Run Mchine Has Stopped...

Pakistan’s star Test player Muhammad Yousuf announced the expected formal retirement from international cricket saying he would continue to play first class and league cricket to remain fit and in touch with the sport.
In a brief announcement which initially did not include the world retirement made here Monday on the front terrace of Karachi Press Club during a Meet the Press Programme of the club, the bearded player, who had the test average of 53 plus, better than Javed Miandad and Inzamamul Haq, said he had decided to leave international cricket because the Pakistan Cricket Board had stated in an official letter that his presence in Pakistan cricket would damage Pakistan cricket.
He said he had taken the decision to quit international cricket so that he can save Pakistan cricket from damage as alleged by the PCB in its official letter. He had consulted his elders and friends before taking the decision, he said.
He said during his cricket career spanning 12 years, he had played for the glory of the country and whatever name and fame he had achieved was due to Pakistan and the public of Pakistan.
Damaging Pakistan’s name or national cricket would be last thing on his mind that was why he had selected the road to retirement because in that way he would help Pakistan cricket.
He said he would never do any thing that would damage country’s name and after the PCB wrote that his presence in the team would damage Pakistan cricket and honor, he decided to quit cricket only to save national cricket and honor of the country.
When repeatedly asked was his decision final and irrevocable and would he reverse his decision if the public of other stake holders in cricket pursued him to take it back, he gave no categorical answer but for a number of times during the programme used the phrase “for the time being quitting cricket was his decision” giving rise to doubts that he may take back the decision if right quarters approach him.

Diabetic and Kidney Disease

Health is always an important issue for everyone but it is more painful when some of the colorful and tasteful sense of a human being causes damages to the human being like sugar. The rate of sugar in human blood varies and it causes diabetics. On the other hand kidneys are the amazing gift of God for humans. Human pair of Kidney is used to balance the different harmful material in the blood of human and act as a filtrate for wastes and toxin materials. The original count of kidney in every human is two but some people have only one kidney as one can also perform the said task and functioning according to the prescribed law. The size of kidneys almost equal to a fist and can easily be located at middle of the back exactly below the rib cage of body.
Blood is continuously passing through the kidneys and process of filtering is spontaneously occurred. The filtered waste then excreted in the shape of urine. Urine is stored in bladder and consists of water and harmful toxic materials. When we urinate, we disposed off that toxic material.
In current age, the most dangerous harm for the kidneys is nephropathy means the failure of kidneys. According to some statistics indicators that rate of kidney failure in only United States of America varies between 80,000 to 100,000 each year. In case of kidney failure, the kidneys become unable to filter the blood and passed out that toxic material from body.
When we calculate the reasons of said kidney failure, we realize that the major cause is diabetic. According to the Primary Diagnoses (Causes) for Kidney Failure Survey 1998, almost half of the kidney failure appears due to diabetic. Complete indicators are as follows;
• 43.2% Diabetes
• 23.0% High Blood Pressure
• 12.3% Glomerulonephritis
• 2.9% Polycystic Kidney Disease
• 18.6% Other Causes
Diabetic is the major cause of kidney failure but most people deny it. In USA 16 million people suffer diabetics and out of them 0.1 million have kidney failure. The patient then has only two options. First one to choose the dialysis that replaces the original function of filtering the blood upto some extent or receives a healthy kidney from any donor through transplantation.
The Federal Government is spending high amount for the cure of kidney failure patients as the budget multiplies in billion dollars. Government knows that Americans has higher probability of having kidney failure than others and all scientists are unable to know the reason of such. Diabetics are of two kinds but the ratio of having kidney failure is same in both kinds. Doctors and researchers though describe the level of diabetic kidney failure in 5 stages. But at end the best cure is good care that can save you from kidney failure.

Users of Financial Statements

Analysis of financial statements is linked with the objective and interest of the individual / agency involved. Some of the agencies interested include Management, investors, creditors, bankers, workers, Government, and public at large.

1. MANAGEMENT

Management is interested in the financial performance and financial condition of the enterprise. It would like to know about its viability as an on going concern, management of cash, debtors, inventory and fixed asset and adequacy of capital structure. Management would also be interested in the overall financial position and profitability of the enterprise as a whole and its various departments and divisions.

