ACKNOWLEDGEMENT

While showing my interest in chartered accountant firm so many people support my idea
and many others helped me in preparing this comprehensive report. This is now
completed.

I am thankful to my family how really support me and my ideas, without which I cannot
take a single step. I am also thankful to my respected teachers who guides and provides
me skills on which I have completed the report.

I am very thankful to Ghafoor & Co. Principal and Staff, which adds value of
professionalism to my personality and polished my skills further. Especially i want to
mention the names without which it would very difficult for me includes Mr. Abid
Hussain, Mr. Asim Iqbal, Mr. Mansoor Khan, Mr. Aamir Jamal and my other colleagues
share useful views and suggestion in preparing my report.

TABLE OF CONTENTS
ACKNOWLEDGEMENT

TABLE OF CONTENTS

PREFACE

CHAPTER - 01

INTRODUCTION OF STUDY

1.1)

BACKGROUND OF THE STUDY

1.2)

PURPOSE OF STUDY

1.3)

SCOPE OF STUDY

1.4)

LIMITATION OF THE STUDY

1.5)

RESEARCH METHODOLOGY

CHAPTER - 02

INTRODUCTION

2.1)

ABOUT CHARTERED ACCOUNTANT FIRM

2.2)

HEAD OFFICE

2.3)

INTRODUCTION OF GHAFOOR & CO

2.4)

ORGANIZATIONAL STRUCURE

2.5 SERVICES RENDERED BY THE CA FIRMS

10

2.5.1) AUDITING

10

2.5.2) TAXATION

11

2.5.3) CORPORATE SECTOR

11

2.5.4) PROFESSIONAL CONSULTANCY

12

2.5.5) MANAGEMENT CONSULTANCY

12

CHAPTER 3

13

WHAT I LEARNED

13

3.1 DUTIES AND OBLIGATIONS OF STUDENTS AND

PRINCIPALS IN CA FIRM
13

HOW TO CONDUCT AUDIT

14

AUDIT PROCESS

18

CHAPTER 4

24

CRITICAL ANALYSIS

24

SWOT ANALYSIS

24

STRENGTH:

24

WEAKNESSES

25

OPPORTUNITIES

26

THREATS

26

RATIO ANALYSIS

27

FINANCIAL ANALYSIS

31

CONSIDERATIONS FOR PROJECT ANALYSIS

31

CHAPTER 5

32

FINDINGS AND RECOMMENDATIONS

32

CONCLUSION

33

BIBLIOGRAPHY

35

PREFACE
In this special report an attempt has been made to contextualize the scenario by pooling
scattered information on CHARTERED ACCOUNTANT FIRM.
After the completion of four years course of M.COM (Finance) all the students are must
be prepare a Report of the practical experience. For this purpose student are to be allowed
to do an Internship of two months from any business organization i.e. banks, factory or
any Institution.
The members of CA Firms are authorized for public are the real sources where the
activities of the profession are originates and flourished.
Therefore, I have highlighted almost all relevant topics including giving background of the
accounting profession in the country areas of work being performed by a firm of chartered
setup it has to maintain and also by fairly describing the terminologies generally found by
the commerce and management students in their books.

CHAPTER - 01
INTRODUCTION OF STUDY
1.1) BACKGROUND OF THE STUDY
A

firm runs by one or two more partners authorized by Institute of Chartered

Accountant Pakistan Ordinance 1961 to conduct internal and external audit of

public and private limited companies, NGOs and other organization.
CA firms assist the organization in legal and financial matter. They assist him in
making their statement up to international standard of accounting. They conduct
audit of the organization compute their tax and submit the report to the concerned
authority.
The main aim behind the establishment of the institute of Chartered
Accountant of Pakistan was to conduct the training of CA students and provide
highly dedicated professionals though a process of conducting and passing
specific examinations successful students were then admitted the members of
the institute and after the fulfillment of certain conditions, eligible members
were entitled to practice and were allowed to train CA students.
Ghafoor & Co was established as a Chartered Accountant Firm in 23 rd April
1990. This firm has provided useful services to the Govt. Private and other
Institutions.

