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Financial Analysis of Attock Cement Pakistan Ltd.
A Project OnAnalysis of Financial statements of
Attock Cement Pakistan
Limited
Submitted to:Sir Arif Malik
Submitted by:Qamar Iqbal khan
REG NO: (3712)MBA 2o A
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Financial Analysis of Attock Cement Pakistan Ltd.
Preface
As the world is growing rapidly, the businesses arealso moving to become the huge one. And by thatresult, more and more people want to become amaster in these businesses. The main purpose inthe finance field is to know how the financialanalysis is done. We all know that finance is theblood of any business and without it no businesscan run. Financial analysis of a company is verydifficult and the most important task and by doingthis I am able to know the whole financial positionand financial structure of the company.Simply by looking at how much cash a companyhas does not provide enough information. Thefinancial statements need to be analyzed to
measure a companys performance and tocompare it with other firms in the same industry.The resulting information is intended to be usefulto owners, potential investors, creditors, analysts,and others as the analysis evaluates the pastperformance, future potential and financial positionof the firm.
This report is an analysis of financial statements ofATTOCK CEMENT PAKISTAN Ltd.This report has beenprepared with an objective to develop analyticalskills required to interpret the information (explicitas well as implicit) provided by the financial
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Financial Analysis of Attock Cement Pakistan Ltd.
statements and to measure the companysperformance during the past few years. Thefinancial statements are analyzed using traditional
evaluation techniques such as horizontal analysis,vertical analysis and trend analysis. Ratios are animportant tool in analyzing the financial statements& the companys profitability, solvency & liquidity.Sincere attempts have been made to make thisreport error free but if any errors and omissions arefound then I apologize for that.
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Financial Analysis of Attock Cement Pakistan Ltd.
Acknowledgement
In the name of Allah, the mostbeneficent and merciful who
gave us strength and knowledgeto complete this report. Thisreport is a part of our courseFinancial Statement Analysis.This has proved to be a great
experience. We would like toexpress our gratitude to ourFinance teacher Sir. ARIF MALIKwho gave us this opportunity tofulfill this report. We would alsolike to thank our colleagues whoparticipated in a focus groupsession. They gave us many
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helpful comments which helpedus a lot in preparing our report.
Table of Contents....................................................................................................................................................1Preface........................................................................................................................................ 2
Acknowledgement .......................................................................................................................4............................................................................................................................................... 5
Table of Contents........................................................................................................................ 5Overview of income statement.....................................................................................................7Overview of Balance sheet..........................................................................................................7
Liquidity Position with Graphical Presentation..............................................................................8Liquidity Position...................................................................................................................... 8Liquidity Ratios......................................................................................................................... 9............................................................................................................................................... 15Activity Ratios.........................................................................................................................15Operating Cycle......................................................................................................................16Debt Ratios............................................................................................................................ 16Profitability Ratios...................................................................................................................17
Profitability - Financial Year 2002 to Financial Year 2008 ..................................................19Profitability Ratios...................................................................................................................19
Assets Utilization.................................................................................................................... 21Assets Utilization.................................................................................................................... 23
Return on Investment............................................................................................................. 26Return on total equity..........................................................................................................26
Investment Ratios...................................................................................................................27Investment Ratios...................................................................................................................28Investment Ratios...................................................................................................................29Long Term Debt Paying Ability...............................................................................................33
DuPont Analysis ........................................................................................................................36Annexure................................................................................................................................... 37
Summarized Income Statement.............................................................................................37
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Summarized Balance Sheet................................................................................................... 41Horizontal Analysis of Income Statements.............................................................................42Vertical Analysis of Income Statements.................................................................................42Horizontal Analysis of Balance Sheet..................................................................................... 43Vertical analysis of balance sheet..........................................................................................44.............................................................................................................................................. 47
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Financial Analysis of Attock Cement Pakistan Ltd.
Introduction:
Attock Cement Pakistan Limited (ACPL) was incorporated in 1981 as a public
limited company and has been listed on the Karachi Stock Exchange since June 2002.
The Attock Cement project was a Pak Saudi venture and after completion, it started
commercial production on June1, 1988.
Overview of income statement
Overview of Income statement 2008 2007 2006 2005 2004
Sales 12,445,996 6,419,625 7,955,665 5,279,560 3,882,756
Cost of sales -10,530,723-
4,387,640-
3,992,822-
3,330,769-
2,497,262
Gross profit 1,915,273 2,031,985 3,962,843 1,948,791 1,385,494
Administrative expenses -111,658 -104,169 -121,953 -76,480 -68,645
Selling and distribution expenses -561,465 -65,122 -34,352 -60,905 -38,560
Other operating expenses -581,913 (139,721 -191,850 -93,786 -61,735
Other operating income 847,344 479,420 294,114 707,692 128,462
Profit from operations 1,507,581 2,202,393 3,908,802 2,425,312 1,345,016
Finance cost -1,749,837 -467,759 -450,696 -304,041 -224,601
Share of loss of associated companies -8,674 -14,163 -9,573
Profit\ Loss before tax -250,930 1,720,471 3,448,533 2,121,271 1,120,415
Taxation 197,700 -98,000-
1,030,078-439,193 -325,922
Profit\ Loss for the year -53,230 1,622,471 2,418,455 1,682,078 794,493
Basic earnings per share Rupees -0.21 6.43 10.37 9.12 4.31Diluted earnings per share 6.43 9.14 7.82 3.78
Overview of Balance sheet
Overview of Balance sheet 2008 2007 2006 2005 2004
Capital and Reserve30528440 33923185 19268200 9317998 6317055
Non-current Liabilities 10250352 10430917 9020740 5642649 3020575
Current Liabilities 12899306 7390229 6015436 3055858 2376989
Assets
Non-current Assets 33835927 32529377 24394481 13819736 8833476
Current Assets 19842171 19214954 9909895 4196769 2881143
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Financial Analysis of Attock Cement Pakistan Ltd.
Liquidity Position with Graphical Presentation
Liquidity Position
Liquidity Position 2008 2007 2006 2005 2004Current Ratio 1.54 2.60 1.65 1.37 1.21Acid Test Ratio 1.22 2.33 1.44 0.96 0.64
Cash Ratio 1.18 2.31 1.43 0.94 0.62
0
0.5
1
1.5
2
2.5
3
2008 2007 2006 2005 2004
current ratio
acid test ratio
cash ratio
The liquidity position of deteriorated during the first nine months of FY'09. This was due to a40% decrease in current assets and a 14% increase in current liabilities if the company. Thecurrent liabilities of the company increased due to 14% rise in trade payables, 61% increase inaccrued markup and around 7% increase in short term borrowing by the company.
