SURVEY REPORT OF FINANCIAL MANAGEMENTSubmitted To: Mam Mehtab Ismail Kumbhar

WHAT IS SURVEY AND REPORT?

• Survey is a method of gathering information from individuals.

• A report or account is any informational work (usually of writing, speech, television, or film) made with the specific intention of relaying information or recounting certain events in a widely presentable form

• A survey report is a formal piece of writing based on research.

WAY AND SOURCE OF DATA:

• We make a questionnaire form in which we wrote 31 question which is related to the financial management that how they manage their finance or financial situation. • Our source of data is primary data (by conducting interview). This

make us more confident and reliable. We have gotten lot of information about everything which we want to know.

In our survey we visited 40 places with different individual. We have conducted survey two major sector:Banking sector.Market/sole proprietorship sector.

BANKING SECTOR:• The banking sector is the section of the economy devoted to the

holding of financial assets for others, investing those financial assets as leverage to create more wealth, and the regulation of those activities by government agencies.

 

• In banking sector, we visited 16 banks (including Islamic, commercial and conventional).

 

MARKET /SOLE PROPRIETOR SHIP

• The term market sector is used in economics and finance to describe a part of the economy. It is usually a broader term than industry, which is a set of businesses that are buying and selling such similar goods and services that they are in direct competition with each other.

• In market survey, we visited 24 shops which are mostly in sole proprietorship in nature.in market sector most of business are micro in nature and few were involved in macro in nature.

Q.NO:1 HOW MANY STAFF ARE INVOLVED IN FINANCIAL ADMINISTRATION OF YOUR ORGANIZATION?

• The answer is that majority of banks appointed loyal, trustworthy and limited staff for financial administration.

• In market sector mostly there is only one person who handled finance of the shop because of sole proprietorship in nature.

Minimum 2 person

Maximum 4 person

OUR NEXT QUESTION WAS THAT HOW OFTEN DO YOU COMPLETE YOUR FINANCIAL STATEMENTS?

• The answer is that mostly every sector either big or small make their financial record on daily basis and then convert or complete their financial statements yearly.

OUR NEXT QUESTION WAS THAT WHAT DID YOU DO AFTER YOU DISCOVERED THE PROBLEM ABOUT FINANCIAL MANAGEMENT? • Mostly shop keeper answered that if any financing problem occur

they take help from friends and take a view of all day activities for hand to hand solve their problems.

• In banking sector/super mart/Stylo/Bata/service companies consult with their head office or owner and arrange meetings to solve the financial problem.

OUR NEXT QUESTION WAS THAT HOW DO YOU ASSESS THE FINANCIAL SITUATION

IN YOUR ENTITY? • Financial situation assessed by different sources: SBP policies, SBP

rate analysis.• In market sector mostly people see their pervious statement to

assess the financial situation. Current situation of the firm is also helpful to assess them.

OUR NEXT QUESTION WAS THAT DO YOU HAVE AN UPDATE OF THE REVENUE AND ORDER FORECAST? AND HOW OFTEN DO YOU UPDATE THESE? All sectors update their revenue on daily basis. Some are done on monthly basis.Forecast is done for the purpose to gain breakeven. Treasury department do this update of revenue of forecast in bank.

Mostly shop keeper are satisfied with their financial management techniques but at macro level some banks and organization are not satisfied like state life insurance company is still using old method and techniques and using old software system in entity and this

same problem is occur in some banks like bank of Punjab.

OUR NEXT QUESTION WAS THAT ARE YOU SATISFIED WITH ALL FINANCIAL MANAGEMENT TECHNIQUES EMPLOYED BY YOUR ENTITY?

OUR NEXT QUESTION WAS THAT WHAT ARE THE STRENGTHS AND WEAKNESS?

• Insurance company’s strength is that they provide financial coverage.• Insurance company’s weakness are less training.

Satisfaction of customer

Strong relation of customer

Multi offering for investment and

saving

Banking sector strength vary from different banks. Banks first priority of strength is to trustable bank. And some are:

Bank sector weaknesses are:Policy

weaknessSlow branch networkingWorking load

Small no. Of branches

Using old software

Market sector strengths is that they are:Offering best

quality productOffering suitable

price

Market sector weakness are:

OUR NEXT QUESTION WAS THAT WHAT ARE THE OPPORTUNITY AND THREATS?

