Table of Content
ACKNOWLEDGMENT
DEDICATION
BACK GROUND OF STUDY
EXECUTIVE SUMMARY
HISTORY OF INDUSTRY IN PAKISTAN
SUPER ASIA HISTORY
VISION, MISSION AND VALUES
SUPER ASIA PRODUCTS AND SERVICES
ORGANIZATIONAL STRUCTURE
SUPER ASIA KEY PERSONS
SUPER ASIA INTERNSHIP EXPERIENCE (LEARNING)
SWOT ANALYSIS
PEST ANALYSIS
MARKET ANALYSIS
PRODUCT LIFE CYCLE
FINANCE DEPARTMENT (FINANCIALSTATEMENTS)
RATIO ANALYSIS
RECOMENDATION
CONCLUSION
UNIVERSITY OF GUJRAT
ACKNOWLEDGMENT
W
e first of all indebted to the lord of our life & of everything in the universe
for his help in project. The task was impossible without the help of Almighty
Allahs help. We are also thankful to our parents for their tiresome efforts in
bringing us to this stage.
We are very much thankful for the supervisors of our institutes Respected
Rector Prof. Dr. Mohammad Nizamuddin.
We wish to express our profound gratitude & sincerest appreciation to our
project
supervisor, Mr. Faisal Hameed, for his persistent guidance,
constructive criticism, friendly discussions & continuous encouragement
throughout the design phase. Indeed, without her kind guidance I may not be
able to even start this project which gave us a kind of enthusiastic feelings
towards the accomplishment of our project.
We are also grateful to the owners and employees of Super Asia Pvt. Limited.
I am grateful to my respected MR. Umer Farooq (Finance Manager) Of
Super Asia who has guided me in each and every step of this project. May
ALLAH give her the reward which she deserves? I am also grateful to all
those members who are related to Super Asia Motors Ltd
We are thankful to our group members in Super Asia for their kindness,
inspiration & spiritual support, which enabled us to complete this project.
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DEDICATION
I dedicate my projects efforts to my PARENTS and respected
TEACHERS who taught and hold my hands on every step of my life.
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Every successful company and organization defines its visions and mission
and makes the strategies and rules to achieve these missions and visions. To
achieve these visions and missions the organizations and companies have to
fulfill the objectives so that the long term visions and missions can be
achieved. Same like that Super Asia also have defined its vision and mission
is here quoted below:
VISSION
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Our foremost aim is to think big, be the pace setter and modernizer. Since
1972, being the market leader in washing machines, we have concrete plans
to replicate our best practices in every of our offerings, across the region. It
is the VISION that every employee of the organization is clear about.
MISSION
Super Asia uses the best prevalent tools to win and maintain the satisfaction
trust and loyalty of its valued customers. Quality, Delivery and Innovation are
the core elements of our philosophy. Stake holders at every level strive to
maintain the status quo of the company, to deliver the best. Continues
struggle with commitment is technique to accomplish this MISSION.
VALUES
Our brand promises quality at an affordable price encapsulates our
commitment to intimately understand the needs and aspirations of
consumers in order to deliver innovative solutions. These capabilities are
firstly, by understanding people and secondly, technology integration and
product design. We put our end users front and center of product innovations
starting with understanding their needs and aspirations. We use best-in-class
research facilities and agencies to validate and ensure that our product
innovations are designed around peoples needs and aspirations, easy to
experience and advanced.
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To cater the needs of its international customers Super Asia exports its
products to South Asia, Middle East and other foreign countries.
AUTOMOBILES DIVISION
Super Asia Motors Private Limited.
Super Asia has succeeded in providing motorcycles which are skillfully
designed, keeping in view economy, quality standards and comfort. The
motorcycles are rust free with high suspension and are shock absorber to
ensure lifetime performance. SAM has also recently started manufacturing
rickshaws, (3 wheeler, 200cc 4 Stroke, CNG auto) with the name of Tuk Tuk.
