EFFECTIVE WORKING CAPITAL MANAGEMENT IN PAINT INDUSTRIES (A CASE STUDY OF MARSHAL PAINT AND CHEMICAL LIMITED ENUGU – ENUGU STATE)

 

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CHAPTER ONE

• Introduction 1
• Statement of problem 3
• Objective of the study 5
• Research hypothesis 7
• Assumption of the study 8
• Scope of the study 9
• Significance of the study 9
• Limitations of the study 11
• Historical background of Marshal paints & Chemical company13
• Organisation of the study 15
• Definition of operational terms                                         16

 

CHAPTER TWO

• Review of related literature                                               21

2.1     Meaning of working capital                                               21

2.2     Composition of working capital                                         23

2.3     Factors of affecting the composition of working capital    24

2.4     Current assets                                                                    26

2.5     Current liabilities                                                               28

2.6     Management of working capital                                         29

2.7     Types of working capital                                                             30

2.8     Characteristics of working capital                                      30

2.9     Sources of  working capital                                               31

2.10   Uses of working capital                                                     33

CHAPTER THREE

• Research methodology and procedures 37

3.1     Selection of data                                                                38

3.2     Collection of data                                                               38

3.3     Nature of data analysis                                                       41

 

CHAPTER FOUR

• Data presentation and analysis 45
• Presentation of data 46
• Analysis 47

 

CHAPTER FIVE

5.0     Summary and recommendation                                                   69

5.1     Summary and findings                                                      69

5.2     Recommendations                                                             71

Bibliography                                                                      74

Questionnaire                                                                    77

 

 

CHAPTER ONE

INTRODUCTION

One of the major objectives of most business organisation is profitability. However, in financial management, it is generally believed that liquidity is more important than profitability. One of the reasons for this is that most organisations make profits, but do not possess enough or adequate liquid asset to off-set current obligations. Inability to make payment as t when due may definitely have serious consequences on the organisation. This situation may give rise to a loss of goodwill and furthermore any result to technical insolvency which may lead the organisation to unintended liquidation.

 

A second reason is that uncertain inherent in this present days economic/business environment threatens the survival of every business, thus making sound liquidity and cash management a necessity points in corporate planning. This claim is substantiated in the recent times by the fact that the importance of management  of liquid asset has been gradually and systematically gaining prominence and growth in most manufacturing companies or firms. This incidental prominence and growth of liquidity management makes it very apparent that no firm can survive without an effective and efficient management of its liquid resources which is the working capital.

 

The working capital by all standards is been and regarded as the life –wire of any business organisation it is particularly important in the daily maintenance and running expenses involving cash. For the purpose of this project, the working capital of a firm comprises of the cash balance, marketable short-term securities, inventories and accounts receivables. On the other hand, net working capital is the excess of current assets over current liabilities. Therefore, working capital management refers to the efficient administration of both the current assets and current liabilities.

 

The rationale of working capital management is on the realization that current asset holding should be increased to the point where marginal returns on increases in such assets are equal to cost of capital required to finance such additions while current liabilities should as much as possible be used instead of long term debt whenever this reduces the average cost of capital. Current assets characteristically constitute more than half the assets of most businesses and the size and relative volatility of these assets make it necessary for such assets to be closely monitored. Thus disproportionate amount of time of the financial controller is devoted to the management of working capital.

 

Finally, efficient management of working capital is important to both large and small firms, especially during this austere period because if the efficiency of managing working capital is not available, no amount of finance provided will transform a financially weak organisation performance into a strong and dynamic organisation with a remarkable reputation.

 

• STATEMENT OF THE PROBLEM

It has been recognized that one of the greatest problems of this present day firms is the lack of effective and efficient management of the resources at their disposal. This problem is worsened considering the present fiscal policy of banning the importation of some essential raw materials, leaving the manufacturing firms with meager source of locally few produced raw materials.

Decisions effecting liquid assets are influenced by an obvious fact and subjective judgment of most companies. The financial controller of a company my have some of the facts of the cost of borrowing from a bank but these facts are only part of the information that he requires

 

 

 

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APPRAISAL OF TECHNIQUES FOR EXPENDITURE CONTROL IN GOVERNMENT OWNED HOSPITALS

 

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 ABSTRACT

 The researcher has primary examined some of the expenditure control techniques that are and could be applied in government owned hospitals. Noting the obstacles and their rate of effectiveness, emphasis are laid on the techniques already in application.

 

Data for the research were gathered through interviews, questionnaires and financial regulations. Percentages were used in the data analysis. The following are the research findings.

 

Budgeting, internal control and audits are commonly used by government owned hospitals in order to curb expenditures, cost  benefits, analysis and management audits that could be applied are not in use.

 

Variance analysis is the budgeting review technique universally applied for analyzing budgeting estimates. The effectiveness of each of these techniques are hindered by obstacles inherent in the implementation.

 

Government indicates the goals to be achieved with a given outlay. It is therefore essential to control the expenditure to serve the allowed purposes. Expenditure controls may be positive or negative. Expenditure controls essentially reflect a managerial process that is both political and administrative. The type of expenditure controls employed and their effectiveness are dependent in the external and internal environment of the ministry and the respective hospital.

 

 

CHAPTER ONE – INTRODUCTION

• Background of the study
• Statement of the study
• Objective of study
• Significance of study
• Research question
• Scope and limitation
• List of abbreviations
• Definition of terms.

 

 

CHAPTER TWO – REVIEW OF RELATED LITERATURE

2.1 Internal control

2.2 Responsibility for internal control

2.3 Internal control as expenditure control techniques

2.4 Internal auditing

2.5 Internal Audit as an expenditure control technique

2.6 Management Audit.

 

CHAPTER THREE

3.1. Summary of findings

3.2 Recommendation

3.3 Area for further study

Bibliography

References.

 

 

CHAPTER ONE

 

1.1     BACKGROUND OF STUDY

In all organization, except possibly the tinnest, there is a process called expenditure or as used in the most commercial organizations , cost control process. Expenditure control has been defined as the process by which managers use effectively and efficiently the scare resources of the enterprises in the accomplishment of the organizational objectives. Most studies of the expenditure control techniques have been done in business organizations and most of the new control techniques applied in not – for – profit public corporations were developed in these organizations. Most description of the management expenditure control processes therefore tend to assume, usually implicitly but sometimes explicitly, that the process of expenditure control is taking place in a business enterprises.

 

The research report in contrast, is a study of expenditure control in government owned not for profit organization. Its thesis is that the basic control concepts are the same in both profit oriented and non-profit organization but that because of the special characteristics of non-profit organizations, the application of the techniques developed in profit oriented organization are subject to certain modifications before they can be effectively applied especially to the non-profit organizations owed by the government.

 

Many business persons, as well as many accountants approach not for profit organizations expenditure control with a certain amount of trepidation because of lack of familiarity with such accounting. There is no real reason for this uneasiness because except for the few special characteristics, non-profit organization expenditure control follow many of the same principles followed by commercial enterprises.

 

One of  the special characteristic lies in the reason for their existence. In over simplified terms, it might be said that the ultimate objectives of a commercial organization is to realize net profit for the stockholders. As such the decisions made by their management are intended to increase (or at least maintain) profits, and success is measured to a significant degree by the amount of profit that these organization earn. Were as the ultimate objective of a government owned non-profit organization is to meet some socially desirable need of the community.

 

The primary concern of the government in relation to its not-for-profit organizations is to inquire whether resources are being used in a manner consistent with goals of alocative efficiency and stabilization of the economy. The role that transcends the narrow concerns of the shareholders and arises from the government functions as a protector of the consumers interest. Thus, the decision made by the management of these organizations are intended to result in the best possible service within the available resources and their success is primarily measured by how much service they render and by how well they render it.

 

1.2     STATEMENT OF STUDY

The need for effective management of resource in government owned not-for-profit organizations cannot be over emphasized. This is because while goal attainment is an important index of public service efficiency, the government can no longer pretend that the question of cost is secondary. This has necessitate in government instructing public service organization to “count down costs” as it embarks on its programmes. No wastage of financial resources should therefore, be permitted.

 

It is therefore essential, that expenses should not be incurred  more than is just necessary. Extensive expansion within limited supply of funds necessitates an optimum utilization of expenditure control system designed in a manner that can allow for maximum utilization from minimum resources. Also available financial resources can only be managed optimally it there exist effective techniques for expenditure control.

