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Financial statement Analysis

PROJECT REPORT
ON
FINANCIAL STATEMENT ANALYSIS

1
Financial statement Analysis

FINANCIAL STATEMNET
ANALYSIS
OF
RAFHAN MAIZE co ltd

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Financial statement Analysis

Group Introduction
NAME Roll#
Zonash Ghaffar 41
Sameen Sajjad 42
Beenish Mukhtar 43
Sara Bashir 31
Qasira Shaukat 23
Maliha Saleem 20

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Financial statement Analysis

ACKNOWLEDGMENT

All acclamation to Allah who has empowered and enabled us to accomplish


the task successfully. First of all we would like to thank our Allah Almighty
who really helps us in every problem during the project. We would like to
express our sincere and humble gratitude to Almighty who’s Blessings, help
and guidance has been a real source of all our achievements in our life.

We would like to admit that we completed this project due to parents who
pray for our success.

We also wish to express our appreciation to our supervisor Sir Shahid Imdad
who helps us a lot and introduce us to new dimensions of knowledge.

Last but not the least our team efforts, support, cooperation and
encouragement showed by each member in the group with each other.

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Financial statement Analysis

DEDICATION

Our PROJECT is dedicated to our beloved Parents, teachers,


brothers, sisters and all of our well wishers.

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Financial statement Analysis

RESEARCH METHODOLOGY
The research techniques that are adopted for the purpose of this
study is

Secondary Data Collection


Internet search

www.rafhanmaize.com

PRFEACE

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Financial statement Analysis

As the world is growing rapidly, the businesses are also moving to become
the huge one. And by that result, more and more people want to become a
master in these businesses. The main purpose in the finance field is to know
how the financial analysis is done. We all know that finance is the blood of
any business and without it no business can run. Financial analysis of a
company is very difficult and the most important task and by doing this I am
able to know the whole financial position and financial structure of the
company.

Simply by looking at how much cash a company has does not provide
enough information. The financial statements need to be analyzed to
measure a company’s performance and to compare it with other firms in the
same industry. The resulting information is intended to be useful to owners,
potential investors, creditors, analysts, and others as the analysis evaluates
the past performance, future potential and financial position of the firm.

This report is an analysis of financial statements of RAFHAN MAIZE. This


report has been prepared with an objective to develop analytical skills
required to interpret the information (explicit as well as implicit) provided by
the financial statements and to measure the company’s performance during
the past few years. The financial statements are analyzed using traditional
evaluation techniques such as horizontal analysis, vertical analysis and trend
analysis. Ratios are an important tool in analyzing the financial statement.
Sincere attempts have been made to make this report error free but if any
errors and omissions are found then we apologize for that.

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Financial statement Analysis

Company Information
Rafhan Maize Products Company Ltd., is located at Faisalabad,
about 1100 kilometers north of Karachi, in Pakistan. The Company
processes thousands of tons of corn every year to produce high
quality food ingredients and industrial products.

Rafhan Maize is the pioneer in producing


diversified type of starches and sweeteners
for multiple applications in more than 50
types of industries.

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Financial statement Analysis

Our Core Values


Define and direct every decision we make and every action we take at
Rafhan Maize.

Integrity
We adhere to a code of conduct, which produces consistently
ethical behavior.
Excellence
We do the right things in a superior manner while striving for
continuous improvement.
Respect

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Financial statement Analysis

We deal with and treat others the way we want to be dealt with
and treated.
Financial Success
We consistently focus on our business to create economic value
today and into the future.

VALUES AND BUSINESS CONDUCT POLICIES


The Company's Core Values and Business Conduct Policies are considered to
be the critical components for our continued success. In order to educate
and reinforce our Company Values and Policies on Business Conduct, a
training program under the name of “PILLARS - VALUES AND BUSINESS
CONDUCT WORKSHOP” has been developed for the employees by Corn
Products International. This program is conducted by senior leaders trained
as trainers for the workshop by international consultants. The management
has conducted 19 such workshops and 663 managers, officers, staff and
workers have been trained in 2008. The program will continue in 2009 to
promote the values and business ethics as a competitive advantage.

BUSINESS REVIEW
Rafhan maize come a long way in producing agriculturally based products
and ingredients and have established ourselves as a progressive trendsetter
and a reliable solution provider to various types of industries. A major key to
success has been constant innovation in the product line, catering services
to different functionalities in the market. We strive to meet and exceed
customer expectations by delivering the best products and services to our
valued customers through value, dependability, technical service, consistent
quality and long term relationships.