On the other hand, current assets of the company declined due to decrease in investments fromRs 15 billion at the end of FY08 to Rs 7 billion at the end of March FY09. Also the cash andbank balance of the company decreased by 22%. Thus, decrease in current assets and acorresponding increase in current liabilities resulted in a less favorable liquidity position ascompared to that in FY08.'s liquidity stance had been strengthening since FY04 and in FY07 its liquidity position was themost favorable. The increase in current assets had brought about this change. There was a98% increase in short term investments. Furthermore, the cash and bank balances had alsorisen considerably.In FY08 the current assets of the company declined slightly but a 63% rise in current liabilitiescaused a decrease in the liquidity of the company. Investments constitute nearly 79% of thecompany's total current assets and they declined by 11% in FY08. The investments decreased
further from Rs 15 billion at year-end FY08 to Rs 10.9 billion by end of 1Q09.
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Financial Analysis of Attock Cement Pakistan Ltd.
Liquidity Ratios
1. Days, Sales in Receivables = Gross Receivables/Net Sales/365
Year Calculation in (Rupees,000)
Days, Sales in
Receivables2008 463446/12464347/365 13.57days2007 144245/6419625/365 8.202006 74165/7955665/365 3.40
2005 76238/5279560/365 5.27
2004 52622/3882756/365 4.95
0
2
4
6
8
10
12
14
2004 2006 2008
Day sales Rec
2. Account Receivables Turnover =Net Sales /Average Gross Receivables
Year Calculation in (Rupees,000)Account Receivables
Turnover
2008 12464347/30384550 41.02times2007 6419625/109205 58.782006 7955665/75201.50 105.792005 5279560/64430 81.44
2004 3882756/52622 73.78
0
20
40
60
80
100
120
2004 2005 2006 2007 2008
ARTO
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Financial Analysis of Attock Cement Pakistan Ltd.
3. Account Receivables turnover in days =Average Gross Receivables/Net Sales/365
Year Calculation in (Rupees000)Account Receivables
turnover in days
2008 30384.50/12464347/365 8.89days
2007 109205/6419625/365 6.202006 75201.50/7955665/365 3.452005 64430/5279560/365 4.45
2004 52622/3882756/365 4.95
0
2
4
6
8
10
2004 2006 2008
ARTO.Days
4. Days Sales in Inventory =Ending Inventory/Cost of Goods sold /365
Year Calculation (Rupees000) Days Sales in Inventory
2008 1300325/10528046/365 45.08 days2007 295140/4387640/365 24.55 days
2006 226286/3992822/365 20.68 days2005 100994/3330769/365 11.07 days
2004 298538/2497262/365 43.63 days
0
10
20
30
40
50
2004 2005 2006 2007 2008
DSI
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Financial Analysis of Attock Cement Pakistan Ltd.
4. Inventory turnover = Cost of Goods sold/Average Inventory
Year Calculation (Rupees000) Inventory turnover
2008 10528046/797732.5 13.19times2007 4387640/260713 16.832006 3992822/163640 24.40
2005 3330769/199766 16.672004 2497262/298538 8.36
0
5
10
15
20
25
2004 2005 2006 2007 2008
ITO
5. Inventory Turnover in Days =Average inventory /cost of goods sold /365
Year Calculation (Rupees000) Inventory turnover in days
2008 797732.5/10528046/365 27.66 days2007 260713/4387640/365 21.692006 163640/3992822/365 14.962005 199766/3330769/365 21.89
2004 298538/2497262/365 43.63
0
10
20
30
40
50
2004 2005 2006 2007 2008
ITO.Days
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Financial Analysis of Attock Cement Pakistan Ltd.
07. Operating cycle = Account Receivables turnover in days + inventory turnover in days
Year Calculation O.C
2008 8.89+27.66 36.55 days
2007 6.20+21.69 27.89
2006 3.45+14.96 18.412005 4.45+21.89 26.34
2004 4.95+43.63 48.58
0
10
20
30
40
50
2004 2005 2006 2007 2008
O.C
08. Working Capital = Current Assets Current Liabilities (Amount in Rupees000)
Years Current assets Current Liabilities W.C
2008 19842171 12899306 69428652007 19214954 7390229 11824725
2006 9909895 6015436 3894459
2005 4196769 3055858 11409112004 2881143 2376989 504154
0
2000000
4000000
6000000
8000000
10000000
12000000
2004 2005 2006 2007 2008
W.C
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Financial Analysis of Attock Cement Pakistan Ltd.
09. Current Ratio= Current Assets/Current Liabilities
Year Calculation in (Rupees000) Current Ratio
2008 19842171/12899306 1.54:12007 19214954/7390229 2.60:12006 9909895/6015436 1.65:1
2005 4196769/3055858 1.37:12004 2881143/2376989 1.21:1
0
0.5
1
1.5
2
2.5
3
2004 2005 2006 2007 2008
C.R
10. Quick Ratio= (Cash Equivalent + Marketable Securities+ Net Receivables)/CurrentLiabilities
Year Calculation in (Rupees000) Quick Ratio
2008 (244080+15082605+463446)/12899306 1.22:12007 (116173+16933790+144245)/7390229 2.33:1
2006 (7235749+502387+969891)/8429327 1.44:12005 (6931615+67244)/6344831 0.96:1
2004 (5078613+5503)/4524698 0.64:1
0
0.5
1
1.5
2
2.5
2004 2006 2008
Quick Ratio
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Financial Analysis of Attock Cement Pakistan Ltd.
11. Cash Ratio =Cash Equivalent +Marketable Securities /Current liabilities
Year Calculation in (Rupees000) Cash Ratio2008 (244080+185082605)/12899306 1.182007 (116173+16933790)/7390229 2.312006 (77167+8543763)/6015436 1.432005 5279560/822532.50 6.42
2004 3882756/504154 7.70
0
1
2
3
4
5
6
7
8
2004 2005 2006 2007 2008
East
12. Sales to Working Capital = Sales/Average Working Capital
Year Calculation in (Rupees000) Sales to Working Capital
2008 12464347/9383795 1.33times2007 6419625/7859592 0.822006 7955665/2517685 3.172005 5279560/82253.20 6.42
2004 3882756/504154 7.70
s
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Financial Analysis of Attock Cement Pakistan Ltd.
0
20
40
60
80
100
120
2004 2006 2008
DSR
ARTO
ARTO Days
Activity Ratios
Activity Ratios 2008 2007 2006 2005 2004
Days Sales inReceivables
13.57 days 8.20 days 3.40 days 5.27 days 4.95 days
Account
ReceivablesTurnover
41.02 times
58.78
times 105.79 times 81.94 times
73.78
times
AccountReceivablesTurnover in Days
8.89 days 6.20 days 3.45 days 4.45 days 4.94 days
ActivityRatio
150
20
40
60
80
100
120
2008 2007 2006 2005 2004
days sales in
receivables
A/R turnover
A/R turnover in days
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Financial Analysis of Attock Cement Pakistan Ltd.
