Fr1 Ratios Lecture 05 ( last Lecture)
Transcript
00:00:00Upsend is Rs. 300 only.
00:00:05Late coming upend is Rs. 5 per minute.
00:00:08If someone's phone is switched off,
00:00:11then it is Rs. 100.
00:00:13In test, upend is Rs. 5 per minute.
00:00:15Today, your two topics will be completed.
00:00:17Next year's test will also be announced.
00:00:19Come quickly.
00:00:21Yesterday, we were asking a question.
00:00:23Now, we are asking a question.
00:00:25Which one?
00:00:30Ratios mean...
00:00:46Lazy Baccha Party.
00:00:48Yesterday, we were talking about Africa Limited.
00:00:50On which, we had to tell the effect
00:00:53on the GDP ratio.
00:00:56Second, we had to tell the effect
00:01:00on net profit ratio.
00:01:07Third, we had to tell the effect
00:01:09on current ratio.
00:01:13Fourth, we had to tell the effect
00:01:15on stock turnover.
00:01:21Fifth, we had to tell the effect
00:01:23on return on non-current assets.
00:01:41Second case, we had started.
00:01:43We had said that you have
00:01:45slow moving stock items.
00:01:47On which, you have started
00:01:49selling?
00:01:51On cost.
00:01:52I had given an example.
00:01:54As an example,
00:01:58you have sales,
00:02:00CGS,
00:02:02and gross profit.
00:02:04Earlier,
00:02:06you were selling
00:02:08for Rs. 120.
00:02:10Cost was Rs. 100.
00:02:12Profit was Rs. 20.
00:02:14What was your GDP percentage?
00:02:1620%.
00:02:18Your GDP percentage
00:02:20was 20%.
00:02:22But now, you have started
00:02:24selling on cost.
00:02:26Cost is Rs. 100.
00:02:28How much will your GDP be?
00:02:300%.
00:02:32This means
00:02:34that on which,
00:02:36you have started
00:02:38selling your slow moving items?
00:02:40On cost.
00:02:42Profit was Rs. 20.
00:02:44Now, what will be your GDP?
00:02:460%.
00:02:48Decrease will be
00:02:50number 2.
00:02:52GDP will decrease.
00:02:54Now, we had said that if GDP is decreasing,
00:02:56will it go below the GDP?
00:02:58If it goes below the GDP,
00:03:00then we will think and see
00:03:02whether the net profit will increase or decrease.
00:03:04But, it means that
00:03:06it will end above the GDP.
00:03:08If the GDP decreases, then the net profit
00:03:10will also decrease.
00:03:12If it had to go below the GDP,
00:03:14then we would have thought and decided
00:03:16that it will end above the GDP.
00:03:20So, if the GDP decreases,
00:03:22the net profit will also decrease.
00:03:28After this, we have current ratio.
00:03:32What is the formula of current ratio?
00:03:36The formula of current ratio is
00:03:42current assets over
00:03:44current liabilities.
00:03:46Now, you have started selling
00:03:48slow moving items.
00:03:50For example,
00:03:52you had current assets
00:03:54cash Rs. 100.
00:03:58Inventory
00:04:00at cost
00:04:02Rs. 100.
00:04:04And your current liabilities were Rs. 100.
00:04:06What will be the answer
00:04:08of current ratio?
00:04:102 times.
00:04:12Now, if you are selling
00:04:14inventory at cost, then
00:04:16liabilities will not be affected.
00:04:18So, you are selling at cost.
00:04:20If you sell inventory at cash
00:04:22at Rs. 100, then how much will be the cash?
00:04:24Rs. 200.
00:04:26And what will be the inventory?
00:04:28The answer will be
00:04:30Rs. 100.
00:04:322 times.
00:04:34If you sell inventory
00:04:36at profit,
00:04:38if at profit,
00:04:40then you sell
00:04:42inventory at Rs. 100.
00:04:44You sell at Rs. 120.
00:04:46Then you get Rs. 20 extra cash.
00:04:48What is Rs. 20?
00:04:50You get extra cash.
00:04:52Then this ratio will not be there.
00:04:54Then you sell inventory at Rs. 120.
00:04:56Then how much will be the cash?
00:04:58Rs. 220.
00:05:00Inventory will be nil.
00:05:02Inventory will be nil.
00:05:04Then what will be the answer?
00:05:062.2.
00:05:08If we sell it at profit,
00:05:10then the current ratio will increase.
00:05:12But what did we think?
00:05:14Inventory will be less at cost.
00:05:16Receivable or cash will increase.
00:05:18And it will increase at cost.
00:05:20So, numerator is not changing.
00:05:22Denominator is not changing anyway.
00:05:24If you sell inventory, then the current ratio will not be affected.
00:05:26So, one asset is decreasing
00:05:28and the other is increasing.
00:05:30Same valuation is increasing.
00:05:32So, what will be the current ratio?
00:05:34No effect.
00:05:36This is the reason.
00:05:38What will be the profit value?
00:05:40If we sell it at profit,
00:05:42then inventory will be less at cost.
00:05:44But the receivable or cash
00:05:46will increase at profit.
00:05:48Then the current ratio will be better.
00:06:00We have cash at Rs. 100.
00:06:02Inventory at cost is Rs. 100.
00:06:04Current value is Rs. 100.
00:06:06Current ratio is 2 times.
00:06:08And we are saying that
00:06:10inventory is a slow moving item.
00:06:12We sold inventory at cost.
00:06:14Cost means
00:06:16we sold Rs. 100 at Rs. 100.
00:06:18If I sold Rs. 100 at Rs. 100,
00:06:20then inventory will be 0 and cash will be Rs. 100.
00:06:22Current ratio will be 2 times.
00:06:24But,
00:06:26if we sell inventory at profit,
00:06:28then
00:06:30inventory is Rs. 100
00:06:32and cash will be Rs. 120.
00:06:36Inventory is less than Rs. 100.
00:06:38One asset is less than Rs. 100.
00:06:40And second asset is more than Rs. 120.
00:06:42So, Rs. 20 will increase in assets.
00:06:44Assets will increase in numerator.
00:06:46So, what will be the current ratio?
00:06:48It will increase.
00:06:52What will be the result of this?
00:06:54No effect.
00:06:56Because one asset is less than Rs. 100
00:06:58and second asset is more than Rs. 100.
00:07:00No effect.
00:07:08What will be the result of
00:07:10stock turnover ratio?
00:07:14Stock turnover ratio.
00:07:16CGS.
00:07:18Divided by?
00:07:20Inventory.
00:07:22If I sell inventory,
00:07:24then
00:07:26inventory will be less
00:07:28and CGS will increase.
00:07:30And CGS
00:07:32is always on cost.
00:07:34It has nothing to do with profit.
00:07:36Always on cost.
00:07:38What is CGS?
00:07:40Cost of goods sold.
00:07:42So, it is not profit.
00:07:44It is cost.
00:07:46If I sell inventory at profit,
00:07:48then CGS will increase.
00:07:50When inventory will be rich,
00:07:52then inventory will be less.
