Preview

Comparison Between Two Major Textile Companies

Powerful Essays
Open Document
Open Document
2575 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Comparison Between Two Major Textile Companies
Executive Summary

In this report, I have discussed about the two major textile organizations that are AL-karam and Gul Ahmed textile mills. I have conducted a ratio analysis from the information gathered from their financial statements. In my study, I found out that AL-Karam is doing comparatively well from Gul Ahmed textiles as various ratios proved to be positive in terms of AL-Karam textiles.

Accounting Policies
Through accounting strategies and the methods of computation used in the preparation of this financial information are the same as those applied in the preparation of financial statements for the year ended June 30, 2011.
These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. Approved accounting standards comprise such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board as are notified under the Companies Ordinance, 1984, provisions of and directives issued under the Companies Ordinance, 1984. In case requirements differ, the provisions or directives of the Companies Ordinance, 1984 shall overcome operating assets.
Operating assets are stated at cost less accumulated depreciation and any identified impairment loss except leasehold land which is stated at cost. No amortization is provided on leasehold land since the lease is renewable at the option of the lessee. Depreciation is charged on reducing balance method at rates specified in the note 13.1. Full year’s depreciation is charged on additions except major additions or extensions to production facilities which are depreciated on pro-rata basis for the period of use during the year and no depreciation is charged on assets in the year of their disposal. Structures on leased retail outlets are depreciated over the respective lease term. Gains and losses on disposal of operating assets are included in profit and loss account.
Capital work-in-progress
Capital



Bibliography: http://www.gulahmed.com/investor_financial_information.html http://www.gulahmed.com/downloads/annual_reports/AnnualReport2012.pdf http://www.gulahmed.com/investor_financial_information.html http://download-reports.blogspot.com/2009/10/financial-analysis-ratio-analysis-of_2826.html http://www.gulahmed.com/downloads/annual_reports/Annual_Report_2009.pdf http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.alkaram.com%2Fpsl%2FHalf%2520Yearly%2520Financial%2520Information%2520December%25202011.pdf&h=zAQGDqpbt http://www.scribd.com

You May Also Find These Documents Helpful

  • Good Essays

    Property and equipment are stated at cost. Expenditures for maintenance and repairs are charged against operations. Renewals and betterment’s that materially extend the life of the assets are capitalized. Depreciation is computed on a straight-line basis over the estimated useful life of the related assets. For income tax purposes, depreciation is computed using the accelerated cost method (AICPA).…

    • 682 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The codification is effective for provisional and annual periods ending after September 2009. All current standards typical written communication is obsolete as define in FASB, the FASB Accounting Standards Codification and Hierarchy of Generally Accepted Accounting Principles. In this paper the reader will learn what the FASB Codification System is and the purpose for the FASB Codification. This paper will discuss the nine content areas located in the FASB Codification System.…

    • 482 Words
    • 2 Pages
    Good Essays
  • Good Essays

    With the accounting policies relating to Property, Plant, and Equipment adopted by the company is mentioned as Plant and equipment, leasehold improvements and equipment under finance leases are stated at cost less accumulated depreciation and impairment (if any). But, In this report there are not any impairments.Cost includes expenditure that is directly attributable to the acquisition of the item. In…

    • 1291 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Bus 700 Final Exam

    • 652 Words
    • 3 Pages

    The answers to all questions should be in your own English words. However, I expect you to refer to authoritative accounting and financial reporting literature (FASB - Accounting Standards Codification and IASB - Unaccompanied IFRS. For IASB pronouncements you may need to go to Murphy Library or other sources to read the accompaniments to IFRS. There are 3 copies of IFRS 2009 in on reserve at Murphy. Most of the information in this edition is still valid. When you refer to authoritative accounting and reporting literature, you must cite your references within your answers.…

    • 652 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Depreciation vs Depletion

    • 1442 Words
    • 6 Pages

    The concept and practice of depreciation and depletion play an integral part in a company 's cash flow and profit or loss statements. Depreciation, according to investopedia is a method of allocating the cost of a tangible asset over its useful life. Depletion is very similar to depreciation with very subtle differences, the first one being what is depreciated verses depleted. All assets (except land) are depreciated but the assets with natural resources are depleted. The methods on how depreciation and depletion are calculated vary as well. Each will be visited in this essay.…

    • 1442 Words
    • 6 Pages
    Better Essays
  • Better Essays

    IFRS Vs US GAAp

    • 1493 Words
    • 5 Pages

    The International Financial Reporting Standards are issued by the International Accounting Standards Board. These set of accounting standards are international in more than 110 countries and the state how certain transactions and other events should be reported in the preparation of financial statements. This set of standards’ purpose is to make international comparisons easier. This is not an easy task, though, because there is already set rules in every country.…

    • 1493 Words
    • 5 Pages
    Better Essays
  • Best Essays

    Ifrs and Gaap

    • 2481 Words
    • 10 Pages

    The United State is the latest country to agree on working towards converging it own accounting standard, US GAAPs (United States Generally Accepted Accounting Principles) with IFRSs (International Financial Reporting Standards). This report is about the evaluation of the convergence project to form a global standardized financial statement. IFRS is a set of international accounting standards stated how particular types of transactions should be reported in financial statements. However, U.S GAAP is a common set of accounting principles, standards and procedures that companies use to compile their financial statement. IFRS is issued by the International Accounting Standard Board (IASB) whereas U.S GAAP is issued by the Financial Accounting Standard Board (FASB). This report includes the objective and advantages of the convergence as well as the problems that may face to prevent the successful of convergence. Besides that, major milestones that have achieved and opinions about convergence project also written in this report.…

    • 2481 Words
    • 10 Pages
    Best Essays
  • Better Essays

    In order to answer this question one must first identify what the phrases “accounting standards” and “financial reporting” refer to. Accounting standards refer to the accounting methods used in an accounting system like the IFRS. Financial reporting refers to the representation of financial information, in order to be uniform the financial reporting must be based on a fixed set of rules, invole complete objectivity and no bias. The IFRS (International financial reporting standards) has indeed helped the uniformity of financial reporting. However, in some cases due to subjectivity involved, created by human judgment, the financial information reported may not be uniform. Furthermore the various methods permitted by the IFRS for the valuation of assets, inventory, and other components, create non-uniform financial reports.…

    • 1066 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Accounting Scandals 3

    • 10869 Words
    • 44 Pages

    Brennan N, McGrath M (2003). Financial Statement Fraud: Incidents, Methods and Motives, Working paper, University College Dublin…

    • 10869 Words
    • 44 Pages
    Powerful Essays
  • Good Essays

    This case deals with the concept of depreciation which can be defined as an accounting method utilized to allocate the costs of the fixed assets over their useful lifetime, which is expected to last more than one year. There are multiple applicable depreciation methods based upon the type and use of the assets such as: straight-line method, double-declining balance, units of production or accelerated depreciation methods which were replaced with the Modified Accelerated Cost recovery system (MACRS) after the Tax Reform of 1986. In analyzing the presented scenario for the Salem Corporation, I will be utilizing the “Modified Accelerated Cost Recovery System” (MACRS) to calculate the deprecation amount that can be generated in 2010 for the property…

    • 211 Words
    • 1 Page
    Good Essays
  • Powerful Essays

    Account Assignment 2

    • 1521 Words
    • 7 Pages

    This report is providing an analysis and evaluation of the current and previous profitability, liquidity and financial stability of Elite Textile Importers Pty Ltd for the years 2010 – 2012, it also given the information about trend, horizontal and vertical analyses, it also provides all calculations about this business and all the calculation can be found in AFB assign calculation.the business is have trouble with funding growth, and debtor keep increasing for that 3 years period and a business has a relatively poor rate of return on asset.The current and quick ratio was decreased in 2012 to 5,02 times and 2,66 time but the business still be able to pay its debt, there is a problem with account receivable because the business still difficult to collect the money from debtor which caused the percentage still increasing and it hard for business to freeing inventory The business is considered good, because low amount of debt, the increasing in time interest earned that help the business to pay off its interest and debt, the asset turnover is improved but still lower than the industry standard which mean a business is not work efficiency.…

    • 1521 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    The clothing companies fall under retail industry since it deals with sales of goods and services to the customers. The retailing industry is further divided into discount stores, department stores, demographic stores, seasonal stores and specialty stores. Department Stores refer to large companies that put forward vast variety of goods and services. The Discount stores offer a broad collection of goods and services even though they compete primarily on price. Demographic stores aim at a particular section of the market (Shankar and Bolton 2004). For instance, the high-end retailers focus mainly on the rich people. The retailing industry is also segmented into two categories based on what the company deals with that is, hard and soft categories. Clothing falls under the soft category of the retailing industry. In this category, the business operators deal with apparel, clothing, and other fabrics. This essay will review the income statement and balance sheet of Excellence Clothing Company; discuss the possible causes of decline in profit in 2014. Afterward, it will give the possible…

    • 2077 Words
    • 9 Pages
    Better Essays
  • Powerful Essays

    It has been a pleasure to be Mr. Ali Dhamani’s students. I would like to thank him for giving me the chance to work as a Financial analyst and analyze the financial statements of Gul Ahmed Textile.…

    • 4008 Words
    • 36 Pages
    Powerful Essays
  • Satisfactory Essays

    3. A General Analysis of the Turkish Textile Industry under the Manufacturing from 1980 to 2013…

    • 4440 Words
    • 25 Pages
    Satisfactory Essays
  • Good Essays

    MicroEconomics

    • 1566 Words
    • 7 Pages

    with a lease being classified as capital, the lessee records it both as an asset and liability at the amount equal to the present value of the minimum lease payment over the lease term. The asset must depreciate in a manner consistent with the…

    • 1566 Words
    • 7 Pages
    Good Essays