Chic Paints Ltd Plan

1. Description of organisation
Chic Paints Ltd manufacture specialist paints such as those used on boats, cars and industrial machinery. All paints and allied products are expertly formulated to meet the highest international standards, using the best available technology.
Chic Paints Ltd is shareholding organization, owned by: Greg Pearce (Managing Director), Dave Whistler (Finance Director), Ruth Jones (Sales Director), Ahmed Khan (Production Director) and Susan Mather (HRM Director).

2. Suppliers and customers
The company's trade customers are made up of both UK and international clients, who are involved in the manufacture or repair of boats, cars and industrial equipment. CPL does not sell to the general public. The organisation has around 80 regular trade receivables.
CPL retain also one-off orders from non-regular customers, which makes about 20% of company's turnover.

3. Software and IT system
3.1 After MBO it was decided to use Microsoft Excel spreadsheet for the financial accounting system, rather than buy a more sophisticated integrated package. The actual account ledgers were bought as a tailored system for the company.

4. Payroll  
The company operates two separate payrolls running with Sage 50 software. The first is to pay the shop floor production workers paid by the hour, where the second is used for the monthly-paid members of staff, who are the directors, management, supervisory, sales and office staff.

5. Company’s weaknesses:

5.1 Credit Control:

5.1.1 The Credit Controller is neither accounting nor credit control qualified, but has expressed an interest of gain some formal qualification

5.1.2 Rymore Boats, one of the company’s customer, went into administration, credit controller had set it at £25,000 and company’s current internal controls allowed to do this

5.1.3 The same creditor were considerably overdue with their payments and their outstanding debt had risen to over £40,000 (–credit limit £25,000)...