00:07:54And when inventory is sold,
00:07:56as we learned in IT,
00:07:58when we prepare things
00:08:00through work-in-process,
00:08:02we enter finish-goods-divided,
00:08:04work-in-process-credited.
00:08:06And when we sell finish-goods,
00:08:08we enter CGS-divided,
00:08:10CGS-divided, finish-goods-credited.
00:08:12So, when we sell things,
00:08:14CGS will increase and inventory will be less.
00:08:16Numerator is increasing and denominator
00:08:18is decreasing. So, what will be the ratio?
00:08:20It will increase.
00:08:22What is CGS?
00:08:24It is CGS.
00:08:52Right. Shall we move ahead?
00:09:10What is the next ratio?
00:09:12I will write it.
00:09:14Return on capital employed.
00:09:22What is the formula?
00:09:24DBIT divided by capital employed.
00:09:30Equity plus. What is this?
00:09:34What is the formula?
00:09:36Equity plus. No.
00:09:40Non-creditable.
00:09:42Non-creditable.
00:09:44Return on non-creditable.
00:09:46Inventory is sold on cost.
00:09:48Profit will increase.
00:09:50Inventory is sold on cost.
00:09:52What is the guarantee?
00:09:54Profit will increase.
00:09:56Numerator will not change.
00:09:58Non-creditable.
00:10:00Numerator will not change.
00:10:02Denominator will change.
00:10:04Inventory is sold on profit.
00:10:06Profit will increase.
00:10:08Numerator will change.
00:10:10Profit will increase.
00:10:12Inventory is sold on cost.
00:10:14Profit will not increase.
00:10:16Non-creditable.
00:10:18Numerator will not change.
00:10:20Denominator will not change.
00:10:22What is the answer?
00:10:24Non-creditable.
00:10:28Now see.
00:10:30GP ratio was decreasing.
00:10:34Net profit ratio was decreasing.
00:10:36Return on non-creditable.
00:10:38Return on non-creditable.
00:10:40Return on non-creditable.
00:10:42Now tell me.
00:10:44How is this effecting?
00:10:46You have decreased the profit.
00:10:50GP ratio has decreased.
00:10:52Net profit has also decreased.
00:10:54If the GP ratio was decreasing.
00:10:56How was the GP ratio decreasing?
00:10:58Let's see this example.
00:11:00Let's see this example.
00:11:02How much did I sell for Rs.100?
00:11:04How much did I sell for Rs.100?
00:11:06How much did I sell for Rs.100?
00:11:08Rs.120.
00:11:1020% profit.
00:11:12Now there is no profit.
00:11:14GP ratio has decreased.
00:11:16Net profit has also decreased.
00:11:18If net profit is decreasing.
00:11:20Then how is this effecting?
00:11:22If net profit is decreasing.
00:11:24Then how is this effecting?
00:11:26If net profit is decreasing.
00:11:28Then how is this effecting?
00:11:30Decrease.
00:11:32Decrease.
00:11:34Net profit.
00:11:36Is there net profit?
00:11:38What should be deducted from gross profit?
00:11:42Decrease the operating expense.
00:11:44If net profit is decreasing.
00:11:46There is no tax on the finance class.
00:11:48If net profit is decreasing.
00:11:50Then what happens to PBI?
00:11:52Gross profit minus operating expense.
00:11:54Then what happens?
00:11:56Decrease.
00:11:58This argument can be used.
00:12:00I have already made this argument.
00:12:02What did I say earlier?
00:12:04What did I say here?
00:12:06That we should sell the inventory at a cost.
00:12:08Non-current assets are not affected.
00:12:10I said that non-current assets have no effect.
00:12:12It is just a matter of inventory.
00:12:14Non-current assets have their place.
00:12:16Nominator has no problem.
00:12:18Denominator has no problem.
00:12:20Who has a problem?
00:12:22Numerator.
00:12:24If the G.P. is decreasing and
00:12:26the net profit is also decreasing,
00:12:28then the net profit is not generated.
00:12:30If the G.P. is decreasing,
00:12:32then the B.B.I.T. is also decreasing.
00:12:34If the B.B.I.T. is decreasing,
00:12:36then the numerator is decreasing.
00:12:38If the numerator is decreasing,
00:12:40then what will be the ratio?
00:12:42If we think independently,
00:12:44we will say that we are selling the inventory at a cost.
00:12:46The profit will not be generated.
00:12:48This is what we will think.
00:12:50But the problem is from above.
00:12:52If the gross profit is decreasing,
00:12:54then what will be the net profit?
00:12:56It will be decreasing.
00:12:58Think about it for half a minute.
00:13:00Think about both the things.
00:13:02If we think independently,
00:13:04we will say that
00:13:06we are selling the inventory at a cost.
00:13:08The profit will not be generated.
00:13:10The profit will not be effected.
00:13:12But if the profit is not generated
00:13:14on one thing and
00:13:16it was generating earlier,
00:13:18then the gross profit is decreasing.
00:13:20If the gross profit is decreasing,
00:13:22then what will be the net profit?
00:13:24It will be decreasing.
00:13:26If the numerator is decreasing,
00:13:28then what will be the answer?
00:13:30It will be decreasing.
00:13:32Think about it for half a minute.
00:13:56Think about it for half a minute.
00:14:26What is the ratio of the numerator and denominator?
00:14:28Two times.
00:14:32Now we are saying that we are selling the inventory at a cost.
00:14:34How much are we selling?
00:14:36We are selling the inventory at a cost.
00:14:38If we sell the inventory at Rs.100,
00:14:40then what will be the cash?
00:14:42Rs.400.
00:14:44Divide it.
00:14:46What will be the answer of Rs.100?
00:14:48Four times.
00:14:50What will be the ratio?
00:14:52Increase.
00:14:56Now we have another concern.
00:14:58When you were saying that
00:15:00there is no effect on the current ratio,
00:15:02you said that
00:15:04Rs.100 is coming here.
00:15:06Ok.
00:15:08There is no effect on the current ratio.
00:15:10But what was your ratio?
00:15:12Quick ratio. What is that?
00:15:14Increasing.
00:15:16The reason is that the inventory is decreasing.
00:15:18Because in quick ratio,
00:15:20the inventory is less than the numerator.
00:15:22When it is less than the numerator,
00:15:24and on the other hand,
00:15:26the other asset increases,
00:15:28then what will be the effect on the numerator?
00:15:30Increase.
00:15:32What will be the ratio of increase in the numerator?
00:15:34Better.
00:15:36Now read this point again
00:15:38and revise the impact of 6 on 6.
00:15:40Revise it completely.
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00:18:12Okay, Hamza. This is also difficult.
00:18:14Anyway, you'll remember. Hamza, Ishal.
00:18:16And God forgive me, I don't remember my name.
00:18:19Yours?
00:18:20Rishail.
00:18:21Very good. Rishail.
00:18:24Spell it out.
00:18:25R-E
00:18:26R-E?
00:18:27S-H
00:18:28A-H
00:18:29A?