The new and improved rickshaws from Super Asia have been brilliantly
designed with attractive color combinations, hence catering to the
customary needs of the society. The rickshaws have been designed with the
element of reliability, maximum seating capacity, and are also environment
friendly.
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FOOD DIVISION
MDS Foods Private Limited ( Hardees).
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PRODUCTS
Super Asia offers a lot of home appliances for its valuable customers. Super
Asia is a leading manufacturing company in Pakistan and is competing with
foreign companies with its weapon of quality and customer satisfaction.
Super Asia is the biggest home appliances producer in Gujranwala and offers
leading home appliances. They offer with lot of home appliances which
compete with all foreign products due to its fine quality, standards and
customer satisfaction. Following are the products which Super Asia offers in
the home appliances products:
Air Conditioners
Washing Machines
Fans
Room Coolers
Water Dispensors
Geysers
Microwave Ovens
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Microwave Oven
Defrost Setting.
Painted Steel Cavity.
Push Button Door.
Painted steel cavity.
Air Conditioner
New Wall Mounted Series.
Built to the highest international standards.
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Fans
All types and with large number of models.
Quiet Operation.
Specially designed blades.
Even air throw & Revolving grill.
Water Dispensers
(Large number of models)
New & easiest way to get hot & cold drinking water with water guard.
New striking design.
Low energy consumption.
Easy to install
Attractive low price.
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Motor bikes:
(Currently Two models available.)
CD 70
CD 78
Comfortable seat
Economical
Less petrol mileage
Rickshaw:
Less CNG mileage
Environment friendly.
Comfortable.
High Quality Engine.
SERVICES:
The best Feature of super Asia is also providing after sale services. That is
big competitive advantage. Following services are also provided by Super
Asia Company:
To provide customer prompt, quality and reliable services at their
doorstep Super Asia has a largest after sales service network
throughout the country.
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ORGANIZATIONAL STRUCTURE:
Super Asia is market leader in Washing Machine, Air Cooler and Geyser, till
today, given the presence of numerous local and foreign brands in Pakistani
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FINANCE DEPARTMENT:
Super Asia Private Limited Basically divided into two parts
Super Asia M.Ds Pvt. Ltd.
Super Asia Motors Bikes Pvt. Ltd.
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SECURITY DEPARTMENT:
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PRODUCTION DEPARTMENT:
Super Asia is specially an production base industry so foucs on production
department. Raw material is passed through the different Places to ensure
the quality of the products.
First Raw material are passad the quality qontrol department then its given
to assembly line where quality is properly checked and then Its converted To
finish goods. Production department Include the following sub Departments:
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Tool Shop
Molding Shop
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Sheet Shop
Motor Body Shop
Motor Winding Shop
Assembly
Wheel shop
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(Chairman)
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AUDIT COMMITTEE
Mr. Zafar Iqbal Cheema
Mr. Syeed Bukhari
Mr. Manzoor
(Chairman/Member)
(Member)
(Member)
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PANTHAR TYRE
HAJI GABA
GREEN FIBER
ALPHA ENGINEERING WORKS
PAKISTAN ACCUMULATOR
SAEED ENGINEERING
S.T HIGH-TECH
HASNAIN ENGINEERING
KENT MOTORS
RAO TECH
ALPHA RUBBER AND PLASTIC WORK
MUGAL ENGINEERING
PAK AUTOS
LUBRICO
TOSHI TEK
PAK EURO ENGINEERING
PRINTECH
NABI SONS
KANSAI PAINTS
M. YOUSIF ENGINERRING
LAL DIN
A.S INDUSTRIES
DIAMOND TYRE
SHAFI SONS
BANKERS
Super Asia is dealing in different banks for vender payments purpose through
online & demand draft system. Basically some Banks Names thats are dealing
in Gujranwala are Mentioned Bellow
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During my stay at Super Asia Pvt. Ltd, I have been work on basically 4
softwares in which three softwares are Primary uses for posting Entries
Power Accounting
Microsoft Dynamics Enterprise Resource Management AX 9 (ERP)
Finance Manager
One software is Secondary Importance that is
Microsoft Ofce
Power Accounting & Finance Manager is editable Software and Microsoft
Dynamic ERP is Non-Editable. By Chance If any mistakenly Debit to Vender
account So Vender Has Issue A credit note to Offset Your Account..
