Professional Master in Business Administration

Corporate Finance

Student Name : Sheela a/p Krishnan

NRIC No : 800925-10-5732

LECTURER NAME : MR. PUGUAN SINGH

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 TABLE OF CONTENTS

1. Assignment Question 3

2. Introduction 4

3. Assignment Content 5-9

4. Summary 10

5. Conclusion 11

6. Reference 12

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 ASSIGNMENT QUESTION

Corporate Finance departments are charged with governing and overseeing their firms’ financial
activities and capital investment decisions. Additionally, the finance department manages current
assets, current liabilities, and inventory control. Explain the importance of corporate finance in your
company or a multinational organization.

Jabatan Kewangan Korporat bertanggungjawab untuk mentadbir dan menyelia aktiviti kewangan
firma mereka dan keputusan pelaburan modal. Selain itu, jabatan kewangan menguruskan aset
semasa, liabiliti semasa dan kawalan inventori. Terangkan apakah kepentingan kewangan
korporat dalam syarikat anda atau organisasi multinasional?

(Total: 45 Marks / Markah)

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 INTRODUCTION
Incorporated in 1988, Brightway Holdings produces a full range of natural and synthetic gloves and
markets globally for the medical, industrial and cleanroom applications. Brightway, which
commenced its manufacturing operations with 4 production lines in 1991 is located at Batu Belah,
Klang which is close to Port Klang. In addition, it has its 2nd Factory at Bestari Jaya (Batang
Berjuntai) and the 3rd Factory at Chemor, Perak. These three factories have a cumulative
production of 70 million gloves per month, mostly of the specially types with a support of 900
employees. Brightway is the group administrative, testing and research & development Centre. Our
strength is in our ability to meet customer specifications and provide a wide range of products in
line with quality requirements & market demands of our customers.
Dr G. Baskaran, our group's Managing Director leads a management team of 60 staff and a
combined workforce of 2200 employees. A culture of hardworking, loyal and enthusiastic staff has
collectively allowed us to grow sustainably over the years and consistently achieve greater heights.
Our growth and successes over the years is testament to the exceptional leadership of Dr G.
Baskaran and dedication of our loyal staff.
My name is Sheela d/o Krishnan. I am working as Senior Accounts Executive for almost 19 years
in Brightway Holdings Sdn Bhd. Working as Accounts Executive in Brightway Holdings Sdn Bhd
offers the chance to make a tangible impact, gain diverse financial experiences, collaborate with
multidisciplinary teams, continuously learn, and contribute to the growth and success of a vital
industry.
Besides that, by studying for Professional Master Business Administration qualification it will
enhance my knowledge and grow my experience for future career expectations in this Company.
Following are the benefits I gain in Brightway Holdings Sdn Bhd were Strategic Decision-Making,
Financial Analysis and Problem-Solving, Impact on Company Performance, Collaboration and
Interdisciplinary Exposure, Career Growth, Advancement Opportunities, and exposure to Financial
Markets and Industry Trends.
The term finance is related to money and money management. It is related to the inflow and
outflow of money. The success of Brightway Holdings Sdn Bhd depends upon the efficiency with
which it can generate and use funds. Corporate finance deals with the raising and using of finance
by a corporation. It deals with financing the activities of the corporation, capital structuring, and
making investment decisions for the company.

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  Decision-Making

Corporate finance supports strategic decision-making in Brightway Holdings Sdn Bhd. It helps in
evaluating potential investment opportunities, such as expanding into new markets, developing new
product lines, or acquiring other companies. Through financial analysis and modeling, corporate
finance provides insights into the financial feasibility, potential returns, and risks associated with
these strategic initiatives. This enables management to make informed decisions that align with the
company's growth objectives and long-term sustainability.
The decisions which make by the company will focus to achieve the target successfully. This is
mostly the case when the organization is discussing the availability of finance from different
sources. Whenever there is an investment in a new venture, the organization ought to figure out
whether the intended business will be viable. If not, then there’s no essence of investing in it. To
make important decisions such as the expected amount of revenue it would earn and the availability
of budget. Fortunately, now the organization can seek the services of an outsourced company.
reputable corporate finance advisory firm

 Reduces Cost

Corporate finance involves conducting cost analysis and developing budgets for various aspects of
the glove manufacturing process. By closely monitoring and analyzing costs, the company can
identify areas of inefficiency or excessive spending. This allows for targeted cost reduction efforts
and the development of strategies to optimize spending, such as renegotiating supplier contracts or
identifying more cost-effective raw materials.
With the tough economic times, it is the desire of Brightway Holdings Sdn Bhd to reduce their cost
as much as possible if they’re to maximize profits. This is exactly what corporate finances
management will help in achieving. Corporate finance helps in reducing the overall cost by
purchasing software to reduce paperwork, getting raw materials in bulk, or even investing in
current AI machineries. Besides that, with help from corporate financial advisors, company will
find it easy in determining innovative methods and ideas that reduce operation, administration,
manufacturing, and other costs significantly.

