Company Websites

Company Websites

Pakistan

• Kohinoor Maple Leaf Group; 
• www.facebook.com/pages/Maple-Leaf-Cement-Factory
• Best Way
• PSO
• Shell
• nimir
• Habib Modaraba

GROUP OF COMPANIES

• JAFFAR GROUP-Incorporated in Karachi on July 02, 1948
• Murshid Builders (Pvt.) Limited-Karachi in 1984
• National Insecticides Company (Pvt) Limited (NICL)
• Jaffer Agro Services (Pvt) Limited (JASPL) 
• PREMIER GROUP-1950
• Premier Sugar Mills & Distillery Company Limited
• Frontier   Sugar   Mills & Distillery  Limited
• Chashma Sugar Mills Limited

Foreign Exchange Transfer, Nov-25, 2013

Structured Finance

Structured Finance

A service that generally involves highly complex financial transactions offered by many large financial institutions for companies with very unique financing needs. These financing needs usually don't match conventional financial products such as a loan.

Structured finance has become a major segment in the financial industry since the mid-1980s. Collateralized bond obligations (CBOs), collateralized debt obligations (CDOs), syndicated loans and synthetic financial instruments are examples of structured financial instruments.['

Structured finance is a broad term used to describe a sector of finance that was created to help transfer risk and avoid laws^[1] using complex legal and corporate entities. This risk transfer as applied to securitization of various financial assets (e.g. mortgages, credit card receivables, auto loans, etc.) has helped provide increased liquidity or funding sources to markets like housing, and/or to transfer risk to buyers of structured products. However, it arguably contributed to the degradation in underwriting standards for these financial assets, which helped give rise to both the inflationary credit bubble of the mid-2000s and the credit crash and financial crisis of 2007-2009.^[2]

Common examples of instruments created through securitization include collateralized debt obligations (CDOs) and asset-backed securities (ABS).

Securitization[edit]

Main article: Securitization

Securitization is the method utilized by participants of structured finance to create the pools of assets that are used in the creation of the end product financial instruments.

Reasons for securitization[edit]

• Better utilization of the available capital
• Alternative funding
• Cheaper source of funding especially for lower rated originators
• Reducing credit concentration
• Risk management interest rates and liquidity

Tranching[edit]

Main article: Tranche

Tranching is an important concept in structured finance because it is the system used to create different investment classes for the securities that are created in the structured finance world.Tranching allows the cash flow from the underlying asset to be diverted to the various investor groups. The Committee on the Global Financial System explained tranching succinctly: "A key goal of the tranching process is to create at least one class of securities whose rating is higher than the average rating of the underlying collateral pool or to create rated securities from a pool of unrated assets. This is accomplished through the use of credit support (enhancement), such as prioritization of payments to the different tranches."^[3]

Credit enhancement[edit]

Main article: Credit enhancement

Credit enhancement is key in creating a security that has a higher rating than the issuing company. Credit enhancement can be created by issuing subordinate bonds. The subordinate bonds are allocated any losses from the collateral before losses are allocated to the senior bonds, thus giving senior bonds a credit enhancement. Also, many deals, typically deals involving riskier collateral such as subprime and Alt-A, use overcollateralization as well as subordination. In overcollateralization, the balance of the loans is greater than the balance of the bonds, thus creating excess interest in the deal. Excess interest can be used to offset collateral losses before losses are allocated to bondholders thus providing another added credit enhancement. Another credit enhancement involves the use of derivatives such as swap.

Credit ratings[edit]

Main article: Credit rating agency

Ratings play an important role in structured finance for instruments that are meant to be sold to investors. Many mutual funds, governments and private investors only buy instruments that have been rated by a known agency like Moody's or S&P.

Structure[edit]

Other structures[edit]

There are numerous structures which may involve mezzanine risk participation, options and futures within structuring of financing as well as multiple stripping of interest rate strips. There is no laid-out fixed structure unlike in securitization which is only a subset of the overall structured transactions. Esoteric transactions often have multiple lenders and borrowers distributed by distribution agents where the structuring entity may not be involved in the transaction at all.

Types[edit]

There are several main types of structured finance instruments.

