Mysterious of Oil

Main issue arise when petrol station revenue decline after year 2006.this is because two new competitors and some other problem. Mat John review the three year financial statement after Mat John old friend from university contact him and asked Mat John if he was interested in selling off the business. Though Mat john was not very keen to sell the business, he still wanted to know more before making the decision. So he asks Jamel who is operating the business to bring financial statement and some other important record. Mat John manage find out that his petrol station are running so bad. He knew that the petrol station had been affected by the two new competitors who come on 2006 and 2008 but he had no idea that things were so bad. Not only was revenue declining over the past three years but he notices that cost of sales was increasing. Issue that arise in this case is failure of management. This is because responsible person practise unethical behaviour in completing the task. Mat John gives Jamel the responsibly to operate the business but he failure to operate the business well. Mat John found a lot of misstatement has been done by his nephew, Jamel. He realizes that there fraudulent symptom shown by Jamel unusual behaviour. The owner should control and monitor the operating of the petrol station. Beside than this is inaccurate sales record and shortfall physical balance of the unleaded petrol and insufficient company cash deposit. Furthermore, the owned has been overspending. It can be identified in bank statement. This is because the petrol station expenses beyond the limitation of overdraft. The revenue of petrol station and the revenue of Jombeli shop is decline. So, mat john want to decide whether or not to continue with the business or to consider Robert offer to buy the Spetrol station.