 

This study is thus conducted in order to appraise and review some of the available techniques for control of expenditure opened to government owned non profit organization and its applicability to those owned by the Nigerian Government especially hospitals.

 

 

 

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UNIVERSAL BANKING IN AFRI BANK

 

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ABSTRACT

Universal banking has been of controversial issue among practitioners and regulation of financial sub-sector of Nigeria economy.

However most of these decisions have been flamed by lack of common understanding of what universal banking is and what its implication might be for the country’s financial and economic well being.

The research attempt to redress that situation by presenting a well accepted understanding of the system.

Secondly, discussing its applicability or lack thereof to Nigeria commercial services and industry and assessing how effective such system could be in Nigeria.

Interview was conducted by the researchers to understand the profile of the case study: Afri bank plc. And how the bank practices universal banking.

Both primary and secondary data was used to also carryout the research work.

 

 

TABLE OF CONTENT

CHAPTER ONE: INTRODUCTION        

• Background of the study 1
• Afribank plc profile and location 3
• Universal banking as practiced by Arfribank. 4
• Statement of the problem                                        4
• Purpose of the study 5
• Research questions 6
• Significance of study 7
• Scope and limitation and delimitation 7
• Definition of terms/concept 8

Reference                                                                 10

 CHAPTER TWO: LITERATURE REVIEW

• Definition of universal banking 12
• Before the introduction of universal banking in Afribank. 17
• Origin of universal banking in Afribank 17
• Universal banking concept in Afribank. 20
• Universal banking and supervisory authorities 22
• Argument for and against universal banking 24
• The merits of universal banking 25

Reference                                                                 27

CHAPTER THREE: RESEARCH METHOD AND DESIGN

• Research method and design 29
• Sources of data 29
• Population 30
• Sampling method 31
• Method of analysis 32

Reference                                                                 34

 

 

CHAPTER FOUR: DATA PRESENTATION AND METHODOLOGY

• Testing questionnaire analysis and methodology 35
• Hypothesis testing 39

Reference                                                                 43

 

CHAPTER FIVE: FINDINGS, RECOMMENDATIONS AND CONCLUSION

• Findings 44
• Recommendations                               45
• Conclusion 46

Bibliography                                                            48

Appendix                                                                 50

 

CHAPTER ONE

• BACKGROUND OF THE STUDY

The concept of universal banking has in recent times remained a contemporary subject of discuss especially on the readiness of the Nigerian banking industry for the system. The universal banking systems is expected to give the bank right (depending on its corporate objective and core competence) to engage in any financial service ranging from accepting deposit, lending, trading in financial instruments, foreign exchange transaction, underwriting of debts, equity issues, brokerage, real estate mortgage, leasing, investment management and possibility insurance.

 

This concept is obviously a direct consequence of the globalization wake, which is now turning the world into  global village for operators in different sectors of human endeavours. The expectation is that such universal banking would be allowed to engage in all fields of financial services comparable to that of any part of the world.

 

The banking industry in Nigeria has remained on the cutting edge and trying always to keep pace with the world’s standard, hence the reason for the quest by bank operators for the introduction of universal banking to give an additional leverage to methodology their customers needs and expand operation.

 

Universal banking operation is no doubt necessary for Nigerian bankers if they want to remain relevant in the international community. Universal banking amongst other things encourages operations with adequate capitalization, which would find profitable diversification into related areas that would add value to customers and improve profitability.

 

The universal banking concept would also encourage banks to operate in manners, which will bring all financial service. under one roof for the convenience of the customer with all these in mind, a bank which operated like a merchant bank could aspire to expand to a full fledge commercial bank status, embracing both investment and securities operation within group, expand to have insurance brokering arm, acquire an insurance brokering company where necessary to operate in its group.

 

It could be also decide to remain an investment bank or a merchant bank if it has core competence in this area. (Bullion 2000).

 

• AFRI BANK PROFILE AND LOCATION

Afribank plc is located at Opara Avenue along Abakaliki express road Enugu. It was registered as a banking industry in 1959. the bank did not change from a merchant bank to a commercial bank rather it started going into universal banking scheme gradually before other banks started clamoring for universal banking.

