SEM-VI, students,
Here, you all find forth committee Report.
Download from here and do bring in your class.
COMMITTEE REPORT
Report: 07: Report on
advisability on taking over a unit.
Hero Limited
441, J.D. Road,
Puna-400026
1st
December, 2013.
The
Managing Director,
441,
J.D. Road,
Puna-400026.
Dear
Sir,
Sub: Sub-Committee’s Report on advisability on taking
over a unit.
1.
Terms
of reference :
As per the instructions committee went into the
details made inquiries for purchase new unit. The committee report is as under:
2.
The
Assets:
Company’s assets and liabilities have been verified
by our auditors and Chartered Accountants. They have certified that the
financial condition of the company is sound. We believe that there is no
financial risk in talking other unit.
3.
Production:
The normal production of the company is worth about
rupees six crore annually.
4.
Reason
for Purchase:
a.
The
company is keen rival of our company. The unhealthy competition affects our
sales and exports.
b.
For
the last six months, the relation of the labor with management has been
strained. This has told upon the production of the company.
5.
Findings
and Recommendations:
1.
The
committee is satisfied with the financial aspect of the company. It feels that
there is no risk involved.
2.
As
it is a running concern, the management will find no difficulty in taking over
the company. The unhealthy competition will come to an end.
3.
The
problem of labor unrest can be solved by mutual understanding with labor
leaders.
6.
Considered
Opinion:
In view of the above facts and findings, the
committee recommends the takeover. It feels that the proposal of taking over is
sound and desirable.
Date:……………………… Place:……………………..
[Secretary/ Sales
Manager/Chairman ]
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