Chapter I

Introduction
 ABSTRACT

The need for the effective financial management in any business organization which has the

intention to make progress, profit, to expand and to grow in size has no alternative. The

need to obtain funds, wisely invest funds in a viable or profitable prefects and manager

effectively and efficiently the day-to-day cash in flows and out – flows with any business

organization calls for a professional with the necessary skill and experience. This study tried

to highlight the role of financial manager and the study was limited to Emenite Building

product (Emene) Limited. The second chapter of work will deal extensively on this work will

deal extensively on the review related literatures and studies which are both local and

foreign. The source of information were library, textbook, Journals, Magazines, Newspapers,

Lectures, discussions with fellow student etc. The third chapter will deal with the

methodology to be used in obtaining the data required for the  were. The survey

instruments will contain facts from interview method and observation of relevant

documents relating to Emenite Building Product (Emene) Limited. The chapter four of this

prefect will deal with the history organization and problem of the Emenites Building product

(Emene) limited, the status, duties, achievement and problem of the financial manager,

whether financial management is recognized as one of crucial aspects of the firms decision

making and whether the role of the financial manager are fully specified and whether he is

given a free hand to perform his duties rather than receiving orders and approval from

above. Chapter five of this work which is the conclusion will be mainly recommendation

based on findings in chapter three and four.

INTRODUCTION

It has become a well known fact that without money a business cannot function
consequently an understanding of finance, which is the appreciation of the role of money
and its ability to measure. The measure of a business is essential for good management.
However, money can be likened to a lubricant, too little and the business is a wash with all
types of project for using the surplus cash some of which may be good risks while others
may penalized the business. Again money presents its own problems particularly when
inflation sets in and as a result the purchasing power will change from time to time.
Now, the role of financial managers becomes imperative consequently, the professions is
one of the professions which is still struggle to assume its place in an organizational
structure with the increasing complexity in human organization of there has arises more and
more.
Specialization of people in various disciplines and therefore finance must take its on
position. Financial manager is an expert trained in the field of finance, and the functions
include planning for acquisition of funds and utilization of such funds in ways that will
maximize the efficiency of an organization. The project researcher intended to project the
role of financial manager as regards manufacturing firms and as J balty puts it “an adequate
funds and cash flow is essential more than this, a business cannot afford to stand still.
In any competitive field it will be essential for improvement to introduce new products and
to expand”. However, despite much publications and emphasis placed on the role of
financial manager in any business organizations, most of our policy makers whether in
private, public and governmental establishments have not realized these vital roles and the
resultant effects are stagnation and collapse of many of our business activities with the
claims and counter claims by various professionals and near professional. Financial activities
of a firm is one of the most important and complex activities of a firm. Therefore in order to
take care of these activities a financial manager performs all the requisite financial
activities.A financial manger is a person who takes care of all the important financial
functions of an organization. The person in charge should maintain a far sightedness in
order to ensure that the funds are utilized in the most efficient manner.His/Her actions
directly affect the Profitability, growth and goodwill of the firm.As Finance Manager, your
responsibilities will include overseeing end-to-end finance operations, financial planning and
analysis, balance sheet reconciliations, looking to make improvements to procedures and
controls, as well as ad-hoc projects and requests as and when they come up.A financial
manager is a person who is responsible for taking care of all the essential financial functions
of an organization. Nowadays, Finance Managers spend less time producing financial
reports and prefer to invest more time in conducting data analysis, planning and
strategizing, or advising senior managers or top executives.
It has become a well known fact
that without money a business cannot
function consequently an
understanding of finance,
which is the appreciation of the role of
money and its ability to measure. The
measure of a business is essential for
good management. However,
money can be likened to a lubricant, too
little and the business is a wash with all
types of project for using the  surplus
cash some of which may be good risks while others may penalized the business. Again
money presents its own problems particularly when inflation sets in and as a result the
purchasing power will change from time to time. 
Now, the role of financial managers becomes  imperative consequently,  the professions is
one of the professions which is still struggle to assume its place in an organizational
structure with the increasing complexity in human organization of there has arises more and
more. 
Specialization of people in various disciplines and therefore finance must take its on
position. Financial manager is an expert trained in the field of finance, and the functions
include planning for acquisition of funds and utilization of such funds in ways that will
maximize the efficiency of an organization. The project researcher intended to project the
role of financial manager as regards manufacturing firms and as J balty puts it “an adequate
funds and cash flow is essential more than this, a business cannot afford to stand still.   
In any competitive field it will be essential for improvement to introduce new products and
to expand”. However, despite much publications and emphasis placed on the role of
financial manager in any business organizations, most of our policy  makers whether in
private, public and governmental establishments have not realized these vital roles and the
resultant effects are stagnation and collapse of many of our business activities with the
claims and counter claims by various professionals and near professional. There is
establishment among many business organizations which are confronted with certain
problems and which need expert advice
 HISTORY SUPPORTING THEORIES

The study of financial management has undergone a lot of changes since its inception as a
subject of its own.
According to E.F Briham and F. Weston “during 1940s, 1950s finance was continued to be
taught as descriptive institutional subjects viewed from the outside rather than from in his
own view stated that at some decades ago, the scope of financial management was
circumscribed to the raising of funds whenever needed and no significance was use to be
attached to the day to day financial decision making and problem solving. But in the recent
years the concern of the financial managers besides his traditional function of raising funds
is to determine the size and technology in setting space and direction of growth and in
shaping the profitability and risk complexion of the firms by selecting the best asset mix and
by obtaining the optimum financing mix the functions are sum margined as:-
(i) Raising of funds to finance projects
(ii) Employment of the funds raised in viable projects.
(iii) Management of cash arising from this prefect
(iv) The return of funds to the financing sources.