The bank comprises of seven (7) department named as follows:

1. The accounts/clearing department
2. The cash unit
3. The transfer department
4. The credit department
5. The customers services
6. The administrative department
7. The internal control department

The bank has a staff strength of fifty seven (57).  

 

• UNIVERSAL BANKING AS PRACTICED BY AFRIBANK PLC.

Insurance represented by its Afribank insurance Ltd, Trustee Activities represented by the Afribank trusteeship Ltd (ATL), Stock brokerage, which is represented by the Afribank brokerage ltd. As can be seen from the above, the bank is also into merchant, commercial banking and insurance.

 

• STATEMENT OF PROBLEM

The issue of universal banking as a recent phenomenon in the Nigerian banking environment, and as such the practice of the system has been hampered by series of problem.   

The first problem

 

 

 

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AN EVALUATION OF THE IMPACT OF URBAN DEVELOPMENT BANK IN PROJECT FINANCIAL IN NIGERIA

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ABSTRACT

The project is on the “On the evaluation of the impact of Urban Development Bank in project financial in Nigeria. The importance of this is on the benefits of Urban Development Bank in Nigeria especially to the governments and those who manages the activities of the Urban Development Bank as they would gain the knowledge on how to finance Urban Development Bank of Nigeria in project making.

 

The research was carried out in a number of states and some branches of Urban Development Banks and found out that the Bank lacks branches in many State and should be traced and solved through their Headquarter in Abuja.

 

 

TABLE OF CONTENTS

CHAPTER ONE

1.0     Introduction

• Objective of the study
• Research Questions
• Scope and Limitations of the study
• Definition of  Terms
• Significant of the study

 

CHAPTER TWO

2.0     Urban Development Bank and other Development Banks

• Similarities between Urban Development Bank and other Development Banks
• Differences between Urban Development Bank and other Development banks
• Source of Funds

 

CHAPTER THREE

• General findings, Recommendations, and Conclusion

3.1     General Finding

3.2     Recommendation

 

 

 

CHAPTER ONE

• INTRODUCTION

In the history of Nigeria, most of the Governments at one time or the other and also the articulate members of the public have recognized the growing need of Urban infrastructure Development in Nigeria. This can easily be inferred from the alarming rate of urbanization in Nigeria. Over the past few years and they continued deteriorating State of Urban environment and the numerous attendants problems.

 

The background to the setting up of the Urban Development Bank of Nigeria PLC can be traced to the preparation of the third National Development Plan in 1974-75. At that period, Urban problems were becoming very visible and important that the ten Federal Government had to set up a Federal Ministry of Urban development and environment. This ministry had to scrapped about three years after due to the inability of the ministry to properly execute its  orations, as a  result of the failure of conceptualization of what should be the mission of the ministry.

 

In appreciation of the necessity to redress the  situation of deteriorating various state of our Urban environments, some various committees had been  set up of government to look into the matter adequate.

 

These committees came up with various reports and proposals  gave rise to the establishment in 1997 of the Nigeria State Urban Development Programme (NSUDP) for the purpose of reducing the acute shortage of accommodation in the then newly created States of Bauch, Benue, Gongola, Imo, Niger, Ogun and Ondo. But it was soon realized that the  programme was not capable of adequately handling the programme of Urban Development.

 

As a result of this inadequately, the infrastructure Development fund (IDF) was introduced in 1985 as a replacement for the Nigeria State Urban Development programmes. The infrastructure Development fund (IDF) was introduced and soon ran into troubled water in order to find a permanent or lasting solution to the problem, Government accepted the proposal of developing a financial structure based on local initiatives and resources for Urban development with increased value of financial discipline. Hence, the Urban Development Bank of Nigeria Plc was established  under Decree No. 51 of 1992, better known as the Urban Development Bank of Nigeria Decree of 1992.

 

In conclusion, the urban development bank of Nigeria Plc was established  and charged within the promotion and development of urban centers through the provision of financial credit on a long term braise to States, Local Government and private sectors for the purpose of the Urban project and  financing.

 

The bank is expected to finance project on Urban infrastructure, Urban Benewal, Economic Development project, social projects and Institution Development.