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  Highlight The Importance Of Corporate Functions.

The company’s capital structure is crucial in maximizing the value of its business. Its structure can
be a combination of long-term and short-term debt or common and preferred equity. The ratio
between a firm’s liability and its equity is often the basis for determining how well-balanced or
risky capital financing.
Corporate functions such as strategic planning and business development are responsible for setting
the long-term goals, objectives, and direction of the company. They conduct market analysis,
identify growth opportunities, and develop strategies to penetrate new markets and expand the
business. These functions ensure that the company is well-positioned to respond to industry trends,
customer demands, and competitive pressures.
The finance function is responsible for managing the financial health of Brightway Holdings Sdn
Bhd. They handle budgeting, financial analysis, forecasting, and reporting. These functions provide
critical financial information to support decision-making, assess profitability, manage cash flow,
and optimize resource allocation. They ensure financial transparency, compliance with accounting
standards, and help the company achieve its financial objectives.

If Brightway Holdings Sdn Bhd is heavily funded by debts which were more aggressive
capital structure and therefore, potentially holds more risk for stakeholders, however this risk is
often the primary. reason for the company’s growth and success.

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  Financial Decision

Brightway Holdings Sdn Bhd often require significant capital investments to establish and expand
manufacturing facilities, purchase advanced machinery, and invest in research and development.
Financial decisions regarding capital investment determine the allocation of funds to these areas,
which directly impact the company's production capacity, technological capabilities, and
competitiveness in the market.
Effective financial decision-making is crucial in managing costs within the company. This includes
decisions related to procurement, production processes, labor management, and overhead expenses.
By carefully analyzing costs and implementing cost-control measures, Brightway Holdings Sdn
Bhd can improve operational efficiency, maintain competitive pricing, and maximize profitability.
Financial decisions are crucial for the overall financial well-being of Brightway Holdings Sdn Bhd.
They impact various aspects of the business, including capital investment, cost management,
financial planning, funding, cash flow management, risk mitigation, and performance evaluation.
By making sound financial decisions, Brightway Holdings Sdn Bhd can enhance profitability,
maintain financial stability, and position themselves for long-term success in the company.

 Planning Finances

Financial planning helps Brightway Holdings Sdn Bhd set clear financial goals and objectives. It
allows the company to define targets for revenue growth, profitability, cost control, and return on
investment. By prioritizing these goals, Brightway Holdings Sdn Bhd can align its financial
resources and efforts towards achieving them effectively. It incorporates risk management
strategies too. By identifying potential financial risks, such as market volatility, raw material price
fluctuations, or regulatory changes, Brightway Holdings Sdn Bhd can develop contingency plans to
mitigate their impact.

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It allows the company to maintain financial resilience, safeguard against uncertainties, and protect
its profitability. Financial planning supports effective communication with stakeholders, including
investors, lenders, and shareholders. It provides a transparent view of Brightway Holdings Sdn Bhd
financial health, future prospects, and financial performance. This builds trust, instills confidence,
and attracts potential investors or partners who can support the company's growth and provide
necessary funding.

 Capital Raising

Capital raising allows Brightway Holdings Sdn Bhd to finance its expansion plans and facilitate
growth. Whether it involves increasing production capacity, acquiring new manufacturing
equipment, or expanding into new markets, sufficient capital is necessary to support these
initiatives. With additional funds, the company can seize opportunities and stay competitive in the
market.
Brightway Holdings Sdn Bhd continually innovate and develop new products to meet changing
customer demands and stay ahead of competitors. Capital raised can be allocated towards research
and development efforts, enabling the company to enhance product quality, introduce new features,
or develop more efficient manufacturing processes. Investing in R&D helps maintain a competitive
edge and respond to evolving market needs.
To raise enough capital, Brightway Holdings Sdn Bhd decide to sell shares, issue debentures, and
shares, and take the bank loans and request creditors to invest in the company. Thus, it has serious
financial implications on profit and liquidity being related to the short-term funding and managing
plans of the company to finance long-term investments.