2. INVESTORS

An investor is interested in the profitability and safety of his investment and would like to know whether the business is profitable, has growth potential and is progressing on sound lines. The present investors want to decide whether they should hold the securities of the company or sell them. Potential investors, on the other hand, want to know whether they should invest in the shares of the company or not. Investors (Shareholders or owners) and potential investors, thus, make use of the financial statements to judge the present and future earning capacity of the business, to judge the operational efficiency of the business and to know the safety of investment and growth prospects.

3. BANKERS AND LENDERS

Bankers and lenders are interested in serving of their loans by the enterprise, i.e. regular payment of interest and repayment of principal amount on schedule dates. They also like to know the safety of their investment and reliability of returns.

4. SUPPLIERS/ CREDITORS

Creditors dealing with the enterprise are interested in receiving their payments as and when fall due and would like to know its ability to honor its short-term commitments.

5. EMPLOYEES

Employees interested in better emoluments, bonus and continuance of the business, would like to know its financial performance and profitability.

6. GOVERNMENT

Government and regulatory authorities would like to ensure that the financial statements prepared are as per the specified laws and rules, and are to safe guard the interest of various concerned agencies. e.g.: Taxation authorities would be interested in ensuring proper assessment of tax liability of the enterprise as per the laws.

7. STOCK EXCHANGE

Stock exchange uses the financial statements to analyze and thereafter, inform its members about the performance, financial health, etc. of the company, to see whether financial statements prepared are in conformity with the specified laws and rules and to see whether they safeguard the interest of various concerned agencies.
Other Regulatory authorities (such as, Company Law Board, SEBI, Stock Exchanges, Tax Authorities etc.) would like that the financial statements prepared are in conformity with the specified laws and rules, and are to safeguard the interest of various concerned agencies. For example, taxation authorities would be interested in ensuring proper assessment of tax liability of the enterprise as per the laws in force from time to time.

8. CUSTOMERS

Customers are interested to ascertain continuance of an enterprise. For example, an enterprise may be supplier of a particular type of consumer goods and in case it appears that the enterprise may not continue for a long time, the customer has to find an alternate source.

9. PUBLIC

Enterprises affect members of the public in a variety of ways. For example, enterprises may make a substantial contribution to the local economy in many ways including the number of people, they employ and their patronage of local suppliers. Financial statements may assist the public by providing information about trends and recent developments in the prosperity of the enterprise and the range of its activities.
Different agencies thus look at the enterprise from their respective viewpoint and are interested in knowing about its profitability and financial condition. In short a detailed cause and effect study of profitability and financial condition is the over all objective of financial statement analysis.

