INTERNSHIP REPORT ON

MEDIA 11 ADVERTISING

ABBOTTABAD

Submitted by: Adnan Akhtar

Roll # 205

Supervised by: Abdul Waheed

Government College of Management Sciences

Abbottabad
SESSION

2018-2019
 INTERNSHIP REPORT ON

MEDIA 11 ADVERTISING

ABBOTTABAD

Submitted by: Adnan Akhtar

Roll # 205

Supervised by: Abdul Waheed

This internship report is submitted in partial fulfillment of the
requirements for the degree of Master of Commerce awarded by the
Abbottabad University of Science & Technology

Government College of Management Sciences Abbottabad

SESSION

2018-2019
 Government College of Management Sciences
Abbottabad

APPROVAL SHEET

Approval Committee

1. External Examiner

Mr.______________________ Signature______________________

2. Supervisor

Abdul Waheed Signature______________________

Associate Professor

3. Head of department

Mr. Syed Arif Zahid____________ Signature_____________________

Designation Principal
 DEDICATION

I dedicate this report to my Loving parents who have continuously given me moral support and

encouraged me though my M.Com. They gave me mental strength to fight and deal with the hurdles

of the daily routine I faced during my study. At this stage I can say that today what I am where I stand

is just because of them. Secondly I would like to dedicate this report to my supervisor who guided me

throughout my internship and even in the making of report.

 ABSTRACT

All praises and thanks to Almighty ALLAH. The lord and creator of this universe by shoes
power and glory all goods and things are accomplished. He is also the most merciful, who
gave me the ability and opportunity to work on this report. It is an academic requirement for
the student of M.Com to undergo an internship program of 8 weeks duration. This
opportunity provides to the students to apply theoretical knowledge and gain practical
experience about the organization. The purpose of internship report is to evaluate the
performance of organization and give concrete recommendation for further improvements.
Another aspect of this internship is that it makes of a student imaginative and be dynamic and
takes him away from bookish and impractical philosophy. So it makes the student a practical
man and helps him to face difficulties of practical life and the solution of problems. Through
internship a student can judge his qualities and expertise, whish he gained from books.

This internship report is on Media 11 Advertising. Media 11 Advertising is Advertising

company which is growing very rapidly. It offers very good and attractive ads of its
customers. Media 11 Advertising is leading in its specialty of making ads which ensures its
success. Media 11 Advertising the founder of company started its operations from Lahore
and with in some years opened it in Islamabad, Karachi and Peshawar. It has increasing
number of its customer day to day. In short period it got the awards of best performance.
Since last 21 years its getting awards annually of good performance and leading their
competitors.
 Table of Contents

Chapter 1....................................................................................................................................1

Introduction to Report................................................................................................................1

1.1 Introduction......................................................................................................................1

1.2 Background of Study........................................................................................................1

1.3 Purpose of Internship........................................................................................................2

1.4 Objective of the Report....................................................................................................2

1.5 INTRODUCTION TO ADVERTISING..........................................................................2

1.6 WHY ADVERTISING ?.................................................................................................3

1.7 VEHICLES OF ADVERTISING.....................................................................................4

1.8 ADVERTISING AGENCY..............................................................................................4

Chapter 2....................................................................................................................................6

Introduction to the company......................................................................................................6

2.1 About MEDIA 11 Advertising.........................................................................................6

2.1.1 Company’s History....................................................................................................6

2.1.2 Countrywide Management.........................................................................................6

2.2 ORGANIZATIONAL STRUCTURE..............................................................................7

2.3 Client Services (Account) Department.............................................................................8

2.4 Human Resource/ Admin /IT/Finance Department..........................................................9

Chapter 3..................................................................................................................................10

FINANCIAL ANALYSIS.......................................................................................................10

3.1 Introduction....................................................................................................................10

3.2 RATIO ANALYSIS.......................................................................................................11

3.2.1 Types of Ratios........................................................................................................11

 3.3 COMMON SIZE ANALYSIS.......................................................................................26

3.3.1VERTICAL ANALYSIS..........................................................................................26

3.3.2 HORIZONTAL ANALYSIS...................................................................................34

Chapter 4..................................................................................................................................39

SWOT ANALYSIS..................................................................................................................39

4.1 What makes a SWOT analysis effort successful?..........................................................40

4.2 SWOT Analysis Frames Company Strengths................................................................40

4.3 Pinpoint Company Weaknesses.....................................................................................41

4.4 Analyze Opportunities & Threats in the Marketplace....................................................42

Strengths...............................................................................................................................43

Weaknesses...........................................................................................................................43

Opportunities........................................................................................................................43

Threats..................................................................................................................................43

4.5 My Activities..................................................................................................................44

4.5.1 My Responsibilities.................................................................................................44

4.5.2 My practical experience...........................................................................................45

Chapter 5..................................................................................................................................48

Conclusion & Recommendation..............................................................................................48

5.1 CONCLUSION..............................................................................................................48

5.2 RECOMMENDATION..................................................................................................48

References................................................................................................................................51

 Annexure...........................................................................................................................52
 ACKNOWLEDGEMENT

Lots of thanks to Almighty Allah (The most merciful the most beneficial).The only creator of
universe who enabled me to complete this report, in spite of various difficulties. All respects
to the Holy Prophet (P.B.U.H) who enable us to recognize our greater and whose spiritual
teaching guide us every matter of life.

First of all my Supervisor Abdul Waheed, he has been a permanent source of encouragement
and guidance. I am also highly thankful to my honorable teachers for theirs guidance. I am
indebted to all the employees of Media 11 Advertising . I Special thanks to MANAGER of
Media 11 Advertising and all other employees of the company for their cooperation.
Moreover, I would also acknowledge my debt to my family for their helpful hand.

Adnan Akhtar
 Executive Summary

Media 11 Advertising is the very dynamic and big company of Advertising among the
Advertising companies of Pakistan. Its founder Yasir Awan make its success confirm with
its highly efforts. after its day night work now Media 11 Advertising has good name and
future in Pakistan. It is the company which is getting regularly awards of best performance
since last 10years of its life.
Media 11 Advertising start its operations on 4 th June 1994 in the governance Yasir Awan in
Abbottabad Later it opened its office in Malaysia Islamabad and now having plan to open in
Quetta .There are five departments of Media 11. Customer service department build relation
with its customers and analyze which customer gives more investment and valuable. Second
is creative department which works in art and production. It makes rough idea in art and
finishing ads and campaigns. Media department is responsible for media planning like
booking the places and mediums (print and electronic media). Human resource department
manage and look after the employees. Increase their skills and improve the efficiency of
employees and also maintain them. Finance department work is to handle financial position
of company. It handle the operations of Media 11 Advertising and its investments. It also up
to date its financial position and earnings either company is getting profit or not.
Today, Advertising has become a reflection of human life, whatever state it may be in.
Traditionally started as a press release, a television ad and a billboard display, advertisements
have now moved on to cover every possible area of human life in order to communicate.
Ranging from internet marketing to road shows, marketing communication has utilized the
path to interact with its target audience. If times are good, it celebrates; if not it mourns.
Advertising has successfully transcended from one of the most interruptive commercial
medium of modern times to something that everyone wants to have a piece of. Advertising
agencies have always played a pivotal role in improving general human conditions the world
over.
I did financial (ratio, horizontal and vertical) analysis of company. From the financial
analysis I find different ratios of company which shows that company is performing well its
operations but it needs to be improve them more because these are not highly satisfactory. It
is very old technique which clearly shows about the financial position of company
comparatively with different standards. With the help of them investor take a short reading
and take decision about investment or not.
Vertical analysis is perform to check company’s position against its total assets and income
statement. Total assets are divided on each value of balance sheet and sales are divided on
each value of income statement. In Horizontal analysis the selected base year divided by all
items of income statement and balance sheet of each.
 Chapter 1
Introduction to Report

1.1 Introduction
Training means a process of teaching or learning skills and making yourself trained in that
field. Choosing finance as my field and wanted to have a training in Advertising Agency to
maximize my knowledge and learning skills through practical implementation and to overlook the
overall activities going in within the Advertising Companies. My training in Media 11
Advertising help me a lot in practical sense instead I was told orally in our graduation. Learning
means practical work also and if someone don’t have practical skills even being orally mastered
its nothing, just like, ‘‘frog in the well”. My training here make me broaden my vision and
capabilities regarding finance and its my great honor to have a training in Department of finance
at Media 11 Advertising. Which made me learn more about the true and fair teaching of finance
regarding our projects dealing and also made me cautious how to make financial analysis of any
company.

