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Contents
1. Introduction Page 3
Conclusion Page 18
References Page 19
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MAFR Assignment: Prepared by Leong Lai Yin
Executive summary
Tricor Services Malaysia Sdn Bhd “Tricor” have been operating more than 30 years
in Malaysia. Tricor provide a broad range of services on setting up companies and
doing business in Malaysia. Our experience in corporate structuring and advisory
functions including company secretarial, share registration, financial and accounting
services, compliance and advisory services, tax advisory and consultancy services,
Labuan offshore services and human resource consulting services.
Financial resources is the most important part in every corporate agenda, with the
current instability of economic, it seems particularly challenging for Tricor. Sharply
because of higher prices of food, oil and other commodities, fluctuation of currency,
tightening credit conditions and plunging stock market prices confront a new era of
unusually difficult challenges.
Tricor has it quality of service and knowledge in the industry and with the centralised
location; it’s allowed the target market for full service ability and a vision of growth
for the company. Tricor realised that recognizes the sustaining growth is not possible
without a focus on financial resources controls and also investment strategy. The
management plans to generate income and capital gains besides only the revenue from
the retainer fees to support the operations.
This financial control provides the basic element framework to the management in
managing the financial resources and optimising growth of Tricor. This report
outlines the development financial strategy in terms of the Corporate Planning and
Financial Resources Controls in rendering the Budgeting and Reporting to the
Working Capital Management Strategy. From this policies and procedures the
management can identify the critical capabilities needed to meet goals within an
acceptable cost structure to maximise growth of the company.
(270 words)
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MAFR Assignment: Prepared by Leong Lai Yin
1. Introduction
Financial resources are the availability of cash, creditors, debtors, securities, loan and
funding infatuated by an organisation. Financial resources are mainly came from
internal and external sources such as the working capital, income earning, retained
earning, sales of goods or services, hire purchase, leasing and others.
If an organisation is taking the time and effort to develop the financial resources
controls based on the financial control system, then it seems worth the small amount
of additional of effort it would take to understand the major financial processes of the
organisation. Regularly reviewing and improving the overall working capital structure
it will help to establish the key finance goals and to produce accurate financial
statements to minimise the debt or equity and strengthening the cost of capital. The
controls and processes provide a level of materiality in reaching financial goals and to
maximise the shareholder profits.
(291 words)
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MAFR Assignment: Prepared by Leong Lai Yin
2. Definition of Terms
“Account : Money which is owed to a company by clients for products
Receivables” and services provided on credit. This is treated as a current
asset on a balance sheet.
“Account Payables” : Money which a company owes to vendors for products and
services purchased on credit. This is treated as current
liability on a balance sheet.
“Financial Resources” : Resources that are or will become available for spending.
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MAFR Assignment: Prepared by Leong Lai Yin
Tricor Services Malaysia Sdn Bhd “Tricor” have been operating more than 30 years
in Malaysia. Tricor has built its reputation and professional expertise through the
acquisition of certain practices from major accounting and professional firms as well
as through organic growth and development. Most of Tricor key management and
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MAFR Assignment: Prepared by Leong Lai Yin
professional personnel are the former directors and employees of leading accounting
practices. Our head quarter is located in Gardens, Mid Valley, Kuala Lumpur. Tricor
have it offices through out Malaysia where they are in Penang, Ipoh, Melaka and
Johor.
With the strength of our 350 employees, Tricor provide a broad range of services and
our vast experience in regional matters allow us to give expert advice to our clients on
setting up companies and doing business in Malaysia. We are expert in corporate
structuring and advisory functions including company secretarial, share registration,
financial and accounting services, compliance and advisory services, tax advisory and
consultancy services, Labuan offshore services and human resource consulting
services. All this services are valuable outsourcing services administration function to
an organisation or company. Our expertise can help in our clients’ non core activities
such as corporate administration, compliance and business support functions. Tricor
has it proven history of developing strategic long term services through meticulous
attention and professionalism at every service level.
With the 6000 clients’ database, Tricor is the leading management service firm in
Malaysia who clients across a wide range of industries, including Fortune 500
companies, multinationals as well as companies listed in Asia. Outsourcing business
support and corporate compliance functions to our specialist remove the company’s
administrative burden, saves high staff expenditure, provides in-depth knowledge of
intricate rules and regulations, and delivers cost effective and efficient management of
time-sensitive and confidential transactions.
(288 words)
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MAFR Assignment: Prepared by Leong Lai Yin
The nature of our business is one in which we are affected by how our clients
perform. We are in essence, an extension of their business, so whatever impacts their
business, impact on Tricor as well. The economic downturn has led to many
companies reassessing their overall business model.
