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Ms Syed Cemile Jamilla Ali

By Norman Crawford,2014-06-18 02:19
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Ms Syed Cemile Jamilla Ali

[TITLE PAGE]

Contents

    [TITLE PAGE] ......................................................................................................... 1 Contents .................................................................................................................... 1

    Executive Summary .................................................................................................. 1 Introduction ............................................................................................................... 2 Objectives ............................................................................................................. 2 Methodology ......................................................................................................... 2 Analysis of Financial Data......................................................................................... 3 Budget Analysis ........................................................................................................ 3 Bibliography ............................................................................................................. 4

Executive Summary

I have removed your title as it looked unprofessional use the headings (1, 2, 3 etc) in

    Word, these will then assist you with making a contents page later (INSERT >

    REFERENCE > INDEX AND TABLES > Table of Contents tab). I have done this

    for you so you can see how it works (you need to add the Title Page where I have

    indicated I do not know your title). I also suggest that your title page and table of

    contents should go first and I have amended your structure as such.

Zentac Industries and the Government Contracts Division (“Government Contracts”)

    are involved in relatively similar industries. Zentac is primarily financed by shares

    and long term loans, whereas Government Contracts is financed by its working capital:

    there is no information on any share holdings. Both companies have done well over

    the three years period in generating profits. However, Government Contracts has been

    under some financial strain as a result of losing its customers in some divisions, which

    resulted in a decline in turnover, along with an increase in overheads. Despite the high

    gearing in Zentac Industries during 2004, the Company managed to reduce its gearing

    from 201% down to 128% in 2005. Gearing still remains high but the Company is

    trading well, and it is anticipated that in time, gearing will gradually reduce.

Comment: When you are talking about a company as an entity, you may refer to it as

    if referring to a person e.g. “Zentac Industries has…” rather than “Zentac Industries

    have…”, Zentac Industries “is” rather than Zentac Industries “are”. If you replace

    “Zentac Industies with a name – say “John”, you will always get the context right, e.g.

    John “has” rather than John “have”, John “is” rather than John “are”.

The company figures for both Zentac and Government Contracts indicate relatively

    good prospects for the future, as both companies have faced some growth during 2004

    and 2005. Regardless of the decline in gross profits between 2003 and 2004 shown in

    Government Contracts accounts, they have managed to stand on their feet in 2005

    with a good increase (in??).

Comment: Avoid colloquial phrases like “stand on their feet” – you could perhaps

    say that they have managed to “remain stable”, for example.

    Overheads have been the core problem behind the decline in turnover and gross profit for Government Contracts. There were also relatively minor issues (that affected…?_)

    such as absorption rates and allocation of costs as variable costs rather than fixed costs. The adaptation of a variable costs system may assist in evaluating the true cost of overheads for each unit produced in this type of industry.

(I am not sure what you are saying here.. perhaps, the Company needs…) advice on

    how to attract customers from different sectors, as well as dealing with segmentation, decentralising, and reaching customers internationally. However, the threats and opportunities of segmentation will possibly raise concern from both companies.

    This Report concludes that the Company (which?) must retain its pace within its market base and adopt ways of preventing considerable decline in its turnover and increase in its overheads.

    In respect of Zentac the Managing Director has considered the new proposals in respect of reducing its gearing and was happy to be advised on this issue.

Comment: The above summary is very unclear it would benefit from some sub

    headings. Perhaps you could summarise your advice to each company under the sub heading of the company name.

    [I have removed your contents page in favour of a properly constructed page using the headings feature in Word you can update this by right clicking on the table above and selecting „update all fields‟]

Introduction

Objectives

    The main objective of this report is to evaluate the performance of the Government Contracts Division and then draw distinctions with another company by using financial ratios.

In addition, following issues will be considered:

    ; Analyse financial data of current and previous accounting periods.

    ; Commentate on budget planning cycles.

    ; Evaluate the company's financial performance in accordance with the financial

    data from the balance sheet and the profit and loss account.

    ; Draw clear distinctions between variable and fixed cost and the reasons for

    their occurrence in an accounting period.

    ; Devise a budget and cash flow forecast for the next accounting period.

Methodology

    In analysing the accounts of the Government Contacts Division, adaptability of relevant accounting information along with evaluation of financial ratios was vital in assessing the financial position of the Company. Various financial ratios have been performed and adopted to draw conclusions on the Company's performance, liquidity and future prospects and costs implications.

    This report has been produced in reliance on the financial data provided in the Company's accounts. The Primary source of methodology in relation to the evaluation of performance was based on financial ratios along with critical analysis and comparison of data with the previous years' performance.

Comment: You need to capitalise „Company‟ when you are referring to it as if you

    were referring to specific person (i.e. where it is the definite article).