1.2) PURPOSE OF STUDY

The purpose of the study is to give a comprehensive review of the chartered
accountant firm and to analyze its financial aspects. Besides that, the purpose of
the study is to compare the theoretical knowledge with the actual practical work.

In short the study will be a standard to determine how tasks should be

performed and carried out and how is they being performed in reality.

1.3) SCOPE OF STUDY

The time duration of eight weeks is quite insufficient for conducting complete
study and observation of a large firm. Being a student specializing in finance,
the main focus of my study research was to get maximum knowledge and
practical know how of conducting audit and tax dealing of the firm.

1.4) LIMITATION OF THE STUDY

Nothing is perfect except Allah, since this is a sincere effort. No matter how
efficiently the study is conducted, it cannot be perfect in all respects. This study is
conducted in accordance with its objectives of the study. Thats May not include broad
explanation of facts and figure due to nature of the study.

Secondly the limitation, which

affects the study, is the restriction on mentioning every fact of the CA firms due to the
problem of secrecy.

1.5) RESEARCH METHODOLOGY

For writing this report the information has been collected by following ways.
There are two types of data used for report writing.
i-

PRIMARY DATA
The data, which is collected for the first time and exist in raw form, is called
primary data.
It includes:
a.

Personal observation

b.

Discussion with staff

c.
ii-

Informal interviews with senior auditor

SECONDARY DATA
The data gathered from existing sources are called secondary data. They are in
processed form.
The main sources of secondary data are:

1.6)

a.

Annual reports of ICAP

b.

ICAP website/ internet

c.

Monthly newsletter of ICAP

d.

Brochures

e.

Relevant book

SCHEME OF STUDY
The scheme of study of the report is as under
Section one is about the introduction of the study, which includes its
Background, Purpose and Scope of the study Research methodology and
the Scheme of study.
Section two is about the literature review, which includes services
rendered by CA Firm Auditing, Taxation, Consultancy services and
corporate sector services.
Section three is about the financial analysis of the company, which
includes the swat analysis, Ratio analysis, and Project consideration.
Section four include finding & recommendation prescribes for the CA
Firm to further improve its functioning and conclusions.

CHAPTER - 02
INTRODUCTION
2.1) ABOUT CHARTERED ACCOUNTANT FIRM
A

firm runs authorized by institute of chartered Accountant of Pakistan

Ordinance 1961 to conduct internal and external audit of public and private
limited companies, NGOs and the other organization.
C.A firms provide tax, audit and advice on other legal matters to the financial
aspect of the organization under the rule and regulation of the CA by laws of
the International Accounting Standards.
The main aim behind the establishment of the institute of Chartered
Accountant of Pakistan was to conduct the training of CA students and
provided highly dedicated professionals through a process of conducting and
passing specific examinations successful students were then admitted the
members of the institute and after the fulfillment of certain conditions, eligible
members were entitled to practice and were allowed to train CA students. With
the passage of time the institute of Chartered Accountant of Pakistan is playing
its role as one of the most organized professional body of the country.
Ghafoor & Co was established as a Chartered Accountant Firm in 23rd April
1990. This firm has provided useful services to the Govt. as well as private
department and other institutions.

2.2) HEAD OFFICE

The head office of Ghafoor & Co is opposite of GPO Saddar Road.

2.3) INTRODUCTION OF GHAFOOR & CO

The principal of this Chartered Accountant firm is Abdul Ghafoor. At present time
Ghafoor & Co constitute 15 staff Members out of which 9 are the students of this
firm and the remaining staff consists of Mr. Syed Asif Aziz ud- Din Bukhari is
General Manager & Mr. Abid Hussain is Audit Manager, Mr. Mateen Khan acting
as Corporate Manager, Mr. Mansoor Khan acting as

Accounts

and

Tax

Manager.
In case any complexity they take guidance from General Manager who is
specialist of tax and management affairs.

