Contents

INTRODUCTION....................................................................................................... 2
COMPANY BACKGROUND...................................................................................... 2
ORGANIZATIONAL CHART..................................................................................... 2
MALAYSIAS POULTRY INDUSTRY..........................................................................3
LIST OF ISSUES:....................................................................................................... 3
GROUPING............................................................................................................... 3
Financial Perspective................................................................................................. 3
Management Style.................................................................................................... 4
Internal Control....................................................................................................... 4
PRIOTIZE................................................................................................................. 4
Financial Perspective................................................................................................. 4
Management Style.................................................................................................... 4
Internal Control........................................................................................................ 4
ALTERNATIVES........................................................................................................ 4
Financial Perspective................................................................................................. 4
Management Style.................................................................................................... 5
Internal Control........................................................................................................ 5
DECISION MAKING................................................................................................... 6
REFERENCES........................................................................................................... 6

INTRODUCTION
COMPANY BACKGROUND

Excel Poultry & Meat Sdn.Bhd. (EPM) was established in 1998 as small & medium
enterprise (SME).
From 20 employees it expanded till 200 employees.
Actively involved in chicken farming and supplying of whole chickens.

ORGANIZATIONAL CHART

PCK HOLDING
( Parent
Company)

EXCEL POULTRY &

MEAT SDN.BHD.

GENERAL MANAGER
(EN. SELAMAT)

CREDIT CONTROLLER
(MS. CHOY)

BOD DIRECTORS

ACCOUNT EXEC (PN.

AZURA)

FINANCE MANAGER
& MARKETING
PLANNER
( EN.KASSIM)

MALAYSIAS POULTRY INDUSTRY

High demand in chicken market.
Ex. Fast-Food restaurants & malaysians delicacies.
Cheapest source of meat protein in Malaysia.

LIST OF ISSUES:
1. Higher Chicken Prices
2. Increase in Retail Prices
3. Feed Cost Hike
4. Demand in fast-food
5. Operating cash running low
6. Increase in short-term borrowing
7. Increase in financial obligations in term of interest payments
8. Debtor aging analysis are irregular
9. Unethical actions
10. Conflict of interest
11. BOD reluctant to take actions
12. Client complaint statement of account figures mistated wrongly
13. Increase in salary & prequisites

GROUPING
Financial Perspective

Higher Chicken Prices

Increase in Retail Prices
Feed Cost Hike
Operating cash running low
Increase in short-term borrowing
Increase in financial obligations in term of interest payments
Increase in salary & prequisites

Management Style
Unethical actions

Internal Control

Debtor aging analysis are irregular

Conflict of interest
BOD reluctant to take actions
Client complaint statement of account figures mistated wrongly

PRIOTIZE
Financial Perspective

Operating cash running low

Increase cost of sales and expenses

Management Style

Unethical Actions

Internal Control

Conflict of Interest
Debtors Aging Analysis are irregular
Mr.Siva complained figures in statement of accounts are incorrect

ALTERNATIVES
Financial Perspective
o Operating cash running low
1) Increase chicken Production types:
Organic eggs
Meat
Fertilizers ( chicken poop & sell to farmers)
Feathers (Handicraft makers)
Livestock (sell the chicks & sell to other customers)
2) Increase Revenue by expanding market share.
Sell to neighbouring countries
3) Offer discounts and remind the debtors.

o Increase cost of sales and expenses

1) Reduce Cost Feed
Mix chicken feed with different types and ingredients
2) Reducing transportation cost and labor cost

Management Style
o Unethical Actions
1)
2)
3)

Clear set of policies and procedures

PCK Holding should monitor the subsidiary
Whistle Blowing Policy

Internal Control
o Conflict of Interest
1)

Ms.Choy
-

2)

Persuade BOD to take further actions

Conduct investigation through 3rd party
Can lead EPM to worst case of companys performance
Report to PCK Holding

Proper Documentation
- To ensure adequate accounting records and source of documents are
-

maintained.
Ensure effective documentation,the receipts:
@ pre-numbered consecutively
@ prepare time of transactions
@ create user-friendly format

3)

Internal audit outsourcing

- Testing, monitoring companys policy and internal control

4)

Segregation of Duties
- Help minimize risks and fraud
- Maximize inventory and supply protection

5)

Security Controls
- Prevent unauthorized access to sensitive materials

6)

Authorization Procedures
- Credit sales cycle

DECISION MAKING

 We have to improve internal control.To have a better internal control we need to carry
out three main things.The three main things are Segregation of Duties, Proper
Documentation and Hiring Internal Auditors.

REFERENCES
1. Script
2. Slides