRIX | 13 | BACKGROUND OF PROTON Figure 1 Global PROTON Logo Perusahan Otomobil National Berhad (PROTON) was incorporated in May 7, 1983 to manufacture, assemble and sell motor vehicles and related products, including accessories, spare parts and other components. PROTON produced Malaysia’s first car, the Proton Saga, commercially launched on July 9, 1985 by then Malaysian Prime Minister, Dato’ Seri Mahathir Mohamed, who had originally conceived the idea of a Malaysian car. PROTON’s main plant in Shah Alam, with an area of 923 900 sq. meters, was originally designed for a capacity of 80 000 units per year. In 1997, capacity increased to 230 000 units per year with the construction of the Medium Volume Factory, which is next to the Main Plant. Today, the Shah Alam factory is capable of producing 240 000 vehicles per year. Besides being shareholders, Mitsubishi Corporation and Mitsubishi Motors Corporation are also PROTON’s technical assistance partner and component supplier. PROTON has a total of 11 subsidiaries and 11 associate companies, which are involved in manufacturing, research and development, sales and service activities. In December 30, 1996, marked the launch of the Proton Putra, a two-door coupe, as well the production of our millionth car from the Shah Alam plant. PROTON made a major step in upgrading its......

Words: 3018 - Pages: 13

Gez Pterol Station

...GEZ PETROL STATION: USING COST-VOLUME-PROFIT ANALYSIS FOR PLANNING By KU NOR IZAH KU ISMAIL (Corresponding author) School of Accountancy UUM College of Business Universiti Utara Malaysia E-mail: norizah@uum.edu.my Tel: 04-9283906 And WAN NORDIN WAN HUSSIN Othman Yeop Abdullah Graduate School of Business Universiti Utara Malaysia GEZ PETROL STATION: USING COST-VOLUME-PROFIT ANALYSIS FOR PLANNING INTRODUCTION As an Area Manager of GEZ Berhad, a major oil company in Malaysia, in 2011, Mr Aiman was responsible for directing the sales activities of more than twenty petrol stations in the northern region of Malaysia. He was also responsible to train petrol station dealers and staff, initiate sales promotion and implement key initiatives to improve sales. Despite being a stable business with continuous increase in vehicles, often times, petrol station operators faced with the difficulty of sustaining the business, leading to the termination of the dealership license. The lack of knowledge in finance and costing, among others, contributed to business failures. Realising the importance of management accounting concepts and tools such as cost allocation and CVP analysis, Mr Aiman believed that the dealers and their relevant staff should have the knowledge in cost accounting. They should be able to differentiate between variable and fixed expenses, prepare a financial statement and perform a cost-volume-profit (CVP) analysis. To help the dealers perform the CVP...

Words: 2166 - Pages: 9

Flat Cargo Berhad

...Overview This case is about the dilemma of an auditor, Mr. Chuah Mun Soong who has found suspicious issues that may lead to fraud upon auditing Flat Cargo Berhad (FCB). He was supposed to report to the audit committee of FCB regarding the audit outcomes. However, Mr. Chuah needed to inform the managing partner of his firm with regards to the findings on the inconsistencies of accounts in FCB. Company Background FCB Cargo Berhad (FCB) was established in 1997 operating primarily as an air cargo carrier. FCB providing freight services to the intra-Asia air market. Its services were not only limited to air freight transportation but also included aircraft charter and leasing. FCB was chaired by Dato’ Ibrahim Samad, a former Director General for the Ministry of Transportation and former President of Malaysia Chamber of Commerce. He was the company’s independent Non-Executive Director. The senior management team consist of Mr. Lim Loon Sim as the Chief Executive Officer, Mr. Ali Bin Ahmad as the Executive Director and Mr. Kim Boon Chok as the Chief Financial Officer. Mr. Ali Bin Ahmad also held the position of FCB’s Audit Committee Chairman. In terms of financial growth, FCB demonstrate a tremendous revenue growth from year 2001 to 2005. It is also recorded a 1.5 times increase in revenue amounting to RM550 million in 2005 compared to 2004 and was projected to increase further by 54% to RM809 million in the following year due to its major capacity expansion in 2005. The......