SIGNIFICANT OF THE STUDY

This study when completed will enable the policy makers of various manufacturing and non
– mnanufacting firms and government establishments to re – consider their stand on the
realization, acceptance and utilization of the services of financial managers.
Again the study will go a long way to removed the management that without financial
manager that they cannot take financial decision and unplement them successfully.
Not only will these it also project the role of financial manager towards organization
 effectiveness like capital structure, asset structures profitability and general growth. This
study will also be of paramount umpestance to all the students in the school of business in
particular and will also act as reference material to the school library.

Need of the study

The financial manager of a company has to perform all the important required financial
operations. He is responsible for all the significant financial functions of an enterprise. He
should be far-sighted in nature so that he can ensure optimum fund utilization.

Financial managers are responsible for the financial health of an organization. They create
financial reports, direct investment activities, and develop plans for the long-term financial
goals of their organization.

A financial manager is responsible for maintaining the right balance between equity and
debt. Allocation of funds: After the funds are raised, the next important thing is to allocate
the funds. The best possible manner of allocating the funds: Size of the organizations and
their growth capability.

The financial manager's responsibilities include financial planning, investing (spending

money), and financing (raising money). Maximizing the value of the firm is the main goal of
the financial manager, whose decisions often have long-term effects.

Importance of the study

financial managers generally oversee the financial health of an organization and help ensure
its continued viability. They supervise important functions, such as monitoring cash flow,
determining profitability, managing expenses and producing accurate financial information.

 Financial Decisions and control.

 Financial planning.
 Capital management.
 Allocation and utilization of financial resources.
 Cash flow management.
 Disposal of surplus.
 Financial reporting.
 Risk Management.

Manufacturing finance offers a way for manufacturers to relieve these financial pressures by

providing advance payment to cover these costs. From a long-term perspective, this aids in
providing financial flexibility and greater potential for growth.
 Scope of the study

This study is intended to cover the system of financial control as is utilized in Emenites
Building product limited Emene as it affects its operations with regards to survival expansion
profitability and moreover growth, hence mathematical treatment and application of such
system are not within the scope of this study. This is also limited to Emenite Building
product limited Emene. The reason behind this limitation is that the researcher is a student
facing both time and financial constraints. Another reason is the nature of the topic
choosing, many study firms will pose some problem knowing our people’s attitude towards
financial matters, being afraid of unknown consequences ranging from management
incormpletence to exposure. The project researcher also in his review of elated literatures
and studies made use of texts, journals, activities and other write ups. .

The objectives of this study are:

i. Identity the role of financial manager in a manufacturing firm with particular reference to
Emenite Building product (Emene( limited.
ii. Determine the contribution of financial manager to Emenite. Building product (Emene)
limited with particular regards to ,
a. Capital acquisition
b. Investment decision
c. Profitability
d. Divided policy
e. The general growth and to make recommendation where necessary.

Research Methodology

Research Design

The research design is the blueprint for fulfilling objectives and answering questions. It
summarizes the essentials of research design as an activity and time-based plan. It provides
a framework for specifying the relationship among the study variables . The study adopted
descriptive research design. Descriptive research was chosen at it would help in portraying
an accurate profile of an event, persons or even situations. This research design also helps
to create a clear picture of the phenomena which was used to collect data.

Sources of Data

This research include gathering of both primary data and secondary data
Primary Data

The collection of primary data was done through questionnaire by giving the prepared set
of questionnaires to the customers .
 Secondary Data

The secondary data wastaken from internet and company websites

Sample Size
The size of the sampling is determined by the researcher is 100 respondents on the basis of
random sampling method. The data collected have been analyzed with the help of
percentage analysis

limitations of the study

Managing the financial health of an entire organization comes with a great deal of
responsibility. That responsibility can, in turn, cause you a lot of stress. This can be a very
fast-paced job, too, which can contribute to work-related stress.

very business can suddenly fall due to a lack of adequate cash flow, which in turn happens
due to poor cash flow management. This is one of the biggest challenges faced by finance
managers. The inflow and outflow of the company money need to be precisely tracked to
get the right insight.

 Technology replacing some of the traditional accounting functions.

 The need to learn new skills.
 Including the importance of developing soft skills.
 The need to provide real-time data to aid financial decision making.
 Cybersecurity concerns
 Chapter II
Literature Review
Financial management is derived from a broader category of organizational finance or corporate
finance. Many authors tend to use the concept of corporate finance as an alternative name to
business finance, but the reality is that business finance is much broader because it conceptualizes
the sole proprietorship, partnership, and company business

(Fonseka, Ramos & Tian, 2012). On the other hand, corporate finance is restricted to company
finance only. This is the premise for financial management. To realize the effectiveness of business
finance, there is a need for proper financial management.

According to Presber (2011), financial management is a concept of corporate finance that deals with
a decision related to acquisition, financing, and management of assets, acquiring financial resources,
and what is expected of a firm to maximize its shareholders' wealth. Skilled financial management is
vital as it helps in streamlining the organizational plan. Effective administration and compliance,
including cash flow management, for instance, are just a few financial management prospects for
the future productivity of an organization. Skills of financial management, on the other hand,
enhances tracking of the organizational performances, identification of financial problems, and
exploration of new opportunities to reduce risks occurrence. The right financial management
remains vital throughout the survival of a business, whether it is just commencing or looking forward
to liquidity. In that respect, it must continuously evolve depending on the circumstances of the
change.

