All listed companies must prepare and publish their annual report for each end of every financial year. Bursa Malaysia Berhad and Central Bank of Malaysia require business entities to submit annual report. Annual reports are intended to give shareholders and other interested people information about the company’s activities and financial performance. It is general documents that give shareholders an idea of the condition of the company as a whole. The Securities Commission makes public companies disclose certain information to the shareholders of the company. It will create a standardized method that investors can use to evaluate the potential of a company.
The purpose of this project is to analyze the annual reports between two industries. For our project paper, we have focus on services and plantation industries and compared two annual reports for the year 2009 between DRB-HICOM BERHAD and TRADEWINDS PLANTATION BERHAD respectively. This comparison would describe about these two industries; what is the similarities disclosure and differences disclosure between services and plantation industries besides the implication of disclosure and presentation of financial reporting.
The aims of comparative between two annual report is to strengthen and enhance the understandability on how these companies present the information in their annual report to internal and external users. All information should be honest and forthcoming. It is to emphasize on the particular industries, including background of the company. Besides that it has emphasize on applicable statutory requirements, corporate governance, and voluntary disclosure on corporate social responsibility and environment issues into these two different industries. Furthermore, analyzed the similarities and differentiation of statutory requirement applies by both companies. And find out whether these two companies have complied in corporate governance and discuss the application of corporate social responsibility and environmental issues.
2.BACKGROUND OF COMPANIES
2.1 DRB-HICOM BERHAD
In 27 November 1980, the heavy industries corporation of Malaysia (HICOM) was incorporated to spur industrial development in the country. HICOM merged with DRB, a diversified company holding a range of vehicles franchises and with activities in construction and property development on 28 February 2000. The principal businesses of DRB-HICOM Berhad are automotive, services and property & infrastructure sectors. In the services sector, DRB-HICOM Berhad has provide services which are Rangkai Positive Sdn. Bhd., PUSPAKOM Sdn. Bhd., KL Airport Services Sdn. Bhd., HICOM University College Sdn. Bhd., Bank Muamalat Malaysia Berhad., Alam Flora Sdn. Bhd., and another four subsidiaries. Over 30 years operations, DRB-HICOM Berhad have steadily moved up the value chain in each sector without losing sight of their implicit goal of adding to and propelling the nation’s development. It becomes part of Albukhary Group of Companies when it turning point for DRB-HICOM was 8 June 2005. In Services, now DRB-HICOM Berhad has successfully complacent concession mentality by injecting an entrepreneur spirit of innovation into their businesses which exploring novel ways of expanding and increasing their bottom line. Establishment and successful of DRB-HICOM Berhad give committed to ensuring the operations are sustainable and fulfill the expectations as well as maximize the wealth of stakeholders in the long term.
2.2 TRADEWINDS PLANTATION BERHAD
Tradewinds Plantation Berhad has strength, experience and expertise in its core businesses of oil palm and sugar, and also continues to surge forward in pursuit of new global ventures. Tradewinds Group is well positioned to capitalize on emerging opportunities in the market-place, locally and globally according guided by corporate and business direction. Subsidiary of Tradewinds Plantation Berhad are involved in the...