Insurance company (state life) and takaful company (Dawood family takaful) opportunity is that they are serving all across Pakistan and providing coverage.

Bank opportunities are:

Increase number of branches in interior areas.

Huge market for capturing the customers service according to need of business.

Over all threats for all sectors are competitor and government policies and strikes.

Market opportunity is: Seasonal occasion

OUR NEXT QUESTION WAS THAT HOW DO YOU USUALLY MANAGE YOUR EVERYDAY REVENUES?• Bank usually does not generate revenue on branch level. Or

some reply that they manage through accounts.• Market sector:• Make daily routine revenue and separate money for everyday

expenses.

OUR NEXT QUESTION WAS THAT PEOPLE SAVE OR INVEST FOR DIFFERENT REASON. WHAT ARE YOUR PERSONAL REASON TO HAVE MADE SAVING OR INVEST

Market sector generally keep their money in rolling; like investment and saving. And also use for expenses. Banking sector do both saving and investment. Profit rate are basically the reason for investment in credit, real state, equity and government work.

OUR NEXT QUESTION WAS THAT WHAT FINANCIAL SERVICE DO YOU PERSONALLY USE? Mostly in market sector, they usually use current account because

they are not interest paying.

Banks mostly used:

ATM Debit card

Credit card

Accounts

OUR NEXT QUESTION WAS THAT HOW OFTEN DO YOU COMPARE THE TERMS AND CONDITION FOR PROVISION OF FINANCIAL SERVICE BY VARIOUS COMPANIES BEFORE YOU BUY SUCH A SERVICE?

• Market sector basically focus on good quality at reasonable cost for them. as well as for customer.

• Bank sector replies that the company reputation (assets and its position) must matter and advertisement which they are giving is not false.

• Market sector focus on customer satisfaction when their customer are satisfied from their products, then they buy product continuously .market sector usually prefer:social media.Internet.Print media

• Banking sector mostly focus on banks profit. They buy those things which generate high profit and security.

OUR NEXT QUESTION WAS THAT WHAT SOURCE OF INFORMATION DO YOU PAY ATTENTION TO WHEN CHOOSING A COMPANY TO BUY A SERVICE FROM?

OUR NEXT QUESTION WAS THAT IS THE ORGANIZATIONAL STRUCTURE APPROPRIATE FOR THE NEEDS OF THE PROJECT?

Banking sector are totally satisfied from their organizational structure.

Market sector are not satisfied from their organizational structure because of small area and congested place.

Market sector:Micro/sole proprietor ship business are not legally registered.Macro business sector which hold its chain all over the Pakistan (like bata,stylo etc.) are legally registered.

OUR NEXT QUESTION WAS THAT IS THIS ENTITY LEGAL REGISTRATION?Banking sector are legally registered from SBP (state bank of Pakistan) and some department are registered from SECP (security exchange and commission of Pakistan).

OUR NEXT QUESTION WAS THAT IS THE FINANCE AND ACCOUNTS STAFF ARE ADEQUATELY QUALIFIED AND EXPERIENCED?Bank sector staff are mostly qualified and experienced.Market sector mostly prefer experienced staff not necessary to be qualified.OUR NEXT QUESTION WAS THAT DO YOU BUDGET INCLUDE PHYSICAL OR FINANCIAL TARGET?Yes, both sector’s (market and bank) budget include physical and financial target

OUR NEXT QUESTION WAS THAT ARE THERE WRITTEN POLICIES AND PROCEDURE COVERING ALL ROUTINE FINANCIAL MANAGEMENT AND RELATED ADMINISTRATIVE ACTIVITIES?The answer is given by bank sector is that: All working must be provided with in the policies already defined

by bank.

And market sector said yes we use all written policies and procedure covering all routine financial management and related administrative activities.

OUR NEXT QUESTION WAS THAT WHICH ACCOUNTING METHOD YOU ARE USING FOR DAILY BASIS WHETHER CASH OR ACCRUAL?The answer is that both sector use both methods for using their daily basis accounting.

OUR NEXT QUESTION WAS THAT IS THERE AN INTERNAL AUDIT DEPARTMENT IN THE ENTITY?