2.4) ORGANIZATIONAL STRUCURE

The GHAFOOR & CO. current organizational structure as follows:-

Head of the Firm (Principal)

General Manager

Audit Manager

Tax Manager

Corporate Manager

STUDENTS

2.5 SERVICES RENDERED BY THE CA FIRMS

Chartered Accountant firms render various types of services to their clients
according to the type and nature of the clients. The nature of service also differs
from firm to firm, which includes corporate services, feasibility report,
professional consultancy etc. Firm has also been widened individuals,
corporations, association of persons, nonprofit making organizations and NonGovernmental Organizations (NGOs).
Chartered Accountant firms provide professional services in the field of auditing,
taxation, and management consultancy to utmost satisfaction of their client. Today
the service rendered by a CA firm in such a wide variety has made it more and
more worthwhile. The detail of services by the CA firms in the various fields is
below.

2.5.1) AUDITING
An audit is the independent examination of financial statement or related
information of an entity, whether profit oriented or not, and irrespective of its
size, or legal form, when such an examination is conduct with a view to
expressing an opinion thereon
An audit is the independent examination of books of account and all the public
and private limited company under company ordinance 1984 are mandatory
that the chartered accountant must sign their books of accounts
All the NGOs And welfare trust also examine their books of account from
chartered accountant firm because the govt. and their donors have trust on the
certificate of chartered accountant
The audit process include the checking of trial balance then the entry in trail
balance are reconciled with the entries in Ledger accounts and the amounts of
10

ledger are reconciled with the Journal voucher(JV) with supporting evidence.
After this process then they express their opinion upon the accuracy or
inaccuracy of the accounts. They write an audit report and also mention the
various transactions, which are not duly verified. They also write audit report
to the management in which they express any weakness of the management
how to control these weaknesses. They are rendering for such services charges
some fee.

2.5.2) TAXATION
Under income tax law tax could be defined as t Tax means any tax imposed
under the income tax law. It also includes any penalty, fee or other charge or
any sum or amount livable or payable under income tax ordinance 2001
The chartered accountant firm have specialized department for taxation as I
early mentioned and some firms only in tax related matter.
The client who needs the services regarding to tax pay fee for such services
and the auditor gives him a very useful service by the tax returns.

2.5.3) CORPORATE SECTOR

This field deals with the Security exchange commission of Pakistan (SECP),
that includes the services registration of partnerships, Companies. License from
S.E.C.P for commencement of business. Changing in the article of

association and

memorandum of association, and many other services.

11

2.5.4) PROFESSIONAL CONSULTANCY

CA Accountant firm provide professional consultancy services to its valuable
customer, The staff may not have professional auditor but he has all the
necessary skill and professional education so they analyze the organization ,
identify the sick unit for privatization, and also for the establishment of the
organization .

2.5.5) MANAGEMENT CONSULTANCY

CA firms provide management consultancy to their clients. In management
consultancy include development and implementation for accounting system,
manuals and management information system. In order to make their management
efficient they appoint staff may or may not have a professional auditors
qualification. Sometimes the company independent auditors to conduct the internal
audit of their accounts. The auditor checks the system and the policies of the
management along with the books of accounts. The auditor has to report to the
management whether the policy and plans of activities prescribed by them have
been implemented, whether the internal check and internal control established are
adequate, whether the actual result are obtained and varying form the estimates,
and to enable the management to achieve the objective of the company in a
planned manner.

12

CHAPTER 3
WHAT I LEARNED
3.1 DUTIES AND OBLIGATIONS OF STUDENTS AND
PRINCIPALS IN CA FIRM
The duties and obligations of a student in a CA firm are
I.

He will throughout his term of training serve in his principals office on his
principals business of public accountant or occupation.

II.

He will not at any time during the said term destroy, cancel, spoil, embezzle
or take copies of books, papers, plans, documents, monies of his principal,
partner or for his clients.

III.

