Reliance FM

INSTITUTE OF MANAGEMENT SCIENCES, B.Z.U.
, MULTAN
ANALYSIS REPORT ON FINAL ACCOUNTS OF

M/S RELIANCE WEAVING MILLS LIMITED;
SUBMITTED TO:
MS. NAUSHEEN SARWAT,
HONOURABLE TEARCHER,
FINANCIAL MANAGEMENT
INSTITUTE OF MANAGEMENT SCIENCES,
BAHAUDDIN ZIKRIYA UNIVERSITY, MULTAN
SUBMITTED BY
HAROON UR RASHID (ME-03-02)
RELIANCE WEAVING MILLS LIMITED
TABLE OF CONTENTS
LIQUIDITY RATIOS:.......................................................................................9
ACTIVITY RATIOS........................................................................................10
DEBT RATIOS................................................................................................11
PROFITABILITY RATIOS.............................................................................12
Annexure –I…….. Statement of cash Flows
Analysis of final accounts as of 30.09.2001 &

30.09.2002
I.M.S., Baha uddin Zikriya University Multan
Page#2/22
THE COMPAMY
Famous FATIMA GROUP.FATIMA GROUP OF

INDUSTRIES established M/s Reliance weaving Mills
Limited as a public limited company on 07.04.1990. The
company was awarded “Certificate of Commencement of
Business” on 14.05.1990. Presently the company has a
paid up capital of Rs.205.406 millions against an
authorised capital of Rs.400.000 millions. The company
is listed at Karachi and Lahore Stock exchanges and also
have been induced into central depository company
(C.D.C.) The Company has following directors;
1. Mr. Fawad Ahmed Sheikh Chairman,

2. Mr. Fazal Ahmed Sheikh, Chief Executive
Officer,
3. Mr. Faisal ahmed sheikh, Director,
4. Mrs. Ambreen Fawad Director,
5. Mrs. Fatima Fazal Director,
6. Mrs. Fadia Kashif Director,
7. Syed Hussain Aqa Naqvi Director (N.I.T.
Nominee),
Their registered office is situated at 2nd flour trust plaza,

L.M.Q. Road, Multan.
THE PROJECT
Their export oriented project consists of
• A textile spinning unit, with installed capacity of

14400 spindles
• Weaving unit No.1 with installed capacity of 116
looms and
• Weaving unit No,2 with installed capacity of 116
looms

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The spinning unit of the company is located at
Mukhtarabad, Rawat, Distt. Rawalpindi. The unit is in
commercial production since 10.10.1999. with 14400
spindles and a very good combination of European and
Japanese machinery with allied accessories. It is
producing high quality yarn for in house consumption and
for export markets. The installed capacity, after
conversion into 20’s count, can approximately produce
4.849 million kilo-grams per annum. The spinning unit is
built over a piece of land admeasuring 36 acres.
The company is increasing their plant capacity to 19690

spindles to achieve “Economies of Scale” and make the
project more viable.
The weaving units are situated at Fazalpur , Khanewal

Road, Multan.
Weaving unit # 1 is in commercial production since

01.05.1993, with 96 Tsudakoma brand air jet looms
imported from Japan along with modern auxiliary
machinery to produce high quality cloth for export
markets. Further 20 looms of same brand were installed in
1999 coupled with yarn doubling and twisting machines
to produce value added fabrics. The unit has an installed
production capacity of approximately 16.085 million
meters per annum. The unit # 1 is also installed with a
power plant of 2.5MW utilizing which the company is
saving power costs and production losses.
Weaving unit # 2: During the financial year ending

30.09.2001, the company implemented an expansion
project for its weaving unit with a cost of about
Rs.500.000 millions, comprising of 108 Tsudakoma air jet
looms of Japanese origin along with modern auxiliary
machinery. The project started its commercial production
on 01.10.2001. The installed production capacity of the
unit is approximately 21.700 million meters per annum.
Another 48 air jet looms expansion project is in advance