POSTING AN EXPENSE:
During my stay at Super Asia Pvt. Ltd I was also get an experience that how
to post the expense in POWER ACCOUNTING INVENTORY SYSTEM. In this
system I became familiar with the Goods receipt Notes, Goods Issue Notes,
Posting of entry made or goods in the ERP system.
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REMINDER LETTERS
I also learn about the reminder letter which are preparer for the remind of
venders for the general Leger If any problem persist in account of both and all
how the necessary detail which are require for that are provided in the invoice
And also reminder letter for dealers for payment reminder. e.g. product
specification, date of delivery and also mention the amount which is paid and
balance of payment for which we are sending the letter.
BANK RECONCILATION
I learnt how to make bank reconciliation as I often assigned to reconcile the
company financial statements with different companies ledger and banks
Statement and with company CBS (CASH BANK STATEMENTS).
COMPANY ANALYSIS
SWOT ANALYSIS:
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STRENGHT:
High Financial Resources.
The company has built up goodwill in the market of Pakistan, from a
very longtime.
The company has the largest market share throughout the country in
the Washing Machine industry.
Brand name of Super Asia is known to almost every person in the
country and is very famous in home appliances industry.
The company deals in all sorts of home appliances, like Washing
Machine, Spinners, Air Conditioners, Fans, Geysers, Water Dispensers,
Room Air Cooler , Microwave Oven and Cooking Range.
Super Asia is also the strategic partner of Procter & Gamble. The
strategies of Super Asia are like Procter & Gamble.
Continuous achievement of FPPCI exports Trophy.
Super Asia is exporting its products to various regions across the globe
mainly markets like Africa, Middle East and Asia.
The company is having a number of old employees who are committed
and loyal with the company.
Super Asia retains its employees by offering benefits like old age
benefits, disability benefits, disease benefits, medical facilities in the
company hospital and advance pay etc.
The company also has won the Merit Trophy 2005-2006 of Federation of
Pakistan Chamber of Commerce & Industry presented Shaukat Aziz
(Prime minister of the time) to the Managing Director of Super Asia.
WEAKNESSES:
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OPPERTUNITIES:
Entrance new Market in Different Asian Countries.
Addition New Product Line.
Due to Government policy of low export duty, Super Asia has
opportunities to increase their exports.
Due to the strong financial position of the company, the management
can use the latest technology in their products.
They can use the brand name in the international market to increase
their sales of Fans like their Washing Machines.
As the company is financially very strong, so it can use electronic and
print media to increase their sales.
They should invest in the SBUs like Air Conditioner and Microwave
Oven which have low market share and very low growth rate.
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THREATS:
Chinese Technology is the very big threat to Super Asia.
Gujrat Fans Industry is Also a big Threat To Super Asia.
Other competitors of Super Asia are offering the same products at
relatively lower prices.
A large number of new incoming companies are increasing the
competition in the market.
Stylus Washing Machine Company is investing a heavy budget in the
promotion of their products.
Current Power & Electricity crises are very big hurdle for the
manufacturing unit of the company. Due to the shortage of electricity
the company may be unable to meet the orders.
The complaints in some particular SBUs, like Motorcycles is a big threat
to the brand name of the company.
PEST ANALYSIS
A scan of the external macro environment in which the firm
operates can be expressed in the following factors;
Political
Economic
Social
Technological
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POLITICAL FACTORS:
Pakistani government is somehow stable in these days and
focusing on the foreign trade. Super Asia is taking advantage of
this move by government and is trying to increase their exports.
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ECONOMIC FACTORS:
Super Asia plays an important role for economic growth by
contributing to the economy of the country.
