ABC Construction LLC is a construction company owned by Mr. Mohammad (a civil engineer by profession). Mr. Mohammad established the company seven years ago in Dubai. Now it has branches in other Emirates. The company is doing well in terms of business but Mr. Mohammad is not satisfied with the financial matters of the company as there is always a shortage of funds.
Consequently the company is sometimes unable to pay remuneration to the workers and make payments to creditors and suppliers. The company is losing its name in the credit market and the workers are unhappy due to the non-payment of their wages.
Mr. Mohammad wants to resolve this matter. He asked you to help him in the following issues:
- Explain to Mr. Mohammad why financial planning is important to improve the financial performance of the company.