1.2 Background of Study

To have a good and practical knowledge about a particular task you need to be practical
and self-motivated for it. The main idea of my study is to have practical implementation of
financing activities and organization’s management work. To broaden myself that how company’s
each department work accordingly and how they achieve their objectives and goals set by the top
level management. As every organization’s main aim is to achieve its goals and objectives with
low cost and expenses. This is only done by a proper management system which can make highest
possible solutions for structured or un-structured problems within or outside the organizational
infrastructure. There is a need of proper setup which can set goals for its every department as its
not the work of single department or individual. It’s a team work and manage needs to establish a
network among the departments by setting goals and objectives and giving them the plans to
maximize the profit and to low the cost of the organization. To utilize assets and to maintain
accounts properly. By going inside the company, behavioral activities of the organization can be
easily understood that how every department is linked with the others and how the organization
goals and objectives are achieve within a specific time and frame by considering its management
cost and revenue set up by the top level.

1
1.3 Purpose of Internship
The purpose of my training in the Advertising Company is to have a practical seeing and
having a skillful insight in the organization’s behavior regarding the business dealing and
transactions and interaction with its users. The main function of Advertising Company is to
manage their projects in a unique way and secure manner. But the thing is to understand the
system of an organization on which it works and make profit motive.

1.4 Objective of the Report

The study will benefits for the students of finance and accounts. They will take a better exposure
in the field of finance.

1.5 INTRODUCTION TO ADVERTISING

Advertising may be described as the science of arresting the human intelligence long enough to
get money from it. It is a non-personal form of communication intended to persuade an audience
to purchase or take some action upon products, ideas, or services. Advertisements make a product
or service familiar in the household. It gives an identity to the product. In other words,
advertisements facilitate the making of a Brand. Brand image is the personality a brand has
created in the minds of its customers. It is the advertisements that help in communicating the
desired message so as to form a brand image as targeted by the company. Keeping in constant
touch with the target audience through frequent advertisements carried out via various mediums
helps in enhancing the Brand Awareness and Brand Recall. Effective Advertising is a
communication that induces the consumer to buy a product. Advertising performs one of the most
important functions in society that is to inform, it gives people the power of choice, the power of
knowledge that helps them make important decisions every day. Advertisements intend to answer
the following for their potential customers:

 Inform them about the product or service?

 Where and how is the product or service available?
 How to use the product or service?

Today, Advertising has become a reflection of human life, whatever state it may be in.
Traditionally started as a press release, a television ad and a billboard display, advertisements
have now moved on to cover every possible area of human life in order to communicate. Ranging

2
from internet marketing to road shows, marketing communication has utilized the path to interact
with its target audience. If times are good, it celebrates; if not it mourns. Advertising has
successfully transcended from one of the most interruptive commercial medium of modern times
to something that everyone wants to have a piece of. Advertising agencies have always played a
pivotal role in improving general human conditions the world over. From marketing a luxury car
to spreading awareness on social issues, Advertising has played its bit.

1.6 WHY ADVERTISING ?

Advertising is required because it explains complex issues in ways that are interesting, easy to
understand and meaningful It is tool used by companies to:

 Inform people about new products and services

 Brand building
 Remind customers about their brand at the right time and right place
 Reinforce confidence in purchase
 Built corporate identity
 Help their sales force become more effective
 Give their brand and the company a personality that makes it unique

Government and Autonomous bodies use Advertising to:

 Inform people about their policies

 Promote social awareness
 Educate masses on health care
 Prevent panic during natural disasters
 Dispel harmful rumours
 Attract foreign investment

Myth: An Advertising agency always helps to sell a product

Fact: Advertising can never succeed in selling something which the public will not accept.An
advertisement becomes successful only if the product is satisfactory. It is very important that it
fulfils the needs of the consumers. The deal offered by the company ought to have some
credibility in order to appeal in the eyes of the target audience

3
1.7 VEHICLES OF ADVERTISING
Many advertisements are designed to generate increased consumption of those products and
services through the creation and reinforcement of "brand image" and "brand loyalty". With the
passing time, more people relied on the advertisements and the never ending race to attract the
customers started. Out-of-the-box thinking was appreciated and Advertising emerged as a
significant part of a business. In fact, Advertising and communication gained so much
momentum that advertisements are now often placed by an Advertising agency on behalf of a
company or other organization. Traditionally, the scope of Advertising was limited to only a few
options. In the present scenario advertisements have become an unavoidable part in the day to day
life. Every major medium is used to deliver these messages, including television, radio, cinema,
magazines, newspapers, video games, the internet and billboards. Any medium where the
audience can easily and frequently be attracted is utilized to pass on the communication by mode
of audio, visual or print format. Instead of the means of mass communications, personalized
messages are given higher importance these days. A personal email to the esteemed customer is
beneficial for the company to gain frequent and better response from the customer. Moreover, it
makes the customer feel important. In today’s consumer centric world, it is very essential to
pamper the customers to keep a hold on them.

1.8 ADVERTISING AGENCY

An ad agency is a firm that specializes in the creation, design and placement of advertisements
and in the planning and execution of promotional campaigns for products and services of their
clients. An ad agency is independent from the client and provides an outside point of view to the
effort of selling the client's products or services. The Advertising professionals can also handle
overall marketing and branding strategies and sales promotions for its clients. The process of ad
making and marketing communication requires the inputs of experts in many fields like writers,
artists, photographers, designers, television production crews and many others. Almost all
Advertising is therefore arranged through an Advertising agency which provides the necessary
skill to turn the message into a memorable and effective advertisement. Typical ad agency clients
include businesses and corporations, non-profit organizations and government agencies. The
Advertising agencies help in creating public awareness in a manner that is effective and
innovative. Though the ad agencies are very professional and expert in their field, the service is

4
very personalized in nature. Agencies may be hired to produce single ads or, more commonly,
ongoing series of related ads, called an Advertising campaign.

5
 Chapter 2
Introduction to the company

2.1 About MEDIA 11 Advertising

Media 11 Advertising is Advertising company which is growing very rapidly. It offers very good
and attractive ads of its customers. Media 11 Advertising is leading in its specialty of making ads
which ensures its success. Media 11 Advertising the founder of company started its operations
from Lahore and with in some years opened it in Islamabad, Karachi and Peshawar. It has
increasing number of its customer day to day. In short period it got the awards of best
performance. Since last 21 years its getting awards annually of good performance and leading
their competitors.

2.1.1 Company’s History

Media 11 Advertising international stated operations in 1994 in Abbottaabad which was
organized and govern by Yasir Awan. Opened its operations also in Islamabad, Karachi, Peshawar
and having plan to open it also in Quetta very soon. From the 21 years it is getting award of APNS
and PBC as a Advertising agecy. To use of the expertise of Media 11 Advertising it has become
Pakistan largest Advertising company. It is providing its consulting specialities more then 207
customers and increasing rapidly. It has completed its 21 years of working.

2.1.2 Countrywide Management

MEDIA 11 ADVERTISING is the only agency with full presence nationwide in Karachi, Lahore,
Islamabad, Peshawar And having more then 315 experts of it
Area of expertise
Its has its own basic structure in finance and regulate with special kind of expertise. Financial
tools used by Media 11 Advertising are very good and attractive.
Awards plus Certificates
It got 15 Professional Awards and 21 Business Awards.
APNS Awards
Media 11 Advertising got Excellence Award and Special Business performance, Client
Performance Award in 2003-2004. It also got Client Performance Award and Special Business
Award 2001-2002. The awards of best performance, Special Business performance, Client
Performance Award (CBR), Client performance Award: 1999-2000.

