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
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