4.

3 Financial analysis
4.3.1 Financial Statements for the year ended December 31, 2014
2014 2013
*(Restated)
--------------- (Rupees in 000) ------------
Note -

ASSETS

Cash and balances with treasury banks 7 7,773,892 5,026,637

Balances with other banks 8 514,982 1,179,425
Lendings to financial institutions 9 21,585,799 3,940,958
Investments net 10 42,679,316 46,259,398
Advances net 11 33,762,507 20,054,921
Operating fixed assets 12 3,627,512 3,165,117
Deferred tax assets net 13 883,605 699,272
Other assets 14 1,942,359 1,244,267
112,769,972 81,569,995

LIABILITIES

Bills payable 15 1,414,793 713,747

Borrowings 16 20,150,846 8,222,273
Deposits and other accounts 17 80,916,125 62,543,793
Sub-ordinated loans - -
Liabilities against assets subject to finance lease - -
Deferred tax liabilities - -
Other liabilities 18 1,354,315 1,122,763
103,836,079 72,602,576
NET ASSETS 8,933,893 8,967,419

REPRESENTED BY

Share capital 19 10,724,643 10,724,643

Discount on issue of shares (2,105,401) (2,105,401)
Reserves 301,699 231,442
Accumulated profits / (losses) 218,098 (64,596)
9,139,039 8,786,088
(Deficit) / surplus on revaluation of assets - net of tax 20 (205,146) 181,331
8,933,893 8,967,419
4.3.2 Profit and Loss Account for the year ended December 31, 2014
2014 2013
*(Restated)
--------------- (Rupees in 000) ----------
Note ---

Mark-up / return / interest earned 23 6,849,941 6,022,859

Mark-up / return / interest expensed 24 4,524,682 3,758,219

Net Mark-up / Interest income 2,325,259 2,264,640

Provision against non-performing loans and advances 11.4 (429,932) (457,504)
Provision for diminution in value of investments 10.3 (23,156) (52,424)
Bad debts written off directly - -

(453,088) (509,928)

Net mark-up / interest income after provisions 1,872,171 1,754,712

NON MARK-UP / INTEREST INCOME

Fee, commission and brokerage income 25 651,575 565,956

Dividend income 377,623 163,374
Income from dealing in foreign currencies 269,309 205,326
Gain on sale of securities net 26 222,374 825,413
Unrealised gain on revaluation of investments
classified as held-for-trading 10.4 117,079 926
Other income 27 39,879 45,502
Total non mark-up / interest income 1,677,839 1,806,497
3,550,010 3,561,209
NON MARK-UP / INTEREST EXPENSES

Administrative expenses 28 3,038,068 2,551,788

Other provisions / write offs 29 10,027 32,509
Fixed assets written off - -
Other charges 30 544 (2,630)

Total non-mark-up / interest expenses 3,048,639 2,581,667

501,371 979,542
Extra ordinary / unusual items - -

PROFIT BEFORE TAXATION 501,371 979,542

Taxation Current 31.1 (126,317) (50,536)

- Prior years 31.2 - 50,661
- Deferred 13.1 (23,771) (270,434)

31.3 (150,088) (270,309)

PROFIT AFTER TAXATION 351,283 709,233

4.3.3 Comprehensive Income for the year ended December 31, 2014
2014 2013
*(Restated)
--------------- (Rupees in 000) ------
Note -------

Profit after tax for the year 351,283 709,233

Other comprehensive income

Items that will be reclassified to profit and loss account

in subsequent period - -

Items that will not be reclassified to profit and loss account

in subsequent period
Acturial gain / (loss) on defined benefit plan -net of tax 35.5 1,668 (3,393)

Total comprehensive income for the year 352,951 705,840

4.3.4 Cash Flow Statement for the year ended December 31, 2014
2014 2013
*(Restated)
Note --------------- (Rupees in 000) -------------
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 501,371 979,542
Less: Dividend income (377,623) (163,374)
123,748 816,168
Adjustments:
Depreciation 12.2 268,460 223,030
Amortisation of intangible assets 12.3 21,122 18,910
Charge for defined benefit plan 35.5 14,566 21,565
Unrealised gain on revaluation of investments
classified as held-for-trading 10.4 (117,079) (926)
Provision against non-performing advances net 11.4 429,932 457,504
Provision against diminution in value of investments net 10.3 23,156 52,424
Provision for workers' welfare fund 10,027 32,509
Gain on sale of fixed assets (39,879) (45,502)
610,305 759,514
734,053 1,575,682
(Increase) / decrease in operating assets
Lendings to financial institutions (17,644,841) 132,145
Held for trading securities (20,630,015) 3,959,877
Advances (14,137,518) (2,493,647)
Other assets (excluding advance taxation) (763,274) (175,918)

