Financial Decisions Making Report for Panini Ltd

FINANCIAL
DECISION MAKING
REPORT

EXECUTIVE SUMMARY
The report above sums up the working of Panini ltd organization in aggressive climate.
IT further considers the calculation of proportions like stock days, leasers and borrower's
assortment period. It additionally gives specific proposals based on present working did in
related climate. Numerous estimations are being performed for contrasting related brings about
connection with organization's exhibition over a specific time frame.
INTRODUCTION
The report prepared as under takes in account what could be functions related to finance
and its roles, duties as well. There are many duties performed in accounting related areas and
they would help the company to grow and work in a competitive environment. It also takes in
account computation of ratios and also how the data and results can be interpreted for better
working and functioning of firm in a competitive marketplaces. It is necessary for every business
to understand where it is lacking and lagging behind and how it can improve its performance for
better results (Asmara and Situanti, 2018).
TASK
1.1 Examine the importance of finance and accounting related functions, duties and roles that
exist within a business.
Management accounting: It is helpful for carrying out an overview about purposes and
roles being carried out to its relative operational work and activities related to it. It focuses on
maintaining efficiency and effectiveness in the work being carried out and facilitated over the
business cycle of organisation. Some of them are discussed as under:
 It helps in carrying out better decision making: Accounting can be explained as useful in
being effective and efficient against selecting which one is the best alternative among
other prospects available with Panini Ltd (Dong, Chen and Wan, 2018). It would further
be useful in selection of organisation which would serve the purpose in best manner and
understand what are the requirements of a organisation over a certain period of time
duration and what policies can serve as a advantage in reducing as well as cutting down
the cost and increasing the profitability status of company in a specific time duration.
 It also maintains a systematic track record of expenses done and income earned: It helps
to manage a record which would reflect balances which are being generated by a

company. It would also help Panini to find reasons behind revenues that are being
generated and income by related functions and which operational activities can be
monitored helpful in improving expenses being incurred over the life cycle of business .
(Dawson, A., 2021).
Accounting: This term can be explained as compiling, collecting and sorting of data all together
at one place and recording money related dealings which are important. Processing finance
related statements and records that would also be helpful for providing guidance as well as
assisting them in such a way which would serve as a guide for managing cash and funds
collected so far in a business. It can be defined as a process which would keep proper
management of books of accounts and adapt data for various uses in related areas. The main
purpose is to examine the performance ascertained and given to staff persons working in a
company and that too in relative environment. Hence, it can also result to be fruitful for
evaluating profitability and positioning in economy and business of a organisation. It is further
observed and noted that it can used as a technique for people who are connected with the firm or
planing to get connected in companies which are being run in a competitive environment.
Functions of accounting: There are various kind of functions that could be said as important and
necessary for Panini ltd. Company. Some of them are described as under:
 Assessment of performance: Accounting is needed in every field and on every scale as
well, whether small or large, whether specific or extended over a large border and which
would help business to manage its life cycle for a specified time period that is treated to
be beneficial in fighting a competitive market in futuristic situations.
 Examination of valuable transactions: It is important for Panini Ltd. To record
transactions which are related and would be giving a clear, transparent and needed
outcomes which are taken in account after consideration of working situations in a
economy (Fichter, 2018).
Duties in Accounting:
 Monitoring and controlling budgets being prepared and developed: Accounting can be
explained as a tool and method which would help in planning and development of
budgets. It would also provide advantages and benefits in searching and finding areas in
which money is being invested without proper guidance and would go waste.

 Financing: It would be helpful to assess what cash and amount of fund being planned to
be invested in related acts which would further help to manage cash inflow and outflow
which would be managed and maintained by a organisation over time duration (García-
Sánchez, García-Díaz, Gómez-Berbís and Valencia-García, 2018).
 Predicting finance related activities and forecasting risks and threats: It is basic function
and necessity of accounting related elements which would help to assess and forecast
what would be threats and risk which can affect the growth and expansion of business in
competitive environment and hinder its growth as well.
Auditing function: Finance departments of the organisation is observed to focus more on current
assets. The companies working capital must be controlled in a effective and efficient way which
would prove to be more profitable when connected to the quantity of funds tied up and affects
the liquidity and solvency of a company.
Tax function: Payment of tax can be explained and described as a duty which must be followed
and monitored by every department dealing in finance related areas. It further focuses on
building good relations with government authorities by remittance of amount to be paid to
relevant authority and also would try to assure that tax must be paid and worked with policies
developed in a systematic manner.
Functions carried and followed in Finance:
 Raising funds: It would be focusing on areas which would be contributing in generating
income, revenue and cash that could also be used in managing operational work.
 Planning funds well in advance: It defines that the funds which are limited in nature must
be planned in a way which would help to reach aims and objectives set in a right manner
(Gatchair, 2018).
Types of finance:
 Working capital functions: It can be computed by deducting the current assets from
current liabilities. It is a certain portion of money which is helpful for daily expenses of
organisation and would be requiring the organisation short term expenditure, which are
needed to be paid before the completion of financial year.
 Financing functions: This function is built on the concept as how the company is able to
manage its funds and put them to better uses which would be useful for better decision
making skills. It also reflects how funds can be utilised for specific areas and for carrying