DUE DILIGENCE ON TROUBLED COMPANIES - A SIMPLE GUIDE BY NIK ZAFRI

 BASIC PRINCIPLES OF DUE DILIGENCE (ON TROUBLED COMPANIES)

Due diligence on a troubled company requires a particularly rigorous and comprehensive approach. It involves delving deeper into potential risks and liabilities than a typical due diligence process.  See the table below - please expand further. (Remember : It's not as easy as it looks)

hashtag#DueDiligence hashtag#Audit hashtag#RiskAssessment hashtag#RiskManagement 

MAKE SOME INCOME (By Nik Zafri)

The strategies employed to invest and increase income are often complex and multifaceted when it comes to "practical".

However, I found some common themes emerge all the time which I sum up as the core investment strategies.

1) Diversification

Spreading investments across various asset classes (stocks, bonds, real estate, commodities) to reduce risk is one good move.

2) Long Term Perspective

Always focus on building income over time rather than quick gains. In short, greed will make you lose, so be patient.

3) Leverage

When you borrow, increase them on potential returns - it's risky but once you strike, it's worth. You can also get ASB loan and let them invest or reinvest for you. In the long run, you might get handsome returns

4) Get a good advice

Although Warren Buffet might not agree with me, but if you can afford it especially when you have no experience, it's logical to employ financial advisors or wealth managers to handle investments.

5) Always pay tax but optimize them

Draw up a good strategies to minimize tax liabilities but never avoid from paying tax

There are quite a number of investment vehicles.

1) Stocks and Bonds

Investing in publicly traded companies and if you have heard of government debt, go for them.

2) Real Estate

Own properties for rental income or appreciation.(REIT)

3) Private Equity and Venture Capital

Investing in startups and private companies.

4) Hedge Funds

Pooled investment funds that use various strategies to generate returns.

Alternative Investments can be purchase of assets like art, collectibles, and commodities.

Additional Soft Income-Building Sources

1) Business Ownership - Creating and growing businesses.

2) Intellectual Property - Developing and protecting patents, copyrights, and trademarks.

3) Inheritance - if you come from a rich family.

4) Risk-Taking - Pursuing high-reward, high-risk ventures.

5) Networking - Building relationships with influential people.

Also, think the way successful people think.

You must have access to information for e.g. exclusive investment opportunities and market insights

You must adopt a risk tolerance attitude - allowing yourself to pursue higher-return investments.

Have a long term perspective (Time Horizon) - enabling yourself to weather market fluctuations.

Good luck, just sharing my perspective from my so-called research. No guarantee of success unless you really work hard and do not let failure stop you. Remember, investing involves risk, and past performance is not indicative of future results. Just conduct thorough research or consult experts before making investment decisions.

REFRESHER – BRANDING – WHAT IS IT REALLY – Overview by Nik Zafri

A look back into the branding trend.

Branding is the process of creating a unique identity and image for a :

a) product,

b) service,

c) company, or organization in the consumer's mind.

It involves the use of names, logos, slogans, designs, and other elements to distinguish a brand from its competitors and to establish a presence in the market. The goal of branding is to build recognition, trust, and loyalty among customers.

There are several types of branding, each serving a different purpose:

Industries that Use Branding

Branding is essential across various industries, including but not limited to:

Retail, Consumer Goods, Food and Beverage, Technology, Healthcare, Entertainment, Fashion, Automotive, Finance, Travel and Hospitality, Real Estate

Suppliers and Consultants for Branding

Branding suppliers and consultants are typically specialized agencies or individual experts who provide services to help companies develop and manage their brands.

These services might include:

• Brand Strategy Development
• Market Research 
• Logo and Identity Design
• Brand Messaging and Positioning
• Digital Marketing and Online Branding
• Packaging Design
• Public Relations
• Advertising Campaigns
• Social Media Management
• Content Creation

These agencies often have a global presence and work with large corporations, but there are also many boutique agencies and freelance consultants who specialize in branding for smaller businesses and specific niches.

PROCESS-BASED AUDIT OR ELEMENT-BASED AUDIT?

After decades of experience in auditing, I prefer conducting "process-based" audits and assessments(as outlined core business process in my client's manual) rather than "element/clause-based audit" sequence. It makes me easier to assign specific to my auditor team based on their expertise and lots of time saving. This is a sample how I draw up my guiding principles/sort of tabular/checklist. You can fill in the blanks and expand the table to tailor it to your specific requirements or the industry you are assessing.

