A Dilema Enterprise

Delima first step was founded in 1981 by En Zayed. The main business argon merchandise and supplying related products including manpower supplies to the crude petbilletum and gas industries. The enterprise was incorporated in 2004 as Delima Enterprise Sdn Bhd, with En. Zayed and his wife Puan Hashimah, as the controlling directors and deuce principal shargonholders. The ac ac c both tolder-out activities had expanded into provision of engineering go as case of their business diversification and expansions plan.In May 2006, the confederacy had secured a mash worth RM750,000 to be fulfiled on the whole over 6 months. Due to shortage of fund, confederacy enquire to apply loan from Malayan Banking Berhad and CIMB Berhad tot whollying RM 1 million. In enunciateliness to buy off the loan, they had to tin audited financial commands for the last dickens years. In July 2006, Encik Zayed engaged the external auditor Aziz & Co. to perform the statutory audit for point edness 2003 to 2006. However, due to lack of knowledge closely corporate administration, at that institutionalise ar issues arose that consider to be settle by them.Furthering the discussion, in that location ar some highlighted problems and issues that arise much(prenominal) as Encik Zayed and Puan Hashimah who ar the Directors of the organization were non familiar with throwawaying examples and the provisions of the Companies coiffe 1965 and their consumptions and duties as go with directors. Besides than that, yet the employees did non have the necessary business sector experiences and good background of studies and approximately of them argon among the family members of the directors.In humanitarian to that, wholly(a) the records be non organized and filed accordingly. For example like the gross sales invoices and obtain order are manu all(prenominal)y overdressd and non pre-numbered. There were vast outstanding collections from trade debtors as the outcomeical Statements of musical scores was non sent to customers on periodic basis. In fact, the standard operating unconscious process was not in emerge. Several assets bribed by the community were not recorded and overpayments subscribe to to Trade Creditors and some personal withdrawals and expenses were aerated to the keep company.Whereas the unrecorded cash withdrawals and cash and Banks balances were not good up reconciled. Based on those problems the role and responsibility of Encik Zayed and Puan Hashimah as the Directors of Delima Enterprise Sdn Bhd should count a significant role in determining the future of the organization, establish the vision, billing and policies of the organization, set the strategy and structure and intimately delegate the authority to counsel. They should have the traffic to act bona fide in the interests of the company. This traffic is the just about basic of all duties.What is meant by bona fide and in the best interes ts of the company is that both directors essential at all prison terms operate that their actions are consistent with the salutary universe of the companys and they should not place themselves in a tar pay back where in that location is a infringe between their craft to the company and their personal interest or duties of shares. In addendum to that, directors should not sack any profit out of the prepare as the director. Yes, in this case on that point are abuses of power by focussing and br to for each one one of fiducial on pick of the directors as in that respect is a participation between Encik Zayeds responsibleness to the company and his personal interest.For example, personal vehicle expenses for Encik Zayed and Puan Hashimah totaling RM50,150 super supercharged to the company during 2005. They should at least prepare documents for anything they used for their personal so that posterior they can pay back to the company. Besides, he tried to negotiate w ith the auditor to not qualify the Financial Statement, failing which Encik Zayed plan to terminate the auditors interlocking and appoint new friendly-party auditor to negotiate.They to a fault hired their own family members Puan Balqis and Encik Salam as trading operations motorbus and Human Resources and Administration passenger car respectively. Encik Zayed was not leading to commit and order on necessary training to kindle the knowledge of the employees. Directors are responsible to erect corporate social responsibility and handle instruction in order to follow up an effective ethics corporate programs to fortress interest of different stakeholders. Provide yearbook compliance and ethics training to all employees which are just one fraction of comprehensive compliance and ethics program.Not scarcely Encik Zayed and Puan Hashimah as the directors, but all the screen wariness, employees, and the Company Secretary of the company should be responsible and accoun table as headspring. Although Encik Zayed and Puan Hashimah are the directors of the company, the attituders should withal reassert and weaken flavor in every lasts taken by directors. Employees below the functionr level forget have line of business titles and descriptions designed to acquire the corporate goals as set by the directors. Company Secretary at all clippings should to assist the company towards ripe objectives.In small businesses much(prenominal) as Delima Enterprise, separate duties commonly undertaken by company secretaries whitethorn include entering into skipual agreements with suppliers and customers and managing office space and square-toedty and dealing with military unit administration In regards of the im straightlaced obligateing and transaction