International Concept AG participated in the three weeks of erp sand table simulation Training, benefited. As the teacher said, we are the best companies do not run, but it is harvesting the largest and the most learned of knowledge is also a company. In three weeks, I have learned a lot not learn in the books of knowledge, but also so that I can put the knowledge learned over the years to really get into society of pre-exercise. The Training Let me understand a company's general operating procedures, how each of the close links between, but also probably know that as an accounting staff should be where to start doing their own work.
Studied prior to the accounting, in this simulation of practical training in all dug up were using. Accounting, involving financial analysis and forecasting, and the bank's loan application, and even with other companies, private money transactions, is a highly interactive position. The wrong by the experience of the original impact of the accounting in charge of that insignificant, but the Assistant Chief Financial Officer only. As long as the mind can be an accounting. As the game progressed, it gradually became aware of the accounting is very challenging and interesting work. On the financial side, I have the budget to help finance director to control the outflow of funds. And the registration of cash income and expenditure, to raise liquidity. Market sector effects on the calculation of advertising, advertising cost of delivery, market surveys, I also involved, and even spying operations of other companies to understand the process of advertising for delivery.
In this simulation, I learned a lot. I think in the whole operating process, the team spirit is very important, so it is more reflect the meaning of teamwork. In the case of different opinions in the case was divided, each director of an analysis of how rapid decision-making, and to persuade others. Or provide data report, acceptance of others opinions and suggestions. This is a difficult, how to stick to live in their own positions without mistakes, it is very need for a decision maker to mediate. Throughout the operations our group gave me the most profound lesson is that the lack of a competent ceo really makes us a great one around the circle. Reality can not do without teamwork, there is no spirit of cooperation of individuals would have been abandoned by today's society. Among them, I also deeply impressed by the role of personality for the job impact. I suddenly realized that, in fact, I liked, and cooperate with others, to conduct transactions between the two groups. That is, foreign exchange and negotiation.
Harvest is realized that the manufacturing-oriented enterprises operating processes. Marketing, production, procurement, finance, interlocking, closely related to the. Any step can not go wrong. Familiar with the process of each module. Should always calculate the cash flow. On the financial side, and finally is no longer literally feel the short-term loans, accounts payable, accounts period, discounted, and so the. I, as an accounting charge of doing the cash flow register, fill reports and assist the Chief Financial Officer for financial accounting of the I, in the marketing of the product development, marketing, advertising delivery, ISO 9000 and 14000 certification system also has a general understanding, and even the production of our company, the interface can give some common sense advice and help. In fact, very often, our members are helping each other, along with considering issues and solving problems together.
The data from the table, you can clearly see the difference between the company's performance and operation of the hardships. Our company from the previous decision errors into the subsequent awakening, followed by the joint efforts of the team co-operation, and finally to make our company into the black of the. Net income from the first year of the -22 to the sixth year of 38, the owner benefits from the previous low from 51 back up to sixth year. These are all our efforts, but also a manifestation of the development potential of our company. Of these, we also learned a lot of other people have never experienced the situation, others can not understand the pain and sense of accomplishment.
The first year, the company's high-level consensus through the decision to invest in a semi-automatic production lines. And R & D p2, P3,, open up the domestic market, the Asian market, the advertising medium to obtain the necessary orders, in the order will be the beginning of flu season's big surprise, because some companies invest in advertising were as high as 17m, and this companies have only a few of 8m, lost the battle for market leadership position, because relatively few orders, so the first year we just break even on the development side also applied for a 40M to the bank's short-term loans. Because we blindly development, there is no market orientation, has enabled us to become very high expenses.