00:18:29I-N
00:18:30Yes, yes.
00:18:31Rishail.
00:18:32That's enough.
00:18:34What's your name?
00:18:35Bismal.
00:18:36Bismal.
00:18:37Bismal. This is also a different name.
00:18:39Bismal. Paro.
00:18:41Waleeja.
00:18:42Waleeja. Rishail.
00:18:44Waleeja.
00:18:45Spell it.
00:18:46W-A-L-I-J-A
00:18:48W-A-L-I-J-A
00:18:51Okay. Waleeja time.
00:18:54Waleeja.
00:18:55Who was Rishail?
00:18:57You'll remember the name, you'll remember everything.
00:19:00Yes, Anand.
00:19:02Iman.
00:19:03Aamna.
00:19:04And what does this feel like?
00:19:09Bismal.
00:19:11Bismal.
00:19:12Waleeja.
00:19:13Rishail.
00:19:14And what's your name?
00:19:16Vishal.
00:19:17Vishal.
00:19:18W-I-S-H-A-L
00:19:19What does Vishal mean?
00:19:20Akbar.
00:19:21Oh, Akbar.
00:19:22So, we'll call him Azan Wali.
00:19:25It's very difficult.
00:19:27Vishal.
00:19:28Waleeja.
00:19:29Rishail.
00:19:30Okay.
00:19:31You have very small children.
00:19:34How many names do you have in your family?
00:19:39It's called Rishal Sharif.
00:19:42Rishail.
00:19:44Waleeja.
00:19:45Vishal.
00:19:46Vishal.
00:19:47Vishal.
00:19:48Vishal.
00:19:49Vishal.
00:19:50Vishal.
00:19:51Vishal.
00:19:52Rishail.
00:19:53Waleeja.
00:19:54Rishail.
00:19:55Rishail.
00:19:57That's a good name.
00:20:09Bismal.
00:20:10Abna.
00:20:12Waleeja.
00:20:13Rishail.
00:20:14Vishal.
00:20:15Rishail.
00:20:16Rishail.
00:20:17Vishal.
00:20:18Vishal.
00:20:19Vishal.
00:20:20Vishal.
00:20:21Vishal and Waleeja.
00:20:24It's very difficult.
00:20:26Ishaan?
00:20:28Ishaan?
00:20:30Ishal.
00:20:32What is Ishal?
00:20:34Paradise.
00:20:36Paradise.
00:20:38Allah.
00:20:40Some say Jannat, some say Jannat.
00:20:42Allah is great.
00:20:44Ok.
00:20:46Sell slow moving stock items
00:20:48at a price.
00:20:50Debtors balance.
00:20:52What is the balance percentage?
00:20:54Discount.
00:20:56Why is there an entry for discount?
00:20:58When you give settlement discount to someone,
00:21:00where does it come from?
00:21:02It comes from the ITI.
00:21:04When you allow someone a discount,
00:21:06where does it come from?
00:21:08It comes from the sale.
00:21:10It comes from the sale.
00:21:12It comes from the sale.
00:21:14If your sale is less,
00:21:16let's take this example
00:21:18at this point.
00:21:20Your sale was Rs. 1200.
00:21:22CGS was Rs. 100.
00:21:24You gave a discount of Rs. 20.
00:21:26What did you give?
00:21:28After discount,
00:21:30it was Rs. 100.
00:21:32GP ratio was Rs. 0.
00:21:34GP decreased.
00:21:36Conceptually,
00:21:38when sale is less,
00:21:40price is less,
00:21:42GP is less.
00:21:44What comes from this?
00:21:46Decrease.
00:21:48If gross profit decreases,
00:21:50the effect of this
00:21:52does not come under GP.
00:21:54The story ends at the top.
00:21:56If GP is less,
00:21:58net profit is also less.
00:22:00If net profit is less,
00:22:02the effect of
00:22:04retirement and job
00:22:06is also less.
00:22:10If sale price is less,
00:22:12because there is a discount,
00:22:14discount allows sale to be less.
00:22:16If discount allows sale to be less,
00:22:18then sale will be less.
00:22:20If sale price is less,
00:22:22then GP will be less.
00:22:24If GP is less,
00:22:26then GP ratio will be less.
00:22:28If net profit is less,
00:22:30then PBI will be less.
00:22:32In all three, numerator is less.
00:22:34So, the ratio of numerator
00:22:36decreases.
00:22:46Question from the audience.
00:22:54It may be a problem for me to speak.
00:22:56I have given you the concept.
00:22:58When you give me a discount
00:23:00of Rs. 120,
00:23:02when you give me a discount of Rs. 20,
00:23:04what will you enter?
00:23:06First, you will enter
00:23:08debit receivables,
00:23:10credit sales,
00:23:12for example, Rs. 120.
00:23:14If you give me a discount of Rs. 20,
00:23:16what will you enter?
00:23:18You will debit cash
00:23:20from Rs. 100.
00:23:22And you will debit discount
00:23:24allowed sales
00:23:26from Rs. 20.
00:23:28And who will you give credit?
00:23:30Receivables from Rs. 120.
00:23:32So, sale will be less.
00:23:34So, sale from Rs. 120
00:23:36will be Rs. 100.
00:23:38So, GP will be less.
00:23:40If GP is less,
00:23:42then GP ratio will also decrease.
00:23:44If GP is less,
00:23:46then net profit will also decrease.
00:23:48And if net profit is decreasing,
00:23:50then return on non-grant asset will also be less.
00:23:52Question from the audience.
00:24:06GP over sales.
00:24:08What is the formula?
00:24:10How much was the sale of Rs. 120?
00:24:12120.
00:24:14What is the answer?
00:24:2016.67%.
00:24:2216.67%.
00:24:24Ok.
00:24:2616.67%.
00:24:28Now, what is the GP ratio?
00:24:34What is the GP ratio?
00:24:360.
00:24:38What is the answer?
00:24:400.
00:24:42Is it decreasing or not?
00:24:44I have reduced it.
00:24:46I have reduced both sales and GP.
00:24:48What is the answer?
00:24:50It is decreasing.
00:24:52It is not necessary.
00:24:54Both numerator and denominator are decreasing.
00:24:56We will also check the proportion.
00:24:58We will check the proportion
00:25:00with which the ratio is decreasing.
00:25:02Any objection?
00:25:04And if GP is less,
00:25:06then net profit will also be less.
00:25:08If net profit is decreasing,
00:25:10then the ratio of return will also be less.
00:25:12Return on capital employed will also be less.
00:25:14Return on assets will also be less.
00:25:16Sir, I have a question.
00:25:18Agarwala.
00:25:20Agarwala, you ask first.
00:25:22Sir, I have a question.
00:25:24Sir, if net profit increases,
00:25:26then what will happen to the asset?
00:25:32If net profit is increasing for some reason,
00:25:34then if the reason is
00:25:36finance cost or tax,
00:25:38then it will go down.
00:25:40Then it will be because of two expenses.
00:25:42Adamant and selling.
00:25:44If net profit is increasing,
00:25:46then PBIT will also increase.
