Enron Scandal - 2929 Words

CILM Book Review 0834172 IB3A20 Critical Issues in Law and Management Book Review Enron, Titanic and The Perfect Storm - Nancy B. Rapoport Student No: 0834172 Word Count: 1500 1 CILM Book Review 0834172 Two years after Enron filed for bankruptcy in 2001, Nancy b. Rapoport wrote this essay expressing her unique perspective on the real cause of Enron’s demise. This essay catches the reader’s attention instantly, because unlike abundant other articles written on the biggest corporate scandal in American history, the author here rejects Jeff Skilling’s (former president of Enron) argument1 of what brought about Enron’s downfall. She instead uses another metaphor, arguing that Enron’s downfall was more like Titanic’s-†¦show more content†¦I would go a step further to say that it seems like the author has taken the metaphors a bit too seriously and would agree with Mark’s comment in ‘Lawyers in the Perfect Storm3’ that ‘’her insistence on comparison of the Enron scandal to the tragicomedy of human errors in the sinking of the Titanic underestimates the importance of the systemic failures that allowed the m align leadership of Enron to produce such an enormous disaster.’’ Nevertheless, she develops her further argument well as she explores the inextricable link between Character and Leadership. She elaborates on the inevitable failure of character in Enron leaders to resist illegal deals when the supervisors of those leaders were also engaging in side deals (pg 209). Her close attention to the underlying conflict of human traits and situations, aggravated by the magnitude of profits offered by the Enron culture justifies her statement, ‘why it must have taken significant strength of character to resist getting on that gravy train’ (pg 210). 3 Sergeant, M, .2003. Lawyers in the Perfect Storm, Washburn Law Journal,. pg 3 4 CILM Book Review 0834172 Moreover, the author does not merely conclude her argument, rather deals well with counter evidence as she considers the few people that did resist and play the role of whistle blowers. Her point that ‘most whistle blowers at Enron were suppressed with downright abuseShow MoreRelatedThe Enron Scandal854 Words   |  4 PagesThe Enron Scandal Background Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. Before its bankruptcy on December 2, 2001, Enron employed approximately 20,000 staff and was one of the world s leading electricity, natural gas, communications, and pulp and paper companies, with claimed revenues of nearly $101 billion in 2000.[1] Fortune named Enron America s Most Innovative Company for six consecutive years. At the end of 2001, it was revealedRead MoreEnron Scandal9449 Words   |  38 PagesThe Enron scandal, revealed in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American energy company based in Houston, Texas, and the de facto dissolution of Arthur Andersen, which was one of the five largest audit and accountancy partnerships in the world. In addition to being the largest bankruptcy reorganization in American history at that time, Enron was attributed as the biggest audit failure.[1] Enron was formed in 1985 by Kenneth Lay after merging Houston NaturalRead MoreEnron And The Enron Scandal847 Words   |  4 PagesThe Enron scandal, discovered in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American energy company based mostly in Houston, Texas, and also the dissolution of Arthur Andersen, that was one amongst the 5 largest audit and accounting partnerships within the world. Additionally, to being the most important bankruptcy reorganization in American history at that point, Enron without doubt is the biggest audit failure. it s ever the foremost notable company within theRead MoreThe Enron Scandal Of A Company1193 Words   |  5 Pageswell. What if this company falsifies their records and in a couple of days the company and its stock value go from $90 per share to just a penny per share. You lose your money just because a company cheated and stole your money. This is what the Enron scandal did to thousands of people. It could have been stopped if more forensic accountants in the world are checking on the companies. This way they don’t lie about their stock value. Forensic accountants are in charge of checking business financial recordsRead MoreEnron Scandal1844 Words   |  8 Pagesï » ¿THE ENRON SCANDAL FACTS OF THE CASE Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. Enron s predecessor was the Northern Natural Gas Company, which was formed during 1932, in Omaha, Nebraska. It was reorganized during 1979 as the main subsidiary of a holding company, Inter-North which was a diversified energy and energy related products company. During 1985, it bought the smaller and less diversified Houston Natural Gas company. EmployedRead MoreEnron And The