FOOD BUSINESS
The food business displayed favorable growth due to sustained performance
of the confectionery industry, which consumed good volumes of liquid
glucose. The export led confectionery sector performed better, whereas
unorganized units faced the issue of the energy crisis. The vibrant demand
for food grade starches from different applications in food processing also
contributed to volume growth. However, inflationary pressures on the prices
of utilities and essential food items are unsettling consumers' buying
patterns and squeezing their purchasing power.

ANIMAL NUTRITION & HEALTH BUSINESS

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Financial statement Analysis

The animal nutrition ingredients business continued to perform well, led by


the poultry, livestock and aquaculture sectors. A shortage of grains and other
substitute feed ingredients in the country provided a strong demand for our
animal nutrition ingredients. The poultry business has shown resilience
despite high inflation. Similarly growing areas of fish farming and the
popularity of cattle feed rationing kept demand of our Prairie Gold® and
Rafhan® Maize Gluten Meals, Buffalo™ Maize Bran, Enzose® Hydrol and
Rafhan® Maize Oil Cake strong.

ENVIRONMENTAL STEWARDSHIP PROGRAM


Our environmental commitment extends to every part of our operations. Our
plants have Environment Committees to manage routine environment issues
and review performance. An environmental impact assessment is done in
advance for every new project and measures are adopted to minimize
adverse impacts on the environment. Our employees regularly undergo
training to improve awareness about environment-friendly practices.

OCCUPATIONAL SAFETY AND HEALTH


Safety is our core priority. Safety values are demonstrated in our day-to-day
activities through lead-by-example approach. Health, safety and
environmental concerns are always among our key focal points. We are
committed to provide clean, healthy and safe conditions for our employees,
contractors, visitors and the community in which we operate. The Safety,
Training and Environment Management Program developed over a period of
time in line with our processes

INFORMATION TECHNOLOGY
Information technology is considered the backbone of our Company.
Dealings with such a large number of suppliers, dealers, customers and other
contractors can only be conducted in a fair manner with the help of strong IT
system. Your Company has a custom designed IT system which integrates all
sorts of operations to ensure smooth, timely and fair flow of information. The
production facilities and our offices in different locations are connected
through dedicated communication channels.

RESEARCH AND DEVELOPMENT


Our flexible and dynamic corporate strategy strives to enhance customer
satisfaction through continuous improvement and value added benefits. Our
range of products is constantly expanding, supported by extensive
development work. We consider diversification of our product line to be a
major tool for success in the ever changing market scenario. Over the years,
we have come up with significant innovations in our product line, which have
added value to our products for different consuming segments.

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Financial statement Analysis

SOCIAL RESPONSIBILITY AND COMMUNITY WORK


Rafhan aim to play a positive role in the communities in which we operate.
We are committed to follow the highest social standards as a good corporate
citizen in our society for long term success.

TRAINING AND MANAGEMENT DEVELOPMENT


The training program of the Company is designed on an annual basis
focusing on the customer and business needs and challenges. Developing
our people is a top priority. Over the years, we have maintained a distinctive
corporate culture driven and influenced by our dedicated and energetic
workforce. Our employees are given opportunities for self-development and
career growth. This is achieved through delegation of responsibility and
regular training opportunities, both within the country and in appropriate
cases, abroad.

BUSINESS RISKS, CHALLENGES AND FUTURE PROSPECTS

The business environment of the country is expected to remain extremely


challenging in the year 2009. Any improvement in the business environment
will largely depend on the economic policies of the government and
improvement in the global economy. Pakistan's economy has undergone a
testing time - going forward business conditions may be tougher. The high
inflation rate, rising energy deficit, volatile political situation, unfavorable
trade balance and escalation in input costs may lead to a slowdown in the
economic growth and performance of the industrial sector. The purchasing
power of the consuming segments is already eroded by the continued
increase in prices of essential commodities, utilities and necessities of life. 

The government has increased the minimum support price of wheat from
Rs.625 to Rs.950 to induce the farmers to grow more wheat. With the
increase in the price of wheat, the same price trend is foreseen for maize
having the same cultivation season. The high price of wheat may also shift
demand of livestock sector to maize, creating a tough competition and
increase in prices. Continuous energy crisis and high labor costs, coupled
with above factors, are likely to continue to affect the manufacturing sector
resulting in an increase in cost of other raw materials, manufacturing
supplies and engineering.