00:25:48Then the ratio of PBIT and return will also increase.
00:25:50Whenever net profit increases,
00:25:52then it means PBIT is increasing.
00:25:54PBIT is increasing because
00:25:56numerator is increasing.
00:25:58And if numerator increases,
00:26:00then the ratio will also increase.
00:26:02Okay.
00:26:04What is the next ratio?
00:26:06Current ratio.
00:26:08What will happen in current ratio?
00:26:10Here is the current ratio.
00:26:14In current ratio,
00:26:16for example,
00:26:18let's take receipt instead of inventory.
00:26:24We already have cash.
00:26:26And how much do we take on receipt?
00:26:28100.
00:26:30They gave us Rs.100.
00:26:32But after discount.
00:26:36After 10% discount,
00:26:38how much will we get?
00:26:40Rs.90.
00:26:42So how much cash will we get?
00:26:44Rs.90.
00:26:46The first answer is broken.
00:26:48What is the answer?
00:26:501.99.
00:26:52What is the ratio?
00:26:54Decrease.
00:26:56I explained it clearly.
00:27:00How much was receivable?
00:27:02Rs.100.
00:27:04After 10% discount,
00:27:06how much will we get?
00:27:08Rs.90.
00:27:10Asset is decreasing from Rs.100.
00:27:12And asset increase is decreasing from Rs.90.
00:27:14So effectively, current ratio is decreasing from Rs.10.
00:27:16And if it is decreasing from Rs.10,
00:27:18then numerator is decreasing,
00:27:20numerator is decreasing.
00:27:22What is the ratio?
00:27:24Let's see.
00:27:30Let's see.
00:27:40Let's relate it with the equation.
00:27:46Let's solve the equation.
00:27:48Let's divide it.
00:27:50300.
00:27:52Cash is Rs.200.
00:27:54And receivable is Rs.100.
00:27:56What is receivable?
00:27:58Rs.100.
00:28:00Inventory is not changing.
00:28:02Current liability is not changing.
00:28:04But what is receivable?
00:28:06Rs.0.
00:28:08But what is the ratio?
00:28:10Rs.90.
00:28:12How much cash will we get?
00:28:14Rs.290.
00:28:16What is the ratio?
00:28:18Rs.90.
00:28:20Receivable is Rs.100.
00:28:22But how much cash will we get?
00:28:24Inventory will remain the same.
00:28:26Because we are not selling the inventory.
00:28:28What is the answer?
00:28:301.
00:28:321.
00:28:34What is the ratio?
00:28:36Decrease.
00:28:38We will go to the ratio of this.
00:28:40See, will you understand the ratio?
00:28:42Yes.
00:28:44See this.
00:28:46We had current asset cash Rs.100.
00:28:48Receivable Rs.100.
00:28:50Inventory Rs.100.
00:28:52Current liability Rs.100.
00:28:54Now what happened?
00:28:56This is our quick ratio.
00:28:58We are not selling the inventory.
00:29:00Inventory will remain Rs.100.
00:29:02But I forgave receivable of 10%.
00:29:04So receivable is Rs.100.
00:29:06How much did I give? Rs.90.
00:29:08So receivable is Rs.100.
00:29:10I added Rs.90 in cash.
00:29:12So it is Rs.290.
00:29:14Rs.290- Rs.100.
00:29:16Rs.190 divided by Rs.100.
00:29:18Is it clear?
00:29:20Yes.
00:29:501.
00:29:522.
00:29:543.
00:29:564.
00:29:585.
00:30:006.
00:30:027.
00:30:048.
00:30:069.
00:30:0810.
00:30:1011.
00:30:1212.
00:30:1413.
00:30:1614.
00:30:1815.
00:30:2016.
00:30:2217.
00:30:2418.
00:30:2619.
00:30:2820.
00:30:3021.
00:30:3222.
00:30:3423.
00:30:3624.
00:30:3825.
00:30:4026.
00:30:4227.
00:30:4428.
00:30:4629.
00:30:4830.
00:30:5031.
00:30:5232.
00:30:5433.
00:30:5634.
00:30:5835.
00:31:0036.
00:31:0237.
00:31:0438.
00:31:0639.
00:31:0840.
00:31:1042.
00:31:1243.
00:31:1444.
00:31:1645.
00:31:1846.
00:31:2047.
00:31:2248.
00:31:2449.
00:31:2650.
00:31:2851.
00:31:3052.
00:31:3253.
00:31:3454.
00:31:3655.
00:31:3856.
00:31:4057.
00:31:4258.
00:31:4459.
00:31:4660.
00:31:4861.
00:31:5062.
00:31:5263.
00:31:5464.
00:31:5665.
00:31:5866.
00:32:0067.
00:32:0268.
00:32:0469.
00:32:0670.
00:32:0871.
00:32:1072.
00:32:1273.
00:32:1474.
00:32:1675.
00:32:1876.
00:32:2077.
00:32:2278.
00:32:2479.
00:32:2680.
00:32:2881.
00:32:3082.
00:32:3283.
00:32:3484.
00:32:3685.
00:32:3886.
00:32:4087.
00:32:4288.
00:32:4489.
00:32:4690.
00:32:4891.
00:32:5092.
00:32:5293.
00:32:5494.
00:32:5695.
00:32:5896.
00:33:0097.
00:33:0298.
00:33:0499.
00:33:0610.
00:33:0812.
00:33:1013.
00:33:1214.
00:33:1415.
00:33:1616.
00:33:1817.
00:33:2018.
00:33:2219.
00:33:2420.
00:33:2621.
00:33:2822.
00:33:3023.
00:33:3224.
00:33:34No effect.
00:33:38Done?
00:33:40Done?
00:33:42Okay, next.
00:33:44Which item is going on now?
00:33:46Item number 4.
00:33:48Okay, now it says that
00:33:50your GP has no effect.
00:33:52Right, friends?
00:33:54Now, we can usually
00:33:56presume that if the GP
00:33:58is not changing, then the debt problem will not change.
00:34:00But that is not the case.
00:34:04Question?
00:34:08We have...
00:34:10Listen carefully.
00:34:12We know that we have two types of costs.
00:34:14Variable and fixed.
00:34:16Like rent etc.
00:34:18If your variable was Rs. 5
00:34:20earlier, then we know that
00:34:22variable cost is the expense
00:34:24that changes with activity.
00:34:26For example, if the sale is double, then that expense
00:34:28will also double.
00:34:30There are two opinions on this.
00:34:32Fixed cost is the expense that
00:34:34does not change with activity.
00:34:36For example, your rate was Rs. 5 earlier.
00:34:38So, tell me,
00:34:40how much is here? Rs. 5.
00:34:42Minus both expenses.
00:34:44Tell me, what will be the net profit?
00:34:46Here?
00:34:4810 and here?
00:34:50How much will it be?
00:34:5215?
00:34:5425?
00:34:56Any other question?
00:34:58What is the net profit ratio
00:35:00here?
00:35:02NQ over sale.
00:35:0410 divided by sale is 120.
