APPRAISAL OF FINANCIAL MANAGEMENT PRACTICES IN A MANUFACTURING INDUSTRY. A CASE STUDY OF EAGLE CEMENT COMPANY PLC. NKALAGU
Finance is the life-wire of any organization and proper management means a sustained increase in the life of an organization. Owing to the broad view of this project when settled for an elaborate detail about it, this report or write up has been divided into five different chapters as follows: Chapter One: which is the introduction, deliberates or the introduction of the topics as regards the background, objectives scope and significance of the study, the statement of problems, research questions and hypothesis of the project. Chapter Two: elaborates on the literature review as in the evaluating financial performance, accounting system, accounting procedure and internal control etc. Chapter Three: deals with the research methodology as in research design, area of study, population of study, sample and sampling procedures, instrument for data collection, validation of the instrument, reliability of the instrument, method of data collection or administration of instrument and method of data analysis. Chapter Four: deals with the data presentation and analysis test of hypothesis and summary of result. Chapter Five: presents and gives discussion, implication and recommendation as in discussion of result, conclusion, implication of the results, recommendations, suggestions for the further research and limitation of the study.
Almost all kinds of business activities directly or indirectly involve the acquisition and use of funds. There exists an inseparable relationship between finance on the hard and production and other functions on the other. In a business set up, the functions of recruitment and promotion of employees are clearly the work of the personnel department. Sales promotion policies come within the functions of the marketing department. These activities performed by these departments (personnel and marketing departments) require outlay of funds and therefore affect resources. The finance function of raising and using money although has a significant effect on other functions but it need not necessary limited the general running of the business. Generally firms formulate their policies (marketing productions, personnel and other policies) most of the time, to tally with the financial resources of the company available to them.
The word “Finance” is viewed from different perspective by different group thus: – a. A layman sees finance as the volume of money in his prose, vault and at the bank. b. Investors sees finance as the provision of funds as at the time it is need for investment. It goes beyond coursing and applying the fund for profit maximization as well as the state of sharing the profits. c. Academic sees finance as the science of fund management. The investor view about finance shall be upheld in this write up. This because it emphasizes on profit making for the maximization of shareholders wealth. Wealth maximization is one of the corporate financial objectives of a firms. This can only be achieved by efficient and effective management of the company’s resources. Financial management involves all the activities that are concerned with planning cash and credit requirement, including the effective control of the financial resources The activities could be segregated as follows i. Forecasting the future availability of and requirements of cash ii. Converting forecasts into plans and budgets.