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Sayyid Mansoob
HasanFCMA
Owner/PrincipalMANSOOB & CO.
Cost & Management AccountantsManagement Consultants
SINCE 1995
These trees can easily reach
heights of 300 feet
(91 meters).
Highest tree measured to a
length of 379.7 feet
A typical Redwood Tree
lives for 500 to 700
years, although some have
been documented at
more than 2,000 years old.
Brief History of Google Inc.
• 1995 – Thought process
• 1996 – Work on a search engine BlackRub
• 1997 – Google.com is registered
• 1998 August – Google is incorporated with US$ 100,000/-
• 1998 – Newsletter launched
• 1998 December – First employee is appointed
• 1999 June – US$ 25 million capital raised
• 2004 August – Successful IPO of Google
The IPO of Google Inc.
19,605,052 shares of
Class A common stock
Of value US$ 0.01 (one Cent)
Offered at US$ 85.00
The sale raised US$ 1.67 billion
giving Google a market capitalization of US$ 23 billion
and made the founders billionaires
Google Inc.Now
2013 US$
Total Assets 110.92 billion
Total Revenues 55.52 billion
Net Income 12.92 billion
EPS – Basic 20.5
EPS – Diluted 19.7
JK Rowling
• Failed marriage
• A struggling single mother
• Diagnosed with clinical depression and contemplated suicide
• Was living on state benefits when completed the first novel of Harry Potter
The Idea of Harry Potter
• 1990 – Conceived at a railway station while waiting
• 1995 – First manuscript presented to 12 publishes
• All rejected• 1997 – Initial print run of the
first book 1,000 copies• 1997 – Won first Award
“Neslte Smarties Book Prize”• 2008 fourth book – sold
372,775 copies sold in one day in UK, and 3 million copies in 48 hours in the USA
• Final installment sold 11 million copies in just 24 hours in the USA
Books
• 7 Books
• Translated in 73 languages
• Around 450 million copies sold by July 2013
Films
• 8 Films
• Worth US$ 21 Billion to Warner Brothers
Brand Value
• US$ 15 Billion
In the USA
11% of private sector jobs come from venture capital backed companies
and
venture capital backed revenue accounts for 21% of GDP
Source: National Venture Capital Association USA
2009-10 2010-11 2011-12 2012-13
Currency to US$ 83.8017 85.5017 89.2359 96.7272
Imports 31,209 35,872 40,461 40,226
Exports 19,673 25,356 24,696 24,795
Trade balance (11,536) (10,516) (15,765) (15,431)
Remittances 8,906 11,201 13,187 13,922
BOP-Current account (3,946) 214 (4,658) (2,496)
Business Structures 2013
Companies registered with SECP 64,067
Listed companies (KSE) 580
Partnerships ?
Proprietorships ?
Corporate NGOs 400+
Other NGOs 125,000
Chambers 59
Business associations 114
KSE Listings
Companies 580
Scrip 647
Quoted on Dec 9, 2014 No’s %age
Below par 222 34%Between 10-20 100 15%Between 20-50 101 16%
Between 50-100 91 14%Between 100-500 101 16%
Above 500 32 5%647 100%
Challenges to Pakistan Economy
• Peace and security
• Law and order
• Capital flight (both Black & White)
• Economic growth (activities)
• Public flotation/Industrialization
• Lack of small and medium financing institutions
• Job creation
• Devaluation of currency
• Ever rising imports
• Trade and current account deficit
• Undocumented economy
• Availability of reliable data
• SME is about 90% of Pakistan Economy
• Employs 80% of non-agricultural labor
• 40% share in GDP
• About 99% of approximately 3 million SMEs are classified as Microenterprises by IFC
Source: SMEDA Website, Business Recorder: SME in Focus
Micro Enterprise Sector
• Employs on an average 4-5 persons with a ratio of 70:30 skilled and unskilled
• Average annual purchases Rs. 386,000/-• On an average, gave rise to Rs.833,000/-
per annum as value-addition• The most labor-intensive businesses
compared to small, medium and large enterprises
• Value-addition of Rs. 2.19 for every rupee spent on raw-material purchases compared to other businesses (Rs. 1.52, Rs. 1.80 and Rs. 1.82 for small, medium and large enterprises, respectively)
Source: HEC Pakistan Research Repository
Major Sources of Funds for
SMEs
• Private equity
• Private loans
• Public equity through listing at the stock exchanges
• Commercial banks
• Microfinance banks
• NBFCs & Modarabas
Some major challenges faced by
SMEs
• Lack of financing (SME exposure 9.3% of total advances)
• Intellectual property rights
• Complicated and complex implementation of Commercial Laws
• Lack of access to market
Hurdles in funding to
SMEs
• Destruction of NBFC sector by Universal Banking allowed to commercial banks by State Bank of Pakistan
• Harsh requirements of SECP to incorporate NBFCs
• Listing requirements of KSE set at a minimum of PKR 200 million
• Hesitation and slow lending by commercial banks
• Collateral based financing
• Venture capital financing unavailable
• Promotion of NBFCs especially Venture Capital and Modarabas
• Establishment of Stock Exchange for Small Companies like American Stock Exchange of USA and AIM of London Stock Exchange
• Simplification and speeding up of registration process of Intellectual Property Rights
• Strengthening of Commercial Laws
• Establishment of specialized Commercial Courts to speed up settlement of commercial cases in every district