Enron Scandal1387 Words   |  6 PagesEnron, The Shadiest Guys In the Room When you ask young people about the Enron scandal today, most of them have not even heard of it. The fact of the matter is, it is very relevant to young professionals today. Enron is the most recent story of classic Wall Street greed and fraud. However it is still argued today by different stakeholders who are is responsible. This essay will take the viewpoint from multiple stakeholders to use the Enron Scandal as an example to further explain American corporateRead MoreEnron Scandal1477 Words   |  6 Pagesï » ¿Current issue: Scandals in auditing Enron Scandal 1. Introduction Accounting scandals are political or business scandals which arise with the disclosure of financial misdeeds by trusted executives of corporations or governments. These days, not too often, these scandals are splashed as headlines across media. Why? Because there are complex groups of stakeholders who might be seriously affected by the scandals. Enron scam was the most remarkable scandal in 20 centuries by their institutionalizedRead MoreThe Enron Corporation Scandal 1791 Words   |  7 PagesIDENTIFY THE ACCOUNTING PRACTICES THAT WERE ASSOCIATED WITH THE ACCOUNTING SCANDAL. The Enron Corporation failures made world headlines for many reasons ranging from greed from its executives, the alleged malpractice and criminal behaviours, and its quick and disastrous collapse. The most critical factor in Enron’s melt down was the use of creative and manipulative accounting practices to distort reported proï ¬ tability and indebtedness that befell the corporation (A. Holt and T. Eccles, 2002) TheRead MoreEnron Scandal Of Enron Corporation Essay1145 Words   |  5 PagesIntroduction Enron scandal which aroused in 2001 was one of the most famous events in the area of fraud audit. As the auditor company of Enron, Arthur Andersen failed to prepare true and fair auditing reports. They both suffered lethal loss at that time. The following paragraphs will discuss this fraud event, including the organization history, the organization’s event, the fraud issue in the event, the consequence of the main stakeholders, auditors in the event and their roles, and the current situationRead MoreThe Enron Scandal Essay619 Words   |  3 PagesThe Enron Scandal In a front-page article with no less than four by-lines (7/03, Enron Triggers a Slew of Proposed Fixes But What Will Stick? by Steve Liesman et al.), The Wall Street Journal reports, As more than 10 congressional committees pursue inquiries, 32 Enron-related bills have been introduced to address ills ranging from auditor conflicts of interest to the scams of an unregulated derivatives market. The Securities and Exchange Commission pledges to reform accounting rules, get

Annotated Bibliography On Hierarchical Database - 902 Words

Hierarchical Database Kind of database model which is designed in a hierarchy completely access to data beginning at the highest of hierarchical then changes to down such as customer to order. Also this system relation records together same a family tree that each record has just one owner. The hierarchical typical structure has levels which shows one –to – many also relationship between a parent and children divisions. The main key this models which following by each parent can have many children as well each child has simply one parent. This models most common if you compared with network and relational database because can be manage by huge amounts of data for difficult projects. Advantages †¢ Speed very efficiency †¢ Data independence †¢ Database integrity which link between child and parent †¢ Data is simplicity †¢ Very easy to add and delete record †¢ Database pretend a different form environment †¢ Easy to create a large installed Disadvantages †¢ Implement very complex †¢ Implementation limitations †¢ Lack of standards †¢ Program design complexity †¢ Difficult to manage insert, delete and update †¢ Practical access language †¢ Create record must user start at the root †¢ Data redundancy †¢ Create database before the programs must be define Network Database A kind of database organisation system that every record style can have many owner .As well as this model allows for data relationships many way, for instance order are owned by customers and goods. TheShow MoreRelatedAnnotated Bibliography On Hierarchical Database3640 Words   |  15 PagesHierarchical Database Kind of database model which is designed in a hierarchy completely access to data beginning at the highest of hierarchical then changes to down such as customer to order. Also this system relation records together same a family tree that each record has just one owner. The hierarchical typical structure has levels which shows one –to – many also relationship between a parent and