Question

Shaan Goods LLC is a leading manufacturing and trading company. They have a diverse business
of Polyester, Chemicals and Life Sciences. The company’s diversified business & product
portfolio caters the needs of every industry in the country. Shaan Goods LLC has a strong
reputation for excellent quality & customer service. They have laid solid foundation for future
growth, with major expansion projects and investments across its diversified portfolio in all of
their products. The annual results for Shaan Goods LLC is also encouraging. They are able to
deliver resilient performance in year 2018-19. The Company’s net turnover increased by 19% to
OMR 82 Million. Net turnover of more than OMR 40 Million is a new milestone for the company
and reflects its status as the partner of choice for its valued customers.
The Company has taken all necessary steps to ensure good governance. The management of the
company are pleased to follow the code of governance. The financial statements prepared by the
management of the company present fairly its state of affairs, the results of its operations, cash
flows and changes in equity. Appropriate accounting policies have been consistently applied in
preparation of financial statements and accounting estimates are based on reasonable and prudent
judgment. The system of internal control is sound in design and has been effectively implemented
and monitored. As per International Financial Reporting Standards, best practices have been
followed in preparation of financial statements and any deviation from these has been adequately
disclosed.
Shaan Goods LLC also wanted to play an important part as a responsible corporate citizen. The
company recognizes that CSR initiatives in the communities where it operates creates positive
impact for the people and improves their lives. As a part of its commitment, the company support
the initiatives by providing vocational training and higher education to communities. Considering
the growing pressures on environment, the company continues to participate in tree plantation
drives and utilizes biodegradable envelopes for the mailing of the official documents. The
company has started a campaign to provide safe clean water in the rural areas, more than 100
reverse osmosis plants have been fixed in the last 5 years.
a. During the current pandemic COVID 19, economies are under severe financial stress.
Economies have limited resources and unable to provide the basic necessities to their people. In
your opinion, how Shaan Goods LLC, with a baggage of huge net worth, can be a good example
of corporate social responsibility? Relate their CSR activities to the current scenario created due
to COVID 19.
b. Establishing and implementing good governance practices is the most useful activity an
organization can do to create a higher functioning of management, while building the right
foundation for achieving an organization’s vision and mission. Based on your understanding,
evaluate good governance practices followed by Shaan Goods LLC.

 

Answer 1

Facts of the Case: Shaan Goods LLC is a leading manufacturing and trading company currently reporting all the financial reporting, financial practices, statutoy compliances in appropriate manner. Company performance is appreciable. Profit is increased in overall by 19% and hit the sky at OMR 82 Million.

Currenlty Shaan looking for CSR activities to be taken care of to add values to the life of the people surroundng around them. CSR inititaed as  by providing vocational training and higher education to communities, Plantation and use the biodegradable project. the company continues to participate in tree plantation, Started safe clean water in rural areas by fixing reverse osmosis plant

a. In the current scenario, Shaan indulge inproviding vocational training sam ecan be provided online as well, secondly awareness about COVID 19 need to be ensure in their traiining, recent updates and measure need to be taken care of.

Planting trees is good examples it helps to keep people remain busy and productive, as they are locked down within their socities or area.

Providing clean water by fixing plant is one of the good initiative taken by them. It helps them to reach at every household easily and precautionary measures to be adopted during this pandemic is easily taught. Along with supply of water can also provide on monthly or weekly basis sanitizers or alcohol based solution medically approved to reach to every house, secondly cover the city so that COVID 19 should be fixed as soon as possible.

b. In order to maintain the glory or acheive the success, discipline is mandatory as similarly governance is same as discipline in the tenure of the corporate, as they identify, evaluate, monitor, inquire and change the system if it demands. here in this case, good governance is in plae which determines the internal control, management responsibilities na dcomplete oversight on the same. Proper finanlisaiton, CSR initiatives, proper disclosure, and management of vision and mission all are pointing fingers over the good governance acheived by the Shaan. Here with proper good governance able to report the drastic improvement in the the top line by 19%. All these flashes the good governance is being followed within an organisation.