INTRODUCTION TO FINANCE

MODULE: INTRODUCTION TO FINANCE

Module Code	BCM103
Module Level	HE4
Credit Value	20
Module Leader	Dr. Raúl C. Rosales
Academic year	2020/2021

Assignment Brief

1. Purpose of the Assessment

To assess the learning outcomes and prepare students for broader studies into the world of business

2. Assessment Task

2.1 Individual Assignment (AS1) weighting 50 % of the marks (LO3-LO4)

You must select a company in the energy or infrastructure sector. Access on-line, the accounting statements of your selected company for two years and undertake the following:

1. Identify and explain the methods used by the chosen company to raise capital and funding its investments and current business (20% of marks)

2. Identify the main elements of working capital and discuss the factors that have been considering when managing the working capital (40% of marks)

3. Prepare a statement of key ratios covering profitability, efficiency and liquidity for two years. Discuss the financial position and company performance (40% of marks)

Word Limit: The assessment should be limited to 2,000 words (+/- 10%). If you end up with more than 2,200 words or less than 1,800 words you must revise the text judiciously to deliver work within the stated limits.

Style requirements: Except for the Titles and subtitles, you are not allowed to highlight text, which will be in Arial size 11, and without indentations. The main title is highlighted in size 16, and the subtitles are highlighted in size 14. The margins should be justified, not aligned to the left. Additionally, the space between lines should be single and the space between paragraphs should be double. The work will be in Report form and not the Essay form requiring and Introduction, the main body with subtitles and a conclusion.

2.2 Individual Assignment (AS2) weighting 50 % of the marks (LO1 – LO3)

Due to the coronavirus (COVID-19) outbreak, we have created an alternative assessment for your learning objectives to make sure you get the right understanding. The aim is to help you to continue with your studies with as little disruption as possible.

You have to prepare a report setting out the company’s financial situation. The report will look to address their various concerns and should be set out as in the question requirements

You have been provided with a briefing of a company’s activity, financial figures and main decisions taken by the board of the company. (See Annex for briefing and data)

In order to do this, you are required to do the following (see annexes for data):

1. Interpretation of the Profit or Loss Statement (Financial Performance). Use the case study information, particularly the P&L to analyse and comment on Peterborugh’s growth and profitability during the year 2018 compared to 2017. Use relevant ratios to enhance the quality of your analysis (50% of marks)

2. Interpretation of the Balance Sheet (Financial Position). Use Peterborugh’s Balance Sheet to analyse and comment on Peterborugh’s liquidity, efficiency and solvency as at the 31st March 2018 as compared to the 31st March 2017 (50% of marks)

3. Sources

It is expected that the Reference List for the Individual Assignment (AS1) will contain between five and ten sources. As a MINIMUM the Reference List should include one refereed academic journal and three academic books.

4. Specific Assessment Criteria

4. AS1 Written assignment weighting 50% of the marks (LO3-LO4)

1. Identify (10/100 marks) and explain the methods used by the chosen company to raise capital and funding (10/100 marks) to finance its investments and current business. Total 20/100 of marks

2. Identify the main elements of working capital (10/100 marks) and discuss the factors (30/100 marks) that have been considering when managing the working capital. Total 40/100 of marks

3. Prepare a statement of key ratios (10/100 marks) covering profitability, efficiency and liquidity for two years. Discuss the financial position (30/100 marks) and company performance. Total 40/100 marks

Total marks awarded: 100 marks

4. AS2 Written assignment weighting 50% of the marks (LO1-LO3)

You must prepare a report setting out the company’s financial situation and concerns, considering a briefing of a company’s activity, financial figures and main decisions taken by the board of the company. (See Annex for briefing and data)

You are required to:

1. Interpret the Profit or Loss Statement (Financial Performance). Use the case study information, particularly the P&L to analyse and comment (25/100 marks) on Peterborugh’s growth and profitability during the year 2018 compared to 2017. Use relevant ratios (25/100 marks) to enhance the quality of your analysis.

2. Interpret the Balance Sheet (Financial Position). Use Peterborugh’s Balance Sheet to analyse and comment (50/100 marks) on Peterborugh’s liquidity, efficiency and solvency as at the 31st March 2018 as compared to the 31st March 2017.

Total marks awarded: 100

5.Assessment Submission AS1 and AS2

Your assignment must be Word processed and presented in a report format with simple sub-headings. The word count should be as specified in the assignment above ± 10% (tables, diagrams and appendices are excluded from the count).

