y) was established during the year 1999 and registered in Gaza as a public shareholding limited company in accordance with the Companies’ Law of 1929 and its amendments. The Company has, in addition to its main office in Gaza city, offices in Nablus and Ramallah. The main objectives of the Company include constructing and selling real estate properties and developing residential, commercial and industrial cities and villages and provide the required infrastructure and also financing various real estate projects for the purpose of supporting the housing and construction activities in Palestine. The Company is constructing and developing different projects in progress in Gaza and west bank. The details of the projects in progre
XYZ (the Company) was established during the year 1999 and registered in
Gaza as a public shareholding limited company in accordance with the
Companies’ Law of 1929 and its amendments. The Company has, in addition to
its main office in Gaza city, offices in Nablus and Ramallah.
The main objectives of the Company include constructing and selling real
estate properties and developing residential, commercial and industrial cities
and villages and provide the required infrastructure and also financing various
real estate projects for the purpose of supporting the housing and construction
activities in Palestine.
The Company is constructing and developing different projects in progress in
Gaza and west bank. The details of the projects in progress are as follows:
2011 2010 2009 2008
U.S. $ U.S.$ U.S. $ U.S. $
A project – Gaza 5,602,956 5,602,956 5,602,956 5,602,956
B project – Gaza 3,003,475 3,003,475 3,003,475 3,003,475
C project – Nablus 807,690 638,500 601,105 530,812
D project – Ramallah 1,114,309 812,530 120,012 -
Other projects - Ramallah 887,519 345,987 52,197 930,512
11,415,949 10,403,448 9,379,945 10,067,755
`
The Company share capital is 80 million shares with 1 U.S. $ par value for each
share.
Bellow is balances extracted from the Company Financial Statement:
2011 2010
U.S. $ U.S. $
Paid-in share capital 60,000,000 60,000,000
Accumulated loss 24,860,000 19,430,000
Statutory reserve (10% of the net annual profit
before tax ) 318,000 318,000
Total accounts receivable 8,000,400 6,095,800
Collection (cash, transfers, and checks) during
the year 500,000 700,000
Loans 18,000,000 8,000,000
Apartments ready for sale 4,875,848 4,875,848
You are required to
1) identify the business risk of this client,
2) accounts affected,
3) plan to address
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