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Financial statement Analysis

Consequently, it will be difficult to pass on the total impact on your


Company's cost of production to the customers. Despite a difficult and
challenging business environment, Company is fully aware and cognizant of
market dynamics and is committed to maintain its focus on further
improving operational efficiencies, cost rationalization, customer services
and exploring new opportunities. Our belief is based on the inherent strength
of your Company and we are confident that we will, InshAllah, be able to
withstand the emerging and diverse challenges to achieve your Company's
objectives and deliver exceptional value to our customers and shareholders.

Building On strength

• People
• Technology
• innovation

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Financial statement Analysis

PROFIT & LOSS ACCOUNTOF RAFHAN


MAIZE

2006 2007 2008

Sales 6,127,127 7,578,339 10,746,826

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Financial statement Analysis

Cost of Goods Sold 4,556,068 5,480,167 8,005,580

Gross Profit 1,571,059 2,098,172 2,741,246

Operating Expense

Distribution cost 106,664 190,583 160,563

Admin Expenses 143,530 152,950 165,510

Operating Income 1,320,865 1,754,639 2,415,173

Other Operating Incomes 44,489 62,862 90,911

Sub total 1,365,354 1,817,501 2,506,084

Other Operating Expenses 92,555 124,593 170,896

E.B.I.T 1,272,799 1,692,908 2,335,188

Other Expenses

Finance cost 20,405 11,807 36,123

E.B.T 1,252,394 1,681,101 2,299,065

Taxation 443,115 591,917 806,700

Profit After Taxation 809,279 1,089,184 1,492,365

Earnings Per Share 88 118 162

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Financial statement Analysis

BALANCE SHEET
OF
RAFHAN MAIZE

CURRENT ASSET 2006 2007 2008


stores&spares 175,653 218,821 279,768
stock in trade 1,160,613 1,361,821 2,406,062
trade debts 266,787 328,389 343,604
loan,advances,deposits,prepayments
&other receivables 38,043 42,534 56,131
cash&bank balances 236,295 305,420 13,730
TOTAL CURRENT ASSETS (A) 1,877,391 2,256,985 3,099,295

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Financial statement Analysis

CURRENT LIABILITIES
trade&other payables 552,982 589,359 765,924
mark up accrued on short term running
finance 2,197 61 8,522
short term running finance secured 493,709
provision for taxation 54,629 78,158 146,889
TOTAL CURRENT LIABILITIES (B) 609,808 667,578 1,415,044

WORKING CAPITAL (A-B) = C 1,267,583 1,589,407 1,684,251

NON-CURRENT ASSETS
property plant&equipments 1,342,425 1,501,737 1,553,156
capital work in progress 271,086 88,892 503,559
long term loans 2,511 1,460 791
employes retirement benefits 33,235 96,537 71,957
TOTAL NON-CURRENT ASSETS (D) 1,649,257 1,688,626 2,129,463

NET ASSETS/TOTAL ASSSETS (C+D) = (E) 2,916,858 3,278,033 3,813,714

NON CURRENT LIABILITIES


Defferd liabilities
defferd taxation 190,195 252,337 235,273
TOTAL NON CURRENT LIABILITIES (F) 190,195 252,337 235,273

NET WORTH (E-F) 2,726,645 3,025,696 3,578,441

REPRESENTED BY
share capital 92,364 92,364 92,364
reserves 2,634,281 2,933,332 3,486,077
TOTAL 2,726,645 3,025,696 3,578,441

RATIO ANALYSIS

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Financial statement Analysis

It’s a tool which enables the banker or lender to arrive at the following
factors:

• Liquidity position
• Profitability
• Solvency
• Financial Stability
• Quality of the Management
• Safety & Security of the loans & advances to be or already been provided

Ratios Analysis will cover following ratios:

a) Liquidity Ratios
b) Leverage Ratios
c) Profitability Ratios
d) Activity Ratios
e) Market Ratios

Liquidity Ratios

1. Current Ratio
It is the relationship between the current assets and current liabilities of a
concern.

Current Ratio = Current Assets/Current Liabilities

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Financial statement Analysis

Year 2006 2007 2008


Current Assets 1877391 2256985 3099295
Current
609808 667578 1415044
Liabilities
Current ratio 3.08 3.38 2.12