30.09.2002
Page#4/22
stages of implementation with will add to the installed
production capacity by about 9.00 million meters per
annum.
All the units of the company are ISO- 9002
In short the company is flourishing and expanding day

by day steadily. It is presently being rated as
Pakistan’s 3rd largest capacity holder for weaving. The
progressiveness of the company is also reflected in
their profit capitalization and dividend policies. For
the last two years they have announced cash dividends
of 7.5%. In the year 2000 they announced a cash
dividend of 52.50%, issued bonus shares of 20% and
allotted right share issue of 25%.
As on 25.11.2003 their share had a closing market

quotation of Rs13.20 per share. It is worth mentioning
that about 7% of their shares are held by banks and
financial institutions.
BALANCE SHEET AS AT SEPTEMBER

30,2001/2002.
ASSTE
S 2002 2001
FIXED CAPITAL EXPENDITURE
Operating fixed assets 963,961,057 537,836,6

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Capital work-in- progress 40,260,082 475,214,6
1,004,221,139 1,013,051,3
LONG TERM DEPOSITS 4,027,780 3,996,5
CURRENT ASSETS
Stores spares and loose tools 38,527,545 36,333,8
Stock in trade 249,798,561 185,452,9
Trade debtors 73,023,993 304,471,8
Loans and advances 42,257,966 43,031,4
Deposits and prepayments 18,932,478 8,320,2
Other receivables 35,466,363 36,343,5
Cash and bank balances 36,897,243 10,514,2

494,904,149 624,468,0
GRAND TOTAL 1,503,153,068 1,641,515,9

30.09.2002
Page#6/22
SHARE HOLDER' S EQUITY AND LIABILITIES

AMOUNT IN RUPEES
SHARE CAPITAL AND RESERVES 2002 2001
Authorised Capital
40,000,000 ordinary shares of Rs10/=
each 400,000,000 400,000,0
Issued, subscribed and paid up capital 205,406,250 164,325,0

Capital reserve-share premium 41,081,250 41,081,2
General reserve 200,000,000 100,000,0
Un-appropriated profit 22,660,143 83,894,9
469,147,643 389,301,1
REDEEMABLE CAPITAL 150,000,000
LONG TERM LOANS 352,395,341 472,654,3
LAIBILITIES AGAINST ASSETS SUBJECT 25,026,591 34,838,0

TO FINANCE LEASE
CURRENT LIABILITIES
Short term bank borrowings 252,029,514 504,643,3
Current portion of long term liabilities 91,085,082 86,055,1
Creditors, accrued and other liabilities 124,046,467 108,423,3
Provision for taxation 21,017,438 27,333,5
Dividends 18,404,992 18,266,8
506,583,493 744,722,3
CONTIGENCIES AND COMMITMENTS
GRAND TOTAL 1,503,153,068 1,641,515,9

30.09.2002
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PROFIT AND LOSS ACCOUNT FOR THE

YEAR ENDED
SEPTEMBER30,2001/2002
AMOUNT IN RUPEES
2002 2001
Sales 2,032,159,094 1,252,560,023
Cost of goods sold 1,721,195,792 1,057,331,258
Gross Profit 310,963,302 195,228,765
Operating expenses
Administrative 25,469,915 27,366,056
Selling 64,920,432 33,830,380
90,390,347 61,196,436
Operating profit 220,572,955 134,032,329
Other charges
Financial 134,852,785 96,833,133
Worker's profit participation fund 4,785,755 1,910,077
Others 5,746,292
145,384,832 98,743,210
Profit before taxation 75,188,123 35,289,119
Taxation 21,017,438 15,566,803
Profit for the year after tax 54,170,685 19,722,316
Un appropriated profit brought forward 83,894,927 76,496,986
Profit available for appropriation 138,065,612 96,219,302
Appropriations:
Proposed dividend @7.5% 15,405,469 12,324,375
Transferred to "General Reserve" 100,000,000
115,405,469 12,324,375
Un-appropriated profit carried
forward 22,660,143 83,894,927
Earning per share* 2.82 2.67

