To: The Finance Director, Ice Age Manufacturing
Limited
A (draft) Report on the Value Chain and Financial
Position of Ice Age Manufacturing Limited
Prepared by: Dawodu & Dawodu (Chartered
Accountants)
Date: 24th May, 2015
Disclaimer
The report has been
produced for the sole use of Ice Age
Manufacturing Limited (IAML). No liability is accepted except to the Directors
of Ice Age Manufacturing Limited.
1. Value Chain of Ice Age Manufacturing Limited
a. Wider context
IAML is an un-listed company. Therefore,
it is not subject to pressure from the stock market to increase its profits.
There is also a lower amount of pressure on it to pay dividend from its earnings.
b. Inbound logistics
i.
Suppliers
IAML suppliers are on very good terms with it and
are willing to continue their trading relationship. This makes it less likely
that IAML will experience a shortage of raw materials. These good relationships
may be a possible reason for the absolute increase of IAML’s gross profits from
N2.739m in 2013 to N3.27m in 2014.
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