The Assignment report should have a Front Sheet showing your name, your student number, the module name, the module number, the assignment title, the module tutor’s name, the date and the word count.

All assignments will be submitted and graded electronically via TURNITIN. Several submissions will be permitted before the hand-in date in order to enable you to refine the content in your report.

To submit your work, please go to the ‘Submit your work’ area of the Module Moodle site. It is important that you submit your work to the correct module Moodle site, and that your work is submitted on time.

In the case of AS2 you have been provided with samples in the same Tasks that facilitates to fulfil the related Task. You must answer all tasks in one single document (you will not be able to submit more than one document).

Feedback on assignments in general will be provided to the whole group when marked assignments are returned. Feedback on assignments for everyone will be provided electronically via TURNITIN.

A student may obtain an individual appointment to discuss feedback with the tutor.

Submission Deadlines

Assignment (AS1): 4th January 2021

Assignment (AS2): 22^nd January 2021

6. Assessment Guidance

The quality of your presentation and academic referencing is very important. Please, use the Harvard Referencing System.

Within your assignment your tutor will be looking for content that addresses the key elements of the assignment brief.

Try not to overcomplicate your answers by choosing a company that you know little about. Keep to simple processes that you know well.

7. Academic Practice

These are individualassignments. Amity University [IN] London policy will apply in all cases of copying, plagiarism or any other methods by which students have obtained (or attempted to obtain) an unfair advantage.

Support and guidance on assessments and academic integrity can be found from the following resources:

Moodle / Policies and Procedures

Moodle / Student Corner

8. Learning Outcomes

The learning outcomes being addressed through these assignments are:

LO 1 – Explain the basic concepts and methodologies used in finance and accounting.

LO 2 – Explain the methods used by companies and individuals to raise capital and identify how financial markets and institutions are structured.

LO 3– Explain a company’s financial performance through the interpretation of their accounting results.

LO 4 – Identify and gather relevant information from various sources and explain qualitative and quantitative information with analysis, argument and commentary.

ANNEX

AS2 Case Study

Background

Peterborugh Co Ltd is a company which manufactures bottles for many different drinks’ companies.

Extracts from Peterborough’s latest financial statements for year-end March 2018 and 2017 are attached.

The directors were disappointed in the profit for the year to 31 March 2017 and held a board meeting in April 2017 to discuss future strategy. The Managing Director was insistent that the way to improve the company’s results was to increase sales and market share.

As a result, the following actions were implemented.

(a) An aggressive TV and radio marketing campaign costing £12 million was undertaken. The impact of this campaign on Peterborugh’s future revenue is uncertain.

(b) A ‘price promise’ to undercut any other supplier’s price was announced in the advertising campaign.

(c) A major contract with Koola Drinks was signed that accounted for a substantial proportion of the company’s output. This contract was obtained through very competitive tendering.

(d) The credit period for receivables was extended from two to three months.

A preliminary review by the board of the accounts to 31 March 2018 concluded that the company’s performance had deteriorated rather than improved. There was particular concern over the prospect of renewing the bank facility (shown as a bank overdraft) because the maximum agreed level of £30 million had been exceeded.

The board decided that it was time to seek independent professional advice on the company’s situation.

Requirements

The Board of Peterborugh’s has asked you to prepare a report setting out the company’s financial situation. The report will look to address their various concerns and should be set out as in the question requirements below:

1. Interpretation of the Profit or Loss Statement (Financial Performance)

Use the case study information, particularly the P&L to analyse and comment on Peterborugh’s growth and profitability during the year 2018 compared to 2017. Use relevant ratios to enhance the quality of your analysis.

2. Interpretation of the Balance Sheet (Financial Position)

Use Peterborugh’s Balance Sheet to analyse and comment on Peterborugh’s liquidity, efficiency and solvency as at the 31st March 2018 as compared to the 31st March 2017.