2. Quick Ratio
It is the relationship b/w current assets less inventories over current liabilities
of a concern

Current assets – inventories / current liabilities

Year 2006 2007 2008


Current Assets
716778 895164 693233
less inventories
Current Liabilities 609808 667578 1415055

Quick Ratio 1.18 1.34 0.49

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Financial statement Analysis

Leverage Ratios
1. Debt to Equity Ratio
The debt to equity ratio gives the proportion of a company (or person's)
assets that are financed by debt versus equity s

Debt to Equity Ratio = Total debt / Total Equity

Year 2006 2007 2008


Debt To
Equity 8.66 9.66 17.87
Ratio

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Financial statement Analysis

2. Debt Ratio
The proportion of a firm's total assets that are being financed with borrowed
funds

Debt Ratio = Total Debt / Total Assets

Year 2006 2007 2008


Debt Ratio 0.23 0.23 0.32

Capitalization Ratio
It show’s the Extent to which Long term Debts & Share holder’s
Equity involve in company’s Capitalization.

1. Coverage Ratio
Its show’s that at what level the company capable of
cover or pay off interest and financial charges.

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Financial statement Analysis

Year 2006 2007 2008


Coverage 62.38 143.38 64.6
ratio

Profitability Ratios
1. Net Profit Margin

Net Profit margin = Net Profit / Sales x 100

Year 2006 2007 2008


Net Profit 809279 1089184 1492365
Sales 6127127 7578339 10746826
Net Profit Margin 13% 14% 14%

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Financial statement Analysis

2. Return on Equity (ROE)

Return on Total Equity = Profit after taxation x


100
Total
Equity

Year 2006 2007 2008


ROE 8.76 11.79 16.16

3. Return on Investment

Return on Assets (ROA) = Profit after Taxation / Total


assets x 100

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Financial statement Analysis

Year 2006 2007 2008


Net income 809279 1089184 1492365
352664
Total assets 3945611 5228758
8
ROA 23% 28% 29%

Activity/Turnover Ratio

Its shows at what level the company active in pay off Account
Payable and collect Account Receivable or Converting
inventory into cash.

1. Turnover Account receivable

Year 2006 2007 2008


A/R 25.36 25.47 31.98
Turnover

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Financial statement Analysis

2. Average Payable turnover

Year 2006 2007 2008


Average 6 7.16 9.14
payble
turnover

3. Inventory turnover
Year 2006 2007 2008
Inventory 3.59 4.35 4.25
turnover
ratio

Operating Cycle

The length of time from the commitment of cash for


purchase until the collection of receivable resulting from the
sale of goods or services.

ITO in days + RTO in days

Year 2006 2007 2008


Operating 160 days 98 days 97 days

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Financial statement Analysis

cycle

Cash Cycle

The length of time when actually cash receive and pay.

Operating cycle – payable turn over in days

Year 2006 2007 2008


Cash Cycle 56 days 47 days 58 days

Horizontal Analysis of Profit and Loss


Account

200
2008 7 2006

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Financial statement Analysis

124
Sales 142% % 118%

120
Cost of sales 146% % 114%

134
Gross profit 131% % 131%

179
Distribution cost 84% % 128%

107
Administrative expenses 108% % 105%

133
Operating profit 138% % 135%

141
Other operating income 145% % 95%

Finance cost 306% 58% 247%

135
Other operating expenses 137% % 145%

134
Profit before taxation 137% % 131%

134
Taxation 136% % 131%

135
Profit after taxation 137% % 132%

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Financial statement Analysis

Horizontal Analysis of Balance Sheet


200
2008 7 2006

NON CURRENT ASSETS

112
Property, plant and equipment 103% % 113%

Capital work-in-progress 566% 33% 55%

290
EMPLOYEES RETIREMENT BENEFITS 75% % 94%

LONG TERM LOANS 54% 58% 103%

CURRENT ASSETS

125
Stores and spares 128% % 109%

117
Stock in trade 177% % 84%

123
Trade debts 105% % 123%

112
Loans, advances, deposits, prepayments and other receivables 132% % 97%

129 1631
Cash and bank balances 4% % %

112
TOTAL ASSETS 133% % 100%

CURRENT LIABILITIES

107
Trade and other payables 130% % 99%

13970
Mark up accrued on short term running finances % 3% 61%

Short term running finances - secured - - -

143
Provision for taxation 188% % 84%

NON CURRENT LIABILITIES

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Financial statement Analysis