InventoryTurnover indays
27.66 days 21.69 days 14.96 days 21.89 days 43.63 days
InventoryTurnover
13.19 times 16.83 times 24.40 times 16.67 times 8.36 times
Days Salesin Inventory
45.08 days 24.55 days 20.68 days 11.07 days 43.63 days
Operating Cycle
ActivityRatio
2008 2007 2006 2005 2004
OperatingCycle 36.55days 27.89 days 18.41 days 26.34 days 48.58 days
0
10
20
30
40
50
60
2008 2007 2006 2005 2004
operating cycle
Debt Ratios
Debt Ratios 2008 2007 2006 2005 2004
Debt to Tangible net worth 77 52 78 93 85
Debt To Equity Ratio 76 53 78 93 85
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Financial Analysis of Attock Cement Pakistan Ltd.
Debt Ratio 43 34 44 48 46
0
50
100
150
200
250
2008 2007 2006 2005 2004
debt to tangible networth
debt/equity ratio
debt ratio
The debt management ratios of showed a positive trend during FY07. The debt to asset andequity ratios as well as the long-term debt ratio all receded during the period and this reflected areduction in the company's dependence on debt financing. However, during FY08 the debtratios of the company rose because the total debt increased in FY08 mainly due to a 63%increase in the current liabilities which form 55% of the total debt.
Long term debt however decreased. The long term debt to equity increased because of adecline in the equity base due to fall in reserves. The TIE ratio continued to fall in FY08 againsta positive trend that prevailed before FY07. The reason is substantial rise in finance chargesdue to high interest rates in the economy.
Also the operating income in FY08 decreased, thus reducing the extent to which operatingincome can decline before the firm is rendered unable to meet its interest costs. Due to thelosses that ACPL experienced in FY08 and the decrease in profitability during July-March FY09,its Earning per Share (EPS) and Price to Earning (P/E) Ratio have been negative. During July-May 2009 the share price averaged around Rs 31.1.This shows that the dismal profits of the company have started reflecting in the low investorconfidence and falling share price. The average share price of had hovered around Rs100/share except during the fourth quarter of FY08 when share price fell well below theaverage. The management did not recommend any dividend for FY08 due to the dismalprofitability situation in the period.
Profitability Ratios
Profitability Ratios 2008 2007 2006 2005 2004
Gross Profit Margin 15 32 49 37 36
Operating Profit Margin 12 34 49 46 35
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Financial Analysis of Attock Cement Pakistan Ltd.
Net Profit Margin 7.84 25 31 31 20
0
20
40
60
80
100
120
140
2008 2007 2006 2005 2004
gross profit margin
operating income
magin
net profit margin
After experiencing declining profitability during FY08, the cement sector came back strongly topost a growth of 167% in earnings during first quarter (July-September) of fiscal year 2009. Thecement sector posted profit after taxation of Rs 1.3 billion in first quarter of FY09 as comparedto Rs 500 million in the corresponding period of a year earlier.This growth was mainly due to higher local retention prices and depreciation of the rupeeagainst the dollar that resulted in an increase of rupee-based export sales. The net sales of thecement sector in the period July-March FY09 was 58% higher than the net sales generatedduring the corresponding period of FY08. It is believed that the profits of cement companies
increased due to an arrangement among them to keep prices high in the local market.However, higher sales revenue could not be translated into an increase in profits during theperiod. Increased costs of sales, operating expenses and finance expenses caused theprofitability of to remain low during July-March FY09. The cost of sales of the companyincreased by 30% during the period and resulted in a gross profit of Rs 3,733 million.The furnace oil/coal costs for the period July-March FY09 was Rs 5,258.6 million as comparedto Rs 3,095.7 million during the corresponding period of FY08. The electricity and gas costswere lower, however, the cost of raw material and packing material consumed increased by12%. The administration expenses increased by 31% while the selling & distribution expensesincreased drastically by 456% (from Rs 246 million in July-March FY08 to Rs 1,370 million inJuly-March FY09).Selling expenses may have increased due to higher transportation costs involved with exports
and higher fuel costs. Also, the finance costs increased substantially by 77% as interest ratesrose owing to tight monetary policy and liquidity crunch in the market.These rising costs greatly hampered the profitability of the company and resulted in a profit aftertaxation of Rs 321 million in the period July-March FY09, which is 34% lower than the profit (Rs487 million) during July-March FY08. Therefore, the earning per share (EPS) of the companydeclined from Rs 1.92 in July-March FY08 to Rs 1.27.
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Financial Analysis of Attock Cement Pakistan Ltd.
Profitability - Financial Year 2002 to Financial Year 2008
The profitability ratios of the company have shown a declining trend since after FY05. The grossprofit margin increased in FY06 only to fall in FY07 and FY08. The profit margin of the companyhas decreased continuously along with return on assets (ROA) and return on equity (ROE).
The profit after taxation had declined by 33% in FY07 due to lower net retention prices causedby a supply overhang in the overall industry. Also the problem of rising input costs had begun inFY07. This rise in cost of production and raw material have continued into FY08 and furtheraggravated, causing the declining trend of the profitability of.Despite a strong growth in cement dispatches, the cement sector experienced decliningprofitability during FY08. The profitability of the sector fell by 73.6% to Rs 562 million till March2008 from Rs 2,133 million in the corresponding period of FY07. Although the sales volume ofthe cement companies increased, the net sales revenue did not increase to an equal extent dueto decrease in net retention prices in the sector.Over the years all cement manufacturers undertook huge capacity expansion plans. Thiscreated a situation of excess supply in the market. Companies resorted to price wars leading toa fall in prices and reduced the profit margins for the companies. The average cement price
during the period July-March FY08 was Rs 128.3 per bag as compared to Rs 133.6 per bag inthe same period in FY07.Similar was the case with. Increased production facilitated higher sales volume which in turntranslated into almost doubling of sales revenue in FY08. The company had earned the highestsales revenue of Rs 12.445 billion in FY08. However, despite this, the gross profit of in FY08(amounting to Rs 1.9 billion) was around 6% lower than the gross profit posted in FY07 (Rs 2.0billion).The reason for lower gross profit was a 140% increase in the cost of sales during the fiscal year.Major input costs increased and dampened the profitability of ACPL and resulted in a loss aftertaxation of Rs 53.230 million in FY08 against a profit after taxation of Rs 1.622 billion in FY07.The cement manufacturers in the industry were faced with rising fuel and power costs duringFY08.The cost of production for the cement companies went up due to rise in the prices of importedcoal. The cement companies in Pakistan have shifted from oil to coal or gas during the past fewyears. Coal is now used as a basic fuel by all cement manufacturers. Pakistan has hugereserves of coal, but cement companies are compelled to import it, as local coal has highsulphur content.Crude oil prices shot up during FY08 and had its impact on prices of coal and natural gas. Therise in the costs of international coal prices has been one of the biggest reasons behind thedampening of gross margins of cement companies during FY08. There was a nearly 50% rise inthe coal prices in FY0
Along with the hike in the international coal prices, the depreciation of the rupee against thedollar also added to the cost of importing coal. Finance charges rose due to higher interestrates, long term finances, short term borrowing and inclusion of workers' profit participation fundin FY08.
