FINANCIAL

ANALYSIS
IBL HEALTHCARE
LTD
SUBMITED BY:
MANOJ KUMAR TILWANI
SP10-BB-0032

SUBMITIED TO:
FAISAL AZIZ
APRIL/ 22/ 2011
IBF SECTION ‘C’

MOHAMMAD ALI JINNAH UNIVERSITY

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 .Acknowledgment:

I am thank full to Almighty Allah, my Parents, & teachers who gave me made me
able, and motivated me in every field of life. I will never ever be able to forget the sacrifices
of my parents they’ve made for me and for my educational career.

I am also very much thankful to my respected teacher for providing proper

required knowledge and motivation, and my colleges and relatives for their unflinching
support.

Dr. Mohan Tilwani

Faisal Aziz
Waqas Khan
Raazia Abdi
Hira Abdul Rawoof
Hamza Khan

MOHAMMAD ALI JINNAH UNIVERSITY

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Content:

S: No Description Page No

1. Vision Statement 4

2. Mission Statement 5

3. Corporate information 6

4. Financial Ratios 2010 7

5. Interpretation 11

6. Time Series Analysis 15

7. Cross Sectional Analysis 18

8. Internal Growth rate & Sustainable growth rate 21

9. Profama statements 23

10. Conclusion 27

11. Readers Comments 28

MOHAMMAD ALI JINNAH UNIVERSITY

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 To become the leading health care
products and service providers of Pakistan.

MOHAMMAD ALI JINNAH UNIVERSITY

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 We are committed to contribute in the betterment of
society by providing a versatile range of health care and nutrition
products. We aim to grow by relentlessly providing better products
and services to our customers, better returns to our stakeholders
and a better quality of life to the employees.

MOHAMMAD ALI JINNAH UNIVERSITY

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  Corporate information
BOARD OF DIRECTORS

CHAIRMAN
& Mr. Rashid Abdulla
CHIEF EXECUTIVE OFFICER

DIRECTORS: Mr. Khalid Malik

Syed Nadeem Ahmed
Mr. Munis Abdulla
Mr. Zubair Palwala
Mr. Asad Abdulla
Mr. Ayaz Abdulla
AUDIT COMMITTEE
CHAIRMAN: Mr. Asad Abdulla
MEMBERS: Mr. Khalid Malik
Mr. Zubair Palwala
COMPANY SECRETARY &
CHIEF FINANCIAL OFFICER: Mr. Mobeen Alam
BANKERS: . Silk Bank Ltd.
National Bank of Pakistan Ltd.
Habib Bank Ltd.
The Royal Bank of Scoltand.
National Bank of Pakistan

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 Standard Chartered Bank (Pakistan).
AUDITORS: Baker Tilly Mehmood Idrees Qamar & Co
LEGAL ADVISOR: Mohsin Tabebaly & Co
REGISTERED OFFICE: 9th Floor, NIC Building, Abbasi
Shaheed Road, Karachi

INTERPRETATION
OF
MOHAMMAD ALI JINNAH UNIVERSITY
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 RATIOS

 RATIOS ANALYSIS OF 2010

WORKING CAPITAL:

Working Capital= Current Assets - current Liabilities

Working Capital= 188943000-123275000
Working Capital= 179981000

CURRENT RATIO:

Current Ratio = Current Assets / Current liabilities

Current Ratio = 188943000/123275000
Current Ratio = 1.64

QUICK RATIO:

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Quick Ratio = Quick Assets / current Liabilities
Quick Ratio =
Quick Ratio = 0.66

INVENTORY TURN OVER:

Inventory turn over = Cost of Good Sold / Average Inventory

Inventory turn over = 362174000 /61125000
Inventory turn over = 5.925 Times

INVENTORY TURN OVER DAYS:

Inventory turn over days = 365 / Times

Inventory turn over days = 365 / 5.925
Inventory turn over days = 62 Days

*DEBT RATIO:

Debt Ratio = Total Liabilities / Total Assets x 100

Debt Ratio = 371393000 / x 100
Debt Ratio = 30.5%

Equity RATIO:

Equity Ratio = Total share holder equity / Total Assets

Equity Ratio = 248118000 / 371393000
Equity Ratio = 0.668

ASSETS TURN OVER :

Assets turn over = Total net sale / Total Assets

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Assets turn over = 475248000/ 371393000
Assets turn over = 1.28

PRICE EARNING RATIO:

Price earning ratio = Market Price / Earning Per share

Price earning ratio = 11.49 / 0.45
Price earning ratio = 25.533

RETURN ON TOTAL ASSETS:

Return on total assets = Net income / Total assets x 100

Return on total assets = 9093000 / 371393000 x 100
Return on total assets =2.44%

GROSS PROFIT MARGIN:

