My Presentation & viva STORY
mc090405027 Mehmood Ahmad
My Presentation story……
Mehmood MBA-Finance from Lahore
Once upon a time……..( Time km hy to sirf highlight hi parh lain)
My call was on 22 September 2011 at 11 am at Lawrance road near china chowk, Lahore. I reached there at 10:20 marked my attendance and sit in waiting area.
I was called on 11:05 am. There were three person, two females and one male. One of the female said to me in English:
“Mr. Mehmood, Please have the seat, attach your USB open your slides. Press F5 and please stand up and start your presentation.”
So, I started my presentation with the introduction of the company.
(I did not introduced myself because they already know my name and that I am student of MBA-Finance from virtual university……hahaha)
While I was introducing the organization where I did my internship, she said “Please come on training program.”
I told that I did my internship in so and so chartered accountant firm. Where the major work that I did was to take photocopies take prints etc
…..at this point I started to use Urdu…..
The male asked “ ap nay wahan say kia learn kia, apna learning experience btao.” I told that I helped an article student in preparing the accounts of a small company, which was a CNG station.
Then he asked me,”Kia wahan koi Public Ltd. Company thi?
Main nay kaha: unhon nay CNG station k accounts k ilawa kisi company k accounts k baray main nahi btaya.
Phir us nay pucha k financial statements ki kitni typed hoti hain? Main nay usay gin kr bta din k 5 hoti hain. Phir us nay 1 question pucha jis ka sahi answer daity daity ghalat bol gya.( shayad thora confuse ho gya tha) Us nay pucha k “Auditor company audit krnay k baad audit report daiti hay. Ye report 2 tarha ki hoti hay. Qualified and unqualified. In main farak kia hay.
Main nay is sawal ka ulta jawab dy dia jis ka mujay afsos rhay ga. (Main nay fair report ko qualified keh dia tha). Wo teenon 1 dam bolay phir soch lo. Female teacher nay khud hi keh kia k ap ulta keh gye ho. (dusri female ny 1 lafz b nahi bola shayad wo body language ye psyche note kr rhi thi)
Then male teacher nay kaha k please come on ratio analysis. Main ratio analysis pr general discuss krnay laga to us nay kaha k current ratio k baray main btao. Current ratio main say us nay pucha k in teenon saal ki ratios main say kon si sab say better hay. Main nay bta dia k 2010 ki. Us nay pucha k 2010 ki raio ka jo answer aa raha hay is ka kia mtlab hy. Main nay bta kia k current assets itnay times hain as compared to current liabilities. 1 swal aur pucha k what is the benchmark of current ratio?
Then us nay kaha k “ come on times interest earned ratio”.
Is main say 2 swal puchy
- ye ratio kis liye use hoti hy.
- in teenon saalon main say most favorable kis saal ki hay.
- 2010 ki raio k answer ka kia meaning hy?
Is k baad us nay pucha k ap is company k baaray main kia recommend krty ho?
Main nay kaha k debt financing kam kr k equity financing ziada honi chahye.
Then they said me Thank You.
I aur haan 1 swal to main bhool gya. “ wok on sa idara (institute) hy to chartered accountant to recommend krta hy?” my answer was ICAP ( Institute of chartered accountants of Pakistan)
Important:
They are asking more about benchmark of ratios e.g. for current ratio that is 2:1 and for acid test ratio it is 1:1
Alhamdu Lillah I got “P” in internship subject.
Please pray for my good future. & also pray that Allah give every one “Rizq-e-Hilal”.
Remember me in your prayers.
Allah Hafiz.
mc090401732 Tasawwar Hussain
Tumne to "veer zara" ko bhi piche chod diya ....
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immi Boy
ShahLa
Unqualified Opinion report
The most frequent type of report is referred to as the Unqualified Opinion, and is regarded by many as the equivalent of a "clean bill of health" to a patient,[2] which has led many to call it the Clean Opinion. This type of report is issued by an auditor when the financial statements presented are free of material misstatements and are in accordance with GAAP, which in other words means that the company's financial condition, position, and operations are fairly presented in the financial statements. It is the best type of report an auditee may receive from an external auditor.
Qualified Opinion report
A Qualified Opinion report is issued when the auditor encountered one of two types of situations which do not comply with generally accepted accounting principles, however the rest of the financial statements are fairly presented. This type of opinion is very similar to an unqualified or "clean opinion", but the report states that the financial statements are fairly presented with a certain exception which is otherwise misstated.
Marina Khan
ladli betia
اس سے بہتر کس کی بات ہے جس نے لوگوں کو نیکی کی طرف بلایا، خود بھی نیک کام کۓ اور کہا کہ بے شک مسلمانوں (خدا کے فرماں برداروں) میں سے ہوں
mano sham
Marina Khan
· Current Ratio
Current ratio determines the short term liquidity position of an entity
Current Assets / Current Liabilities
Benchmark Rate:
2:1 for companies
1.5:1 for Banks
If near or above to benchmark rate it favourable for organizations. (Current Assets are more than Current liabilities)
If below to 1 is not favourable for organizations (Current Liabilities are more than Current assets)
· Acid Test Ratio (Quick Ratio)
Acid test ratio determines to see the organization liquidity position by subtracting inventory and prepaid expenses.