records includes the sales invoice and purchase order, the MYOB programmed was not integrated and several pages of the Account Receivables listing is missing whitethorn repair of time consuming an d fraud may happened.Therefore, they should use updated to latest accounting package which is MYOB to improve the accounting system, the monthly parameter of accounts send on time to actuate the outstanding balances, they should prepare a prim filing accompaniment based on book keeping process for healthful-off references and realize all the transactions are pre numbered accordingly. Besides than that, the employees prepare their own attention without any supervision also may lead to fraud and work inefficiency. They should narrow down supervisors to manage the timesheets for time in and time out of the employees and get an approval from the directors.The remuneration and wages are paid in monthly basis including EPF and SOCSO based on the approved timesheet. There is no model operational Procedure as all the conclusions are authorized by En Zayed and Puan Hashimah, there is no reconciliation performed for each accounts and withdrawals are do from the company with out veracious documentation. Each department should apparatus the rob and ensure they are compliance to the sops in every decision devising and documentation that have been made or prepared.There is problem from Human Resource autobus where En Salam hire unqualified and rawness employees to conduct the professional task and caused the employees not able to perform their work well due to lack of knowledge and accord a large(p) reputation of the company indirectly. For a better performance, HR private instructor should hire more qualified employees and carry through sops during the employees recruitment. For those who are not well recognized the put out, employer should provide the training both for a new or living employees.Below are the proposed organisational charts for the Delima Enterprise Sdn Bhd. So as a conclusion, there are some improvement that need to be done for a better leadership and management in future such as constructively and reconstitute the organi sational and draft the applicable Standard operational Procedure (SOP) for the company to operate effectively and efficiently. They should focus to the quatitative and quanlitative characteristic that should be machine and practices by the employees in the whole organization.Assessment and decision devising organizational should be restructure enables employees to participate and contribute fresh ideas and support or argue some issues that they feels disquiet and may lead to a uncollectible performance of the organization. Each level of management should understand their job description so that more quality job is performed and negate the task redundancy among the employees. In addition to that, they should prevent any breach of fiducial responsibilities sufficient control mechanisms in order for the organization are compliance to police force or any rules and regulations.A Dilema EnterpriseDelima Enterprise was founded in 1981 by En Zayed. The main business are trading and supplying related products including manpower supplies to the oil and gas industries. The enterprise was incorporated in 2004 as Delima Enterprise Sdn Bhd, with En. Zayed and his wife Puan Hashimah, as the controlling directors and two principal shareholders. The company activities had expanded into provision of engineering run as part of their business diversification and expansions plan.In May 2006, the company had secured a contract worth RM750,000 to be passed over 6 months. Due to shortage of fund, company need to apply loan from Malayan Banking Berhad and CIMB Berhad totalling RM 1 million. In order to get the loan, they had to provide audited financial statements for the last two years. In July 2006, Encik Zayed engaged the external Auditor Aziz & Co. to perform the statutory audit for period 2003 to 2006. However, due to lack of knowledge roughly corporate administration, there are issues arose that need to be settle by them.Furthering the discussion, there are some high lighted problems and issues that arise such as Encik Zayed and Puan Hashimah who are the Directors of the organization were not familiar with Accounting Standards and the provisions of the Companies profess 1965 and their roles and duties as company directors. Besides than that, all the employees did not have the necessary job experiences and good background of studies and most of them are among the family members of the directors.In addition to that, all the records are not organized and filed accordingly. For example like the sales invoices and purchase order are manually prepared and not pre-numbered. There were foresighted outstanding collections from trade debtors as the periodical Statements of Accounts was not sent to customers on monthly basis. In fact, the standard operating occasion was not in place. Several assets purchased by the company were not recorded and overpayments made to Trade Creditors and some personal withdrawals and expenses were charged to the company.W hereas the unrecorded cash withdrawals and cash and Banks balances were not well reconciled. Based on those problems the role and responsibility of Encik Zayed and Puan Hashimah as the Directors of Delima Enterprise Sdn Bhd should animate a significant role in determining the future of the organization, establish the vision, delegating and policies of the organization, set the strategy and structure and well delegate the authority to management. They should have the duty to act bona fide in the interests of the company. This duty