Words: 2610 - Pages: 11

Q & a Gez Petrol

...There was enthusiastic discussion amongst the attendees and below is a just an extract from some of the technical questions & answers on the day: Does GEZ take image copies as sources for copies? Not currently. As GEZ writes the backups on tape the copy time would take too long. BCV5 is able to use image copies as source data, and as Gerd Hettling from UBS-Hainer explained, it then automatically determines the last written full copies. There is also a function to synchronize full or incremental copies with the aid of the DB2 log. This function is particularly of interest for all those who work in pure 24×7 environments and can not stop the source to gain a clean copy. What about the renaming of objects? Yes, this is important and is possible with BCV5. There are panels to specify renaming rules of the target objects. After a fast copy the RUNSTATS utility may need extensive time to execute. Is there a way to copy the RUNSTATS information as well? Yes, this function can also be used ‘stand-alone’, i.e. without a preceding copy of objects one can copy ‘runstats’ from a source to a different target system and target renames will be applied. How does BCV5 treat views and indexes? Views, triggers, and with some limitations procedures can be copied. Indexes can be copied or automatically recreated at the target system – the latter is particularly helpful for indexes which occur only on the target side. We heard about significant lowering of the copy time but what...

Words: 288 - Pages: 2

Proton Holdings Berhad (Proton)

...Brochure More information from http://www.researchandmarkets.com/reports/1935953/ Proton Holdings Berhad (PROTON) - Financial and Strategic SWOT Analysis Review Description: Proton Holdings Berhad (PROTON) - Financial and Strategic SWOT Analysis Review Summary Proton Holdings Berhad ( Proton) is a Malaysian-based company engaged in vehicle engineering, research and development, manufacturing, distribution, sales and after-sales services of motor vehicles. The company also engages in the manufacture of automotive components, provides engineering consultancy services related to motor vehicles, and property development. The portfolio of Proton models includes the Saga, the Persona, Waja, Gen.2, Savvy, the Exora ( multipurpose vehicle), Satria Neo and Perdana. It also includes cars like Lotus sports car brand, with models such as Elise, Exige, Europa and the Evora, The company carries out its operations through its subsidiaries and exports its motor vehicles and accessories to more than 50 countries globally. Proton is headquartered at Subang Jaya, Malaysia. This comprehensive SWOT profile of Proton Holdings Berhad provides you an in-depth strategic SWOT analysis of the company’s businesses and operations. The profile has been compiled by GlobalData to bring to you a clear and an unbiased view of the company’s key strengths and weaknesses and the potential opportunities and threats. The profile helps you formulate strategies that augment your business......

Words: 1283 - Pages: 6

Analysis Bonia Berhad

...Introduction Bonia Corporation Berhad was established in 1974 and listed on the Main Market of Bursa Malaysia. The company operates in segments of manufacturing, marketing, and retailing of fashionable apparels, footwear, accessories and leather goods. Bonia Group has a network of over 700 sales outlets and 70 boutiques all over the world that include countries like Singapore, Malaysia, Japan, Taiwan, China, Thailand, Myanmar, Vietnam, Indonesia, Brunei, Philippines, Kingdom of Saudi Arabia, Syria and Oman. Successful brands such as SEMBONIA and CARLO RINO was under leading label of BONIA. There are 3 share valuation methods we used to calculate the values of the company per shares, which are I. Net Assets Method of share valuation Net asset value is a method that based on the firm’s assets. Intangible assets which including goodwill should be excluded as the intangible assets include the brand name of the company which is indefinite assets. Unless there are definite assets like patents and copyrights which has limited life, then it can be include in when using this method to calculate the values of company per share as the assets can be sold. The data use to perform the valuation are also easily available as it is based on the firm, firms that have heavy tangible investments. Year | 2006 | 2007 | 2008 | 2009 | 2010 |   | RM'000 | RM'000 | RM'000 | RM'000 | RM'000 | Non-current assets |   | 79,886 |   | 66,240 | | 74,546 |   | 88,563 | | 81,042 | Current......