children divisions. The main key this models which following by each parent can have many childrenRead MoreAnnotated Bibliography On Hierarchical Database3450 Words   |  14 PagesHierarchical Database It is a kind of database model which is designed in a hierarchy completely access to data beginning at the highest of hierarchical then changes to down such as customer to order. The hierarchical typical structure has levels which shows one –to – many also relationship between a parent and children divisions. The main key this models which following by each parent can have many children as well each child has simply one parent. This model is most common if it is comparedRead MoreAn Examination On Criteria Of Enterprise System Security3105 Words   |  13 Pagesefficiency levels all through the workforce On the other hand, the same number of undertakings are finding, BYOD presents a slate of new security challenges into the association. At the point when representatives unite with organization servers and databases with gadgets that are past the immediate control of the association s IT office, it inescapably hoists the association s danger profile and the volume of unapproved interruption endeavours. For most undertakings, the right arrangement isn t toRead MoreMastering Graduate Studies 1e32499 Words   |  130 Pagescan locate millions of articles using the databases on the library’s website. To become proficient at research, you need to have an understanding of the library databases and how they work. A database is a comprehensive collection of related data organized for convenient access, generally in a computer. The library databases include millions of citations and full-text journal articles, all searchable with keywords. Some multidisciplinary library databases that cover multiple subject areas includeRead MoreDatabase Security28570 Words   |  115 Pages- 1 - Database Security *) GÃÅ"NTHER PERNUL Institut fà ¼r Angewandte Informatik und Informationssysteme Abteilung fà ¼r Information Engineering Università ¤t Wien Vienna, Austria 1. Introduction 1.1 The Relational Data Model Revisited 1.2 The Vocabulary of Security and Major DB Security Threats 2. Database Security Models 2.1 Discretionary Security Models 2.2 Mandatory Security Models 2.3 Adapted Mandatory Access Control Model 2.4 Personal Knowledge Approach 2.5 Clark and Wilson Model 2Read MoreManaging and Organizing for Innovation in Service Firms a Literature Review with Annotated Bibliography30787 Words   |  124 Pagesv i n n o va r e p o r t vr 2009:06 managing and organizing for innovation in service firms A literature review with annotated bibliography annika schilling andreas Werr stockholm school of economics Title: Managing and Organizing for Innovation in Service Firms. A literature review with annotated bibliography Author: Annika Schilling Andreas Werr - Stockholm School of Economics Series: VINNOVA Report VR 2009:06 ISBN: 978-91-85959-47-1 ISSN: 1650-3104 Published: Februari 2009 Publisher:Read MoreLibrary Management204752 Words   |  820 Pagesimportant to remember that they are carried out simultaneously and concurrently. The actual operation of a library or information center follows no precise linear pattern. Most managerial functions progress simultaneously; they do not exist in a hierarchical relationship. For instance, budgeting is not likely to be reflective of the enterprise’s success without some measure of planning in which goals and objectives are established. Therefore, management cannot be viewed as a rigid system, and the conceptsRead MoreThe Essentials of Project Management65719 Words   |  263 Pagesmodifications 12 Managing progress Project progressingas a closed loop control system Progress monitoring and schedule updating - When the news is bad - Corrective measures - Progress meetings - Project progress reports - Project closure 225 Select bibliography Index List of figures The essential processesof project management The process of project definition Part of a project definition checklist A functional matrix for a single project i a n manufacturingcompany Matrix organization for severalRead MoreContemporary Issues in Management Accounting211377 Words   |  846 Pagesa registered trade mark of Oxford University Press in the UK and in certain other countries Published in the United States by Oxford University Press Inc., New York ß Oxford University Press 2006 The moral rights of the author have been asserted Database right Oxford University Press (maker) First published 2006 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior permission in writing of OxfordRead MoreHbr When Your Core Business Is Dying74686 Words   |  299 Pageson a common theme. The articles include full-text Harvard Business Review articles plus a summary of key ideas an d company examples to help busy managers quickly absorb and apply the concepts. Each OnPoint enhanced article also includes an annotated bibliography. ORDER BACK ISSUES TODAY www.onpointhbr.org Harvard Business Review OnPoint Executive Edition is published quarterly and available only at select newsstands and on our website. It is not available by subscription. WWW.ONPOINTHBR.ORG

