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Financial Management : PDF

   

Added on  2021-02-20

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Financial Management
Financial Management : PDF_1
Table of ContentsINTRODUCTION...........................................................................................................................1PART A - ALAM PLC...................................................................................................................1Ratios calculations related to Alam Plc for year 2018 and 2017:...............................................1PART B – CHILLER LTD..............................................................................................................9Break even point and margin of safety calculations for year 2018 and 2017 related to ChillerLtd ..............................................................................................................................................9Critical Analysis of the key assumptions of Break-even Model in present business scenario.10PART C: CROSSWELL................................................................................................................10Benefits and limitations of various investment appraisal techniques and recommendation ofbest techniques:.........................................................................................................................10Evaluation of main sources of finance for utilisation by a company to finance its capitalinvestment project:....................................................................................................................14CONCLUSION..............................................................................................................................15REFERENCES .............................................................................................................................17
Financial Management : PDF_2
Financial Management : PDF_3
INTRODUCTIONFinancial management can be defined as that part of a company's operational activitywhich is chiefly concerned with the optimal allocation as well as utilisation of both economicand non-economic resources through realistic (practical) decision making practice. It also assiststhe organization in preparing, directing and accomplishing the finance related activities. Itensures that an organisation has received in time their funds to run the company's businessoperations along with ensuring that management utilise these funds in optimum manner afterfunds are procured at minimal cost (DRURY, 2013). This report explains the various practicalissues that a company shall face in day to day life related to financial management. How ratioanalysis may help the company in evaluating its financial performances are also incorporatedin this report. Apart from this, understanding of break even point and margin of safety are alsodescribes in detail in this report. This report defines the various techniques of investmentappraisal long with their benefits and limitations that may be useful for an entity for evaluatingits proposed investment proposals.PART A - ALAM PLCRatios calculations related to Alam Plc for year 2018 and 2017:A ratio may be defined as a calculation of some mathematical figure that provides insightto the company to measure its financial statements and provides useful data that may be used bythe company for future business operations (Weetman, 2019). Ratios are of various types, thedetailed discussion of such with its calculations are as follows:Profitability ratios:Calculations of various profitability ratios are as follows: Gross profit ratio:Particulars20182017Increase/DecreaseGross profit83758150Sales1620015000G. P. ratio (%)= 8375/16200*100= 51.69%= 8150/15000*100= 54.33%DecreaseFormula: G.P. Ratio = G.P. / Sales*100 Interpretation:1
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