He will at all times keep the secrets of the principal or his partner or of their
clients.

IV.

He will readily obey and execute the lawful and reasonable commands of the
principal during the said term.

DUTIES AND OBLIGATIONS OF A PRINCIPAL IN A CA FIRMS

I.

He will by the best means in his power and to the most of his skill and
knowledge instruct the trainee student and afford him such reasonable
opportunities as may be required to enable him to acquire the art, science and
knowledge of accountancy.

II.

He will at the expiration of the said term use his best means and endeavors
at the request, cost and charges of the trainee student to cause to be admitted on
the register of members, pursuit to the chartered accountant ordinance 1961.

13

HOW TO CONDUCT AUDIT

THE OPERATION OF AUDIT
The audit work is operated with the help of the following techniques:
.1)

TICKING.

.2)

CASTING.

.3)

CALLING OVER

.4)

VOUCHING.

.5)

VERIFICATION.

.6)

REPORTING.

1. TICKING
Ticking indicates the placing of a mark against an entry in the book to denote that
the auditor has examined it for a certain purpose. Variously shaped marks are used
to denote checking of additions, posting, carry-forward, tracing, extraction of
balances etc. Ticks are generally put in indelible pencil, although some auditors
also use pen and ink for this purpose.
2.

CASTING
Casting refers to the checking of additions of books of accounts and financial
statements. It is essential that arithmetical accuracy be checked so that frauds or
errors (if any) may be detected. A junior member of audit staff normally does this
job. Most of the auditors use mechanical appliances or adding machines to check
the casting of the books of accounts.

3. CALLING OVER

14

Some part of audit work consists of comparison of two or more books of accounts
with supporting documents; this is usually performed by two members of staff.
One Member is reading the item and the other is reconciled. Here the precaution is
that check complete evidence/supports not only the amounts the books, checking
and posting of the personal ledger, names and title of accounts, otherwise the error
may not be detected clarity of voice is essential.

4. VOUCHING
A voucher is a documentary evidence which proves the accuracy or otherwise of
transaction appearing in the books of accounts.
The different types of voucher are follows
Cash receipt
Cash payment
Purchases
Sales
Purchase return
Sales return
Journal entries

Vouching means and includes the examination of every business transaction wit
its supporting documentary evidence, the checking of which satisfy the auditor that
transaction is in order. If the auditor failed to vouch the item correctly he must be
held negligent in the performance of his duties.

5. VERIFICATION
15

The process of vouching enables an auditor to confirm the acquisition of an asset

or the assumption of a liability on a stated date.
Sub section 3 of section 255 of the require and auditor to submit his report to
shareholder specifically mentioning whether or not the balance sheet exhibits a true
and fair view of the state of company affairs according to the best of his
information and the explanation given to him true as shown in the books of the
company
The auditor discharge his duty after due verification. The techniques of verification
are followings.

He satisfies himself of the existence of and asset or liability.

Correct valuation of the assets and liability.
Question of ownership is valid and true in respect of and asset and liability.
Each time of asset and liability disclosed as legally required under the law.

6. REPORTING
Performing the above duties the auditor has to submit a report. The report of the
content depends upon several factors.
E.g. the legal status of the appointing authority
The audit is performed under the companys ordinance 1984. Banking ordinance
1962, insurance act 1938.
The audit report to be submitted after the annual audit of account of company in
prescribed form 35-A annexed to the companies rules 1985
Modern trends follow the under noted sequence:
Examination of the accounting system.
16

 Evaluation of internal controls.

Sample checking of vouchers.
Verification of assets and liabilities.
Submission of auditors report.

AUDIT PROCESS
Every successful audit is based on sound planning and an atmosphere of constructive
involvement and communication between the client and the auditor. I see quite a few
organizations that include a web based explanation to their clients how the audit process
work. The purpose of providing this page is for those audit organizations that have not
explained to their clients how, in general, the audit process works. It is also design to
provide a resource of for sharing tools and techniques for each of the distinct phases of the
audit process.

