FNS50315 Diploma of Finance: Comprehensive Assessment Analysis

This document presents a comprehensive assessment analysis for the FNS50315 Diploma of Finance and Mortgage Broking Management. It encompasses five distinct assessments, each addressing critical aspects of finance and broking. Assessment 1 focuses on loan submissions, detailing borrower information, loan purposes, facility details, risk assessments, and recommendations. Assessment 2 explores loan submissions for equipment finance, examining client and lender perspectives. Assessment 3 provides a theory assessment, while Assessment 4 delves into servicing and research, including ratio and serviceability analyses of a business and examines various loan scenarios. Finally, Assessment 5 focuses on sustainability planning. The document offers detailed financial positions, risk evaluations, and recommendations, providing a thorough understanding of the finance and mortgage broking field.

Assessment Analysis
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Date: 15 / 02 / 2020
Course Id:
Student Name:
Student Number:
Assessment Number: Assessment Analysis

Assessment Analysis
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Contents
Assessment 1:- Loan Submission................................................................................................................4
Borrower’s Details –....................................................................................................................................4
Background -...............................................................................................................................................4
Loan Purpose –............................................................................................................................................4
Facility Details –.........................................................................................................................................5
Funds Position –..........................................................................................................................................5
Servicing Capacity –....................................................................................................................................7
Security –....................................................................................................................................................8
Risk Assessment and Management..............................................................................................................8
Recommendations.......................................................................................................................................8
Attachment list may include........................................................................................................................9
Assessment 2.............................................................................................................................................10
Part A: Client.............................................................................................................................................10
1) List of the questions can be listed as follows:-...................................................................................10
2) Proposal of documents as follows:....................................................................................................11
The Current business assets as well as the profits can be considered as an security for the loan...............11
Part B: Lender...........................................................................................................................................13
Borrower’s Details –.................................................................................................................................13
Background -.............................................................................................................................................13
Loan Purpose –.........................................................................................................................................14
Facility Details –.......................................................................................................................................14
Funds Position –........................................................................................................................................14
Servicing Capacity –..................................................................................................................................15
Security –...................................................................................................................................................16
The Current business assets as well as the profits can be considered as an security for the loan...............16
Risk Assessment and Management............................................................................................................16
Recommendations......................................................................................................................................17
Attachment list may include.......................................................................................................................17
Assessment 3.............................................................................................................................................17
Question 1.................................................................................................................................................17

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Question 2.................................................................................................................................................18
Question 3.................................................................................................................................................19
Question 4.................................................................................................................................................20
Question 5.................................................................................................................................................20
Question 6.................................................................................................................................................21
Assessment 4: Servicing and Research Assessment..................................................................................22
Question 1.................................................................................................................................................22
Part A : Ratio Analysis of the Whole Butchers Pty Ltd............................................................................22
Part B Serviceability analysis of Wholesale Butchers Pty Ltd...................................................................25
Part C Serviceability Analysis Comments.................................................................................................26
Question 2.................................................................................................................................................26
In case of trust...........................................................................................................................................26
In case of Company...................................................................................................................................27
Question 3.................................................................................................................................................27
Question 4.................................................................................................................................................28
Question 5.................................................................................................................................................29
Question 6.................................................................................................................................................29
Assessment 5 : Sustainability planning Assessment..................................................................................30
References.................................................................................................................................................35

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Assessment 1:- Loan Submission
Borrower’s Details –
The borrower is Mr. Andrew Bisset an and Mrs. Jane Bisset.
Andrew Mark Bisset – DOB 29 / 07 /1965
Identity Proof DL # 2945758
Jane Elizabeth Bisset – DOB 15 / 06 / 1967
Identity Proof DL # 2786454
Adult Children - Three
Local Address: 12 Currumbin Close, Carindale QLD 4152
Background -
Andrew Bisset has been a real estate agent for 22 years in Brisbane South East area, the
main area is the commercial as well as the industrial property names as Bisset’s Real
Estate Pty Ltd which was taken over by the Mr. Hooper. Further, along with his wife Jane
Bisset he owns around six shops at 55 Park Road, Belmont. On the more, Jane Bisset has
worked as a manager in the agency.
Loan Purpose –
Mr. and Mrs. Bisset now wish to acquire 3,000m2 of land near their existing shopping
centre which is expressed as Town Planning Scheme. It is a located at 423 Belmont
Road, Belmont however, the area falls under the special purpose area. It is nessceary to
understand that the purchase price of $ 600,000 of the land and the maximum period
required to pay the is to be made within the period of sixty days or two months. The

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factor aims at hundred percent of the financing. The cost will further add the amount of
the additional cost of $25,000 which being the stamp duty and the other expenses, and
therefore, final loan finance of $ 625,000 will be done.
Facility Details –
The land is 3000 sq Meters and the place was earlier owned by government of the state
and the Health and Dental Centre, however it soon became obsolete and was categorized
under the special zone area by the government itself. But as per the local council agenda
the purpose it is an commercial property as per the new agenda of Council Township in
another one or two years. The land allows considerable passing traffic and occupies a two
street frontage.
Funds Position –
 Financial position of Andre and Jane Bisset
Assets Amount
$
Liabilities Amount
$
House at 12 Currumbin Close
Carindale Queensland
560,000 Home loan from ABZ Bank 190,000
Share portfolio comprising of listed
shares of Blues Chip
345,000 Credit Card of ABZ Bank
having limit of $20,000
10,000
Motor Vehicles 60,000
Furniture 85,000
Cash at Bank 45,000

