Chicken Run
Financial Account receivables not being maintained properly Low in Operating Cash Flow Theft on the cash collection (En Munir)
1.
2.
Leadership
BOD didn’t take any legal actions towards En. Selamat.
There is a conflict of interest-Between En. Selamat and the Director of Gold Cold S/B which is En. Azman. There were best friends and Gold Cold S/B is one of the major customer.
Internal Control En. Selamat still continued to supply the chicken to Cold Gold S/B even though the customer credit limit has exceeded. The marketing department didn’t follow the procedure on credit sales term (to ensure the customer didn’t exceed the credit limit) Collection of payment from the customer (each payment must be documented)
3.
The employees The debtors & creditors Customer & the public Government
The BOD didn’t held any meeting to discuss about En Selamat actions. En. Selamat didn’t take any appropriate actions regarding the issues of low operating cashflow. (eg : expand and make variety of product from chicken based) Ms. Choy didn’t able to collect the unsettle amount due from the debtors. EPM S/B didn’t have a good communications link between each department.
Create variation of the product based on chicken. Chicken Nugget-from the chicken meat Fertilizer- came from the chicken poop Handcraft-from the chicken feathers Egg- lay by the chicken Sell chicks-sell to the potential buyer
1.
Effect on Financial • Gain new customers and directly will increase the sales and profit.
2.
Provide or organized training to the new farmers or entrepreneurs that is interested to operates the business in chicken industry.
Effect on Financial • The training’s participant will pay fee to EPM Sdn Bhd and the training fee become one of the source of income for EPM Sdn Bhd
3. Become a hub/intermediate party to sell others farmer chicken (eg : FAMA)
Local Farmer
EPM Sdn Bhd
Market
Effect on Financial • EPM Sdn Bhd will buy chicken from
1.
2.
Leadership
BOD didn’t take any legal actions towards En. Selamat.
There is a conflict of interest-Between En. Selamat and the Director of Gold Cold S/B which is En. Azman. There were best friends and Gold Cold S/B is one of the major customer.
Internal Control En. Selamat still continued to supply the chicken to Cold Gold S/B even though the customer credit limit has exceeded. The marketing department didn’t follow the procedure on credit sales term (to ensure the customer didn’t exceed the credit limit) Collection of payment from the customer (each payment must be documented)
3.
The employees The debtors & creditors Customer & the public Government
The BOD didn’t held any meeting to discuss about En Selamat actions. En. Selamat didn’t take any appropriate actions regarding the issues of low operating cashflow. (eg : expand and make variety of product from chicken based) Ms. Choy didn’t able to collect the unsettle amount due from the debtors. EPM S/B didn’t have a good communications link between each department.
Create variation of the product based on chicken. Chicken Nugget-from the chicken meat Fertilizer- came from the chicken poop Handcraft-from the chicken feathers Egg- lay by the chicken Sell chicks-sell to the potential buyer
1.
Effect on Financial • Gain new customers and directly will increase the sales and profit.
2.
Provide or organized training to the new farmers or entrepreneurs that is interested to operates the business in chicken industry.
Effect on Financial • The training’s participant will pay fee to EPM Sdn Bhd and the training fee become one of the source of income for EPM Sdn Bhd
3. Become a hub/intermediate party to sell others farmer chicken (eg : FAMA)
Local Farmer
EPM Sdn Bhd
Market
Effect on Financial • EPM Sdn Bhd will buy chicken from