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8/8/2019 Worldcall Pakistann Phase 2
1/19
Financial Reporting
PresentationWORLDCALL
Presenters: Hafiz Hassan Qureshi, Ali Raza Bashir and M. HarisAbrar
Email: [email protected]
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Total Assets performanceEvaluating Liquidity of Firm
The noncurrentassetsincreasedfrom 78
percent in2005 to 83.3in 2008.
The currentassets aredecreasing
includingcash.Although thethingInventorywhich needed
to decreaseshowing
Assets proportionsIncrease/Decrease
2008 percentages 2007 percentages 2006 percentages 2005 percentages
Non-current Asset 83.1 83.3 76.2 78.3
Current Asset 16.8 16.6 23.8 21.6
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Non Current AssetsComparing Non current assets
The propertyplant and equipmentincreased in aconstant modewhich is as a result
of expansion. Intangibleassets got shorterlife than propertyplant and equipmentthats why there is
decline in intangibleassets due to expiry.
Non-current assetsperformance
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Current AssetsComparing current assets
Theperformanceof thecompany intrade debt is
constant.Company ismaintainingan averageunder five oftotal assets.
The companygot only 10 %
of cash in2005 of totalassets andshowing
decreasingpattern.
Current assetsperformance
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Total LiabilitiesDistribution by Proportion
2008 percentages 2007 percentages 2006 percentages 2005 percentages
Total liability 100 100 100100
Current Liabilities 21.2 54.1 32.4 36
Non-Current Liabilities 78.8 55.9 57.6 64
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Current liabilitiesYear to year comparison
2008 percentages 2007 percentages 2006 percentages 2005 percentages
Total current liability 21.1 44. 42.335.9
Current Maturities ofNon-Current Liabilities
4.6 14.1 17.22.3
Trade & Other Payables 14.52 19.5 18.4
26
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Current liabilitiesReason of increase or decrease
Sindh High court orderworldcall to deposit 12.6
million rupees in highcourt. Because of thedividend issued in 2005 butnot been paid yet. Thisamount shows a rapiddecrease in current liability
in 2008.
Why Liabilities increase/Decrease
2008 Valuesin percentages
2007 valuesin percentages
2006 valuesin percentages
2005 valuesin percentages
Trade & Other Payables 14.52 19.5 18.4 26
Current Maturities ofNon-Current Liabilities
4.6 14.1 17.2 2.3
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Non Current liabilitiesYear to year Comparison
Term Finance Certificatesamounting to Rs. 350million issued duringthe year. That is areason why the Non
current liability show arapid increase in 2008.
The Company hadarranged a long termloan from AmatisLimited ("the lender")
of Rs. 1.497 billion.Which was converted inApril 2008 at a price ofRs. 13.93 per share
Why Liabilities increase/Decrease2008percentages
2007percentages
2006percentages
2005percentages
-Total Noncurrent
liability
78.8 55.9 57.664
Term FinanceCertificates -Secured
46.0 6.4 1.08 0
Long TermFinances 3.6 12.7 23.6 20
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Equity AnalysisIncrease or decrease Equity Why Equity increase/Decrease
The company instead ofpaying the loan backconverting them intoordinary share.
In graph as we can see
finance cost decreaseresult in increase inEquity.
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Operating ActivityProfit before working capital
Why Operating ActivityIncrease/Decrease
Depreciationincreasing rapidlybecause thecompany isinvesting more infixed asset
Provision for debt isincreasing becausethey are givingmuch stuff oncredit to increase
sales
Finance costaccrued isincreasing.
208^207 207^206 206^205perating profits ( . )2 3 ( . )0 2 102
rofit beforeorking capital .1 .7 98
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Operating ActivityProfit before working capital
208^207 207^206 206^205
Depreciation 18.5 31 93.1mortization( +ntangible deffere +ost Transactional
)ost
50.1 (66.8) 100
Finance Cost accrued 31.9 23.8 84
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Change in Working CapitalProfit before working capital
Why Working CapitalIncrease/Decrease
The negative signshows that themost of thecurrent assets areincreasing at
higher speed
The 2006 barincrease morerapidly becausethe increase in
inventory is 98%.So increase ininventory meansdecrease in cash
208^207 207^206 206^205
Total change incapital
34.2 (87) (132 )
tock in trade .1 3 .7 7 98ra de d ebt .18 .1 9 ( . )7 2
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Change in Working CapitalProfit before working capital
2008v2007 2006v2007 2006v2005Sales .3 ( ) 84
tock in trade .1 3 .7 7 98
Why Working CapitalIncrease/Decrease
Firstly the inventorylevel is related toSales. In worldcallcase the sales isnot increasing butinventory is
increasing.
They are facingdifficulty due topoor Marketing oftheir product and
competition
Forecasting methodof sales isincorrect
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Net cash from operating activitiesDividend, Interest and Tax
2008v2007 2006v2007 2006v2005i na nc e c os tpaid 96.4 (95.4) 84.6ax paid 28.9 32.8 97
Finance cost .6 4 ( . )5 4 .4 6Finance costaccrued
31.9 23.8 84
Tax paid is decreasing
because they arenot having much ofa profit
The finance cost paiddecrease notbecause they retire
their debt. Becausethey increasing theliability side
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Investing activitiesInvestment in Assets
2008v2007 2006v2007 2006v2005 2005Fixed capitalexpenditure
(14.8) 37.7 4.5
Intangibleassets
(1,231,197)
Total Changein investments
(2,312,057) (2,151,748) (1824759) (3,000,776)
WhyInvestmentsIncrease/Dec
rease
The investment inFixed assetsincrease becausethey have to buildinfrastructure tocover the area.
Worldcall invested inIntangible assets in2005 only in otheryears theinvestment isnegligible
They invested soheavily in fixedassets that whyTotal change ininvestment is innegative.
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Financing activitiesLong Term Debt and Share Capital
2008v2007 2006v2007 2006v2005 2005Receipt of longterm finance
97.7 % (97) % 61.8 %
Repayment oflong termfinance
82.8 % 76.1 % 86 %
Total Cashfrom
financing
activity
2,030,930 (238,848) 1854416(200)
3,124,529
Why FinancingIncrease/Decrease
Share capital has noeffect becausethey areconverting theirexisting debt intoshares and it is a
non cashtransaction andthey cancel outeach other effect.
The worldcallgrowth is not
sustainable. Theyhave to expand tostay in thebusiness. Theydidnt have theresources So theyare expandingthrough debt.
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Financing activitiesLong Term Debt and Share Capital
2008v2007 2006v2007 2006v2005 2005Receipt of longterm finance
97.7 % (97) % 61.8 %
Repayment oflong term finance
82.8 % 76.1 % 86 %
Total Cashfrom financing
activity
2,030,930 (238,848) 1854416 3,124,529
Why Financing
Increase/Decrease
The total cash fromfinancing activitydecrease in 2007because the long
term financeacquired is lessthen repayment oflong term debt.
Share capital issuedis zero in both
2007 and 2008.
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Show me the moneyNet cash in hand
2007V2008 2006V2007 2005V2006Net Increase ordecrease in cash
165 (413) (32)
Total cash in hand 2127 (97) 109
Cash from mergedentity
252315
Why CashIncrease/Decrease
The total cash isdecreasing from2005 to 2007 andstabilize in 2008because of lowerinvestment.
Total net cashincreased from2005 to 2007. Notbecause of thecash added fromthe previous years.
Because of thecash added bymerged entity. Notfrom the actualoperation of thecompany.
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THANKS FOR LISTENING