Toyota Motor Corporation was Japans largest car company and the worlds third largest by the year

2000. The company controlled 9.8 percent of the global market for automobiles. Indus Motor Company (IMC) is a joint venture between the House of Habib , Toyota Motor Corporation Japan (TMC) , and Toyota Tsusho Corporation Japan (TTC) for assembling, progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 01, 1990. IMC is engaged in sole distributorship of Toyota. vehicles in Pakistan through its dealership network. Toyota Motor Corporation and Toyota Tsusho Corporation have 25 % stake in the company equity

 IMCs Vision is to be the most respected and successful enterprise, delighting customers with a wide range of products and solutions in the automobile industry with the best people and the best technology". The most respected. The most successful. Delighting customers. Wide range of products. The best people. The best technology.

Strategic objectives

Comparative balance sheet

Particulars Assets
Total fixed assets
Toatal current assets Total current & non current assets

2010

2011

Absolute

Percentage

3347025

4246881

899856

26.89

23791253

22587737

-1203516

-5.06

27138278

26834618

_303660

1.12

Comparative balance sheet

Share capital Total equity and reserves 12587615 14119648 1532033 12.17

Total liabilities

14224866

12260958

-1963908

-13.80

Total equilty and liabilities

27138278

26834618

-303660

-1.118

Interpretation

Comparative Profit & loss Account

For the year endig june 30 june,2010 and 2011 PARTICULARS Year ending 31December 60093139 55236625 61702677 57613542 Increase/Decr Increase/Decr ease ease ( % ) (Amounts) 1609538 2376917 2.68 4.30

Net Sales Cost of Sales

Gross Profit Operating Profit

Other Operating Income Finance Cost Profit After Tax

4856514 3590337
1796075

4089135 2580692
1507878

-767379 -1009645
-288197

-15.80 -28.12
-16.05

143873 3443403

77115 2743384

-66758 -700019

-46.40 -20.33

Common size balance sheet

for the year endig june 30 june,2010 and 2011
Particulars 2010 Increase/ decrease (%) 2011 Increase /decrease (%)

ASSETS
TOTAL fixed assets TOTAL current assets Total assests 3347025 12.33 4246881 15.829

23791253 27138278

87.67 100

22587737 26834618

84.17 100

Common size balance sheet

for the year endig june 30 june,2010 and 2011

EQUITY
TOTAL equity and reserves TOTAL non current liabilities TOTAL current liabilities TOTAL EQUITY AND LIABILITIES 12587615 325797 46.38 1.2 14119648 454012 52.617 1.69

14224866 27138278

52.41 100

12260958 26834618

45.69 100

Interpretation of common size

Common size Profit & loss Account

For the year ending on 30 june,2010 and 2011

Particulars Net sales Cost of sales Gross profit Operating profit

Other Operating Income

Increase/decr 2010 ease (%) 60093139 100 55236625 91.92 4856514 3590337
1796075

Increase/decr 2011 ease ( % ) 61702677 100.00 57613542 93.37 4089135 2580692

1507878

8.08 5.97
2.99

6.63 4.18
2.44

Profit after tax

3443403

5.73

2743384

4.45

INTERPRETATION

The Vertical Analysis of Income Statement reveals that there in that in 2010 CGS was 91.92% of net sales. And in2011 CGS is 93.37% of net sales. Gross Profit was 8.08% in 2010 and in 2011 GP is 6.03% of Sales. The % decrease in GP is because increase in Sales is less as compared to increase in CGS. Operating Expenses were 2.1% in 2010 while in 2011oerating expenses are 2.45% of Sales. This Expenses is due to the introduction of new Model of Vehicle. Another reason of increase in Operating Expenses is TSUNAMI in JAPAN. Operating Profit was 5.97% in 2010 and in 2011 GP is 4.18% of Sales. Operating Income was 2.99% in 2010 while in 2011 Operating income is 2.44% of Sales. the decreases is due to decrease in return on bank deposit and the reason of the decreases in bank deposit is we want to pay back our current liabilities and withdraw the money from bank. Finance Cost was .24% in 2010 while in 2011 is 1.89% of Sales. The Net Profit was 5.73% in 2010 while in 2011 is 4.45% of Sales is -20.32%

