The term ‘ value ‘ has been used to convey a variety of meanings.The different meanings of a value for different purposes.Followings are the different concepts of value.

1. Present Value:- Value is the function of cash flows and their timings and risk.When cash inflows are discounted at the required rate of return to account for their timing and risk we get the value or present value of asset.In  financial decision making the present value concept is relevant.

2.Going concern Value:- In the valuation process the valuation is done on going concern basis.The going concern value is the price which a firm could realize if it is sold as an operating business.The Going Concern Value is always higher than liquidation value.

3. Liquidation Value:-If the firm decides to go out of business it will sell its assets.After terminating the business,the amount which will be realized from sale of assets is known as liquidation value.Since the business will be terminated,the organisation will be valueless and intangibles will not fetch any price.The liquidation value is the lowest value of the firm.Generally the true value of the firm will be greater than the liquidation value

4. Replacement Value :- The assets are shown on historical cost in the balance sheet.This cost may not relevant in the present context.Replacement value is the cost which is a firm will have to spend if it were to replace the asset under present condition.va

5. Book Value :-The assets are shown in the balance sheet at cost less depreciation is called Book Value.The book value per share can be determined by dividing the common shareholders equity i.e capital plus reserves and surplus  by the number of shares outstanding.

6. Market Value :- Market value of an assets or security is the value at which it can be sold at present.It is argued that actual market prices are appraisals of knowledgeable buyers and sellers who are willing to support their opinions with cash.

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Financial Ratios indicate about the financial position of organisation.A company is deemed to be financially sound if it is in a position to carry on its business smoothly and meets its obligations,both short term as well as long term with out strain.It is a sound principle to finance that the short term requirement of funds should be met out of long term funds.v.z if the payment of raw materials purchases are made through issue of debenture it will create a permanent interest burden on the enterprise.Similarly,if fixed assets are purchased out of funds provided by banks overdraft,the firm will come to grief because such assets cannot be sold away when payment will be demanded by the bank.

Financial ratio can be divided into two broad categories.

• Liquidity  Ratios
• Stability Ratios

Liquidity ratios :- It is the measure the firms ability to meet its current obligations that is ability to pay its obligations as and when they become due.Low Liquidity may result in the failure of meeting firms short term liabilities which may carry bad name in the market.,loss of creditors confidence.A very high liquidity is also bad because the funds are unnecessary tied up in current assets.

Followings are important Liquidity ratios.

1.Current Ratio:-The current ratio is the ratio of total current assets to the total current liabilities.It is also called as working capital ratio.It is an index of concerns financial stability

2.Acid Test/Quick Ratio:-It is the ratio of quick assets to current liabilities .It is the measures the abi lity of the enterprise to pay off its current obligation immediately

Stability Ratio:-These ratio help in ascertaining the long term solvency of the firm.

1.Fixed asset ratio:- This ratio indicates how much the assets of an enterprise cover the amount of secured long term loan.

2.Capital Gearing Ratio:-This ratio determines the relationship between the debts of the company and shareholders funds.If the company has much more debts than own equity it is said to be highly geared  position which may yield some benefits to the shareholder.

3.Debt to equity ratio:-it relates all recorded creditors claims on the assets to the owners recorded claims in order to measure the firms obligation to creditors in relation to funds provided by owners.

4.Proprietary ratio:- It is relationship between the proprietors funds and total tangible assets.

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Stock levels are maintained in such a way that there is no overstocking , so that chances of loss through damage,deterioration in quality, risk of obsolescence etc. are avoided along with unnecessary blocking of capital or paying a interest on borrowed funds.And also there should not be out of stock situation and ultimately loss of production ,delay in supply of order and subsequently  loss of sales and profit.

The production planning and control department or material management department taking care of this store management by fixing maximum,minimum,and ordering level and reorder quantity for stock items .

Reorder level:-This is the levels at which the storekeeper initiates purchase requisition for new order of material.The reorder level takes into account the maximum consumption during the lead time and unexpected delay in receiving the fresh order.

Lead time:- Is the time needs to obtain delivery of material from date of order.In case of delay in the  new lots to arrive, stock should not be zero level.Reorder level is calculated as maximum reorder period multiplied by maximum consumption.

Minimum level:-This represents a level which the stock will reach with fresh stock of material provided the fresh delivery is made within the reorder period and material consumption is constant.Stock is normally now allowed to fall below this level.This is also called as buffer stock which can be used in case of emergency.Stock should not be fall below this level suppose stock is fall below  this levels is called as Danger level and should take emergency step to replenish the stock other wise stock out situation will be there.

Maximum level:- The stock level above which should not be allowed to rise.The main purpose of this level is to ensure that capital is not blocked up unnecessarily in stores.It can be calculated by reorder level plus reorder quantity minus minimum consumption during reorder period.

