REPORT AND RECOMMENDATIONS FOR MORTONS ENGINEERING LTD
REPORT AND RECOMMENDATIONS FOR MORTONS ENGINEERING LTD TO: MANAGING DIRECTOR OF MORTONS ENGINEERING LTD FROM: AMY JACKSON PRODUCTION ASSISTANT INTRODUCTION Mortons Engineering Ltd manufacture and supply parts for the railway industry. This report is designed to look into modernising and restructuring the production line. This will involve the purchase of a new computerised system, which will enable the company to expand its current level of output. Using the current level of output and production to forecast cash flows, the three systems will be evaluated using investment appraisal and recommendations made as to which one will be best suited to Mortons engineering Ltd. METHODOLOGY Investment appraisal (also known as project appraisal) is used to make financial decisions on whether or not to invest in a project. It is a methodology for calculating the expected return based on cash flow forecasts of many, often inter-related, project variables. Risk emanates from the uncertainty encompassing these projected variables. The evaluation of project risk therefore depends, on the one hand, on our ability to identify and understand the nature of uncertainty surrounding the key project variables and on the other, on having the tools and methodology to process its risk implications on the return of the project. A capital investment decision is like any other decision with
Analysis of David Jones Concise Annual Report. Study of issues from both Director's and Banker's perspective.
Analysis of David Jones Concise Annual Report Study of issues from both Director's and Banker's perspective This report is a review on the current and future prospects of David Jones from both the Director's and Banker's perspective. Information in this report consists of data from David Jones website and the common size industry. The initial section addresses the issues from a Director's perspective and the later section dwells on focus areas from a Banker's view. Conclusion includes evaluation on the identified issues and analysis on the future prospects for David Jones. (All figures stated in the report are in thousands ('000), unless otherwise specified.) EXECUTIVE SUMMARY (FY03 Financial Performance in brief) David Jones reported net profit after tax is $42.7 million in FY 2003. It is an increase of 20.2% compared to the previous year's NPAT of $35.5 million. The full year earnings before interest (EBIT) along with significant items for the department store and credit card businesses were $69.6 million. This signifies a 2.3% increase on the EBIT. The Total sales figures reported were $1.711 billion, depicting an increase of 2.6 % from $1.668 billion in FY 2002. Profits are generated from the core businesses consisting of the department store and credit card business. Final FY2003 result is impacted by a number of difficult decisions made during the three months
Report on Bass PLC
Report on Bass PLC We as a group have decided to assess the financial performance of Bass PLC, in the form of a report. Bass PLC has extensive interests in hotels, leisure retailing and branded drinks. It owns Holiday Inn and Inter-Continental Hotels, Bass leisure retail and Britvic Soft Drinks. We have decided to write this report using five main aspects of performance, Profitability, Efficiency, Liquidity, Gearing and finally investment. In 1997 the group turnover was £5.25 billion pounds, an increase of £145 million pounds from the previous year. This clearly indicates that the group is steadily growing and our first impressions of the group are that it is in a strong financial position. We split profitability into three main ratios. We found that the figures on which the ratios are based may have be distorted by inflation causing an overstatement of profit and an understatement of asset values. For 1997 the return on capital employed was 15.7% an increase of 1.4% from 1996 which stood at 14.3%. We discovered this to be a fundamental measure of the Bass groups performance showing the relationship between the net profit generated and the long term capital invested in the company. The second ratio we consulted for our assessment of the profitability of Bass is the net profit margin which was 11.7% in 1996 but has decreased to 7.0% in 1997. This shows that Bass are trying
Company pensions - Bitten More than Can Be Chewed?
