ASSIGNMENT # 1

SAPHIRE TEXTILE MILLS LIMITED (Pvt)

Analysis Of Financial Position (2017-2018)
Financial Highlights:

2017 2018

Net Turnover 25,583,975 28,896,327

Gross Profit 2,677,818 3,536,240

Profit from operations 3,944,310 3,340,232

Other Income 2,917,232 1,348,444

Profit Before Taxation 2,975,364 1,948,742

Profit After Taxation 2,721,747 1,595,059

NOTES:

 All the amont mentioned in the table is in Rupees(Rs).

 The net turnover of Saphire Textiles increased from 25.583 million Pkr to 28.896 million Pk) due
to the enhance marketing or the quality of their product.
 Gross Profit also increased from 2.6 million pkr to 3.536 million pkr which is 1.77% increment as
compared to previous year.
 The profit after deducting the sales and operational costs reduced from 2.72 million pkr to 1.595
million pkr (from 2017 to 2018).
Financial Position

ASSETS:

Non Current Assets:

2017 2018

Property, Plant, Equipment 10,572,291,482 11,415,325,178

Investment Property 31,750,000 31,750,000

Intangible Assets 2,943,337 2,035,188

Long term investments 17,512,696,959 14,926,618,637

Long term loans and advances 296,798,432 518,741,452

Long term deposits 82,182,808 88,434,708

Total 28,501,663,018 26,982,905,163

NOTES:

 Non current Assets are those who have long term future benefits.
 WE can not get clashflow out og non current assets within a year or two.
 Operational ssets of the company increased from 10.757 billion pkr to 11.415 billion pkr in one
year.
 However in decrement in long term investments and after getting additional loans for projects
the overall assets decreased from 28.501 billion pkr to 26.982 billion pkr which was in some loss.
(from 2017 to 2018).
Current Assets:

2017 2018

Stocks, Spares and loose tools 329,519,474 390,369,902

Stock in trade 5,424,521,859 5,471,700,519

Trade debts 1,723,627,585 2,947,183,401

Loans and advances 369,434,725 119,626,806

Trade deposits and short T 17,459,152 7,839,896

payments
Other receivables 266,589,119 566,397,978

Other financial assets 4,048,906,258 4,103,068,742

Tax refunds due from 1,661,686,845 1,685,599,962

government
Cash and bank balances 72,134,493 55,448,646

Total 13,913,879,510 15,347,245,872

Total Assets = Non Current Assets + Current Assets

Total Assets

2017 2018

42,415,542,528 42,330,151,035

STATEMENT:

The worth of company in 2017 was 42.415 billion pkr and the worth of company in 2018 was 32.330
billion pkr , which is a insignificant decrement from the previous year.
Equity And Liabilities:

2017 : 42,415,542,528 pkr

2018: 42,330,151,035 pkr

From the Total Assets, Liabilities and Equity, it is clearly shown the balance sheet is balanced according
to the given formula:

Balance Sheet:

Assets(A) = Liabilities (L) + Equity/Capital (E/C)

Final Comments:

The net profit after the taxation of the year decreased from 2.721 billion to 1.595 billion which is
significant and the operations to enhance its operations and marketing campaign and advertisements
with balancing the profit with the cost on these promotion strategies. Gross profit also increased with a
large amount. Earnings per share decreased from 135.5 billion to 7.42 billion pkr which does not attract
the stock investors.