00:35:06Multiply by 100.
00:35:08And how much is this?
00:35:1025 divided by?
00:35:12240. Multiply by 100.
00:35:14Tell me the answer.
00:35:20How much was this?
00:35:228.3.
00:35:248.3 percent.
00:35:30Tell me, what is the net profit?
00:35:3640 minus 15.
00:35:40Minus expenses from gross profit.
00:35:44What will be the net profit
00:35:46if expenses are minused from gross profit?
00:35:48Net profit.
00:35:50And then, whom did I actually relate to?
00:35:52Your variable cost will change.
00:35:54If production is double,
00:35:56then variable cost will also double.
00:35:58But fixed cost will change.
00:36:00If not, then fixed cost will increase.
00:36:02I have proved it.
00:36:04The first answer is 8.3 percent.
00:36:06Now, what is the ratio?
00:36:0810.4 percent.
00:36:10What is the ratio?
00:36:12It has increased.
00:36:14Now, that myth is also broken.
00:36:16As GP changes, so does the net profit.
00:36:18GP is not changing.
00:36:20But due to some fixed cost,
00:36:24GP is not changing.
00:36:26GP is doubling.
00:36:28GP percentage is not changing.
00:36:32GP percentage is not changing.
00:36:34GP has increased.
00:36:36So, GP margin will remain the same.
00:36:38But GP has doubled.
00:36:40Expenses have doubled.
00:36:42Some expenses have doubled.
00:36:44Fixed cost will remain the same.
00:36:46So, the fixed cost is not increasing.
00:36:48But GP margin has doubled.
00:36:50So, the net profit has increased.
00:36:52Learn from the board.
00:36:54See if it is clear or not.
00:36:56If you don't understand, I will explain again.
00:36:58How did I increase the net profit ratio?
00:37:22How did I increase the net profit ratio?
00:37:52How did I increase the net profit ratio?
00:38:22How did I increase the net profit ratio?
00:38:24So that's it.
00:38:28If you got any questions, let me know.
00:38:41Good bye.
00:38:44So now we are here.
00:38:46Does anyone have a problem?
00:38:48Understood?
00:38:50Ok, you ask me.
00:38:52How much was the sale before?
00:38:56It was Rs.120.
00:38:58And now the sale will be double.
00:39:00And how much was the CGS before?
00:39:02Rs.20.
00:39:04And how much was the margin?
00:39:06I told you the percentage before.
00:39:0816.67%.
00:39:10And when we doubled the sale
00:39:12and did it on the same margin,
00:39:14it didn't change.
00:39:16The cross profit didn't change.
00:39:18But the cross profit is doubling.
00:39:20It's 20-40 but with the same margin.
00:39:22So the GP has no effect.
00:39:24Now we have some variable expenses.
00:39:26What do we call some expenses?
00:39:28Fixed expenses.
00:39:30Variable expenses will double.
00:39:32If the activity doubles,
00:39:34the expenses will double.
00:39:36If the activity is 4 times,
00:39:38the variable expenses will also be 4 times.
00:39:40So the expenses are fixed.
00:39:42So we fixed them.
00:39:44Practically fixed.
00:39:46So how much was the profit before?
00:39:48It was Rs.10.
00:39:50Now it's Rs.25.
00:39:52The net profit ratio formula
00:39:54is net profit over sales.
00:39:56If I divide 10 by sales,
00:39:58my answer is 8.3%.
00:40:00If I divide 25 by net profit,
00:40:02my answer is 10.4%.
00:40:04So the ratio has increased.
00:40:06Any problem?
00:40:08Clear?
00:40:10Okay.
00:40:12Any other problem?
00:40:14Okay, prove.
00:40:16He said that if there is a finance cost,
00:40:18is the finance cost fixed or variable?
00:40:22It's variable.
00:40:24It means that when the production comes,
00:40:26I take a loan.
00:40:28Every new unit is made,
00:40:30I take a loan from the bank.
00:40:32If I make 10 shares today,
00:40:34I will take a loan from the bank.
00:40:36If I make 2 shares today,
00:40:38I will take a loan from the bank.
00:40:40If I make 10 shares today,
00:40:42I will take a loan from the bank.
00:40:44The loan changes with every new unit.
00:40:46Right?
00:40:48If the loan doesn't change,
00:40:50how will the finance cost change?
00:40:52It's a fixed cost.
00:40:54If the production comes,
00:40:56I have to pay interest on the loan.
00:40:58If you have a lot of problems
00:41:00with the finance cost,
00:41:02you can change the rent
00:41:04with the interest rate.
00:41:20If the business goes bad,
00:41:22if the owner dies,
00:41:28If the owner dies and the business goes bad,
00:41:30then
00:41:34What if there is no accounting?
00:41:38What if there is no C?
00:41:41If there is no C, then we can do anything, right?
00:41:45If there is no A, then we can do anything?
00:41:49What if there is no A, then?
00:41:53What happens with A?
00:41:58If you understand anything hypothetically,
00:42:01if there is something very relevant, then it is understood.
00:42:05Otherwise, my teachers don't give the answer.
00:42:09I have studied with Mr. Farwan Mian Ahmed Farhan.
00:42:13In Lahore.
00:42:15Because I have studied and taught in Lahore for 4-5 years.
00:42:19From 2008 to 2019, I have studied in Lahore.
00:42:22That's why all the teachers are our colleagues.
00:42:26In fact, you must have heard the name, Shahid, Ana Naveer.
00:42:29We are classmates.
00:42:31We studied in Lahore together.
00:42:34I had a connection with Dawood before CA.
00:42:37We had gone to King Edward to get farm free.
00:42:40For medical entry test.
00:42:42He was standing behind me.
00:42:44He greeted me.
00:42:46I asked him, where are you doing this test?
00:42:48He said, I am doing it in PICS.
00:42:50I said, I am doing it in STAR.
00:42:52He greeted me.
00:42:54I said, I take test exchange from you.
00:42:57You are from STAR and I am from PICS.
00:42:59He said, this is a good idea.
00:43:01We went to Samnabad.
00:43:04I and Dawood went there.
00:43:07He came and took my photo.
00:43:09I gave him the copy and he took the copy.
00:43:12Then we went to Madhubali.
00:43:14We saw farm free in Madhubali.
00:43:16I asked him, where are you from?
00:43:18He said, I am from PICS.
00:43:20Then Naveed.
00:43:22How did I come to PICS?
00:43:24Naveed is a very good friend of mine.
00:43:26Rana Naveed, who teaches law.
00:43:28He teaches law.
00:43:30We were poor people.
00:43:33We used to get Rs.25,000-3,000 from home.
00:43:35We used to run out of money on every 22nd.
00:43:41Rs.25,000 with hostel.
00:43:44Hostel rent, food, clothes, notes, everything was Rs.25,000.
00:43:51And Rs.25,000 was so much that we used to run out on 22nd.
00:43:54We used to run out on 22nd.
00:43:56We used to run out on 22nd.
00:43:59Then we used to go to my brother's place.