30.09.2002
Page#8/22
(*weighted average of nmber of
shares outstanding during the year) 19,240,496 7,393,796
Cash flow statement is annexed as annexure-I
RATIO ANALYSIS:
Usually ration analysis are conducted on following four

major categories:
1. Liquidity ratio analyses

2. Activity
3. Debt
4. Profitability
A brief description of each of the ratios usually
considered in each category is as under:
LIQUIDITY RATIOS:
Liquidity is a firm’s ability to satisfy it short term

obligations as they become due.
a. NET WORKING CAPITAL:
It is given by the following formula;

CURRENT ASSETS- CURRENT
LIABILITIES
It is a common measure of firm’s over all liquidity.
b. CURRENT RATIO:

CURRENT ASSETS
CURRENT LIABILITIES
It is a useful determinant of a firms ability to meet its

short term financial obligations. At current ratio value
“1”, firms “Net Working Capital” is always zero.

30.09.2002
Page#9/22
c. QUICK (ACID TEST ) RATIO:
CURRENT ASSETS-INVENTORY
CURRENT LIABILITIES
The inventory is usually considered comparatively less
liquid due to the reason that it is usually sold on credit the
acid test ratio is a better measure of a firm’s liquidity.
Usually a quick ratio of above 1.0 is considered very well.
ACTIVITY RATIOS
Activity ratios measure the speed with which accounts are

converted into sales or cash.
a. INVENTORY TURN OVER:
COST OF GOODS SOLD

INVENTORY
It shows that how many times in a year a firm sells its

average inventory held to make profit. It can easily be
converted in AVERAGE AGE OF INVENTORY by
dividing it into 360.
b. AVERAGE COLLECTION PERIOD

(DAYS):
ACCOUNTS RECEIVABLE
AVERAGE SALE PER DAY
It is meaningful in firm’s credit terms and shows that for

how much time (number of days) a firm’s cash remains
stuck up in accounts receivable after making credit sales.

30.09.2002
Page#10/22
c. AVERAGE PAYMENT PERIOD (DAYS):
It shows that on the average, for how much time, a firm

avails credit on its purchases. Prospective lenders and
suppliers are especially interested in this figure.
d. TOTAL ASSET TURN OVER:

SALES
TOTAL ASSETS
Generally a high Total Asset Turnover Ratio shows that

the firms assets are efficiently being utilized. It is for the
greatest interest for the prospective lenders and
management as it indicates whether the firm’s operations
have been financially efficient or not.
DEBT RATIOS
The debt position of a firm indicates the amount of other

people’s money being used in attempt to generate profits
a. DEBT RATIO:
TOTAL LIABILITIES
TOTAL ASSTES
It measures the proportion of total assets financed by the
firm’s creditors. Higher the ratio more financial leverage
the firm possesses.
b. TIMES INTEREST EARNED RATIO
It is also called “Interest Coverage Ratio” and is given by

the following formula;
EARNINGS BEFORE INTEREST & TAXES

30.09.2002
Page#11/22
INTEREST PAID
It measures the firm’s ability to make contractual interest
payments. As a rule, a value of at least 3.0 to 5.0 is
considered good.
c. FIXED PAYMENT COVERAGE RATIO:
EBIT + LEASE PAYMENTS

INTT+LEASE PAYMENT+ (PRINC. REPAYMENTS +PREFERRED
STOCK DIVIDEND)X[1/(1-T)]
Here “T” is the corporate tax rate applicable to the firm in
decimals. This ratio measures a firm’s ability to meet all
fixed payment obligations.
PROFITABILITY RATIOS
These ratios measure firms efficiency in terms of earning

profit by utilizing resources.
a. GROSS PROFIT MARGIN

It is given by the following formula in percentage;
GROSS PROFITS X100
SALES
It measures the percentage of each sales rupee remaining

after firm has paid for its costs.
b. OPERATING PROFIT MARGIN:

OPERATING PROFITS X 100

SALES

after firm has paid for its all costs and expenses other than
interest and taxes.

