MARKET DEVELOPMENT
YPJ Plantations Financial Performance Continues To Improve - Audit Report
YPJ Plantations Financial Performance Continues To Improve - Audit Report
07/04/2015 (Bernama) - The financial performance of YPJ Plantations Sdn Bhd (YPJPSB), a company owned by the Johor state government, remained steady from 2011 to 2013.
This was because the company recorded profits consistently every year, according to the Auditor-General's Report 2014, Series 1 tabled in the Dewan Rakyat today.
"YPJPSB profit before zakat and taxation in 2011 amounted to RM57.49 million but had declined to RM36.94 million in 2012 and RM19.27 million (2013).
"Profit before tax declined significantly in 2012 due to the drop in sales of oil palm products consisting of Fresh Fruit Bunches (FFB), Crude Palm Oil (CPO) and Palm Kernel Oil (PKO) which decreased to RM37.04 million compared to sales in 2011 which amounted to RM130.33 million," the report said.
According to the report, although profit was low, overall, YPJPSB managed to increase its retained earnings in 2011, which amounted to RM53.50 million, 2012 (RM69.49 million) and 2013 (RM72.80 million)
In terms of management of main activities and corporate governance, the company also performed well, the report said.
However, the management needed to address among others, the production of Fresh Fruit Bunches which failed to meet the set target and was below the national average; corporate plans and the company's key performance indicator (KPI) were not in place and its weaknesses in asset management.
To ensure that objectives of YPJPSB establishment could be fully achieved and to ensure equity holders (YPJ Corporation Sdn Bhd dan YPJ Holdings Sdn Bhd) got 'value for money',the report recommended the company to take some actions.
These included increasing FFB production of palm oil estates in order to achieve the set targets and thereby ensuring the main income of YPJPSB would not be affected; determine the level of risk in each activity implemented to facilitate the company's strategic planning and KPI to measure the performance of the company.
In addition, improvements should be made on control of asset management.
This was because the company recorded profits consistently every year, according to the Auditor-General's Report 2014, Series 1 tabled in the Dewan Rakyat today.
"YPJPSB profit before zakat and taxation in 2011 amounted to RM57.49 million but had declined to RM36.94 million in 2012 and RM19.27 million (2013).
"Profit before tax declined significantly in 2012 due to the drop in sales of oil palm products consisting of Fresh Fruit Bunches (FFB), Crude Palm Oil (CPO) and Palm Kernel Oil (PKO) which decreased to RM37.04 million compared to sales in 2011 which amounted to RM130.33 million," the report said.
According to the report, although profit was low, overall, YPJPSB managed to increase its retained earnings in 2011, which amounted to RM53.50 million, 2012 (RM69.49 million) and 2013 (RM72.80 million)
In terms of management of main activities and corporate governance, the company also performed well, the report said.
However, the management needed to address among others, the production of Fresh Fruit Bunches which failed to meet the set target and was below the national average; corporate plans and the company's key performance indicator (KPI) were not in place and its weaknesses in asset management.
To ensure that objectives of YPJPSB establishment could be fully achieved and to ensure equity holders (YPJ Corporation Sdn Bhd dan YPJ Holdings Sdn Bhd) got 'value for money',the report recommended the company to take some actions.
These included increasing FFB production of palm oil estates in order to achieve the set targets and thereby ensuring the main income of YPJPSB would not be affected; determine the level of risk in each activity implemented to facilitate the company's strategic planning and KPI to measure the performance of the company.
In addition, improvements should be made on control of asset management.