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ABC Analysis is a technique of inventory control by classifying the all items of stores in to three  categories, namely

CATEGORY  A : A few items accounting for substantial usage in terms of total monetary value (  10 % items covering 75 % of value )

CATEGORY C : Large numbers of items of small value  ( 70  % items covering 10 % value )

CATEGORY B : In between items A and B  ( 20 % items representing 15 % value)

The main objective of the analysis is to decide guidelines for selective control over inventories. It is extremely difficult to control effectively if there if large number of items in stock.This system ensures strict control over a few materials ,which represents  bulk of the cost, so the direction of control is more cost effective .

This system also saves time and investment by taking corrective action on the three categories of store by using discretion.

Generally Category A items deserve strict control with say weekly control reports,maximum follow up efforts to reduce lead time etc.Category=b items require moderate control, and less expensive control may be applied to category=C items.

However care should be taken for critical items which are in category B or C but extremely important from the view of production process.

Advantages of this method :-

• It ensures closer control on costly items
• Clerical cost reduced and inventory maintained at the optimal possible level.
• Storage cost is reduced under this method .

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The techniques and process of ascertaining cost involve three steps

1. collection of expenditure or cost date
2. classification of expenditure as per cost elements,function etc and
3. Allocation and apportionment of expenditure to the cost centers and cost units

The System accumulates and classifies expenditure according to the elements of cost and then the accummulated expenditure is allocated and apportioned to the cost objects i.e cost centres and cost units

For this we should understand the term cost centres, cost units and cost elements

Cost centres:-Cost centre is defined as a location or any equipment or person in respect with the cost to be ascertained for the purpose of cost control.

Cost Units:- Cost unit is unit of product service or a combination of them in relation to which costs are ascertained or expressed.

Element of costs:- Elements are related to the process of manufacturing i.e the conversion of raw material in to final product.Cost are normally broken in to three basic part, material ,labour and expenses.

Each of the cost element can be again divided in to direct and indirect costs.

The cost which is identifiable to cost centre is to be allocated to the cost centre. and if suppose cost not able to allocate directly to the cost centre  can be apportioned to the production cost centre.

Cost management is use full for cost control and cost reduction by providing the accountability to each cost centre.

Classification of cost:-

• By nature of expenses i.e material,labour,Expenses
• By relation to the cost centre. i.e direct , indirect cost
• By Function i.e Production. selling and R and d Expenditure etc.
• By behaviour i.e fixed ,Variable, semivariable
• For management decision making i.e Marginal cost ,opportunity cost, Avoidable cost ,etc
• By nature of production process i.e batch cost,process cost,joint cost etc
• By time :- i.e Historical cost,standard cost, estimated cost etc

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The cost of capital is the cost that the company has to pay to the market for different source of finance.Such cost would simply be the interest rate in case of borrowed funds, specific rate of dividend in case of preference share capital,expected ‘cash dividend’ during current year and  growth dividends plus   capital gain in future  in case of equity share holder.

Concept of Cost of Capital.

Cut -off-Rate :- Cost of capital is minimum required rate of return or earnings from any given project needed to justify the use of capital.In other word is the rate that must be paid to obtain funds for the operation of the firm.

Lending or borrowing Rate :- Borrowing rate is the rate at which a given firm will have to pay for obtaining capital from the market, whether it is from shareholder of other lenders.As  between these two rates whichever rate is higher is to be used for discounting purpose while making investment decision.

Opportunity cost:-This is an alternative concept of cost of capital.It is the value of the alternatives foregone by adopting a particular strategy or employing resources in specific manner.

Explicit cost and Implicit cost:- The explicit cost of any source of capital may be defined as ” the discount rate that equates the present value of the cash inflows Thus explicit cost of capital is the internal rate of return of the financial opportunity.Implicit cost is the opportunity cost.

Although the determination of cost of capital in case of borrowed funds and preference share capital is easy.The estimation of the cost of equity and retained funds is quite difficult as the later depends upon relative change in the market price of share.

The cost of debt is simply the explicit interest rate,cost of preference share  is the coupon rate of dividend, cost of equity however is the expected dividend as well as the growth in it commensurate to the market going rate.The overall cost is nothing but the combined cost of each of these source of capital structure and averaging is to be done based on the their relative proportions.

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The success of the business concern largely depends on efficient purchasing,storage,consumption and accounting.Uncontrolled inventories are dangerous and at times it is called as grave yard of business.Hence, inventory control system should be designed to ensure the provision of the required quantity of material at the required time to meet the needs of production and sales, while at the same time keeping the investment in them at a minimum.

Objective of Inventory Management

Operative Objectives :- It aims at at avoiding the production bottlenecks by supplying the all types of raw material and avoid the downtime due to short supply of raw material and ensure the timely execeution of sales orders and better services to the customers.