Gross profit Margin = Gross Profit / Net sales x 100

Gross profit Margin =113074000 /475248000 x 100
Gross profit Margin = 23.79%

OPERATING PROFIT MARGIN:

Operating profit Margin = Operating profits / Total sales x 100

Operating profit Margin = 14481000 / 475248000 x 100
Operating profit Margin = 3.04%

NET PROFIT MARGIN:

Net profit Margin = Net Profit / Net sales x 100

Net profit Margin = 9093000 / 475248000 x 100
Net profit Margin = 1.91 %

MOHAMMAD ALI JINNAH UNIVERSITY

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 TIMES INTREST EARNED RATIO:
Times Interest Earned Ratio =EBIT / Interest
Times Interest Earned Ratio = 14481000/450000
Times Interest Earned Ratio = 32.18
AVERAGE COLLECTION PERIOD:
Average Collection period= Accounts Receivable / Av: Sales per day
Average Collection period=33558000 / 1302049.315
Average Collection period=25.77

INTERPRETATION
OF
MOHAMMAD ALI JINNAH UNIVERSITY
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 RATIOS

CURRENT RATIO
INTERPRETATION:
Current ratio measures a firm’s ability meet its short term obligations. It shows
the relationship between current assets and current liabilities.
Here current ratio is 1.64 times. it means that company’s current assets are 1.64
times more than that of its currant liabilities.

QUICK RATIO:
INTERPRETATION:
Quick ratio measures a firm’s ability meet its short term obligations. It shows the
relationship between quick assets and quick liabilities.
In this company quick ratio is 0.66 times. it means that company’s quick assets
are 0.66 times more than that of its quick liabilities.

MOHAMMAD ALI JINNAH UNIVERSITY

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TIME INTEREST EARNED:
INTERPRETATION:
Time interest earned indicates that how many times a Company can pay its
finance cost from its operating profit.
In this company time interest earned ratio is 32.18 times from its operating profit

AVERAGE COLLECTION PERIOD:

INTERPRETATION:
AVG collection period indicates that after how many days the company converts
its account receivable into cash.
In this company Avg collection period is 25.773 days. It means that the company
converts its accounts receivables in 25.773 days.

INVENTORY TURNOVER:
INTERPRETATION:
Inventory turnover indicates that how many times a company converts its
inventory into sales or cash.
In this company, the inventory turnover is 5.925 times. It means the company
converts its inventory 5.925 times into sales a year.

TOTAL ASSET TURNOVER:

INTERPRETATION:
Total assets turnover indicates that after how many times the total assets of its
own worth generate revenue.
In this company, the total asset turnover is 1.28 times. It means that a company’s
total assets generate revenues 1.28 times of its own worth.

MOHAMMAD ALI JINNAH UNIVERSITY

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GROSS PROFIT MARGIN:
INTERPRETATION:
Gross profit margin show’s the relationship between gross profit and net sales. It
is a percentage of gross profit based on the value of net sales.
In this company, gross profit is 23.79% It means that company generates 23.79%
gross profit based on the value of net sales.

RETURN ON ASSETS:
INTERPRETATION:
Return on asset shows the relationship between net profit and total assets. It is
percentage of net profit based on the value of total assets.
In this company, return on assets 2.44%. It means that company generates
2.44% profit based on the value of total assets.

RETURN ON EQUITY:
INTERPRETATION:
Return on equity shows the relationship between net profit and total
shareholder’s equity. It is percentage of net profit based on the value of total
shareholder’s equity.
In this company, return on equity is 3.66%. It means that company generates
3.66% profit based on the value of total shareholder’s equity.

NET PROFIT MARGIN:

INTERPRETATION:
Net profit margin show’s the relationship between net profit and net sales. It is a
percentage of net profit based on the value of net sales.
MOHAMMAD ALI JINNAH UNIVERSITY
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In this company, net profit 1.91%. It means that company generates 1.91% net
profit based on the value of net sales.

OPERATING PROFIT MARGIN:

INTERPRETATION:
Operating profit margin show is the relationship between operating profit and
net sales. It is a percentage of operating profit based on the value of net sales.
In this company, operating profit margin is 3.04%. It means that company
generates 3.04% operating profit margin based on the value of net sales.

