[abidaca1]

@ehtasham you can take a look at PEL(Pak Elektron) vs Siemens Pakistan. Their product lines do match to an extent (power grid division of PEL vs Siemens). I am not a moderator for OT but before I changed my companies to General cable and encore wire (because I believe local pakistani companies have little information on the web) I was about to start working on PEL vs Siemens. I cannot guarantee whether its a perfect match but you can see for yourself (there is a 3 month gap in their reporting dates but that is insignificant and you can start working right away).

[abidaca1]

Hello Trephena!

For topic 8:
1- My mentor has told me to do the following: Profitability ratios (revenue growth, GP margin, NP margin and Return on Equity), Liquidity ratios (current and quick ratios) and Investor ratios (EPS and Price/earnings ratio). I wanted to do gearing ratios as well but that would be 10 ratios then and he says that would be too many ratios for the words. What do you suggest?

2- Some ratios I’ve copied from Financial Statements in the appendices sheets (e.g company given EPS). Some I’ve calculated myself from the figures (e.g gross profit margin). For P/E ratio I’ve taken figures from internet as well as financial statements (e.g closing stock price of company at a certain date taken from yahoofinance). How do I give reference for these sources? In excel sheet by making a column named “sources” next to the ratios calculated? and I will have to reference manually (unlike in RAP where MS.Word’s own “insert citation” function takes all details and then generates reference list automatically when you want) so how do I provide references in the external reference list for the citation sI’ve given in MS.Excel sheet (do I make a new heading in reference list for the seperate document or what) It will be great if you please refer me to a sample/example for this (in-text and external citation for ms. excel).

[abidaca1]

Hello trephena,

As I prepare the appendices where I am copying the financial statements (from the annual reports) onto the spreadsheets, I have come across a problem (couldn’t find an answer on the forum).
I know we have to use restated figures for ex. if income statement figures in 2015 financial statements are different for the comparator year 2014 as compared to the figures previously reported in 2014 financial statements. BUT my problem is that now ( in the 2015 income statement) some items for the comparator year are completely MISSING when compared to the original figures 2014 income statement. For ex. in 2014 income statement we have a figure for “Income/(loss) from discontinued operations” but when I look at 2015 income statement (from which I am using the restated figures for 2014 as well) there is no “Income/(loss) from discontinued operations” for the year 2014.

Now since I am using restated figures for 2014 (obtained from 2015 FSs), I am not writing this item in my appendices as well. Because if I do, it will be a problem (as balance sheet won’t balance- the balance sheet figures have the same problem) and income statement figures will neither match restated nor the original ones.

SO how do I account for this in my appendices and RAP? (for ex. if I need to discuss the missed item in my analysis how do I reference it?)

[abidaca1]

I have selected General Cable and Encore wire as the companies to base my project upon. Both companies (infact most of the organisations that were available) are groups and have their subsidiaries worldwide.

I need to know if I need to tackle these groups (as they only have consolidated financial statements) differently as compared to individual companies. And whether something special needs to be kept it mind (and in analysis).

N.B. This has been asked before by multiple people on the forum but the replies were from other participators and I think it would be better if someone from the opentuition team answered it (or if I should contact acca obu department).

[abidaca1]

Thank you for the help mam.

I have sent you an email and am looking forward to have my issues dealt with. I have checked out the webpage links you have provided and if it happens that I am not able to choose one of the previously stated companies, I will surely select from the options given there. You have helped much. I thank you again 🙂

[abidaca1]

Hello opentuition team!

First of all, I apologize because this may get long but I am desperately trying to start off my project to be able to finish it by the deadline.

I am currently trying to choose companies for my RAP submission in period 37. The problem is that when I tried choosing a local company in the electronics sector (because there were no feasible local options in the other two industry sectors), enough data (e.g articles or analysis reports) were not available except companies’ annual reports (and this would limit info sources and my analysis).
And then I looked at the healthcare sector in the UK (I am going to select an international or foreign company now because of media coverage and information available as compared to my local ones) and finally came up with Spire Healthcare Plc as the perfect company except that it had no competitors (except Hospital Corporation America the revenue for which is $42 billion compared to Spire’s $1 billion- making the comparison apples to oranges) except for the non-profit ones (like Bupa or Nuffield) hence not comparable. I was also strictly making sure that both my companies were headquartered and operating in the same region i.e UK (while if I choose Hospital Corp America as primary company it is operating in US and UK both).

And then I left the UK company search to move to US companies. My mentor (who rarely replies to my queries) told me to go with General Cable and Encorewire (both NYSE listed and worldwide operations) but I could not understand their annual reports (form 10k). I don’t know where’s the Chairman’s statement located (or other such as the content list is very confusing for US companies) and then these financial statements are prepared in conformance with US GAAP (not familiar with how to deal with that in RAP). I even felt some interest in looking at Intel or Nvidia/AMD (all semiconductor manufacturers- do these fall in electronic equipment sector applicable for P37?) but the same problem rose that these are NYSE listed and their statements prepared in US GAAP while annual report contents very confusing and not interactive at all as compared to UK listed annual reports.

