Task 1- Financial analysis of Proposed Transaction and preparation of information memorandum:
The purpose of this task is to evaluate the financial viability of the transaction that thecompany is proposing to undertake and preparing information memorandum for management.
For this task I will need to call the Capital budgeting technique for long-term transactions. The Information memorandum is the document defining the work and details of financing. The financial viability of transactions related to long-term projects could be evaluated using different capital budgeting techniques. The techniques of Net Present Value, Internal Rate of Return, payback period etc can be used to evaluate the transactions (Bierman & Smidt, 2012). The Information memorandum is prepared so that management could get an overview of the financial viability of the project.
I plan to use all this technique so that the transaction company enters into is beneficial and useful for both long and short term. In order to provide management the details of the transactions I will prepare an information memorandum providing the details and logic behind the transaction.
Task 2- Research of Industry Sector:
The purpose of this task is to conduct research of the industry sector.
It is important for the success of Tawuinya that management should be aware of its competition and general business environment. The preparation of monthly or weekly financial report and comparing it with the industry and competition is a routine exercise for any successful business. The financial performance of the company can be effectively compared with competitors by calculating key financial ratios. There are few important ratios that reflect the overall conditions of the business and when these ratios are compared with industry and competitors then the financial standing of the company could be ascertained. The important ratios are Current ratio, Debt equity ratio, profitability ratio, return on assets, return on equity etc (Brigham & Ehrhardt, 2013).
I plan to use all these ratios to compare the financial position of the company with the competitors. It is my plan to calculate the ratios on monthly basis and compare it with industry data. This will be helpful because if any corrective measures are required to be taken for improving the performance of the company then it can be immediately undertaken.
Task 3- Preparing financial statement, projected cash flow and income tax projection:
The purpose of this task is to provide complete financial transaction along with estimates.
I will need to apply the theory of Forecasting of financial transactions. The financial statements are the report that reflects the financial position and activities of an enterprise in a structured format. The financial statements are prepared in accordance with the format prescribed by statute. The projected cash flow shows the estimate of the cash inflow and the cash outflow that the company is expecting. It is important because liquidity is the essential requirement for any business. If the company lacks liquid cash then the functioning of the business might be hampered as a result the company may incur loss. It is mandatory for a company to pay taxes therefore it is prudent to make a projection of tax to be paid so that any penalties could be avoided (Cole & Gerhard, 2014).
I will prepare the financial statements in accordance with applicable format as prescribed by law. In order to prepare a projected cash flow I will prepare a plan of all the cash inflows and cash outflows. In order to prepare a plan I will estimate the overall business activity beforehand. The tax regulations are clear to me so while preparing the estimate I will also prepare a projection of tax that will be helpful to the business.
Task 4- Preparation and proof read of investment management performance, reports and client fees calculation.
The purpose of this task is to manage investment efficiently and calculating client fees.
I will have to use the calculation of IRR using weighted average market value of securities. The market is extremely volatile and it is continuously changing so it is important for an investor to be continuously updated about the market and regulatory changes. There is a theory proposed by the CFA institute that a performance report should at least have rate of return and that should be calculated using weighted average market value of securities (Moten Jr & Thron, 2013). The client fees should be calculated using accrual principle.
I wish to apply the concept of calculating IRR using the market value of investment while preparing the investment performance report. I will also thoroughly proofread the entire report to be sure that there are no mistakes in calculating the performance of investments. I plan to apply the concept of accrual while calculating client fees.
Task 5- Update and maintain spreadsheet for Equity Portfolios: Stock Analysis pages.
The purpose of this task is to analyse the stock investment by preparing and updating spreadsheets.
For this task, I will need to utilize the Tracking of Investment using excel.
The investments activities can be tracked effectively using excel spreadsheets. It can also be used for calculating return, profit or loss using closing price and the standard deviations (Walkenbach, 2013). The tracking of investments are important because a loss making investment can cost heavily to the company. Due to the heavy cost that the company has to bear, it becomes such an essential task to track investment effectively.
I wish to track investment using excel and calculate return on investment. This will help me to always be updated about the money invested in the market.
Task 6- Budget forecast monitoring/ identifies financial status by comparing and analysing actual sales with plans and forecast.