Profitability Ratios
1. Net Profit Margin= Net Income before minority share of Earnings and NonRecurring Items /Net Sales
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Year Calculation in (Rupees 000) Net Profit Margin
2008 97753/12464347 7.84%2007 1636634/6419625 252006 2428028/7955665 312005 1682078/5279560 31
2004 794493/3882756 20
0
5
10
15
20
25
30
35
2004 2005 2006 2007 2008
NPM
2. Total Asset Turnover = Net Sales/Average total Assets
Year Calculation in (Rupees 000) Total Assets Turnover
2008 12464347/52711214.50 24 Times2007 6419625/43024353.50 152006 7955665/10723490.50 74
2005 5279560/14865562 35
2004 3882756/11714619 33
0
10
20
30
40
50
60
70
80
2004 2005 2006 2007 2008
Asset TO
3. Return on Assets =Net Income before minority shares of earning and nonrecurringitems /Average total Assets
Year Calculation in (Rupees 000) Return on Assets
2008 97753/52711214.50 18.5%2007 1636634/43024353.50 3.8
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2006 2428028/10723490.50 23
2005 1682078/14865562 11
2004 794493/11714619 6.8
0
5
10
15
20
25
2004 2005 2006 2007 2008
ROA
4. Operating income Margin = Operating Income/Net Sales
Year Calculation in (Rupees 000) Operating IncomeMargin
2008 1513505/12464347 12%2007 2202393/6419625 342006 3908802/7955665 49
2005 2425312/5279560 46
2004 1345016/3882756 35
0
10
20
30
40
50
2004 2005 2006 2007 2008
OIM
Assets Utilization
Asset Utilization 2008 2007 2006 2005 2004
Sales to Fixed Assets 54 43 108 80 62Return on OperatingAssets
24 33 10 13 11
Operating Assetturnover
20 9.6 20 28 33
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Financial Analysis of Attock Cement Pakistan Ltd.
Return on Assets 18.5 3.8 23 11 6.60
0
50
100
150
200
250
2008 2007 2006 2005 2004
sales to fixed assets
return on operating
assets
operating assets
turnover
return on assets
total asset turnover
The performance of in terms of asset management was weak during FY07. During the year, theinventory turnover (days) of the company more than doubled compared to FY06 when themanagement of inventory seemed most efficient (evident from the lowest inventory turnover indays). This could be traced back to lower sales revenue for the period, coupled with a higherstock of inventory.
At the same time, the average time taken by the company to recover cash from sales alsoincreased. The increase in inventory turnover in days and Days sales outstanding (DSO)prolonged the operating cycle of the company in FY07.
However, in FY08 the asset management of ACPL improved as the inventory turnover rateincreased because the company earned sales revenue more in proportion to the increase ininventory. Thus the days to convert inventory into sales became less (from approx. 100 days inFY07 to 79 days in FY08).
Although the days to convert sales into cash (DSO) increased slightly, the substantial decreasein ITO (days) led to the shortening of the operating cycle in FY08. The days sales outstandingwas higher because the trade debt increased substantially (by 153%) during FY08 as againstsales.Besides this the sales to equity and total asset turnover of the company which had a decliningtrend till FY07 increased in FY08. The sales to equity ratio had been decreasing because of an
increase in the paid up capital. But the trend was reversed in FY08 because the paid up capitalremained same while the reserves fell, causing a decrease in the equity base of the company.
Also higher growth in sales increased the sales/equity ratio. Total asset turnover also improvedbecause the management of the company's assets was effective in generating higher salesrevenue. The company's performance in the area has improved as full-scale production fromthe newly inaugurated Khairpur plant has augmented the sales.
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Financial Analysis of Attock Cement Pakistan Ltd.
Assets Utilization
1. Operating Asset Turnover=Net Sales /Average Operating Assets
Year Calculation in (Rupees 000) OperatingAsset turnover
2008 12464347/5367098-(6592332+524176+15082605+427832) 0.20times2007 6419625/51744331-(8174474+196913+16933790+229315) 0.096times2006 7955665/34304376-(4482213+335810+152465+8543763) 0.20times2005 5279560/18016505-(2610634+271428+2769134+121486) 0.28times
2004 3882756/11714619-(1387681+25021+1386816+120329) 0.33times
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
2004 2006 2008
OP.ASSET TO
2. Return on Operating Assets = operating income/Net sales
Year Calculation in (Rupees 000)Return on Operating
Assets2008 1513505/63120379 24%2007 22023 9 3/ 66879875 3.3
2006 3908802/38854201 10
2005 2425312/18567919 13
2004 13455016/11859104 11
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Financial Analysis of Attock Cement Pakistan Ltd.
