Corporate Finance and Strategic Corporate Management || Assignment

Finance and
strategic
management

FINANCE 1
Contents
Introduction.................................................................................................................... 2
Corporate Governance status and challenges...........................................................................2
Company capital investments.............................................................................................. 4
Company’s Source of Finance............................................................................................. 5
Financial Ratios............................................................................................................... 6
Company’s Share Performance.......................................................................................... 11
Conclusion................................................................................................................... 12
References................................................................................................................... 14

FINANCE 2
Introduction
Financial Analysis is the process of examining the financial statement of the firm. It is
essential for the firms to evaluate the financial performance of the organization to operate the
business. There are various techniques to analyze the financial situation of the company and
these are ratio analysis, horizontal analysis, common-size analysis, stock price analysis, and
many others. These tools and techniques of financial analysis help the company to analyze the
financial situation (Robinson, 2020). The main aim of this paper is to evaluate the financial
situation of the organization by analyze the financial statements. PAF African Resources Plc. has
been taken into consideration to examine the financial situation. PAF Africa Resources Plc is a
gold producer in mid-tier African-focused with the excess capability as it manufacture 170000oz
of gold pa. PAF Africa Resources operates a portfolio of high quality, low cost processes and
projects those are situated in South Africa (PAN African Resources, 2019a).
In the beginning of this report, the challenges will be discussed those are faced by the top
management. After that, capital investments will be identified those are invested by the company
for future operation. Later on, the source of finance of the firm will be examined to get the info
related to financial activities. The ratios will also evaluate to examine its financial status. At the
end, the share performance in the stock exchange will be evaluated as per the investor’s point of
view.
Corporate Governance status and challenges
The Board of directors: The Board of directors is the group that has more responsibilities to
deal and manage the operations. The boards of directors are the key elements of corporate

FINANCE 3
governance as they have the responsibilities of the firm to operate smoothly by analyzing the
environmental impact on the business. There are six directors in the firm consisting directors,
chairman, the chief executive offers and the chairman that reduces the conflicts in delegated
authority. It has been seen that the chairman has the responsibility to give guidance of leadership
to board members. The Company financial directors and chief executive officers are supported
by the processes committee. And the non-executive directors have no right to participate in the
daily operation activities.
The composition of Board: PAF Africa Resources Plc has executive and non-executive
directors in the company those are treated equally. The board of directors of the firm has wide
range of information and experience in the field that helps to reduce exploits between members
and protect the rights of shareholders (PAN African Resources, 2019a).
Committees of the board: PAF Africa Resources Plc has 4 committees and these are social
committee, remuneration committee, ethics committee and audit committee. Each of the
committee helps the board of directors on the issues related to non-executive directors, corporate
governance those are independent. It has been seen that all the committee are satisfied and
perform their duties perfectly (PAN African Resources, 2019a).
Independence: The board of directors of PAF Africa Resources Plc has been designed as per the
criteria. The proper evaluation has been done while designing the duties to each board of
directors in terms of principle and character and their relationship. The board of the company
continuously assesses the directors in order to ensure their term that does not go above than 9
years. The firm implements two legislatures and these are the S.A legislature and UK