The cost of production includes wages of workers, salaries to the
staff, purchases, utilities, carriage inward and outward, etc.
The company offers a variety of products for different classes of
customers. For example, good quality and a bit expensive
products for higher class and cheaper products for middle and
lower class customers.
Some SBUs like washing machine and fans are at their boom
while others like motorcycle, oven, AC, etc are at their growth
stage. It never happened that anyone of Super Asias product
went into its recession stage.
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SOCIAL FACTORS:
The salaries and wages of the workers and management are not
satisfactory so the income distribution factor is not satisfactory.
Super Asia is funding many NGOs and welfare organizations in
the whole country.
Super Asia has the honor of being the first and only local home
appliances company to sponsor an international cricket series.
The company is running a hospital Mian Muhammad Din
Memorial Trust Hospital for the welfare of its employees as well
as the people of the near vicinities.
The company is providing various types of home appliances
which are helping in improving the life style of the people.
The company is providing models in a variety of fashion which
can be used differently at different places.
TECHNOLOGY FACTORS:
The company is having a computerized lath machine which helps
in reducing labor cost and time needed to produce a dye.
Due to technological improvements many items are available at
lower prices from China and Super Asia is taking full benefit from
it.
The manufacturing department also has different types of dyes
for different models or shapes of washing machine and fan.
A tool shop also operates within the factory premises, which
manufactures its own tools to be used in production.
Latest technology is being used by the company for motorcycle
engine and air conditioner machinery.
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MARKET ANALYSIS
BOSTON COSULTING GROUP ANALYSIS
The business portfolio is the collection of businesses and products that make
up the company. So in Super Asia every product is the business portfolio for
the company. The best business portfolio is one that fits the company's
strengths and helps exploit the most attractive opportunities.
The company must:
) Analyze its current business portfolio and decide which businesses
should or less investment, for example in Super Asia some of the
business portfolio need more investment like Air Conditioner,
Microwave Oven and some business portfolios like Washing
Machines need less investment.
Develop growth strategies for adding new products and businesses
to the portfolio, while at the same time deciding when products and
businesses should no longer be retained. Super Asia has made the
strategy for growth and adding new products; like Insulation Sheet.
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Using the BCG Box (an example is illustrated above) a company classifies all
its SBU's according to two dimensions:
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STARS
Stars are high growth businesses or products competing in markets where
they are relatively strong compared with the competition. Often they need
heavy investment to sustain their growth. Eventually their growth will slow
and, assuming they maintain their relative market share, will become cash
cows. Here the motorcycle and fans of Super Asia best fit because their
growth is high but they still need high investment to sustain their growth.
CASH COWS
Cash cows are low-growth businesses or products with a relatively high
market share. These are mature, successful businesses with relatively little
need for investment. They need to be managed for continued profit - so that
they continue to generate the strong cash flows that the company needs for
its Stars. Washing Machines of Super Asia comes under this head because
they are earning a lot for the company and need very low investment.
QUESTION MARKS
Question marks are businesses or products with low market share but which
operate in higher growth markets. This suggests that they have potential,
but may require substantial investment in order to grow market share at the
expense of more powerful competitors. Management have to think hard
about "question marks" which ones should they invest in? Which ones
should they allow to fail or shrink? Water Dispensers, Geyser, Room Air
Cooler and Safe Lines have very low market share but they operate in higher
market growth. Super Asia should think about the Water Dispenser, Geyser,
Room Air Cooler and the Insulation Sheet because they can earn a lot for the
company, if investment is made in these business portfolios.
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DEVELOPMENT STAGE:
The life cycle concept may apply to a brand or to a category of the product.
Its duration may be as short as a few months for a fad items or a century or
more for product categories. Product development is the incubation stage of
the product life cycle. There are no sales and the firm prepares to introduce
the product. As the product progresses through its life cycle, changes in the
market mix usually are acquired in order to adjust to evolving challenges and
opportunities.
