COMMITTEE REPORT- On advisability on taking over a unit
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Report: 07: Report on advisability on taking over a unit.
441, J.D. Road,
1st December, 2013.
The Managing Director,
441, J.D. Road,
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.
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.
[Secretary/ Sales Manager/Chairman ]