NATURE OF THE ENGAGEMENT

1.        Subjects of the engagement:

Following subjects are within the coverage of this engagement;

a.  Preparation of financial plans and variance reports, analysis of variances.

b.  Evaluations of financial position and profitability.

c.  Sensitive cost computations.

d.  Break-even [cost-volume-profit] analysis.

e.  Evaluation of investment projects.

f.  Management of assets and sources.

g.  Other subjects of management and cost accounting and of finance.

This engagement, naturally includes, to a great extent, our “tax and other financial legislation consultancy” engagement.

2.        Our activities within the engagement:

First of all, we develop our recommendation concerning “the most convenient financial management structure” for our clients, and make said structure definite by receiving our clients’ approval throughout discussions with them.

Keeping above said agreed-upon model structure always in mind, we conduct, depending on the choice of our clients, some or all of the followings;

By acting as a consultant;

a.  To evaluate and recommend ideas for improvement of existing systems.

b.  To develop new systems.

c.  To evaluate and recommend ideas to improve quality and efficiency of    

     execution and result of operations.

d.  To participate in company meetings and meetings with third parties for the

     purpose of facilitating the meeting by clarifying financial subjects.

e.  To evaluate technical capabilities of existing or candidate managers or staff.

f.   To execute training programs for financial management managers and staff to  

     enhance their technical and operational capacity.

g.  To execute training programs for managers and staff acting in non-finance areas 

     to enhance their financial sensitivity.

 By acting as a coordinating consultant;

 In addition to what is said in paragraph a above;

i.   To implement the ideas mentioned in paragraphs a.i and a.iii above.

ii.  To implement the systems mentioned in paragraph a.ii above.

iii.  To coordinate and supervise all the activities in the financial management area.

3.        Enhanced engagement [a DEFINITE SOLUTION service package]

We provide our clients with a service package which includes subjects and activities within the context of this engagement together with some or all of the subjects and activities within our “full coordination of official accounting and operational accounting” engagement.