• All banks have internal audit department.• Market sector do self-audit of their entity.

OUR NEXT QUESTION WAS THAT WHAT YOUR REQUIREMENT FOR AN INTERNAL AUDIT?(SENIORITY, QUALIFICATION BASIS, EXPERIENCED)

Not applicable in market sector because in market they do self-audit so about their opinion there is no necessary any requirements.

Qualification 60%

Experienced 40%

Seniority 40%

OUR NEXT QUESTION WAS THAT IS THERE A SYSTEM OF ADEQUATE SAFEGUARD TO PROTECT ASSETS FROM FRAUD, WASTE AND ABUSE? Bank sector said off-course bank has introduce policy to prevent from fraud, waste and abuse. Proper check and balance in branches and head offices Time to time makes amendment to their policies.

Some shops are insured and some are not insured due to (haram) reason. They keep saving for the purpose of protect asset. Use of backups.

OUR NEXT QUESTION WAS THAT ARE FINANCIAL MANAGEMENT REPORTS USED BY MANAGEMENT?

The answer is yes, both sector used financial management reports to improve the condition their entity.

OUR NEXT QUESTION WAS THAT IS THE FINANCIAL MANAGEMENT SYSTEM COMPUTERIZED/CENTRALIZED? The answer is that, in banking sector most of the banks are

centralized and very few are not centralized. In market sector mostly shops are manually but very few are

computerized.

In banks there are many peoples which they have been working for long time as well as short time of period.

OUR NEXT QUESTION WAS THAT FOR HOW LONG HAVE YOU HAVE BEEN WORKING FOR THIS ENTITY?

Minimum: 4 to 8 year years.Maximum: 10 to 15 years.

In market sector there were majority of the people working a long time because they have sole proprietor ship and they running about long time.

Minimum: 8 to 15 years.Maximum: 16 to 19 years.

OUR NEXT QUESTION WAS THAT WHICH OF THE ECONOMIC SECTOR BEST DESCRIBE YOUR ORGANIZATION?

Bank sector is best describe by economic sector (business community/stock exchange).

Banking sector best describe the market sector.

OUR NEXT QUESTION WAS THAT WHAT ACCORDING TO YOU IS THE MOST CHALLENGING ASPECT OF FINANCIAL MANAGEMENT?

In market, the most challenging aspect is to earn maximum revenue to manage their expenses (rent) and made saving for difficulty.

In bank sector they answered that:Financial technology (fin tech) companies are usually start-up companies based on using software to provide financial service. The increasing popularity of financial technology companies is disrupting the way traditional banking has been done.This create a big challenge for traditional banks because they are not able to adjust quickly to the changes _ not just in technology, but also in operation, culture and other facets of the industry.

OUR NEXT QUESTION WAS THAT WHAT DO YOU DO WHEN YOU IDENTIFY POOR PERFORMANCE POST REVIEW?In bank sector:

Tried to organize training sessions according to his responsibility and qualification.

To work hard with available resources, especially to complete task within given time frame.

In market sector: If performance is poor then we change variety and sell it at reasonable price. Arranging meetings to maintain the performance and try to kick out poor

performance. Training are made for workers to able well with customer.

OUR NEXT QUESTION WAS THAT HAVE YOU IDENTIFIED WHAT RELATIONSHIP WILL BE NECESSARY WITH EXTERNAL INVESTORS, BANKERS, OR OTHER PARTIES TO REACH YOUR FINANCIAL GOALS?

In bank sector: they answered that investors always invest for revenues and bank offered best services as per their investment to achieve the goal. And:

Strong binding needed Strong market

people

Strong share market

Satisfaction

Behavior

Co.-Operative

Positive

Professionally

In market sector the relationship must be:

OUR LAST QUESTION WAS THAT STARTING OF THE DAY YOU MAKE A DAY PROFILE OR ALL THINGS MANAGED THAT YOU WILL DONE THESE IN A DAY, SO IN THE END OF THE DAY WHAT DID YOU SEE ARE YOU SATISFIED OR NOT FOR WHAT HAVE YOU DONE IN ALL DAY?Mostly answers comes for majority of the people that based on fluctuation of current business situation prevailing in market. Sometime totally satisfied but some time dis-appointed by their performance.

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