133
Deferred taxation 93% % 132%

SHARE CAPITAL AND RESERVES

100
Share capital 100% % 100%

111
Reserves 119% % 107%

112
TOTAL LIABILITIES 133% % 100%

Vertical Analysis of Profit and Loss Account

2008 2007 2006

100
Sales 100% % 100%

72.3 74.4
Cost of sales 74.5% % %

27.7 25.6
Gross profit 25.5% % %

Distribution cost 1.5% 2.5% 1.7%

23.2 21.6
Administrative expenses 22.5% % %

Operating profit 0.8% 0.8% 0.7%

141
Other operating income 145% % 95%

Finance cost 0.3% 0.2% 0.3%

Other operating expenses 1.6% 1.6% 1.5%

22.2 20.4
Profit before taxation 21.4% % %

Taxation 7.5% 7.8% 7.2%

Profit after taxation 13.9% 14.4 13.2

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Financial statement Analysis

% %

Vertical Analysis of Balance Sheet


2008 2007 2006

NON CURRENT ASSETS

38.2 113
Property, plant and equipment 29.6% % %

Capital work-in-progress 9.6% 2.3% 7.7%

EMPLOYEES RETIREMENT BENEFITS 1.4% 2.4% 0.9%

LONG TERM LOANS 0.0% 0.0% 0.1%

CURRENT ASSETS

Stores and spares 5.4% 5.5% 5.0%

34.5
Stock in trade 46.0% % 32.8%

Trade debts 6.6% 8.3% 7.6%

Loans, advances, deposits, prepayments and other receivables 1.1% 1.1% 1.1%

Cash and bank balances 0.3% 7.7% 6.7%

TOTAL ASSETS 100% 100% 100%

CURRENT LIABILITIES

Trade and other payables 14.6% 14.9 15.7%

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Financial statement Analysis

Mark up accrued on short term running finances 0.2% 0.0% 0.1%

Short term running finances - secured 9.4% 0.0% 0.0%

Provision for taxation 2.8% 2.0% 1.5%

NON CURRENT LIABILITIES

Deferred taxation 4.5% 6.4% 5.4%

SHARE CAPITAL AND RESERVES

Share capital 1.8% 2.3% 2.6%

74.4
Reserves 66.7% % 74.7%

TOTAL LIABILITIES 100% 100% 100%

CONCLUSION
INDEX ANALYSIS

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Financial statement Analysis

CURRENT ASSET 2006 2007 2008 2006 2007 2008


sto re s& sp a re s 1 7 5 ,6 5 3 2 1 8 ,8 2 1 2 7 9 ,7 6 8 1 0 0 .0 0 % 1 2 4 .5 8 % 1 5 9 .2 7 %
sto c k in tra d e 1 ,1 6 0 ,6 1 3 1 ,3 6 1 ,8 2 1 2 ,4 0 6 ,0 6 2 1 0 0 .0 0 % 1 1 7 .3 4 % 2 0 7 .3 1 %
tra d e d e b ts 2 6 6 ,7 8 7 3 2 8 ,3 8 9 3 4 3 ,6 0 4 1 0 0 .0 0 % 1 2 3 .0 9 % 1 2 8 .7 9 %
lo a n ,a d v a n ce s,d e p o sits,p re p a y m e n ts
& o th e r re c e iv a b le s 3 8 ,0 4 3 4 2 ,5 3 4 5 6 ,1 3 1 1 0 0 .0 0 % 1 1 1 .8 1 % 1 4 7 .5 5 %
c a sh & b a n k b a la n ce s 2 3 6 ,2 9 5 3 0 5 ,4 2 0 1 3 ,7 3 0 1 0 0 .0 0 % 1 2 9 .2 5 % 5 .8 1 %
T O T A L C U R R E N T A S S E T S (A ) 1 ,8 7 7 ,3 9 1 2 ,2 5 6 ,9 8 5 3 ,0 9 9 ,2 9 5 1 0 0 .0 0 % 1 2 0 .2 2 % 1 6 5 .0 9 %