The purpose of the task is to evaluate the financial position of the company by comparing budgeted figures with actual figures.
In order to prepare a financial forecast a budget is prepared for internal management purpose. These budgets are prepared on monthly basis for monthly monitoring. The differences between the actual and budgeted figures are calculated and the reasons for such differences are analysed (Hope & Fraser, 2013).
I wish to apply the same technique for determining the difference between actual and forecasted figures. I will prepare the budget every month so that the reasons for such difference could be analysed as early as possible. This process will ensure that problems identified are solved and the corrective measures are taken immediately. This task is very important as it will give direction to the company so I look forward to conduct this task with utmost sincerity.
Task 7- Analysis of important benchmarking ratio:
The purpose of this task is to choose a benchmark and compare the performance of the company with that of benchmark.
Benchmarking and performance analysis will be my guide to perform this task. In order to maintain the benchmarking data of the companies the various type of the operations and the income of the company are compared with another company which is considered best according to the industry standards and the selected company is able to compare the results of services (Camp, 2013). This is particularly helpful in financial companies where the data needs to be compared with the best performer in the industry.
I wish to apply the forecasted ratio of the various types of the financial data on the basis of the ratio calculated in the benchmarking performance of the company and compare the standings of the company based on the present industry standards.
Task 8- Improvement in the financial status and the analysis of the results and continuous monitoring of the variances:
I will need to utilize the approach of the Variance Analysis and Standard Deviation . The various type of the monitoring of the data is based on the graphical and statistical representation is helpful for the purpose of the evaluation of the various types of the changes in the present and the future (Spronk et al., 2016).
I will use this data for tracking the changes in the financial data are also helpful in the assessment of the future viability of the project and the companies are able to assess the profitability aspect through the simple representations of the graphs. The improvement in the present policies of the project is evaluated based on the changes in the monitoring of the report.
Task 9- Reconciliation of the transactions by comparison and the correcting of the data:
The purpose of the reconciliation of the transactions by the comparison and the correcting of the data are useful for the evaluation of the various type of the graphical representation of the financial data. This data is particularly helpful for the purpose of the comparison of various type of the financial data such as stock market (Shah, 2013).
I will need to use of this technique for reporting and comparison of the various types of the statistical and financial data, which are needed for the purpose of the evaluation of a portfolio of the selected organization I will also be able to prepare in detailed report of the analysis based on the graphical representation of the data. The reconciliation of the transaction is also useful for a quick evaluation of the changes, which are needed to be made in the project and an easy identification of the project problems and works to provide an easy solution.
Task 10 – Foreign exchange:
Foreign exchange is referred to as the process of conversion one currency into another. It is also referred to as the global market in which the currencies are exchanges around the clock (Jacque, 2013).
As Tawuniya will more likely deal with international reinsurance firms. I intend to apply the various types of the theory where there is higher amount of hedging cost, which is related to increased currency volatility. I will be also able to assess the various types systematic importance of the big banks, which is involved, with the forecasting of the losses and the potential risk involved with the forex transaction. Although the currency trading is seen as a zero sum policy, still the big banks need to properly manage forex for currency risk hedging.
3.Discuss the value that your role and personal attributes may bring to your Organisation.
With the attributes that I possess, my previous experience in the insurance industry and my current study in New Zealand, I can contribute to the changing needs of the customers’ needs. Also, I could bring benefits of diversity to the company through the culture understanding and my English as well.
This will lead to an improved customer approach and help the insurance companies to have a better reputation in the market. The attributes will look forward to build a trusted relationship with the customer. The extensive understanding of the macroeconomic environment analysis will further help to assess the present economic situation of the country and know about the spending habits of the people.
The various types of the alternate ideas for solving the current problems of the industry need to be addressed with the allocation of the funds properly into various types of the financial institutions like banks. The company also needs to forecast the requirement of the fund in the various type of the project by using capital budgeting techniques such NPV, IRR and payback period method. This will helps the company to evaluate the various types of the requirement need for long-term financing of the project. The evaluation of the projects based on these techniques helps the company to know about the available amount of free cash flow (Embrechts et al. 2013 ).