Company pensions Bitten More than Can Be Chewed? Probably each of us would like to have a nice retirement. Probably most of us will need some sort of money for realization of that desire. And this consequently requires (again, for most of us) to create some form of saving during our productive age. One form of such saving can represent the occupational pension which is provided by our employer. Occupational (also called company) pension is a fund to which both employees and employers contribute and as explained e.g. by Peter Howells and Keith Bain in their book Financial Markets and Institutions, chapter 4.2, such fund can be basically of two types. First one is called "defined contribution" arrangement (DC) (also money purchase) and is based on a system upon which each employee makes a fixed contribution into the scheme and accumulated fund is invested. The later pension payments are determined by what happens to the fund's investments. This causes an uncertainty for employees and less pressure on company and the trustee board which runs the company pensions. The second type of arrangement called "defined benefit" (DB) (also final salary) scheme is more favourable for employees, less then for the employer. The basic distinction compared to DC lies on fact that DB scheme specifies at the outset what a pensioner can expect to receive, provided he or she maintained the
Klaxon Limited.
SCHOOL OF TECHNOLOGY & MANAGEMENT AFFILIATED TO UNIVERSITY OF EAST LONDON (UEL) ASSIGNMENT MANAGEMENT OF FINANCE BY SHARAD AGARWAL STUDENT ID - 292RDRDEN03 COURSE - MBA (INTAKE- NOVEMBER'03) EXAMINER : PROF VIJAY SHENAI TABLE OF CONTENTS * INTRODUCTION Pg. 1 * PERFORMANCE COMPARISON Pg. 2 - 7 * RESTRUCTURING OF BALSNCE SHEET Pg. 7 * CONCLUSION Pg. 8 * APPENDIX Pg. 10 * REFERENCE Pg. 11 Klaxon Limited Introduction: On basis of the Profit and Loss statement and Balance sheet, a report is prepared to compare the performance of Klaxon Limited in year 20X3 vis a vis performance in year 20X1 and 20X2 and against the firms in the paper and packaging industry. As Klaxon Limited is planning to raise capital through an equity Issue in the near future some changes have been suggested, so that the equity issue is a successful one. PART A The following has been noticed in the account statements of Klaxon limited * The sales have increased by almost 50% from the year 20X1 and 25 % from 20X2 in the year 2003. As a result of which the other direct and indirect costs have also gone up. * Indirect costs such as distribution expenses have constituted 15.12 % in 20X1, 13.26 % in the year 20X2 and 17.62 % in the year 20X3 of the sales revenue. This is more or less in proportion to the sales in the respective years. Administrative
Critically assess the extent to which the performance of existing duties may be said to amount to sufficient consideration.
BSc (Hons) Year 1 Principles of Business Law Coursework . Lennard read in his local paper that Barry was selling his car for £2,000. After examining the car Lennard told Barry that he was prepared to pay £1,500. Barry replied that they should split the difference and therefore he would accept £1,750. Lennard then told Barry that he needed time to think it over. Barry then said "you must give me an answer by the Monday of next week". On the Monday Lennard sent a facsimile message to Barry's workplace, and for good measure, a letter to Barry's home address in which he stated the following: "I am happy to give you £1,750 for the car. Will you take a post-dated cheque?" Barry did not see the facsimile message that had been buried under a pile of paper on his desk and Lennard's letter was not received until two days after posting. In the meantime Barry had written to Lennard saying that the car was no longer for sale. Advise Lennard 2. Critically assess the extent to which the performance of existing duties may be said to amount to sufficient consideration. Part One Lennard is in the position whereby he has accepted an offer after negotiations, only to find out later that the car is no longer for sale. The problem lies in the fact that he has been made an offer and accepted it. There are two issues to consider; firstly was this a valid exchange, and secondly,
Dispensers of California Case Study - preparing a profit plan and balance sheet.
