Assume that the company is now planning to expand further and build another extraction plant in Uzbekistan within the next five (5) years. The company estimates that they would need to raise approximately £120 million for this project.
REQUIRED:
TASK 1 (1,000 WORDS)
Suppose you are part of the Accounting and Finance team at Central Asia Metals (CAML) plc. You are required to write a report to the senior management team of CAML plc., discussing the importance of accounting and finance functions, roles and duties within CAML plc with respect to both reporting and decision-making aspects. Your discussion should include some examples within the company where appropriate.
TASK 2 (1,500 WORDS)
Using the financial statements of Central Asia Metals (CAML) plc. presented below, complete the following tasks:
a) Provide a brief explanation of the financial statements and their main elements supporting it by the figures and trends from the statements below (attached below in brief).
b) Using the figures presented in these financial statements, calculate the following ratios in each year:
-Return on capital employed
-Net profit margin
-Current ratio
-Average Receivable days/ Debtors collection period
-Average Payable days/ Creditors collection period
You should clearly show all the formulas and calculations. The figures should be rounded to two decimal places. Formulas and calculations are not part of the word count.
c) Using the results from your calculations, comment on the company’s performance based on the results from and position between the two (2) years from (a), mentioning possible causes, reasons and effects for the changes in the ratios. In this section, please incorporate the discussion on the company’s performance from an investor perspective, assuming that the company is planning to build another extraction plant in Uzbekistan within the next five (5) years and would need to raise approximately £120 million for this project.
I’ve attached additional paper to help out with planning the structure of this report however keep in mind that it is a template and to be used just as a guide.
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