C U R R E N T L IA B IL IT IE S
tra d e & o th e r p a y a b le s 5 5 2 ,9 8 2 5 8 9 ,3 5 9 7 6 5 ,9 2 4 1 0 0 .0 0 % 1 0 6 .5 8 % 1 3 8 .5 1 %
m a rk u p a c cru e d o n sh o rt te rm ru n n in g
fin a n ce 2 ,1 9 7 61 8 ,5 2 2 1 0 0 .0 0 % 2 .7 8 % 3 8 7 .8 9 %
sh o rt te rm ru n n in g fin a n c e se c u re d 4 9 3 ,7 0 9 1 0 0 .0 0 % 0 .0 0 %
p ro v isio n fo r ta x a tio n 5 4 ,6 2 9 7 8 ,1 5 8 1 4 6 ,8 8 9 1 0 0 .0 0 % 1 4 3 .0 7 % 2 6 8 .8 8 %
T O T A L C U R R E N T L IA B IL IT IE S (B ) 6 0 9 ,8 0 8 6 6 7 ,5 7 8 1 ,4 1 5 ,0 4 4 1 0 0 .0 0 % 2 3 2 .0 5 %

W O R K IN G C A P IT A L (A -B ) = C 1 ,2 6 7 ,5 8 3 1 ,5 8 9 ,4 0 7 1 ,6 8 4 ,2 5 1 1 0 0 .0 0 % 1 2 5 .3 9 % 1 3 2 .8 7 %

N O N -C U R R E N T A S S E T S
p ro p e rty p la n t& e q u ip m e n ts 1 ,3 4 2 ,4 2 5 1 ,5 0 1 ,7 3 7 1 ,5 5 3 ,1 5 6 1 0 0 .0 0 % 1 1 1 .8 7 % 1 1 5 .7 0 %
c a p ita l w o rk in p ro g re ss 2 7 1 ,0 8 6 8 8 ,8 9 2 5 0 3 ,5 5 9 1 0 0 .0 0 % 3 2 .7 9 % 1 8 5 .7 6 %
lo n g te rm lo a n s 2 ,5 1 1 1 ,4 6 0 791 1 0 0 .0 0 % 5 8 .1 4 % 3 1 .5 0 %
e m p lo y e s re tire m e n t b e n e fits 3 3 ,2 3 5 9 6 ,5 3 7 7 1 ,9 5 7 1 0 0 .0 0 % 2 9 0 .4 7 % 2 1 6 .5 1 %
T O T A L N O N -C U R R E N T A S S E T S (D ) 1 ,6 4 9 ,2 5 7 1 ,6 8 8 ,6 2 6 2 ,1 2 9 ,4 6 3 1 0 0 .0 0 % 1 0 2 .3 9 % 1 2 9 .1 2 %

