MARKET DEVELOPMENT
AG: Serian Palm Oil Mill’s Overall Performance Good
AG: Serian Palm Oil Mill’s Overall Performance Good
17/06/2014 (Borneo Post) - Serian Palm Oil Mill Sdn Bhd’s (SEPOM) overall financial management performance has been deemed good while the management of the corporate governance was satisfactory as revealed in the second series of the Auditor General’s Report 2013.
The second series was tabled in Parliament Monday after receiving consent from Yang di-Pertuan Agong Tuanku Abdul Halim Mu’adzam Shah.
The audit, conducted from February to March 2014, did however reveal several issues in which the management of activities, financial management and corporate governance can be further improved.
In summary, The Auditor General shared in the report the issues encountered during the course of audit which among others, included the trade receivables of more than 30 days as per contract amounting to RM34.16 million in 2012.
In addition, the report revealed that SEPOM’s Marketing Guidelines and Pricing Procedures are not updated while Policies/Manuals and Procedures for Financial Management are yet to be prepared.
Furthermore, it noted that SEPOM needs to consider a more efficient and environmental friendly methods on the disposal of empty fruit bunches while preventive maintenance of machineries were not done according to schedule.
To further enhance the company’s management on SEPOM, the report shared its recommendations regarding some of the actions that the group should take.
These included improving the performance of palm oil production, its operations, management of schedule machineries maintenance and ensure optimum use of the machineries to increase oil production.
In addition, SEPOM has been advised to also review other alternative methods for the disposal of empty fruit bunches.
Thirdly, the company will need to formulate a Corporate Plan, Policy And Procedures/Manual on Financial Management and its regulations relating to the administration and financial management and to update the Marketing Manual with the new approved pricing rates.
SEPOM, which commenced operation in May 1997, is 60 per cent owned by Sarawak Land Consolidation And Rehabilitation Authority (SALCRA) and 40 per cent owned by Genting Plantations Bhd.
With an authorised capital of RM5 million and paid up capital of RM5 million, SEPOM’s main activities are buying and processing of fresh fruit bunches into crude palm oil and palm kernel production for sale.
The second series was tabled in Parliament Monday after receiving consent from Yang di-Pertuan Agong Tuanku Abdul Halim Mu’adzam Shah.
The audit, conducted from February to March 2014, did however reveal several issues in which the management of activities, financial management and corporate governance can be further improved.
In summary, The Auditor General shared in the report the issues encountered during the course of audit which among others, included the trade receivables of more than 30 days as per contract amounting to RM34.16 million in 2012.
In addition, the report revealed that SEPOM’s Marketing Guidelines and Pricing Procedures are not updated while Policies/Manuals and Procedures for Financial Management are yet to be prepared.
Furthermore, it noted that SEPOM needs to consider a more efficient and environmental friendly methods on the disposal of empty fruit bunches while preventive maintenance of machineries were not done according to schedule.
To further enhance the company’s management on SEPOM, the report shared its recommendations regarding some of the actions that the group should take.
These included improving the performance of palm oil production, its operations, management of schedule machineries maintenance and ensure optimum use of the machineries to increase oil production.
In addition, SEPOM has been advised to also review other alternative methods for the disposal of empty fruit bunches.
Thirdly, the company will need to formulate a Corporate Plan, Policy And Procedures/Manual on Financial Management and its regulations relating to the administration and financial management and to update the Marketing Manual with the new approved pricing rates.
SEPOM, which commenced operation in May 1997, is 60 per cent owned by Sarawak Land Consolidation And Rehabilitation Authority (SALCRA) and 40 per cent owned by Genting Plantations Bhd.
With an authorised capital of RM5 million and paid up capital of RM5 million, SEPOM’s main activities are buying and processing of fresh fruit bunches into crude palm oil and palm kernel production for sale.