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The Effect Of Lease As A Means Of Procurement In Manufacturing Organization
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In 1995, the company again
increased the authorized share capital to N60,000,000 and went forward
immediately for a rights issues to the existing shareholders. A four
colour ultra man 6 machine was also purchased in 1995 to further
increase capacity and ensure improved quality and delivery time to our
value customers. The company in the same year acquired an ink factory
(chemical technology) which now provides all the ink requirements of
studio press (Nigerian) plc. There is a plan now to modernize the ink
factory and improve the facilities in order to meet the requirements of
the external market.
The corporate policy guidelines of the
company are laid down by the company’s board consisting of a chairman,
managing director and three other members.
Aluminum Extrusion Industries Plc
Aluminum extrusion industries plc was incorporated on 26th October,
1982 and carries on the business of manufacture and sale of all types of
extruded aluminum products. The company is located at km 4, Atta
–Amaimo Road, Inyeshi and is registered as a public limited liability
company under the provisions of the companies and allied matters decree
1990.
Nigeria citizens and associations hold 30% of the share
capital while the balance is hled between the Imo state Government,
Abia state government and Tower Aluminum (Nigeria) plc. The company has a
technical and management services agreement with comcraft management
services S.A. A company which also provides Tower Aluminum (Nigeria) plc
with similar management services.
However, the company’s
corporate policy decisions are taken out of the board level while
routine operational decisions are taken at the divisional/department
levels.
1.8 DEFINITION OF TERMS
A lease: A lease is a
contractual agreement between an owner (the lessor) which conveys to the
leassee the right to use the leased asset for an agreed period of time
in return for a consideration, usually payments called rents (SAS, 11).
Logistic Activities: Supplying logistics is the planning,
organizing
and controlling of all more store activities that facilitate product
flow from the point of raw materials acquisition to the point of find
consumption as well as the attention information flows. Activities
involved in this regard includes transportation, inventory management,
warehousing as well as material handling and acquisition. All these
logistics activities entails the use of certain equipment for performing
profitably by firms.
Operating Lease: This is one in which the lessor, while
giving the lessee the use of leased property, retains practically all the risks, obligations and reward of ownership (SAS, 11).
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ABSRACT - [ Total Page(s): 1 ]The essence of this research work is to investigate carefully the effects of lease as a means of procurement in manufacturing organizations. Some selected companies were used as a case study like the studio press Nigeria plc at Lagos and Aluminum extrusion industry plc. While carrying out this research work the researcher reviewed the extent to which some firms have availed themselves to leasing and the effect of lease in tackling the logistic and financial problems of these firms. It was also ... Continue reading---
