CHAPTER ONE INTRUDUCTION
Current assets as one of the management tolls of business organization are very important in the proper function of business and achievement of organizational goal. Current assets are those assets that are readily without loss in value and interference in the normal process of the business. Management on the other hand involves getting things done through other people by planning, organizing and cordinating. It is also a social and technical proves that utilizes resources and changes human behaviors in the desired direction in order to elicit contribution that will accomplish the objectives of the organization.
Current asset management includes – managerial decisions on how the various component of current asset are to be financial as well as planned policies on the composition level to be maintained and control to be exercised. Current assets comprises of cash, inventories, governments bonds, account reachable (debitos) mark able securities, prepaid expenses and also other assets that are capable of being converted into cash within a relatively short period without interfering with the normal operations of the business. For an organizational goal to be achieved these components of current assets should be efficiently managed.
But sundry debtors and cash tie-up investment funds can also have other costly disadvantages, for this reason, organizations should always seek to minimize or keep optimum stock and cash level of these assets and ideally reduce them to zero. However, reducing them to zero is rarely practical since to do so will result in cash greater of other adverse costs increased. The determination of the optional level for such assets is therefore the result of balancing process between the cost of holding such assets and role associated with not holding than or of holding only small amount. It is obvious that any mismanagement of these current assets will result to loss of cash, which will eventually have an advice effects in the entire management of the company.
Therefore, any step which can be taken to minimize levels of current assets probably yield large savings in cost. Investigations has shown that many business concerns fail or perform below expectations as a result of the inability to manage their current assets adequately. The importance of a well coordinated current assets, management cannot be over-exaggerated, it goes a long way to boast productivity, availability of funds, profitability and encourages growth and expansion of the company. The researcher therefore tend to investigate and be able to come out with a profitable result on effective and efficient management of current assets in public limited liability companies and suggest possible ways for further improvement.
1.2 BACKGROWND INFORMATION OF THE CASE STUDY NIGERIAN BAREWERIES PLC
SCOPE OF OPERATION:
Nigerian breweries plc is the pioneer and largest brewing company in Nigeria, was incorporated in 1946, and recorded a landmark when the first bottle of star large beer rolled off the bottling lines in its Lagos brewery in June 1949. This was followed by Aba brewery, which was commissioned in 1957. Kaduna brewery in 1963 and Ibadan Brewery in 1982. In September 1993, the company acquired its gift brewery in Enugu. On April 9,2001, it recently christened the Ama green field brewery in Enugu, the largest in Africa. The brewery will be commissioned in October 2003. Thus from its humble beginning in 1946, the company now has five operational breweries from which its high quality products are distributed to all part of this great country. EXPORT Nigerian Breweries (NB) plc has an increasing export business that dates back to 1986 currently, they export to the U.K, U.S.A, Italy, Neither lands, Germany and Kenya.
RESEARCH/DEVELOPMENT
NB Plc keeps pace with key international developments, thus ensuring that its systems, processes and operational procedures are always in conformity with world-class standards. It is inline with this policy that the company established a research and development center in 1987 to enhance its research activities on all aspects of brewing operations.
ANCILLARY OPERATIONS/SERVICES.
As a major brewing concern, the company encourages the establishment of ancillary business. Many of these organizations and individuals depend largely on the company for their means of live hood. These include manufacturers of bottles croon corks, labels, certons, plastic crates, and such services as hotels clubs and our key Distributors.
SOCIAL RESPONSIBILITY:
Nigerian Breweries Plc is a socially responsible corporate citizen with a very good record of corporate philanthropy in the areas of education, the environment and communications among others. The company in 1994 established an Education trust fund of N100 million to take more action part in the funding of educational and research facilities I\n higher Institutions, all in all efforts to provide and encourage academic excellence in Nigeria. This is in addition to its secondary and employees. The companies have its authorized share capital of 2.4billon.
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