Answer the Questions in the attachments below..

Kila Kitu Petroleum Limited (KKPL) was a major petroleum retailer which had earlier collapsed due to poor strategy implementation that led to extreme financial distress. The company was formed in 1965 as a state owned entity and was privatised in 1972 through floatation of shares at the securities exchange. The company operated petrol stations all over Africa. KKPL commanded market leadership between 1974 and 1982 before it started implementing a grand expansion strategy that increased its petrol stations in Africa and an ambitious automation programme using short term sources of funds. A combination of poor economic performance, high interest rates, adverse exchange rates and internal governance problems led to the gradual demise of the giant petroleum company. In 1985, KKPLclosed down 15 perennial loss making petrol stations in the region. The company also raised billion through a rights issue the same year. During this time, the directors sold many of the she they held at KKPL, through the open market. The rights issue and open market sale enabled directors to reduce the shareholding in the company from 20% to less than 7%. Soon after the rig issue, the board of directors declared the company insolvent. It took the intervention of the government to come to the rescue of creditors and shareholders government intervened through a bailout which enabled the company to pay the suppliers their d The government also directed the management of KKPL to develop a turnaround plan. In the plan. company pledged to live up to its core values of integrity, transparency, accountability, commitme and professionalism. Culpable officers who had brought the company to its death bed were to punished. A number of directors were taken to court and a new management team was appointed lead the company out of the challenges it was facing. Josephine Mulwa, a distinguished professional accountant who had turned around several company which had previously faced similar problems as those faced by KKPL was appointed as the new Ch Executive Officer (CEO). Her appointment was to take effect from 15 September 2013 and she was serve for a renewable term of six years. . In the year 2014, the company recorded its first profits after many years of making losses. company however, did not declare dividends. Shareholders of KKPL expressed their disappointme during the company's annual general meeting (AGM) as they had invested heavily in the company with the hope of reaping high returns in future. One enraged shareholder was quoted as having s "How long shall it take before we get dividends when we still have all these debts to pay an expansion plan to undertake? We are so disappointed. Do not make us feel worse with m disappointments". From the annual financial statements, it was evident that the company was high geared. Josephine Mulwa did not last long as the CEO of KKPL as the company was yet again decla insolvent on 12 July 2016. She was ousted by the board of directors over what the board termed gross misconduct and negligence in her performance of duties. Several other directors were al sacked and replaced. The board engaged the services of Vkinsim Associates to carry out foren investigations on the company. The forensic audit revealed that: . A cartel of senior managers had formed companies that supplied KKPL with goods that it so higher prices than the market rates. . The goods supplied by the cartels were of low quality. This drove away customers leaving K with goods that it could not sell, yet it had paid for them. . The company borrowed more money from financial institutions to pay suppliers who ironically its staff members. The money raised through the rights issue could not be fully accounted for. making losses. The top management manipulated the books of account to reflect profits yet the company The company was operating under a highly competitive environment where key compet were not aggressive and responsive to changes in the market.. Due to high inflation rates and the weakening local currency against international currencies, the company was forced to review prices of its products upwards yet the demand for the products was declining. It was evident that for KKPL to survive and post significant returns to its shareholders, business process re-engineering was inevitable and KKPL had to rethink its business model. Required: a) Examine five corporate governance issues in the management of Kila Kitu Petroleum Limited (KKPL). b) Assess the recourse available to shareholders of KKPL in the light of the fraud which was revealed through the forensic audit. c) Analyse the conduct of the top management of KKPL which could lead to the immediate former CEO, Josephine Mulwa being disciplined by the Institute of Public Accountants where she is a member. d) Assuming that you have been approached by KKPL to formulate a recovery plan for the company: i. Discuss five schools of thought whose principles you could utilise during the strategy formulation. ii. Propose five steps that KKPL could follow if it decided to undertake a divestiture.a) Evaluate three strategies that the government of your country could apply to improve foreign exchange restrictions. b) Explain three economic factors that should be considered when measuring the country risk. C) i. In relation to international investments, differentiate between "covered interest arbitrage" and "interest hedging". ii. Royal Airlines is intending to hedge 1,200,000 Kenyan shillings (KES) in ticket sales receivable in 90 days. The following exchange and interest rates are applicable. Spot rate: KES/ZAR 7.9 90-day forward rate KES/ZAR 8.0 90-day Kenya interest rate 2.5% 180-day interest rate in South Africa 7.0% Note: ZAR stands for South African Rand. Required: Using suitable computations, advise Royal Airlines if there exists any arbitrage opportunity.d) The exchange rate between Japanese Yen (JPY) and the United States Dollar (USD), USD is 119.05 - 121.95. The exchange