Kursus Pencegahan Risiko Penggubahan Wang Haram serta Pembiayaan Keganasan dan Pengurusan Dana Awam

Kursus Pencegahan Risiko Penggubahan Wang Haram serta Pembiayaan Keganasan dan Pengurusan Dana Awam

Jaringan Kerjasama Jabatan Pendaftaran Pertubuhan Malaysia, Bank Negara Malaysia dan Suruhanjaya Pencegahan Rasuah Malaysia

Ianya dihadiri oleh lebih 300 orang peserta dari NPO/NGO, Koperasi, Yayasan, kakitangan-kakitangan SPRM dan BNM dll.

Penghargaan saya kepada Presiden dan Pengasas Pertubuhan Wanita dalam Urustadbir dan Teknologi Malaysia (WIGTA), Puan Tetty Henney binti Zulkifli

ARCHIDEX 2024 - A GREAT WORLD CLASS EVENT

#Archidex2024

Archidex 2024 was really great. Both me and the Managing Principal of NOMA SWO CONSULT, Ybhg Madam Hajjah Tetty Henney had a great time. The exhibitors products, booth and mockups are fantastic. Unfortunately couldn't make it to all exhibition halls (700 exhibitors from 15 countries/regions) Many of them are award-winning exhibitors/products/companies.

I can only name few of the that caught our attention :

1) Cheng Ho International Construction Materials Sdn. Bhd. (Sustainable Construction - Methods and Benefits) - Bamboo Flooring, piping system, water treatment, range of pumps, PPR HDPE siphone drainage etc. (some of their products may require specific standards rather than depending on factory specs.)

2) ZEQ Holdings Sdn Bhd. (Stunning Islamic Design and Architecture) mostly for famous mosques in Malaysia. CPC/PVC Celuka Panel is known for noise reduction, water and fire resistant etc.

3) Foliage /FAP International Sdn. Bhd./Jonite - interior and varieties in landscape design, architectural and decorative stone grates, tree grates and street furniture. What fascinates me is Sustainable Urban Drainage Systems (SUDS) which is a little different from prevailing SUDS I've seen)

4) Backley Homes LLC/Lumbermart (Handycraft Wooden Accessories - Pastry/Carving Boards, Serving Platters, Small Wooden Accessories, Customised Versions of Wooden Accessories, Flooring (patented ventilated Batten System), Decking, Panelling, Door, Kitchen Worktop/Cabinet and Furniture solutions)

5) EcoClass - with a wide range of PU Stones, Fluted Wall Panels, Metal Board etc.

6) Suzuka - Strato cashmere/tafeeta, cement textures/velours, stone veneer collection/Kastone Edge, Trowel Stone, Kreterra, Kast Panel/Concrete Effect Panel, ECES (Exposed Concrete Effect System), Kastone/Brick Veneer Collections.

7) Genisis Technology Sdn. Bhd. (Architectural Insulation Solutions) - Cellulose Spray on Thermal and Acoustic Insulation

8) Maxi Stone Marketing Sdn. Bhd. (natural stones products) - brings beauty to any building or landscape through colours, texture and durability.

9) Stal Industries Sdn. Bhd. (chairs, wood collection, stools, lounge chars, table bases and benchers)

10) Deltric Art Design Sdn. Bhd. (wall sculpture, hand painted oil painting and various sculptures - picture/mirror frames and artworks.

11) Vintage Artistic Corporate Sdn Bhd. (VAC Art Gallery) - with products such as Oil Painting, Prints, Sculptures etc.

12) Rtree (Water Resistant/Fire Retardant Board)

13) Taraflex (Sports Flooring - a unique complex of calendered PVC sheets reinforced with fibreglass offering durability and dimensional stability)

14) Ximu /Inception (wood slabs, furniture with series of dining room, living room, bedroom, home office etc)

15) Sunway Building Materials Group - which I think requires no introduction.

Overall - all are great participants. We hope to expand our network with many of these companies to suit our clients in the construction sector. 

QUALITY ASSURANCE - QUALITY CONTROL 101 - Short Article by Nik Zafri

I've noticed that many people still confuse Quality Assurance and Quality Control. Let me reclarify this with an example using "defects." I've created a table for QA/QC 101 to illustrate the differences.

KEY DIFFERENCES

Proactive vs. Reactive - QA is proactive, focusing on preventing defects by improving processes, while QC is reactive, focusing on identifying and fixing defects in the product/during project operation

Scope - QA is broad, encompassing all activities related to the implementation of processes, while QC is narrow, concentrating on specific outputs (products or deliverables).

Responsibility - QA is a responsibility of everyone involved in the development process, whereas QC is usually the responsibility of a specific team.

Both QA and QC are essential for ensuring high-quality products/projects and processes, but they serve different purposes and are implemented at different stages in the development lifecycle/project operation.