N E T A S S E T S /T O T A L A S S S E T S (C + D2) ,9= 1(E


6 ,8) 5 8 3 ,2 7 8 ,0 3 3 3 ,8 1 3 ,7 1 4 1 0 0 .0 0 % 1 1 2 .3 8 % 1 3 0 .7 5 %

N O N C U R R E N T L IA B IL IT IE S
D e ffe rd lia b ilitie s 2006 2007 2008 2006 2007 2008
S a le sd e ffe rd ta x a tio n 6 , 1 2 7 , 1 277, 51 79 08 ,1
, 3931590 , 27 54 26,3, 8327160 0 2. 0305 %
,2 71 32 31. 60 09 .0
% 01%7 5 . 14 30 2%.6 7 % 1 2 3 .7 0 %
T O T A L N O N C U R R E N T L IA B IL IT IE S (F1)9 0 ,1 9 5 2 5 2 ,3 3 7 2 3 5 ,2 7 3 1 0 0 .0 0 % 1 3 2 .6 7 % 1 2 3 .7 0 %
C o s t o f G o o d s S o ld 4 , 5 5 6 , 0 658, 4 8 0 , 1 6 87 , 0 0 5 , 5 8 10 0 0 . 0 0 % 1 2 0 . 2 8 % 1 7 5 . 7 1 %
G r o sNs EPTr oWf Oi t R T H (E -F ) 1 , 5 7 1 , 0 5229, ,7
0 9286,,61 47 52 3, 7,04215,,6
2 491660 30 ,5
. 0708%,41431 31. 50 05 .0
% 01%7 4 . 14 18 0%.9 7 % 1 3 1 .2 4 %
O p e ra t i n g E x p e n s
D is t r ib u t io n c o s t 1 0 6 , 6 6 4 1 9 0 , 5 8 3 1 6 0 , 5 6 31 0 0 . 0 0 % 1 7 8 . 6 8 % 1 5 0 . 5 3 %
A d m Rin EEP xRpEeSnEsNeTs E D B Y 1 4 3 , 5 3 0 1 5 2 , 9 5 0 1 6 5 , 5 1 01 0 0 . 0 0 % 1 0 6 . 5 6 % 1 1 5 . 3 1 %
O p e rasht ai nreg cIna cp ita
o ml e 1 , 3 2 0 , 8 615, 7 95 24,3, 663429 , 4 19 25 ,3
, 167413 0 0 . 09 02 ,3
% 6143 21. 80 04 .0
% 01%8 2 . 18 05 0%.0 0 % 1 0 0 .0 0 %
re se rv e s 2 ,6 3 4 ,2 8 1 2 ,9 3 3 ,3 3 2 3 ,4 8 6 ,0 7 7 1 0 0 .0 0 % 1 1 1 .3 5 % 1 3 2 .3 4 %
O t h e Tr OO TpAe Lra t i n g In c o m e s 4 4 , 4 8 9 2 ,7
6 22,68,66 42 5 39,002, 59,61 19160 30 ,5. 0708%,41441 11. 30 00 .0
% 02%0 4 . 13 14 0%.9 7 % 1 3 1 .2 4 %
S u b t o ta l 1 , 3 6 5 , 3 514, 8 1 7 , 5 0 21 , 5 0 6 , 0 8 14 0 0 . 0 0 % 1 3 3 . 1 2 % 1 8 3 . 5 5 %
O t h e r O p e ra t i n g E x p e n s e s 9 2 , 5 5 5 1 2 4 , 5 9 3 1 7 0 , 8 9 61 0 0 . 0 0 % 1 3 4 . 6 2 % 1 8 4 . 6 4 %
E .B .I.T 1 , 2 7 2 , 7 919, 6 9 2 , 9 0 28 , 3 3 5 , 1 8 18 0 0 . 0 0 % 1 3 3 . 0 1 % 1 8 3 . 4 7 %
O th e r E x p e n s e s
F in a n c e c o s t 2 0 , 4 0 5 1 1 , 8 0 7 3 6 , 1 2 31 0 0 . 0 0 % 5 7 . 8 6 % 1 7 7 . 0 3 %
E .B .T 1 , 2INDEX
5 2 , 3 914, 6 8 1 , 1 0ANALYSIS
21 , 2 9 9 , 0 6 15 0 0 . 0 0 % 1 3 4 . 2 3 % 1 8 3 . 5 7 %
T a x a t io n 4 4 3 , 1 1 5 5 9 1 , 9 1 7 8 0 6 , 7 0 01 0 0 . 0 0 % 1 3 3 . 5 8 % 1 8 2 . 0 5 %
P r o fi t A f t e r T a x a ti o n 8 0 9 , 2 7 19 , 0 8 9 , 1 8 14 , 4 9 2 , 3 6 15 0 0 . 0 0 % 1 3 4 . 5 9 % 1 8 4 . 4 1 %

32
Financial statement Analysis

COMMON SIZE ANALYSIS

33
Financial statement Analysis

CURRENT ASSET 2006 2007 2008 2006 2007 2008


stores&spares 175,653 218,821 279,768 4.98% 5.55% 5.35%
stock in trade 1,160,613 1,361,821 2,406,062 32.91% 34.51% 46.02%
trade debts 266,787 328,389 343,604 7.56% 8.32% 6.57%
loan,adv ances,deposits,prepaym ents
&other receiv ables 38,043 42,534 56,131 1.08% 1.08% 1.07%
cash&bank balances 236,295 305,420 13,730 6.70% 7.74% 0.26%
T OT AL CURRENT ASSET S 1,877,391 2,256,985 3,099,295 53.23% 57.20% 59.27%

CURRENT LIABILIT IES


trade&other payables 552,982 589,359 765,924 69.12% 64.07% 46.41%
m ark up accrued on short term running
finance 2,197 61 8,522 0.27% 0.01% 0.52%
short term running finance secured 493,709 0.00% 0.00% 29.92%
prov ision for taxation 54,629 78,158 146,889 6.83% 8.50% 8.90%
T OT AL CURRENT LIABILIT IES 609,808 667,578 1,415,044 910161.19% 72.57% 85.74%

NON-CURRENT ASSETS
property plant&equipm ents 1,342,425 1,501,737 1,553,156 38.07% 38.06% 29.70%
capital work in progress 271,086 88,892 503,559 7.69% 2.25% 9.63%
long term loans 2,511 1,460 791 0.07% 0.04% 0.02%
em ployes retirem ent benefits 33,235 96,537 71,957 0.94% 2.45% 1.38%
T OT AL NO N-CURRENT ASSET S 1,649,257 1,688,626 2,129,463 46.77% 42.80% 40.73%