6
2.2 ORGANIZATIONAL STRUCTURE
MEDIA 11 ADVERTISING has well defined organizational structure that clearly depicts the
hierarchy of the company.

NAME DESIGNATION

Mr Yasir Awan Chief Executive

Mrs. Adnan Khan Director Finance and Admin

Mr. Noman Ali Regional director Mansehra

Mr. Inaam Akbar Regional Director Islamabad

Mrs Mudassar Ghaffar Regional Director Abbottabad

Mr. Umer Khattak Head of Finance

Mr. Dr Abrar Ahmed Director Human Resource

Mr. Nadeem Ghaffar Creative Director

Mr. Mudassar Marketing Director

7
2.3 Client Services (Account) Department

Every regional director under which senior account manager works. He has further responsibility
to manage and coordinate the account executives. Account officers are responsible to answer their
department duties and projects. It is an organic type of organization in which management is
result oriented. Especially sales rapes are asked to complete the target in their own way.

8
2.4 Human Resource/ Admin /IT/Finance Department

There is watch man which do the works of department officers. HR director works and see
the IT manager, Admin Executive, AV Admin Executive and accountant. There is
receptionist, peon, peon driver and driver for the organizations works and they support to
above officers. Assistant accountant works under the accountant and answerable to their
supervisor.

9
 Chapter 3
FINANCIAL ANALYSIS

3.1 Introduction
The particular objectives sought to the served by financial analysis determine the type of
ratios as well as the extent and depth of ratio analysis to be carried out to draw conclusions.
Financial analysis is carried out by;
Business Concern:
 To know profitability of the business.
 For the assessment stability and financial strength of the business entity.
Management:
 Assessment of efficiency of resources utilization.
 Assessment of potentials of profitability.
 Evaluation of different management controls.
Investors:
 Assessment of earnings and divided prospects.
 Growth in economic value of investments vis-à-vis risks undertaken.
Bankers/Creditors Concern:
 Assessment of the ability of the business to service its debt obligations.
 Proper utilization of assets financed.
Government Concern:
 Evaluation of the economic contributions of the business entity
A number of different approaches might be used in analyzing a firm’s financial performance
in a particular period. To analyze the performance of MEDIA 11 ADVERTISING I adopted
following three method of
 Ratio Analysis
 Common Size and Index Analysis

10
3.2 RATIO ANALYSIS
Ratio Analysis is an important and age-old technique of financial analysis. It simplifies the
comprehension of financial statements. Ratios tell the whole story of changes in the financial
condition of business. Ratios highlight the factors associated with successful and
unsuccessful firm. They also reveal strong firms and weak firms, over- valued and
undervalued firms.
It helps in Planning and forecasting. Ratios can assist management, in its basic functions of
forecasting, planning, co-ordination, control and communication. Ratio analysis also makes
possible comparison of the performance of different divisions of the firm. The ratios are
helpful in decision about their efficiency of otherwise in the past and likely performance in
future. Ratios also help in Investment decisions in case of investors and lending decisions in
the case of bankers etc.

3.2.1 Types of Ratios

Following the main types of ratios that I am going to calculate in this assignment
 Liquidity Ratios
 Leverage Ratios
 Activity Ratios
 Profitability Ratios
 Coverage Ratio

LIQUIDITY RATIOS
Liquidity ratios are used to measure a firm’s ability & solvency of the firm to meet short-term
obligations. They compare short-term obligations to short-term resources available to meet
these obligations.
The Liquidity Ratios Include:
 Current ratio
 Acid test ratio
Current Ratio:
Current ratio shows a firm’s ability to cover its current liabilities with its current assets.
Current Ratio = Current Assets/ Current Liabilities

11
 Year Current Ratio
2016 4527436/4541238 = 0.99
2017 4030906/3992286 = 1.00
2018 5142811/5723098 = 0.89

1
0.98
0.96
0.94 Current Ratio
0.92
0.9
0.88
0.86
0.84
0.82
2012 2013 2014

INTERPRETATION:
Current ratio shows the liquidity position of the company. It represents a margin of safety or
cushion available to the creditors. It is an index of the firm’s financial stability. It is also an
index of technical solvency and an index of the strength of working capital. The ideal Current
ratio is 2.1 but this condition is applicable only when demand is very high, inflation is zero,
default risk is low & economic conditions are better. It was observed that current ratio in
2018 was 0.89, in year 2017 was 1.00 & in year 2016 was 0.99. It was increasing over the
year but this ratio was decreased in 2018. So a relative low value of the current ratio is
considered as an indication that the firm will find difficulty in paying its obligations.
Acid Test Ratio:
Acid test ratio shows a firm’s ability to meet current liabilities with its most liquid (quick)
assets.

Acid Test Ratio = Current Assets – Inventories – Prepayments/ Current Liabilities

12
 Year Acid test ratio
2016 1183545/ 4541238 = 0.26
2017 1428554/ 3992286 = 0.35
2018 2948821/5723098 = 0.52

0.6

0.5

0.4 Quick Ratio

0.3

0.2

0.1

0
2012 2013 2014

INTERPRETATION
Quick ratio is very useful in measuring the liquidity position of the firm. It measures the
capacity of the firm to pay off current obligation immediately and is a more rigorous test of
liquidity than current ratio.
The acid test ratio of Media 11 Advertising was 0.26 in year 2016 & 0.35 in 2017 & 0.52 in
year 2018. The industry average ratio is 1:1 so it shows that company has very ways liquidity
position because its liabilities are greater than its assets.
FINANCIAL LEVERAGE RATIO:
 Debt to equity ratio
 Debt to total assets ratio
 Long term debt to total capitalization ratio

Debt - Equity Ratio:

13
Debt to equity ratio indicates the relationship between the external equities or outsider finds
and the internal equities or shareholder fund. It is calculated to assess the extent to which the
firm is using borrowed money.
Debt to equity ratio = Total debts/ Shareholder’s equity
Years Debt - Equity Ratio
2016 300000 / 1460672= 21%
2017 1000000 1258602= 79%
2018 201700/1201658 = 16%

80

70

60

50 Debt to Equity

40

30

20

10

0
2012 2013 2014

INTERPRETATION
The debt to equity ratio indicates the investment by outsiders in the company with relation to
the equity of shareholders. The industry average ratio is 60:40, so from this point of view,
MEDIA 11’s debt to equity ratio was 21% in year 2016 and 79% in 2017 and 16% in 2018.
MEDIA 11 ADVERTISING have excellent debt to-equity ratio in year 2017 but this ratio
decreased in year 2018 which is not good for the company. So it has much impact on the
financial position of the company. The creditors would generally like this ratio to below
because lower the ratio, the higher the level of firm’s financing that is being provided by
shareholders & the larger the creditor – cushion in the events of shrinking assets values or
outright loss.

Debt to Total Assets Ratio

This shows a debt financing to a firm by showing a percentage of assets that are supported by
debt financing. This ratio serves a similar purpose to debts to equity ratio. It highlights

14
relative importance of debt financing to the firm by showing the percentage of the firm’s that
is supported by debts financing.

Debt to total assets ratio = Total Debts/Total Assets

Years Debt to Total Assets Ratio
2016 300000/6564046 = 4.6%
2017 1000000/6503082= 15.3%
2018 201700/7363828 = 2.72%

16

14

12

10 Debt to assets

0
2012 2013 2014

INTERPRETATION
It shows how much sufficient our assets are in retiring the total debts .The debt to total assets
ratio of MEDIA 11 ADVERTISING was 4.6% in year 2016 ,15.3% in the year 2017 and
2.72% in 2018. So it indicates that company’s debts had been increased in 2017 to a
considerable extent & that was not a satisfactory condition for company. But by using special
policies company has controlled this ratio and it has been decreased in year 2018 from 15.3%
to 2.72%. In case, higher the debt-to-total assets ratio, greater the financial risk, so the lower
this ratio, the lower the financial risk of the company that is good for company.