Tricor faces challenges such as termination of services from clients and also difficulty
in collection. Tricor have to remain aggressive and be more cost effective and resilient
during these tough times. We acknowledges its overall responsibility for maintaining
a system of internal controls that provides reasonable assurance of effective and
efficient operations as well as adherence to internal policies and procedures to govern
the financial and operational functions and ethics of Tricor.
Tricor financial resources are mainly from the retainer fees from the secretarial
services, business outsourcing and share registration services. As one of our strength
is consultancy and advisory, we do provide such services in contributing additional
revenue to the organisation.
As Tricor is a management firm, our operational cost are based on staff salaries,
utilities bills, rental of premises, stationeries, printing, marketing materials and
business development expenses, payment to suppliers or vendors, hire purchase loans,
insurance, bank overdrafts and etc.
With all this sources the management performs an annual budgeting controls and
forecasting exercise for the development of business strategies and establishment of
key performance indicators within the firm to be evaluated on the financial
performance.
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MAFR Assignment: Prepared by Leong Lai Yin
On a quarterly basis, the financial results together with their variances are reported
and reviewed by CEO and CFO to enable them to gauge the firm achievement of its
annual targets and review any key financial and operational issues.
The firm strategic financial resources controls will also be reviewed annually in light
of the prevailing market conditions and significant market risks by the CEO and the
Senior Management of the firm.
Accordingly, Tricor has come up with the following key elements of the controlling
cost framework to be adopted as an on going process to monitor and review the
effectiveness of our system of financial controls to maximise shareholder profits.
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MAFR Assignment: Prepared by Leong Lai Yin
The procedures:
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Purchasing policy
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Budgetary control
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MAFR Assignment: Prepared by Leong Lai Yin
(2,292 words)
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MAFR Assignment: Prepared by Leong Lai Yin
Conclusion
Naturally, all companies follow their own particular strategies for delivering on
their growth agendas and managing costs and risk. Given the challenges, all
organisations can benefit by tailoring their own approach for wealth maximasation
By using the internal and external controls in Tricor will have an impact on the
corporate reputation. Tricor as a leading management firm in Malaysia,
sustainability and growth to maximise shareholder wealth by implementing
controls and policy allows information to be channel to the shareholders to obtain
the informative financial information.
As we move into latter stage of the economic cycle, rising interests rates, higher
inflation, and falling stock markets prices are taking a toll on Tricor. Tricor can no
longer rely on the optimistic economy growth with low interest rates and profits.
We have examined the control strategies in the market for inspiration to increase
profitability and controlling cost also deliver quality client satisfaction and
achieve our organisation growth strategy. Each characteristics controls are on the
efficient frontiers which the combination maximise profits for Tricor. The controls
allow the management assess the profit and increases that can be achieved by
implementing it.
(243 words)
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MAFR Assignment: Prepared by Leong Lai Yin
Books/ References
1. Douglas W.Kurz (1992), Policies & Procedures Manual For Accounting and
Financial Control: Aspen Publisher Inc, New York, USA
2. Eugene F. Brigham & Michael C. Ehrhardt (2007), Financial Management:
Theory & Practice, 12th edition, South-Western College Pub, OH, USA
3. Gitman, Lawrence J. (1998), Principles of Managerial Finance, 5th edition,
HarperCollins Publisher.
4. http://www.answers.com/topic/executive-committee
5. http://www.businessdictionary.com/definition/revenue.html
6. http://www.bplans.com/organic_restaurant_business_plan/executive
summary_fc.cfm
7. http://www.bizmanualz.com/information/2005/01/11/strategies-for-writing-
receivables-procedures.html
8. http://www.bizmanualz.com/information/2005/04/06/how-to-write-
procedures-to-increase-control.html
9. http://courses.washington.edu/inde495/lecg.htm
10. http://www.cliffsnotes.com/WileyCDA/CliffsReviewTopic/Organizational-
Control-Techniques.topicArticleId-8944,articleId-8928.html
11. http://en.wikipedia.org/wiki/Corporate_finance
12. http://www. foundationpartnership.org
13. http://www.financeinislam.com/article/1_39/1/369
14. http://www.google.com.my/search?
hl=en&q=financial+management&meta=&aq=o&oq=
15. http://www.investopedia.com/terms/a/accounting-policies.asp
16. http://www.investorwords.com
17. http://www.klse.com.my
18. http://www.learningwhatworks.com/papers/Max_Value.pdf
19. http://sbinfocanada.about.com/cs/management/g/cashflowmgt.htm
20. http://www.unt.edu/policy/UNT_Policy/volume2/11_5.html
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