NON CURRENT LIABILITIES


Defferd liabilities
defferd taxation 190,195 252,337 235,273 23.77% 27.43% 14.26%
T OT AL NO N CURRENT LIABILIT IES 190,195 252,337 235,273 23.77% 27.43% 14.26%

REPRESENT ED BY
share capital 92,364 92,364 92,364 3.39% 3.05% 2.58%
reserv es 2,634,281 2,933,332 3,486,077 96.61% 96.95% 97.42%
T OT AL 2,726,645 3,025,696 3,578,441 100.00% 100.00% 100.00%

34
Financial statement Analysis

2006 2007 2008 2006 2007 2008


S a le s 6 ,1 2 7 ,1 2 77 ,5 7 8 ,3 3 91 0 ,7 4 6 ,8 2 6 1 0 0 .0 0 % 1 0 0 .0 0 %1 0 0 .0 0 %
C o s t o f G o o d s S o ld 4 ,5 5 6 ,0 6 85 ,4 8 0 ,1 6 7 8 ,0 0 5 ,5 8 0 7 4 .3 6 % 7 2 .3 1 % 7 4 .4 9 %
G r o s s P r o fit 1 ,5 7 1 ,0 5 92 ,0 9 8 ,1 7 2 2 ,7 4 1 ,2 4 6 2 5 .6 4 % 2 7 .6 9 % 2 5 .5 1 %
O p e ra tin g E x p e n s
D is tr ib u tio n c o s t 1 0 6 ,6 6 4 1 9 0 ,5 8 3 1 6 0 ,5 6 3 1 .7 4 % 2 .5 1 % 1 .4 9 %
A d m in E x p e n s e s 1 4 3 ,5 3 0 1 5 2 ,9 5 0 1 6 5 ,5 1 0 2 .3 4 % 2 .0 2 % 1 .5 4 %
O p e ra tin g In c o m e 1 ,3 2 0 ,8 6 51 ,7 5 4 ,6 3 9 2 ,4 1 5 ,1 7 3 2 1 .5 6 % 2 3 .1 5 % 2 2 .4 7 %
O th e r O p e ra tin g In c o m e s 4 4 ,4 8 9 6 2 ,8 6 2 9 0 ,9 1 1 0 .7 3 % 0 .8 3 % 0 .8 5 %
S u b to ta l 1 ,3 6 5 ,3 5 41 ,8 1 7 ,5 0 1 2 ,5 0 6 ,0 8 4 2 2 .2 8 % 2 3 .9 8 % 2 3 .3 2 %
O th e r O p e ra tin g E x p e n s e s 9 2 ,5 5 5 1 2 4 ,5 9 3 1 7 0 ,8 9 6 1 .5 1 % 1 .6 4 % 1 .5 9 %
E .B .I.T 1 ,2 7 2 ,7 9 91 ,6 9 2 ,9 0 8 2 ,3 3 5 ,1 8 8 2 0 .7 7 % 2 2 .3 4 % 2 1 .7 3 %
O th e r E x p e n s e s
F in a n c e c o s t 2 0 ,4 0 5 1 1 ,8 0 7 3 6 ,1 2 3 0 .3 3 % 0 .1 6 % 0 .3 4 %
E .B .T 1 ,2 5 2 ,3 9 41 ,6 8 1 ,1 0 1 2 ,2 9 9 ,0 6 5 2 0 .4 4 % 2 2 .1 8 % 2 1 .3 9 %
T a x a tio n 4 4 3 ,1 1 5 5 9 1 ,9 1 7 8 0 6 ,7 0 0 7 .2 3 % 7 .8 1 % 7 .5 1 %
P r o f it A ft e r T a x a t io n 8 0 9 ,2 7 91 ,0 8 9 ,1 8 4 1 ,4 9 2 ,3 6 5 1 3 .2 1 % 1 4 .3 7 % 1 3 .8 9 %

E a rn in g P e r S h a re 88 118 162
2006 2007 2008
T o t a l A s s e ts 3 ,5 2 6 ,6 4 83 ,9 4 5 ,6 1 1 5 ,2 2 8 ,7 5 8
T o t a l L ia b ilitie s 8 0 0 ,0 0 3 9 1 9 ,9 1 5 1 ,6 5 0 ,3 1 7

35