Survival of the Fittest

After the 2008 Elections, the economy of the world which is creeping towards a disaster before, come to a worst end named “The Global Recession 2009”. We have a knowledge of many recessions likewise The Great Depression 1920-30, Oil Crisis 1973-74 and also the 9/11 Crisis but the storm generated by the war against terror in 2009 was the mother of all. It is useless to make lame excuses or give reasons about the occurrence of such a great catastrophe because it is a normal phase of capitalism, more likely a bitter truth, that there will be a downturn after every boom.
This Global Recession has changed the whole story of economic development and capitalism. The Wall Street and Capital Markets come to downturn. Many popular brands are ready to quit the competition. The sector is wheezing from the collapse of at least five major financial institutions and the loss of more than 200,000 jobs — 60,000 in New York alone. Recriminations are not the only solution of this slump. We have to reconsider all of our approaches towards our economy because end of the day we all be responsible for our actions.
Despite of the fact that the welfare factor has been eliminated from our approach towards financial dealings, some of us has been called a serious responsible for such crisis and we can grind some names as well, Daniel Mudd, Frank Raines, Richard Syron, Angelo Mozilo, Barney Frank, Chris Dodd, Jimmy Cayne, Phil Gramm and many others too, but what has changed in the economy during this Recession 2009 and what is next to come, is more important to think. It is much important and alarming to think and for consideration.
People of the age are ready to witness “Survival of the Fittest” as the stage is ready for the addition and deletion of many famous brands of the world. Only those will remain on the stage which is ready to work for the regulars rather that their own hypothetic decision makings. The requirement of the customers has been changed during this global financial uncertainty.
Loss of faith on the major brands causes a lot towards their own saving strategies. People have come to know that what are the savings means and for what and when they are utilized. They bitterly know the reality of easy credits, and also the higher cost for such easy loans which they had paid before. They have lost their jobs and their nest egg too.
Do you believe that this episode of bad slump has also changed the priorities of the people in the world? Now they are much focused on better relations rather than financial dealings. Bank accounts, foreign reserves, electronic money and financial instruments are near to vanished from front role to a secondary priority. Cash – Net Cash will become a market leader and a king soon. Inventories are going to their ultimate end – the death. True partnerships are golden for the people and they are striving for them. A new environment of experimentation is awakening on the globe and it is necessary.
Has this new wave of change cause to the buying behaviour? It is the question of this right time because now it is necessary for the corporate brands to work in accordance with the behaviour of potential buyers. This misery of market changed the whole marketing segmentation of the buyers. Now they are totally different in their demographics & psychographics personal attribute, their desired benefit and most importantly their behaviour.
A time ago in past, the buyer’s psychology is totally ignored when considering economics. Later on after 1960, a lot of work has been done on the Behavioural Studies of Buyer and its different attributes. A lot of work is being acknowledged by Solomon, Bamossy and Askegaard. That is why a special attention is paid to it because it is very important to have a good understanding of Consumer Psychology and Behaviour when trying to market products and services. Traditional economics and marketing view people as rational decision makers.
When deciding to buy a certain product or make use of some service we often make very irrational decisions influenced by many different factors. Something that also should be taken into account is the way we process information and the fact that we are limited in our capacity to process this information. This is especially of importance for the way advertisements are designed.
The chances of irrational decision making are eliminated because of a great ruin of the economy. People have been change to their desires and psychic approaches. It is the time to design a new customer focused behavioural strategy to win a new range of customers. Marketing Professor of Harvard Business School Mr. John Quelch is also one of those who offer a new recommendation for marketers to grow in a new environment. Mr. Quelch has directed to change focus from high-volume customers to high-potential customers.
The main points of his new theory is are as follows;
• Focus on high-potential customers not on high-volume
• Don’t assume a return to normal but what is being regarded by customer
• Create brand trust and market repute among your target customers
• Stay focussed on costs and save extra expenditures
• Know your lead indicators
• Develop scenarios and create market demand
• Don’t wait for permission, just finished your home work before hand
Mr. Quelch is said what he felt but according to my point of view the total focus must be on the point that what is being regarded by the customer. If the corporate marketers of this current and coming age have focussed on this point, the remaining 6 can also be achieved without any extra effort.
The above whole plan of Mr. Quelch is basically adopted from the Islamic Economic System, Sharia’h Law and the Golden Code of Ethics described by the Great Prophet of Muslims Muhammad (Peace Be Upon Him). Capitalism is going to its economical death and the revival is only possible if you implement the Islamic Financing & Trading System and it’s not a new system for this universe. Just think that what Islamic System is and what it means for. It totally focussed on welfare likewise implemented in 623-43 A.D by the Muslim Caliphate.
Interest is the mother of all evil. It changed the psyche of human and it will turn from a welfare state to a selfish state. Remember the days when interest is forbidden by the Christian Church, there are no such financial shocks as these are in modern age. After the age of Henry V, when the relationship with church has been broken down, the financial uncertainty tends to grow and the current crisis was worst of all.
In a welfare state, either it is named as Islamic or not, but in a welfare state the confidence of buyer is rebuilt and the uncertainty goes to its ultimate end, because the current financial crisis is the crisis of confidence. Buyers have no confidence upon the corporate brands and also upon the financial institutions because they know and they believe that the purpose of these icons is only to generate profit in any ways.
The Rogue Economics generated a gap between the people and the government. Governments are more eagerly on a mission to discover new sources of income generation and they have no association with the welfare of their nation. This breaks up the confidence stream among them and at the end a huge slump is ready to ingest the current economy of the world.
The economists of US are ready to accept the golden code of ethics stated by the Islam to transform their economy from a profit oriented state to a welfare oriented state and it’s a good sign in this age of emergency. Mr. Quelch’s points are actionable and connected with each other transforming a complete cycle of Buyers Behaviour. These points are honestly representing that they are trying to build the buyers’ trust and confidence again by a rational use of Islamic Welfare Principles as being implemented by Prophet Muhammad (Peace Be Upon Him) along with the Caliph Abu Bakar (R.A) and the Caliph Umar (R.A) in their Caliphate.
If all the marketers of the world focused on the point “Don’t assume a return to normal but what is being regarded by customer” then I hardly believe that there will never take place such crisis like we have in our current days. Corporate brands can only win the trust of buyers if they provide a complete regard to a buyer’s desire and a total utility satisfaction which he is claiming for.
I will conclude the whole from the words said by a Rogue Economist of United States Ms. Loretta Napoleoni some days before, “Developing a new model based on Islamic finance may be the solution to the current economic crisis. We’ve got to be open-minded if we want to carry on going ahead. Otherwise we’ll get stuck, and otherwise we’ll really be in a serious crisis, and then something new will come only from the ashes of what we have constructed before”.