Analysis of Financial Data

    Financial data plays a major role in the performance of a company along with the generation of profit and expenditure. Generation of profit in itself is not a true picture of a company‟s performance as there are other fluctuating factors such as expenditure, which predominates and usually consumes large proportion of the profit. Eliminating cost related expenditure is a high priority but this must be constructed (?) with producing a good standard of service/product for value; the element of productivity versus the element of expenditure.

    The Return on Capital Employed (ROCE) which associates the measurement of operating profit with the capital employed by the Company is crucial to financial performance. Analysis from the 2005 Budget for Government Contracts indicates working capital at 3,037,000 and operating profit at 1,651,000 (Pounds? Euros?), rendering 54.36% ROCE in comparison with the previous year‟s 42.01%. This

    indicates that the working capital invested is generating adequate profit as the ROCE has increased over the year.

Budget Analysis

    (>> what do you mean here? I am not sure what you are trying to say but you need to revise the sentence) Stock days was subject to an increase between 2003 (25) and 2004 (70): although substantial, this saw a decline in 2005, to 45 stock days. This is relatively normal (??? compared to what) but could explain the reason for reduction in turnover in 2004 with some decease in 2005. There are errors in the budget of Government Contracts: the working capital over sales % for 2003 is stated to be 29% but it should have read 12.8%=(1,839/14,312). The capital employed by Government Contracts in 2004 has not received a greater return. (?)

    Comment: You need to read over the above paragraph. I have tried to correct it but I am not entirely sure what you are trying to say.

    ****The full essay has not been included here****

    Comment: You have put numbered footnotes right at the end of the Report. You need to go to INSERT> Footnote (at the position in the text where the number will go) and then add the reference at the bottom of the page.

    You then need to include all your sources in the bibliography.

     1 http://www.bized.ac.uk/cgi-bin/glossarydb/browse.pl?glostopic=0&glosid=601 2 http://www.bized.ac.uk/cgi-bin/glossarydb/browse.pl?glostopic=0&glosid=601 3 http://politics.guardian.co.uk/speeches/story/0,11126,1240803,00.html 4 http://politics.guardian.co.uk/speeches/story/0,11126,1240803,00.html 5http://politics.guardian.co.uk/economics/story/0,11268,1557801,00.html 6 http://www.hmrc.gov.uk/budget2003/pn01.htm 7 http://www.jrf.org.uk/knowledge/findings/housing/H122.asp 8 http://www.tiscali.co.uk/reference/encyclopaedia/hutchinson/m0010970.html 9 http://www.tiscali.co.uk/reference/encyclopaedia/hutchinson/m0010970.html 10 http://www.jrf.org.uk/knowledge/findings/housing/H173.asp 11http://www.jrf.org.uk/knowledge/findings/housing/pdf/H173.pdf 12http://www.parliament.the-stationery-

    office.co.uk/pa/cm200506/cmhansrd/cm050526/debtext/50526-20.htm 13http://www.hmtreasury.gov.uk/newsroom_and_speeches/speeches/chiefsecspeeches/speech_cst_040204.cfm 14http://www.hmtreasury.gov.uk/newsroom_and_speeches/speeches/chiefsecspeeches/speech_cst_040204.cfm

Bibliography

    ; http://www.cityoflondon.gov.uk/NR/rdonlyres/AF9D826A-A1BB-4E08-BCCB-

    A0B942229582/0/BC_RS_londonsplace_0209_ES.pdf

    ; http://www.bized.ac.uk/cgi-bin/glossarydb/browse.pl?glostopic=0&glosid=601 ; http://politics.guardian.co.uk/speeches/story/0,11126,1240803,00.html ; http://politics.guardian.co.uk/economics/story/0,11268,1557801,00.html ; http://www.hmrc.gov.uk/budget2003/pn01.htm

    ; http://www.jrf.org.uk/knowledge/findings/housing/H122.asp

    ; http://www.jrf.org.uk/knowledge/findings/housing/H173.asp

    ; http://www.jrf.org.uk/knowledge/findings/housing/pdf/H173.pdf ; http://www.parliament.the-stationery-

    office.co.uk/pa/cm200506/cmhansrd/cm050526/debtext/50526-20.htm ; http://www.hmtreasury.gov.uk/newsroom_and_speeches/speeches/chiefsecspeech

    es/speech_cst_040204.cfm

    ; http://www.hmtreasury.gov.uk/newsroom_and_speeches/speeches/chiefsecspeech

    es/speech_cst_040204.cfm

    Comment: Although I am not asked to comment on your content, I did note that all of your sources are internet based. This will likely affect your mark most

    universities would expect a variety of source materials (paper and electronic).

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