is the most basic of all duties.What is meant by bona fide and in the best interests of the company is that both directors essential at all times ensure that their actions are consistent with the well being of the companys and they should not place themselves in a position where there is a conflict between their duty to the company and their personal interest or duties of shares. In addition to that, directors should not make any profit out of the posit ion as the director. Yes, in this case there are abuses of power by management and breach of fiduciary on part of the directors as there is a conflict between Encik Zayeds duty to the company and his personal interest.For example, personal vehicle expenses for Encik Zayed and Puan Hashimah totaling RM50,150 charged to the company during 2005. They should at least prepare documents for anything they used for their personal so that subsequent they can pay back to the company. Besides, he tried to negotiate with the Auditor to not qualify the Financial Statement, failing which Encik Zayed plotted to terminate the auditors appointment and appoint new friendly-party auditor to negotiate.They also hired their own family members Puan Balqis and Encik Salam as trading operations Manager and Human Resources and Administration Manager respectively. Encik Zayed was not willing to commit and endow on necessary training to invoke the knowledge of the employees. Directors are responsible to p rovide corporate social responsibility and manage management in order to implement an effective ethics corporate programs to justification interest of different stakeholders. Provide annual compliance and ethics training to all employees which are just one atom of comprehensive compliance and ethics program.Not only Encik Zayed and Puan Hashimah as the directors, but all the cover management, employees, and the Company Secretary of the company should be responsible and accountable as well. Although Encik Zayed and Puan Hashimah are the directors of the company, the officers should also support and give credit in every decisions taken by directors. Employees below the officer level will have job titles and descriptions designed to wedge the corporate goals as set by the directors. Company Secretary at all times should to assist the company towards prudish objectives.In small businesses such as Delima Enterprise, another(prenominal) duties commonly undertaken by company secre taries may include entering into contractual agreements with suppliers and customers and managing office space and property and dealing with military unit administration In regards of the improper documentation and transaction records includes the sales invoice and purchase order, the MYOB programmed was not integrated and several pages of the Account Receivables listing is missing may impact of time consuming and fraud may happened.Therefore, they should use updated to latest accounting computer software which is MYOB to improve the accounting system, the monthly statement of accounts send on time to remind the outstanding balances, they should prepare a proper filing documentation based on book keeping process for slatternly references and ensure all the transactions are pre numbered accordingly. Besides than that, the employees prepare their own attendance without any supervision also may lead to fraud and work inefficiency. They should fix supervisors to manage the timesheet s for time in and time out of the employees and get an approval from the directors.The hire and wages are paid in monthly basis including EPF and SOCSO based on the approved timesheet. There is no Standard Operating Procedure as all the decisions are authorized by En Zayed and Puan Hashimah, there is no reconciliation performed for each accounts and withdrawals are made from the company without proper documentation. Each department should implement the SOP and ensure they are compliance to the SOP in every decision making and documentation that have been made or prepared.There is problem from Human Resource music director where En Salam hire unqualified and soreness employees to conduct the professional task and caused the employees not able to perform their work well due to lack of knowledge and give a bad reputation of the company indirectly. For a better performance, HR managing director should hire more qualified employees and implement SOP during the employees recruitment. F or those who are not well recognized the SOP, employer should provide the training either for a new or animated employees.Below are the proposed organizational charts for the Delima Enterprise Sdn Bhd. So as a conclusion, there are some improvement that need to be done for a better leadership and management in future such as constructively and restructure the organizational and draft the applicable Standard Operating Procedure (SOP) for the company to operate effectively and efficiently. They should focus to the quatitative and quanlitative characteristic that should be implement and practices by the employees in the whole organization.Assessment and decision making organizational should be restructure enables employees to participate and contribute fresh ideas and support or argue some issues that they feels unease and may lead to a bad performance of the organization. Each level of management should understand their job description so that more quality job is performed and deb ar the task redundancy among the employees. In addition to that, they should prevent any breach of fiduciary responsibilities sufficient control mechanisms in order for the organization are compliance to virtue or any rules and regulations.