Lead And Manage Effective Workplace †MyAssignmenthelp.com

Question: Discuss about the Lead And Manage Effective Workplace Relationship. Answer: Role-Play Oliver (Manager for Retail) - Good Morning, I have known you for sometime therefore I believe you can understand my problems and anger, the employees are not doing their job properly and to my knowledge they are not even well trained. Lucas (HR Business Partner) - You look very angry, first you need to calm down. I can understand that this problem is very important to you and you are disturbed because of it. Oliver (Manager for Retail) Yes I will calm down, but first they should learn how to behave and do their work properly. Further I am concerned about the business structure and henceforth I believe that we should recruit people who are well aware of their job. Lucas (HR Business Partner) See right now you are so angry that you want a solution right now, but these things do not work like this. I understand that the problem is big but in order to get a proper solution, I have to talk to my seniors and several board members needs to be addressed. Oliver (Manager for Retail) Fine, but the employees should be trained properly otherwise it is impossible to work with them. Lucas (HR Business Partner) Of, course action will be taken, I will take this problem with the board members and I will tell them about this entire problem that you are talking about and try and make some changes in the stricture of the business. I am glad that you spoke up. Oliver (Manager for Retail) Lucas (HR Business Partner to Rentals manager) - Good morning Sir, I guess you already know why am I here. There have been problems within the employees which I believe need immediate attention of ours. They are claiming that the employees are not well paid and also not well aware of their work. They are turning against each other so we have to put a new organizational program and set some kind of rules and activity to make it stop. James (Retail Manager) So what exactly is your plan. How exactly do you think you will proceed? Lucas (HR Business Partner) As you can see our company is trying to get overseas suppliers, this will help the company to expand and can give a good competition to their competitors. Over the last five years the growth rate of sales has been 10% per year. The rental market has been turned down due to the reduced cost in these vehicles and also because of some taxation. I believe we have to come up with a new strategic plan and in order to prevent further dispute. There should be a communication program which will help people to tell their problems and communicate with each other. James (Retail Manager) I agree, well we can proceed with this plan for now but hearing the problems, it can build up to a huge disaster, ending up in strikes as well mass resignation. Therefore we have to hold meetings both with the board members as well as with the staffs and employees. What do you say? Lucas (HR Business Partner) Yes I completely agree with that, in order to improve both the internal and external factors of the company, I believe we have to take up actions, even we can start a leadership program so that there can be an improvement in the behavior of the people. James (Retail Manager) But why do you think all this disputes are happening, what is the reason behind this chaos? Lucas (HR Business Partner) There can be a lot of issues here, first somehow they got to know that the other companies are paying better for the work they are doing here. So there is a need of increasing the salary otherwise we might just lose our employees. Secondly, it is possible that there can be a problem regarding the understanding of the job, it might happen that there are employees who are good at their work on the other hand there are se who are average or weak, this might bring down the performance of the good employees as well, that causes the grievance In that case I believe there should be program from where we can select the employees who are good at their job and ask him to help or direct the ones who are falling back, in this way the employees will get a help from each other and it will also give a sense of responsibility for each one of them. James (Retail Manager) So what programs and necessary changes do you think we should start immediately? About increasing the salary there can be a problem regarding that as I have to speak with the board of members. The