ICI Pakistan today

Looking ahead to tomorrow

 ICI Pakistan today
Looking ahead to tomorrow

We now operate as an independent business unit within AkzoNobel and as a part of its
specialty chemicals portfolio, known as Chemicals Pakistan.

We are one of the largest quoted companies on the Karachi, Lahore and Islamabad
Stock Exchanges

 We have a paid up share capital of Rs 1.39 billion.

 Our turnover in 2010 was Rs 39.53 billion and profit before tax was Rs 3.73
billion.

 Our company employs around 1300 permanent staff members.

Our four businesses, Polyester, Soda Ash, Chemicals and Life Sciences,
manufacture and sell a wide range of industrial and consumer products. These
include:
 Polyester Staple Fibres
 POY Chips
 Light and Dense Soda Ash
 Sodium Bicarbonate
 Specialty Chemicals
 Polyurethanes
 Adhesives
 A wide range of Pharmaceutical and Animal Health products
manufactured on a toll basis.
 We also market Seeds, and in addition are engaged in trading in
various specialized chemicals for use in industries across Pakistan.
 Our Vision & Mission
Our Vision
Tomorrow’s Answers Today

Often people achieve only incremental progress, because their view of tomorrow
is determined by what they see today. We believe the future belongs to those
smart enough to challenge it. We believe that real progress belongs to those who
not only think with courage, but also have the courage to deliver on the thought.

Tomorrow’s answers, delivered today.

What drives us is knowing that what is good for our customers today is not
necessarily good enough for them tomorrow. What excites us is asking the
unasked question. What inspires us is seeing the opportunity others cannot.
What unites us is the intelligence to deliver where others have not.

This benefits our customers because we sustain their future competitiveness and
meet the consumers’ unspoken needs. This ambition defines us. This is the way
we work. This is why we come to work.

Our Mission
To be the partner of first choice for customers and suppliers, ensuring sustained
leadership positions in the markets where we compete, delivering long-term
business value through a high performance culture, innovation, ethics and
responsible care.

Strategic Thrust

To achieve our mission we will:

• Give highest priority to health, safety, environment and ethical matters

• Ensure our products deliver maximum value to customers by maintaining
dependable supply, consistent quality, and reliability
• Uphold excellent service levels to foster long-term relationships with customers
and suppliers
• Achieve the highest possible operating efficiencies and lowest costs, and
expand the business through selective capacity increase and new product
launches
• Develop and retain a team of highly capable people dedicated to delivering the
mission
 ICI Pakistan

Below is the ratio analysis of ICI Pakistan. for the year 2014-2015.

Ratio Analysis of company report (2014/15)

Short term solvency ratios/liquidity ratios

Current Ratio:

Current Ratio = Current assets = 0.83

(2015) Current liabilities

Current Ratio = Current assets = 1.14

(2014) Current liabilities
Analysis:
The current ratio of the company has decreased in 2015 as compared to 2014 b
The current ratio of the company shows that liquidity position of the company is bad.the
company wants to increase its current assets

Quick Ratio:

Quick Ratio = Current assets-Inventory = 0.36

(2015) Current liabilities

Quick Ratio = Current assets-Inventory = 0.54

(2014) Current liabilities

Analysis:
The Quick ratio of the company has decreased in 2015 as compared to 2014
this shows that in 2015 the company has less chances of paying off its short term
obligations. so company wants to increase it investment in the inventories.

Cash Ratio:

Cash Ratio = Cash = 0.011

(2015) Current liabilities

Cash Ratio = Cash = 0.11

(2014) Current liabilities

Analysis:
 The cash ratio of the company has decreased in 2015 as compared to 2014
because in 2015 company has more cash and bank reserves in 2014 the total assets of the
company is decreased overall.
Long Term Solvency Ratios/Leverage Ratios

Total Debt Ratio:

Total Debt Ratio = Total Assets-Total Equity = 0.50

(2015) Total Assets

Total Debt Ratio = Total Assets-Total Equity = 0.48

(2014) Total Assets

Analysis:
The total debt ratio of the company has increased in 2015 as compared to 2014
so it can be infer that the company is not relaying on it own financing with comparison to
last year so now it has more pressure of creditors.

Debt to Equity Ratio:

Debt to Equity Ratio = Total Debt = 1.01

(2015) Total Equity

Debt to Equity Ratio = Total Debt = 0.93

(2014) Total Equity

Analysis:
The debt to equity ratio of the company has increased in 2015 as compared to
2014 which means that company is now more relaying on others money so this shows
that company is now using other people money more efficiently that must effect the
company’s profit earnig or earning per share ratio.