Financial Objective:- It includes effecting economy in purchasing of the materials through EOQ and taking the advantages of favourable market  conditions and maintain the optimum level of inventories.

Cost for inventory 

1. Acquisition or ordering cost of inventories .
2. Material cost
3. Carrying cost or holding cost.
4. Overstock and under stock costs.

Inventory Control Techniques

1. Economic Order Quantity.
2. ABC analysis
3. Perpetual inventory
4. Value analysis
5. Inventory Turnover ratio
6. Input-Output ratio

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Working capital is the excess of current assets over current liabilities.Proper management of working capital is very important for the success of an enterprises.It aim purchasing power  of assets and maximizing the return on investment.Sales expansion ,dividend declaration plant expansion new product line increased salaries and wages,rising price levels etc puts added strain on the working capital maintenance.

Current Assets:- are  those assets that  can be turned in to cash with in brief period i.e one year. e.g Inventory, cash in hand and in bank,bills receivables,,prepaid expenses etc.

Current Liabilities:- Liabilities which can be paid with the short period normally one year e.g Bills payable, cash credit bank O.D, dividend declared and payable etc.

Sources of Working Capital.

Long term sources:-

1. Sales of shares
2. Sales of debentures
3. retained earnings
4. Sales of idle fixed assets

Medium and short term sources:-

1. Internal Sources

• Depreciation
• Reserves and provisions
• Inter- corporate loans and deposits

2.  External sources

• Trade credit
• Bank credit
• Public deposits
• Customers advance
• Factoring
• commercial paper
• Term loans

Working capital requirement can be determined mainly in the three ways

1.Per cent-of -sales method :- It is a traditional and simple method of determining the volume of working capital an its components , sales being the dominant factor.In this method working capital is determined as per cent of forecasted sales

2.Regression Analysis method:-It is the statistically method for forecasting the working capital.

3.The working capital cycle method:-It refers to the period that a business enterprise takes in converting cash back in to cash.

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Pranic healing is  healing system developed and promoted by choa kol sui which claim that the prana energy can be heal the ailments in the body by manipulation of the persons energy field.

Pranic healing is simple yet powerful and effective system of no touch  energy healing. It is an ancient science and art of healing that utilizes the prana or life energy to heal the whole physical body. Prana is a life energy which keeps the body alive and healthy.The healer projects prana or life energy   to the patient , thereby healing the patient.It not required drug and not even physical contact with subject.Physical contact is not required due to healer is working on the energy level or bioplasmics of the body not on the physical body.

Basically there are three major sources of prana : Solar Prana .Air Prana ,and Ground Prana .

Solar Prana : is prana from sunlight.It can be obtained by sunbathing or exposure to sunlight for about five to ten minutes and drinking the water that has been exposed to sunlight

Air Prana :- prana contained in the air is called air prana. Air  prana is absorbed by the lungs by breathing and is also absorbed directly by the energy centers of the bioplasmic body.

Ground prana :- prana contained in the ground is called ground prana this is absorbed through the soles of the feet  unconsciously.

Two basic law of Pranic Healing

1. Law of self repairing :- Body is capable of healing itself at a certain rate
2. Law of life energy:-For life to exist , the body must have prana or life energy.The healing process can be accelerated by increasing the life energy on the affected part and on the entire body.

Basics Principles in Pranic Healing

1. Cleansing:-  It is the process of cleaning the diseased energy from the affected chakra and diseased organ of the body Sweeping process.
2. Energizing :- After cleaning by sweeping the next step is energizing them with sufficient prana of life energy that healing is accomplished.

Basic techniques in pranic healing

• Sensitizing the hands
• scanning the  inner aura
• Sweeping dirty energy.
• Energizing with prana
• Stabilize the projected prana
• Releasing the projected pranic energy.

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Cost accounting Record Rules are the prescribed details by the  Central Government w.r.t utilization of material , labour or other items of cost in respect of a class of companies notified under the provisions of Companies Ac,1956.

The cost accounting record rules are aimed at induced the companies to have control over their operations and cost with a view to achieve optimum utilization of resources in the economy.

These Rules inculcate a system so that such records are maintained under generally accepted cost accounting principles in the systematic way and on uniform basis among the various companies of the industries.This ensure the availability of uniform and authentic database with industries, which can be helpful to the Government in taking appropriate appropriate decision, whenever required.

Cost Accounting Record Rules are applicable only to selected companies incorporated under the Companies Act, 1956  ( whether private or public ) and not to the other forms of business such as partnership,proprietary etc.

Small Scale units are generally exempted from the requirements of cost accounting records rules even if they belong to the industries or class of companies for which , the maintenance of cost accounting have been prescribed.

The Cost Accounting Records Rules merely refers to be maintenance of cost records.It does not mean that there has to be a cost audit also.Cost Audit Order is separately issued after the initial notification of cost accounting records rules.These cost audit orders are issued on the selected companies only.

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