30.09.2002
Page#12/22
c. NET PROFIT MARGIN
NET PROFITS AFTER TAXES x 100
SALES

after firm has paid for its all costs and expenses including
interest and taxes.
d. RETURN ON TOTAL ASSTES (ROA):

NET PROFITS AFTER TAXES%
TOTAL ASSETS
It measures the firm’s over all effectiveness in generating

profits utilizing its over all assets
e. RETURN ON EQUITY (ROE):

NET PROFITS AFTER TAXES X 100
STOCK HOLDER'S EQUITY
It measures the return earned on owner’s investment in

the firm.
f. EARNING PER SHARE (EPS):

EARING AVAILABLE FOR COMMON STOCK HOLDERS
NO. OF SHARES OF COMMON STOCKS
It represents the amount earned on each share during a

particular accounting period (it is not the declared
dividend). It is of particular interest for stock investors.
g. PRICE EARNING (P/E) RATIO:

MARKET PRICE PER SHARE OF COMMON STOCK
EARNING PER SHARE
It measures the amount investors are willing to pay (as

price of a share) for each rupee of the firm’s earnings.
30.09.2002
Page#13/22
Higher the P/E ratio, greater is the investors confidence in
the firm.
Now we shall apply all the above ratios to analyse the

final accounts of M/s Reliance Weaving Mills Limited.
RATIO ANALYSIS OF M/S RELIANCE

WEAVING MILLS LTD.:
LIQUIDITY YEAR 2002 YEAR 2001

RATIO FIGURES RESULTS FIGURES RESULTS
NET WORKING (11,679,344
=494904149- =624468076-
CAPITAL ) (120,254,255)
506583493 744722331
CURRENT =494904149/ 0.98 =624468076/ 0.84
RATIO 506583493 744722331
QUICK RATIO =(494904149- 0.48 =(624468076- 0.59

(ACID TEST ) 249798561) / 185452931)/
506583493 744722331
ACTIVITY YEAR 2002 YEAR 2001

RATIO FIGURES RESULTS FIGURES RESULTS
INVENTORY =1721195792/ 249798561 6.89 =1057331258/ 5.70
TURN OVER 185452931
AVERAGE =73023993/ (2032159094 /360) 13 =304471808/ 88

COLLECTION (1252560023/360)
PERIOD (DAYS)
AVERAGE =41426880/ ((1721195792*0.7)/ 12 =27526544/ 13
PAYMENT PERIOD 360) ((1057331258*0.7) /
(DAYS) ASSUMING PURCHASES @70% OF 360)
CGS
TOTAL ASSET =2032159094/ 1503153068 1.35 =1252560023 / 0.76
TURN OVER 1641515991
DEBT
DEBT RATIO =(1503153068-469147643)/ 0.69 =(1641515991- 0.76
1503153068 389301177) /
1641515991
TIMES INTEREST =(75188123+ 131246133)/ 1.57 =(35289119+ 1.37
EARNED RATIO 131246133 94176826)/
94176826
FIXED PAYMENT =(75188123+ 131246133+ =(35289119+

30.09.2002
Page#14/22
COVERAGE RATIO* 8296318)/ 0.80 94176826 +1865595)/ 0.85
(131246133+8296318+128557608 (94176826+ 1865595+
) 58931910)
PROFITABILIT
Y
GROSS PROFIT =310963302/ 2032159094 15.30% =195228765/ 15.59%
MARGIN 1252560023
OPERATING =220572955/ 2032159094 10.85% =134032329/ 10.70%

PROFIT MARGIN 1252560023
NET PROFIT =54170685/ 2032159094 2.67% =19722316/ 1.57%

MARGIN 1252560023
RETURN ON =54170685/ 1503153068 3.60% =19722316/ 1.20%
TOTAL ASSTES 1641515991
(ROA)
RETURN ON =54170685/ 469147643 11.55% =19722316/ 5.07%
EQUITY (ROE) 389301177
EARNING PER =54170685/ 20540625 2.64 =19722316/ 16432500 1.20

SHARE (EPS)**
** here we are considering only number of shares outstanding at the close of the period
PRICE EARNING =13.20/2.64 5.00 market quotation not available
(P/E) RATIO.
STATEMENT OF SOURCES AND USES

