Financial Report of a Company

Question: 1. Background of the Company Write a good concise introduction of your chosen companys history, strategies, products, customers and the market competition of the industry that your chosen company is competing in. 2. Strengths and Weaknesses of the Company To adequately cover this part, your group is required to address the following issues: - Write a good concise introduction of Corporate Governance and relate to the Statement of Corporate Governance included in the most recently available annual report of your chosen company. Answer: About Booker: The Booker group is the leading food whole seller of United Kingdom. The group consist of the following: 1. Booker wholesale 2. Makro 3. Booker Direct 4. Classic drinks 5. Ritter Courivaud 6. Chef direct 7. Booker India The company serves 1.5 million customers in total. (Booker group, 2015) The company has its headquarters in the United Kingdom and is its largest cash and carry operator. It offers branded and private label goods that are sold to around 486,000 customers. The customer base includes the independent convenience stores, grocers, leisure outlets, pubs and restaurants. The group has a wide range of branded ad own label grocery, fresh and frozen food, beers, wines, spirits, tobacco and non-food items. The company currently lists about circa 18,000 lines of the products. As on March 29, 2013, the sales of the company totalled to 2.8 billion and the same were collected by the customer from the branches of the group and the sales totalling to 1.2 billion were delivered to the customer premises of the company. (Booker group, 2015) The company operates in the industry of UK grocery and discount sector and there is an increase in the competition within the industry. The company aims at delivering the plans that could be afforded by the customers and give them a better choice, price and the services along with the continued delivery of the Makro synergy plans and the efficiency programs. The company is in the process of delivering an outcome for the New Year which is in parity with the plans of the company and making progress in the challenging environment. Corporate governance: The concept of corporate governance is defined as the set of the systems, processes and the principles that aim at ensuring that the company is governed in the best interests of the stakeholders. It ensures that the company is directed and controlled in the best interests of the stakeholders. It is all about promoting the fairness of the corporate, transparency and accountability. It ensures the following: 1. Making the adequate disclosures and undertaking an effective decision making so as to achieve the objectives of the corporate 2. Ensuring transparency in the transactions of the business 3. Statutory and legal compliances 4. Protection of the interests of the shareholder 5. Commitments towards the values and ethical conduct of the business. (Corporate governance concepts, 2015) Corporate governance statement of Booker: The corporate governance statement of the company states that by the end of the year March 28, 2014, the company has complied with all the provisions and have successfully applied the main principles of the UK corporate governance code 2010, referred to as the Code. The report of corporate governance together with the report of the Audit committee, the report of the nomination committee and the remuneration report have complied with the provisions of the code. All the non-executive directors of the company are considered to be independent and considered to be free from any of the business or relationship that could affect their judgement as per the Code. The independence of the non-executive directors is considered each and every year and provides constructive challenges and ensures that the board is independent during the decision making process0 the board is of the view that there must be a presence of a Senior independent non-executive director and Lord Bilimoria fulfils that role. The role of the senior most non-executive director is that he can be approached in case the grievances are not resolved through the normal channels and he can be contacted wherever found appropriate. The board consists of the sufficient members and possess adequate skills and experience. No individual executive and non-executive director is capable of influencing the decision making power of the board. The directors keep themselves updated about the various activities of the group, such as the regulatory environment and the market in which it operates, through meetings with the senior most executives of the group. The latest external evaluation of the performance was conducted by the Institute of director in April, 2013 and the next will take place during April, 2016. In order to take care of the issues related with the policies of the group, the Audit Committee, a Nomination Committee and a Remuneration Committee has been established. All the directors have to submit their candidature for their election as the directors to the shareholders and are required to retire by rotation once in every three years. As per the Companys Articles of Association and section 175 of the Companies Act 2006, all the formal procedures for the notification and authorisation of potential and actual conflicts of interest have been duly approved by the Board. References: Bookergroup.com, (2015). Annual report 2014. Retrieved 12 February 2015, from https://www.bookergroup.com/~/media/Files/B/Booker-Group/pdf/investor-centre/reposts-presentations/rp2014/booker-group-ar14-06062014.pdf? Bookergroup.com, (2015). Our Businesses Booker Group PLC. Retrieved 12 February 2015, from https://www.bookergroup.com/about-booker/our-businesses.aspx Bookergroup.com, (2015). What We Do Booker Group PLC. Retrieved 12 February 2015, from https://www.bookergroup.com/about-booker/what-we-do.aspx Business.gov.in, (2015). Business Portal of India: Corporate Governance: Concept and Objectives. Retrieved 12 February 2015, from https://business.gov.in/corporate_governance/concept_objectivess.php