• Asset-backed securities (ABS) are bonds or notes based on pools of assets, or collateralized by the cash flows from a specified pool of underlying assets.
• Mortgage-backed securities (MBS) are asset-backed securities the cash flows of which are backed by the principal and interest payments of a set of mortgage loans.
  • Residential Mortgage-Backed Securities, (RMBS) deal with Residential homes, usually single family.
  • Commercial Mortgage-Backed Securities (CMBS) are for Commercial Real Estate such as malls or office complexes.
  • Collateralized mortgage obligations (CMOs) are securitizations of mortgage-backed securities.
• Collateralized debt obligations (CDOs) consolidate a group of fixed income assets such as high-yield debt or asset-backed securities into a pool, which is then divided into various tranches.
  • Collateralized bond obligations (CBOs) are CDOs backed primarily by corporate bonds.
  • Collateralized loan obligations (CLOs) are CDOs backed primarily by leveraged bank loans.
  • Commercial real estate collateralized debt obligations (CRE CDOs) are CDOs backed primarily by commercial real estate loans and bonds.
• Credit derivatives are contracts to transfer the risk of the total return on a credit asset falling below an agreed level, without transfer of the underlying asset.
• Collateralized fund obligations (CFOs) are securitizations of private equity and hedge fund assets.
• Partial Guaranteed Structures (PGS)
• Future Flow TRansactions (FFT)
• Loan Sell Offs (LSO)

See also[edit]

• Pooled investment
• Securitization
• Thomson Financial League Tables
• Structuring

Apple profits fall for first time in a decade

Profits at Apple have fallen for the first time in a decade but the revival in its shares continued as the company announced the biggest share buyback by any business in history.

Chief executive Tim Cook aims to boost investor confidence by devoting $60bn (£39bn) of the company’s $137bn cash pile to a share repurchase progamme, and said he will also boost the dividend by 15pc to $3.05.

Apple profits fell 18pc/Margins dropped to 37.5pc, from 47pc a year ago.

Although analysts have predicted that Apple could launch both a cheaper iPhone for the emerging market and a larger one to compete with Samsung’s 5” S4 model,

Apple shares rose 5.5pc in extended trading, after closing up 1.9pc at $406.13, still far below September’s record high of $702.10.

Common Clues Of Financial Statement Manipulation

August 22 2009| Filed Under

Law enforcement has crime scene investigators to tell them the significance of a bloody fingerprint or a half-smoked cigarette, but investors are often left to their own devices when it comes to trying to figure out whether an accounting crime has taken place and where the fingerprint might be. Now more than ever, investors have to become forensic accountants themselves if they want to avoid being burned by unscrupulous accounting in a company's financials. In this article we will look at some common signs, both obvious and subtle, that a company is struggling and trying to hide it.
Exaggerating the Facts

With all the big baths that companies take, it's tempting to believe that Wall Street is the cleanest place on earth. The big bath refers to the swelling of corporate write-downs in the wake of poor quarters. When a company is going to take a loss anyway, they sometimes take the opportunity to write off everything they possibly can. This is often compared to spring cleaning; the company realizes losses from future periods and/or losses that were kept off the books in previous quarters. This makes poor results look even worse and artificially enhances the next earnings report. In this case, there is no actual crime taking place, but it is a deceptive accounting practice. However, the biggest problem with this practice is that once a company has taken a big bath, income manipulation is a step away. (For more insight, see Cooking The Books 101.)
A company taking a big bath isn't difficult to evaluate in comparison with other companies in its sector that haven't used deceptive accounting practices. Generally, the company has a very bad year followed by a "remarkable" rebound in which it begins to report profits again. The danger comes when companies make an excessive write down, such as claiming unsold inventory as a loss when it is probable that it will be sold in the future. In this case, when the inventory moves, the company would add the profits to their operational earnings. This type of income manipulation makes it hard to tell whether the company is actually rebounding or is merely enjoying the benefits of the items they "erroneously wrote off". This type of write off is similar to the difference between spring cleaning and burning down your house for the insurance money, so any company that rebounds quickly from a big bath should be viewed with suspicion. 

Smoke and MirrorsOne of the most prevalent approaches to corporate accounting is to omit the bad and exaggerate the good. There are a number of subjective figures in any financial report that accountants can tweak. For example, a company may choose to exclude costs unrelated to its core operations when figuring its operating cash basis - say an acquisition of another company or purchasing investments - but will still include the revenue from the unrelated ventures when calculating their quarterly earnings. Fortunately, companies have to break down the figures, thus dispersing the smoke and mirrors, but if you don't look beyond a few main figures in a company's financials you won't catch it. (For more on this, see How Some Companies Abuse Cash Flow and Analyze Cash Flow The Easy Way.)