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Total 1,095,000 Total 200,000
 Financial Position of Bisset Real Estate Pty Ltd
Details Amount $
Gross Revenue 346,000
Net Profit 72,000
Depreciation 14,000
Directors Superannuation 11,000
Assets Amount
$
Liabilities Amount
$
Goodwill 250,000 ABZ Bank Overdraft with limit of $40,000 and also
secured by their residential property
25,000
Plant and
Equipment
35,000
Debtors 30,000
Total 315,000 Total 25,000
 Financial; position of partnership of Andrew Bisset and Joseph Hooper
Details Amount $
Gross Revenue 422,000
Net Profit 84,000
Depreciation 16,000

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Directors Superannuation 11,000
 Financial position of Bisset Family Trust
Details Amount $
Gross Rental Income 138,000
Net Profit 50,000
Depreciation 25,000
Management Fees 11,000
Loan Interest 52,000
Shopping centre with 6 shops 1,450,000
Servicing Capacity –
As on date the couple runs an shopping centre at the place Belmont that cost around
$1,450,000 on fair value basis at an estimation of two years. On the more, the property
has a mortgage with the bank which around $ 625,000. Further, it adds to a income which
deals with the rental income of $ 96,000 which is earned through the five shops and the
sixth shop rent which gives the Family Trust which earns about $ 42000. Adding on the
previous financial year income through salary was about $ 78,000 plus income value of
$55,000, with respect to Jane salary $ 43,000.
Security –
The most evident security against the mortgage loan is the Bisset Family Trust, and the 6
shops land value which are owned and runner by the Bisset Couple along with the rental
income which is received by the couple.

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Risk Assessment and Management
It is equally important to understand the risk associated with such loans financing which
are listed as follows:-
- Interest Rate which aims at loan of the commercial levels to be seven percent and the
bank overdrafts aims to be nine percent, they same may be difficult on account of the
fixed and fluctuating purpose.
- Being on a special zone area problems may increase and may cause of problem where
the town planning scheme may change in any manner and may lead to a level of
unsurely . (Baumgartner, and Ebner, 2010).
- The market value of the shopping centre is another factor of the risk element which
may fluctuate very easily and may create major problems.
Recommendations
As it is evident that the property is available for sale it is very wise able that the Bisset
must immediately buys the same and use it for commercial purpose. Further, the loan
must be taken on behalf of the shopping center.
Attachment list may include
- Financial Proofs
- Ownership Proofs
- Valuation Certificates
- Registration documents
- Loan Application

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Assessment 2
Part A: Client
1) List of the questions can be listed as follows:-
For the analysis to provide better results it is evident that the following base questions must be
asked.
1. Name the parties taking loan?
2. Details about their income and revenue?
3. Reason to take the loan?
4. Amount of loan to be taken?
5. The financial institution from which the loan will be taken?
6. Time period for which loan is taken?
7. The repayment schedule and mode of repayment?
8. Present position of loans in details?
9. Success and failure rate of the loan repayment?
10. Details of securities offered till date foe loan taken?
11. Details of securities to be offered for the loan to be taken?
12. Nature of collateral securities?
13. Do the securities so offered for the loan include any mortgage on any existing loan?
14. What is the credibility ratio of the parties as on date?
15. Details about their financial statements and tax returns of the business and personal tax
returns of the parties.

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16. Current position of the parties in terms with cash and liquidity position?
17. Details about the Tax returns and the personal returns/
18. The signing authority for entering into the contract or the loan agreement
(Briscoe and Rogan, 2015).
2) Proposal of documents as follows:
Parties to the loan
The borrower is Mr. Ray Henley and Mr. Steve Manning.
Mr. Ray Henley – MBA Graduate and works as a financial controller in the Transportation
companies, he is Married and has no dependent Children or other dependents.
Mr. Steve Manning – MBA HR Graduate and works as a financial controller and the marketing
manager in the Transportation companies, he is not Married and has no dependents.
Security
The Current business assets as well as the profits can be considered as an security for the loan.
Facility details
The maximum Limit of loan to be drawn is $ 500 K, primarily to buy dog trailers and Truck.
Lender’s details
It can be Financial Institution, Banka or any lender authority.
Confirmation of the complex requirements of client

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Persons involved
Broker, Accountant (Finance Manager), applicants applied in the form and the financial
institution.
Responsibilities of the client
- To pay loan on time
- To provide correct documents
- To sign documents correctly
- To ensure the purchase is done in legal liability
(Briscoe and Rogan, 2015).
Process timing and client arrangements
Processing Time – 1 month from the date all the documents and processing requirements are
complete and dully accounted. All the client arrangements are accounted as per the details
mentioned in the contract.
Documentation
All the documentation required to process loan and buy the assets will be listed here in details.
Signing authority for the contract to purchase
Jointly by Ray Henley and Steve Manning