CHARACTER:

1.Encik Zayed - Principal shareholders - Managing Director

2.Puan Hashimah - Principal shareholders - Chief Operating Officer

3.Puan Balqis - Operations Manager

4.Encik Salam - Human Resource and Administration Manager

5.Cik Amy - Finance Executive (from May 2006) -No working experience

6.External Auditor - Auditor Aziz & Co- to perform statuary audit (2003-2006)

SUMMARY
Delima Enterprise Sdn Bhd. was founded by En. Zayed in 1981. It conducted trading and supplying related products including manpower supplies to the oil and gas industries. The two principal shareholders and controlling directors were En. Zayed and Puan Hashimah. The company’s corporate mission was to become a leading service contractor and provide quality products and also excellent services. In this Delima case, the company had secured a contract worth RM 750,000 to be implemented over duration of 6 months in May 2006. Due to shortage of fund, the company needs to apply loan from Malayan Banking Berhad and CIMB totalling RM 1 million. In order to get the loan, they had to provide audited financial statement for the last two years. In July 2006, En. Zayed engaged the external auditor Aziz & Co. to perform the statutory audit for period 2003 to 2006.

SWOT ANALYSIS STRENGTH | WEAKNESS | Delima Enterprise had become a leading service contractor and provides quality products and excellent services. Since 2006, the company had been awarded with several engineering projects and its cumulative revenue for 2004 and 2005 were nearly RM 1.0 million and RM 1.7 million respectively. | There are weaknesses in management. The board director appoints employees from their family members and some did not have the necessary job experience. The documentation records were not properly kept and no procedures and financial system were in place and lacked of internal