Quick Assets / Current Liabilities
Quick Assets - Also known as Liquid Assets. Consists of cash, short-term marketable securities and accounts receivable.
Benchmark Rate:
1:1 for companies
1:1 for Banks
If above to benchmark rate it’s favourable for organizations. (Current Assets after subtracting prepayments are more than Current liabilities)
If below to 1 is not favourable for organizations (Current Liabilities are more than Current assets after subtracting prepayments)
· Working capital
Working capital is the difference of current assets minus current liabilities. This measures the short term solvency position of the company.
Current Assets – Current Liabilities
If Current Assets are more than Current Liabilities then it’s favorable for organizations because organizations have positive working capital.
If Current Liabilities are more than Current Assets then it’s NOT favourable for organizations because organizations will have Negative working capital.
Times Interest Earned (Interest Coverage Ratio or Fixed Charged Coverage)
Time interest earned indicates whether the business has earned sufficient profits to pay its periodical interest liabilities or not
EBIT / Interest Expense
Increasing Ratio is favorable for the bank because it may attract the investors.
Decreasing Ratio is not favorable for the bank because company has been less able to cover the interest on the debt
Your banker will be looking for your TIE ratio to be 2.0 or greater, showing that your business is earning the interest charges two or more times each year
· Debt Ratio
Debt ratio used to measure a company's financial risk by determining how much of the company's assets have been financed by debt
Total Liabilities / Total assets
A debt ratio of greater than 1 indicates that a company has more debt than assets
A debt ratio of less than 1 indicates that a company has more assets than debt
Increasing Debt Ratio is favorable for the banks (But not more than 1) and not favorable for the companies.
Decreasing Debt Ratio is not favorable for the banks and favorable for the companies.
· Total Capitalization Ratio
The capitalization ratio measures the debt component of a company's capital structure, or capitalization (i.e., the sum of long-term debt liabilities and shareholders' equity) to support a company's operations and growth.
Longterm debt / Longterm debt + Shareholder equity
There is no standard or benchmark for setting the right or optimum amount of debt. Leverage will depend on the type of industry, line of business and the stage of development of the company (and its products). However, it is commonly understood that low debt and high equity levels in the capitalization ratio indicates good quality of investment.
All Profitability Ratios if increasing is good decreasing not good... following are the p.ratios
ü Net Profit Margin
This ratio shows profitability of the bank against it sales.
Profit after Tax / Net Sales x 100
ü Return on Assets
ROA is measure of a company's profitability, equal to EBIT divided by its total assets, expressed as a percentage.
EBIT / Total Assets x 100
ü DuPont Return on Assets
Dupont ROA is an approach that determines the impact of asset turnover and profit margin on profits.
Net Income / Sales x Sales / Total Assets x 100
ü Operating Income Margin
Operating income margin is used to measure a company's pricing strategy and operating efficiency.
EBIT / Net Sales x 100
ü Return on Operating Assets
The return on operating assets measure only includes in the denominator those assets actively used to create revenue.
EBIT / Operating Assets x 100
ü Return on Total Equity
Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.
Net income / Shareholder Equity x 100
ü Gross Profit Margin
Gross Profit Margin measures the Gross Profit in relation to the Net Sales.
Gross Profit / Net Sales x 100
Activity Ratios:- (Efficiency Ratios)
Activity ratios measure a firm's ability to convert different accounts within their balance sheets into cash or sales.
These include
ü Total Assets Turnover
Asset turnover measures how effectively a business is using assets to generate sales.
Net Sales / Total assets
Increasing Ratio is good for Bank and companies
Decreasing Ratio is bad for bank and companies
ü Fixed Assets Turnover
Fixed Assets Turnover ratio indicates how well the business is using its fixed assets to generate sales.
Net Sales / Fixed Assets
Increasing Ratio is good for Bank and companies
Decreasing Ratio is bad for bank and companies
Market Ratios:-
Market ratios measure investor response to owning a company's stock and also the cost of issuing stock.
These Include:
ü Dividend Per Share
Dividend per share is used to measure the income received by shareholders from each share owned.
Total Dividend / Numbers of share outstanding
Increasing Ratio for banks is good because it will attract more investors.
Decreasing ratio for banks is not good because the investors will not invest.
ü Earning Per Share
Earnings per share serve as an indicator of a company's profitability.
Net Income / Numbers of Share Outstanding
Increasing Ratio for banks is good because it will attract more investors.
Decreasing ratio for banks is not good because the investors will not invest.
ü Price/Earning Ratio
Price/Earning ratio is a valuation ratio of a company's current share price compared to its per-share earnings.
Market Value per Share / Earning per share
Increasing Ratio for banks is good because it will attract more investors.
Decreasing ratio for banks is not good because the investors will not invest.
mc090404146 Sabahat Bilal
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mano sham
Marina Khan
mc090405027 Mehmood Ahmad
Raees Shah
On 9/28/11, mc090405027 Mehmood Ahmad <mc090...@vu.edu.pk> wrote:
> *Thank you*
>
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