Long Term Debt to Total Capitalization Ratio:

This ratio tells us the relative importance of long-term debt to the capital structure of the firm.
Long term debt/Total capitalization
Total capitalization = Long Term Debt + Shares holders security

15
 Year Long term debt to total capitalization ratio
2016 300000/1760672 = 17.01%
2017 1000000/2258602 = 44.28%
2018 201700/1399958 = 14.29%

45
40
35
Debt to Capitilization
30 Column1
25
20
15
10
5
0
2012 2013 2014

INTERPRETATION
The long term debt to total capitalization ratio show the percentage of long term debt to the
total capitalization of the company.
The company ratio was & 17.0% in year 2016, 44.3% in the year 2017, and 14.29% in 2018.
By analysing these ratios I can say that company’s ratios were satisfactory in 2016 & 2018
years but it has increases in 2017 year due to heavy debts taken by the company.

ACTIVITY RATIOS
Activity Ratios are also known as the efficiency ratios & turnover ratios that measure how
effectively the firm is using its assets.
The activity ratios include:
 Receivables turnover
 Inventory turnover
 Total assets turnover

Receivable Turnover

16
The receivable turnover ratio provides quality of the firm’s receivables & it shows how
successful the firm is in its collection.

Receivable Turnover = Annual Net Credit Ads/ Receivables

Years Receivable Turnover Ratio

2016 19366254/404741 = 48
2017 20508216/469911 = 44
2018 20025445/ 449023= 45

48

47

Receivable Turnover
46 Column1

45

44

43

42
2012 2013 2014

INTERPRETATION
A receivable turnover of MEDIA 11 ADVERTISING was 48 in 2016 year and 44 in
2017.and 45 in 2018. The turnovers of MEDIA 11 ADVERTISING was satisfactory because
this showed the number of terms, accounts receivable have been turned over during the year.
The higher the turnover the shorter the time between the typical sale & cash collection.
Average Collection Period
The average collection period tells us the average number of days that receivables are
outstanding before being collection.
Average Collection Period = Days in the year/ Receivable Turnover
Years Average Collection Period
2016 365/48= 7 days

17
 2017 365/44 = 8 days
2018 365/45 = 8 days

7.8

7.6
Average Collection
7.4 Period
Column1
7.2

6.8

6.6

6.4
2012 2013 2014

INTERPRETATION
The average collection period of MEDIA 11 ADVERTISING was 7 days in 2016 and 8 days
in 2017 and 2018 which shows that company collect its funds, aversely within a week. It
means chances of bad debts are lower. Although too high an average collection period is
usually bad, a very low average collection period may not necessarily be good. A very low
average collection period may be a symptom of credit policy that is excessively restricted.
The days’ receivable figure shows the average number of days’ Ads remain uncollected. This
ratio reflects both the efficiency of management in collecting receivable and the credit policy,
which the company maintains with its customers. For many companies, there will be one to
two month’s receivable outstanding. When the amount gets higher than two months, the
quality (that is, the likelihood of collection) of the receivable may be affected and the
company may have to raise additional funds to carry the larger amount of outstanding.

Inventory Turnover
Inventory turnover ratio is used to determine how effectively the firm is managing inventory.

Inventory Turnover = Cost of Ads/ Average Inventory

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 Years Inventory Turnover
2016 15001028/ 3031248= 5times
2017 15390723/2509030 = 6times
2018 1466049/2116257 = 7times

5 Inventory Turnover
Column1
4

0
2012 2013 2014

INTERPRETATION
The inventory turnover of MEDIA 11 ADVERTISING was 5 times in years 1998, 6 times in
2017 and 7 times in year 2018. This shows that company averagely maintains is inventory 6
times in a year. The inventory turnover of company is satisfactory.
Generally the higher turnover the more efficient will be the inventory management of the
firm. Relatively low inventory is often a sign of excessive, slow moving, & obsolescent items
in inventory.
Inventory turnover in days
Inventory turnover in days = Days in year/Inventory Turnover
Years Inventory Turnover in days
2016 365/5 = 73 days
2017 365 /6= 61 days
2018 365/7 = 52 days

19
 80

70

60
Inventory Turnover in
50 days
Column1
40

30

20

10

0
2012 2013 2014

INTERPRETATION
The inventory turnover of company was 73 days in 2016, 61 days in year2017 and 52 days in
year 2018. This shows that average inventory turnover of company is 62 days. That is
sufficient to the company to take & hold the inventory & later used it more effectively.

Total Assets Turnover

This ratio tells us the relative efficiency with which a firm utilized its total assets to generate
Sales.

Total assets turnover = Net sales/Total Assets

Years Total Assets Turnover
2016 19366254/ 6564046= 2.95
2017 20508216/6503082 = 3.15
2018 20025445/7363828 = 2.72

20
 3.2

3.1

3 Total Assets Turnover

Column1
2.9

2.8

2.7

2.6

2.5
2012 2013 2014

INTERPRETATION
It shows that firms must manage its total assets efficiently and should generate maximum Ads
through their proper utilization. As the ratio, increases there are more revenue generated per
rupee of total investment in asset. The firm ability to produce a large volume of Ads on a
small total asset based is an important part of the firms overall performance in terms of
profits. This ratio is satisfactory for company. It was 2.95 in year 2016, 3.15 in the year 2017
and 2.72 in year2018.
PROFITABILITY RATIOS:
 Gross Profit Margin
 Net Profit Margin
Profitability ratios are of two types, those showing profitability in relation to Ads to this
showing profitability in relation to investment. These ratios indicate the firms overall
effectiveness profitability in relation to sales.

Gross Profit Margin

This ratio tells us the profit of the firms relative to sales.
Gross Profit margin = Net sales – cost of sale/ Net sales
Year Gross Profit margin
2016 4365226/ 19366254= 22.54%
2017 5117493/20508216 = 24.9%
2018 5364954/20025445 = 26.79%

21
 27

26

25 Gross Profit Margin

Column1
24

23

22

21

20
2012 2013 2014

INTERPRETATION
Gross profit margin tells us the ratio of profit turned on Ads. MEDIA 11 ADVERTISING
gross profit margin is quite fluctuating. Company’s gross profit margin has been increased in
2017 and in 2018. It may be due to increased in sales. This ratio also tells us the profit of the
firm relative to sales after we deduct the cost of sales. So company is doing very good
business.

Net Profit Margin

The net profit margin is a measure of the firm’s profitability of Ads after taking account of all
expenses to income taxes.
Net profit margin = Net profit after taxes/ Net sales
Year Net Profit Margin
2016 763960/19366254 = 3.94%
2017 1339114/ 20508216= 6.5%
2018 1222871/20025445 = 6.1%

22
 7

5 Net Profit Margin

Column1
4

0
2008 2009 2010

INTERPRETATION
MEDIA 11 ADVERTISING net profit margin is quite fluctuating over the years. It was
3.94% in year 2016, 6.5% in year 2017 and 6.1% in year 2018.As net profit margin shows
profit after paying taxes so it depended on better cost control, efficient margin, market
opportunity & determent of debts.

Profitability in relation to investment

These ratios include:
 Return on total assets
 Return on equity

 Return on total assets

This ratio compares unfavourably of the industry. Higher profitability leads to lower return
on assets.
Return on Total Assets = Net profit after taxes/ Total Assets

23
 Years ROA
2016 763960/6564046 = 11.64%
2017 1339114/6503082 = 20.6%
201 0 1222871/7363828 = 16.6%

25

20
Return on Assets
Column1
15

10

0
2012 2013 2014

　
INTERPRETATION
The return on total assets tells us how efficiency assets have been used in carving income.
Higher is the ratio, higher will be the profitability of organization. So MEDIA 11
ADVERTISING return on total assets is satisfactory though it is fluctuating.

