Malayn Fllour Mills Berhad Case Study

In Malaysia, Malayan Flour Mills Berhad (MFM) is a pioneer in the wheat flour milling industry. On 15 October 1966, the first Malaysia Prime Minister, the late Tunku Abdul Rahman was officiated the opening of the RM40 million modern flour mill at Lumut, Perak. The realisation of a long cherished dream of the mill’s founder, the late Datuk David L.F Sung had leaded to the opening of mill. Datuk Sung was a well-known banker and industrialist of Hong Kong before started operating mill business. Besides, Datuk Sung found that Malaysia can be an ideal environment to establish a modern flour mill in order to serve the local market’s requirements. By the way, the facility that Datuk Sung established became an icon in the flour-milling industry.
Malayan Flour Mills Berhad is engaged in the business of milling and selling wheat flour as well as trading in grains and other allied products. The Company operates its business in three different segments which included flour and trading in grains, feeds and trading in feed ingredients, and poultry integration. The Vision of Malayan Flour Mills Berhad is to aspire to be a leading food manufacturing enterprise in the region while there are three Mission that had

The audit report stated that the accompanying financial statements give a true and fair view to the financial position of the Group as at 31 December 2016. Moreover, the financial performance and cash flows for the year ended are in accordance with Malaysia Financial Reporting Standards and the requirements of the Companies Act 1965 in Malaysia. The auditors have identified that the recoverable amount of the investment in the joint venture as a key audit matter for the Company. This is because the recoverable amount is based on estimated future cash flow projections that involved judgements and assumptions about the progress and future results of the joint