INTRODUCTION STAGE:
When the product is introduced, sales will be low until customers become
aware of the product and its benefits. Some firms may announce their
product before it is introduced, but such announcement also alert the
competitors and remove the element of surprise. And Super Asia also uses
this strategy that they announce the product before the introduction and
their view about this thing is that customers become aware of the product
before its introduction in the market. Advertising costs are typically high
during this stage in order to rapidly increase the customer awareness of the
product and to target to the early adopters. When Super Asia was
introducing its Motorcycle they were advertising a large. During the
introductory stage the firm is likely to incur additional costs associated with
the initial distribution of the product. These higher costs coupled with a low
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Product:
At this stage one or few products which are differentiated are introduced.
Safe Line of Super Asia is at this stage. And somewhat Motorcycle is also at
this stage.
Price:
Usually at this level the prices are high to cover the cost of the product. But
sometimes low prices are set for the penetration in the market and gain the
high market share. Super Asia usually uses the penetration strategy at this
stage so that they can attain the high market share. Here the prices of Safe
Line of the company are high.
Place:
Distribution is selective at this stage and scattered as the firm commences
implementation of the distribution plan.
Promotion:
Super Asia set a heavy budget at the introduction stage of the product for its
advertisement. At this stage heavy advertisement is necessary.
GROWTH STAGE:
It is the stage of the product life cycle in which a products sales start
climbing quickly. It is a period of rapid revenue growth, sales increases as
more customers become aware of the product and its benefit and its
additional market segments are targeted. Once the product has been proven
a success and customers being asking for it, sales will increase further as
more retailers become interested in carrying it. The marketing team may
expand the distribution at this point. Motorcycle and Ovens of Super Asia are
at this stage because their sales are increasing. When the competitors enter
the market, often during the later part of the growth stage, there may be
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Product:
New product features and packaging options; improvement of product
quality. Motorcycle, Fans, Water Dispensers and Air Coolers are at the growth
stage. Their sales are improving.
Price:
Maintained at the high level if demand is high, or reduced to capture
additional customers. Here the company reduced the prices so that more
customers can attract towards Super Asia.
Distribution/ Place:
Distribution becomes more intensive; trade discounts are minimal if resellers
show a strong interest in the product. The company is providing more
inventory to its distributors.
Promotion:
Increase advertising to build brand preferences. The management is making
strong promotional strategies for Motorcycles, Fans, Water Dispensers and
Air Coolers.
MATURITY STAGE:
The stage in the product life cycle in which sales growth slows or level off, it
is the most profitable stage while sales continue to increase in this stage,
they do so at a slower pace. Because brand awareness is strong, advertising
expenditure will be reduced. Competition may result in decrease market
share and prices. Super Asias Washing Machines and Spinners are at the
maturity stage and earning a lot of profit for the company and their
advertisement cost is also very low. The competing products may be very
similar at this point, increasing the difficulty of differentiating the product.
There are lot of companies in the market, domestic and foreigners. The
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Product:
Modifications are made and features are added in order to differentiate the
product from competing products that may have been introduced. The
Washing Machine sand Spinners of the company are at maturity stage.
Price:
Possible price reductions in response to competition while avoiding a price
war. Super Asia has set the prices of Washing Machines and Spinners at fare
place.
Place/ Distribution:
New distribution channels and incentives to resellers in order to avoid losing
shelf space. The company is distributing their products in a large and making
the new dealers in the market.
Promotion:
Emphasis on differentiation and building of brand loyalty. Incentives to get
the competitors customers to switch. The company is advertising a lot to
attract the customers towards their products.
DECLINE STAGE:
The product life cycle stage in which a products sales decline and market
becomes saturated. The product becomes technologically obsolete or
customer taste changes. If the product has developed brand loyalty, the
profitability may be maintained longer. Such as the Washing Machines of
Super Asia is making the profits a longer. Unit cost may increase with the
declining production volumes and eventually no more profits can be made.
