You are to select a PLC that has a listing on any recognized stock exchange of your choice and agree this with the module tutor. Once this is done, you are required to answer the following questions:
Assignment Task 1 (40 Marks):
1. Provide a brief introduction of your chosen organization. 5 Marks
2. Critically examine the importance of various functional areas within organizations, emphasizing the significance of Finance as a critical functional area within your chosen organization and how a strategic integration can be achieved? 10 Marks
3. You are required to look into the financial statements of your chosen organization for the year 2018-19 and explain the following: 25 Marks
a. Analyze and interpret the profit and loss statement, identify the major expenses & incomes, compare with previous year, & recommend actions for the upcoming year. You are also required to compare and interpret the P&L statement in the light of cash flow statement.
b. Analyze the Balance sheet and critically discuss the financial position of your chosen organization and recommend future actions.
c. Explain, Calculate and interpret the following ratios for your chosen organization for the years 2018 and 2019:
· Current ratio
· Quick ratio
· Gearing ratio
· Return on capital employed
· Interest cover ratio
· Net profit margin ratio.
Assignment Task 2 (30 marks):
1. Explain the process and significance of budgeting process. Critically evaluate various methods of budgeting and how they differ from each other? As a Finance Manager, which budgeting approach would you employ and why? You are also required to examine the impact of technology on the budgeting process and see how technology can be best used in the process to enhance and speed up the budgeting process? 15 Marks
2. Explain why it is important for organizations to measure their performance. Discuss the different types of performance management tools and techniques which can be deployed in large global companies for evaluating its suitability across a range of business and economic environments. 15 Marks
Assignment Task 3 (30 marks):
1. Acquisition and utilization of funds are two of the major decisions taken by an organization which requires careful analysis. You are required to explain and evaluate various sources of finance available to a business. Once this is done, you must examine and justify 15% Net Asset Investment decision taken by your chosen organization in order to upgrade the technology. Which sources of finance do you believe would be appropriate for your chosen organization and why? 15 marks
2. Considering your organization’s plans of making capital investments which is the need of the hour as the organization is facing a tough competition, the board of directors have approached you for your expertise in regards to making a capital decision. You must critically evaluate the investment appraisal techniques you would employ to help your organization to reach a decision. You are also required to explain the time value of money and hence compare and contrast the discounted and non-discounted capital budgeting techniques. 15 Marks