Equity Multiplier:

Equity Multiplier = Total Assets = 2.006

(2015) Total Equity

Equity Multiplier = Total Assets = 1.931

(2014) Total Equity

Analysis:
The Equity Multiplier of the company has increased in 2015 as compared to
20014.the company has increased its equity multiplier but is able to manage it functions
properly therefore it is earning profit.
Interest Coverage Ratio:

Interest Coverage Ratio = Earning before interest & tax = 11.68

(2015) Interest
Interest Coverage Ratio = Earning before interest & tax = 10.94
(2014) Interest
Analysis:
The Interest Coverage ratio of the company has increased in 2015 as compared
to 2014. In 2015 company’s profit before interest and tax is increased so that they areable
to pay so much as they before.

Asset Management Turnover Ratios

Inventory Turnover Ratio:

Inventory Turnover Ratio = Cost of Goods Sold = 6.67 times

(2015) Inventory

Inventory Turnover Ratio = Cost of Goods Sold = 7.30 times

(2014) Inventory
Days sales in Inventory = 365 = 54 days
(2015) Inventory T/o Ratio

Days sales in Inventory = 365 = 50 days

(2014) Inventory T/o Ratio

Analysis:
The Inventory Turnover Ratio of the company has decreased in 2015 as
compared to 2014, so now company is less quickly converting its inventory into sales. Its
production and sale performance is decreased in 2015. firstly they were converting the
inventory 7 times in a year but now they are converting it 6 times in a year.

Receivable Turnover Ratio:

Receivable Turnover Ratio = Net Credit Sales = 7.14 times

(2015) average receivable

Receivable Turnover Ratio = Net Credit sales = 30.37 times

 (2014) Average receivable

Days sales in Receivable = 365 = 50 days

(2015) Receivable T/o Ratio

Days sales in Receivable = 365 = 12 days

(2014) Receivable T/o Ratio

Analysis:
The Receivable Turnover Ratio of the company has decreased in 2015 as
compared to 2014 this is why the company debt to equity ratio is increased because
increase in debts borrowing and then increase in credit sale which is not a good thing for
company because now company is taking more time to recover its debts as compared
previous year. Now outsiders are using company’s finances not the company.

Payable Turnover Ratio:

Payable Turnover Ratio = Cost of goods Sold = 25554083 = 4.8 times

(2015) Account Payable 527001

Payable Turnover Ratio = Cost of goods Sold = 2282833 = 3.85 times

(2014) Account Payable 596951

Days sales in Payable = 365 = 88 days

(2015) Payable T/o Ratio

Days sales in Payable = 365 = 67 days

(2014) Payable T/o Ratio

Analysis:
The Payable Turnover Ratio of the company has increased in 2015 as compared
to 2014 which is not a good thing for company because now company is paying its so
early as compared previous year. This is because company wants to increase its
creditability. So this shows the weakness of the company increase in receivable turnover
and decrease in payable turnover.
Macro Level Ratios

Total Asset Turnover Ratio

Total Asset Turnover Ratio = Sales = 1.41 times

(2015) Total Assets

Total Asset Turnover Ratio = Sales = 1.67 times

(2014) Total Assets
Analysis:
Now assets are less battery used by the company. So that the turn over is decreased. The
inventory turnover is also one of the major effect of this change.

Capital intensity Ratio:

Capital intensity Ratio = Total Assets = 0.80 times

(2015) Sales

Capital intensity Ratio = Total Assets = 0.60 times

(2014) Sales

Analysis:
The capital intensity ratio is increased in 2015 so it signifies that now more assets are
required to generate the sale if one rupees.

Profitability Ratios

Gross Profit Margin:

Gross Profit Margin = Gross Profit = 15%

(2015) Sales

Gross Profit Margin = Gross Profit = 12%

(2014) Sales

Analysis:
The Gross Profit Margin of the company is increased in 2015 because if sales
increase on the other hand the cost of good sold is also increased.
Net Profit Margin:

Net Profit Margin = Net Profit = 1%

(2015) Sales

Net Profit Margin = Net Profit = 4%

(2014) Sales

Analysis:
The net Profit Margin of the company has decreased in 2015 as compared to
2014 because admn and selling expenses is increased has been increased and finance
cost is also increased.

Return on Assets:

Return on Assets = Net Profit = 8%

(2015) Total Assets

Return on Assets = Net Profit = 7%

(2014) Total Assets

Analysis:
The Return on Assets of the company has increased in 2015 as compared to
2014 because now they are using there assets efficiently and cost of finance is also
decreased and they have decreased the time for account receivable and increased the time
for paying account payable.

Return on Equity:

Return on Equity = Net Profit = 16%

(2015) Total Equity

Return on Equity = Net Profit = 14%

(2014) Total Equity

Analysis:
The Return on Assets of the company has increased in 2015 as compared to
2014.bacause finance cost is decreased .debt to equity ratio is decreased so the portion
which is borrowed for business is must be paid so that return on equity is increased.
Common Analysis of 2015
Common Analysis of 2014