00:44:01I had 3-4 ATMs.
00:44:03He was a friend of Dawood.
00:44:05I used to go to him and ask him for Rs.25,000.
00:44:08He used to say, give me Rs.1,000.
00:44:10He gave me Rs.25,000.
00:44:12My father used to send me to Yaqab.
00:44:14I used to go to Yaqab.
00:44:16I used to ask him, I have to go to Yaqab.
00:44:18He used to say, give me Rs.25,000.
00:44:20I used to go to Yaqab.
00:44:22He used to send me to Yaqab.
00:44:24After the 2nd time he gave me Rs.1,000.
00:44:26After the second time too, he gave me Rs.1,000.
00:44:28Next time he beast me.
00:44:30And every 3 months, he gives me Rs. 1,000.
00:44:34If I didn't go to someone for those 3-4 months,
00:44:38Bhakta bhai used to take Rs.1,000 and make fun.
00:44:46That is how, you spent time.
00:44:48We used to have a shortage.
00:44:49I will get Rs. 3500 and then Rs. 3500.
00:44:51So, he will get Rs. 3500 and I will get Rs. 3500.
00:44:53I am with him.
00:44:55It just goes by.
00:44:57I don't know, he has more money than me.
00:44:59He is a good person for me.
00:45:01When I told him, what is going on, how many papers are left,
00:45:03he said, how many are left for C, I said, how many are left for A,
00:45:05I said, how many are left for B, he said, there are 5 more left.
00:45:07I said, what are you doing?
00:45:09He said, I go to RISE.
00:45:11RISE has made a new college.
00:45:13It was in 2008.
00:45:15He said, I go there.
00:45:17You have to make a test, you have to check,
00:45:19you don't have time, you don't have to sit in the front desk,
00:45:21you have to go for the admission.
00:45:23I said, is there a place?
00:45:25He said, come in the morning.
00:45:27He said, you have to meet Bhatti sir.
00:45:31So, I went there in the morning.
00:45:33I met Bhatti sir.
00:45:35I had an interview with Bhatti sir.
00:45:37Now, usually,
00:45:39those TAs,
00:45:41nowadays, they get Rs. 10,000-15,000.
00:45:43At that time,
00:45:45someone told me that I will get Rs. 6,500.
00:45:47I said, that's too much.
00:45:49One person gets Rs. 3,500,
00:45:51and starts getting Rs. 6,500.
00:45:53I talked to Naveed.
00:45:55I told Naveed to say Rs. 6,500.
00:45:57He said, you won't get Rs. 6,500.
00:45:59He said, I will take Rs. 10,000,
00:46:01you also take Rs. 10,000.
00:46:03He said, go back.
00:46:05He said, my bag is Rs. 10,000.
00:46:07Otherwise, he could have said, Rs. 6,500 is fine.
00:46:09He said, when TAs get Rs. 10,000,
00:46:11you also get Rs. 10,000.
00:46:13I asked, why are you laughing?
00:46:15He said, it's fine.
00:46:17I said, Rs. 35,000,
00:46:19you also get Rs. 10,000.
00:46:23At that time, I was
00:46:25the richest man in the world.
00:46:27And then, we ate so much pizza.
00:46:29We ate so much pizza in Delhi.
00:46:31There was another teacher,
00:46:33I don't remember his name.
00:46:35He used to call me every few seconds.
00:46:37He used to say, have you eaten pizza?
00:46:39I used to say, yes.
00:46:41I had a younger brother,
00:46:43he was also a teacher.
00:46:45He came to me.
00:46:47Once, he came to Lahore.
00:46:49I had a few days off.
00:46:51In the evening,
00:46:53he used to say,
00:46:55are you not eating roti today?
00:46:57I used to say, are you hungry?
00:46:59He used to say,
00:47:01I have been eating pizza since 10 days.
00:47:03I used to say, don't eat pizza.
00:47:05I still say,
00:47:07I have eaten food of two people.
00:47:09If someone offers me a pizza,
00:47:11I consider that refusal as kufr.
00:47:13I used to say, I am hungry,
00:47:15I still want to eat pizza.
00:47:17So, I ate a lot.
00:47:19My father used to say,
00:47:21save your son, eat him.
00:47:23My father never said,
00:47:25save him, stop him.
00:47:27He used to say, eat him first.
00:47:29First, save your life, then give him.
00:47:31My father never said,
00:47:33send me or keep me.
00:47:35He used to say, eat my son.
00:47:37He used to say,
00:47:39I eat so much,
00:47:41that if I am in Patna,
00:47:43I should go to Lahore at least once in my life.
00:47:45That is why I say,
00:47:47have you not seen Lahore?
00:47:49Lahore,
00:47:51no doubt,
00:47:53there is smoke in summers,
00:47:55there is fog in winters,
00:47:57there is pollution,
00:47:59but,
00:48:01Lahore,
00:48:03it is the fate of donkeys,
00:48:05let's move ahead.
00:48:07Let's move ahead.
00:48:09Offer is a tender.
00:48:11See, a man is shocked,
00:48:13that a donkey has been eaten.
00:48:15And if Allah wants to save you,
00:48:17let's move ahead.
00:48:19Offer, why are you worried?
00:48:21To whom this may concern?
00:48:23If you talk about donkeys,
00:48:25yes, donkeys will get donkey meat,
00:48:27which Allah wants to save.
00:48:29Let's move ahead.
00:48:31Offer is a bad situation,
00:48:33a good situation,
00:48:35in a bad situation,
00:48:37you are not worried.
00:48:39I have already told you,
00:48:41when my mother got cancer,
00:48:43my father used to send money,
00:48:45she never had a heart attack.
00:48:47All this happened after her heart attack,
00:48:49when she was 25-35 years old.
00:48:51Otherwise, when I did FSC,
00:48:53I went to GC Multan.
00:48:55My mother had cancer,
00:48:57she was being treated
00:48:59by Shaukat Khanam.
00:49:01He used to charge a lot of money.
00:49:03We didn't know how to pay,
00:49:05how to get a discount.
00:49:07Later we came to know,
00:49:09that we were free.
00:49:11At that time, all the money
00:49:13we used to get,
00:49:15was from Shaukat Khanam.
00:49:17In those days,
00:49:19I saw that it was not appropriate
00:49:21to ask my father for money.
00:49:23Although he did not say no,
00:49:25he still sent money to him.
00:49:27But I saw it as an effort.
00:49:29We used to park our cars outside.
00:49:31We used to pay Rs 250 for a car.
00:49:33We used to get 4 cars for Rs 1000.
00:49:35What is there to be ashamed of?
00:49:37What is there to be ashamed of?
00:49:39There is no shame in hard work.
00:49:41There is a shame in theft,
00:49:43there is a shame in bribery,
00:49:45there is a shame in Haram,
00:49:47but what is there to be ashamed of in Halal?
00:49:49No matter what the situation is,
00:49:51Allah has kept an eye on it.
00:49:53It is written here,
00:49:55we have offer extended 90 days,
00:49:57we have increased sales at existing markets,
00:49:59but the market has not changed.