Time Series
Analysis

MOHAMMAD ALI JINNAH UNIVERSITY

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 TIME SERIES ANALYSIS OF 2008, 2009 &
2010

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 IBL Health Care

Time Series Analysis

RATIOS 2008 2009 2010 Interpretation

CURRENT 2.71 2.77 1.64 Worse

QUICK 1.39 1.6 0.66 Worse

INVENTORY TURN OVER 6.61 4.88 5.925 OK

AVERAGE COLLECTION 65.28 56.72 25.77 Worse

AVERAGE PYMENT
OK
TOTAL ASSETS TURN OVER 1..71 1.21 1.28

DEBT RATIO

TIME INTREST EARNED RATIO 7.485 -12.48 32.18 Better

GROSS PROFIT MARGIN 16.65 9.38 23.79% Better

OPERATING PROFIT MARGIN 3.04%

Worse
NET PROFIT MARGIN 2.48 -4.71 1.91%
OK
EARNING PER SHARE 0.79 -0.98 0.45

RETURN ON TOTAL ASSETS 4.24% -5.69% 2.44% Worse

RETURN ON COMMON EQUITY 6.11 -8.18 3.66% Worse

PRICE EARNING 14.544 11.724 25.533 Better

MARKET BOOK

CASH RATIO

FIXED ASSET TURN OVER

MOHAMMAD ALI JINNAH UNIVERSITY

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Cross Sectional
Analysis
MOHAMMAD ALI JINNAH UNIVERSITY
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Cross Sectional Analysis

MOHAMMAD ALI JINNAH UNIVERSITY

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 IBL Health Care

Cross Sectional Analysis

RATIOS 2010 INDUSTRY interpretation

CURRENT 1.64 2.05 Worse

QUICK 0.66 1.43 Worse

INVENTORY TURN OVER 5.925 6.6 Worse

AVERAGE COLLECTION 25.77 44.3 Worse

AVERAGE PYMENT 66.5

TOTAL ASSETS TURN OVER 1.28 0.75 Better

DEBT RATIO 40.00%

TIME INTREST EARNED RATIO 32.18 4.3 Better

GROSS PROFIT MARGIN 23.79% 30.00% Worse

OPERATING PROFIT MARGIN 3.04% 11.00% Worse

NET PROFIT MARGIN 1.91% 6.20% Worse

EARNING PER SHARE 0.45 2.26 Worse

RETURN ON TOTAL ASSETS 2.44% 4.60% Worse

RETURN ON COMMON EQUITY 3.66% 8.50% Worse

PRICE EARNING 25.533 12.5 Better

MARKET BOOK

CASH RATIO
MOHAMMAD ALI JINNAH UNIVERSITY
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FIXED ASSET TURN OVER
 INTERNAL
&
SUSTAINABLE
GROWTH RATES
2010

 Internal Growth Rate 2010

MOHAMMAD ALI JINNAH UNIVERSITY

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Internal Growth Rate = RoA x b / 1-(RoA x 100)
RoA = Net income / Total Assets
RoA =
RoA= 0.022

 Sustainable Growth Rate 2010

Sustainable Growth Rate = RoE x b / 1 – (RoE x b)

MOHAMMAD ALI JINNAH UNIVERSITY

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PROFORMA
STATEMENT

IBL HEALH CARE LTD.

BALANCE SHEET
MOHAMMAD ALI JINNAH UNIVERSITY
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 FOR THE YEAR ENDED JUNE 30, 2011

IBL Health Care

Proforma Blance Sheet
for the year of 2011 (000)
cash 29728.05 account payable 119437.4
marketable securites 115470.23 taxes payable 0
account receivable 34832.89 notes payable 0
inventory 63447.18 other current liabilities 265.72
other current assets 16089.89
total current assets 259568.24 total current liabilities 119703.2

long term debts 8255.13

sockholder's equity
common stock 200000
net fixed asset 189381.4 retain earning 49946.03
TOTAL STOCK EQUITY 249946
external financing required 71045.34
total laibilities and stock
total assets 448949.64 equity 448949.7

IBL HEALTH CARE LTD.

INCOME STATEMENT
MOHAMMAD ALI JINNAH UNIVERSITY
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 FOR THE YEAR ENDED JUNE 30, 2010

IBL Health Care

Proforma Income Statement
for the year of 2012
2009 2011
Revenue 414882 493303
-
Cost of sales 375986 -375933.2406
Gross profit 38896 117369.7594

Selling and distribution expenses -33380 -86703.36243

Adimnistration expenses -6290 -9184.141636
Amortization of intangable assets -8700 -9030.519013
-48370 -104918.0231
other operating income 1803 2579.406868
operating profit/(loss) -7671 15031.1432

finance cost -668 -467.095811

profit before tax -8339 14564.04739
taxation -11216 -5125.598033
net profit -19555 9438.449355

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Cash Dividend:
Cash Dividend: Net Income – Difference of Equity
Cash Dividend: 89343081- 1031511555.5
Cash Dividend :( 942168424.5)

CONCLUSION
MOHAMMAD ALI JINNAH UNIVERSITY
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 Conclusion:

 The Company Tata Textile Limited has on the fastest growing company in
the Pakistan the company has current position is excellent compare to the
past year and the company is going well in leader ship and company has
increase his performance to the last year and the company has produce high
quality of yarn for high quality product

MOHAMMAD ALI JINNAH UNIVERSITY

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Reader’s Comments

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