Etukafia & Udofot (2017), it was observed that a growing business must take a proactive approach
to financial management and ensure that they are within the right capabilities. In his sentiments,

Presber (2011) explains that financial management is applicable on a day to day management of the
strategic planning of the business. For that reason, the management is required to recognize the
needs of a business change as the business grows while ensuring that the right financial skills are put
in place to promote the sustainable future of the business. The concept of corporate sustainability
and financial management started gaining relevance as a result of external pressure on big
companies getting pushed by communities to practice environmental sustainability. Some of the
notable occurrences that led to a widespread call for corporate sustainability as part of the financial
management was the controversial disposal of Shell's Brent Spar oil platform

(Makarenko & Plastun, 2017). This constituted a proposed idea to dispose of an oil ship owned by
Shell Company in the UK. Experts warned that the sinking of an oil tanker would cause damages to
the environment, a concept that spark activism for environmental sustainability. It is under this
premise that the societal concerns for environmental accountability by companies were
conceptualized. Consequently, the implementation of corporate sustainability comes at a financial
cost to an organization. It is for the same reasons that appropriate financial management is
necessary to foster future sustainability. The role of financial management in the realization of the
sustainable prosperity of a business is discussed in varied academic literature

. According to Makarenko and Plastun (2017), the need for a critical approach in understanding the
role of financial management in the context of sustainable development is inevitable. Another
pressure that advocated for corporate sustainability emanated from the Kyoto Protocol Climate
Conference in 1997. From the Kyoto Principles, it was proposed that all Electronic copy available at:
industries, including small companies, should advocate for sustainable development. From the onset
of such a discussion, several interested users of the information contained in corporate
environmental disclosure have been on the rise following the accounting principles and utilization of
financial management models to ensure that objectives are attained. To achieve a higher degree of
business success, an organization's financial department must be committed to employing an
appropriate financial management process that focuses on promoting a clear understanding of the
role

. In a study conducted by Alshehhi, Nobanee, and Khare (2018), a literature analysis about how
corporate sustainability affects the financial performance of corporates, they found that literature,
at least 78% supporting a positive link between financial performance and corporate sustainability.
These researchers say that markets are slowly becoming more competitive and that there is a
growing need for change, which has put pressure on companies to succeed by sustaining their
excellent performance today and in the future

Alshehhi, Nobanee, and Khare (2018) say that corporate sustainability is currently the main focus as
consumers, investors, and companies are increasingly turning towards enhancing corporate
sustainability. In this regard, these researchers point out that organizations are not only expected to
surpass the limited shortterm financial goals but also go beyond encompassing social,
environmental, and economic sustainability

. According to Wilmshurst and Frost (2010), Electronic copy available at: legitimacy theory spells out
that organizations must take part in voluntary social and environmental disclosures if they intend to
attain social contract enablers.

In that respect, it supports the idea as to why organizations such as banks are often subjected to
pressure to ensure environmental compliance as a meaningful way of gaining legitimacy (Mchavi,
2017)

. Research evidence published by Presber (2011) indicates that environmental sustainability can be
used to illustrate long term liquidity above-average returns to the stakeholders. Some of the
corporate governance practices such as financial management, risks, and crisis management,
compliance to code of conduct, talent attraction and retention fosters share value of the business

(Székely & vom Brocke, 2017). For example, Al Ghurair Group of companies in Dubai took part in
providing free healthcare services on to the society, a concept that led to its popularity in the United
Arab Emirates, hence more revenues. Therefore, the idea of corporate governance promotion of
economic viability, economic profitability, and economic equity (Székely & vom-Brocke, 2017). Based
on research conducted by Presber (2011), the findings indicated that institutions reporting poor
environmental performances are often faced with more political and social pressure that weaken
their legitimacy. In such a case, they may have inclined to broad off-setting or positive environmental
disclosure during the presentation of their annual report to the stakeholders. For instance

, Dana Gas also increased its revenue having taken part in educational sponsorship for needy
students (Makarenko & Plastun 2017). The study further indicated that overreliance on external
sources of finance, including the stock exchange, also contributes significantly in encouraging
organizations to take part in environmental disclosure as a meaningful way of drawing a pool of
capital from the external stock suppliers. It is for the same Electronic copy available at: more
environmental reports to boost their ability to attract external capital to run their business (Mchavi,
2017).

Nobanee and Ellili (2017b) researched the effect of social, environmental, and economic
sustainability reporting on the UAE Bank’s performance. The findings from this study show that
sustainability disclosures, social, environmental, and economic disclosures have no substantial
impact on the performance of banks in the United Arab Emirates. However, they claim that there is a
robust association between the financial performance of corporates and economic measures of
sustainable development. These individuals highlighted the importance of organizational
sustainability achieved by improving management systems, creation or developing financial value,
increasing transparency to all stakeholders, motivating staff members, increasing innovation,
attracting long-term capital as well as enhancing corporate reputation.

In another study by Nobanee and Ellili (2017a) on whether the quality of risk disclosure about
operations increases cash flows in operation, they found no relationship between cash flow in all
banks and the extent of disclosure of operational risks. However, they say that banking systems are
crucial as they play a vital role in the economy and influence the performance of the economy
immensely as they are involved in significant financial crises. These two individuals claim that
efficient risk management aids banks in accurately estimating performance, avoiding perilous
financial losses, ensuring persistence in takeovers and restructuring services and products.

