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Subject: :sun rise at night solar company ltd. Balance sheet as at 31/12/2015 To:

 Fixed assets

 Build. 10000 Machinry. 3000 M.v. 2500 Furniture 7000 Land. 30000 ---------- 52500 Less Dep. (2000) --------- 50500

 Current assets 

Stock. 1500 

Debtors 700 Cash. 200 Pre pay 600 Transpt 700 ------ 3700 ---------- 54200 ---------

 Liabilities 

Capital. 40000 Net prft. ( 3000) ---------- 37000 

Current liable 

Creditors. 800 Payable tel 700 Insurce 2000 Bank o/d.12500 EPF pay. 500 Tax payble 700 -------- 17200 --------- 54200 ---------- 

Recomendations 

As we can see, high insurance premium is payable for mechinary and m.vehicles. Therefore, we suggest to lease either m.v or machinery, instered of having as a fixed asset. Competitive lease exp might be more attractive than insurance exp at the end. It reduce the current liability payable . further, if there is a insurance claim occurs, they will not process the the claim,until the insurance premium is paid in full. 

 Please consider recruiting contract staff to avoid EPF exp to the company. 

 F.assets land is in a high risk land slid region. If any disasters, asset monetary value get reduced dramatically. Therefore, it is wise to sell the land asap and Funds divert to expand the factory complex. Stability gets improved. 

 As we can see, pre payments for fish supplier, should be avoided, to pay off the tax payables dues during the tax time. As we know suppliers do like to role the funds, for short term financing. This practice must not be a habbit. 

 We have provided the above suggestions ,recomendations ,after carefull auditing of the organisation accounts and indipendant oppenions. 

Thank you 

K.jayasena. nia, nicm,Im, (Australia)

 Truth and harmony accountants. 

Born to give unlimited happiness

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