Audit Process
Although every audit project is unique, the audit process is similar for most
engagement and normally consists of four stages: Planning (Sometimes called survey or
Primary review), field work, audit

report, and follow up Review. Client involvement is

critical at each stage of the audit process. As in any special project, an audit results in a
certain amount of time being diverted from your departments as usual routine. One of the
key objectives is to minimize this time and avoid deputing ongoing activities.

Planning
During the planning portion of audit, the auditor notifies the client of the audit,
discusses the scope and objectives of the examination in a formal meeting with

17

organization management, gathers information on important processes, evaluates existing

controls, and plans the remaining audit steps.

Announcement Letter
The client is informed of the audit through an announcement or Engagement letter
from the internal audit director. This letter communicates the scope and objectives of the
audit, the auditors assigned to the project and other relevant information.

Initial Meeting
During this opening conference meeting, the client describe the unit or system to
be reviewed, the organization, available resources (Personnel, facilities, equipments,
funds) and other relevant information. The internal auditor meets with the senior officer
directly responsible for the unit under review and any staff members s/he wishes to
include. It is important that the client identify issues or areas of special concern that should
be addressed.

Preliminary Survey
In this phase the auditor gather the relevant information about the unit in order to
obtain a general overview of operations. S/He talks key personnel and review reports,
files, and other sources of information.

Audit Program
Preparation of the audit program concludes the preliminary review phase. This
program outlines the fieldwork necessary to achieve the audit objectives.

Fieldwork
The fieldwork concentrates on transaction testing and informal communications. It
is during this phase that the auditor determines whether the controls identified during the

18

preliminary review are opening properly and in the manner described by the client. The
fieldwork stage concludes with a list of significant findings from which the auditor will
prepare a draft of the audit report.

Transaction Testing
After completing the preliminary review, the auditor performs the procedures in
the audit program. These procedures usually test the major internal controls and the
accuracy and propriety of the transactions. Various techniques including sampling are used
the fieldwork phase

Advice and Informal Communications

As the fieldwork progresses, the auditor discusses any significant findings with the
client. Hopefully, the client can offer insights and work with the auditor to determine the
best method of resolving the finding. Usually these communications are oral. However in
more complex situations, memos and emails are written in order to ensure full
understanding by the client and the auditor.

Audit Summary
Upon Completion of the fieldwork, the auditor summarizes the audit findings,
conclusions, and recommendations necessary for the audit report discussion draft.

Working Papers
Working papers are a vital tool of the audit profession. They are the support of the
audit opinion. They connect the clients accounting records and financials to the auditors
opinion. They are comprehensive and serve many functions.

Audit Report
Our principal product is the final report in which we express our opinions, present
the audit findings, and discuss recommendations for improvements. To facilitate

19

communication and ensure that the recommendations presented in the final report are
practical, internal audit discusses the rough draft with the client prior to issuing the final
report.

Discussion Draft
At the conclusion of fieldwork, the auditor drafts the report. Audit management
thoroughly reviews the audit working papers and the discussion draft before it is presented
to the client for comments. This discussion draft is prepared for the units operating
management and is submitted for the clients review before the exit conference.

Exit Conference
When audit management has approved the discussion draft, internal audit meets
with the units management team to discuss the feelings recommendations, and text of the
draft. At this meeting, the client comment on the draft and group works to reach an
agreement on the audit findings.

Formal Draft
The auditor then prepares a formal draft, taking into account any revision resulting
from the exit conference and other discussions. When the changes have been reviewed by
audit management and the client, the final report is issued.

Final Report
Internal audit prints and distributes the final report to the units operating
management; the units reporting supervisor, the vice president for Administration, the
University Chief Accountant, and other appropriate members of senior University
Management. This report is primarily for internal university management use. The
approval of the internal audit director is required for release of the report outside of the
university.
20

Client Response
The client has the opportunity to response the audit findings prior to issuance of
the final report which can be included or attached to our final report. However, if the client
decides to respond after we issue the report; the first page of the final report is a letter
requesting the clients written response to the report recommendations.