Additionally, Nobanee and Ellili (2017a) say that management of operational risk is looked at as
having great significance in enhancing or ensuring sustainability within the banking sector. In a
different study by Ellili and Nobanee (2017a) [Corporate risk disclosure of Islamic and conventional
banks. Banks and Bank Systems] on disclosure of the corporate risk of Electronic copy available at:
conventional and Islamic banks and how this influences performance, they indicate a low level of
association between corporate disclosure of risk and improved performance. However, they claim
that when organizations disclose their risks, they improve risk management and enhance
transparency in financial reporting and enhance the quality of their disclosure, further helping both
current and potential investors in their economic decisions and proper assessment of the company’s
performance. In other studies by Nobanee and Ellili (2017a) and Ellili and Nobanee (2017b) [Does
Operational Risk Disclosure Quality Increase Operating Cash Flows? and Degree of Corporate Social
Responsibility Disclosure and Its Impact on Banking Performance respectively], they also found no
association between cash flow in both conventional and Islamic banks and the quality of disclosing
operational risks. They, however, believe that efficient management of operational risks helps
financial institutions to avoid loses and measure performance accurately. Despite the similarities
between these studies to the other ones concerning examining risk disclosure, they go a notch
higher in assessing the level of certain operational risks. These individuals found that the initial
announcements of operational risks of a company often raise information asymmetry usually
estimated by trade price impacts and bid-ask spreads. Additionally, a robust corporate structure of
governance lowers information asymmetry around risk disclosure of operations. Reducing
information asymmetry is mainly linked to institutional ownership, equity incentives, and board
independence.
As a result, these individuals recommend that banks should increase the disclosure of their
operational risks to enhance the processes of risk management, sustainability, and stability. Similar
results were also found by Nobanee and Ellili (2017c) on their study of disclosure of corporate
sustainability in yearly or annual reports. Electronic copy available at:
https://ssrn.com/abstract=3472404 2.2 Sustainability Issues to Financial Decisions and Key Value
Drivers 2.2.1 Capital Budgeting While many companies proclaim a commitment to sustainability,
research evidence indicates that they are not keeping up to standards of commitments in their
routine.

A report published by Fonseka, Ramos, and Tian (2012) indicates a significant disconnection
between how the company addresses sustainability issues and how it carries its activities (Meyer,
2015). One of the most significant factors that influence and impact organizational sustainability
issues is capital budgeting. This involves the decision and desire to popularize corporate reputation
within the financial limits of the organization.

According to Meyer (2015), capital budgeting is classified as a sustainable risk when it is meant to
promote sustainability issues of an organization because it does not contribute directly to the
revenue of the firm.

Moreover, Zhang & Chen (2017) point out that financial decisions should look into the long-term
development strategy of an organization. 2.2.2 The Cost of Capital The cost of capital constitutes the
potentiality of an organization to participate in environmental protection of the industry by taking
part in proportional management of intangible assets and providing quality pledge to lenders as a
shred of evidence for debt financing to obtain tax benefits.

According to Berk (2012), environmental technology is the foundation of the environmental

protection industry. Investment in a sustainable environment can affect the future profitability and
development of an enterprise, either positively or negatively. 2.2.3 Profitability There is a growing
demand to attain profitability by enforcing dimensions of sustainability as part of financial
management. Supply chain sustainability, for instance, is Electronic copy available at: advancing
towards the realization of long-term profitability while focusing on innovation.

Considering the dimensions of sustainability, Zyadat (2016) explains that while corporate social
sustainability is voluntary, it does affect the profitability of the business in many ways. A study
conducted in Qatar indicated that the use of sustainable activities by an organization encourages
more purchases e from potential customers who consider sustainability as a crucial factor towards
the realization of the future prosperity of the business

(Zyadat, 2016). 2.2.4 Working Capital Management The ability to manage working capital is closely
linked to the sustainable growth of a business.

According to Nastiti, Atahau & Soprano (2019), employing appropriate sales policies to a business
that produces sufficient cash flows for operating activities eventually leads to higher profit margins.
In his sentiments, Nastiti, Atahau, and Soprano (2019) explain that the operating working capital
covers varied dimensions of organizational adjustments to operating and financial conditions. Issues
such as sales growth, president occurrences affecting sales, hat costs associated with external
financing may subject an organization to consider pursuant for more capital management strategies.
It is also important to note that companies that look in working capital from greater prospects tend
to employ more conservative working capital policies at thereby resulting in a robust to unobserved
heterogeneity and industry effects. 2.2.5 Investment Returns The guide towards a sustainable,
inclusive economy is based on the principles of the 2030 agenda

. According to Weber (2017), sustainable development goals are instrumental in combating issues of
climate change. Therefore, appropriate income and decent organizational activities that are aimed at
attaining the societal goals form the basis for sustainable investments. According to Weber (2017),
adopting a more behavioral approach to finance is vital. Recently, Electronic copy available at:
business activities have been focused on themes such as ethics, sustainability, and investments in
the financial market while targeting the concept of sustainability. 2.3 Corporate Sustainability Risks
and Opportunities In financial management, a risk constitutes the business of doing another
business while maintaining profits, sustaining economic growth, and protecting the share value of
the stakeholders in the market. One of the principles behind corporate sustainability risk
management is to prevent fluctuations in the market.