increment of salary depends on the production of work, if they continue to create unnecessary dispute among themselves then I do not see that there is any reason to increase their salary, so I am not supporting that cause. Lucas (HR Business Partner) Fine, but we have to understand that if employees start resigning, especially the old employees, then it will put a bad reputation on our company, I understand what you are saying, therefore we will held those meetings and in fact after taking all those new actions, and creating a leader, we can tell them that if they prove to give a good sales rate that we will observe in the next 2 months then there is a probability of good service and even improvement in the behavior. The meetings should be held as quickly as possible and the leadership program should start as soon as possible. James (Retail Manager) Okay, this idea is justifiable and can be considered. We can start taking steps in order to improve both the internal and external environment of the company. If this brings positivity in the company and keep the company in profit then of course this will be taken into consideration. Lucas (HR Business Partner) Thank you, for accepting my proposal. References Buller, P. F., Finkle, T. A. (2013). The Hogan entrepreneurial leadership program: an innovative model of entrepreneurship education.Journal of Entrepreneurship Education,16, 113. Dash, M., Bakshi, S., Chugh, A. (2017). The Relationship Between Work Experience and Employee Compensation: A Case Study of the Indian IT Industry.Journal of Applied Management and Investments,6(1), 5-10. Davis, R., Franks, D. M. (2014). Costs of company-community conflict in the extractive sector.Corporate Social Responsibility Initiative Report. Harvard Kennedy School, Cambridge, USA. DeMarr, B. J., De Janasz, S. C. (2013).Negotiation and dispute resolution. Prentice Hall. Johnson, C. E. (2017).Meeting the ethical challenges of leadership: Casting light or shadow. Sage Publications. Latha, K. L. (2013). A study on employee attrition and retention in manufacturing industries.BVIMSRs Journal of Management Research (BJMR),5(1), 1-23. Martin, A. W., Dixon, M., Nau, M. (2017). Coalitions and the Bottom Line: Strikes, Allies, and Company Stock Returns.Social Currents,4(4), 322-341. Northouse, P. G. (2015).Leadership: Theory and practice. Sage publications.

Control Mechanisms and Performance Measurement Standards of PGB Essay Sample free essay sample

Control mechanisms and public presentation measuring criterionsa ) Control mechanismsControl mechanisms can be defined as optical. mechanical. or electronic systems that are used in order to pull off and command variables in a desirable manner. The maps of control mechanisms by and large can be categorized into planning. taking. forming and commanding. Control mechanisms play an of import function in every organisation particularly in heightening the predictability of an organisation. In PGB. acceptance of Corporate Financial Policy ( CFP ) has been approved by Board with the chief intent of pull offing fiscal hazard exposures of PGB which includes liquidness hazard. foreign exchange hazard. and counterparty hazard. The diagram above is demoing that the in PGB. Risk Management Department ( RMD ) is required to describe updates on a regular basis to the PGB Management Committee ( MC ) and it will be farther transferred to Board Audit Committee ( BAC ) in the signifier of the quarterly Enterprise Risk Report ( ERR ) . In ERR. it chiefly includes the overall PGB’s hazard profile and position of hazard extenuation execution. Furthermore. PGB INTERISK system will enter all the updates such as hazard extenuation actions. unexpected hazard events and hazard evaluation from its concern. During this long procedure. we do happen many hints in internal control statement of PGB one-year study 2011 that PGB relies on many control mechanisms in its hazard direction to extenuate its fiscal hazard. As the gas processing and gas transmittal are the nucleus concern of PGB. PGB is covering with many long term undertakings such as Kimanis power works undertaking which is expected to be completed in the terminal of this twelvemonth or early of following twelvemonth and development of the LNG regasification works in Melaka. Hence. sophisticated and proper control mechanisms for PGB are really of import in guaranting that the undertakings are on path as expected without any liquidness jobs. Undertaking Risk Management ( PrisMa ) system can be considered as a critical control mechanism in PGB to guarantee efficient coverage and monitoring. It recorded all the utile information sing to the undertaking hazard direction like lessons learnt. independent reappraisals and hazard appraisals. In this PrisMa. undertaking directors are needed