11 Billion US Dollars

The Finance Advisor of Pakistan has told in Press Conference some days before that the Pakistan is suffering a loss of 24 Billion Dollars on its new project named “The War on Terror” launched in the Tribal Areas of Pakistan way back in 2006. He stated that the original expenditures incurred on this project are approximately 35 Billion US Dollars but the reward received by the Pakistan against the products of the above said project is only 11 Billion Dollars. Hence the deficit of this project crossed over 24 Billion Dollars.
The above said project is launched on 14th January 2006 with the help of heavy US machineries named as “Drowns” and the end product of this project is the Blood and the Dead Bodies of Muslim Pakistani Nationals without any exception of the age, caste and colour. The life of this project has completed its 1193 days successfully with an indicator of 889 Deaths of the Muslim Pakistani Nationals included the school going children, infants, women and senior citizens with a success ratio 0.7452 deaths per day.
If we go into statistics more deeply in accordance with the instructions displayed by the International Federation of Accountants (IFAC) and also some other regulationary authorities which deals with the fairness and true & fair view of the project’s revenue and costs, we come to know that the per day cost is 38.5583 million US$ or 51.7435 million US$ per death. It’s a huge expense paid by the Pakistani Government with the helping hands of their masters not friends. On the other hand we know that we (The Pakistan Government – a Government lead and driven by the US Policy Makers & Think Tanks) have just received 9.2205 million US$ per day or 12.3735 US$ per death, conceiving a loss of 20.1174 million US$ per day or 26.9966 million US$ per death. It is the only directly attributable cost which I have mentioned here and has not yet included the indirect cost so we can say that this is only gross loss and not the net loss we are suffering per day or per murder of Pakistani Muslim Nationals by the crushing blades (Missiles) of American Drowns.
It’s a matter of Job Order Costing and we can discuss it through the following table;
Overall
Statistics Per Day Per Death
US$ PKR US$ PKR
Revenue (US$ Aid) $11,000,000,000 $9,220,453 PKR 737,636,211 $12,373,453 PKR 989,876,265
Cost (Incurred by Pakistan) ($35,000,000,000) ($29,337,804) (PKR 2,347,024,308) ($39,370,079) (PKR 3,149,606,299)
End (Loss) / Profit ($24,000,000,000) ($20,117,351) (PKR 1,609,388,097) ($26,996,625) (PKR 2,159,730,034)
From the above Job Order Costing Schedule (though it is in table format but the accounting professionals can easily judge it that where the job order costing is) we can easily extract that after the every death of a Pakistani Muslim National (despite of his age or gender), the Pakistani Government has generated a revenue (or Aid) of Rs. 990 million and from the last 1193 days (From 14th of January 2006 to 27th of April 2009) this government has been generating a fund of Rs. 738 on daily basis. In other words every murder of our brother / sister / child gave a rise of Rs. 990 million to this Pakistani Government and this murder costs our Government a Rs. 3.15 Billion.
I have a detail discussion on this matter later on; first of all have a look on the use of American Machinery on this Project (A War on Terror). There are 60 Drown attacks on our Tribal Areas from the last 1193 days. It means after every 20 days, there is a Drown Attack within the boundaries of our sovereign state. This bimonthly Drown Attack lasts from the 14th of January 2006 and has a total of 60 in numbers as on 27th of April 2009. It will multiply itself in future as we are in a state of severe loss on this Project and we may demand for the use of this machinery on weekly or even daily basis as the situation of the Tribal Area is not in our control (so called).
Has a deep look also on the financial analysis of these Drown Attacks;
Overall
Statistics Per US Drown
US$ PKR
Revenue (US$ Aid) $11,000,000,000 $17,713,366 PKR 1,417,069,243
Cost (Incurred by Pakistan) ($35,000,000,000) ($56,360,709) (PKR 4,508,856,683)