00:50:01And I have seen from examples,
00:50:03that the net profit has changed.
00:50:05And if the net profit increases,
00:50:07what do you think will happen?
00:50:09It will increase.
00:50:23Does anyone have any objection?
00:50:25Let's move ahead.
00:50:27What is the next ratio?
00:50:29Current Ratio.
00:50:31What do we have in current ratio?
00:50:33We have current assets
00:50:35divided by current liabilities.
00:50:37And what am I doing with this?
00:50:39What is the event?
00:50:41I am giving the event in extended credit terms.
00:50:43And what is the reason for my sales?
00:50:45Is the sale increasing or decreasing?
00:50:47Sales are increasing.
00:50:49Sales are increasing.
00:50:51The sale is increasing.
00:50:53The cash will increase.
00:50:55The receivables will increase.
00:50:57In both the cases,
00:50:59my generator will increase.
00:51:01Current liabilities will not change.
00:51:03That is why my ratio will increase.
00:51:05How to increase?
00:51:07Give advice for half a minute.
00:51:09There is no need to give advice for all ratios.
00:51:15Keep the event in front.
00:51:17No need to give advice for all ratios.
00:51:23Keep the event in front.
00:51:45Let's move ahead.
00:51:47Is it clear?
00:51:49The next question is
00:51:51Stock turnover ratio.
00:51:53Stock turnover ratio
00:51:55will increase the inventory.
00:51:57What will happen by giving a discount?
00:51:59What will happen by giving extended credit?
00:52:01Inventory will increase.
00:52:03When will the inventory decrease?
00:52:05CGS will increase.
00:52:11What am I giving to people?
00:52:13Extended credit.
00:52:15When will the inventory decrease?
00:52:17CGS will increase.
00:52:19When will CGS increase?
00:52:21Increase.
00:52:23When will the inventory decrease?
00:52:25Increase.
00:52:37This is a concept
00:52:39which I have learned from Zain.
00:52:41Repeating the same thing
00:52:43means that you put a return first
00:52:45and then forget.
00:52:47You put a return again
00:52:49and then forget.
00:52:51If it is a concept,
00:52:53then a person doesn't forget.
00:52:55When I prepare inventory,
00:52:57I put material in the working process.
00:52:59I put labor.
00:53:01Everything goes in the working process.
00:53:03When things are ready,
00:53:05things don't go in the working process.
00:53:07They go in the finished goods.
00:53:09Finished goods debit and working process credit.
00:53:11When will the inventory decrease?
00:53:13CGS debit and inventory credit.
00:53:15The inventory decreases
00:53:17and the inventory sold
00:53:19is debit.
00:53:21This is a basic concept
00:53:23that when we sell inventory,
00:53:25CGS, debit and inventory
00:53:27should decrease.
00:53:33When will the inventory decrease?
00:53:35When will CGS increase?
00:53:37If CGS is an numerator, then it will increase.
00:53:39When will the denominator decrease?
00:53:41Increase.
00:53:43What is the last problem?
00:53:45Quick ratio
00:53:47What will happen in quick ratio?
00:53:49This is quick ratio
00:53:51In quick ratio, inventory is less
00:53:53If inventory is sold, then what will happen to inventory?
00:53:55Less
00:53:57And from here, cash is receivable
00:53:59If it increases, then what will happen to numerator?
00:54:01Increases
00:54:03Cash receivable is 200
00:54:05Inventory is 100
00:54:07If inventory is sold for 100, then what will happen?
00:54:09300
00:54:11200-100
00:54:13And now what will happen?
00:54:15300 will be of numerator
00:54:17If inventory is of numerator, then what will happen to ratio?
00:54:19Increases
00:54:21Inventory is 0.5
00:54:27Question was for 17 minutes
00:54:29Bro
00:54:35Clear?
00:54:37Let's go to the last event
00:54:39Let's go to the last event
00:54:41I will tell again
00:54:43Clear?
00:54:45I will tell again
00:54:47The first case was
00:54:49You had 200 inventory
00:54:51200 cash receivable
00:54:53100 inventory
00:54:55So your current asset for quick ratio was 100
00:54:57Now you gave a credit to the extended
00:54:59So things got more simple
00:55:01For example, you sold inventory for 100
00:55:03And 100 means cash
00:55:05So now
00:55:07If there is no minus of 300
00:55:09Then what will happen to numerator?
00:55:11Numerator will increase
00:55:13Increases
00:55:15Does anyone have any objection?
00:55:17Shall we move ahead?
00:55:19Yes
00:55:21Next was
00:55:23Dispose of some non-current asset at gain
00:55:25You are selling an asset at gain
00:55:27When you sell at gain
00:55:29Then the gain on disposal
00:55:31Comes under GP
00:55:33There will be no sale effect on GP
00:55:35No sales effect
00:55:37No CGS
00:55:39No effect
00:55:45Why?
00:55:47If non-current asset is sold at gain
00:55:49Then what happens to the gain on non-current asset?
00:55:51It comes under GP
00:55:53It comes under GP
00:55:55GP does not change
00:55:57So what happens to GP?
00:55:59No effect
00:56:01But profit will increase from gain
00:56:03So what will happen to this?
00:56:05Increase
00:56:07And if profit increases then what will happen to non-current asset?
00:56:09Increase
00:56:11Let's see
00:56:13All three have problems
00:56:33What do you think, shocked!
00:56:39All three are wrong
00:56:41Return
00:56:43See
00:56:45Write it
00:56:47Return on non-current asset
00:56:4950 prepared for Rs 100
00:56:51And on non-current asset prepared Rs 1000
00:56:53Fine
00:56:55What does this say?
00:56:57Multiply 100
00:56:59No
00:57:01Retirement is a non-current answer.
00:57:03You will have to look at it and decide.
00:57:05Your memory is very beautiful.
00:57:07PDIT, Divider, and Down.
00:57:09If you look at the rest of the answers,
00:57:11you will have to leave it.
00:57:13Not 100%?
00:57:15Not 100?
00:57:17Retirement is a non-current answer.
00:57:19It is not in percentage?
00:57:21It is in percentage.
00:57:23Lenses are a non-current answer?
00:57:25Yes, it is a non-current answer.
00:57:27What is this bullet?
00:57:2910%?
00:57:31Now you say
00:57:33I have sold Rs.100 worth of assets for Rs.120.
00:57:35How much did you sell?
00:57:37Rs.100 worth of assets?
00:57:39Cash is Rs.120.
00:57:41Return down value
00:57:43is Rs.100.
00:57:45What will be the property?
00:57:47What will be the gain?
00:57:49Rs.20. So add Rs.20 to the gain.
00:57:51Return is a non-current answer.
00:57:53The gain will be Rs.120.
00:57:55How much will you sell Rs.100 worth of assets?
00:57:57Rs.100 worth of assets?
00:57:59Rs.100 worth of multi-brand assets?
00:58:01Tell me.
00:58:03Rs.30.3.
00:58:05Increase or decrease?
00:58:11How much did you sell Rs.100 worth of assets?