Return on Equity
This ratio tell us the carving power on share holders book value inventory & is frequently
used in comparing two or more firms in as industry.
Return on equity = Net profit after taxes/ Shareholders equity
Year ROE
2016 763960 /1460672= 52.30%
2017 1339114/1258602 = 106.4%
2018 1222871/ 1201658= 101.9%

24
 120

100

Return on equity
80
Column1

60

40

20

0
2012 2013 2014

INTERPRETATION
A high return on equity after reflects the firm acceptance of strong investment opportunities
& effective expense management. However if a firm has chosen to employ a level of debt
that is high by industry standards assuming exercise financial risk.

25
3.3 COMMON SIZE ANALYSIS
3.3.1VERTICAL ANALYSIS
“The term vertical analysis refers to a static measure that is frequently used in referring to
ratios for one year figures or for one year of accounting period. These analyses can be
compared over a number of years”.
MEDIA 11 ADVERTISING Balance Sheets For the year 2016, 2017 2018
VERTICAL ANALYSIS (rupees in thousands)
　 2016 (%) 2017 2018 (%)
(%)
Assets:
Tangible fixed Assets:
Operating Assets 26.42 26.96 20.09

Capital work in Progress at cost. 1.54 0.55 0.68

Intangible fixed Assets:

Long term investment 1.46 1.46 1.29
at cost
Long term Deposit & Prepayments 1.24 3.30 2.32

Long term loans 0.50 0.46 0.48

Current Assets:

Store & Spares 2.87 2.72 1.63

Stock in trade 47.26 35.38 27.10
Trade debts 3.33 3.89 2.54

Loans & advances 1.37 1.05 1.45

Trade deposit & short term prepayments 1.04 1.43 1.06
Other receivables 2.42 3.33 3.56
Taxation payments less provisions 9.48 6.04 2.0

Cash & bank balance 1.06 7.63 30.49

26
Interpretation
In calculating the vertical analysis of “MEDIA 11 ADVERTISING total assets has been
taken as base figure & all other items have been divided by total assets, to show the
percentage of that item to total assets. So from this analysis, I see that
LIABILITIES & SHARES HOLDERS EQUITY:
Share Capital & Reserves
Share Capital
The share capital was 10.19% in 2016, which means that company lacks cash to meet its
debts. It has little increased in 2017 but in year2018 it has again reduced.
Reserves
The reserves of company were increasing in previous two years, which was good for the
company in paying of its debts. But in year 2018 the reserve has decreased and it reduce the
company’s ability to pay its debts.
Un-appropriated Profit
The un-appropriated profit of company was 5.45% in 2016 so it was better for company to
increase it. But again in 2017 & 2018 it has decreased that is not good for the company.
　
Surplus on Revaluation of fixed Assets
The surplus was decreasing over time, so it was good up to some extent for company.
Liabilities against Assets Subject to Finance Lease
These were also decreasing so these were good for company. Because this liability is
reducing and this will be result in solvency of company. So In 2017 & 2018 there were no
liabilities against assets subject to finance lease.
DEFERRED LIABILITIES
Deferred Taxation & Staff Requirement
These were decreasing overtime so these were resort in greater profitability of the company.
The major reason for a decrease may be that the company is trying to increase its reserves, so
that company can pay its debts at the time when it rises.

27
Current Liabilities
All the current liabilities of company were decreasing except the accrued liabilities which
were increasing in 2016. The basic reason for a decrease in liabilities may be that long terms
as well as short term loans of the company are less.
Hence, in over all sense, we can say that liabilities are on decreasing part & assets are on
increasing trend, although, some of the current assets such as cash & Bank balance were
decreasing but it has little increased. The main reason for a decrease in these assets may be
that less assets are in progress as well as the demand of some products is decreasing due to
fluctuations in prices.
Assets
Tangible Fixed Assets
Operating Assets
The operating assets of company were 26.42% in 2016, 26.96% in 2017 & 20.09% in
2018.By analysing these figures. I can say that operating assets of company were increased in
2017,but decreased in 2018.The basic reason for a decrease in operating assets in 2018 may
be the terrorist attack on world trade centre that have appeared in that year.
Capital Work in Progress
The capital work in progress of the company was increasing over the number of years, so it
was good for company. It was decreased by in 2017 but due to the good management policies
it again increased in the year 2018.
Intangible Fixed Assets
Long Term Investment
The long term investment of company was 1.46% both in 2016 & 2017 &1.29 in 2018. As it
indicates that investment of the company was good in the previous years but it decrease in the
year 2018.The main cause for a decrease in long term investment in 2018 may be the political
instability so because of this, the company was investing less in business.
Long Term Deposit & Prepayment
As company’s profitability is of major concern for the creditors and the long-term deposit &
prepayments of the company was increasing over time, which is a good sign for company’s
profitability. In 2017 it was increased by 1.74% from the previous year.

28
Long Term Loans
The long-term loans of company were 0.50% in 2016 and in 2017 it was decreased to 0.46%.
This shows that company’s long term loans are decreasing. But in the year 2018ther is a
slight increase in the long term loan of the company and these are 0.48%.

CURRENT ASSETS
Stores & Spares
The stores & spares of company were 2.87% in 2016, 2.72% in 2017 &1.63% in2018. In
2018 stores & spares decreased due to finances problems which not a healthy sign for
company.
Stock in Trade
The stock in trade was more in 2016 as compared to other two years so it leaded to the
profitability of company. The main reason for an increase in stock trade may be that fewer
assets were used for carrying out the production but in 2018 & 2018 more assets were used so
it started declining again.
Trade Debts
The trade debts were also the receivables of the company & it was increasing over time. But
it decreased in 2018.So it is good for company. As the investment is low so the company is
giving credit to its customers so that cost can be recovered soon.
Loans & Advances
Loans & advances were decreasing in previous two years but in 2018company’s long term
loan and advances have increased as compared to other two years so it is not a healthy sign
for company’s prosperity. Because the debts of the company has increased decreasing.
Trade Deposits & Short Term Prepayments
The trade deposits & short-term prepayment were increased in 2017 as compared to the
previous year, which means that the company had enough cash to meet its debts. But it
sudden decreased in2018.

29
Other Receivables
The receivables of the company were2.42% in 2016, 3.33% in 2017 and 3.56% in2018.These
were increasing which shows that the company is giving credit to its customers, in order to
generate funds for carrying out the operations.
Taxation Payments less Provision
These were also on increasing, which resorted in increased profitability of company, but in
2017 &2018 it was decreased by as compared to 2016 due to weak profitability.
Cash & Bank Balance
The cash & bank balance was 1.06% in 2016. It was decreasing overtime so it was not good
for company because it reduced the solvency of the company. But due to cash received from
receivables it increased in 2017 (7.63%) and in2018 (30.49%) and company has more cash
and bank balance.

30
 MEDIA 11 ADVERTISING Profit and Loss Accounts
For the year 2016, 2017 & 2018
VERTICAL ANALYSIS (rupees in thousands)
2016 (%) 2017 (%) 2017 (%)

ADS 100 100 100

Cost of Ads 77.4 75.04 73.21

Trading profit 22.54 24.95 26.79

Administration & Selling Expenses 13.94 13.26 14.75

Operating profit 8.57 11.68 12.04

Other income 0.18 0.21 0.70

Financial expenses 1.27 0.69 0.97

Auditors remuneration 0.03 0.04 0.05

Workers welfare funds 0.12 0.21 0.22

Workers profit participation Funds 0.32 0.56 0.51

Profit before taxation & Restructuring cost 7.0 10.4 10.6

Restructuring cost 0.98 - 1.13

Profit after restructuring cost 6.02 10.4 9.52

Taxation 2.07 3.86 3.41

Profit after taxation 3.94 6.53 6.11

INTERPRETATION
In calculating vertical analysis of profit & loss accounts, Ads are taken as base and all other
items are divided by the Ads which show the percentage of that item to the Ads.
So from vertical analysis, I make the following interpretations of different item.
Sales
The Ads of company was 100% in each year that means company sold all the things that it
made with a particular period of time so it is a healthy sign for company’s prosperity.

