Issue

in chicken feed cost ultimately the production cost.

Recommendation
To utilize the government scheme by apply subsidies allocate to the business enterprise at Malaysia and price ceiling on raw material and certain production cost. It will reduce the impact of the increase in cost of feed for the chicken. The company can apply a costbased pricing strategy in order to fix the price per chicken. To closely monitor and eliminate any unnecessary cost to maintain the revenue.

Price of a bag of feed from RM54.50 to RM88.00. approximately 56.5%. in the cost of material leads to the in the chicken prices and automatically the demand of chickens in the market.

Lack Of Internal Control In Management

Issues
The directors have conflict of interest. Enable to extend the credit limit authorized by Encik Selamat and not Miss Choy. Delegate of some function without a proper authorization

Recommendations
EPM needs to have a proper guideline or policies and procedures to speak in handling conflict of interest. Implementing a policy to ensure the members of EPM to disclose any conflict of interest Encik Selamat must follow fiduciary duty as a director in EPM He also need to act in a good faith, act in the best interest of company, use his power properly and should not have any conflict of interest with the client or the third parties.

Payment from customers

Issues Payment from customers not properly supervise and authorized There is no receipt for any payment made by customer as a prove of the transaction Recommendations EPM should implement proper payment procedures include preparation, supervision and authorization which can aavoid duplication, over payment and other miss management

Delegation functions by Encik Selamat

Issues Encik Selamat put high trust to talented and trustly young star staff including Encik Kassim when delegate some of his functions Recommendation Encik Selamat should not put high trust to his staff. He should monitor all the talented and trustly young star staff including Encik Kassim since Encik Selamat had closely monitored over the year alone

In the view of company act 1956

Issue Reluctant to take action Director (Cold Gold Sdn. Bhd) are reluctant to take any action toward Encik Selamat even they know the wrong doing done by Encik Selamat. ( well-connected ) Recommendation Duties of directors: to exercise reasonable care, skill and diligence to avoid conflicts of interest Not to accept benefits from third parties Fiduciary duty Sec 132 (1) director exercise his power in good faith in the best interest of company