INTERNATIONAL HIGHER DIPLOMA IN QUANTITY SURVEYING
AssignmentSTUDENT NAME:
EDHAT REGISTRATION NO.:
PROGRAMME:International Diploma in Quantity Surveying
SUBJECT CODE & TITLE:QSC0203/ Finance Management
ASSIGNMENT TITLE:Boral Construction Company Limited
Summary of the Learning Outcomes covered:1. Demonstrate the
knowledge and understanding in Working capital management2.
Describe project financial management in construction project3.
Demonstrate financial reporting in construction projectsASSIGNMENT
TYPE:Individual assessment
DATE:
DUE DATE:
DATE SUBMITTED:
ASSESSOR:
INTERNAL VERIFIER:
1 | PageInternational Higher Diploma in Quantity
Surveying/Semester 1Finance Management /combined assessment
PLAGIARISM:While research and discussion are an essential part
of an assignment, the deliberate copying of someone elses work or
unacknowledged copying from printed or electronic sources is NOT
permitted. You may be subject to disciplinary procedure if you do
this. You should sign this sheet to show that you comply with these
regulations.
Students Signature:Date: _____/_____/ ___________
Mark RangeGrade PointGrading Representation
0 - 290.0E
30 - 391.0D
40 - 491.7C-
50 - 542.0C
55 - 592.3B-
60 - 642.7B
65 - 693.0B+
70 - 743.3A-
75 - 793.7A
80 and above4.0A+
T01T02T03T04T05T06T07T08T09
TOTAL SCORE (Average of the above)
Assessor Comments:
Assessor:Signature:Date:_____/_____/ ___________
Internal Verifiers Comments:
Internal Verifier:Signature:Date:_____/_____/ ___________
Outcomes/Criteria for PASS Possible evidencePage NoFeedback
QSC 0203.1 Demonstrate the knowledge and understanding in
Working capital management
QSC 0203.1.1 Explain the principles of working capital
management
(Task 1)
QSC 0203.1.2 Prepare cash flow forecast and cash flow statement
for a given project(Task 2)
QSC 0203.1.3 Prepare inventory management system for a given
project(Task 3)
SQC 0204.2 Describe project financial management in construction
project
QSC 0203.2.1 Identify the goals and functions of financial
management
(Task 4)
QSC 0203.2.2 Explore and analyze financial statements
(Task 5)
QSC 0203.2.3 Explain financial structure in an organization
(Task 6)
QSC 0203.2.4 Prepare master budget for organization using
functional budgets(Task 7)
QSC 0203.3 Demonstrate financial reporting in construction
projects
QSC0203.3.1 Explain the components in financial report and
reporting methods
(Task 8)
QSC 0203.3.2 Demonstrate the use of financial report in proper
functioning of a project and organization(Task 9)
.
Scenario - 01Boral Limited (www.boral.com.au.)Boral Limited is a
construction company in Australia & performed well in last few
years. Its conscious financial statements for the years of 2012
& 2013 are given below.Boral Limited is Australia's largest
building and construction materials supplier, and has significant
operations in the USA and in Asia. With some A$5.2 billion worth of
sales, Boral has over 14,700 employees working across 706 operating
sites.Boral produces and distributes a broad range of construction
materials, including quarry products, cement, flyash, pre-mix
concrete and asphalt; and building products, including clay bricks
and pavers, clay and concrete roof tiles, concrete masonry
products, plasterboard, windows and timber. Boral primarily serves
customers in the building and construction industries with
operations concentrated in three key geographical markets -
Australia, the USA and Asia. The Boral Group has leading market
positions in all three geographic markets. Boral has operated
solely as a construction materials and building products group
since the Company's demerger in January 2000, when the old Boral
Group, which also included an energy business, was demerged into
two industry specific listed companies, new Boral and Origin Energy
Limited.
Boral comprises of seven key operating divisions, aligned along
three business segments.Note : Please refer the above URL for
further details.
2013 (000)2012 (000)
Total Current assets412 351439 042
Total current liabilities365 176369 164
Revenue1 232 2871 056 775
Closing Inventories1 1131 240
Cost of revenue1 178 673973 776
Scenario 01. Covered Assessment criteriaAllocated MarksGiven
Marks
T01 Explain the principles of working capital
management.Calculations and interpretation of working capital and
cash conversion cycle are essential in this explanation.