31
Cost of Sales
The cost of Ads was 77.45% in 2016, 75.04% in 2017 &73.21 in 2018. The cost of Ads was
decreasing over time and it should be less because purchasing in bulks provided economics of
scale to manufacturers.
Trading Profit
Trading profit of company was increasing and it was good for company. The basic reason
may be that Ads are more whereas cost of Ads is less over the year.
Administration and Selling Expenses
These expenses were increased in 2016 but start on decreasing so these do not provide
healthy sign for company’s prosperity, but it does mean that the position of the company is
not good. The basic reason for a decrease in these expenses may be the effective cost control
of the company over these expenses.
Operating Profit & Income
The profits of company & other income were increasing and it may be due to proper cost
control. This is a very healthy sign for the company.
Financial Expenses
The financial expenses of company were decreasing over time so it is good for company. It
means that the company has effective cost control over the expenses. But in year 2018
company’s financial expenses have increased as compared to previous year.
Auditor’s Remuneration
Auditor’s remuneration is increasing over the year but there is a little increase every year
which has no significant effect on the company position.

Worker’s Funds & Participation Funds

These were increasing which provided a healthy sign for company’s growth. Because when
these funds would raise then more workers would satisfied, and then productivity of the
company would increase.
Profit Before Taxation & Restructuring Cost
Both of these were good because these are increasing over the year and it increased the
profitability of company.
Taxation & Profit after Taxation
Profit after taxation was increasing but in the year 2018 it has decreased due to increase in the
restructuring cost.

32
Hence I can say that the company is exercising effective cost control over its operations & it
is also having increased profit over the years.

33
3.3.2 HORIZONTAL ANALYSIS　
MEDIA 11 ADVERTISING Balance Sheet
Horizontal analysis
For the year 2016, 2017 & 2018
HORIZONTAL ANALYSIS (rupees in thousands)
  2016 2017 2018
SHARE CAPITAL AND
RESERVES
Issued, subscribed and paid up 100 100 100
capital
Reserves 100 101 100.6
Inappropriate profit 100 43 26
SURPLUS & REVALUATION 100 98 97
OF FIXED ASSETs

REDEEMABLE CAPITAL
Long term finance under mark- 100 33 66
up arrangement
Liabilities against assets subject 100 0 0
to finance lease
DEFERRED LIABILITIES
Deferred taxation 100 141 88
Staff retirement benefits 100 63 90
CURRENT LIABLITIES 100 96 89
Current maturity of redeemable 0 0 0
capital
Current maturity of liabilities 100 62 0
against assets subject to finance
lease
Finance under mark-up 100 30 8.4
arrangement
Creditors, accrued and other 100 66 107
liabilities
Dividends 100 321 236
CONTINGENCY& 0 0 0
COMMITMENT

Interpretation 　
All items are decreasing except reserve capita, other liabilities and dividend. There is no good
point in horizontal analysis for company. It do not showing good position of company. But as

34
liabilities are also decreasing except other liabilities its showing good for company but not
from the assets side and cash. Reserves of the company increase in 2017 but also fall in 2018
with .4.
Inappropriate profit also decrease in 20170and 2018 with huge amount which is not good for
company. Surplus and revaluation of fix assets also decrease in 2017 it becomes 98 and with
the more fall in 2018 it becomes 97.
Long term finance under mark up arrangement decrease from 100 to 33 in 2017 but increase
in 2018 with 66. liabilities against assets subject to finance lease decrease in 2017 and 2018
till to zero. Deferred taxation increase in 2017 with 141 and decrees in 2018 to the 88.
Current liabilities decrease in 2017 to the 96 and more decrease in 2018 to the 89 so it is
beneficial for company. finance under mark up arrangement decrease very high in both
years. Dividend increase very high in 2017 to the 321 and decrease in 2018to the 236 amount.

35
 MEDIA 11 ADVERTISING Income Statement Horizontal analysis
For the year 2016, 2017 & 2018

2016 (%) 2017 (%) 2018%

Sales 100 105 103

Cost of sales 100 102 97

Trading profit 100 346 122

Administration & Selling expenses 100 100 109

Operating profit 100 144 145

Other income 100 123 395

Financial Expenses 100 143 150

Auditors remuneration 100 57 78

Workers welfare funds 100 34 167

Workers profits participation fund 0 0 0

Profit before taxation & restructuring cost 100 187 188

Restructuring cost 100 182 164

Profit before taxation & after restructuring cost 100 90 124

Taxation 100 157 157

Profit after taxation 100 0 118

Interpretation

36
Sales
The Ads of company were increasing in 2016 & 2018 and sales increase.
In 2016, the Ads of the company decreased to 29.97% & it indicated that volume of the
company was going down. In 2018 it has also decreased to 2.35 %.
Cost of sales
The cost of Ads was greater than Ads profit of company in 2017 & decrease 2018 it may be
due to
Administration & Selling Expenses
The selling & administration expenses were low in 2016 and2017 which means that company
has better control over cost & it was good for company. but in year 2018 these have slightly
increase due to some unexpected expenses.
Operating Profit
The operating profit of the company is increasing over the year and it is a healthy sign for
company that after meeting cost & selling expenses the company was earning more profit but
in 2018, company’s profit has increased to a little but it was again good for the future
prospects of company.
Other Income
The other income of the company was much decreased in 2016 due to decrease in Ads etc.
but in the following year company’s income has increased to a greater extent that is a good
sign for the company. Company can invest this amount in the business and can earn more
profit.
Finance Expenses
Decreased in financial expenses in 2017 and 2018 was due to
Auditors Remuneration
The auditor’s remuneration was decreasing in 2017 because a decrease in operating assets
and Ads etc. but in 2018 it started to increase again.
Worker’s Welfare & Participation Fund
These were increasing overtime. So it was not good for company. It was necessary for
company to increase these funds to activate the employees. In 2017 company changed its
policy and it has increased these funds were satisfied in that year.

Profit Before Taxation & Restructuring Cost

37
Profit before taxation was increased in 2017 due to decreased in tax & due to change in tax
rates. But it again increased in 2018 due to decrease in tax and in the increased due to
decrease in worker’s participation funds.
Profit after tax & Restructuring Cost
Profit was increasing due to restructuring cost but as there was no restructuring cost in 2017
the company’s profit was increased but ion the year 2018 profit was decreased due to
restructuring cost.
Taxation
Taxation was increased in 2017 to and again decrease in 2018
Profit after Taxation
Profit after taxation increased in the year 2017 & decrease in 2018 due to decreased in sale
but it was good in the year 2017 due to high Ads

38
 Chapter 4
SWOT ANALYSIS

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. It involves
specifying the objective of the business venture or project and identifying the internal and
external factors that are favorable and unfavorable to achieve that objective. The technique is
credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and
1970s using data from Fortune 500 companies.

A SWOT analysis must first start with defining a desired end state or objective. A SWOT
analysis may be incorporated into the strategic planning model. Strategic Planning, has been
the subject of much research.

39
  Strengths: characteristics of the business or team that give it an advantage over others
in the industry.
 Weaknesses: are characteristics that place the firm at a disadvantage relative to others.
 Opportunities: external chances to make greater sales or profits in the environment.
 Threats: external elements in the environment that could cause trouble for the
business.

4.1 What makes a SWOT analysis effort successful?

 You must start with your Vision, Mission and Values statement.

 You must objectively prepare your businesses internal and external status.

 You must be realistic and forthright in preparing the businesses and your strengths
and weaknesses

 Be specific but keep it short and simple, don’t over analyze.

 Developing strategies and tactics that match the SWOT analysis results.

 Writing an operating plan based on your SWOT Analysis, strategies and tactics.

 Implementation of a resulting operating plan.

