Financial Management

Financial Management



Acknowledgement

I would like to thank Almighty God for his divine favour and ability to complete this project. In addition, I express gratitude to my Professor for his continued support and guidance that enabled me to successfully complete this project and woulld be eternally indebted to him for the opportunity.

Executive Summary

Finance is one of the most important areas where any organisation has to pay attention to succeed, and so is the case with Dubai Aluminium Ltd. (DUBAL) which is a leading aluminium producer in Dubai. This report contains how does DUBAL make its decisions, prepares its budgets, maintains its cash flows to make the decisions. It also discusses the decision of purchasing a capital asset as opposed to leasing it. This decision is particularly relevant when the firm needs to acquire new premises or equipments. The various processes and protocols that are used in the organisation, their benefits and limitations are also discussed in the report. The project commences with the introduction of the area being researched, and is then followed by the research methodology chapter. A brief introduction of the company has been provided including mission and vision of the company. Subsequently, the business code of ethics and roles and my roles and responsibilities within the company have been provided. This is followed by the financial management aspects where different types of budgets in the industry are included and capital budgeting techniques used to evaluate future investments has been conducted. Then the financial statements for the year ended 2007 and 2008 have been provided and the financial statements for the year 2009 have been forecasted. Finally a recommendation is made to the management.

Table of Contents

Acknowledgement2

Executive Summary3

Introduction5

Research Methodology5

Dubai Aluminium Company Limited (DUBAL) as a Case Study5

Vision Statement7

Mission Statement7

Code of Ethics7

Report Focus8

Roles and Responsibilities8

Importance of Budget Preparation9

Sales Budget9

Production Budget10

Direct materials purchases budget11

Selling and administrative expense budget11

Risks and Benefits of the Present Strategy11

Importance of Financial Management12

Impact of Information Technology12

Future Growth of the Organisation24

Capital Budgeing25

Recommendations28

Conclusion29

References30

Financial Management

Introduction

Financial Management is of huge importance because of a number of reasons. It helps the organisations to make most of its decisions based on the profitability of the project, to compare their growth with that of their competitors. It enables the organisation to keep a record of their revenues and expenses, which helps them to assess themselves better, and to forecast possible risks, options, and budgets. In order to operate effectively it is necessary for any organisation to have effective and efficient Financial Management.

Research Methodology

The information required for the analysis was collected from the following sources:

Primary sources including interviews and surveys.

Secondary sources include the corporate website

The financial reports including the balance sheet and the income

Dubai Aluminium Company Limited (DUBAL) as a Case Study

Dubai Aluminium Company Ltd (DUBAL) “manufactures approximately one million tonnes of finished product for 300 customers in forty eight different countries. (Weetman, P. 2006, 342-47) It is the main site for the smelters of aluminium all around the world. It provides approximately 45% of the non-oil revenue to the city of ...