The following year, the beginning of time, the Company believes the cash and there is no need to conduct long-term loans (which to some extent led to the subsequent series of negative reaction), is just another loan of 20M of the short-term loans, because we do not have clear rules of the game considered only short-term loans interest loan cheaper than long. So in the end, when the liquidity re-apply when the only 60M long loan, then you have short-term loans due for the third year to raise funds. In the second year the company also decided to invest in an automatic production line. As a result of the first year of ordering our experience, the company decided to increase spending for ads P1 (later proved to be wrong), increase the production of P1. The result is that orders will be advertising costs of up to 12m, net of advertising costs the net profit of only 11M of the Run, which may cause a large backlog of P1, funds have been stuck in, plus give up long-term loans, the company plunged into crisis, desperation, can only be discounted to maintain cash flow. And, in the second year, the biggest mistake is a one-off has developed two flexible production line, but also ceo own decisions, we are aware of the development upon completion of the (no doubt this decision is to let us out to buy more than one multi-8M flexible production line to serve as a fully automated production line). This year we started the company is facing the risk of insolvency of the. As the saying goes; Innovation is fundamental to development. Both markets and corporate governance are themselves in the changing times, managers need to be innovative, based on the objective circumstances to make corresponding adjustments to changes in a timely manner. Over the next two years, we have to do all we can to consider thoroughly, all the companies may change the status quo have tried. Fortunately Later, after working together, and finally the company through bankruptcy difficulties.
The third year, we do not support the owner's equity loan. In order to reduce the cost of expenses, the company decided to abandon the development of P3, fought in the p4 fewer people pay attention to the market. In the order at the meeting, we strive to realize a minimum of advertising investment to secure the most satisfactory order principles and strictly enforced, the result as we had hoped, the backlog of transactions between groups P1, all sold, P4 also has orders. However, the decision-making mistakes in the previous cash flow the company has become our biggest problem, other companies to consider is the account level uneven, and our company is to consider how to raise sufficient liquidity. Then forced to discount to maintain cash flow, largely limiting the company's development and growth.
The fourth year, the company abandoned the production of P1 full P2, P4, has become the market leader in more than P4, but the shortage of funds allows the company can not keep up with market demand growth. We have also started the fourth year of loan-sharking, the end of a long-term loans to 20m, usury 20m repayment period has been pressing the company to raise funds in order to credit or repayment.
The fifth year, due to tremendous financial pressure, the company agreed to offer full a fight, got 7 orders, coupled with last year's inventory, the company that year produced a huge pressure, but fortunately we produce favorable conditions, but also help other manufactured products, in cooperation with other companies, we have completed the production task, but also to make our sales break 100M. Also half usury, but also seek to borrow a 40M long loan. We have ample liquidity into the sixth year.
The sixth year, the company continues to adhere to the principle of order and rational organization of production. To continue to the fifth strategy, inputs P2 and P4 market. In the end, we have ample liquidity, net profit rose to 38, and owner's equity has also returned to the initial years, and for the future development potential also bought a semi-automatic production line has also developed a P3 qualification of products and ISO14000 certification, we have the ability of market share, the more powerful. On continuing operations, we are the company's potential is great, is in receipt of return period.
In six years, since before the rules of the game are not familiar with, leading to our long-term credit line is not enough, our company are basically relying on the capital flow to maintain the discount, but in fact discounted interest and usury interest rates similar to a rough estimate, we company discount, and interest arising from loan sharks up to 24m, the resulting opportunity cost is even more difficult to estimate the.
As accountants, in our company, our account over the six years, only one year prend awry, resulting in uneven current account, the remaining five years, we report is very timely offer. In the accounts, I am still very satisfied with their work. Although the book has several years of our company is not very impressive, but we always uphold the professional ethics of accountants, from the normal channels to find liquidity to continue production. Until the last of our earnings. This is because of the tireless efforts of our team members, because we have not given up the company. This is what I learned in this simulation: the persistence. As long as not the end, will not give up. But also to the full face. Pay eventually return, our final report also become very value.
After six years of operation, I feel that every one enterprise's competition is very fierce. Shopping malls there are no permanent friends nor eternal enemies. Is needed is co-operation is teamwork. Also need to look at the overall situation, a cool head. Also need to planned at every step. We in the international concept of companies from bankruptcy before, went sixth year of profitability, it is these factors influence. Strength of our team, our cooperation is key to our success. Ultimately our firm to set up the market. Finally these days worthy of our efforts.
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