During decline phase, the firm generally has three options:
Maintain the product in hopes that competitors will exit, reduce costs and
find new uses of for the product.
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Price:
Prices may be lowered to liquidate the inventory of discontinued products.
Prices may be maintained for continued products serving a niche market.
The company has lowered the prices of Air Conditioners and Ovens to make
some share in the market.
Place/ Distribution:
Distribution become more selective, channels that no longer are profitable
are phased out. The distributions of these products of the company are very
low.
Promotion:
Expenditures are lower and aimed at reinforcing the brand image for
continued products. The company is making lower advertising for these
products but they should enhance the budget of these products to increase
the market share.
NOTES
2012
PKR
Authorised Capital
50,000 (2011: 50,000) ordinary
50,000,000
50,000,000
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34,200,000
1,263,706
25,647,268
799,169
35,028,946
253,878,625
289,686,740
221,959,305
CURENT LIABILITIES
Trade and other payables
280,382,438
331,857
280,477,709
363,993,168
--
528,084,282
ASSETS
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39,445,917
At W.D.V
10
11
104,283,334
13
305,688,724
CURRENT ASSETS
Stock in trade
251,441,552
Trade debtors
156,552,969
76,902,123
14
Advances, Deposits & Prepayments
35,961,666
TOTAL ASSETS
689,475,470
16
160,055,288
15
3,100,144
453,207,641
528,084,282
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2013
PKR
PKR
Sale
804,030,104
17
825,044,868
18
Gross Profit
81,667,621
82,032,651
Administrative Expense
23,209,472
21,211,291
19
20
54,109,998
49,097,466
21
22
(11,847,359)
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(1,075,251)
Less: WWF
(324,779)
(430,100)
SHARE CAPITAL
TOTAL
UN-
PKR
PKR
PKR
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34,200,000
_
(20,301,946)
11,749,214
48
34,200,000
(8,552,732)
9,816,438
STATEMENT OF COMPLIANCE
These Statements have been prepared in accordance with approved
Accounting standard, as applicable in Pakistan. Approved Accounting
Standards comprise of Accounting and Finance reporting for Medium Sized
entities (MSEs) issued by the Institute of Charted Accountants of Pakistan
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BASIS OF PREPARATIONS
These financial statements have been prepared under the historical cost
conversion.
FINANCE LEASE
The lease that transferred substantially all risks and rewards incidental to
ownership is classified as finance leases. Assets subject to finance lease are
stated at the lower of present value of minimum lease payments under the
lease agreements and the fair value of assets.
Each lease payment is allocated b/w the liability and finance charges so as to
achieve a constant rate on the balance outstanding. The interest element of
the rental is charged to profit over the lease term.
Assets acquired under a finance lease are deprecated over the useful life of
the asset on a reducing balance method along with other assets.
Depreciation on addition to leased assets is charged from the year in which
the asset acquired while no depreciation is charged for the year in which the
asset disposed off.
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Stock in Trade
manufacturing expenses.
Finish Goods
BORROWINGS
Loans and borrowings are recorded at the proceeds received. In subsequent
Periods, borrowings are stated at amortized cost using the effective yield
method. Finance costs are accounted for on an accrual basis and are
included in creditors, accrued and other liabilities to the extent of the
amount remaining unpaid.
PROVISION
Provision are recognized when the company has a present obligation as a
result of past event which it is possible will result in an outflow of economics
benefits and a reliable estimate can be made of the amount of the
obligation.
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REVENUE RECOGNISTION
Revenue recognized on dispatch of goods to the customers.
TRADE DEBTORS
Trade debts are carried at original invoices amount less as estimate made for
doubtful debts based on review of all outstanding amounts at the year end.
Bad debts are written off when identified.
BORROWING COSTS
Mark up, interest and other charges on long-term borrowings are capitalized
up to the date of commissioning of the related plant and machinery, acquired
out of proceeds of such long-term borrowings. All other markup, interest and
other charges are charged to profit & Loss accounts.