to update the position of their undertakings implemented and describe them to their several caput of division. After that. all the studies updated will be transferred to General Manager of the Technical and Facilities Development Division ( GM. TFDD ) every month. By making this. PGB able to measure the advancement of its undertakings and take immediate actions in order to cut down the hazard exposures involved. Undertaking hazard direction of PGB is closely related to its liquidness hazard direction because equal hard currency and hard currency equivalents are needed to cover the regular disbursals of the undertakings in long term. However. PGB is less likely to confront any liquidness jobs in its undertaking hazard direction as it is keeping sufficient hard currency and liquid marketable assets with aid from Project Risk Management ( PrisMa ) system. Furthermore. PGB’s hazard direction section ( RMD ) has besides developed in-house Growth Risk Matrix in back uping the determination devising in new concern ventures. In this Growth Risk Matrix. the hazard appraisals of new concern ventures will be listed in tabular array in order to gauge the possible inauspicious effects will be incurred. Besides. control mechanisms besides have been found in the recognition direction of PGB which is called as Petronas’s Credit Risk Rating System. The aims and maps of this system are to analyze the recognition worthiness of all the PGB’s external clients and assign recognition evaluation for them. Besides. information in the system will be updated every twelvemonth based on the latest fiscal place of its external clients. Therefore. PGB can detect the marks of fiscal hurt of its external clients at earlier phase and holding readying on such state of affairs and therefore cut down its recognition hazard involved. Besides. recog nition hazard study will be generated by PGB RMD on a monthly footing and it is wholly independent analysis with the Petronas’s Credit Risk Rating System. In the study. Credit Value at Risk ( CVaR ) . a measuring of possible loss from customers’s delinquent balances. will be compared with Credit Risk Tolerance bound ( CRTL ) in order to guarantee that CVaR is greater than CRTL. Unfortunately. PGB is till inefficient in its debitor direction with the increasing entire receivables past due more than 90 yearss from March 2011 to December 2012 as discussed earlier. Hence. PGB should develop a more specific control mechanism in debitor aggregation direction in order to cut down its recognition hazard. In pull offing counterparty hazard. Contractor Risk Assessment ( CoRA ) is an inevitable procedure to measure and measure the making of the contractor. PGB’s Project Supply Chain Management ( PSCM ) Department and PETRONAS Group Shared Material and Services Organization ( SMSO ) will carry on proficient and evaluation appraisal before award the contract to the contractor. As mentioned earlier. derived functions have been used by PGB in pull offing its foreign exchange hazard. PGB is come ining into Currency Exchange Agreement ( CEA ) . which is an embedded derivative contract with its parent company in order to fudge against the foreign exchange hazard between Yen and Ringgit Malaysia. In order to find how efficiency is PGB in pull offing its fiscal hazard. its rival. Shell Refining Company ( Shell ) will be used once more for comparing intent. In FYE 2011. both companies did non incur any critical losingss resulted from failings of internal control. For Shell. all the updates of company hazard profile. hazard reaction and actions taken. confidences are all documented in the Risk Register and Assurance Plan. However. specific control mechanisms can non be found in internal control statement of Shell. Shell is following a more traditional method in pull offing its fiscal and other hazard. On the other manus. PGB is evidently better in its hazard direction by holding different specific control mechanism to pull off different fiscal hazard involved. For case. Petronas’s Credit Risk Rating System is specially designed information system to pull off its recognition hazard. It indicates that the control mechanisms or information system of PGB in hazard direction is stronger and more efficient than Shell. Hence. it allows PGB to be more decisive and faster in doing a right determination when covering with fiscal hazard. B ) Performance measuring criterions Cardinal Performance Indicators ( KPI ) or Cardinal Success Indicators ( KSI ) helps an organisation to specify and mensurate advancement toward organisational ends. Besides. a KPI is besides can reflect the critical success factors of an organisation. PGB’s administration process has been introduced the administration of Health. Safety and Environment ( HSE ) as Cardinal Performance