ratios

Short term financial position

Particulars
Liquidit ratio: Current ratio. Quick ratio. Cash ratio. Efficiency ratio: Inventory turnover ratio. Debtors or receivable turnover ratio. Creditor or payable turnover ratio. Working capital turnover ratio. 10.12 40.98 36 9 10.62 33.21 34 11 Times 1.84 1.37 1.13

2011
Days _ _ _ Times 1.67 1.30 1.10

2010
Days _ _ _

4.13

88

3.39

108

Interpretation of liquid ratio and efficiency ratio:

Liquid ratio 1.current ratio: The current ratio of toyota in 2011 is 1.84 as compared to 2010 that is 1.67 it means that the company is more liquid in 2011 and has the ability to pay its obiligation in times and when they become due. 2.Quick ratio: The quick ratio of toyota in 2011 is 1.37 as compared to 2010 that is 1.30 that shows company is more liquid in 2011 and has the ability to meet its current liabilities in times. 3.cash ratio: In 2011 cash ratio is 1.13 as compared to 2010 in wich cash ratio is 1.10 it means that liquid assets are adequate to pay current liabilities in time.

Long term financial position

Particulars
Deqbt equity ratio Proprietory ratio Solvancy ratio Fixed assets to net worth ratio Ratio of current assets to proprietory fund

2011
0.9005:1 53% 47% 30% 160%

2010
1.156:1 46% 54% 26% 189%

INERPRETATION
Debt equity ratio
In 2011 the proportionate claim of outsiders to owners is 0.9005:1. And in 2010 the debt equity ratio was 1.156:1 As the considered standard debt equity ratio is 1:1 so in 2011 0.9005:1 is satisfactory.

Properitory ratio

In 2011 the shareholder equity are 53% of the total assets. And In 2010 shareholder equity was 46% of total assets. Higher the proprietory ratio of the company better is the long-term solvency position of the company. So this shows that long-term solvency position of the company has improved.

Solvency ratio

IN 2011 total liabilities to outsiders are 47% of total assets. In 2010 total liabilities to outsiders are 54% of total assets. The lower the ratio of total liabilities to total assets, more satisfactory or stable is long-term solvency position of a firm, so this shows that long-term solvency position has improved in 2011.

FIXED ASSETS TO NET WORTH RATIO

Gross profit ratio Operating ratio Operating profit ratio Expenses ratio Net profit ratio Cash profit ratio

General profitability ratio

Particulars
Gross profit ratio

2011
6.6271%

2010
8.0816%

Operating ratio

95.81%

94.02% 5.974%

Operating profit ratio 4.18%

Net profit ratio Cash profit ratio

4.446% 11.21%

5.73% 11.15%

 Return on share holder investment Return on equity capital Earning per share

OVERALL PROFITABILITY RATIO

PARTICULARS Return on share holder investment Return on equity capital Earning per share 2011 19% 349.03%
34.9

2010 27% = 438.09 %

43.8

Market test or valuation ratio

Dividend yield ratio Price earning ratio earning yield ratio market value to book value ratio

Market Test Or Valuation Ratio

Particulars
Dividend yield ratio: Price-earning ratio: Earning yield ratio: M.V to b. Ratio:

2011
42.69% 5.78 17.2% 1.12 4.47

2010
34.10%

22.34% 1.22

 Apparently we see that there is downward trend in profit, assets and earning per share as compare to the previous year but financials show that company earns good amount of profit and has enough funds which enables it to issue interim dividend @ Rs. 5 per share. company also declare final dividend @Rs. 10 per share which is a good sign for its share holders as well as encourage investors.