MANAGEMENT OF ASSETS AND THE PROFITABILITY OF UGANDA CLAYS LIMITED, KAJJANSI.

TABLE OF CONTENTS

Title page .............................................................................................. .i

Declaration ............................................................................................ .ii

Approval .............................................................................................. .iii

Dedication ............................................................................................. iv

Acknowledgement .................................................................................... v

Table ofcontents ..................................................................................... vi

List of appendices ................................................................................... viii

List of tables and figures ............................................................................ .ix

Abstract ................................................................................................. x

CHAPTERONE

Introduction

1.0 Introdnction ........................................................................................ I

I.I Backgronnd of the study ......................................................................... 1

1.2 Background of Uganda Clays Limited ........................................................ 3

1.3 Statement of the problem ....................................................................... 5

1.4 Scope and purpose of the study ................................................................ 6

1.5 Objectives of the study .......................................................................... 6

1.6 Research questions ................................................................................ 7

1.7 Statement ofnull hypothesis .................................................................... 8

1.8 Significance of the study ........................................................................ 8

1.9 Definition oftenns ................................................................................ 9

CHAPTER TWO

Literature review

2.0 Introduction ...................................................................................... 13

2.1 Theories of management.. ..................................................................... 13

2.2 Review of related literature .................................................................... 18

CHAPTER THREE

Research Methodology

3.0 Introduction ..................................................................................... .28

3 .1 Research design ................................................................................. 28

3.2 Environment ...................................................................................... 28

3.3 Research subjects ............................................................................... 28

3 .4 Instruments ....................................................................................... 2 9

3. 5 Data collection procedures ..................................................................... 29

3.6 Data processing and analysis .................................................................. 31

3. 7 Statistical treatment of data .................................................................. .31

3.8 Limitations of the study ....................................................................... 32

CHAPTER FOUR

Data presentation, Analysis and Discussions

4.0 Introduction ..................................................................................... .34

4.1 Respondents' profile ........................................................................... .34

4.2 Assets held by the company in the period 1999 - 2005 ................................... 36

4.3 Management of Uganda Clays Limited assets .............................................. .39

4.4 Trend of Profitability .......................................................................... .43

4. 5 Relationship between management of assets and the profitability of the company ... 44

4.6 Factors affecting the profitability of Uganda Clays Limited .............................. 46

4. 7 Solutions to factors affecting profitability ................................................... 51

CHAPTER FIVE

Summary, Recommendations and Conclusions

5.0 Introduction ..................................................................................... .56

5.1 Summary ......................................................................................... 56

5.2 Conclusion ....................................................................................... 57

5.3 Recommendations ............................................................................... 58

Bibliography ....................................................................................... 61 

ABSTRACT 

The trend of profitability of any entity whatsoever can never be stable for all periods. Always, there has to be either a rise or decrease in profits or the company could even register a loss. As a result, there are several factors to which such deviations in the profits of the company are attributed. The researcher therefore wants to know whether there could be a significant relationship between the management of assets and the profitability of Uganda Clays Limited and also to identify the other factors that have an effect on the profitability of the entity and the possible solutions to the same. The sample of respondents was chosen from within the company. There was no special technique used in such selection but they were selected from amongst the top management and few company employees. The researcher chose the Managing Director and the Chief Accountant as the respondents from amongst the top management. The researcher also randomly picked on eight employees from the company's asset department as the next set of respondents. The researcher thinks that these respondents helped bring about objectivity in the study. Questionnaires, review and analysis of particular financial statements and recording are the methods that were used for data collection. Collected data and information was edited, coded and summarized into meaningful forms to enable the successful presentation of the research findings. The findings of the study showed that on average the assets of the company are properly managed. It was further discovered that there are other factors that have an effect on the profitability of the company. They include the welfare of employees, government policy of taxation, poor working capital management, competition, inadequate marketing, insufficient funds, rampant poverty and unemployment, power shortage, seasons and customs and tradition. X Recommendations emphasize the need to undertake proper management of company assets, careful selection of employees to fill up the asset department positions, consistent revaluation of company assets, reliance on external auditors for the auditing of the company's Financial statements, emphasize the control process of management, that government should come up and support companies, proper working capital management policies, production of high quality products, extensive advertising, applying for debt funds as well as issuing share capital and so on. These will enable the company to enjoy increased profitability. The findings of the study indicated that there is a significant relationship between management of assets and the profitability of Uganda Clays Limited. This information is very vital to all managers of large as well as medium and small entities in attaching proper value to the management of assets.