0
5
10
15
20
25
2004 2006 2008
R on OP. A
3. Sales to Fixed Assets =Net Sales /Average Net fixed Assets(Exclude constructionin progress)
YearCalculation in (Rupees 000) Sales to Fixed Assets
2008 12464347/(24231112+22250927)/2 54%2007 6419625/(7816781++22250927)/2 432006 7955665/(7816781+6954499)/2 1082005 5279560/(6954499+6294666)/2 80
2004 3882756/6294666 62
0
20
40
60
80
100
120
2004 2005 2006 2007 2008
sales/Fix
Assets
4. 8.Return on Investment =Net Income before minority share of earning and nonrecurring items + (Interest expense)*(1-tax rate)
Year Calculation in (Rupees 000) Return on Investment
2008 97753+1766298*0.65/42566447 2.92%2007 1636634+468173*0.65/3632152 5.342006 2428028+450696*0.65/21624793.50 12.582005 1682078+304041*0.65/12149138.50 15.47
2004 794493+224601*0.65/9337630 10.07
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0
2
46
8
10
12
14
16
2004 2005 2006 2007 2008
ROI
5. 9.Return on total equity =Net Income before nonrecurring items-Dividend onredeemable preferred stock/Average total equity
Year Calculation in (Rupees 000) Return on total equity
2008 97753/(30528440+33923185)/2 0.30%2007 1636634/(33923185+19268200)/2 0.372006 2428028/(19268200+9317998)/2 0.172005 1682078/(9317998+6317055)/2 0.22
2004 794493/6317055 0.13
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
2004 2005 2006 2007 2008
R on T. Eq
6. 11.Gross profit margin=Gross profit/Net sales
Year Calculation in (Rupees 000) Gross profit margin
2008 1936301/12464347 15.53%2007 2031985/6419625 31.652006 3962843/7955665 49.812005 1948791/5279560 36.91
2004 1385494/3882756 35.68
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0
10
20
30
40
50
2004 2005 2006 2007 2008
East
Return on Investment
Return on total equity
ReturnRatios
2008 2007 2006 2005 2004
Return onInvestment
2.92 5.34 12.58 15.47 10.07
Return onTotal Equity
0.30 0.37 17 22 13
0
5
10
15
20
25
2008 2007 2006 2005 2004
Return on investment
Return on total equity
One of the most important profitability metrics is return on equity [or ROE for short]. Return onequity reveals how much profit a company earned in comparison to the total amount ofshareholder equity found on the balance sheet. If you think back to lesson three, you willremember that shareholder equity is equal to total assets minus total liabilities. It's what theshareholders "own". Shareholder equity is a creation of accounting that represents the assetscreated by the retained earnings of the business and the paid-in capital of the owners. The
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Financial Analysis of Attock Cement Pakistan Ltd.
return on Equity has decreased drastically and there is quite a hell of decrement in ROE, whichis not very much encouraging for the investors in shares.
Investment Ratios
Degree of financial leverage
Earning per common shares
Price earning ratio
Investment ratios2008 2007 2006 2005 2004
Degree of financial leverage15.48 1.27 1.13 1.14 1.20
Earning per common shares0.017 0.60 0.10 0.76 0.35
Price earning ratio258.08 4.81 3.38 3.96 8.19
0%
20%
40%
60%
80%
100%
2008 2007 2006 2005 2004
Price earning ratio
Earning per
common shares
Degree of financialleverage
A leverage ratio summarizing the affect a particular amount of financial leverage has on acompany's earnings per share (EPS). Financial leverage involves using fixed costs to financethe firm, and will include higher expenses before interest and taxes (EBIT). The higher thedegree of financial leverage, the more volatile EPS will be, all other things remaining the same.Most likely, the firm under evaluation will be trying to optimize EPS, and this ratio can be used tohelp determine the most appropriate level of financial leverage to use to achieve that goal.The companys ratio ha increased dramatically in the year 2008 by 15 times. So there is quite amargin for company to get leveraged.
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Financial Analysis of Attock Cement Pakistan Ltd.
0
10
20
30
40
50
60
2008 2007 2006 2005 2004
Dividend payout ratio
Dividend yield ratio
Book value per share
Indicates the proportion of earnings that are used to pay dividends to shareholders.A reduction in dividends paid is looked poorly upon by investors, and the stock price usuallydepreciates as investors seek other dividend paying stocks.
A stable dividend payout ratio indicates a solid dividend policy by the company's board of
directors. The situation of ATTOCK CEMENT Pakistan. Ltd. Shows increment in 2006 but fromthere is consistent decrement in this ratio by more than two times so company is trying to buildthere retained earnings instead of giving dividend.During bull markets the stock price is more likely to trade significantly higher than book value,and in a bear market the two values may be close to equal.The dividend yield or the dividend-price ratio on a company stock is the company's annual dividend payments divided by itsmarket cap, or the dividend per share divided by the price per share. It is often expressed as apercentage. There is quite fluctuations in this ratio which shows there is lack of stability in thecompany policy towards this section.Now if we look at the book value per share, as we know that somewhat similar to the earnings per share,but it relates the stockholder's equity to the number of shares outstanding, giving the shares araw value. Comparing the market value to the book value can indicate whether or not the stock
in overvalued or undervalued. During bull markets the stock price is more likely to tradesignificantly higher than book value, and in a bear market the two values may be close to equal.
Investment Ratios
1. Degree of financial Leverage=EBIT/Earnings before tax
Year Calculation in (Rupees 000)Degree of financial
leverage
2008 1513505/175273+8674-86194 15.48%2007 2202807/1720471+14163 1.272006 3908802/3448533+9573 1.132005 2425312/2121271 1.14
2004 1345016/1120415 1.20
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0
2
46
8
10
12
14
16
2004 2005 2006 2007 2008
DFL
2. 2.Earnings per common share=Net income-preferred dividend/Weighted Averageno. of common share outstanding
Year Calculation in (Rupees 000)Earnings per common
share
2008 25685/252485315 0.017%2007 1622471-103324/252485315 0.602006 2418455-73772/2332578650 0.102005 1682078-329/219744584 0.76
2004 794493-20049/219744584 0.35
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
2004 2005 2006 2007 2008
EPS
3. Price/Earning ratio=Market price per share/Diluted earning per share
Year Calculation in (Rupees 000) Price/Earning ratio
2008 30.97/0.12 258.082007 30.97/6.43 4.812006 30.97/9.14 3.382005 30.97/7.82 3.96
2004 30.97/3.78 8.19
4. Percentage of Retained earning=Net income-All dividend/Net income
Year Calculation in (Rupees 000)Percentage of retained
Earning
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Financial Analysis of Attock Cement Pakistan Ltd.
2008 25685-379093/25685 -13.762007 1622471-344743/1622471 0.792006 2418455-275478/2418455 0.882005 1682078-250705/1682078 0.85
2004 794493-138374/794493 0.83
-14
-12
-10
-8
-6
-4
-2
0
2
2004 2006 2008
% earnings
ret.
5. Dividend payout=Dividend per common share/Diluted earning per share
Year Calculation in (Rupees 000) Dividend payout
2008 (379093000/158934068)/0.12 19.832007 (344743-103324/158934068)/6.43 23.62
2006 (275478-73772/112835676)/9.14 48.312005 (250705-329/112835676)/7.82 28.37
2004 (13874-20049/112835676)/3.78 27.74
0
10
20
30
40
50
2004 2005 2006 2007 2008
Div P/O
6. Dividend yield= Dividend per common share/Market price per common share
Year Calculation in (Rupees 000) Dividend yield
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Financial Analysis of Attock Cement Pakistan Ltd.