 Investment Decisions

Assess the current production capacity of Brightway Holdings Sdn Bhd and evaluate if there is a
need for expansion. Consider market demand, growth projections, and the company's ability to
meet customer needs. Investments in expanding production capacity may include acquiring new
manufacturing equipment, increasing factory space, or implementing process improvements to
enhance efficiency.
Examine opportunities to incorporate automation and technology into the manufacturing process.
Assess the potential benefits of adopting advanced machinery, robotics, and digital systems that can

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enhance productivity, reduce costs, and improve quality control. Investments in technology can
lead to increased efficiency, lower labor requirements, and improved overall operations of
Brightway Holdings Sdn Bhd.
Brightway Holdings Sdn Bhd also conduct thorough financial analysis to evaluate the potential
return on investment (ROI) and assess the financial feasibility of proposed projects. Consider
factors such as cash flow projections, payback period, net present value (NPV), and internal rate of
return (IRR). Compare different investment options and prioritize projects with the highest
potential for generating value.

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 SUMMARY

Corporate finance helps determine how the company's capital is allocated among various projects,
investments, and operational needs. It involves analyzing potential investments, assessing their
financial viability, and making informed decisions about where to deploy the company's financial
resources for maximum returns. Corporate finance also involves creating financial plans and
budgets that guide the company's operations. It helps set financial targets, allocate resources, and
monitor performance against established goals. Effective financial planning ensures that the glove
company operates within its means and optimizes its financial resources. It helps identify and
manage financial risks faced by the Brightway Holdings Sdn Bhd. It involves assessing risks such
as market volatility, currency fluctuations, interest rate changes, and operational disruptions. By
implementing risk management strategies and financial instruments, the company can mitigate
potential adverse impacts and safeguard its financial stability.
Corporate finance helps determine the optimal capital structure for the company. It involves finding
the right balance between equity and debt financing to minimize costs, maximize returns to
shareholders, and maintain a healthy financial position. Managing the capital structure effectively
ensures the company has access to the necessary funds while managing financial risks. In summary,
corporate finance plays a critical role in Brightway Holdings Sdn Bhd by guiding capital allocation,
financial planning, risk management, funding decisions, financial analysis, and stakeholder
management. It ensures the company operates efficiently, optimizes financial resources, manages
risks, and maximizes shareholder value. Effective corporate finance practices are essential for the
long-term success and growth of the company.

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 CONCLUSION

In conclusion, corporate finance is of utmost importance in a company. It serves as the backbone of

financial decision-making and management, enabling the company to allocate resources effectively,
plan for the future, manage risks, raise capital, and drive growth. By leveraging the principles of
corporate finance, the company can make informed investment decisions, optimize its capital
structure, ensure financial stability, and enhance shareholder value. It provides the necessary
financial framework and tools to navigate the dynamic business landscape, adapt to market
changes, and seize opportunities. Ultimately, a strong foundation in corporate finance is crucial for
the long-term success and sustainability of a glove company in an increasingly competitive global
market.
Corporate finance provides money to purchase modern machines and technologies in Brightway
Holdings Sdn Bhd. Therefore, finance becomes mandatory for the expansion and diversification of
a company. Brightway Holdings Sdn Bhd must manage several risks, such as sudden falls in sales,
losses due to natural calamities, loss due to strikes, etc. The company needs financial aid to manage
such risks. Assets such as plants and machinery have become old and outdated over the years. They
must be replaced by new assets. Finance is required to purchase new assets. Finance is needed to
pay dividends to shareholders, interest to creditors, banks, etc.

Brightway Holdings Sdn Bhd must pay taxes to the Government such as Income Tax, Goods and
Service Tax (GST), and fees to the Registrar of Companies on various occasions. Finance is needed
for paying these taxes and fees.

Empowering Hands, Enriching Lives.

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 REFERENCES

https://www.linkedin.com/pulse/what-importance-corporate-finance-vikas-sheorain

https://corporatefinanceinstitute.com/resources/fpa/corporate-finance-industry/

https://www.televisory.com/blogs/-/blogs/an-analysis-of-malaysian-rubber-glove-industry

https://www.freshbooks.com/glossary/accounting/corporate-finance

https://www.brightwayholdings.com/

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