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.
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...
References: Arshad, R. (2007). Adopting Malaysian Code on Corporate Governance: An Implication to the Board Structure. Universiti Utara Malaysia.
Ashbaugh, H. (1999). Corporate Reporting on the Internet. American Accounting Association, Vol. 13 No. 3, 241-257.
Barako, D. G. (2006). RELATIONSHIP BETWEEN CORPORATE GOVERNANCE ATTRIBUTES AND VOLUNTARY DISCLOSURES IN ANNUAL REPORTS: THE KENYAN EXPERIENCE. Financial Reporting, Regulation and Governance.
Berhad, D.-H. (2010). Annual Report. DRB-Hicom Berhad.
Berhad, T. P. (2009). Annual Report. Tradewinds Plantation Berhad.
Econrep. (2002). Managing the Malaysian Economy. Economic Report.
Fernandez, F. (March 2011). RM7.5b project for DRB-HICOM. Business Times. Retrieved from http://www.btimes.com.my/articles/drbxxx/Article/
Ismail, K. N. I. K. (2005). DISCLOSURE IN THE QUARTERLY REPORTS OF MALAYSIAN COMPANIES. Financial Reporting, Regulation & Governance.
Khas, D. M. N. (2002). Malaysian Code on Corporate Governance. APEC Financial Regulators Training Initiative, Securities Commission.
Kothari, S. P. (2000). The Role of Financial Reporting in Reducing Financial Risks in the Market.
Malaysia, A. (May 2006). Corporate Social Reporting: Making Business Sense in Malaysia. ACCOUNTANTS TODAY.
Malaysia, B. (2006). Corporate Social Responsibility (CSR) Framework For Malaysian Public Listed Companies. BURSA MALAYSIA.
Maria de-los Angeles Gil Estallo, F. G. d.-l. F., Carles Griful-Miquela. (2007). The importance of corporate social responsibility and its limits. International Advances in Economic Research.
Moon, D. M. a. J. (2005). ‘Implicit’ and ‘Explicit’ CSR: A conceptual framework for understanding CSR in Europe. Egham, Surrey, TW20 0EX England.
Research, M. (2009). THE NATIONAL AUTOMOTIVE POLICY REVIEW. MIDF Equity Beat.
Saleh, N. M. (2005). Earnings Management and Board Characteristics:Evidence from Malaysia. Journal of Management.
Samad, M. F. b. A. (2002). CORPORATE GOVERNANCE IN MALAYSIA. Faculty of Business and Accountancy, University of Malaya.
Sandun. (2010). Corporate social responsibility and the plantations Retrieved from http://www.tops.lk/article22406-corporate-social-responsibility-plantations.html
Sori, Z. M. (2008). Accountability in the Post Malaysian Code on Corporate Governance: The Role of Audit Committee/Independent Directors. European Journal of Economics, Finance and Administrative Sciences.
StarBizICRMalaysia. (March 2011). Corporate Responsibility Award 2010. StarBiz. Retrieved from http://thestar.com.my/starbizicrm/story.asp?file=/2011/3/30/starbizicrm/8374794&sec=starbizicrm
Wolfsburg. (2010). Volkswagen signs agreement to produce vehicles in Malaysia. from http://www.volkswagenag.com/vwag/vwcorp/info_center/en/news/2010/12/volkswagen_signs_agreement_to_produce_vehicles_in_malaysia.html
Please join StudyMode to read the full document