Rap Acca Bsc Topic 8

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OXFORD BROOKES UNIVERSITY
RESEARCH & ANALYSIS PROJECT

RESEARCH AND ANALYSIS REPORT

THE BUSINESS AND FINANCIAL PERFORMANCE OF THE HUB POWER COMPANY LIMITED

PRESENTED BY:
KHAQAN HAIDER
Registration number: 1277963
Nov2010

Word count: 5796 words

Contents
​Introduction​​​​​​1
Topic Chosen And Its Context
1
Reasons For Selection
1
Project Objectives
2
Research Approach
2

​Information Gathering​​​4
Primary Research
4
Secondary Research
4
Limitations of Information Gathering
5
Limitations of Analytical Tools
5
Ethical Issues
6

​​​​​​​Analysis​​​​​​​7
Business Description
7
Sector Outlook
7
Ratio Analysis
8
SWOT Analysis
12
Porter’s Five Factors
14
PEST Analysis
16

​​​
Conclusion​​​​​​18

Skills and Learning Statement​20

​​Appendices​​​​​​26
Bibliography
26
Balance Sheet
27
Profit And Loss Account
29
Ratios Calculation
30
Interview and Responses
32
Power Point Slides
35



Introduction

Introduction

Topic Chosen and Its Context

This report is about a study and analysis of the business and financial performance of The HUB Power Company Limited (HUBCO) over a three years period (FY2007-FY2009). I am addressing and comparing financial and non-financial factors influencing the company with industry practices for which a suitable competitor Kot Addu Power Company Limited (KAPCO) is selected.

Reasons for Selection

I chose the topic on grounds of:

Nature of topic
The topic is pretty interesting in nature as it involves a great deal of expertise to be put into exercise.
My own interest
Business and financial performance appraisal are more attractive than any other area of accounting. This report has given me opportunity to do a real-life appraisal.
Association with ACCA studies
Performance appraisal is an important part of ACCA qualification which is embedded in most of the subjects. This analysis will help me to polish my abilities in order to give my best in examinations.

Energy Crisis in Pakistan
Power sector in Pakistan is in catastrophe for a couple of years. The energy crisis has motivated me to choose this industry so as to get a profound glimpse.
Easily available information
HUBCO is a leading Independent Power Producer (IPP). Being the benchmark for other companies, HUBCO is more discussed among market critics and analysts.
My own shareholding
I was always keen to analyse the possible growth and the future outlook of my investments in HUBCO. This research will help me managing my investment portfolio in Karachi Stock Exchange in a better way.

Project Objectives

Analysis is the separation of something into its constituent elements (Oxford dictionary). The aims and objectives of this research and analysis project are to:  Identify and quantify HUBCO strengths and weaknesses and evaluate its financial position.  Read between the lines of financial statements and to make apparently inconsequential numbers accessible and understandable.  Overcome the bland, meaningless simplifications that executives normally produce, by focusing on a particular issue and excluding non-relevant material.  Understand industry competition and profitability.

 Analyse the underlying industry structure.
 List things, in the relevant macro environment, affecting the organization and industry.
Research Approach
In order to achieve the project objective following business and financial analysis tools are used: ​
Ratio analysis involves comparing one figure against another to produce a ratio, and assessing whether the ratio indicates a weakness or strength in the company’s affair. In this report I will analyse company’s performance in terms of:  Profitability ratios which are assessment of profit growth in relation to the amount of funds that were employed...
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