LETTER OF TRANSMITTAL

In this report, we have tried to provide analysis of financial statements of Atlas Batteries Ltd.
We hope we have covered all that was required for the report.
If there be any clarification demanded, we would appreciate a call from you to our group
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI2
ACKNOWLEDGEMENT
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI3
VISION STATEMENT AND MISSION STATEMENT OF
ATLAS BATTERIES LTD.
VISION STATEMENT
and
international
market.
MISSION STATEMENT
To achieve market leadership
through
technological
customers
welfare
and
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI4
COMPANY PROFILE
customer satisfaction
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI5
COMPANYS PRODUCTS

Automotive Batteries

Motorcycle Batteries
AUTOMOTIVE BATTERIES
There are three types of batteries produced by Atlas Batteries Ltd.

Light Batteries

Medium Batteries

Heavy Batteries
CUSTOMERS FOR MEDIUM AND HEAVY BATTERIES
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI6
CUSTOMERS FOR LIGHT BATTERIES
7. D.S. Motors
8. N.J. Auto Industries (Pvt.) Ltd.
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI7
RATIO ANALYSIS
Financial ratios are the analysts microscope; they allow them to get a better view of the firms

Planning

Evaluation of management
External uses

Credit granting

Performance monitoring

Investment decisions

Making of policies
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI8
CATEGORIES OF FINANCIAL RATIOS
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI9
0
0.51
1.52
2006
2007
Current Ratio
Current Ratio
LIQUIDITY RATIOS
Current Ratio:
Current Ratio shows a firms ability to meet current liabilities with its current assets.
Formula:
^= l ^=

2006
^= l u
^!"!^!!!!
. . ^= l u 8
2007
^= l ) ) !^

. . ^= l 8
Analysis:
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI10
0246
2006
2007
Quick Ratio
Quick Ratio
Acid Test Ratio:
Acid Test Ratio or Quick Ratio shows a firms ability to meet current liabilities with its most
liquid assets.
Formula:
'` .O z 444O ++4O+ 4O44+ ^