Summarising my issues:
1- Can I compare Spire healthcare with a non-profit competitor (e.g Nuffield Health)?

2- Can I compare Spire (primary) with Hospital Corp. America (secondary- or vice versa) given their revenues and regions of operation as well as the fact that HCA plc will not have seperate financial statements or reports for their UK based operations?

3- Do Intel, AMD and Nvidia (semi-conductor manufacturers) fall in applicable industry sectors?

4- Is it fine to select US listed companies given their reporting differences (US GAAP) and are there any adjustments to be made in ratio analysis or such if chosen?

5- Is it fine to select high revenue (e.g $5 and $10 billion for AMD and Nvidia respectively) organisations which are very dynamic as well (media coverage for these companies is huge- you’ll get some news for the companies on daily basis)? Will it be HARD to get my head around their operations (due to dynamic environment) and perform my analysis (although definitely annual reports will give me direction)?

* Tonight I am going to read an annual report from AMD to familiarise myself with the contents (and find the CEO and Chairman comments alongwith other assessments). Plus I searched for mining companies but rejected them because their operations are very wide and global ( and so their revenues e.g $40 billion for Rio Tinto). I am afraid of choosing Intel as well because of the same reason (operations very wide/global and figures insanely high).

I HOPE TO GET SOME DIRECTION FROM THE MODERATORS SO THAT I CAN FINALLY START OFF THE PROJECT (VERY EXCITED BUT VERY NAIVE).

Thank you.

[abidaca1]

So you are saying it is okay to perform financial and business analysis (e.g comparing their relevant financial ratios and market performance for years ended) by comparing Siemens September and PEL December statements?

Thank you for guiding.

[abidaca1]

Hello!

Q1- I am sorry if this has been asked before (I couldn’t find it) but I have chosen two companies PEL and Siemens for my project as these are the best match according to the current company selection criteria. The problem is that the main company (PEL) has year end of 31 December while Siemens has 30 September. Now Siemens also has quarterly financial statements available from October to December so I am thinking of combining quarterly statements (Oct-Dec) with previous year end statements (ended September) and then making adjustments so that Siemens also has yearly figures of January to December (to be comparable with PEL). Now I am not sure what adjustments should I make to combine quarterly and year end figures. Is that as simple as time apportionment (multiplying by n/12) and adding/subtracting or should I follow special rules?

Q2- PEL (primary company) has statements available for December 2017 while Siemens has for September 2017. I am doing this project in July and will submit in November. It is not possible to have obtained PELs 2018 statements before november although siemens will have reported already (but thats not the main company). What should I do?
*The companies I have chosen are local and have lots of information available in the media.Their product lines are also identical thats why I am reluctant on working out with these.

Thanks.

[abidaca1]

What were your answers for the ROIs of both divisions?
I got 18 point some % and 27% or so(don’t remember exactly but it was a 20+ figure)for the divisions.

[abidaca1]

Ok thanks.

[abidaca1]

And 1 more question,
Will I be provided graph paper by exam centre for questions with graph charts?
And what should I draw the figures on graph with?Pen or pencil?

[abidaca1]

In the introduction to F5 lecture you said that Section C questions(written questions) will be from part B,C and D of the syllabus only and part A of the syllabus(Specialist cost and management accounting techniques)will be examined only in the mcqs and mtqs.
Is that still applicable for december sitting??

[abidaca1]

Thank you 🙂
Sorry,Mike teaches F4 so I confused him with you 😀

[abidaca1]

Passed on 31 October at 91% Mike 🙂
Thank you for the support 🙂

[abidaca1]

Thank you sir! 🙂

[abidaca1]

In Bpp study text(page no.7),there is a diagram for Civil court structure.It represents that High court can hear both ‘Appeal’ and ‘Appeal by way of case stated’ from magistrates’ courts.
I am confused with the two.

[abidaca1]

Thanks.
I have 2 questions so far:
1- What is the difference b/w appeal by a court and appeal by way of case stated?
2-Can you explain the section 39 of companies act 2006(concerning ultra vires contracts)?
It is stated as: “the validity of an act done by a company shall not be called into question on ground of lack of capacity by the reason of anything in the company’s constitution”(cannot understand it from ‘ground of lack of…companies constitution’)

[abidaca1]

I felt a similar situation in F1 before but I passed it at 76 marks.I am not so good with theory but with numerical exams I am excellent,I have passed 5 exams with 94+ marks.
Don’t want to go down this time.

[abidaca1]

How was your result? U passed it??

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