CASE STUDY DISPENSERS OF CALIFORNIA Q1: How might Hynes and the investors use the profit plan in managing the business? Ans: The profit plan prepared by Hynes can be helpful in forecasting the financial position (assets and liabilities) of the business. This would assist Hynes and investors to plan the business in advance and improve on profits. The information can be used to determine the solvency of the business by showing how much assets are available for payment of liabilities and dividends. Profit plan can also help in predicting the progress of the business and ascertain the amount of capital employed in business. It can prove as a good tool for budgeting and can uncover many potential bottlenecks before they occur. Hynes and investors may use the profit plan to decide on goals and objectives that can serve as benchmark for evaluating subsequent performance. Q2: How might the projected transactions impact the company's balance sheet? (Think about each transaction in terms of its impact on both the basic accounting equation and specific accounts.) Ans: Each of the projected transactions from the case study have been filled out in the worksheet (see following page) designed based on the basic accounting equation, Assets = Liability + Owner's Equity. Q3: Prepare a profit plan in the form of an income statement for the first year of operations. Ans: INCOME
You are the Finance Manager of a large company and you have been asked to write a report explaining your role to other senior managers using the headings below to give them a clearer understanding of your objectives and responsibilities.
You are the Finance Manager of a large company and you have been asked to write a report explaining your role to other senior managers using the headings below to give them a clearer understanding of your objectives and responsibilities. Limit your answer to the categories listed below. a) Explain the benefits and disadvantages of a company raising additional finance through (a) Equity or alternatively (b) Debt. b) Explain two ways in which internal sources of finance can be more effectively be managed to avoid the use of any external sources of funding. c) Explain the main objectives of a Finance Manager and how these can be equated to maximising the ordinary share price of the business. d) Additional marks will be awarded for structure, appropriate written style, accurate referencing and presentation. The benefits and disadvantages of a company raising additional finance There are many different ways for a business to raise additional finance when needed, the most common methods used to raise capital are through equity and debt finance. Equity finance is actually share that has been invested into a business by shareholders, this is normally a long term investment by individuals who see potential for positive returns on their investments. In return the shareholders receive a certain
Relational economic loss
Introduction "Relational economic loss" describes the loss flowing from negligent damage to the property of a third party, where the plaintiff is in a contractual or other relationship with that third party. 1 At first glance, the notable similarity between Canadian and Australian jurisprudence on relational economic loss is the lack of cohesiveness and certainty within its appellate courts. In Caltex2 and Norsk3 - both landmark cases delineating the principles in this area of law - a considerable diversity of reasoning within the majority judgements of both the High Court of Australia and the Supreme Court of Canada was evident. In examining the more recent judgements of Perre4 and Bow Valley5, this paper compares the judicial evolution of both countries in an area described as "the cutting edge of the law of torts."6 It is suggested that Perre has not satisfactorily remedied the state of Australian law governing pure economic loss. Conversely, while the legal underpinnings of Bow Valley are contentious, on balance, it is argued that its uniform methodological approach promotes a far greater level of clarity and consistency in the law. Legal Background Traditionally, there has been no action in tort for purely economic loss - that is, loss not consequent upon personal injury or property damage to the plaintiff. This is known as the exclusionary rule, which before the
Management Accounting_Ananlysis_project - Aviation Industry in India
Management Accounting Analysis Airline Industry - Comparative study CONTENTS Aviation Industry in India 3 Investment Policy 4 Government initiative 4 The Road Ahead 5 Jetairways and SpiceJet Annual Report 6 Jet Airways 6 Spice Jet 7 Annual Report Jet airways V/s Spice Jet 7 Management Analysis 10 Comments on Management Analysis of both Airlines 13 Cash Flow Analysis-Indirect Method 14 Reference 16 Aviation Industry in India The Indian aviation industry is one of the fastest growing aviation industries in the world with private airlines accounting for more than 75 per cent of the sector of the domestic aviation market (as of 2006). The industry is growing at a compound annual growth rate (CAGR) of 18 per cent. The country has 454 airports and airstrips, of which 16 are designated as international airports. Mr Praful Patel, Union Civil Aviation Minister has stated that the Indian aviation sector will become one of the top five civil aviation markets in the world over the next five years. Currently, India ranks ninth in the global civil aviation market. Passengers carried by domestic airlines from January-June 2010 stood at 25.71 million as against 21.1 million in the corresponding period of 2009-a growth of 22 per cent-according to data released by the Directorate General of Civil Aviation (DGCA). In terms of market share, private carrier Jet Airways was the