As indicated by Wong (2014), the need to ensure the elimination of sustainable corporate risks is
under the docket of the financial risk officer. Therefore, it must be taken care of as one of the most
critical parts of financial management. In the past, risk management was only focused on substantial
uncertainties under which probabilities could be quantified.

However, it is different in the present business environment where various measures must be
applied to safeguard not only the interest of the stakeholders but also by doing well to the society
(Hashim & Koon, 2017).

According to Gramlich and Finster (2013), various measures have since been implemented to help
incorporate sustainable risk management. The variables used to assess the market risk of socially
responsible companies consider risk as a controlled variable, and it is classified as a long-term asset
ratio in the financial statement. Moreover, measures of risks, including those expected and
unexpected, are evaluated and applied in a different ration from probability to liquidity (Gramlich &
Finster, 2013). Corporate sustainable managers are required to link up with financial managers
towards achieving the competitive advantage of an organization by focusing on issues of
sustainability to outdo rivals financially.

According to Weber (2017), the concept of sustainability demands that the general management,
which Electronic copy constitutes representatives from different departments of an organization
must embrace the idea of sustainability and operate in a synergistic way to mitigate possible chances
of risk occurrence.

According to Wong (2014), the key benefit of nonfinancial risk management, such as corporate
sustainability, is that it covers a wide range of issues that support the ultimate revenues of an
organization. This is not limited to environmental risks, social risks that are more critical for the
survival of a business than mere boardroom management. Moreover, it enables financial managers
to put together all the relevant probabilities of emerging risks into financial management issues of a
company while ensuring that an organization operates without lethargic at best (Wong, 2014). The
actual budget figure that has been set aside to cover sustainable risks should not affect the net
income of a business. Therefore, a more diverse and sophisticated approach to risk management
would be vital to project possible chances of occurrences.

Similarly, Flouris and Yilmaz (2016) confirmed that several sustainability risks of a company could be
corrected by adjusting the figure of control-variables in the course of financial management. The
assessment is often represented, as shown below: Risk = F (sustainability, control variables) Where F
is treated as the dependent variable of risk and driven by the company's attitude to sustainability.
2.4 Sustainability Practices and Sustainable Financial Growth A minimum attitude of growth is
expected of a company to continue in its operations, to compete well and adequately attain a
competitive advantage.

As pointed out by Fonseka and Tian (2012), the sustainable growth rate is treated as a percentage of
the maximum growth in sales that can be achieved based on the target operating debt and dividend
payout ratios.

From a study conducted by Amouzesh, Moeinfar & Mousavi (2011) to establish the relationship
Electronic copy between sustainability and sustainable financial growth from 54 listed companies in
Oman, the findings indicated that there is a significant relationship between sustainability and actual
growth rate of a company.

A different study by Mukherjee and Sen (2017) further revealed that ROA and current financial
ratios posit a significant negative deviation in actual growth rate from the sustainable growth rate.
As a consequent, stock returns are considered to exhibit significant adverse outcomes from the real
growth rate from the sustainable growth rate.

Therefore, Fonseka, Ramos, and Tian (2012), a sustainable growth rate is treated as a maximum
feasible growth rate of an organization that is attained based on their financial, operational,
managerial conditions and policies. 2.5 Different Financial Systems The current business trend shows
that sustainability is obligatory to business operations.

It is under this premise that organizations are expected to take part in social responsiveness through
proactive sustainable practicing and reporting (Aioanei, 2007). By observing the detrimental effects
of business operations in the banking industry, western financial models were developed to promote
efficient sustainability by controlling the negative impacts of organizational activities on the
environment (Aioanei, 2007). Through the utilization of western financial models, suitable
sustainability measures were adopted, comprising economic, environmental, and social
sustainability dimensions targeted at improving the organizational revenues. On the other hand, the
Islamic financial model was adopted as a sustainable concept to promote equity through 100%
reserve banking by prohibiting interest on the debt.

According to Askari and Krichene (2014), the model contributes a significant difference to members
of society Electronic by creating a negotiated effort between lenders and borrowers. As a
consequent, it serves the interest of both the business and society. 2.6 Corporate Bankruptcy and
Sustainable Growth Sustainability and future development of the industry is much determined by an
effective banking system within a country because the banking industry holds a key position in the
economy. To anticipate a bankruptcy situation of an organization, varied models such as the Zeta
model and the Altman model were established to provide possible solutions to incidences of
bankruptcy, especially to this emanating from corporate sustainable practices. According to Askari
and Krichene (2014), corporate life and bankruptcy risk propensity is becoming a popular area of
study.

For instance, Fonseka and Tian (2012) found out that bankruptcy has a significant impact on the
operating performance of a company. This is not limited to investment and dividend decisions.
Besides, studies on financial distress also show that there is a significant relationship between the
investment decisions of an organization, stock returns, and bond returns that form the most
significant determinants to the bankruptcy situation of an organization. Therefore, it is proposed
that a firm must pass through feasible series of sustainable development to attain the corresponding
phase of sustainable growth. 3. Results and Discussions From the findings obtained in this study, it is
evidenced that companies that are engaged in sustainability orchestrated through regulatory
pressure, employee pressure, organizational management pressure, and sustainable investment
pressure in line with sustainable practices are most likely to improve their financial performances.
Consequently, attaining sustainability within an organization requires that the process is embedded
within the entire organizational support Electronic copy available at: right from the executives to
junior staff.

