Assessment of the financial performance of Danchi Farm using key ratios and critically appraise the budgetary process

UNIVERSITY OF GLOUCESTERSHIRE
IN ASSOCIATION WITH
OPEN LEARNING CENTRE

Program :- Corporate Management Development
Program (CMDP)
Course

MBA

Module

Managing Finance

Cohort

G6

Name

Daniel Chinyemba

Lecturer

Isaiah Ruzengwe
Ephrem Chikwereti

Word Count

4499

Due Date

23rd September 2013

OPEN LEARNING CENTRE
AFFIRMATION OF OWN WORK
This submission on 23rd September 2013 of Managing Finance is the result of my own work.
Primary and secondary sources of information and any contributions to the work by third parties, other than my tutor/other tutors, have been fully and properly attributed. Should this statement prove to be untrue, I recognize the right and the duty of the Board of Examiners to take appropriate action in line with University of Gloucestershire’s regulations on assessment. Signed

…………………………………….

Date 14 th August 2013

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Assignment Question
Part (a)
Assess the financial performance of Danchi Farm (Pvt) using the following key ratios


Gearing ratios



Liquidity ratios



Profitability ratios



Efficiency ratios

Part (b).
Critically appraise the budgetary process in your own organisation.
Using a budget report explain why variances have occurred and their possible effects on the organisation and justify suitable responses.

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Executive Summary
Background.
This report presents a critical analysis of the performance ratios and the budgetary process of Danchi
Farm (Pvt Ltd. The presentation is in two parts where part (a) deals with a critical assessment of the financial performance and ratio analysis of the four categories of ratios which are Gearing, Profitability,
Liquidity and Efficiency ratios. Part (b) critically appraise the budgetary process, and analyses the variances in the Statement of Comprehensive Income report of the farm. The author draws appropriate conclusions and recommendations thereof.
Methodology
The author defines the

References: Atril, P. & Mclaney, E. (2006). Accounting and finance for non-specialists. London: Prentice Hall. BusinessDictionary.com. (2013, September 20th). What is a budget? definition and meaning. Retrieved September 20th, 2013, from BusinessDictionary.com: DocShare.com. (2009, September 20th). The strength and weaknesses of traditional budgeting. Retrieved September 20th, 2013, from Human resources in organisations. 2nd Ed.: http://www.docshare.com/doc/172509/The-strengths-and-weaknesses-of-the-traditional Mathias, R. (2001). Corporate finance live. Retrieved September 16th, 2013, from Ratio analysis: http://www.prenhall.com/divisions/bp/app/cfl/RA/RatioAnalysis.html Riley, J. (2012, September 23rd). Finance and accounting: Introduction to financial management. Retrieved September 16th, 2013, from Tutor2u: http://www.tutor2u.net/business/accounts/finance_management_intro.htm