 

1.1     OBJECTIVE OF THE STUDY

          The purpose for which the writer dedicated to undertake this study is lasted below:

1. To review the sources of funds available to the Urban Development Bank of Nigeria Plc.

 

 

 

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THE ROLES OF THE CENTRAL BANK IN STABILIZING A DEPRESSED ECONOMY

(THE NIGERIAN EXPERIENCE)

 

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ABSTRACT

This study on the role of Central Bank in stabilizing a depressed economy was designed with the objectives of ascertaining if the Central Bank of Nigeria is achieving involved in the stabilization of Nigeria economy, to determine if Central bank of Nigeria has control measures over the management of money market and capital market to identify the role of central bank of Nigeria in the formation and implementation of the country and to recommend appropriate measures for improved quality contribution by the Central Bank of Nigeria for the country.

 

The Central bank is an important institution to a depressed economy like Nigeria, the financial trade and policies formulate and implemented by the Central bank are very important.

Infact if could be regarded as a pillar to the survival of the national economic development without which the economy will be in shamble.

 

In carrying out a research the research, secondary and primary data was collected and used accordingly. Related literature  were reviewed and questionnaires were prepared, distributed and analysed. The use of chi-square technique was used in analyzing the primary data. The findings of the research were reached. Following the findings, appropriate recommendation was stated in order for Central Bank to bring a stable economy should encourage good decisive policy and conclusion was reached hoping that this work will enable the role of Central Bank of Nigeria to be more appreciative.

 

         

CHAPTER ONE: INTRODUCTION

• Introduction 1
• Statement of the problem 2
• Purpose of the study 3
• Research hypothesis 3
• Significance of the study 5
• Scope and limitation of the study 5
• Definition of terms 6

 

 

CHAPTER TWO: REVIEW OF RELATED LITERATURE

• Introduction 10
• Definition 12
• Central Bank of Nigeria and its objectives 16
• Functions of Central Bank of Nigeria 19
• Monetary policy meaning and objectives 22
• Instruments used by Central Bank of Nigeria in stabilizing Nigeria                                                             33
• The roles of Central Bank of Nigeria in stabilizing Nigeria                                                             39
• Problems faced by Central Bank of Nigeria in stabilizing Nigeria 48

 

CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY

• Study area 52
• Sources of data 53
• Methods of investigation. 55

 

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS OF DATA

• Persecution and analysis of the questionnaire 58
• Test of hypothesis 69

 

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

• Findings                                                                78
• Conclusion 79
• Recommendations 80

BIBLIOGRAPHY                                                             83

APPENDIX                                                             85

 

CHAPTER ONE

• INTRODUCTION

The objectives of establishing central bank of Nigeria were to serve as banker to the banking systems, to perform supervisory role over the commercial banks and issue currency thus requiting the supply of money in the country. It also acts as financial adviser to the government on monetary policy and implementing the policy on behalf of the government, it involves issuing legal trader currency, maintaining the value of the domestic currency enhancing mobilization of fund.

 

The Central Bank of Nigeria is government bank, established to keep a country’s financial system under control and these supervision. The Central Bank of Nigeria is expected particularly in promoting economic growth by fostering the developing of money market and capital market, develop banking habits and sound financial system. In order to facilitate economic development, CBN tends to engage in activities, which extend beyond its traditional functions. In this regard, it played a unique role in the development of Nigeria economy; particularly in promoting agricultural and industrial development in general.

 

The Central Bank of Nigerian was established to act as the organ of government that should undertake the major financial operation of the government and by it’s conduct influence the behaviour of financial institutions so as to support the economic policy of the government. The CBN carries out this responsibility on behalf of the federal government through a process outlined in the Central bank of Nigeria decree 24, 1991 and the banks and other financial institution in formulating monetary policy.

In fact the roles played by CBN in stabilizing Nigeria economy is an enormous one. Since its inception in 1958, it had engaged in one stabilizing role or the other.

 

1.2     STATEMENT OF THE PROBLEM

The governments of the Nigerian economy has over the years witnessed serious macro – economic activities, low capacity utilization, growth unemployment heavy debt burden, acceleration inflation intensified exchange rate depreciation as well as high and perversed regime of interest rate, financing has been intensified as a major factor in the observed macro-economic problems. For stability calls for CBN intervention, to ensue confidence in the financial systems.

 

1.3     PURPOSE OF THE STUDY

          This project is mainly concerned with the objective of                   

Ascertaining if CBN is actually…

 

 

 

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