Report on Financial Position of the Company




Report on Financial Position of the Company :


ABC LIMITED

191 / N - Patricia Avenue
Liverpool – 600 020
Phone : 0011 - XXXXXXXX
Fax : 0011 - XXXXXXXX



May 5 - 2009


Committee on Review of Financial Position




Dear Sirs,


Appointed by the Directors, the Committee has looked into the financial position of the Company and has following report to submit.


Facts of the Case :


1. The Company is over-staffed and the distribution of work among the Staff is irrational.


2. The Company have been taking 20 typewriters, 2 duplicating machines and 30 ceiling fans on hire which involves a recurring expenditure of a very high order.


3. There is little follow-up programme to realise the outstanding debts of the Company with the result that the circulation of money is hampered.


4. The trade discount offered by the Company is 5% higher than that offered by the competitors.


5. The entertainment bills are inflated.


6. The Company is housed in a very large building at a very high rent.


The Committee has, therefore, following recommendations to make.


1. Economy cut may be exercised in the staff by 20% and the work load may be more rationally distributed among the members of Staff.


2. The equipment on hire may be purchased to reduce the high recurring expenditure bill.


3. Vigorous drive may be launched to pursue old debts.


4. The trade discount offered may be made at par with the competitors.


5. Austerity may be ensured for one or two years.


6. The Company may rent a cheaper accommodation.


7. Checks and counter checks may be adopted to tone up general efficiency.


Yours Truly,


For ABC LIMITED


(V. RAJAN PETER)

Secretary

Committee on Review of Financial Position




From
Report on Financial Position of the Company
to HOME PAGE