The reasons for the study emanated from the fact that poor financial control system has always been an impediment to the growth of some business organizations. They have always faced the problem of poor cash and material control system of which this study has addressed it self to. The problem of how stocks and cash should be held in order to have a healthy financial environment and operations and the maintenance of an efficient inventory management some of the organizations.

The problem of stock management revolves on the determination of the optional stock levels. Besides, efficiency financial control measures and staff efficiency to which this work will address itself to, counts to the problems faced by some organizations like brewery. I have to make some useful suggestions and recommendations based on that which the company and other similar organizations will adopt to achieve results.

This study will be a guide to scholars, researcher or writers who may wish to carry further study on the financial management of the company. This study focuses on the examination of the existing financial control system in Brewery and also to investigate the present system of cost control and material management as indicated above.

CHAPTER ONE

1.0 INTROUDCTION

1.1 BACKGROUND OF THE STUDY

The financial function has always been important in management irrespective of any difference in structures, Ownership and size. The financial organization of any business enterprise ought to be cable of ensuring that various aspects of its financial activities including planning and controlling are carried out at the highest possible degree of efficiency. The profitability and stability of a company depends on its accounting and cost control system; the efficiency of its staff and the management’s adherence tot eh internal control system as well as to the general financial policy of the company.

Most of the studies conducted on business finance have laid more stress in comparing financial results of public and private sector undertaking vis–a–vis profitability. The “Fiscal approach has often over shadowed the fundamentals of internal financial management while it is obvious that factors in the financial market, social, economic, political and other external consideration significantly influence internal decisions, it is desirable that we focus attention upon “means” and not the “result” alone. Profitability is the result of the means and methods employed in planning controlling various functions of business.

Dynamic profit planning and control is a broad approach to accomplishing the management efficiency, and management function, its development and usefulness have significantly increased in recent years. It is specially significant in that the functional areas of management are bought into focus, a broad mutual enrichment of function between management and accounting that is a vital feature in the successful life of progressive enterprises. However, it full potential is frequently eclipsed in public enterprises by the gap between the mechanics of the system and conceptual and pervasive attitude towards public undertaking and Nigeria Breweries in particular.

1.1.1 Historical Background of the Company Nigeria Breweries Plc

Nigeria Breweries Plc was established in Lagos in 1946 with the visionary leadership of Heineken International and Unilever of London with other distributive firms operating in Nigeria. It has since realized operational excellence and has become a model corporate citizen of Nigeria. In 1949, it launched Star Lager Beer, Gulder, in 1970, Legend Extra Stout in 1992, Maltina in 1979, Amstel Malta in 1998 and current Heineken in 1996. It builds and opened its Lagos brewery in 1949, Aba Brewery in 1957, Kaduna Brewery in 1963, Ibadan Brewery in 1982 and Enugu Breweries in 1994. In Enugu presently it has expanded its brewery plant in what will become the largest brewery in African. The overall purpose of Nigeria Breweries Plc is to put a smile on every face, to spread refreshment and enjoyment to all Nigerians. Also to enable people relax after a hectic days job, to avoid producing a nation full of stressed people given our numerous problems of traffic jams, no NEPA, no water, no money, no jobs with a lot of dependents etc. Nigeria Brewery Plc takes this mission of bringing enjoyment to all Nigerians, also to look after your health but actually to go beyond that and just have plain fun. There is a well. Known adage that says: all work and no play makes Jack a dull boy.

Having known the historical aspect of the establishment of the Nigerian Brewery Plc it is therefore worthy to touch on its organization set–up; and its financial functions in line with this study being carried out in the area of the company’s profit planning and control for aiding management in accomplishing the objectives within the social and economic constraints.

1.2 STATEMENT OF THE PROBLEMS

Financial mismanagement and weak control have been a problem of many public and private establishments. The problem of financial management and poor financial control by an organization impedes its growth and development. The present trend of “get rich quick” has made many Nigerian breweries’ workers in positions of trust to abuse their trust and misappropriate or embezzle the company’s funds. These misappropriations of funds manifest itself in different forms such as falsification of receipts and invoices; carting away of stock material without proper documentation, etc. The problem of poor control has led to the increasing rate of loss of company’s resources; the company operating below targeted figure with minimal profit margin; and making poor returns.