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Corporate Finance Project Description

   

Added on  2020-06-06

21 Pages5063 Words394 Views
Corporate financeproject

ContentsEXECUTIVE SUMMARY.............................................................................................................1INTRODUCTION...........................................................................................................................3Background of the company:..................................................................................................31. Shareholders/ manager objectives......................................................................................45. Risk and Return:.................................................................................................................66. Measuring Investment Return:...........................................................................................87. Capital structure..................................................................................................................88. Dividend Policy................................................................................................................139. Valuation..........................................................................................................................16CONCLUSION..............................................................................................................................16REFERENCES..............................................................................................................................18

EXECUTIVE SUMMARYThis project summaries various information about corporate finance. Under whichvarious investment appraisal techniques is been used in order to determine current position of thecited company. In accordance with evaluating present structure of an organization quantitativeanalysis is been done. Certain costs of capital approaches are to be examine in order to evaluatefinancial position of the company. All those risk those are affecting productivity andsustainability has been identified under this project report. The complete valuation of the firms ismade after computing of certain ratios and measure to remove issues those are associated withthe company.1

INTRODUCTIONFinance is the main thing that can be used by the business in order to run the businesseffectively. There is a need to raise fund in order to run the business in an effective manner.however, this can be said that each decision which a business incorporate has the financialimplications, and any kind of decision which influence the finance of an organisation is knownas the corporate finance (Liu, Wei and Xie, 2014). But before going to raise the funds, there is strictneed to make certain policies in an effective manner. the financial analyst’s main focus is tooptimise the value of the business which assist to raise corporate finance. As an emergence ofthis, single objectives. Each firm is required to take investment related, financing related anddividend related decisions in an effective manner. these decisions can be taken while applyingthe corporate finance in an effective manner.Background of the company:This project is based on the Almarai company which The Almarai is the biggest dairyorganisation in the Saudi Arabia in terms of market value, running dairy farms and the processedfoods, apart from the marketing dairy goods and fruit juices. Almarai other name is greenpastures in Arabic. The chairman of the cited organisation is HH Prince Sultan bin Mohammed bin Saud AlKabeer which addressed an opportunity to convert Saudi Arabia’s traditional dairy farmingindustry to satiate the needs of firm’s fast increasing domestic market (Serfling, 2014). Thiscompany was formed in the year of 1977. Presently, Almarai is the planet chief verticallyintegrated dairy organisation along with the perfect reputation. Its ultimate aim is to rendersnutritious food and beverages which enrich our consumers lives on each day. This is serving avarious range of high quality food and beverage goods to consumers throughout the Arab world.In 2014, the Almarai’s performed consistent financial performance (Martínez-Sola, García-Terueland Martínez-Solano, 2013). The CEO of the company is Georges Schoderet who was appointed inthe designation in Feb 2015. Although, he connected to Almaria in the year of 2004 as CEO andin the year of 2011 became its Chief Operating Officer. On the other hand, Abdullah Al Badarhas connected Almarai in 2000 and was selected as the General Manager of the Bakery inAugust 2015. He held a number of positions in the organisation and recently as a General2

Manager. Which assist services prior to his existing role as the General Manager. He is workedfor diverse business sectors.The Company is committed to consistently emerge by further combining firm’s marketpresence in the current categories and enhancing the market throughout the region. Theapplication of our strategic plan during 2015 saw consistently sales growth throughout many ofthe categories and enhancing company’s joint venture strategy, it geographical expansion hasbeen seen (Philippon, 2015). However, innovation and consistent competence gain would producerobust cash flow and enhance working capital management in order to fund capital expenditurefor the future development.Shareholders/ manager objectivesThe main aim of corporate governance code is to fix Almarai’s approach to the corporategovernance. This is committed to handle more standards of corporate governance and adoptsSound corporate governance which is a mandatory tool for optimising high term shareholdervalue, and this is regulate with this commitment to the quality in entire of its procedures andproducts (Balance, 2014). The rules fixed out in the organisation’s CG Code which are essentialfor entire directors and members of the company and any further changes can be done byamending resolution in the BODs.CG is known as the system through which organisations are managed. The CG structureemphasis the spreading of the authority and accountability among diverse contestants in thecompany, like- board members, stakeholders and others and frame out the rules and proceduresfor incorporating decisions on the corporate affairs. By implementing this, it likewise renders theconstruction via which the firm’s objectives are framed out and means of attaining thoseobjectives and handling performance (Eckbo and Thorburn, 2013). The Board of Directors isaccountable company’s CG code.The shareholders’ role in the corporate governance is to engage the board of directors andauditors and also to satiate themselves which an adequate governance layout is in place. Theaccountability of the board covers framing the firm’s strategic purpose, rendering leadership tomake them into practically, overseeing the administration of the corporate and reporting toshareholders on their stewardship (Eccles, Krzus, Rogers and Serafeim, 2012). The Board’s actionsare done by considering rules, regulation and applicable laws to the shareholders in the generalmeeting. Almarai’s CG code is formed as per the global principles of the CG and regional3

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