YOUR ANSWER MUST BE SUBMITTED ON THE PAPER PROVIDED BY THE ICAEW IN...

5. Your answer must be submitted on the paper provided by the ICAEW in the Examination Hall. Any pre-prepared papers, or papers comprising annotated exhibits from the case material, included in your answer WILL NOT be marked by the examiners.

ICAEW USE ONLY

List of exhibits

The following exhibits were included in the material provided as Advance Information: 1 About you (Robin Tyler) and your employer (Kreem Ltd) 2 The cosmetics and toiletries industry: Background 3 The cosmetics and toiletries industry: Business models 4 The cosmetics and toiletries industry: Regulation 5 All about Kreem Ltd 6 Memo from Rameet Sharma (Director of Finance and Business Planning) to all members of the board: Business review for the year ended 30 June 2009 7 Kreem Ltd: Management accounts for the year ended 30 June 2009 8 Kreem Ltd: Summary of arrangements with Retail Division customers 9 Kreem Ltd: Summary of arrangements with HCC Division customers 10 Kreem Ltd: Supplier profiles 11 Kreem Ltd: Financial forecasts 12 Email from Henry Johnstone (Product Director) to Rameet Sharma: Packaging arrangements 13 Recent press articles 14 Kreem Ltd: Example product label The following items are newly provided: 15 Email from Rameet Sharma to you: Review of results and business planning 16 Kreem Ltd: Management accounts for the year ended 30 June 2010 17 Fax from Edwina Michaels (Purchasing Director, Longmore Hotels) to Roddy Ryan (Sales and Distribution Director, Kreem Ltd) 18 Email from Henry Johnstone to Rameet Sharma: Packaging arrangements – update 19 Recent press articles

KREEM LTD

Case Study requirement

You are Robin Tyler, a final-year trainee Chartered Accountant working for Kreem Ltd (Kreem), one of the UK's leading toiletries companies. Requirement You are required to prepare a draft report for the Kreem board, as set out in the email dated 28 July 2010 from Rameet Sharma to you (Exhibit 15). Your report should comprise the following four elements: • An executive summary • Your responses to the three detailed requirements set out in Exhibit 15, including financial appendices (as required). State clearly any assumptions that you make. All workings should be attached to your answer. Your report should be balanced across the three detailed requirements, and the following time allocation is suggested: Reading and planning 1 hour Performing calculations and financial analysis 1 hour Drafting report 2 hours Marks allocation All of the marks in the Case Study are awarded for the demonstration of professional skills, allocated broadly as follows: Applied to the four elements of your report (as described above) • Assimilating and using information 20% • Structuring problems and solutions 30% • Applying judgement 25% • Drawing conclusions and making recommendations 20% 95% Applied to your report as a whole • Demonstrating integrative and multidisciplinary skills 5% 100% Approximately 15% of the marks are awarded for the executive summary and 10% for the appropriate discussion of ethical issues within your answer to the requirements. In planning your report, you should be aware that not attempting one of the requirements will have a significantly detrimental effect on your chances of success, as will not submitting an executive summary. In addition, as indicated above, all four skills areas will be assessed under each of the four elements of your report. Accordingly, not demonstrating your judgement and failing to include appropriate conclusions and/or recommendations in each element of your report will affect your chances of success.

EXHIBIT 15

EMAIL From: Rameet Sharma, Director of Finance and Business Planning To: Robin Tyler Date: 28 July 2010 Subject: Review of results and business planning At our next board meeting, in addition to discussing the annual results, we will be focusing on business planning. I have been asked to brief the other directors on two topics: (i) the possible sales contract with a potential new HCC customer, the Longmore chain of hotels; and (ii) strategic issues in relation to our packaging supply arrangements. I am attaching the following relevant documents: • Management accounts for the year ended 30 June 2010 (Exhibit 16) • The proposal from Longmore (Exhibit 17) • An email from Henry Johnstone about our packaging supply arrangements (Exhibit 18) • Various recent press articles (Exhibit 19). I would like you to prepare a draft report to the Kreem board, comprising: