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Assignment No 2
Topic Name:
Submitted To
Most Respectable,
Submitted By
Semester 1st
Allama Iqbal Open University, the First Distance Education University in South
Asia that caters to the educational needs of 1.3 million students to enable them
to study at their own place, at their own pace and at their own convenience.
Duration: 2 Years
Course Required: 19 courses of 3 credit hours each and a project of 6 credit hours.
This report is dedicated to the greatest man in the world that shows us the right path. Who is
the great patron of the mankind that is Holy Prophet Hazrat Muhammad (PBUH).
I would also like to dedicate this small effort of extract to my Parents and Teachers.
They have always been a shining star to look upon, to give light and to show me the directions
whenever I am lost. May Allah give them more strength and long life to guide me forever
Ameen
ACKNOWLEDGEMENT
All gratitude and thanks to almighty “ALLAH” the gracious, the most merciful and beneficent
who gave me courage to undertake and complete this task.
I am very much obliged to my parents whose prayers have enabled to reach this stage. I am
grateful to almighty ALLAH who made me able to complete the work presented in this report. It
is due to HIS unending mercy that this work moved towards success.
I am highly indebted to my course instructor for providing me an opportunity to learn about the
M.com program. I am very grateful to my teacher (Sir. Sohail) for providing me guideline for the
completion of this report.
There are three primary definitional categories that comprise the basics of accounting: assets,
liabilities and owner’s equity.
Assets
Liabilities
Owner Equity
Ruba Digital is one of the fastest growing electronic retail chain networks in Pakistan which
offers its customers a wide range of the finest consumer electronics: kitchen &home
appliances, power solution, mobiles/IT related products and lighting solutions, with the option
to Buy Now and Pay Later.
Haier Pakistan and Ruba Digital is using POS (Point of Sale) system for their daily business
transaction and for daily book keeping. POS is the time and place where a retail transaction is
completed. It is the point at which a customer makes a payment to the merchant in exchange
for goods or after provision of a service. At the point of sale, the merchant would prepare an
invoice for the customer (which may be a cash register printout) or otherwise calculate the
amount owed by the customer and provide options for the customer to make payment. After
receiving payment, the merchant will also normally issue a receipt for the transaction.
Contents
Preface Page 2
Acknowledgment Page 3
Dedication Page 4
Strengths Page 9
Weaknesses Page 10
Opportunities Page 11
Threats Page 12
Reference Page 15
The Regulatory Framework of Accounting
Accounting is a way of recording, analyzing, and summarizing transactions of a business.
Transactions are recorded in books of prime entry, and then analyzed and posted to the ledgers
and finally they are summarized in the financial statements.
The accounting process begins with the receipt of goods from a supplier. A receipt or voucher is
then made out to record the movement of goods, services or cash into, within or out of a
business. It is important that the document is made out immediately, since any delay increases
the risk of an error that can undermine the entire accounting process.
Documents and vouchers originate in many different departments of a company, but copies of
all of them are sent to the accounts department where they are summarized, analyzed and
then entered in the books of account.
Periodically, at least once a year but probably more often, the balances are extracted from the
ledger accounts and assembled in a ‘trial balance’. This is used as the basis for preparing the
final accounts, which consists of a profit and loss account and a balance sheet. These
accounting statements are then made available to management.
Framework of Accounting
An Accounting Framework is categorized structure in which basic elements classify in
accounting. Accounting is the process of making and maintaining financial records, it doesn’t
matter if these records are created for businesses, corporations or individuals. But every
transaction is recorded in book of accounts,
There are three primary definitional categories that comprise the basics of accounting: assets,
liabilities and owner’s equity.
Assets
Assets are defined as the resources that a business owns. They are concrete elements that are
utilized in the function of the business. Premises, equipment and vehicles all fall into this
category, as does revenue. Without these assets, a business would not be able to conduct itself
effectively.
Liabilities
Liabilities are the required outgoings of the company to make it function. Within this
framework are such elements as payment for inventory, taxes, debt repayments and wages.
Owner's Equity
Owner’s equity is, in effect, what remains after the liabilities have been subtracted from the
assets. If liabilities exceed assets, the company is in negative equity; it is in positive equity when
the assets are greater than the liabilities. The owner may be a single individual or family, but is
often the shareholders those who put capital into the business to finance its operations.