TAXATION
CURRENT:
Provision for current taxation is based on taxable income at the current rates
of taxation after taking into accounts available tax credits and rebates, if any
or one percent on turnover(as minimum tax), whichever is higher.
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2012
2013
PRK
PRK
34,200,000
95,271
1,524,000
327,707
1,619,271
1,050,102
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(508,245)
(954,831)
(331,857)
(95,271)
779,169
516,240
860,400
1,376,640
95,970
Finance Charges:
Payable within one Year
699
184,383
81,231
265,614
699
Dealers securities:
Security from Motor Cycle Dealers
53,802,680
Security from Warranty Dealers
98,000
35,028,946
34,930,946
98,000
53,900,680
_
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168,058,625
198,987,185
Secured Creditors
35,763,086
37,375,360
1,136,726
363,993,168
280,373,933
10,849,813
Stock In Trade
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247,601,552
Finished Goods
14,669,643
3,840,000
305,688,724
251,441,552
Trade Debtors
160,055,228
156,552,969
226,124
285,748
15.1
25,504,399
2,798,370
35,961,666
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14,897,474
(8,250,449)
6,647,025
164,034
Cash at Bank
2,923,969
9,087,420
3,100,144
9,251,454
Sales:
_
Revenue from Sales
804,030,104
_
825,044,868
Cost of Sales:
Raw Material Consumed
699,551,877
659,872,194
18.1
5,326,218
2,352,149
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55,982,404
743,014,228
Administrative Expenses:
Directors Remuneration
3,360,000
4,760,000
433,384
523,854
632,586
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1,192,010
127,098
210,335
Fuel Charges
596,376
734,273
656,855
442,599
Depreciation
965,776
1,568,099
23,209,472
21,211,291
8,668,238
3,642,639
11,841,655
5,123,267
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5,493
30,900,526
27,886,175
Other Income:
Insurance Claim Recovered
171,103
--
--
417,188
Financial Expenses:
Bank Charges
833,971
417,115
11,355,925
11,847,359 DATE OF AUTHORIZATION:
RATIO ANALYSIS
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CURRENT RATIO
Current ratio measures the company ability to meet its short term obligation
through its short term assets. Current ratio of the Super Asia Motors Pvt.
Limited is as follow:
CURRENT RATIO
LIABILITIES
CURRENT
ASSETS/CURRENT
2012
= 545,746,219 / 364,325,024
= 1.4979
2011
= 453,207,641 / 280,477,709
=
1.616
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LIQUID RATIO
LIABILITIES
LIQUID ASSETS
CURRENT
2012
= 240,057,495 / 364,325,024
= 0.659 : 1
2011
= 201,766,089 / 280,477,709
=
0.72 : 1
A measure of the amount of liquid assets available to offset current debt (Cash
+ Accounts Receivable + deposits / Current Liabilities). We not include the
inventory because the inventory is not easily convertible into cash. A healthy
enterprise will always keep this ratio at 1.0 or higher. But in this companys
position is satisfactory.
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2012
= 722,362,483 / 278,565,138
=
2.6 Times
2011
= 743,012,217 / 251,441,552
=
2.95 Times
Inventory turnover ratio indicates that how many times company converts its
inventory into finish goods. In 2012 companys efficiency decrease as
compare to 2011. They have may be Changing in Policy for Process of finish
Good.
2012
=
804,030,104 /
(156,552,969 + 160,055,228)
= 2.5 Times
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5.3 Times
This ratio indicates how many times company receives the money from the
customer in 2012 company decreased the recovery times as compare to 2011.
They have changing their policy of recovery to Debtors.
RETURN ON ASSETS
Total Assets
2012
= 9,816,438 / 689,475,470
=
0.0142 %
2011
= 11,749,214 /
528,084,282
= 0.0222 %
In 2012 company was earning 0.0142 % by every 100 Rupees of assets but in
2011 this ratio was Increase as compare to 2012. In 2011 the company utilizes
the assets More efficiently unless 2012.
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2012
= 81,667,621 / 804,030,104
=
10.15 %
2011
=
=
82,032,651 / 825,044,868
9.94 %
It measures the difference between what it costs to produce a product and what
you're selling it for. In 2012 GP increased as compare to 2011.
100
2012
= 9,816,438 / 804,030,104
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LIQUIDITY POSITION
Liquidity ratio is for the firms ability to meet the short term obligations. It
shows the firm financial position that the firm has insufficient cash for the
short term payments to the creditors as compare to 2011.
The only current ratio of the company is also satisfactory. The Acid test ratio
shows the more liquidity position of the assets. This is also not meeting the
requirements of the company.
LEVERAGE RATIOS
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COVERAGE RATIO
This shows that either the financial charges (interest) is met by the EBIT or
not. It shows how many times the companys EBIT is fulfilling the financial
charges.
The interest coverage ratio is in 2012 increased & 2011 is decreased. It
means EBIT is fulfilling the financial charges of the company but not with
very good position.
The cash coverage of interest ratio shows that how many times the EBIT +
Depreciation meet the financial charges of the company this ratio trend is
as2.54:1 in 2011 but in next year remained same i.e. 2.19:1 is satisfy than
interest coverage ratio.
ACTIVITY RATIOS
Activity ratio shows that how the firm used the assets in the operation of
business. Trend of activities ratio is fluctuating. In 2011 5.3 times A/R are
generated but this ratio is decreased in 2012 2.5 Times. It means the
account receivables are converted into cash in 31days. That is very better for
the company to collect from their customers.
The inventory turnover show the ratio as in 2011 is 0.0222 it was decreased
in 2012 up to 0.0142 that is very bad position for the company it means
company is taking more time to convert its inventory into Cash.
So, Activity ratio shows that the management is recovering the receivable
efficiently but the inventory turnover and days are not efficient the
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PROFITABILITY POSITION
The trend in the profitability of the company is 1.220% in 2012, 1.424% in
2011. Profit margin increased in 2011 but decreased in 2012.The reason of
net profit decreasing is that the sale has increased in 2011 but expenses
decreased and increase in the financial charges that directly effect on the
Net profit.
Return on investment measures overall effectiveness & earning power of
invested capital, this ratio is in decrease from 2012 (0.0142%) to (0.0222%
in 2011). The reason is simply that due to other investment; reduce the
effective utilization of total assets. Return on Equity is also in decreasing in
2012 as compared to 2011.
In brief we can say that the company performance fluctuating due to some
reasons but in well position the company should take prompt action about
the performance and the profitability to lead the Production sectors.
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CONCLUSION
Its a period of Globalization, any organization or institute who ignore the
element of globalization automatically kick out from the market. Only those
can be surviving who compete this global market perfectly. There is a
Survival of the fittest.
So the Super Asia Pvt. Ltd has the opportunity to survive the global
market because it has the better good will the can capture all the country
and also stand in global market.
Super Asia is also faces a tenor in which there is both opportunities and
threats for it to be able and survive and growth. But many of the challenges
that shall occur will be outside of the control of the company.
Organization exists when two or more people work towards achieving
common goals. An organization can never be better than the people it hires.
Hence we have to get the best to be the best because the performance of
the employees reflects the companys image and standing in the market.
Out of the three Ms i.e.
Man
Money
Machine
Hiring employees is not the sole objective rather the primary goal is to
devise a tool that can help the organization attract, maintain, retain and
motivate them enough to give their best to the organization. Training and
development is therefore the first step towards success. Better the quality
of the employees better the performance of the company.
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References
www.Super Asia Motors And MDs Private Limited.com
www.scribd.com/doc/13377121/Internship-report-onsuper-asia
www.scribd.com/doc/24419517/Accounting-
and-Costing-System-analysis-at-Super-AsiaFans
http://www.superasia.biz/
super Asia Audit report
http://adeelkz.blogspot.com/2009/04/download-superasia-internship-report.html
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