MIS DEVELOPMENT AND AUDITORS

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• MIS DEVELOPMENT AND
  AUDITORS
• 
  
• PRESENTED BY
• 
  ANIL GUPTA, FCA

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WHAT AND WHY FOR CA IN MIS?
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OUR FIELDS
-A F A T-
ACCOUNTS
FINANCE

AUDIT
TAXATION
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THE RELEVANCE OF AFAT?OR AFTER ALL WHY AFAT IS
REQUIRED ?
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WHY BUSINESSMAN NEED AUDITOR OR TAX ADVISOR OR
FINANCE CONSULTANT ?
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RELEVANCE OF A F A T ISEFFICIENT,
EFFECTIVEANDSYSTEMATIC MANAGEMENT OF BUSINESS
ENTERPRISE
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WHY WE?BECAUSE WE PROFESSIONALS HAVE EXCELLED
AND GAINED PROFICIENCY IN

• A F A T

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MILLION DOLLAR QUESTION?

• THE TOPIC OF THE DAY

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WHY NOT EXCELLENCE AND PROFICIENCY IN

• R A H A T

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A F A T
TO
R A H A T
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AFAT TO RAHATR REGULATED MIS
AACCOUNTSH HUMAN RESOURCEA AUDITTTAXATION
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Why Differences In ability to manage Businesses?

• Some find it difficult to manage even a single
  business
• While a few are able to manage so many companies
• Rattan Tata / Anil Ambani
• Is it possible to have more than one branch or
  factories?

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IF NO

• If No, how do you manage so many Debtors or
  suppliers
• London International Airport-
• 1326 flights in SINGLE DAY AND ..

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AND HOW MANY HOURS IN A DAY?
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• YES 1440 AND FLIGHTS 1338
• SPIRAL AND LOOP LANDING

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Different shapes and sizes of businesses

• Service-
• Panwala/ shoemaker
• Manufacturing-
• Factories across India
• Retail outlets
• So many branches

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GP RATIO PROFIT ANALYSIS
IS IT ALL NO
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BEST PART OF F.M. IS THAT THERE ARE NO SET RULES
AND REGULATIONS
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RULES AND REGULATIONS ARE THERE BUT THEY ARE
HIGHLY FLEXIBLE
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WHY PROFESSIONAL IS NEEDED IN RAHAT?

• TO PROVIDE TOOLS TO EXPLOIT AND EXPLORE THE
  FLEXIBLE ANALYTICAL TOOLS AND TO PROVIDE THE
  MONITORING AND IMPLEMENTING MECHANISM

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GP RATIO

• SUPPLIER WISE
• PRODUCT WISE
• UNIT WISE
• PROFIT CENTER WISE
• SALE MANAGER WISE

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• NET PROFIT
• NP Ratio - PAT/SALES
• Expense to Sales ratio
• Operating profit Ratio PBIT/SALES
• Net profit to Net Worth Ratio
• Administrative expense to sales Ratio
• Selling expense to sales Ratio
• Financial Expense to Sales Ratio

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• Liquidity Ratios-
• Current/ Quick Ratios
• Inventory Turnover Ratio-To find movement of
  goods
• ABC Analysis -Slow moving and non moving goods
• Debtors Turnover Ratio To find the effective
  implementation of credit policy.
• Supplier turnover Ratio To find suppliers share
  in total inventory sold.

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More Important Ratios for Business growth

• Fund Requirement- Can be obtained by working
  capital Turnover ratio
• Expansion Plans
• Use Debt Equity Ratio
• Dividend Payout Ratio i.e. DPS/EPS
• Price earning Ratio i.e. MPS/EPS and
• Return on investment ratio

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MONITORING MECHANISMExample- Doctor
and Lab tests-ToolsTool to manage Business lays
on 1. Hierarchical systems 2. Regular
periodic meetings 3. Stock physical
verification 4. Mid- Year review 5.
Internal audit 6. Interim Statutory Audit
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INTERNAL AUDIT OR INTERIM STATUTORY AUDIT

• REPORTING PATTERN
• COMPLIANCE
• EXECUTIVE SUMMARY
• OBSERVATIONS
• IMPACT
• SUGGESTIONS
• IMPLEMENTATION
• MONITORING

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• Fund Management-
• Discount Schemes
• Use Debtors Turnover Ratio.
• Inventory Turnover Ratio
• Working capital Turnover Ratio
• CASH FLOW/ FUND FLOW STATEMENT

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MIS DEVELOPMENT AND AUDITORS
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Index

• Business categories on size basis
• Difference in abilities to manage business using
  MIS
• Different examples of business, their size and
  service capabilities
• How to manage business through MIS?
• Detailed analysis and uses of financial analysis
  tools for MIS
• MIS development and auditors
• Conclusions Drawn - I leave it on you

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Conclusion Drawn-I Leave it on you

• Obtaining these ratios are not difficult
• Just love your profession, praise it that it is
  the best in the world
• You have opted for it
• Never complaint even if you are not satisfied
  with it
• Keep a book of Financial management with you

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THANK YOU