• 5 months ago
Transcript
00:00and so that they can capitalize on their books
00:04This whole process is called capitalization
00:07It was very simple
00:09You bought something from Germany
00:12You bought a machine
00:13Now its purchase price
00:15will be a part of its cost
00:17Then you paid custom duties
00:20If you don't pay custom duties
00:23then you won't be able to bring it to Pakistan
00:25You will pay custom duties
00:26but it will be non-refundable
00:28Some taxes are such that
00:30the business gets refunded later
00:32The refunded business
00:33has no expenses
00:34No expenses
00:36So it is non-refundable
00:38You paid custom duties
00:40Then you brought it by ship
00:42Transportation costs were incurred
00:44Then it was a very heavy machinery
00:46Then you made a place for it
00:48You put concrete for side preparation
00:50You made a place
00:51Go to sleep son
00:52I am giving you a lorry
00:56Are you listening or sleeping?
00:57Yes, I am listening
00:58Some of you are listening
01:00while listening
01:02What do you say while listening?
01:04Listen
01:06Listen
01:08Listen
01:10Listen
01:12Listen
01:13What?
01:14Did you listen?
01:16What did I tell you?
01:17Did you buy it from Germany?
01:19You bought a machine
01:20You bought a machine
01:21It is not coming
01:22You bought a machine
01:23It is not coming
01:24You purchased it
01:25You paid custom duties
01:26You paid transportation costs
01:28Then heavy machinery
01:29One ton
01:30It will not work on common land
01:31So what will you do?
01:32You will make a place for it
01:34It is called side preparation
01:36What is it called?
01:37Side preparation
01:38You will do side preparation
01:39You did side preparation
01:40And it cost two lakh rupees
01:42Because you made concrete
01:43So that too is a part of its machinery cost
01:45Then you brought the machine
01:47You installed the machinery
01:49So what will be the installation cost?
01:51It is a part of its cost
01:53Then you tested it
01:56So what will be the testing cost?
01:58It is a part of its cost
02:00Yes, if there is any production in testing
02:03Then the revenue from that
02:05We will get it less from the testing cost
02:07For example
02:08It took ten rupees for testing
02:10But what did you produce in testing?
02:12You sold it for one rupee
02:13So one rupee came back in ten rupees
02:15So what will be the part of the cost?
02:17Two rupees
02:18All expenses
02:21To bring the asset in this condition
02:24That it comes to the position of giving you economic benefit
02:27When the AC is installed
02:29All you need is to press the button
02:32So it has come to this position
02:34That it can give you economic benefit
02:37So all those expenses
02:39To bring an asset in this condition
02:43That it comes to the position of giving you economic benefit
02:46All those expenses
02:48Are part of the cost of that asset
02:51And all these expenses
02:53Are made a part of the cost of that asset
02:56And recorded in your books
02:58As a non-current asset
03:00So what is this process called?
03:01It is called capitalization
03:03Did you understand?
03:05Clear? Ok
03:06Let's move ahead
03:08The next adding we have is
03:10Financial statements
03:23Financial statements
03:53Financial statements
04:24Financial statements
04:26The purpose of financial accounting
04:29The purpose of financial accounting
04:31Whatever is going on in any company
04:34Whatever is going on in any entity
04:36By accounting for it
04:38What to do with its results?
04:40Present
04:41Present its owners
04:43Find out its customers
04:45What is the condition of the company?
04:47One person wants to see
04:49What did this company lose?
04:51See in any market
04:53Investor
04:54In any company
04:55Do not close your eyes and invest
04:57Right?
04:59If a company is not doing well
05:01Then its share demand will be high
05:03And what is the demand
05:05If it is more, then its price is less
05:07More
05:09That's why the big companies in the market
05:11Which are popular and famous companies
05:13On whom people have more confidence
05:15Their share price is high
05:17Right friend?
05:19And the company that is sinking
05:21What is its share price?
05:23Many times
05:25Companies are sold in one rupee
05:29Big companies
05:31Whose net worth is in the whole of Pakistan
05:33And how much did they sell?
05:35How much?
05:39How much did they sell?