4.2 SWOT Analysis Frames Company Strengths

Every organization has certain strengths, such as dominant market share, unique technologies
and a strong balance sheet. Not every strength is quite as evident, such as a company that is
very small but its size allows it to innovate on a much faster pace. Every company, even
those which are not experiencing success, has strengths. Some of the questions to ask to
determine company strengths are listed below.

 What is the company's market share?

40
  What are the company's major lines of business?

 Does the company have a pool of skilled employees?

 Are the company's sales & marketing functions effective?

 Does the company have a strong financial position? Can it raise capital?

 What are the company's historical operating results?

 Has the company demonstrated the ability to adapt and change?

4.3 Pinpoint Company Weaknesses

Every organization also has certain weaknesses, such as a strict regulatory environment or
lack of skilled employees. Not every weakness is as evident, such as bad morale or key
employee turnover. Every company, even those that are dominant in their markets, has
weaknesses. How much these weaknesses will affect the company is a matter of analysis.
Some of the questions to analyze this are listed below.

 What are the company's least profitable lines of business?

 Are any of the company's lines of business losing money?

 Is the company able to hire and retain talented employees?

 Are the company's sales & marketing functions effective?

 Does the company have a strong financial position? Can it raise capital?

 Is the company innovative? Has it brought new products or services to market?

 Does the company have high levels of corporate governance?

41
4.4 Analyze Opportunities & Threats in the Marketplace

All organizations have opportunities within the marketplace that they reside and, conversely,
no organization is immune to threats. A thorough review of the company's market will
provide the answer to the questions below and help to determine the opportunities which the
company should pursue as well as the threats it must avoid.

Opportunities

 Are there new technologies that the company can use to innovate?

 Are there opportunities to extend brands into related areas?

 Are there reasonable acquisition opportunities?

 Can the company move up the value chain?

 Are there opportunities for strategic partnerships with non-competitive businesses?

 Are there money-losing ventures that can be divested to increase profitability?

Threats

 Does the company have adequate reserves to withstand a down cycle?

 Is there trade union activity that could have an adverse effect?

 Are competitors eating away market share or driving down prices?

 Does the internet pose a threat to the company?

 Does lack of access to capital limit the company's ability to invest?

42
 Strengths
 An Advertising agency's strengths consist of internal factors that contribute to its
ongoing success. This can include all tasks that the organization does best as well as factors
such as the strength of its relationships with customers or a strong organizational culture.
Critical areas to analyze when examining the organization's strengths in the SWOT analysis
include marketing, finance and human resources. The possession of an especially talented
creative team is an example of an Advertising agency's potential strengths.

Weaknesses
 Weaknesses are internal factors that might hinder the Advertising agency and create
boundaries to success. A lack of marketing expertise is one example of a weakness that an
Advertising agency might possess. Another common weakness of Advertising agencies
includes the possession of clients who consist mainly of businesses with low-quality products
and services or products that are difficult to differentiate from others in the market. An
effective method of identifying the organization's weaknesses is to examine the competition
and determine where competing agencies excel.

Opportunities
 Opportunities are external factors over which the Advertising agency has no control.
Although the agency has no control over the existence of opportunities, it might choose to
exploit them as they arise. An evolving market, such as the Internet is one example of an
opportunity for an Advertising agency. An organization might also choose to move into a
new, international marketplace where effective competitors do not yet exist. Additionally,
market fluctuations might provide either opportunities or threats to an Advertising agency.

Threats
 Threats are also external factors of which the Advertising agency has no control.
These factors include issues such as fluctuating market conditions or upcoming legislation
that will affect how the organization does business. The PEST analysis is an additional
analytical tool that is helpful for identifying these external threats. The PEST analysis
examines external political, economical, social and technological factors that might affect the
organization.

43
4.5 My Activities
4.5.1 My Responsibilities

 I tried to Learned “General Documentation” for financing

 The duties that I performed and the thing I learned each day are given me by my

supervisor.

 I Learned basic operations.

 I Learned how to make entries.

 I Made balance sheet and entries.

 I Made Incoming and Outgoing cash flows of company.

 I Made entries in the Day Book.

 I Learned to Calculate Interest on debts.

 I was assign to write off assets

 I Checked the quantity of purchased goods.

 I Checked rates of purchased goods.

 I made account for depreciation of fixed assets:

 I made account for accrued expenses

 I went with supervisor for negotiations with creditor.

 I was assigned to do horizontal and vertical analysis and present its finding in

department
44
  I made ratios and then analyzed them.

 I also prepared the document of ratios and discus them with manager that it has very

up and falls.

 I helped in making entries

4.5.2 My practical experience

business organizations because without finance, there is nothing to plan and organize, direct,
Finance is being considered as the life blood of modern business and plays a key role in
activate and control.

"Financial management is a set of activities which are concerned with the acquisition of
funds and finding out the best uses for these funds."

Thus, finance is a study of revenues and expenditures of an individual or organization. This

means that finance deals with raising of funds for current requirements. So, we can say that
all the departments, sections and even a single task can't be completed effectively without
finance. Therefore, all the departments depend upon finance department.

Media 11 Advertising has it's own Finance Department in its premises. While this
department is headed by Finance Manager. While Finance Manager is involved in the
financial planning, future forecasting of financial needs and raising funds.

During my internship in Media 11 Advertising I worked in finance department successfully

completed all the task/duties that were assigned to me. During my internship report I learned
different types of entries which they use in their office to make accounts. They work in
software which was build in and do all type of transaction and their impact on each side.

In account department under the supervision of concerned officers, I came to know different
type of vouchers being prepared and their process of preparation. Vouchers are written
evidence of any business transaction. The different type of vouchers being prepared by the
account department of Media 11 Advertising . So for the proof of transaction they made the
vouchers I learned how they were issuing and using them.

45
I also learned that how they deal with banks and how they credited by banks. When interest
and loan amount is paid to bank, it is the banking department, which calculates the interest
amount due on .Although interest sheet is sent by bank but it is reconciles by the banking
department. The interest also calculated by company financial supervisor which is more
effective to know that what interest ratio is.

When they receipt cash from there customers they also make the voucher. These types of
vouchers are prepared when the cashier on behalf of the manger receive it. However, these
types of vouchers are small in quantity. On receipt of cash, cashier prepared the cash received
slip. Account officer prepares voucher on the basis of cash receipt prepared by the cashier. In
order to book the transaction they passed the entry in the books.

The time which I spent in finance department to understand the cash flow of the department.
The main purpose of the finance department is ensuring the availability of the funds for
operation and best utilization of available funds.

Finance manger prepares daily cash flows statement in order to determine needs and
utilization of funds. A weekly projected cash flows statement is also prepared in order to
determine the need of the coming week. An account officer prepares statement of all the
banks and list out the outstanding entries. He then traces the reason for these entries and put
bank reconciliation on the table of finance manager. On receipt of bank statement the
manager prepares cash flow statement and presents it to the finance director for future
actions. The main purpose of department is to maintain the desirable level of purchase, so
that ideal funds can stuck up in shape of heavy purchase or a position not arise.

They prepare the general documentation for financing in which they show their credibility. If
the documentation is prepared very well and tried to accomplish it without any mistake. On te
behalf of very well prepared documentation mostly the get credit from the bank. Mostly I did
what which my supervisor told me to do. I always wait for his instruction and then do that he
said to me. With the help of them I learned the basic operations of business which were
performing by them. They do day to day activities and always told me how to do it. With the
help of them I learned the basic entries which were made by them in day to day activities.
They use software for making entries but they also use book record and writing entries on
book so mostly my supervisor told me the way to make entries in the register. With the
passage of time he only told me the amount and where to make entry and do it own way.

46
I made the entries in balance sheet with the help of my supervisor. He also give me some
rough data to make balance sheet for my practicing. On my mistakes he directed me the right
way to make entries in balance sheet during practical work. So it helped me a lot to
understand practical work. I was assigned to write the company cash wich were received and
outgoes. I daily prepare net inflow and outflow of cash. For the expense the employees take
money for any outgoing work company so I was also assigned to check and make entries of
them. mostly in the absence of my supervisor I picked the phone calls and give the answer to
my supervisor.