Indicators ( KPIs ) . They will be assessed based on the public presentation of their several businesses’ Fatal Accident Rate ( FAR ) . Lost Time Injury Frequency ( LTIF ) . Major Loss of Primary Containment ( LOPC ) incidents and major fires. The inclusion of these KPIs will assist drive betterments in PETRONAS’ procedure safety and capableness public presentation. For PGB. safety plays a really of import function as a cardinal forces country for the oil and gas industry since the accident happened in 2010 – Gulf of Mexico. They are committed to the highest safety and wellness criterions through the restructuring of Group Health. Safety and Environment Division ( GHSED ) to enable their Business Unit of measurements to hold greater answerability. They try to fastening and reexamining the procedures and processs in order to guarantee the hazards posed to people and the environment are minimized. and extenuating steps can be fleetly employed in the event of an incident. As good. the chief intent of GHSED is to heightening HSE public presentation in sequence to extinguish concern hazards and exposure and maintain consistence in the execution of HSE criterions and demands. As the specific KPI in PGB is limited. we decided to utilize other public presentation measuring criterions such as portion monetary value. hard currency flow and fiscal ratios to mensurate the public presentation of PGB. Share Price As mentioned in the one-year study. PGB is peculiarly attention about the shareholders’ involvement. Shareholders’ nonsubjective decidedly is increasing their wealth. In order to accomplish this aim. fiscal public presentation of the company is decidedly being the critical portion. This indicates that the PGB’s portions monetary value is the contemplation of the company’s fiscal public presentation in the perceptual experience of the stockholders. Hence. the absolute criterion of public presentation measuring is the portion monetary value. PGB used KLCI as the benchmark for this index. We could see this hint from the page 81 in one-year study. A better portions monetary value public presentation than KLCI would bespeak a better fiscal public presentation of the company. The ability to surpass KLCI is the testimony of investor assurance in PGB’s fiscal strength. operational public presentation and growing potency. Hence. portion monetary value could supply some steps on how is the company’s fiscal public presentation. During the period 1st Apr 2011 to 31st Dec 2011. PGB’s portion monetary value appreciated by 32 % while KLCI decreased by 1 % in the same period. Why portion monetary value increased? There are many replies. but most of the replies related to the PGB’s fiscal public presentation and future chance. As the cardinal analyst would utilize fiscal records of PGB to measure the PGB’s portions. the fiscal public presentation decidedly reflected in the portion monetary value. That’s why portion monetary value is the chief index. Cash Flow from Operating. Investing. and Financing Activities In one-year study page 168. it’s demoing the PGB’s direction made their segments’ public presentation appraisal based on operating net income or loss in amalgamate fiscal statement. This shows that PGB values their operating net income and uses it as public presentation index. However. operating net income might non reflect the liquidness public presentation such as debitor direction ; it would non be a good public presentation index. Cash flow would be a better index compared to net net income. The hard currency flow derived from the net net income and takes into history the liquidness direction consequence. The fluctuation of hard currency flow from twelvemonth to twelvemonth decidedly is the consequence of the company’s fiscal public presentation particularly in the liquidness public presentation. It besides reflects the consequence of PGB’s capital construction and working capital attack. Therefore. comparing every twelvemonth hard currency flow could supply the fiscal public presentation of PGB. For case. the twelvemonth to twelvemonth hard currency flow from funding activities could reflect how the alteration in funding cost was. This related to the PGB’s capital construction and provides indicant on the capital construction public presentation. Therefore. hard currency flow from these 3 activities can be the fiscal public presentation index. Financial Ratio In order to accomplish a better public presentation measurement criterion. we will utilize the mean ROE. ROTA and P/E ratio within the industry. The tabular array below is demoing the fiscal public presentation of all companies in the industry of oil and gas-refining and distribution. company| Market capital ( RM in 1000000s ) | ROE ( % ) | ROTA ( % ) | P/E ( times ) | PETGAS| 20. 961. 879| 12. 