Performance measurement of a company has been the subject matter of discussion to the planners, administrators, managers, economists and academicians since long. There is a need for comprehensive consideration company so that their performance can be objectively evaluated. The major indicators may be –
I. Liquidity Ratio
II. Profitability Ratio
III. Solvency Ratio
IV. Efficiency / Activity Ratio
V. Common-size Statements
VI. Trend Analysis
VII. Multivariate Model of Distress Prediction.
Scope of the Study:
Eastern Cables Ltd. is the holding Cables organization carrying ...view middle of the document...
Time constraint is one of the major limitations. The majority portion of the study has been based on the secondary sources of data.
In addition of the above, our sample enterprise is a Joint Stock Limited Company, which does not provide us with all the necessary information as required due to their sensitivity and competitiveness in regard to its competitors.
In Spite of these limitations, I have tried my best to pinpoint various finding and to provide the students and researches of tomorrow with valuable information.
An Analysis of the Impact of
Reporting System on Financial Control
A Case Study of Eastern Cables Ltd.
This paper is the outcome of Term Paper Report undertaken with a view to assess the performance evaluation of a cable producing enterprise. The study explores the operational performance, re-turn on investment and the measurement of activity, liquidity and solvency of a cables factory. Cables is an important wiring material, has a good demand in the present socio-economic condition of Bangladesh. It is found that investment in cables is fairly profitable. Hence, in recent times investment in this industry has been an increase like as BRB Cables, Paradise Cables, Sunshine Cable. The future prospects of cables industry are bright provided the operational performance is improved and maintained.
Performance Evaluation which is variously known as appraisal, measurement, assessment etc. refers to an on going appraisal of quality, quantity, style and determinants of present performance, growth potentials etc. to provide control information leading to an action programme and enabling feedback aimed to performance improvement, growth & satisfaction.
The success or failure of a company needs to be evaluate periodically through performance measurement.
This study was undertaken to evaluate operational business performance and financial performance of Eastern Cables Ltd. through ratio analysis.
After fulfilling the local demand Eastern Cables Ltd. has been exporting substantial quantity of different types and size of cables to various countries of the world including USSR, Kuwait, U.A.E., Singapore etc. Eastern Cables Ltd. is also receiving orders after competing in various International Tenders floated against different foreign financed projects within the country and has successfully executed such orders and earned huge amount of foreign exchange for the country. The Programme of manufacturing of Crosslinked Polyethylene (XLPE) insulated cables is under execution.
Objectives of the Study:
The main objectives of the study are:
➢ To examine the operational performance of the chosen cables factory through the relevant profitability ratios and multivariate model of financial distress prediction.
➢ To assess the sufficiency / adequacy of the return on investment through the ROI, ROTA, ROSE, EPS and P/E Ratio.
➢ To evaluate the financial...