OF CASH FOR THE YEAR ENDED ON
30.09.2002.
ACCOUNTS 2002 2001 CHANGE CLASSIFICATION

ASSTES Sources Uses
LONG TERM DEPOSITS 4,027,780 3,996,550 31,230 31,230
CURRENT ASSETS
Stores spares & loose tools 38,527,545 36,333,854 2,193,691 2,193,691
185,452,93
Stock in trade 249,798,561 1 64,345,630 64,345,630
304,471,80
Trade debtors 73,023,993 8 (231,447,815) 231,447,815
Loans and advances 42,257,966 43,031,404 (773,438) 773,438
Deposits and prepayments 18,932,478 8,320,287 10,612,191 10,612,191
Other receivables 35,466,363 36,343,584 (877,221) 877,221

30.09.2002
Page#15/22
Cash and bank balances 36,897,243 10,514,208 26,383,035 26,383,035
1,352,558,11 823,510,46
Gross fixed assets 2 5 529,047,647 529,047,647
285,673,79
Accumulated Depreciation 388,597,055 5 102,923,260 102,923,260
475,214,69
Capital work in progress 40,260,082 5 (434,954,613) 434,954,613
EQUITY
164,325,00
Paid up capital 205,406,250 0 41,081,250 41,081,250
Capital reserve-share premium 41,081,250 41,081,250 0
100,000,00
General reserve 200,000,000 0 100,000,000 100,000,000
Un-appropriated profit 22,660,143 83,894,927 (61,234,784) 61,234,784
LONG TERM LIABILITIES
REDEEMABLE CAPITAL 150,000,000 150,000,000 150,000,000
472,654,39
LONG TERM LOANS 352,395,341 6 (120,259,055) 120,259,055
FINANCE LEASE
LIABILITY 25,026,591 34,838,087 (9,811,496) 9,811,496
CURRENT LIABILITIES
504,643,38
Short term bank borrowings 252,029,514 2 (252,613,868) 252,613,868
Current portion of long term
liab. 91,085,082 86,055,167 5,029,915 5,029,915
108,423,39
Creditors, accrued & other liab. 124,046,467 1 15,623,076 15,623,076
Provision for taxation 21,017,438 27,333,505 (6,316,067) 6,316,067
Dividends 18,404,992 18,266,886 138,106 138,106
1,082,848,69
TOTALS: 4 1,082,848,694

30.09.2002
Page#16/22
Vertical and Horizontal Analysis of

Balance Sheet
AMOUNT IN
RUPEES
BALANCE SHEET AS AT SEPTEMBER 30,2001/2002.
ASSTES 2002 Vertical 2001 Vertical Horizonta
Operating fixed assets 963,961,057 64.13% 537,836,670 32.76% 79.23%
Capital work-in- progress 40,260,082 2.68% 475,214,695 28.95% -91.53%
1,004,221,139 66.81% 1,013,051,365 61.71% -0.87%
LONG TERM DEPOSITS 4,027,780 0.27% 3,996,550 0.24% 0.78%
CURRENT ASSETS
Stores spares and loose tools 38,527,545 2.56% 36,333,854 2.21% 6.04%
Stock in trade 249,798,561 16.62% 185,452,931 11.30% 34.70%
Trade debtors 73,023,993 4.86% 304,471,808 18.55% -76.02%
Loans and advances 42,257,966 2.81% 43,031,404 2.62% -1.80%
Deposits and prepayments 18,932,478 1.26% 8,320,287 0.51% 127.55%
Other receivables 35,466,363 2.36% 36,343,584 2.21% -2.41%
Cash and bank balances 36,897,243 2.45% 10,514,208 0.64% 250.93%
Total current assets 494,904,149 32.92% 624,468,076 38.04% -20.75%
100.00
GRAND TOTAL 1,503,153,068 100.00% 1,641,515,991 % -8.43%
SHARE HOLDER' S EQUITY AND LIABILITIES
Paid up capital 205,406,250 13.67% 164,325,000 10.01% 25.00%

Capital reserve-share premium 41,081,250 2.73% 41,081,250 2.50% 0.00%
General reserve 200,000,000 13.31% 100,000,000 6.09% 100.00%
Un-appropriated profit 22,660,143 1.51% 83,894,927 5.11% -72.99%
469,147,643 31.21% 389,301,177 23.72% 20.51%
REDEEMABLE CAPITAL 150,000,000 9.98% 0.00%
LONG TERM LOANS 352,395,341 23.44% 472,654,396 28.79% -25.44%