QSC 0203.1.120
T04Identify the goals and functions of financial
management.Explanation with supportive facts and figures are
necessary for profit maximization and shareholders wealth
maximization. QSC 0203.2.120
T05Explore and analyze financial statements.You may carry out
the ratio analysis for Boral Limited in the years of 2012 and 2013
by paying special attention on profitability, liquidity and
gearing.
QSC 0203.2.2 50
T06 Explain financial structure in an organization.Elements of
Income statement and Balance sheet must be explained with the
figures and its direction.
QSC 0203.2.3 10
2013(000)2012(000)
Selling and Distribution cost73 78173 432
Interest Expenses1 3761 125
Provision for Taxation2 5343 135
Receivables268 711215 958
Property and Plants2 10262
Payables465 176466 025
Equity capital12 48712 487
Scenario 02.Covered Assessment criteriaAllocated MarksGiven
Marks
Noel Construction was a small subcontractor for wall
construction. It has planned the following sales for the next six
months.
MonthJulAugSepOctNovDec
Sales in (Cubic Metres)115 000265 000 380 00090 00025 000385
000
The current selling price of the company is 5.50 per Cubic metre
of Wall construction. It will be increased by 25% per month for
first 3 months and thereof will fall by 5% continuously per
month.
Out of total sales 50% will be on credit and the balance on
cash. Payment policy for credit transaction was 70% within a month
and the balance within two months.
Major raw material is the cement blocks and there were 3900
blocks on inventory as at 30 Jun in this year. These were purchased
at 0.85 per block. To produce a sale of 1 cubic metre of sales, it
is required 0.60 of Blocks.
The company policy is to have 85% of sales requirement as
materials as closing raw materials. Material suppliers are paid 70%
immediately and the balance of 30% after one months time.Overheads
is 19 000 per month and wages were 9 500 per month. Both payments
are made as and when it incurred.
T07 Prepare master budget for organization using functional
budgets.It is better to use all the functional budgets to arrive
the master budgets of cash book.QSC 0203.2.4 100
Scenario 03Covered Assessment criteriaAllocated MarksGiven
Marks
Boral Limited has prepared an annual report with FIVE main
elements. It includes the Income Statement, Balance sheet. Cash
flow, Statement of changes of equity and Notes to the accounts.
These different documents are plying different roles at its usage.
Therefore, Users of accounting may utilize these reports for
different perspectives.
T08 Explain the components in financial report and reporting
methods Internal and external reports of accounting must be
differentiated with examples.QSC0203.3.1 50
T09Demonstrate the use of financial report in proper functioning
of a project and organizationQSC 0203.3.2 50
Scenario 04Covered Assessment criteriaAllocated MarksGiven
Marks
Inventory management is a vital role for all site managers to
keep the smooth continuation of the project work. Inventories can
be managed by using inventory management techniques such as
Just-In-Time (JIT) system, Two Bin system, ABC system and Economic
Order Quantity (EOQ) system.
T03 Prepare inventory management system for a given project.You
preparation must be included a presentation of either technique as
mention above, to justify the current application in the
construction industry.QSC 0203.3.2 100
Scenario 05.Covered Assessment criteriaAllocated MarksGiven
Marks
Middlesex Co. Ltd is a construction company in the UK. It has
recently succeeded TWO projects in the fields of Civil Engineering.
But according to its constraints on plant capacity, labour &
finance for capital investment, they are not in position to
commence both in parallel construction (Mutually Exclusive
Events)For the purpose of stating the projects, the company needs
to obtain the capital of 500 000 from the following options :Option
01.Source of financeAmount of finance ( )Cost of finance ( % )
Ordinary shares100 00011.0
Preference shares200 00017.5
Bank loans200 0005.0
Option 02.Source of financeAmount of finance ( )Cost of finance
( % )
Own Funds200 00010.5
Preference shares150 0006.5
Debentures150 0006.0
The company finance managers has prepared the following
estimations for the respective projects :YearNet Cash Flow :
ApartmentNet Cash Flow :Road
1135 000315 000
2350 000173 000
3278 000117 000
4300 000205 000
5226 000325 000
T02 Prepare cash flow forecast and cash flow statement for a
given projectQSC 0203.1.2 100