Finding the AccompliceThere can be a number of accomplices to any accounting crime, but two popular suspects are special purpose entities (SPE) and sister companies. SPEs allowed Enron to move massive amounts of debt off its balance sheet and hide the fact that it was teetering at the edge of insolvency. Sister companies have also been used as a way to spin off debt as new business. For example, a pharmaceutical company could create a sister company and hire it to do its research and development (R&D) (pharmaceuticals' biggest expense). Instead of doing the work, the sister company hires the parent company to do their own R&D - thus the parent company's biggest expense is now in the income earned column and no one notices the perpetually debt-ridden sister company. Nobody, that is, except those who read the footnotes.
The footnotes list all financing related affiliates and financial partnerships. If there is no accompanying information disclosing how much the company owes to the affiliates or what contractual obligations there are, you have plenty of good reasons to be suspicious. (To learn more, read Footnotes: Start Reading The Fine Print, and How To Read Footnotes - Part 1, Part 2 and Part 3.)

Elder AbuseSometimes when a company is struggling, it starts dipping into financial reserves that it hopes no one will notice. Target No.1 is usually the pension plan. Companies will optimistically predict the growth of the pension plan investments and cut back on contributions as a result, thereby cutting expenses. When the pensions start coming due, however, the company will have to top off the plans from current revenue - making it clear that putting off expenses doesn't make them go away. A healthy company pension plan has become critical as baby boomers near retirement. (For more on this, see Analyzing Pension Risk and The Pension Benefit Guaranty Corporation Rescues Plans.)

Getting Rid of the BodyCompanies may try to hide an unsuccessful quarter by pushing unsold merchandise into the market, or into the distributors' storage rooms. This is usually called channel stuffing. This may save a company from a big quarterly loss, but the goods will return unsold eventually. Channel stuffing can be detected in two figures: the stated inventory levels and the cash meant to cover bad accounts. If inventory level suddenly drops or the money for bad accounts is drastically increased, channel stuffing may be taking place. 

Fleeing TownBecause the Canadian and American markets are so intertwined, companies that trade on both exchanges can choose which country's accounting standards to use. If a company changes from the historical accounting standards for that firm, there had better be a good explanation. The two systems, while generally similar, account for income in different ways that may allow a wounded company to hide its weakness by switching sides. Any change in accounting standards is a huge red flag that should prompt investors to go over the books with a fine-toothed comb. 
Guilty Tongues SlipDamning statements are often casually mentioned in a company's financials. For example, a "going concern" note in the financials means that you should get out your magnifying glass and pay close attention to the following lines. With the practice of overstating the positive and understating the negative, a company admitting to a "going concern" may actually be confiding that they are two steps from bankruptcy. Unexpectedly switching auditors or issuing a notice that the CEO is resigning to pursue "other interests" (most likely in the Cayman Islands) are also causes for concern.

ConclusionAlthough there are many interesting numbers in a company's financials that allow you to make a quick decision about a company's health, you can't get the full story that way. Due diligence means rolling up your sleeves and scouring the sheets until you are sure that those main figures are real. The best place to start looking for bloody fingerprints is in the footnotes. Reading the footnotes will provide you with the clues you'll need to track down the truth. 

Share Repurchase

Share Repurchase Agreement of AWT with Fuji Foundation

Fax

Dell's LBO

Dell's LBO: Internal Talking Points Disclosed In SEC Filing

While a lot of the detailed financial information about Dell‘s proposed leveraged buyout by founder Michael Dell and the private equity firm Silver Lake have yet to be disclosed, the company this afternoon made an 8-K filing with the SEC that provides some fascinating insights into the way Dell and the various constituencies involved in the deal are positioning the transaction to investors, the media, insider, partners and the general public.

the Street, which has been wondering how the company will be able to transform itself when burdened by billions in new debt to service

Going private will buy the company time to fix itself without worrying about the impact on quarterly results and fluctuating share prices.

Michael Dell, who engineered a $24.4 billion leveraged buyout of his namesake personal computer maker this week, posted an open letter to customers today, telling them the company will continue to grow through “organic and inorganic investments.”