30.09.2002
Page#17/22
LAIBILITIES AGAINST
ASSETS SUBJECT TO
FINANCE LEASE 25,026,591 1.66% 34,838,087 2.12% -28.16%
c/o next page
CURRENT LIABILITIES 2002 vertical 2001 vertical Horizonta

Short term bank borrowings 252,029,514 16.77% 504,643,382 30.74% -50.06%
Current portion of long term
liabilities 91,085,082 6.06% 86,055,167 5.24% 5.84%
Creditors, accrued and other
liabilities 124,046,467 8.25% 108,423,391 6.61% 14.41%
Provision for taxation 21,017,438 1.40% 27,333,505 1.67% -23.11%
Dividends 18,404,992 1.22% 18,266,886 1.11% 0.76%
Total Current Liabilities 506,583,493 33.70% 744,722,331 45.37% -31.98%
100.00
GRAND TOTAL 1,503,153,068 100.00% 1,641,515,991 % -8.43%
Vertical and Horizontal Analysis of

Income Statement
AMOUNT IN RUPEES
2002 vertical 2001 Vertical Horizontal
2,032,159,09 100.00 1,252,560,02 100.00
Sales 4 % 3 % 62.24%
1,721,195,79 1,057,331,25
Cost of goods sold 2 84.70% 8 84.41% 62.79%
Gross
Profit 310,963,302 15.30% 195,228,765 15.59% 59.28%
Operating expenses
Administrative 25,469,915 1.25% 27,366,056 2.18% -6.93%
Selling 64,920,432 3.19% 33,830,380 2.70% 91.90%
90,390,347 4.45% 61,196,436 4.89% 47.71%
Operating profit 220,572,955 10.85% 134,032,329 10.70% 64.57%
Other
charges
Financial 134,852,785 6.64% 96,833,133 7.73% 39.26%
Worker's profit participation fund 4,785,755 0.24% 1,910,077 0.15% 150.55%
Others 5,746,292 0.28% 0.00%
30.09.2002
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145,384,832 7.15% 98,743,210 7.88% 47.24%
Profit before taxation 75,188,123 3.70% 35,289,119 2.82% 113.06%
Taxation 21,017,438 1.03% 15,566,803 1.24% 35.01%
Profit for the year after tax 54,170,685 2.67% 19,722,316 1.57% 174.67%

30.09.2002
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ANSWERS TO ANALYTICAL QUESTIONS
Question No,1
As a long-term creditor would you like to invest in the
company? Why?
Answer:
Yes, in principle I would like to invest/make long term
loan to the company, despite the fact that company fiancé
port-folio has already been loaded with debt quite heavily.
Following vindications backs my decision:
a. Company’s interest coverage ratio is improving.

This indicates that further investment in the
business shall further improve the profitability.
b. Company has a good equity built up, which they
are using effectively in their expansion plans.
c. The financials of the company does not reflect a
business risk.
d. With backing of good reputation Fatima Group and
market response to TFC issue of year 2002, my
decision gets reinforcement.
However, my final decision would depend on negotiations

over terms of loan, amount of loan and collateral.
Question No,I1
As a short term creditor would you like lend the
company? Why?
Answer:
Yes, I would like to lend short term finances to the
company. My decision is due to following facts:
a. Although the company is in liquidity crunch, as
evident from various liquidity ratios, yet over the
time they are improving and on final
implementation of expansion plans, they will be all
right.
b. The risk is fairly mitigated by backing of Fatima
Group.
30.09.2002
Page#20/22
c. The company has fairly improved in cash flow
from operations.
d. Their profitability ratios are also fine.
e. As their weaving unit # 2 has started commercial
production it will improve in efficiency in back
drop of management’s expertise in the field. Hence,
over all operational results and liquidity is also
expected to improve.
Question No,I1I
Would you like to invest in the shares of the company?
Why?
Answer:
Yes, I would like to invest in the shares of the company. I
have framed my opinion due to following reasons:
a. The company is a being managed by famous