2008 (379093000/158934068)/30.97 7.68%2007 (344743-103324/158934068)/30.97 4.902006 (275478-73772/112835676)/30.97 14.232005 (250705-329/112835676)/30.97 7.17
2004 (13874-20049/112835676)/30.97 3.38
0
2
4
6
8
10
12
14
16
2004 2005 2006 2007 2008
Div Yield
7. Book value per share=Total stockholders equity-preferred stock equity/Number ofcommon share outstanding
Year Calculation in (Rupees 000) Book value per share
2008 30528440-746071/158934068 18.74%
2007 33923185-746071/158934068 20.872006 19268200-515580/112835676 16.622005 9317998-515580/112835676 7.80
2004 6317055-347949/112835676 5.29
0
5
10
15
20
25
2004 2005 2006 2007 2008
B.V/Share
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Financial Analysis of Attock Cement Pakistan Ltd.
0
0.5
1
1.5
2
2.5
3
2004 2005 2006 2007 2008
FCC
3. Debt Ratio =Total Liabilities/Total Assets
Year Calculation in (Rupees000 ) Fixed Charge coverage
2008 23149658/53678098 43%2007 17821146/51744331 34%2006 15036176/34304376 44%
2005 8698507/9317998 93%2004 5397564/6317055 85%
0
20
40
60
80
100
2004 2005 2006 2007 2008
Debt ratio
4. Debt Equity Ratio=Total Liabilities/Shareholders Equity
Year Calculation in (Rupees000) Debt Equity Ratio
2008 23149658/30528440 76%2007 17821146/33923185 532006 15036176/19268200 782005 8698507/9317998 93
2004 5397564/6317055 85
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0
20
40
60
80
100
2004 2005 2006 2007 2008
Debt/Eq
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Financial Analysis of Attock Cement Pakistan Ltd.
DuPont Analysis
DuPont Return on Assets=Net profit margin*Total assets turnover
Year Calculation in (Rupees,000)Dupont Return on
Assets
2008 7.84*0.24 1.88
2007 0.25*0.15 3.75
2006 0.31*0.74 22.94
2005 0.31*0.35 10.852004 0.20*0.33 6.60s
DuPont return on Assets has a decreasing trend. In 2008 net profit of co decrease due to highcost of goods sold. Co does not utilize its assets properly in 2008. In 2007 trend of this ratio isgood. But in last 3 years it also has increasing trend.
0
5
10
15
20
25
2004 2006 2008
Dupont ROA
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Financial Analysis of Attock Cement Pakistan Ltd.
Annexure
Summarized Income Statement
Summarized IncomeStatement
2008Rs.In000
2007Rs.In000
2006Rs.in000
2005Rs.In000
2004Rs.In 000
Sales NetLocal SalesExport SalesLess.Excise DutySpecial Excised Duty
Sales taxCommission to stockiestSales Net-.Cost of SalesRaw and Packing materialusedSalaries and WagesElectricity and GasFurnace oilStores and Spares usedRepair and maintenanceInsuranceDeprecation on property
plant and EquipmentDeprecation on assetssubjects to finance leaseRoyaltyExcise DutyVehicle RunningPostage Telephone ,TelegramPrinting and StationeryLegal and ProfessionalChargesEstate DevelopmentRent, Rates and taxesFreight ChargesOther Expenses
Opening W.I.PTransfer from Trail runClosing W.I.PCost of Goods ManufacturedOpening stock of finishedgoodsTransfer from Trail runClosing Stock of finished
147324452741111
272904699556
192985825074912464347
1368488480352
1644759459748676420498530
439041354192
3331
837312596215541538934801499963969825753207910534013142686
-(118292)10558407107804
(118863)(11059)19302
8887306511826
1679829
1159214140464
6419625
580717293929605335
190256738315922913
21840469367
13108
45349153737159178494549962274113339694494387229161989
50462(142686)44569945058
39300(69728)(25370)43984
10348119607817
1509449
1349755141067
7955665
46408023085447062521146673881131823320542341940
13203
43678168846980177414928844678387956807651415583750205
-(161989)404405319468
-(5058)1441065641
6730756641351
1141756
87792472867
5279560
3742871859143229791493514357762999723642330100
11311
316521045057241831158154839303091413948963177348210983-
(50205)333812638616
-(19468)1914826505
5392393305191
990124
76649758207
3882756
3305351619192179111123716338970963742235317155
6923
3028459095881137412765073179615045736742261411388603
-(210983)249173344145
-(38616)5529
-
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Financial Analysis of Attock Cement Pakistan Ltd.
goods
-)Own consumptionCapitalizedCost of Goods SoldGross Profit
-) Administrative ExpensesSalaries WagesElectricityRepair and MaintenanceInsuranceDeprecation on propertyplant and EquipmentDeprecation on assetssubjects to finance leaseVehicle RunningPostage Telephone ,TelegramPrinting and StationeryLegal and ProfessionalCharges
Traveling and conveyanceRent, Rates and taxesEntertainmentSchool expensesFees and subscriptionOther ExpensesAuditors RemunerationTotal Administrative
ExpensesSelling and DistributionExpenseSalaries WagesElectricity
Repair and MaintenanceInsuranceDeprecation on propertyplant and EquipmentDeprecation on leasedpropertyVehicle RunningPostage Telephone ,TelegramPrinting and StationeryRent, Rates and taxesTraveling and conveyanceEntertainmentAdvertisement and Sales
PromotionFreight Charges-localFreight and HandlingCharges-ExportOther ExpensesTotal Selling and DistributionExpensesOther Operating ExpensesWorkers profit participationfund
105280461936301
5715029851620
168511956
126
35453441221035226783176113690041982
3424-
110745
354318752994971342
-
194012351553343837202963395
14135492219
2595562970
-
97345000
-580953
-
43876402031985
4895826781324
12779027
1571
535327381897336961042699278084912966
2937-
104169
297276708842351132
-
160313611094231214061892643
5019637
217965122
93145
-1105035112414-
39928223962843
4095026841210
31477261
1213
4066609349836394103772561327769753458
17304-
121953
23997443225172324
-
1225855891127215612941569
23-
150134352
182006
-9844
---
33307691948791
3105625661243
30999742
4945
2678310319131365241087279561771855
192673576480
174743451211397895
-
81485591398110453981919
31239-
241960905
83058
-4530
---
24972621385494
2734231251461
199212425
1382
175238411256247124484397665944937
36070468645
1461638340306900
88
76594464349514323582213
13572-
180538560
60829
----
206
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Financial Analysis of Attock Cement Pakistan Ltd.