2006
C =+ l A ^==^ ==

. . C= + l ) c I 8 1 h
2007
C= + l ) 1 1!^u !! !! u TT o !!!
uIuIu
. . C= + l u c 8 !
Analysis:
.
^==
h h4 1 +1 J 4 h hh+
1209033000
218012000
^==
5.55 h h 4 1 + 1 J 4 hhh+ h
^==
h h 4 1 + 1 J 4 hhh+
uu AA
^==
2006
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI11
5
5.2
5.4
5.6
2006
2007
Inventory Turnover
Ratio
ASSET MANAGEMENT RATIO
Inventory Turnover Ratio:
Formula:
2007
^==
h h 4 1 + 1 J 4 hhh+
1585648000
306171000
^==
5.2 h h 4 1 + 1 J 4 hhh+ h
Analysis:
uuuzlu=I= h 4586400 0
365000
1209033000 365
u uuzlu=I = h 13.96 Iu A
u uuzlu=I = h cuu
365 uu A
2006
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI12
10
11
12
13
14
15
2006
2007
DSO
DSO
Days Sales Outstanding:
Formula:
2007
u uuzlu=I = h 5183400 0 26000
1585648000 365
u uuzlu=I = h 11.9
Analysis:
1209033000 1h1JT ^TTJ hh41+1J4 h
239712000
5.04 1h1JT ^TTJ hh41+1J4 h
1h1JT ^TTJ hh41+1J4 hh JT u
1h1JT ^TTJ
2006
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI13
5
5.02
5.04
5.06
5.08
5.1
5.12
2006
2007
Fixed Asset Turnover
Fixed Asset
Turnover
Fixed Asset Turnover:
Formula:
2007
1585648000 1h1JT ^TTJ hh41+1J4 h
310995000
5.1 1h1JT ^TTJ hh41+1J4 h
Analysis:
h+h ^TTJ u
1209033000 h h 4 1 + 1 J 4 h
562887000
h+h ^TTJ u
2.15 h h 4 1 + 1 J 4 h
h+h ^TTJ u
h h 4 1 + 1 J 4 hh JT u
h+h ^TTJ u
2006
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI14
2.06
2.08
2.1
2.12
2.14
2.16
2006
2007
Total Asset Turnover
Total Asset
Turnover
Total Asset Turnover:
Formula:
2007
h+h ^TTJ u
1585648000 h h 4 1 + 1 J 4 h
755242000
h+h ^TTJ u
2.1 h h 4 1 + 1 J 4 h
Analysis:
208020000 5051700 c 8 0
40000000
562887000
53% c
c u cu h h
h+h ^TTJT u
2006
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI15
0.52
0.525
0.53
0.535
0.54
0.545
0.55
0.555
2006
2007
Debt Ratio
Debt Ratio
DEBT MANAGEMENT RATIO
Debt Ratio:
Formula:
2007
6288100 c 0 356363000
755242000
55% c
Analysis:
hh1JT 11J4JT h41JT hhh+
84101000
17877000
4.70 hh1JT 11J4JT h41JT hhh+ h
hh1JT 11J4JT h41JT hhh+ h
.
^=u -ou
2006
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI16
01234567
2006
2007
TIE Ratio
TIE Ratio
Times Interest Earned Ratio:
Formula:
2007
hh1JT 11J4JT h41JT hhh+
144299000
22042000
6.5 hh1JT 11J4JT h41JT hhh+ h
Analysis:
. h84101000
25250000 0 0
17877000 56000000 0
1.48 . h
. . . h
!! ! ! = u
. = A
^=u -ou 8. = u
. =8 +u . = ! !
2006
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI17
02468
10
2006
2007
EBITDA Ratio
EBITDA Ratio
EBITDA Ratio:
Formula:
2007
144299000 . h
33896000 0 0
22042000 0 0
8.1 . h
Analysis:
In 2006 EBITDA ratio was 1.48 times. In 2007 EBITDA increased drastically to 8.1 times, the
reason for this is the repayment of principal leaving zero long term debts in 2007.
41323000 .. o = + + +
1209033000
3.42% .. o = + + +
.. o = ) ^= + + + `
+ ucu - = c ,uI
uu A
2006
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI18
0
0.1
0.2
0.3
0.4
0.5
0.6
2006
2007
Profit Margin
Profit Margin
PROFITABILITY RATIO
Profit Margin:
Formula:
2007
87510000 .. o = + + +
1585648000
5.5 .. o = + + +
Analysis:
84101000 .
562887000
14.94% .
. .h
h+h ^TTJT u
2006
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI19
0
0.05
0.1
0.15
0.2
0.25
2006
2007
BEP
BEP
Basic Earning Power:
Formula:
2007
144299000 .
755242000
19.1% .
Analysis:
41323000 z+
562887000
7.34% z+
z+ ) ^=
h+h ^TTJT u
2006
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI20
0
0.2
0.4
0.6
0.8
2006
2007
ROA
ROA
Return on Asset:
Formula:
2007
87510000 z+
755242000
11.5% z+
Analysis:
l==
l
za ) ^ = ! +
- =a l !! 0
2006
za
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI21
0
0.05
0.1
0.15
0.2
0.25
0.3
2006
2007
ROE
ROE
Return on Equity:
Formula:
15.62% za
2007
87510000 za
339858900
26% za
Analysis:
73.9 . a= =
7.8
9.5 . a= =
. a= = . +
. o
! 4" = = .
2006
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI22
02468
10
12
14
2006
2007
Price Earning RatioPrice Earning
Ratio
MARKET VALUE RATIO
Price Earning Ratio:
Formula:
2007
167.8 . a= =
14.4
11.7 . a= =
Analysis:
73.9 . -uo )u h h h
29.93
2.46 . -uo )u h h h
. -uo )u . . h h h h
o A
-u o )u . o
2006
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI23
0123456
2006
2007
Price per Cash FlowPrice per Cash
Flow
Price Cash Flow Ratio:
Formula:
2007
167.8 . -uo )u h h h
34.8
4.82 . -uo )u h h h
Analysis:
73.9 . c
102.76
0.72 . c
. c . . +
o A
! ~ 4" Au .
2006
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI24
0
0.51
1.52
2006
2007
Market per Book RatioMarket per
Book Ratio
Market per Book Ratio:
Formula:
2007
167.8 . c
114.8
1.46 . c
Analysis:

+)) + h

f!


ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI25
ADDITIONAL FUNDS NEEDED
Company is working on the capacity of 76% and its sales are having growth rate of 31%.
Formula for AFN:
f

1 f. z A
Where
**o1
440235 +)) m h
1585648 376615 156154 O
1585648 376615 0.05 O 5 2077199 1 U O
0.417 1000 m
868000 +))h
For Fixed Assets
@ 100% uu -l= h h
uu A
- muI
@ 100% 1585648 uu
0.76
@ 100% 2086379 uu
Analysis:
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI26
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI27
ANALYSIS OF FINANCIAL REPORT
BAHRIA UNIVERSITY KARACHI28
FM Report Ratio analysis
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