Client Comments
Finally, as part of internal audits self-evaluation program, we ask comment on
internal audits performance. This feedback has proven to be very beneficial to us, and we
have made changes in our procedures as a result of clients suggestions.

Audit Follow-Up
Within approximately one year of the final report, internal audit will perform a
follow-up review to verify resolution of the report findings.

Follow-Up Review
The client response letter is reviewed and the actions taken to resolve the audit
report findings may be tested to ensure that the desired results were achieved. All
unresolved findings will be discussed in the follow-up report.

Follow-Up Report
The review will conclude a follow-up report which lists the actions taken by the
client to resolve the original report findings. Unresolved findings will also appear in the
follow-up report and will include a brief description of the finding, the original audit
recommendations, the client response and the current condition.

21

CHAPTER 4
CRITICAL ANALYSIS
SWOT ANALYSIS
CHARTERED

ACCOUNTANT

FIRM

AT

ITS

STRENGTHS

WEAKNESSES OPPORTUNITIES AND THREATS

STRENGTH:
I.

INCORPORATION

Experience of operations, as the firm was incorporated / established in 1961.

II.

AUDIT

Ghafoor and company has a qualified staff for audit all the work is based on
manual as well as computer.
III.

INCOME ESTIMATION

Has a good team for income estimation.

IV.

GOOD INFRASTRUCTURE

The infrastructure of Ghafoor & company is very much probable and effective.
Progress work carried out time to time to maintain the standard up to the mark.
V.

RELIABILTY

Strong centralized & reliable system controlled by Institute of Chartered

Accountants of Pakistan.
VI.

REWARD TO STUDETNS

Offering good stipend for article ship students and for internees for their hard
work.

22

VII.

GOODWILL

Good reputation among customers & have got honorable good will amongst all.
VIII.

FINANCIAL RESOURCES

It has adequate financial resources which fulfill his basic requirements to maintain
current status in the society.

IX.

BUSINESS ATITUDE

The company has good competitive skills to compete with the other companies.
X.

RUNING WITH TIME

By small means we adapt our programmed each year to meet our members
requests.
XI.

COLLABORATION

Ghafoor & company have a very good & friendly environment among the staff
members and with the honorable clients.

WEAKNESSES
I.

PUNCTUATION

Delay in report delivery to companies.

II.

LESS NUMBER OF STAFF MEMBERS

Less number of staff members providing services to number of clients, which

causes delay in work to be done on time.
III.

COSTLY SERVICES

Provides costly services to customers as compared to other companies.

IV.

MARKET VALUE
23

Ghafoor and company have low market presence or reputation.

V.

COMPETITVE SKILLS

Ghafoor and company is never as competitive as compared to its clients.

OPPORTUNITIES
I.

PROGRESSIVE RESULT

Ghafoor and company clients are increasing with the passage of time.
II.

FINANCIAL SERVICES

Trying to provide financial services that have a wide use in this field.
III.

ACCURACY

In comparison of Ghafoor and company with its competitors has an edge to make an
accurate and error free report.
IV.

SUPPORTING BODY

The Ghafoor and company have the facility to give coverage even the small retailers
for income estimation who want to take loans from.
V.

QUALIFIED STAFF

The company has mostly professional educated human resources, which are the
biggest threat for their competitors.
VI.

DETERMINATION & SELF CONFIDENCE

The total economy of the company continues to be strong and we believe our typical
clients will continue to flourish.

THREATS
I.

CHALLENGING ENVIRONMENT

Ghafoor and company has many competitors under certain circumstances

24

These companies may have a act as major threat to the organization. Change in ICAP
policies can act as a threat for chartered accountant firms.
II.

FLUCTUATION IN MARKET POSITION

A small change in focus of a large competitor might wipe out any market position,
Ghafoor and company achieve.
III.