Practical Study
Haier
Haier was founded in 1984. In the last 30 years, through its spirit, Haier transformed itself from
a factory on the brink of bankruptcy into the No. 1 global home appliances brand. In 2013,
Haier’s global revenue and profit reached 27.8 billion USD. On the 2012 “World’s 50 Most
Innovative Companies” list released by the Boston Consulting Group, Haier is the only Chinese
company in the top 10 and the No. 1 consumer product retailer.
About Haier Pakistan
After 13 years development, Haier has become No.2 home appliance brand in Pakistan market
from the time of entrance the market at 2001. Currently, Haier Air Conditioner has ranked No.1
market share for 5 continuous years, Haier Washing Machine ranked No.1 market share too
and Haier Refrigerator ranked No.2 market share.
Ruba Digital
Ruba Digital is one of the fastest growing electronic retail chain networks in Pakistan which
offers its customers a wide range of the finest consumer electronics: kitchen &home
appliances, power solution, mobiles/IT related products and lighting solutions, with the option
to Buy Now and Pay Later.
Our plan is to expand our retail network across Pakistan and give benefit to our customers in
terms of quality products, best services and relaxation in payment schedule.
Company’s Mission
Our mission is to cater to customers from all walks of life and provide them with the best
possible services at the best price
To make the products affordable for everyone; abide by the Islamic financing framework
and offer Riba free financing
Through integrity, reliability, proactive approach & transparency; we wish to establish
ourselves as the market leaders
To achieve operational excellence in supply chain management thus making us competitive
in the market
To constantly strive to raise the standards of customer services by providing them solutions
as per their requirements
Company’s Vision:
To create standard in modern retail of home appliances and power solutions
Information System:
Haier Pakistan and Ruba Digital is using POS (Point of Sale) system for their daily business
transaction and for daily book keeping. POS is the time and place where a retail transaction is
completed. It is the point at which a customer makes a payment to the merchant in exchange
for goods or after provision of a service. At the point of sale, the merchant would prepare an
invoice for the customer (which may be a cash register printout) or otherwise calculate the
amount owed by the customer and provide options for the customer to make payment. After
receiving payment, the merchant will also normally issue a receipt for the transaction.
Not only it is only use for at the point of sale, POS system known as "Retail Management
System" which is actually a more appropriate term given, this software cannot only just process
sales but comes with many other capabilities like inventory management, membership system,
supplier record, bookkeeping, issuing of purchase orders, quotations and stock transfers,
barcode label creation, sale reporting and in some cases remote outlets networking or linkage,
to name some major ones.
Balance Sheet
RUBA DIGITAL (PVT) LIMITED
BALANCE SHEET
As at June 30, 2014
2014
(RUPEES)
Reserve 5,682,237
NON-CURRENT LIABILITIES
CURRENT LIABILITIES
Trade Creditors & Accruals 90,206,449
ASSETS
NON-CURRENT ASSETS
CURRENT ASSETS
80,678,897
2014
(RUPEES)
Sales 340,280,758
Cost of Sales (310,546,023)
Strength:
No. 1 consumer retail company.
Keeping costs below that of competitors
Company may offer unique products compared to other retailers
Quality products under one roof
Also available on Easy Installments
Higher responsiveness to customer demands
Opportunity:
The key opportunity for Ruba Digital is the emerging company in Retail Market.
The Internet has increased opportunities to communicate with customers and to create
new channels to market for many of its products.
By Targeting unfilled consumer need company’s can awail maximum profit.
Company can purchase a smaller retailer to increase market share.
Seasonal high demand of the product
Weakness:
It has a weak brand image as compared to other key competitors.
Too many missed deadlines and a lot of work on pending
Infrequent cash flow system
Too much stock in inventory and higher inventory costs
It may also be lacking in customer service.
Threats
Decrease in consumer demand dut to bad financial health of consumers.
Price wars among key competitors.
Comapany rapid growth had also increase the competition.
A lot of competitors in the market with similar products
A competitor opening new shop in a nearby location.
RECOMMENDATION
Advertisement is the main key in growing business, Company should increase its
Advertiment which will increase the sale and profot of company. Cash flow should
be watched thoroughly so that no chance of fraud in company can be possiable.
http://www.rubadigital.com.pk/
www.haier.com
http://www.haier.com/pk/
http://www.ruba-sez.com.pk/
https://www.wikipedia.org/