71 out of 84 sugar mills declared losses in FY19: FBR chief

[B.K.N]

if you are not going to be profitable in the first few years you will never be profitable period...

These sugar Mills were always not in losses but are since few years
not exactly in losses but at minimum profit
and most of these Mills are decades old

 

[maithil]

How many of these are owned by de-facto PM ?

 

[ps3linux]

You are absolutely right. The kind of under reporting we have is phenomenal. Let me tell you one of my own personal experiences. In last budget government brought a provision to integrate our retail POS systems with FBR to share live sales data with FBR of each POS machine. The penalty of not integrating was 50% higher output sales tax. but to surprise me, one of the major player of the industry (who also happens to be a religious brand of the industry) refused to integrate. So unless he was slashing half of its official sales, there is no way he could have opt for not integrating with FBR. Here we are talking about formal corporate sector. Now imagine how much embezzlement opportunities are there who are dealing with informal sector of farmers.

By the way I am still ACA, but soon to become FCA within few months.

To be honest when I see people accusing others for corruption I usually try and look other way inside we are not so honest ourselves at least when it comes to the country. Let me give a simple example when we go to restaurants there are two type of bills offered by the management "kacha bill" means loose bill and "Pakka bill" means a proper receipt there is a price differential in both later being expensive due to tax implications, how many opt for the later type of bill is open for discussion.

In Punjab there is another option available which is cash memo generated through PRA(Punjab Revenue Authority) linked billing machines. Where I usually dine they have this PRA linked machine and there is a large hanging mentioning paying the bill through this method and personally I always ask for the receipt generated through PRA linked machine.

 

[valkyr_96]

Who told you private companies has less profits? Not all the private companies has less profits. Khaadi is a private limited having profits in billions.

Regarding EY re-read the first para of article you shared:

Ernst & Young, the global accounting and professional services firm that goes by its brand name EY, is re-evaluating its relationship with its Pakistani partner Ford Rhodes Sidat Hyder, which includes the possibility that EY will sever its ties with its local partner altogether.

So its nothing to do with business or portability in Pakistan but a dispute between local firm partners and EY partners. If you go back into history EY and Sidhat Hyder were two different that got merged but now they are again evaluating to get separated.

The statement about fee is writers own view and has nothing to do with reality. Recently AFF gave Audit to all senior partners of the firm. How many businesses in the country can afford to give Audi to all the directors of the company ? None

I have seen financials of these firms and they are minting money like no other business so the claim that EY is going to exit Pakistani market is nothing but stupid and has no basis.

I am from the profession so I know it very well.

I don't have to add much here...I know for a fact that JSBank switched to EY because they were much lenient with compliance/provisioning than PWC. It seems that given the rise in interest rate and expected cut in growth. EY must be increasing vigilance expecting defaults (as a result finding laxed behavior from its local partners). Since Arthur Anderson, both EY and PWC has faced monetary damages from its partners in various countries including developed ones. They have never pulled out from any country. This seems like a lame excuse.