FBR POLICIES

Sudden change in the policies of FBR urges ICAP to change its policies which put
extreme pressure on chartered accountant firms to level their current status.

RATIO ANALYSIS
A ratio is a quantitative relation between two magnitudes of the same kind. In ratio
analysis, the financial ratios of the firm are compared to that of its competitors.
This comparison allows the firm to detect major operating differences, which, if
corrected, will increase its efficiency. Another very popular method of ratio
analysis is to compare the firms financial ratios to industry averages.
Before discussing financial ratios, three cautions are in order:
I. A single ratio does not generally provide sufficient information to judge the
overall performance of the firm. Only when a group of ratios is used, a
reasonable judgment concerning the firms overall financial state can be made.
II. An analyst, when comparing financial statement, should ensure that
predetermined uniform standards are used for this purpose.
III. It must be ensured that the data used in calculating financial ratios have been
developed in the same manner and are sound and reliable.

25

There is no doubt that financial ratios are a useful guide for managerial decisionmaking but these are not exact and definite. Ratios only suggest the questions that
need to be answered and provide no answers.
Let us now calculate some of the key financial ratios of Taj syringes (pvt) Ltd for
the years 2008-2012, and try to answer the questions that these ratios suggest.
These ratios are calculated from the Balance Sheet and Profit & Loss Account
of TAJ SYRINGES (PVT) LTD.
1)

CURRENT RATIO
Current Assets

Current Ratio
Current Liabilities
Current Ratio (2012) =

20671907 / 13156669 = 1.32

Current Ratio (2013) =

23393169 / 42097696 = 5.5

Current ratio of the Ghafoor & Co. has increased to 4.18 in 2012-12. This shows
that liquidity of the company has increased. But it should also be kept in mind that
too much liquidity decreases the profitability. The reason is that the cash on hand is
the most unproductive asset and the surplus cash should be invested in short-term
ventures.
2)

INTEREST MARGIN
Int. Income Int. Expense
100

Interest Margin =
Int. Income

26

Interest Margin (2012) =

17,197,805 11,065,063
100 35.7%
17,197,805

Interest Margin (2013) =

15,755,990 9,351,947
100 40.6%
15,755,990

The interest margin of the company has improved from 35.7 percent in 2012 to
40.6 percent in 2013. This suggests managements efficiency to attract less costly
deposits and make higher-yield investments.
3)

NET PROFIT MARGIN

Profit after Taxation
100

Net Profit Margin =

Interest Income

Net Profit Margin (2012)

399,180
100 2.32%
17,198,805

Net Profit Margin (2013)

568,950
100 3.61%
15,755,990

The net profit margin of Taj syringes (pvt) Ltd has also shown an improvement as
its raised to 3.61 percent in 2013 as compared to 2.32 percent in 2012. These
signals towards higher efficiency and lower administrative costs of the company
during 2013.
4)

RETURN ON EQUITY
Profit after Taxation
Return on Equity

100

=
Share holders Equity

27

Return on Equity (2012)

399,180
100 11 .03%
3,618,286

Return on Equity (2013)

568,950
100 14.53%
3,914,155

The return on equity has increased to 14.53 percent in 2012 as compared to 11.03
percent in 2013. The return on equity replicates the net profit margin trends, with
the company registering good performance because of better efficiency.
5)

RETURN ON ASSETS
Profit before Taxation
Return on Assets

100

=
Total Assets

Return on Assets (2012)

Return on Assets (2013)

947,003
100 0.63%
149,725,757

1,210,539
158,584,818

100 0.76%

The return on assets has improved to 0.76 percent in 2013 as compared to 0.63
percent in 2012. This indicates the success of management to utilize the assets of
the company efficiently.
6)

INVESTMENT-DEPOSIT RATIO:
Investments
Investment Deposit Ratio
Deposits

Investment Deposit Ratio (2012)

55,386,005
0.45
123,821,807

28

Investment Deposit Ratio (2013)

45,609,005
0.35
130,336,164

The investment-deposit ratio of the company has also dropped drastically during
2013. This suggests a tilt of the company towards higher risk and consequently
higher-yield investments, rather than undertaking less risky loaning activity.