Fatima Group.
b. Its shares have a fair market price. (Rs.13.20, as on
25.11.03).
c. The company has a good “Return on equity” (i.e.
11.55%).
d. Very good P/E ratio (i.e. 5.00)
e. EPS is at Rs.2.64
f. Company’s 20,540,625 shares have backing of
reserves and un appropriated profit of
Rs.263,741,393/-; this gives an extra equity of
Rs.13/- per share. As the share is available around
Rs13/- I will prefer to invest in it.
g. The company is expanding and improving in
quality and output quantity to be competitive in
coming post WTO implementation scenario. This
effort on the part of the management also
strengthens the share and makes it attractive to
invest.
30.09.2002
Page#21/22
h. The company has declared 25% right share issue in
year 2000 and 2002. Moreover, a tradition of
declaring high dividends as much as 52% in year
2000 along with bonus shares of 20% ( & right
share as already mentioned) makes the share more
attractive.

30.09.2002
Page#22/22

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INSTITUTE OF MANAGEMENT SCIENCES, B.Z.U.

ANALYSIS REPORT ON FINAL ACCOUNTS OF

Annexure –I…….. Statement of cash Flows

Analysis of final accounts as of 30.09.2001 &

Famous FATIMA GROUP.FATIMA GROUP OF

1. Mr. Fawad Ahmed Sheikh Chairman,

Their registered office is situated at 2nd flour trust plaza,

Their export oriented project consists of

• A textile spinning unit, with installed capacity of

Analysis of final accounts as of 30.09.2001 &

The company is increasing their plant capacity to 19690

The weaving units are situated at Fazalpur , Khanewal

Weaving unit # 1 is in commercial production since

Weaving unit # 2: During the financial year ending

Analysis of final accounts as of 30.09.2001 &

All the units of the company are ISO- 9002

In short the company is flourishing and expanding day

As on 25.11.2003 their share had a closing market

BALANCE SHEET AS AT SEPTEMBER

FIXED CAPITAL EXPENDITURE

Operating fixed assets 963,961,057 537,836,6

Analysis of final accounts as of 30.09.2001 &

LONG TERM DEPOSITS 4,027,780 3,996,5

Stores spares and loose tools 38,527,545 36,333,8

Stock in trade 249,798,561 185,452,9

Trade debtors 73,023,993 304,471,8

Loans and advances 42,257,966 43,031,4

Deposits and prepayments 18,932,478 8,320,2

Other receivables 35,466,363 36,343,5

Cash and bank balances 36,897,243 10,514,2

GRAND TOTAL 1,503,153,068 1,641,515,9

Analysis of final accounts as of 30.09.2001 &

SHARE HOLDER' S EQUITY AND LIABILITIES

Issued, subscribed and paid up capital 205,406,250 164,325,0

REDEEMABLE CAPITAL 150,000,000

LONG TERM LOANS 352,395,341 472,654,3

LAIBILITIES AGAINST ASSETS SUBJECT 25,026,591 34,838,0

CONTIGENCIES AND COMMITMENTS

GRAND TOTAL 1,503,153,068 1,641,515,9

Analysis of final accounts as of 30.09.2001 &

PROFIT AND LOSS ACCOUNT FOR THE

Analysis of final accounts as of 30.09.2001 &

Usually ration analysis are conducted on following four

1. Liquidity ratio analyses

Liquidity is a firm’s ability to satisfy it short term

a. NET WORKING CAPITAL:

It is given by the following formula;

It is given by the following formula;

It is a useful determinant of a firms ability to meet its

Analysis of final accounts as of 30.09.2001 &

It is given by the following formula;

Activity ratios measure the speed with which accounts are

a. INVENTORY TURN OVER:

It is given by the following formula;

COST OF GOODS SOLD

It shows that how many times in a year a firm sells its

b. AVERAGE COLLECTION PERIOD

It is given by the following formula;

It is meaningful in firm’s credit terms and shows that for

Analysis of final accounts as of 30.09.2001 &

It is given by the following formula;

It shows that on the average, for how much time, a firm

d. TOTAL ASSET TURN OVER: