03-25-2009, 11:52 PM
Admin,
I wish to convey my reservation for moving this topic to 'economics' since it had a great bearing to the audits of all textile sector industries, cost accounting options, decision making process, capital maintenance and managing of return on capital employed in the era of crises.
We could identify the financial bottlenecks in detail and suggest financial remedies, modes of financing where collaterals (specially liquid ones) are already losing their worth, maximization of throughput and profit taking from managing of exposure in foreign currency based monetary assets and liabilities.
Interest rates are coming down, and after CJ's reinstatement we are seeing expansion in stock market even on cash based transcations. I guess market would be around 7.5k to 8.5k at 100index in a short span of time. When CFS would be allowed the market will take a jump and the lost wealth of the people will revert and all the cows will eventually come back to home. There is only a need to manage the resources and application properly and decide how to bifurcate the activity among operating, investing and financing activities. The one's who would be managing their issues at these fronts will be the winners. Example is of Nishat Mills Limited. The EPS declared carries a bigger portion of return on sale of investments whereby they made profit taking through investing activity in the times when operations were down and margins were not that good despite of devaluation trend of Pak rupee.
On their side, the auditors are required to have detailed knowledge of the whole sector in which their client works. The business risk, challenges, mitigating factors, process re-engineering and cost cutting, everything has bearing to cost/financial accounting and audit. I wonder if some economist would come up to identify, pinpoint and take measures to address these issues at industry level. The economists sitting in finance division and SBP have their own role at macro level but nothing has so far been done since last five years to revive the textile sector. We can however see some instances of words without actions. The export rebate has been eliminated. Nothing could be subsidized in post WTO concept. The R&D was already facing severe criticism and has vanished.
We witness that composite units are not disclosing their segment results under IAS 14 and IFRS 8. Very few of us know the reason behind that is only the threat of anti-dumping duty. People re-shuffle the costs from one segment to the other when they have to prove the things to the tribunal hearing the anti-dumping cases, mostly at Dubai and Brussels. This way they keep on transferring costs among the segments to prove the cost structures. This carries grave importance for auditors who have to opine on the accounts, as well as accountants who manage such things.
Now every one has to survive at his own. The economists of a country have very meager role to undo certain problems, where the crises is so severe that our Higher Education Commission (HEC) has already declared itself insolvent.
In my view this thread should have been at its place. We can discuss the issues with textile sector (the major foreign exchange earning sector) at length that can benefit the readers and create ideas of common benefit and interest.
However, these are my views and every one has a right to dissent.
Regards,
KAMRAN.
I wish to convey my reservation for moving this topic to 'economics' since it had a great bearing to the audits of all textile sector industries, cost accounting options, decision making process, capital maintenance and managing of return on capital employed in the era of crises.
We could identify the financial bottlenecks in detail and suggest financial remedies, modes of financing where collaterals (specially liquid ones) are already losing their worth, maximization of throughput and profit taking from managing of exposure in foreign currency based monetary assets and liabilities.
Interest rates are coming down, and after CJ's reinstatement we are seeing expansion in stock market even on cash based transcations. I guess market would be around 7.5k to 8.5k at 100index in a short span of time. When CFS would be allowed the market will take a jump and the lost wealth of the people will revert and all the cows will eventually come back to home. There is only a need to manage the resources and application properly and decide how to bifurcate the activity among operating, investing and financing activities. The one's who would be managing their issues at these fronts will be the winners. Example is of Nishat Mills Limited. The EPS declared carries a bigger portion of return on sale of investments whereby they made profit taking through investing activity in the times when operations were down and margins were not that good despite of devaluation trend of Pak rupee.
On their side, the auditors are required to have detailed knowledge of the whole sector in which their client works. The business risk, challenges, mitigating factors, process re-engineering and cost cutting, everything has bearing to cost/financial accounting and audit. I wonder if some economist would come up to identify, pinpoint and take measures to address these issues at industry level. The economists sitting in finance division and SBP have their own role at macro level but nothing has so far been done since last five years to revive the textile sector. We can however see some instances of words without actions. The export rebate has been eliminated. Nothing could be subsidized in post WTO concept. The R&D was already facing severe criticism and has vanished.
We witness that composite units are not disclosing their segment results under IAS 14 and IFRS 8. Very few of us know the reason behind that is only the threat of anti-dumping duty. People re-shuffle the costs from one segment to the other when they have to prove the things to the tribunal hearing the anti-dumping cases, mostly at Dubai and Brussels. This way they keep on transferring costs among the segments to prove the cost structures. This carries grave importance for auditors who have to opine on the accounts, as well as accountants who manage such things.
Now every one has to survive at his own. The economists of a country have very meager role to undo certain problems, where the crises is so severe that our Higher Education Commission (HEC) has already declared itself insolvent.
In my view this thread should have been at its place. We can discuss the issues with textile sector (the major foreign exchange earning sector) at length that can benefit the readers and create ideas of common benefit and interest.
However, these are my views and every one has a right to dissent.
Regards,
KAMRAN.