Ratio Calculation From Financial Statement Profit and Loss a/c of Beta Manufacturing Company for the year ended 31st March 2010. Exercise Problem1 Kindly download this link to view the exercise. Given in pdf format. You are required to find out: a)      #Gross Profit Ratio b)      #Net Profit Ratio c)      #Operating Ratio d)      Operating #Net Profit to Net Sales Ratio a. GROSS FORFIT RATIO = Gross profit ÷ #Sales × 100 = 50,000 ÷ 1,60,000 × 100 = 31.25 % b. #NET PROFIT RATIO = Net profit ÷ Sales × 100 = 28,000 ÷ 1,60,000 × 100 = 17.5 %  c. OPERATING RATIO = #Cost of goods sold + Operating expenses ÷ Sales × 100 Cost of goos sold = Sales – Gross profit = 1,60,000 – 50,000 = Rs. 1,10,000 Operating expenses = 4,000 + 22,800 + 1,200 =  Rs. 28,000 Operating ratio = 1,10,000 + 28,000 ÷ 1,60,000 × 100 = 86.25 % d. OPERATING NET PROFIT TO NET SALES RATIO = Operating Profit ÷ Sales × 100 Operating profit = Net profit + Non-Operating expenses – Non operating income = 28,000 + 800 – 4,800 =  Rs. 32,000 Operating Net Profit to Net Sales Ratio = 32,000 ÷ 1,60,000 × 100 = 20 % What is a Financial statement? It is an organised collection of data according to logical and consistent #accounting procedure. It combines statements of balance sheet, income and retained earnings. These are prepared for the purpose of presenting a periodical report on the program of investment status and the results achieved i.e., the balance sheet and P& L a/c. Objectives of Financial Statement Analysis: To help in constructing future plans To gauge the earning capacity of the firm To assess the financial position and performance of the company To know the #solvency status of the firm To determine the #progress of the firm As a basis for #taxation and fiscal policy To ensure the legality of #dividends Financial Statement Analysis Tools  Comparative Statements Common Size Statements #Trend Analysis #Ratio Analysis Fund Flow Statement Cash Flow Statement Types of Financial Analysis Intra-Firm Comparison Inter-firm Comparison Industry Average or Standard  Analysis Horizontal Analysis Vertical Analysis Limitations Lack of Precision Lack of Exactness Incomplete Information Interim Reports Hiding of Real Position or Window Dressing Lack of Comparability Historical...

Technology and Society Perhaps the most striking influence of technology is found on society. Practically every area of social life and the life of every individual has been, in some sense or the other, changed by the development in technology. Technology reaches people through business: Preferences of people are constantly changing and this has pushed the business firms to the point, where innovation has become the need of the hour. The new discoveries would remain idle as mere ideas if there were no laboratories to transform the ideas into creations. Technology reaching people through business is one part of the theory. The economic prosperity of a nation depends on technology. The Non-Technical Person’s guide to building products & apps High expectations of consumers: People are used to technological innovations and breakthroughs and they want variety in every kind of purchase they make. New varieties of products, more safe and comfortable, free from pollution, are to be produced and supplied to affluent sections. This calls for a massive investment in research and development. In countries like Japan, much importance is attached to product design, quality, sophistication, delivery schedules and prices. High expectations need not be considered as problems by business persons but treated as an opportunity to satisfy their customer group. System complexity: Technology has resulted in complexity. Modern machines work faster and better, no doubt. However, if there is a technical problem, the presence of an expert is needed to repair the machinery. Again, investment in machinery adds to the cost of capital and hence the merchandise has to be purchased form reliable sources. Social change: The change in the technological process undoubtedly has its effect on the society. First, there is a change in the social life, with mobile populations drifting about in search of new centers of employment. If it happens to be an agricultural economy, the result of such a drift would prove disastrous, with society being socially uprooted. Sometimes such a drift may result in new geographical distribution of population. Technological change also brings considerable changes in the family, life style and attitude. The way we cook, communicate, use media and work are all affected by technology. Technological phases and the social systems they create: There are five stages of technological development. Each stage leaves a distinct influence on work and on social system. Sequential progress is made from the lowest level to the highest level, in such a way that these five stages roughly represent the progress of civilization throughout history. Although one phase of technology tends to dominate a nation’s activities at a particular time, other phases will be often practiced at the same time. Technology means change and more change. It forces changes on people whether they are prepared for it or not. In modern history, it has created what is called future shock, which means that change comes so fast and furious that it approaches the limits of human tolerance and people lose their ability to cope with it...

VEDIC MANAGEMENT AND LEADERSHIP INDIAN MANAGEMENT AND VEDIC LEADERSHIP From time immemorial, vedic scriptures and Upanishads have inspired people to acquire knowledge and wisdom about management principles and practices. Great spiritual leaders like Adisankara believed to be the reincarnation of Lord Shiva, Shri Krishna, the reincarnation of Lord Mahavishnu ,Lord Buddha, Shri Ramakrishna Paramahamsa have  spoken of the infinite realities of life . The Philosophy of Unlearning: It is really amazing to know that these teachings though popular for their philosophical perspective also are a source of inspiration for management philosophy. These scriptures are excellent guides for attaining focus and help us to unlearn old school of thought and rejuvenate us with proper perspective and approach. Inspiration from Bhagavat Gita: Most of us would have heard about this quote from the Bhagavat Gita- “Do your duty without expectations”- “The fruits of which will be reaped automatically.” I used to wonder if this is possible, but all business men and entrepreneurs will definitely go by this since it proves to be the highest business philosophy too. Businesses thrive when done with a perfect vision , backed up by strong policies and ethical procedures. Adisankara: Adhi sankara has already paved the way for “Equality among the masses” when he realized and reiterated that people cannot be and should not be discriminated based on their caste and creed. His life span was very short-he was hardly 32 years when he left this world, but his preachings are there to stay forever. He was definitely a natural leader in presenting his views with clarity that serve as an eternal guide for mankind. Lord Krishna – A Magnificient Leader: Leaders ought to be natural and inspire people to follow them willingly. Lord Krishna was such a magnificient leader of Dwabara yuga who was a mentor for the Pancha pandavas and Gauravas too. The sad part of the story was Gauravas were not willing or not wise enough to utilise the services of Lord Krishna. We miss many viable business opportunities by oversight like Duryodana, the leader of Gauravas- he was a great warrior but not a good listener. “To be heard, you have to first listen,” I think this is the first step in the process of management Progress is impossible without change and those who are not willing to change cannot change anything. How true these words of George Bernardshaw are! Leaders of next century need to have better adaptive capabilities, cross-functional expertise, a positive attitude towards unlearning and re learning and also develop leadership of various levels of organization. What do Vedic Scriptures say? Coming back to vedic scriptures, they direct the mankind towards purifying the mind so that it becomes the hot seat of infinite energy leading to higher levels of strategic thinking and performance. The problem with us is that we always tend to correlate spirituality with renunciation of worldly life- It is not that; making the energy chakras inside our body live and active is the saarams ( essence) taking us to a heightened level in terms of thinking and action. To be a good leader your health should be fine in three key areas 1. Mental health Intelligence and creativity at its best Increased self-actualisation and self-confidence Greater ability to focus Higher levels of moral judgement Reduced anxiety and depression 2. Physical health Reduced need (or no need) for seeing the doctor for treatment Decreased risk factor for disease Reduction of high blood pressure Decreased alcohol consumption and drug abuse Stress reduction Prevention of ageing and increased longevity Note: It has been scientifically proved that by reciting GAYATHRI MANTRA and performing Sandhya vandanam, which is a natural yoga or pranayama method, your life...