The results compared to findings by Ekpo, Etukafia, and Udofot (2017) who argue that stakeholders
are intrinsically motivated and can effectively deliver sustainability performance if they are made to
understand that the organization is fighting in the same direction. It was also noted that there are
barriers to the realization of corporate sustainable reporting disclosure and shared value. In essence,
the adoption of a suitable sustainable practice, mainly where funds are utilized, often affects the
financial aspect of the organization. Székely and vom Brocke (2017) agree with the idea when they
clarify that appropriate financial management models are required to enhance productivity while
mitigating issues of financial risks. Most importantly, an organization can become sustainably visible
through the publication of corporate sustainability reports. That, in turn, promotes the share value
of the organization to the community. Regarding budgeting, as part of sustainable financial
management, the results confirmed that allocating capital budgeting for sustainable issues may
subjectively fail to reap the revenue benefits to an organization that should not be prioritized.

Fonseka, Ramos, and Tian (2012) were to a similar opinion when he points out that poor sustainable
performances lead to liability and lawsuits, thereby increasing the amount of debt while reducing
the figure for new debt as indicated in the capital budget. However, organizations excel best in
corporate sustainability increases their capacities to access government subsidies and a reduction in
tax rebates that, in turn, increase their potentiality for more revenues. By investing in environmental
protection facility, a company increases its expenditure in the short term while benefiting in the long
run, and this is the premise for capital budgeting. In addressing the cost of capital as part of
sustainable financial management, the result indicated that uncertainty in the economic
environment would require the imposition of a higher Electronic copy available at: cost of capital in
the budget, a concept that would increase the financial burden to the company and risk of
bankruptcy.

A similar ides was a firmed by (Berk, 2012). With research evidence obtained from Qatar airlines,
restaurants, and tourist clubs, it was clear that different dimensions of corporate sustainability
including employee relations, product quality, community relations, environmental issues, issues of
diversity posit different effect on the company’s profitability To harmonize working capital amid the
incorporation of sustainable financial management, acts collected from the study showed that the
deficiency of competence from investors concerning financial matters that are needed to realize
investment returns requires disclosure of the financial position of an organization. In this regard,
investor's behaviors and their decision-making processes concerning the projected investment
return should be considered and analyzed based on investors’ cognitive factors

. In support of Webers' (2017) idea that corporate sustainability and risk opportunities are
manifested as a strategy that affects various financial dimensions of an organization, the findings
indicated that net effects that emerge from the risks of sustainability are fundamental to business
operations. Therefore, corporate sustainability and organizational risk management correlate. In
that respect, sound financial management would promote the practice of corporate sustainability
because it avails the necessary financial resources needed to invest in the benefit of corporate
sustainability. Facts obtained from the findings indicated that utilization of western and the Islamic
financial models had been adopted as efficient sustainability measures were adopted, comprising
economic, environmental, and social sustainability dimensions targeted at improving the
organizational revenues.

On the other hand, bankruptcy has a significant impact on the operating performance of a company,
as Fonseka and Tian (2012) indicated that financial Electronic copy
.
 Chapter III
Company profile
Companies in this industry manufacture a wide variety of goods; major product groups
include food and beverage, chemicals, machinery, transportation equipment, and computers
and electronics. Major companies include Boeing, Caterpillar, DuPont, Ford, GE, General
Motors, HP, IBM, Pfizer, P&G, and Tyson Foods (all based in the US); Nestlé (Switzerland),
Sanofi (France), Siemens (Germany), and Toyota (Japan).

The top manufacturing countries include China with $4 trillion, accounting for about 30% of
the world total, followed by the US at $2.3 trillion (about 17%), Japan at $1 trillion (about
7%), Germany at $800 billion (about 6%), and South Korea at $460 billion (3%).

The US manufacturing sector consists of about 290,000 establishments with combined annual
sales of about $6 trillion.

COMPETITIVE LANDSCAPE

Globalization has opened new markets and opportunities for manufacturers but has also created
new challenges, including how to manage far-flung supply chains and distribution channels.
Manufacturers have turned to digitalization to improve efficiency across every area of operations,
including product development, design, production, distribution, and marketing. However,
implementing a successful digital transformation strategy -- including the leveraging of internet of
things (IoT) technology and big data -- requires careful planning and significant investment.

Demand ultimately depends on consumer spending. The profitability of individual companies

depends on efficient production and distribution. Large companies often have large economies of
scale in purchasing, production, and marketing. Small companies can compete effectively by
producing specialized products. ...

Some of the manufacturing industry

Coconut oil industry

Aadis is a brand devoloped by JCP International Pvt. Ltd. and offers a diverse range of export quality
Coconut and Groundnut oils. JCP International is a private limited company incorporated in the year
2009 in India. Earlier we were a mobile manufacturing company based in Gujarat, India. Over the
years we have diversified ourselves into various other areas.

The products under Aadis are manufactured in a state of the art manufacturing facility located at
Porbandar, Gujarat. Aadis have been providing its customers the products of unmatched quality and
uncompromised taste.

The company procures raw material directly from the centers of produce to maintain uniform taste
and quality. Strict parameters and regular tests ensures that the products processed are of superior
grade with the retention of original flavour so that the end user gets the best of taste.

Our Vision

“COLD PROCESSED FOR HEALTHY LIFE STYLE”

JCP International Pvt ltd’s corporate vision is to be the lifetime

flag-bearer of beauty and healthcare of its millions of customers around the globe. We are very
much committed to bringing them the ultimate in high-quality beauty and healthcare products.