Book Value of Asset writtenoffDonationWorker welfare fundExchange lossLoss on Disposal of Property
Plant and EquipmentLoss on Sale and Lease backtransactionsTotal Other OperatingExpensesOther Operating IncomeIncome from Financial AssetsIncome on Bank DepositsInterest on Loan toEmployeesGain on derecognizing ofinvestmentDividend Income From-Related Parties
-OthersTotal Income from financialAssetsIncome from non financialassetsRental IncomeProfit on sales of propertyplant and assetsScrap SalesMark up on loansProvisions and unclaimedbalances returned backExchange gain
OthersTotal other operating incomeProfit from operationsFinance CostLong term finances- Long term loans- Preferred dividend- Non participatory
redeemable capital- Finance under markup- Provident fund-Short term borrowings-Finance lease
workers profit participationfundLoss on derivative financialinstrumentsLoss on Foreign currencyforwardGuarantee commissionBank chargesTotal finance CostExcess of Acquire Interest in
-
595687
727128-
820303143821301
15924488
1039469731858
--
8466061513505
1040737--
--499413
584522
205308
-
416515569
(1766298)86194
(8674)
(175273)
108214(309167)
-
139721
1659182-
465656118467615
16344490
41701208303
--
4794202202393
32318328281-
--
103324656498-
-
18134496
468173-
(14163)
1720471
33000312435
-
191850
363181-
265763120266427
28473567
760945622116
6986-
2941143908802
30502735351-
--73772
12543101
-
17229
16794994
450696
(9573)
3448533
405001027000
6198
93786
582276543173
15228426696341
20023207
29112002729
-5007076922425312
1862673294265535351
42655--
1243983
-
7804
14056860
304041
-
2121271
40000464000
-
61735
535290-
3446085730121015
1980-
38271351289
--
1284621345016
141701200493535112341
37-
986090
-
--
8714235
224601-
-
1120415
28700297000
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Financial Analysis of Attock Cement Pakistan Ltd.
the net assets of acquireShare of loss of AssociatedcompanyProfit before Taxation-)TaxationFor the year
-current
- DeferredPrior Year-Current-DeferredTotal taxation
(5)-
(200958)
-
(247435)98000
(32422)
(5000)1030078
193
(65000)439193
10222
(10000)325922
Net Income 25685 1622471 2418455 1682078 794493
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Financial Analysis of Attock Cement Pakistan Ltd.
Summarized Balance SheetSummarized Balance Sheet 2008 2007 2006 2005 2004
Equity and LiabilitiesCapital and Reserves
Authorized Capital-950000000@ ordinary share10-50000000@ preferenceshare10
Issued subscribed and paid upcapitalShare deposit moneyReservesUn-appropriated profitTotal capital and ReserveNon Current LiabilitiesLong term finance
Liabilities against subject tofinance leaseLong term depositsRetirement and other benefitsDeferred TaxationTotal Non-Current liabilitiesCurrent LiabilitiesTrade and other payables
Accrued markupShort term borrowingCurrent portion of non-currentliabilitiesDerivative foreign currencyforward options
Provision for taxationTotal Current liabilitiesTotal Liabilities
AssetsNon-Current AssetsProperty plant and equipment
Assets subject to finance leaseCapital work in progressInvestmentsLong term loans, advances anddepositsTotal Non-Current AssetsCurrent Assets
Stores spares and loose toolsStock in tradeTrade debtsInvestments
Advances, deposits,prepayments and otherReceivablesCash and bank balanceTotal Current AssetsTotal
9500000500000100000002535412
-276347223239930528440
8871051393
7389054018125100010250352
145007439161081943302828202
-
35090
1289930653678098
24224273683924883076592332524176
33835927
2323883
130032546344615082605427832
2440801984217153678098
9500000500000100000002535412
-29630084175768933923185
86864471141
7946739862162400010430917
102727434261239429722042281
-
35090
739022951744331
2211755113337619070638174474196913
32529377
1496291
29514014424516933790229315
1161731921495451744331
250000050000030000001843937
835115085354233055819268200
737246828886
338142657215590009020740
140686934075726136951619025
-
35090
601543634304376
7521723295058117596774482213335810
24394481
836049
226286741658543763152465
77167990989534304376
250000050000030000001843937
-71965682774939317998
4899225131985
28674457655370005642649
1154426960620
-599674
306048
35090
305585818016505
663723731726239831752610634271428
13819736
1035081
100994762382769134121486
93836419676918016505
2500000500003000001676306
-
43890882516616317055
273057383487
30365381501380003020575
4939681360677
-487254
-
35090237698911714619
61280831665831126108138768125021
8833476
938847
298538526221386816120329
83991288114311714619
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Financial Analysis of Attock Cement Pakistan Ltd.
Horizontal Analysis of Income Statements
2008 2007 2006 2005 2004Net sales 321.01 % 165.34 % 204.89 % 135.97 100 %Cost of sale (421.58) (175.7) (159.89) (133.38) 100Gross profit 139.75 146.66 286.02 140.66 100administrativeexpense
(61.33) (151.75) (177.66) (111.41) 100
selling &dist.expenses
(145.98) (168.88) (89.09) (157.95) 100
other operatingexpense
(964.90) (226.32) (310.76) (151.29) -100
other Operatingincome
659.03 373.20 228.95 550.89 100
profit from operation 112.53 163.74 290.61 180.32 100finance cost (786.41) (208.26) (200.66) (1345.25) 100share of loss ofassociated company
- - - - 100
income before taxes 15.64 153.56 307.79 189.33 100Provision for taxation (61.66) (30.06) (316.05) (134.75) 100Net profit 3.23 204.21 304.40 211.72 100
Horizontal analysis of income statement shows that net sales of the Co has increasingtrend. But on the other hand Cost of goods sold jump quickly. This is not a good trend. Costof goods sold of the Co increases due to expensive raw materials. Gross profit of the codecreases from last years due to high cost of goods sold. Administrative and selling
expense of the Co has decreasing trend. Other operating expenses of the Company areincreasing quickly. Company is also increasing trend in other operating income. Profit fromoperations also decreases. Co also has high finance cost from last years. Income beforetaxes has decreasing trend due to high cost of goods sold and finance cost. Net profit of theCompany is Very small as compare to last years.
Vertical Analysis of IncomeStatements
2008 2007 2006 2005 2004Net sales 100% 100% 100% 100% 100 %
Cost of sale (84.46%) (68.35%) (50.18%) (63.09%) (64.32%)Gross profit 15.35 31.64 49.81 36.91 35.68
administrative expense (0.88) (1.62) (1.53) (1.45) (1.77)selling &dist. expenses (4.52) (1.01) (0.43) (1.15) (0.99)
other operating expense (4.78) (2.17) (2.41) (1.78) (1.59)
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Financial Analysis of Attock Cement Pakistan Ltd.
other Operatingincome
6.79 7.47 3.70 13.40 3.37
profit from operation 12.14 34.31 49.13 45.94 34.64finance cost (14.17) (7.28) (5.66) (5.76) (5.78)
Excess of acquiresinterest in the net assets
of acquire
0.69- - - -
share of loss ofassociated company
(0.66) (0.22) (0.12)
income before taxes 1.41 26.80 43.34 40.18 28.86Provision for taxation (1.61) (1.53) (12.95) (8.32) (8.39)
Net profit 20.20 25.27 30.40 31.86 20.46
In vertical analysis of income statement shows that has high cost of goods sold from lastyears. Gross Profit of the Co has decreasing trend. This is decrease due to high cost ofgoods sold. Operative expense of the co has minimum portion in the income statement.Profit from operations also has decreasing trend. Share of loss of associated co alsoincreases Income before taxes also decreases from last years. Provision for income taxes
also has decreasing trend.