End (Loss) / Profit ($24,000,000,000) ($38,647,343) (PKR 3,091,787,440)
This table shows that every flight of a Drown in Pakistani sky will generate a fund of Rs. 1.4171 billion. Its mean that this Project is the best revenue generated source for Pakistan as none of our Industry / Organization generated so much revenue for us. Moreover every Drown Attack has given us a gift of 15 dead bodies of our brothers / sisters and children on an average base for completing 15 jobs per flight. So it is the highest revenue generating Project / Business of Pakistan but there is problem with this business that it is yet not established in any of the legal forms of business organization as it is conducted by the Government of Pakistan in a sole-proprietorship format.
In accordance with currently enforceable laws in Pakistan, likewise Companies Ordinance 1984, Companies Rules 1985, Income Tax Ordinance 2001, Income Tax Rules 2002, Sales Tax Act 1990, Sales Tax Rules 1991, Partnership Act 1932 and many others have a point that with such a huge revenue, this Organization / Project must be registered with these Laws & Regulations for the true and fair practice of the profession. This Project yet not has any NTN or Sales Tax Registration Number and saving a lot of tax. So FBR must take a strong step towards this organization to recover all the dues against Income Tax, With Holding Tax and Sales Tax. This Organization / Project must also file a return through electronic ways using the digital signatures of NIFT for an ease. Even Government can hire the services of highly qualified individual consultants or consulting firms.
Stock Exchanges (SE), Federal Board of Revenue (FBR) and Securities Exchange Commission of Pakistan (SECP) must take it serious to regulate the fair trade practice in this country and also I think it necessary to register this Organization / Project with Monopolies & Restrictive Trade Practices Control Authority for the betterment of the profession. Hope these Institutes take it serious to regulate this business within the legal restrictions of the Pakistan as it is the best revenue generating business I have ever seen in corporate sector.
Regarding the huge expenses beard by the Government of Pakistan on this “Project”, I must say that I have not yet received any auditable assurance about these expenses because Government yet not supply any breakup of these heavy expenses near about 35 Billion US$. If Government provides the Income Statement of this “Project” then we can comment on this Operating Loss. I think that this declared loss is only a tactic to save tax under the currently prevailing laws of the country. And if in real sense this Government has been suffering from such a great loss against this “Project” then there are also many ways to overcome this loss. Some of these tactics are the hiring of professional consultants and obtaining different loans under the different schemes of SBP.
If Government starts to export these dead bodies (15 in numbers bimonthly) then it has a chance to cover all its losses because our Financial Institutions are offering some credit limits for exporters like FAPE I, FAPE II, FAPC etc. With such great and assured foreign generated revenue, none of our financial institute can refuse this application of loan. The financial statements and audit reports can be obtained by paying high consultancy fee to any of the renowned chartered accountancy firms and on the basis of these strong documents and facts & figures, the above stated deficit of 24 billion US$ can easily be covered by the disbursement of loan.
The CEO of this Project is much experienced in this regard and he is also very much known to the tactics through which every type of heavy loans can be waived off easily. With the help of this highly talented administrator, the future of this Project is pretty much secure despite of the announcement of current deficit.
I hope that this Project will be spread all over the Pakistan in near future as our Government is paying full attention to this and is using all of his resources for the success of this project “War on Terror” whole heartedly.