Our Mission
  To provide unique and high quality beauty and health care products to our consumers.
 As well as boost are business activities.
 Focus on new and innovative business ideas.
 Meet the changing needs and desire of clients consumers.
 Respect and protect the environment.

Dairy milk manfacuring industry

 dairy industry in the district had its beginning under state government as part of animalhusbandry
activity. Integration of dairy industry into the department of animal husbandry took
place periodically in the name of different projects:Integrated MILK project (1960)Dairy
development department (1971)Andhra Pradesh Dairy Development Corporation (1974)
the nation. UHT milk has market at Bombay, Goa, Pune, Calcutta and Hyderabad. New UHT products
such as sterilized cream, slim milk, Traders from counties like Singapore and Brunei palingorders
with the dairy for milk powder.Union manufactures and market about 35 tons/day of cattlefeed
besides 400MTS mineral mixture per annum. Dairy co-operatives in villages have
graduallydevelopment trading surplus and this aspect coupled with government schemes resulting
inestablishing their own buildings in 345 villages valued atRs/-crores.An Aspetic packing station was
set up in the milk products factory to pack 50,000 liters oflong the milk (UHT MILK) per day.
HISTORY AND ESTABLISHMENT
Andhra Pradesh has prominent place in dairying India. The cattle wealth of AndhraPradesh is
established at Rs. 220 crores and 70% of total of milk products factory,Vijayawada was
commissioned an 11.4.1994.
was established in processing sections chiller capacity 80,000 literscapacity tanks. Now the above
capacity is improved chiller capacity.Milk products factory, VIJAYAWADA was commissioned on
11.04.1969. This factory hasthe installing capacity of 1.25 Lakhs liters per day in the first stage with
provision for expansion of3.50lakh liters per day in the second stage. Milk products factory,
VIAJAYAWADA has thedistinction of handling milk to its capacity in the second year operation. A part
from handling milk toits capacity in the second year operation. A part from handling milk Krishna
district, it also handledsurplus milk received from district of VISAKAPATNAM,EAST AND WEST
GODVARI,PRAKASAM AND NELLORE. The factory had packholding during 1982-1983, with a view of
handling the increased surplus milk got from NELLORE,PRAKASAM and EAST and WEST GODAVARI
DISTRICTS, a second spray drying plant with alatest design to produce about 124MT of milk powder
has been established and commissioned during1982.
GROWTH OF THE FACTORY
As an integral part of the above project the milk product factory, VIAJAYAWADA
WASCOMMISSIONED ON 11.04.1969. This factory has got an initial handling capacity
of11,25,000liters in the stage with provision to handle 2,50,000 liters of liquid milk in the second
stage.It has crossed the mark of 1,00,000liters in the very first year of its operation getting
admiration fromthe UNICEF officials.
is2,064.

Coca cola manufacturing industry

The Coca-Cola Company is an American multinational corporation founded in 1892, best known as

the producer of Coca-Cola. The drink industry company also manufactures, sells, and markets
other non-alcoholic beverage concentrates and syrups, and alcoholic beverages. The company's
stock is listed on the NYSE and is part of the DJIA and the S&P 500 and S&P 100 indexes.
The soft drink was developed in 1886 by pharmacist John Stith Pemberton. At the time it was
introduced, the product contained cocaine from coca leaves and caffeine from kola nuts which
together acted as a stimulant. The coca and the kola are the source of the product name, and led to
Coca-Cola's promotion as a "healthy tonic". Pemberton had been severely wounded in the American
Civil War, and had become addicted to the pain medication morphine. He developed the beverage
as a patent medicine in an effort to control his addiction.
In 1889, the formula and brand were sold for $2,300 (roughly $71,000 in 2022) to Asa Griggs
Candler, who incorporated the Coca-Cola Company in Atlanta in 1892. The company has operated
a franchised distribution system since 1889.[3] The company largely produces syrup concentrate,
which is then sold to various bottlers throughout the world who hold exclusive territories. The
company owns its anchor bottler in North America, Coca-Cola Refreshments

The company acquired the Indian cola brand Thums Up in 1993,[17] and Barq's in 1995.[18] In 1999,
Coca-Cola purchased 50% of the shares of Inca Kola for $200 million, subsequently taking control of
overseas marketing and production for the brand. [19] In 2001, it acquired the Odwalla brand of fruit
juices, smoothies, and bars for $181 million.[20][21] It announced Odwalla's discontinuation in 2020.
[22]
 In 2007, it acquired Fuze Beverage from founder Lance Collins and Castanea Partners for an
estimated $250 million.[

The bata manufacturing industry

The Bata Corporation (known as Bata, and in the Czech Republic and Slovakia, known as Baťa) is
a multinational footwear, apparel and fashion accessories manufacturer and retailer
of Moravian (Czech) origin, headquartered in Lausanne, Switzerland.
The corporation is one of the world's leading shoemakers by volume with 150 million pairs of shoes
sold annually.[5] It has a retail presence of over 5,300 shops in more than 70 countries across five
continents and 21 production facilities in 18 countries. Bata is an employer to over 32,000 people
globally.
A family-owned business for over 125 years, the company is organized into three business units:
Bata, Bata Industrials (safety shoes) and AW Lab (sports style). Bata is a portfolio company with
more than 20 brands and labels, such as Bata, North Star, Power, Bubblegummers, Weinbrenner,
Sandak, and Toughees.