Words: 2103 - Pages: 9

Flat Cargo Berhad

...Issues………………………………………………………………………………………………2 The Discovery of Fraud……………………………………………………………………..…..3-4 Corporate Governance of FCB……………………………………………………………………5 Auditor Dilemma……………………………………………………………………….……….5-7 Using the Fraud Triangle Model to analyze the situation in Flat Cargo Berhad……………..…8-9 Who is responsible in the fraud of Flat Cargo Berhad ……………………………………..…10-11 Prevention Measures for Fraud ……………………………………………………………….12-13 Detection Measures for Fraud…………………………………………………………...……14-15 Recommendation…………………………………………………………………….……….16-17 Conclusion…………………………………………………………………………...……….18-19 References………………………………………………………………………………………..19 Introduction The case is related to one company known as Flat Cargo Berhad (FCB), FCB was one of the largest air freight companies in Malaysia which servicing several government linked companies including Freight Malaysia Berhad. FCB is a listed company and was registered as an investment holding company with several subsidiaries. Among its subsidiaries are FC Spare Sdn Bhd, Cargo Management Sdn Bhd, FCB (SPV) Ltd, Cargo Air Services Sdn Bhd and FC Air Ltd. FCB started its operations in 1997 with two aircrafts: a Boeing 737-200F and a Cessna Grand Caravan. FCB’s major shareholder in 1997 had been Bangor Berhad, which was part of a diversified international family owned conglomerate, the Miri Group. On September 2001 the company was listed in Bursa Malaysia. The main core business was to provide air freight transportation within......

Words: 5971 - Pages: 24

Flat Cargo Berhad

...collect all those revenues which will indirectly recognize as fictitious revenue. Supporting documents are important for every transaction. Thus, the auditor needs to trace all sales journal entries to supporting documents. It is including duplicate sales invoice, bill of lading, sales order as well Summary * This case attempts to bring out the whole accounting fraud issue at Flat Cargo Berhad (FCB) from an auditor’s perspective. * It creates an atmosphere of suspense and tension by portraying the dilemma of an auditor when he found out that there may be a fraud in FCB, his client, during a routine financial audit. * In fact, this company engaged in shady business practices and relied on manipulation of accounting numbers to inflate the revenue figure in order to paint a prosperous picture of financial conditions. The auditor was only able to reveal the dark secrets after years. * This case provides a penetrating view of the accounting fraud at FCB and other related issues that aggravated the whole chaos. The main issues can be found from the case of Flat Cargo Berhad (FCB) are as follows:- 1. Accounting Fraud : FRAUD TRIANGLE MODEL PRESSURE * To sustain as industry leader in Malaysia air cargo carrier and maintain reputation of FCB under the international crisis of increase in oil prices. * Highly competitive industry : 85 operators in Malaysia ---- Major players : MAS Cargo * Unstable economy: Increasing oil prices up until US$80 ---......

Words: 996 - Pages: 4

Power Root Berhad

...43.54, 54.86% and 0%. This is because Dutch Lady did not have long-term debt in these three years based on its balance sheet and this might reduce its financial risk. Interest Coverage Interest coverage ratio indicates the capability of the entity to meet its interest payment on outstanding debt. Generally, EBIT should be approximately 3-4 times the interest expense (Carlon et al, 2009, p.674). The graph shows a calculation of both companies, Nestle indicate had good performance and ability to cover the interest expense and this might be the consequence of no long-term borrowing. Indicates were 32.64, 33.49 and 28.16. On the other 14 hand, Dutch Lady has a great ability to cover the interests, with 56.83, 55.55 in 2012 and Nestle(M)Berhad comparative Income Statement for Years Ended 2013. Unfortunately, for year 2014 solvency ratio not provided. 3.5 Horizontal analysis Horizontal Analysis is to evaluate and compare the historical financial information over a period of time. The purpose of this technique is to determine company's financial performance as well as a comparison with other entities in the same industry (Carlon et al, 2009, p.661). The table below shows, on the aspect of Nestle income statement, there was an obvious upward trend of revenue, which increased 5.54% from 2012 to 2014. Nestle has general stable growth on sales and profit during las years, but growth was not as large as Dutch Lady in years 2012 to 2014. Comparing to Dutch Lady has 13.38% growth......

Words: 5762 - Pages: 24

Cooking (30) | Mowgli : La Légende de la jungle | Oro Jackson Sub