FINANCIAL ANALYSIS
The following schedules are prepared to judge the project from the financial angle:
I.

Cost of Project

II.

Means of Financing

III.

Estimates of Sales and Production

IV.

Cost of Production

V.

Working Capital Requirements

VI.

Break Even Point

VII.

Projected Cash Flow Statement

VIII.

Projected Balance Sheet

CONSIDERATIONS FOR PROJECT ANALYSIS

I.

To Identify Promising Business Opportunities

II.

To Develop a strategy for Sustainable Competitive Advantage

III.

To Forecast Realistic and Incremental Cash Flows

To Calculate the Net Present Value of a Project

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CHAPTER 5
FINDINGS AND RECOMMENDATIONS
Following are my recommendations to increase the quality of service
I.

Its my suggestion for chartered accountant firm to maintain superlative

planning from start to end.

II.

Its my suggestion for chartered accountant firm to maintain computerized

system in the firm for different task.

III.

Allocate duties and responsibilities to member of the firm.

IV.

Create department in the firm.

V.

Create definable organizational structure for different operations

VI.

Create top to bottom information system.

VII.

Create definable financial structure

VIII.

Look at all complaints about your service as an opportunity to improve.

IX.

Establish an environment where great service is recognized and rewarded

and poor service is challenged and rectified

X.

Have a fun staff meeting where good service elements are discussed and
role played.

XI.

Ensure that your staff feels they are an important part of your success.

XII.

Do things regularly to improve the workplace.

30

XIII.

Create a sort of enthusiasm you want to inspire in your employees. Their

enthusiasm will naturally pass on through their service.

XIV.

Be sure your employees are aware of your expectations .clear service guide
lines and knowledge of the companys mission are necessary.

XV.

Hire the right people for the right job

XVI. To improve the loyalty of employees with the organization it is necessary

that proper incentive must provide to each level of employees.
XVII. It is necessary that the management must continuously develop technical
and managerial skills at all levels.
If all the above suggestions are seriously considered. It will help to develop long
run relations with the clients and they will become brand loyal forever.

CONCLUSION
In the conclusion remarks I would like to say something that Ghafoor

and

company is the profitable organization Ghafoor and company played very vital
role in his field by providing attractive service and packages to the customers.
Ghafoor and company has very wide network coverage national and international
with latest technologies and provide services to its valued customers. I have done
internship in Ghafoor and company for a period of six weeks and this period is
quiet a small period of time yet I have learn a lot.

31

Here I apply my knowledge and get a technical practice of my knowledge. Now I

know about the environment of organization and how to communicate with
colleagues and boss.
I learn that how to use theoretical knowledge in organization my communication
skills are improved my decision making power is improved now I have power to
decide about the future.
Ghafoor and company is a customer oriented as well as employee-oriented
company so it provides a very friendly environment for the employee any internee
like me has a good chance of learning new things and techniques and increases his
confidence.
Now I have the advance knowledge and analytical and problem solving skills
needed to be a truly effective part of todays business environment. Now I can
prepare the accounting records analyses financial reports and document of an
organization check the accuracy of financial statement can ensure that the
documents represented are drawn up on correct accounting principles can maintain
cost auditing records, compiling cost information and performing cost audits.
Taxation involves dealing with direct taxes like income tax assessment of taxes, efilling of returns and providing advice on indirect taxes, investigation includes
expert examination of specific aspects of business for the information of interested
parties on new issues of share capital, the purchase, sale or financing of a business
and for reconstruction.

In concluding all this I can say that Ghafoor and company add a great value in my
professional life.
32

BIBLIOGRAPHY

www.icap.gov.pk.

Auditing Books.

Income Tax Books.

Wikipedia.

ICAP Newsletter.

ICAP Brochures.

Annual Report of ICAP.

Business Magazines

Personal Interview form seniors.

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