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Account receivable management An entity has a number of claims to the future inflows of cash. These claims are usually classified as Account receivables and notes receivable on the financial statement. The primary claim that most entities have comes from selling of merchandise or service on account to customers, referred as trade receivables with promising to pay within a limited period of time such as 30 days. As the Attock cement company 2008 Trade debts considered good Net sales 49799 4991451 2007 19897 4560402
Calculation of the ratios is done below Days Sales in A/R = gross receivables/ Net sales/365
2008 49799 4991451/365 =3.46 days Credit terms of the company
2007 19897 4560402 =1.59 days
Attock cement credit policy is strongly controlled as
A/R turnover = Net Sales/Average Gross A/R 2008 4991451 49799 = 100.2321 2007 4560402 19897 =229.2005
Inventory management 2008 Stock in trade Cost of Goods Sold 409498 3887147 2007 276428 3005726
Days sales in inventory = ending inventory/COGS/365 2008 409498 3887147 = 38.45154 days Interpretations Inventor turnover = COGS/ AVERAGE INVENTORY 2007 276428 3005726 = 33.568 days
2008 3887147 409498 = 9.492469 times
2007 3005726 276428 = 10.87345 times
2008 SHARE CAPITAL AND RESERVE Authorized capital of 125,000,000 ordinary shares Of Rs.10 each Issued, subscribed and paid-up capital unappropriated profit Hedging reserves Total 721629 2784754 25196 3531579 721629 2674462 (47) 3396044 2007
NON-CURRENT LIABILITIES Liabilities against assets subject to fiancé lease Long term murabaha Deferred taxation 622500 736449 1358949 109 822500 554213 1376822
CURRENT LIABILITIES Trade and other payables Accrued markup Current maturity of liabilities against assets Subject to finance leases Cuurent maturity of long term murabaha Total 767579 12731 109 200000 980419 5870947 819785 14413 1076 177500 1012774 5785640
Attock Cement Company has capital structure of 60% equity and 40% debt
Capital budgeting Inventory turnover rate:
The inventory turnover rate has remained the same. The inventory has increased over the year. But the inventory turnover rate has remained same as of the previous year due to the fact the cost of good sold has also been increased. This might be due to the following facts • The cost of raw material has increased • • • Inflation High cost etc. Cost of labor has increased
Receivable turn over rate:
The receivable turn over rate has decreased significantly. This might be the fact that receivables has increased significantly. The amount of receivables has almost tripled as compared to last year. The increase in receivables shows that the company has introduced or changed its policies. Following could be the reason for the increase in the receivables.
Attock Cement Pakistan Ltd.
Attock Cement Pakistan Limited (ACPL) is a public limited company, listed on the Karachi Stock Exchange since June 2002. Main business of the Company is Manufacturing and Sales of Cement. ACPL, is part of the Pharaon Group, which in addition to investment in Cement industry has diversified stakes in Pakistan mainly in the Oil and Gas Sector.
To be the leading organization, continuously providing high quality cement, excelling in every aspects of it’s business and to remain the market leader in the cement industry.
To be a premier and reputable cement manufacturing company dedicated to become industry leader by producing quality products, providing excellent services, enhancing customer satisfaction and maximizing shareholder’s value through professionalism and dedicated team work.
Accounts Receivable Management PROCEDURE . Financial Documentation and Reporting
1. The Attock Board establishes a billing compliance program to insure that all professional fee services rendered and billed comply with applicable laws, regulations. 2. The Director of Attock Business Services (ABS) is responsible for preparing a document that describes the processing and handling of charges. This document is reviewed by the Compliance Officer to insure compliance with existing rules, regulations, and laws governing the handling of professional fee activity. 3. The Director of ABS establishes how the various types of contractual adjustments and bad debts are handled and the signature authorizations for accounts written off. 4. Charges that can neither be reimbursed nor charged to a patient will be written off at the earliest possible time. Indigent adjustments will be made at the time status is determined. 5. The Director of ABS establishes the procedural description for the handling of credit balances that complies with applicable laws and regulations. 6. Attock Cement prepares quarterly financial reports and submits to Stock exchange leadership who, in turn, forward them to System Administration in the format developed and approved by the Office of the Controller. 7. ABS maintains billing and collection information that measures the effectiveness and efficiency of its operations. This information is presented at the meetings of the Attock Cement Budget and Finance Committee. This information includes, but is not limited to the following ratios: billing and collection cost-to-net charges; days in accounts receivable; timely submission of charges; percentage of collections; missed deadline account write-offs; and operating and total margins.
Handling Advance Deposits
ABS maintains standard financial deposit guidelines for handling advance deposits for those who are receiving services & product on an elective basis. The Director of ABS coordinates the establishment of these cash deposit guidelines dependent upon each individual specialty and/or specialized procedure to be performed.
Billing and Collecting
All billing and collection of Attock Cement for professional patient care activity will be coordinated through MSRDP PBS. This will include the processing of charges for technical fees related to patient care. All Accounts staff connected with coding, billing, and collection activities of Attock Cement must make a financial evaluation of customers through a centrally controlled and administered financial screening section of the ABS Attock Cement staff must determine the above identification as early as possible through the registration process in order to properly categorize both the charges and payments that are being received and applied to the customers account. In addition, the identifications should identify the special billing indicators, which may be applicable to the particular customers. The ABS must adhere to established policies for the management of the outstanding accounts receivable so that there will be a consistent and uniform handling of these accounts.
Attock Cement Inventory System for the real time management of inventory items in the catalog. The Inventory System supports updating inventory information for all items, monitoring inventory depletion, and importing and exporting inventory information to and from external systems of record. The Inventory System serves the needs of customers, supplier, retailers and business managers, site administrators, and external line-of-business systems that interface with Commerce Server. The Inventory System includes support for the following functions: 1. Flexible configuration that allows for backordering and display of out of stock stock-keeping units Products. 2. Order checking and update through cements components. 3. Full text search and query integration with the Catalog System. 4. Transactional updates. 5. Import and export operations similar to the Catalog System. 6. Runtime delivery with methods for searching, browsing, viewing details, inventory search options that include product filtering, assigning inventory conditions, and roll-up values. 7. Integration with other Commerce Server systems, such as the Catalog System and Orders System.
In the name of the man Who does not need to read it.
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