I also tried my best to learn the software which is being used by them but I didn’t learned
completely because I do not have full excess to that compute. That is only used by my
supervisor that’s why he mostly brief me about that. I also took the inquiry about that
customer which receivables were to near to call. I also suggest them to call them for
collection of money. There customers are very good and have reputation that’s why they give
there receivables on time

I was also assigened to check out the interest rate on debts. I calculated it and gave it to my
supervisor then he said me to also compare it with others company interest rate that either our
debts interest is more then or not. I also calculated their competitors debts interest rate which
was high of thr competitor. Because the competitors are using a big portion of debt while it is
using share capital to the persons which are heavy investors and the relatives of Media 11
Advertising .

I also check out the prices of different things which were need to be purchased and write
them in the account. I daily prepared the different entries in my hand book and at the end
check them to me supervisor. I also calculate the depreciation old fix assets which were in the
company. I also prepared the ratio of the company which is the most old age technique to
know about the company position and then present them to my supervisor.

I also went with supervisor in meeting . I learned that how to work in organization. We daily
went with proper dressing because the whole staff come in proper dressing. Which had a
great impact on us. The time duration of internship was very effective and I found a lot of
things to learn which would help me to start my practical career.

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 Chapter 5
Conclusion & Recommendation

5.1 CONCLUSION
By analyzing the Financial Analysis of “MEDIA 11”, I can conclude that although the Ads of
the company were decreasing in the year 2016 & 2018. But it did not mean that the financial
position of the company is back or weak.
The major reasons for a decrease in sales may be
 Decrease in Demand

 Increase in Prices

At the same time, Administration & Selling expenses of the company was also decreasing,
which indicated that the company had the effective control over the expenses. At the same
time, due to decrease in profit, the taxation was also decreasing which indicated that company
is paying its taxes regularly. The dividend of the company is increasing due to increase in
cash and other current assets etc.
Hence, I can say that although some of the items of the “Financial Statement” are decreasing
but the company is still earning the profit. Now company is reviving its position and has
changed its short-term debts into long-term debts as in that case cost of funds is lower. The
company is managing well its Ads and receivables which reduced the possibility of bad
debts.
The main reasons for a decrease in profit may be that company wants to shrink its business in
Pakistan due to Economic and Political stability.
So, it is necessary for our Govt. to provide the stability to our companies so that these
companies can carry out its operations peacefully and all of these efforts will result in
increased returns of the organizations.

5.2 RECOMMENDATION
From the Quantum of the profit and its financial data it can be easily judged that MEDIA 11
ADVERTISING is performing well. Its customers are growing day by day and so its
profitability. The controlling body is responsible for the productive performance of the

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Company. Following are my observation and suggestion to improve the efficiency for the
development o the economy.
 As we know that company big portion of this amount is wasted purchasing of

luxuries. So it should be control.

 There is a criticism on the management that the salaries of the employees are

decreasing in every succeeding year. And I think this will shake the confidence and

working habit of the employees.

 There is another recommendation about the company that there is no proper timing of

the company and there is made an unnecessary delay in the companying transactions,

which might not be a good sign for the company from future prosperity point of view.

 Staff turnover particularly of trained staff result in financial and other losses. The

amount spent by the company on employment, induction and training of outgoing

officers constitutes to beat till another officer should ready prove this work. The

exodus of company officer in the past has worsened the situation.

 Most of the company employees, are sticking to one seat only with the result that they

become master of one particular job and lose their grip on other companying

operation. In my opinion all the employees should have regular job experience all out-

look towards companying. The promotion policy should be adjusted.

 Refresher Courses for the staff are most important in any international organization.

All the employees should have these courses according to their requirement. Foreign

experts can also be called for this purpose.

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 Every year some of the employees should be sent for training to other countries and

employees from other wings should be brought here. Some more reading material

should be provided. The purpose should be to educate the employees with the advance

studies in their field. The employee should be provided the opportunities to attend and

participate in seminars and lectures on companying.

 Company should give some more incentive to its employees in order to remove the

conflict between lower and higher officers and should try to improve the working

condition of the company.

 As such system should be designed that every employee who has some problems with

his officers can communicate it to the higher management and some steps must be

taken to improve that.

 Recruitments should be strictly on merit basis and induction should be after proper

and extensive training.

 Old and lazy staff should be replaced by young, qualified and energetic staff.

Foreign wings should be opened in order to capture the international market and to

earn international repute for the company.

 Working environment, equipment, furniture and staff dressing should be according to

the modern companying style.

 Proper attention should be paid to upgrade customer services. Company should adopt

the global organizational companying structure to meet the international standards.

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 References

 MEDIA 11 ANNUAL REPORT, 2016

 MEDIA 11 ANNUAL REPORT , 2017

 MEDIA 11 ANNUAL REPORT , 2018

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 ANNEXURE
BALANCE SHEET
2016 2017 2018
Tangible Assets
Operating Assets 1726334 1753313 1541313
Capital Work -In –Progress 101209 35837 50416
1827543 1789105 1591729
Intangible Fixed Assets
Long Term Investment –At Cost 95202 95202 95202
Long Term Loans 32800 30161 35865
Long Term Deposits And Prepayment 81031 214629 171253
Deferred Cost 000 343000 274400
Staff Retirement Benefits- 000 000 52534
Prepayment
Current Assets
Store And Spare 187486 177273 120464
Stock In Trade 2843762 2331757 1995793
Trade Debts 217501 253041 186806
Loan And Advances 89914 68659 106800
Trade Deposits And Short Term 312643 93322 77733
Prepayment
Other Receivable 187240 216870 262217
Taxation-Payment Less Provision 619381 393173 147540
Cash And Bank Balance 69509 496811 2245458
Share Capital And Reserves
Issued, Subscribed And Paid Up 669477 669477 669477
Capital
Reserves 433124 437507 436089
Inappropriate Profit 358071 154618 94392
1460672 1258602 1189958
Surplus & Revaluation Of Fixed 104708 103325 101743
Assets
Long Term Finance Under Mark-Up 300000 1000000 200900
Arrangement
Liabilities Against Assets Subject To Finance 2870 000 000

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Lease
Deferred Liabilities
Deferred Taxation 65394 92493 57943
Staff Retirement Benefits 89164 56376 81086
Current Liablities 154558 148869 139029
Current Maturity Of Redeemable 000 300000 1000000
Capital
Current Maturity Of Liabilities 3796 2371 000
Against Assets Subject To Finance
Lease
Finance Under Mark-Up 626399 194062 52727
Arrangement
Creditors, Accrued And Other 3555605 2352947 3828883
Liabilities
Dividends 355438 1142906 841488
4541238 3992286 5723098
Contingency & Commitment 000 000 000
6564046 6503082 7363828

Income Statement
　 2016 2017 2018
Sale 19366254 20508216 20025445
Cost of sales 15001028 15390723 14660491
Other profit 4365226 15117493 5364954
Administration and selling expenses 2705767 2721116 2953195

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Operating profit 1659459 2396377 2411759
Other income 35885 44306 141775

Financial expenses 247135 141660 195087

Auditors remuneration 6230 2154 10435
Amortization of deferred cost 000 000 68600
Workers welfare funds 23322 43620 43987
Workers profit participation funds 62816 114790 103301

Profit before taxation and restructuring cost 1355841 2132459 2132124

Restructuring cost 190000 000 225906
Profit before taxation and restructuring cost 1165841 2132459 1906218
Taxation 401881 792345 683347
Profit after taxation 763960 1339114 1222871
Inappropriate profit brought forward 259044 358071 154618

Appropriation 　 　 　
On accumulative preference share 239 478 239
Interim dividend on ordinary shares 332347 438698 498520
Purposed final dividend 332347 1103391 784338

Inappropriate profit carried forward 358071 154618 94392

54