Profit or Loss Account as at year-end 31st March 2018:

Statement of Financial Position as at year-end 31^st March 2018:

General Assessment Guidelines for Written Assessments Level HE4

	%	Relevance	Knowledge	Argument/Analysis	Structure	Presentation	Written English	Research/Referencing
Class I (Exceptional Quality)	85-100%	Directly relevant to title. Expertly addresses the assumptions of the title and/or the requirements of the brief.	Demonstrates an exceptional knowledge/ understanding of theory and practice for this level through the identification and analysis of the most important issues.	Makes exceptional use of appropriate arguments and/or theoretical models. Presents an analysis of the material resulting in clear, logical and original conclusions.	Coherently articulated and logically structured. An appropriate format is used.	The presentational style & layout is correct for the type of assignment. Effective inclusion of figures, tables, plates (FTP).	An exceptionally well written answer with standard spelling and grammar. Style is clear, resourceful and academic.	Sources accurately cited in the text. A wide range of contemporary and relevant references cited in the reference list in the correct style.
Class I (Excellent Quality)	70-84%	Directly relevant to title. Addresses the assumptions of the title and/or the requirements of the brief.	Demonstrates an excellent knowledge/understanding of theory and practice for this level through the identification and summary of the most important issues.	Makes creative use of appropriate arguments and/or theoretical models. Presents an excellent discussion of the material resulting in clear, logical conclusions.	Coherently articulated and logically structured. An appropriate format is used.	The presentational style & layout is correct for the type of assignment. Effective inclusion of figures, tables, plates (FTP).	An excellently written answer with standard spelling and grammar. Style is clear, resourceful and academic.	Sources accurately cited in the text. A range of contemporary and relevant references cited in the reference list in the correct style.
Class II/i (Very Good Quality)	60-69%	Directly relevant to title. Addresses most of the assumptions of the title and/or the requirements of the brief.	Demonstrates a very good knowledge/understanding of theory and practice for this level through the identification and summary of key issues.	Uses sound arguments or theoretical models. Presents a clear and valid discussion of the material. Clear, logical conclusions.	Logically constructed in the main. An appropriate format is used.	The presentational style & layout is correct for the type of assignment. Effective inclusion of FTP.	A very well written answer with standard spelling and grammar. Style is clear and academic.	Sources are accurately cited in the text and an appropriate reference list in the correct style is provided.
Class II/ii (Good Quality)	50-59%	Generally, addresses the title/brief, but sometimes considers irrelevant issues.	Demonstrates a good knowledge/understanding of theory and practice for this level through the identification and summary of some key issues.	Presents largely coherent arguments. Some issues and theoretical models expressed in simplistic terms. Conclusions are fairly clear and logical.	For the most part coherently articulated and logically structured. An acceptable format is used.	The presentational style & layout is correct for the type of assignment. Inclusion of FTP but lacks selectivity.	Competently written with minor lapses in spelling and grammar. Style is readable and academic in the main.	Most sources accurately cited in the text and an appropriate reference list is provided which is largely in the correct style.
Class III (Satisfactory Quality)	40-49%	Some degree of irrelevance to the title/brief. Superficial consideration of the issues.	Demonstrates an adequate knowledge/understanding of theory and practice for this level. An attempt is made to identify key issues.	Presents basic arguments but focus and consistency lacking in places. Some issues may lack clarity, and/or theoretical models expressed in simplistic terms. Conclusions are not always clear or logical.	Adequate attempt at articulation and logical structure. An acceptable format is used.	The presentational style & layout is largely correct for the type of assignment. Inappropriate use of FTP or not used where clearly needed to aid understanding.	Generally, competently written although intermittent lapses in grammar and spelling pose obstacles for the reader. Style limits communication and is non-academic in a number of places.	Some relevant sources cited. Some weaknesses in referencing technique.
Borderline Fail	35-39%	Significant degree of irrelevance to the title/brief. Only the most obvious issues are addressed at a superficial level and in unchallenging terms.	Demonstrates weaknesses in knowledge of theory and practice for this level, with poor understanding of key issues.	Limited arguments, which lack clarity in places. Conclusions are neither clear nor logical.	Poorly structured. Lack of articulation. Format deficient.	For the type of assignment, the presentational style &/or layout is lacking. FTP ignored in text or not used where clearly needed.	Deficiencies in spelling and grammar makes reading difficult. Simplistic or repetitious style impairs clarity. Style is non-academic.	Limited sources and weak referencing.
Fail	<34%	Relevance to the title/brief is intermittent or missing. The topic is reduced to its vaguest and least challenging terms.	Demonstrates a lack of basic knowledge of either theory or practice for this level, with little evidence of understanding.	Severely limited arguments. Lacks clarity. Conclusions are sparse.	Unstructured. Lack of articulation. Format deficient	For the type of assignment the presentational style &/or layout is lacking. FTP as above.	Poorly written with numerous deficiencies in grammar, spelling and expression. Style is non-academic.	An absence of academic sources and poor referencing technique.