05:41One rupee
05:43Why didn't they give it for free?
05:45Why did they sell it for one rupee?
05:49Share cannot be zero
05:51It can be zero
05:53The company is at a loss
05:55Why didn't they give it for free?
05:57Why didn't they give it for one rupee?
05:59In law
06:01Contract
06:03Today when you read
06:05Business law cap 4
06:07It is written
06:09Whenever you buy something from someone
06:11It is necessary to have consideration
06:13Something in return
06:15A contract is not made without consideration
06:17A contract is not made without consideration
06:21What is the meaning of consideration?
06:23Something in return
06:27You take a book
06:29You take money
06:31So what is the consideration for you?
06:33Book and money
06:35You buy a bike
06:37Bike is a consideration for you
06:39And the money you give for the bike
06:41Law says no consideration
06:43No contract
06:45Consideration is necessary
06:47It is not necessary to be sufficient
06:49Consideration is not necessary
06:51If your bike is worth a lakh
06:53You give Rs 50,000 to someone
06:55If your mobile is worth Rs 70,000
06:57You give Rs 40,000 to a friend
06:59Consideration is necessary
07:01It is not necessary to be sufficient
07:03It is not necessary
07:05Right friend?
07:07Some companies go so low
07:09Their share is one rupee
07:1150 paisa trade
07:13When the share issue happened
07:15It was trading at Rs 60
07:17People gave more than Rs 50 to buy
07:19Reason?
07:21Goodwill of that company
07:23Brand image of that company
07:25People want to invest their money
07:27They will drown
07:29If the company is in huge profits
07:31Dividend will also come
07:33If it is expensive, buy it
07:35Dividend will also come
07:37Right friend?
07:39When I went to buy shares of a company
07:41In the market
07:43How will I know how the company is doing?
07:45Financial statements
07:47I will read financial statements
07:51It means
07:53In financial statements
07:55There is so much information
07:57If you have sold jewellery
07:59If you have sold a shop
08:01If you have closed a business
08:03If you are investing your life's savings in a company
08:05If you are going
08:07If you have saved your salary
08:09If you have saved your life's savings
08:11If you are investing in a company
08:13It means
08:15In financial statements
08:17There is so much information
08:19You can make a decision
08:21Is your decision right or wrong?
08:25Can you do it or not?
08:27If there is so much information in financial statements
08:31That you are making the right decision
08:33Or wrong
08:35It means you are putting money in the well
08:37How do you know?
08:39Will this company survive or not?
08:41Will this company give dividend or not?
08:43It means
08:45In the whole world
08:471.5% people can be smart
08:49I said smart
08:51I looked at you
08:53It doesn't mean you are smart
08:55I can see it here
08:57It came in the flow
08:59In the world
09:011.5% people can be smart
09:03It doesn't mean
09:05If you look at the roof
09:07In the world
09:091.5% people can be smart
09:11If you look at someone
09:13He will assume he is smart
09:15No
09:17In the world
09:191.5% people can be smart
09:21Blindly buying shares
09:2399% people
09:25When they invest
09:27They look at the company
09:29What does the company do?
09:31What are the profits of the company in the last few years?
09:33If the company has given its share in the last few years
09:35What is the dividend?
09:37Where are the assets of the company?
09:39Company operations
09:41Only in Pakistan
09:43We are an anti-national company
09:45Whenever you start a business
09:47You take great care
09:49Whether to make this business or not
09:51Whether to take the shop or not
09:53What should be done?
09:55What is the business?
09:57What is the demand?
09:59What is the competitor?
10:01If you do not know
10:03Then you do its scrutiny
10:05Like this
10:07Business
10:09We buy company shares
10:11What do you do before buying shares?
10:13Read the company
10:15And how to read the company?
10:17Read the financial statements
10:19If you read
10:21Financial statements
10:23What will we learn from there?
10:25We will know
10:27What are the company's assets?
10:29The company that has more land, more buildings, more plant and machinery, who does the production?
10:41Plant and machinery.
10:42Plant and machinery.
10:43The company has a big plant and machinery.
10:46Its financial status means that it has more production capacity.