rate between the Euro, EUR and the USD, USD: EUR is 0% - 0.7932. Required: i. Calculate the direct quote between the JPY and EUR. ii. . Identify the bid price and ask price based on your answer in (d) (i) above.SCL is an important company to the economy since many livelihoods depend on the company for survival. The government in the past came up with interventions which seem not to work. Some of these interventions are: The setting up of importation quotas and punitive customs duty on imported sugar. Writing off loans to millers such as SCL and farmers. . Assisting SCL to settle debts to farmers. . Improving infrastructure such as roads in the sugar belts. . Reduction in tariffs on raw materials and capital inputs. It is evident that for SCL to be saved from collapse, more strategies need to be developed. Mere lip service will not help turnaround a company which was once a gem in the sugar belt. Required: a) With the use of suitable examples, illustrate how the code of governance for state corporations in your country has been flouted by SCL. b) Explain five measures that SCL should put in place to ensure that the company is competitive in the market. c) Suggest six remedies available to SCL where directors are found culpable of breaching fiduciary duties. d) Assuming that you are a corporate strategy consultant and SCL has approached you for advice on modernisation of the company's operations, suggest six modules that should be included in the integrated enterprise resource management software for the company. e) Assess five unethical practices propagated by various agents of SCL.The chief executive officer and other senior managers were political appointees. SCL had no policy on risk management, procurement and information communication technology. SCL and its contracted farmers are yet to embrace modern methods of farming. The outgrowers greatly rely on rain to grow their sugarcane. Rain fed sugarcane takes 3 times more time to mature than sugarcane grown using irrigation. Lack of sufficient cane has resulted to SCL shutting down the manufacturing plant most of the times during the year. A number employees are usually laid off during the shut downs. Some shut downs are however scheduled to allow for maintenance of the machine and boilers. These shut downs can last for several months leading to a huge shortage of sugar in the market. The company has a capacity of producing 300,000 metric tonnes of sugar in a year. However, it only produces 100,000 metric tonnes. SCL is highly inefficient, poorly governed and has lost goodwill from farmers and employees. Due to the low pay per metric tonne of sugarcane delivered to the company, its contracted farmers have resulted to selling their sugarcane to its competitors. This adds to SCL's woes since farmers are financed by the company to acquire farm inputs such as fertilizers and seedlings with the hope that the company would recover its money after the delivery of sugarcane and before making payments for the sugarcane delivered. The competitors of SCL use the latest technology to manufacture sugar. SCL, a company which used to control 79% of the market share uses an archaic technology. For SCL to return to profitability, the company has no choice but to acquire integrated enterprise resource management software. With trade liberalisation, competition has gone a notch higher. More private sugar factories are being established which pay employees better and farmers on time. Business people are importing cheaper sugar which they sell at a price below the cost of production at SCL. The company has on various occasions imported sugar which it packaged and sold to the local market instead of manufacturing sugarcane from local farmers. In some instances, earnings from imported sugar ended up in private accounts of the senior managers. Early in the year 2015, the company suspended a number of employees implicated in irregular termination of contracts with farmers. The company lost 400 million shilling mostly through legal suits. More money was lost as the company ignored guidelines on pricing. SCL's procurement systems did not conform to the government's procurement and disposal regulations. Other malpractices in the company include: . A large amount of sugar that is manufactured by SCL leaves the stores of the company undocumented. This is done with the knowledge of senior management and security officials at the factory. Collusion between sugar distributors and senior officials of SCL to give undocumented credit advances to selected distributors. Laxity in collecting sales proceeds from buyers in order to earn interest and kickbacks for sales officials. . Not harvesting contracted farmers cane on time. A farmer has to bribe SCL's employees for sugarcane to be harvested.Shuga Company Limited (SCL) is one of the oldest sugar manufacturing companies in the Great Lakes region of Africa. The company manufactures sugar from sugarcane which is mainly sourced from over 60,000 registered outgrowers. The company operates a nucleus estate where it has planted sugarcane on more than 50,000 hectares of land. SQL is 100% owned by the government. Most of the sugar manufacturing companies in the country where SCL operates are owned by the government. The farmers' voice is low since they have limited control of activities in SCL which is largely controlled by the government. The directors of SCL are appointed by the government. The current board comprises 27 directors most of whom are appointed through local politicians. A recent governance audit revealed that 6 directors were secondary school dropouts. The audit also revealed that: No board member had adequate financial management qualifications. Some board members. were employees of the company and had voting rights. Two board members had no appointment letters. The chairman of the board was running most of the day-to-day activities of the company. The term limits for the board members were not clear and some members had served the Board for more than 20 years