00:58:13Rs.120.
00:58:15Add Rs.20 to the gain.
00:58:17Return is a non-current answer.
00:58:19Simple formula.
00:58:21Return is a non-current answer.
00:58:23Property is a non-current answer.
00:58:25Both the facts are happening.
00:58:27Both the facts are happening.
00:58:29What should we do in the paper?
00:58:31It is a question of 17 numbers.
00:58:3330-35 minutes.
00:58:35Write it down on the formula page.
00:58:37Keep doing the false amounts.
00:58:39Increase or decrease?
00:58:45Return is Rs.120.
00:58:47When you make a disposal in P,
00:58:49Return down value is Rs.100.
00:58:51If you sell above, it is a gain.
00:58:53If you sell below, it is a loss.
00:58:55Rs.100 worth of assets is Rs.120.
00:58:57If you sell below Rs.120,
00:58:59what happens to Rs.20?
00:59:01It is a gain.
00:59:03Add it to the gain.
00:59:05Rs.100 worth of assets is less.
00:59:07First, Rs.100 worth of assets was a profit.
00:59:11How much was the profit before?
00:59:15Listen.
00:59:17First, profit was Rs.100.
00:59:19Assets were Rs.1000.
00:59:21Assets were Rs.100 out of Rs.1000.
00:59:23Assets were Rs.900.
00:59:25Assets were Rs.120.
00:59:27Rs.20 was a gain.
00:59:29Rs.20 was added to the profit.
00:59:31How much was the profit before?
00:59:33It was Rs.120.
00:59:35Assets were Rs.120.
00:59:39Don't reject things.
00:59:41Look at it conceptually.
00:59:43Read it.
00:59:45Understand it.
00:59:47Let's move ahead.
00:59:49Dispose of some non-current asset
00:59:51is a gain.
00:59:53Current ratio.
00:59:57What happens in current ratio?
00:59:59Effect is stuck.
01:00:01When I sell an asset,
01:00:03if I sell it on loan,
01:00:05receivables will increase.
01:00:07If I sell it on cash,
01:00:09cash will increase.
01:00:11Current ratio will also increase.
01:00:13What happens to current ratio?
01:00:15It is a gain.
01:00:17What happens to current ratio?
01:00:19It is a loss.
01:00:21Let me give you another example.
01:00:25Inventory will not change.
01:00:27But if I sell it on cash,
01:00:29receivables will increase.
01:00:31Numerator will increase.
01:00:33Current ratio will also increase.
01:00:41What is the last example?
01:00:43Stock number ratio.
01:00:45I am selling stock.
01:00:47Stock number is related only to inventory.
01:00:49Inventory will give CGS effect.
01:00:51There is neither CGS nor inventory.
01:00:55What is the answer?
01:00:57No effect.
01:01:01Increase, decrease and no effect
01:01:03is very important for paper.
01:01:07Tell me quickly.
01:01:15Is the party clear?
01:01:29Page number 75.
01:01:33I have sent you the question.
01:01:35Spring phase question.
01:01:37It is HITI limited.
01:01:39Or HITARI limited.
01:01:41HITARI limited.
01:01:55HITATI limited.
01:02:11HITATI limited.
01:02:25HITATI limited.
01:02:27HITATI limited.
01:02:41HITATI limited.
01:02:43HITATI limited.
01:03:11Table 1.
01:03:19Table 2.
01:03:23Table 3.
01:03:27Table 4.
01:03:31Table 5.
01:03:37Table 6.
01:03:41I have 40.
01:03:43I have 40.
01:03:45I have 40.
01:03:47I have 40.
01:03:49I have 40.
01:03:51I have 40.
01:03:53I have 40.
01:03:55I have 40.
01:03:57I have 40.
01:03:59I have 40.
01:04:01I have 40.
01:04:03I have 40.
01:04:05I have 40.
01:04:07I have 40.
01:04:09Ladies and gentlemen.
01:04:11Please ask your questions.
01:04:13Please ask your questions.
01:04:15Please ask your questions.
01:04:18Sabreen's question number 3.
01:04:20Sabreen's question number 3.
01:04:21You are working as a finance manager of HTMT.
01:04:23You are working as a finance manager of HTMT.
01:04:25A new CF has joined HL.
01:04:27And has recommended changes to accounting policy.
01:04:29Related to assets to improve.
01:04:31IAS financial ratios.
01:04:33In the next manager's order.
01:04:35This is a question about investment property.
01:04:37You haven't increased investment property.
01:04:39It will not happen.
01:04:41You have to leave this question.
01:04:43You have to try 2 questions at home.
01:04:45You have to try 2 questions at home.
01:04:47It doesn't matter what the question is.
01:04:49You must try the question.
01:04:51Try all the questions.
01:04:53Like you try for EPS.
01:04:55Thank you.
01:04:57Like you try for EPS.
01:04:59Listen.
01:05:01Listen.
01:05:03Try questions like these.
01:05:05Try questions like these.
01:05:07Try questions like these.
01:05:09Try questions like these.
01:05:11It is an investment property.
01:05:13We'll talk about this later.
01:05:15Religion or atheism, religion or atheism.
01:05:17What you have to do is,
01:05:18first of all, anyone can try, it's freedom.
01:05:20What you have to do is,
01:05:21you have to do 20 objectives first.
01:05:23This objective is very tough.
01:05:25Which will have the effect of increase and decrease.
01:05:27But how many objectives are there in total?
01:05:32How many?
01:05:36There's one.
01:05:39You have to do 20 objectives first.
01:05:42You have to do 20 objectives first.
01:05:46What do you have to do?
01:05:47You have to do 20 objectives first,
01:05:49and then you have to ask a question.
01:05:51This question is yours.
01:05:53Did we take this question in class?
01:05:56And the one about spring rain,
01:05:58was it limited?
01:05:59We didn't take it?
01:06:04Spring rain,
01:06:05we have asked this question in class.
01:06:07There were ratios,
01:06:08there were reasons below,
01:06:10what was there yesterday?
01:06:11We are doing comprehension time,
01:06:13and you have to tell me,
01:06:14what is the reason for 20 ratios?
01:06:15There are 7 questions for spring rain,
01:06:17and they are commonly limited.
01:06:19You have to do this,
01:06:20and first you have to do 20 objectives.
01:06:22In 2-3 of the objectives,
01:06:24you might be stuck.
01:06:25If you get stuck in 2-3,
01:06:27we will take it in class.
01:06:29First 20 objectives,
01:06:30and then common limited.
01:06:32Right, friend?
01:06:33First you have to do it yourself,
01:06:34try 20-25 minutes.
01:06:35Then you can answer.
01:06:37You have to do 20-25 minutes yourself,
01:06:39so that you know,
01:06:40what are the ratios you have to learn.
01:06:42Right, friend?
01:06:43If there are questions,
01:06:45and 75% objectives,
01:06:47then it means you are going in the right direction.
01:06:49Right, Varun?
01:06:51I will do it in class tomorrow.
01:06:56Yes, sir.