769| 10. 286| 32. 970| SHELL| 2760. 000| NIL| NIL| NIL|GASMSIA| 3299. 880| 11. 539| 5. 634| NIL|PETDAG| 20961. 879| 13. 750| 7. 770| 31. 780|ESSO| 893. 700| 17. 377| 6. 056| 5. 830|PENERGY| 315. 315| 1. 023| 0. 435| 91. 880|Average| | 13. 859| 7. 437| 23. 53| Beginning: OSK database based on the latest fiscal statements of the several companies Note1 ) SHELL will be excluded in ciphering all mean figures because the information is non available due the loss made in last FYE. 2 ) The ROE and ROTA of PENERGY which are highly low and P/E which is highly high in the industry will non be included to forestall the industry norm figures mislead by merely one company. 3 ) GASMSIA will be excluded in ciphering mean P/E ratio because the net incomes of its first FYE is still unknown since it has merely listed in the Bursa Malaysia. Return on Equity ( ROE ) Tax return on Equity = Net Income / Total EquityTax return on equity ( ROE ) measures a company’s profitableness by uncovering how good the company generated income by utilizing stockholders part. As company’s chief aim is to maximise stockholders equity. ROE provides an insight towards company’s net incomes derived from each dollar of investor equity. In the industry. ROE of PGB. 12. 769 % is somewhat lower than the mean ROE which is 13. 859 % . The chief ground is due to PGB rely to a great extent in equity funding instead than debt funding which explained earlier in its support direction. Hence. all the net incomes will be distributed out for a immense sum of equity which will take to a lower ROE of PGB. Hence. if the PGB able to raise financess from external adoptions which is lower cost in nature instead than equity. it would take to a lower cost of capital of PGB and therefore heighten the fiscal public presentation of PGB. Return on Total Assets ( ROTA ) Tax return on entire plus = Net Income / Total Net AssetROTA can be treated as an index of how efficaciously a company is using its entire net assets to bring forth returns before it pays its contractual duties. In industry. ROTA of PGB which is 10. 286 % is higher than the mean ROTA which is7. 437 % and it is besides the highest within its industry. It indicates that PGB is the most efficient company in bring forthing returns based on its entire net assets within the industry. The chief ground likely is due to its all clip high turnover of RM3. 525 million in FYE 2011. Price per Earnings Ratio ( P/E ) P/E Ratio = Price per Share/ Earnings per ShareP/E ratio is the most common method in valuing a company used by the investors and fiscal analyst. P/E is besides referred as the â€Å"price multiple† . as it bespeaking by how much investors are willing to pay per dollar of net incomes. Basically. the higher the P/E. the higher growing of return investor expected from the company for each dollar they invested. The P/E ratio of PGB which is 32. 970 times is higher than the mean industry P/E ratio which is 23. 53 times. It merely means that investors willing to pay 32. 97 times for every RM earned by PGB. Besides. a higher than mean P/E ratio besides indicates that investors are anticipating PGB able to execute better than other companies in the hereafter. Net incomes per Share ( EPS ) EPS = ( Net income – Preferred Dividend ) / No. of Share Outstanding The comparing of EPS within the oil and gas-refining and distribution industry is non available in OSK database. However. EPS is one of the of import indexs in mensurating a company’s fiscal public presentation. Hence. we will compare the EPS of PGB with the Shell from FYE 2009 to 2011. PGB| SHELL| 2011| 2011| 2010| 2009| 2011| 2010| 2009|54. 6 cents| 72. 7 cents| 47. 6 cents | 46. 9 cents | -41. 9 cents | 35. 5 cents | 96. 6 cents | By and large. the higher the EPS ratio. the better company public presentation compared to old period. From the tabular array above showed that EPS of PGB has increased year-on-year from FYE 2009 to FYE 2011. This could be largely due to the better direction of their operating costs. decreased by 15. 0 % from RM2. 043. 5 million in FYE 2010 to RM1. 737. 8 million in FYE 2011. The reduced of RM305. 7 million was due to cut down of 23. 7 % for operating cost incurred for the throughput services. On the other manus. SHELL’s EPS has decrease year-on-year and generate 41. 9 loss per RM1 unit of portion ( sen ) in FYE 2011. This may chiefly due to additions in the planetary petroleum monetary values following supply restriction as a consequence of the Japan energy crisis and middle-east geopolitical tensenesss. caused an increased in cost of gross revenues by 11 % year-on-year from RM10. 2 billion in FYE 2010 to RM11. 3 billion in FYE 2011. [ 2 ] . Kamarul Yunus. N2012. ‘Petronas Gas fired up on power plants’ potential’ . Business Times. May 16. viewed on 20th 2012.