After the global economic changes of the 1990s, the company closed a number of its factories in
developed countries and focused on expanding retail business. Bata moved out of Canada in several
steps. In 2000, it closed its Batawa factory, then in 2001, it closed its Bata retail stores, retaining its
"Athletes World" retail chain.
In 2004, the Bata headquarters were moved to Lausanne, Switzerland and leadership was
transferred to Thomas (Tomáš) G. Bata, grandson of Tomato. The notable Bata headquarters
building in Toronto was vacated and eventually demolished to much controversy. In 2007, the
Athletes World chain was sold, ending Bata retail operations in Canada. [37] Bata maintains the
headquarters for its "Power" brand of footwear in Toronto. The Bata Shoe Museum, founded by
Sonja Bata, and operated by a charitable foundation, is also located in Toronto.
Chapter iv
Theoretical framework
Manufacturing is the creation or production of goods with the help of equipment, labor,
machines, tools, and chemical or biological processing or formulation. It is the essence of
the secondary sector of the economyThe term may refer to a range of human activity,
from handicraft to high-tech, but it is most commonly applied to industrial design, in
which raw materials from the primary sector are transformed into finished goods on a large
scale. Such goods may be sold to other manufacturers for the production of other more
complex products (such as aircraft, household appliances, furniture, sports
equipment or automobiles), or distributed via the tertiary industry to end users and
consumers (usually through wholesalers, who in turn sell to retailers, who then sell them to
individual customers).
Manufacturing engineering is the field of engineering that designs and optimizes
the manufacturing process, or the steps through which raw materials are transformed into
a final product. The manufacturing process begins with the product design, and materials
specification. These materials are then modified through manufacturing to become the
desired product.
Modern manufacturing includes all intermediate processes involved in the production and
integration of a product's components. Some industries, such
as semiconductor and steel manufacturers, use the term fabrication instead.
The manufacturing sector is closely connected with the engineering and industrial
design industries.The manufacturing industries are industries transforming goods, that is,
mainly manufacturing industries in their own right, but they also concern the repair and
installation of industrial equipment and subcontracting operations for third parties .
We cannot build it yet. But already we can specify the “postmodern” factory of 1999.
Its essence will not be mechanical, though there will be plenty of machines. Its
essence will be conceptual—the product of four principles and practices that together
constitute a new approach to manufacturing.

Each of these concepts is being developed separately, by different people with

different starting points and different agendas. Each concept has its own objectives
and its own kinds of impact. Statistical Quality Control is changing the social
organization of the factory. The new manufacturing accounting lets us make
production decisions as business decisions. The “flotilla,” or module, organization of
the manufacturing process promises to combine the advantages of standardization
and flexibility. Finally, the systems approach embeds the physical process of making
things, that is, manufacturing, in the economic process of business, that is, the
business of creating value.

As these four concepts develop, they are transforming how we think about
manufacturing and how we manage it. Most manufacturing people in the United
States now know we need a new theory of manufacturing. We know that patching up
old theories has not worked and that further patching will only push us further
behind. Together these concepts give us the foundation for the new theory we so
badly need.

The most widely publicized of these concepts, Statistical Quality Control (SQC), is
actually not new at all. It rests on statistical theory formulated 70 years ago by Sir
Ronald Fisher. Walter Shewhart, a Bell Laboratories physicist, designed the original
version of SQC in the 1930s for the zero-defects mass production of complex
telephone exchanges and telephone sets. During World War II, W. Edwards Deming
and Joseph Juran, both former members of Shewhart’s circle, separately developed
the versions used today.

The Japanese owe their leadership in manufacturing quality largely to their embrace
of Deming’s precepts in the 1950s and 1960s. Juran too had great impact in Japan.
But U.S. industry ignored their contributions for 40 years and is only now converting
to SQC, with companies such as Ford, General Motors, and Xerox among the new
disciples. Western Europe also has largely ignored the concept. More important,
even SQC’s most successful practitioners do not thoroughly understand what it really
does. Generally, it is considered a production tool. Actually, its greatest impact is on
the factory’s social organization.

By now, everyone with an interest in manufacturing knows that SQC is a rigorous,

scientific method of identifying the quality and productivity that can be expected
from a given production process in its current form so that control of both attributes
can be built into the process itself. In addition, SQC can instantly spot malfunctions
and show where they occur—a worn tool, a dirty spray gun, an overheating furnace.
And because it can do this with a small sample, malfunctions are reported almost
immediately, allowing machine operators to correct problems in real time. Further,
SQC quickly identifies the impact of any change on the performance of the entire
process. (Indeed, in some applications developed by Deming’s Japanese disciples,
computers can simulate the effects of a proposed change in advance.) .
Chapter VI
Conclusion
Conclusion

The support for sustainability in the realization of business objectives is significantly gaining concerns
among the business elites. The growth rate of the business in terms of the scientific and cultural
economic fields of activities requires the input of financial management. This paper has
demonstrated that a company must take a proactive approach to financial management and ensure
that they are within the right capabilities. It has also been asserted that organizations must take part
in voluntary social and environmental disclosures if they intend to attain social contract enablers.
The study has also illustrated that sustainability issues are critical in the making of financial decisions
and essential drivers of value. The findings further revealed that risk management should also be
conceptualized as part of sustainable management practices to prevent substantial uncertainties
that may affect the business revenues. In summary, financial management plays a vital role in
promoting sustainable business practices and development.

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