(53,175,648) 1,422,457
Increase / (decrease) in operating liabilities
Bills payable 701,046 (533,247)
Borrowings 11,973,139 5,230,629
Deposits 18,372,332 21,056,762
Other liabilities 195,205 421,733
31,241,722 26,175,877
(21,933,926) 27,598,334
Gratuity paid (22,967) (75,000)
Income tax paid (24,746) (43,343)

Net cash (used in) / flow from operating activities (21,247,586) 29,055,673
CASH FLOWS FROM INVESTING ACTIVITIES
Net investment in available-for-sale securities 23,709,439 (26,737,586)
Dividend received 377,623 163,374
Payments for purchase of operating fixed assets (766,866) (409,271)
Proceeds on sale property and equipment disposed-off 54,768 69,155

Net cash flow from / (used in) investing activities 23,374,964 (26,914,328)
CASH FLOWS FROM FINANCING ACTIVITIES
Issue of share capital - -

Net cash flows from financing activities - -

Increase in cash and cash equivalents 2,127,378 2,141,345
Cash and cash equivalents at beginning of the year 6,157,353 4,016,008

Cash and cash equivalents at end of the year 8,284,731 6,157,353

4.4 Ratio Analysis
Ratio Analysis is an important and age-old technique of financial analysis. Ratios are important
and helpful in the reference that:
These simplify the comprehension of financial statement and tell the whole story of
changes in the financial conditions of the business.

These provide data for inter-firm comparison. The ratios highlight the factors associated
with successful and unsuccessful firms, also reveal strong and weak firms.

These help in planning and forecasting, these can assist management in its basic functions
of forecasting, planning, coordination and control.

These help in investment decision in case of investor and lending decision in case of
Bankers etc.

However, the ratios are only indicators, they cannot be taken as final regarding good and bad
financial position of the business other things have also to be seen.
1) Current Ratio = C.A / C.L
2013 2014
C.A 1154966422 1316160457
C.L 1019012206 1159982395
C.R 1.14 1.14
Comments
Current ratio shows the liquidity position of an organization. JS has a low current ratio. It is less
than industry average ratio.
2) Acid Test Ratio = Current Assets Inventories / Current Liabilities
2013 2014
Quick Assets 1154966422 1316160457
Current 1019012206 1159982395
Liabilities
Quick Ratio 1.14 1.14
Comments

Quick ratio is more liquid than current ratio because more liquid assets are used. JS quick ratio is
same as to industry average ratio which means JS has quick ability to pay off short term
obligations.

3) Sales to Working Capital = Net Sales / Net Working Capital

2013 2014
Sales 95956361 10125889
Net W.C 22562015 35952385
Sale to W.C 4.1% 0.3%
Comments
This ratio shows how efficiently W.C be operating to generate sale. Here W.C. is contributed 0.3
to 1rupee to Sales.
4) Working Capital = Current Assets Current Liabilities
2013 2014
C.A 1154966422 1316160457
C.L 1019012206 1159982395
WC 135954216 156178062

Comments
JS has more current assets and comparative ratios of W.C tell that W.C is increasing year after
year.
5) Net Profit Margin = NIAT/ interest income * 100
2013 2014
NIAT 17724846 16887057
Net Sale 95956361 10125889
NP Margin 18.5% 166.8%

Comments
The ratio of 2013, which is 166.8%, shows that out of 100% sales, JS is earning 166.8% as a net
profit.
6) Gross Profit Margin = Gross Profit / Interest earned * 100

2013 2014
G.P 47389388 44573404
Interest Earned 22562015 35952385
G.P Margin 210.1% 123.9%

Comments
The ratio of 2013, which is 123.9%, shows that out of 100% sales, JS is earning 123.9% as a
gross profit.
7) Return on Investment (ROI) = NIAT / Investments * 100
2013 2014
NIAT 17724846 16887057
Investment 319353392 342964635
ROI 5.5% 4.9%
Comments
ROI ratio of JS is comparatively decreasing. In 2013 return out of investment is 4.9%.
08) Return on Assets = NIAT / Total Assets
2013 2014
NIAT 17724846 16887057
Total Assets 1154966422 1316160457
ROA 1.5% 1.2%
Comments

This ratio shows that in year 10, total asset contribution is 1.2% in every rupee of net profit
09) Account Payable Turnover = Cost of Sale / Account Payables

2013 2014
Cost of Sale 44573404 47389388
Account Payable 9104710 14367639
A/c payable Turnover (times) 4.89 3.29
Comments
Generally this ratio shows that after how much period, account payable of organization is turned
over. In 2013 JS payables are turned over 3.29 times.
10) Account Receivable Turnover = Sales / Account Receivables

2013 2014
Sales 95956361 10125889
Account receivable 43973531 8280997
A.R.T (times) 2.18 1.23

Comments
Generally this ratio shows that after how much period, account receivable of organization is
turned over. In 2013 JS receivable are turned over 1.23 times.