Horizontal Analysis of BalanceSheet
Assets 2008 2007 2006 2005 2004issued subscribed &paid up capital
151.25 151.25 110.00 110.00 100
reserves 629.62 675.08 343.70 163.96 100
accumulated profittotal
12.87 698.43 926.07 110.26 100
Total - 537.01 305.02 147.51 100
non-current Liabilities
long term finance 324.88 318.12 269.99 179.42 100
liabilities againstassets subject tolease finance
0.47 1.36 34.50 158.09 100
long-term deposits 243.34 261.71
retirement and otherbenefit
141.59 104.40 69.65 119.96 100
deferred taxation 906.52 1176.81 1129.71 389.13 100current liabilities
trade and otherpayables
293.56 207.96 284.81 233.70 100
accrued mark up 28.78 25.18 25.03 70.60 100
current portion oflong term liabilities
580.43 419.14 332.27 123.07 100
provision for taxes 100 100 100 100 100
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Financial Analysis of Attock Cement Pakistan Ltd.
total 542.67 310.91 25.47 128.56 100
assetsnon-current assets
property plant &equipment
395.29 360.92 122.74 108.31 100
assets subject tofinance lease 4.10 80.06 177.12 190.45 100capital work inprogress
220.96 169.35 1044.28 353.71 100
investment 475.06 589.07 323 188.13 100
long-term loans&deposits
2094.94 99 1342.11 1084.80 100
current assets 100 115.7 116.10 121.51 123
stores spares and loosetools
247.53 159.37 89.05 110.25 100
stock in trade 435.56 98.86 75.79 33.83 100
trade debts 880.71 274.11 140.94 144.88 100
investment 1087.57 11221.05 616.07 199.67 100advanced deposits 355.55 190.57 126.71 100.96 100
cash and bank balance 290.60 138.32 91.88 111.72 100
Liabilities and owner equity of the balance sheet shows that issued and paid up capital ofthe company is increasing. And reserves of the co also jump 343% to 675% in the year of2006 to 2007. Accumulated profits of the co have decreasing trend. And it is dangerous forthe co.Non current liabilities of the co increases from 2004 to 2007 but there is a decline in 2008.Current liabilities of the co also have increasing trend.This horizontal analysis of balance sheet shows that Fixed Assets of the Co increase fromlast years. It means Co have much productive assets. It shows a good trend of fixed assets.
On other side trend of assets subjects to finance lease going to decrease. Co also haveasset that are work in progress but trend of these assets also going to decrease. Co alsoinvests in long term investment and this asset also has increasing trend from 2004 to 2008.Co also has long term deposits and these also have increasing trend.Current Assets of the Co also have increasing trend. Trade debts of the Co also haveincreasing trend and its debts are not in a good position. Short term investments of the coalso increase and Co use its idle cash in good manners..
Vertical analysis of balance
sheetAssets 2008 2007 2006 2005 2004issued subscribed &paid up capital
4.72% 4.89% 5.37% 10.23% 14.31%
reserves 51.48 57.26 43.97 39.94 37.47accumulated profittotal
0.06 3.39 6.79 1.54 2.15
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Financial Analysis of Attock Cement Pakistan Ltd.
Total 56.26 65.55 56.16 51.72 53.92Non-currentLiabilitieslong term finance 16.52 16.79 2.49 27.19 23.31liabilities againstassets subject to
lease finance
0.000732 0.0022 0.084 0.73 0.71
Long term deposits 0.13 0.15 0.098 0.16 0.26retirement and otherbenefit
0.10 0.077 0.077 0.25 0.32
deferred taxation 2.33 3.14 4.54 2.98 1.18Total 19.09 20.16 26.29 31.32 25.78Current liabilitiesTrade & otherpayables
2.70 1.98 4.10 6.41 4.22
accrued mark up 0.73 0.66 0.99 5.33 11.61
Short term borrowing
secured
15.26 7.62 7.62
current portion oflong term liabilities
5.27 3.95 4.72 3.33 4.16
provision for taxes 0.06 0.068 0.10 0.19 0.29total 24.03 14.28 17.54 16.96 20.29
assetsnon-current assets
property plant &equipment
45.13 42.74 21.92 36.83 52.31
assets subject tofinance lease
0.012 0.26 0.86 1.76 1.42
capital work in
progress
4.63 3.68 34.28 22.11 9.61
investment 12.28 15.79 13.06 14.49 11.85long-term loans
&deposits0.97 0.38 0.97 1.51 0.21
Total 63.03 62.86 71.11 76.71 75.41Current liabilities
stores spares andloose tools
4.32 2.89 2.44 5.75 8.01
stock in trade 2.42 0.57 0.66 0.56 2.55trade debts 0.86 0.27 0.22 0.42 0.45investment 28.09 32.72 24.90 15.37 11.84
advanced deposits 0.79 0.44 0.44 0.67 1.03cash and bank
balance0.45 0.22 0.22 0.52 0.72
Total 36.26 37.13 28.88 23.29 24.59
Vertical Analysis of the balance sheets shows that in 2008 that Equity portion of Co havelarge portion of equity .And there is minimum portion of non current liabilities. And it showsa good trend. Co finances his assets through equity and pay minimum amount of interest.
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Financial Analysis of Attock Cement Pakistan Ltd.
Current liabilities of the co increase from last years. On current assets co do not payinterest. Co pays his obligation timely and there is no chance of insolvency.On the other side of balance sheet are assets of the Co. Co have more productive assets.
Analysis show that Company Finance minimum assets at lease. Current assets of the Coslightly decrease from last year.
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Financial Analysis of Attock Cement Pakistan Ltd.
Conclusion:
Trend Analysis of the company shows
that the companys performance is
decreasing with the passage of time as
profitability, ROA and ROE are decreasing
every year. Company is getting more
leveraged which is increasing the risk of
insolvency. Company recovers its trade
debts in almost 2 to 3 which shows that
company has a good credit policy. Cross
sectional Analysis shows that company is
in the better position than its competitors.
Political and economic issues has a
great impact on the performance of wholeindustry e.g. increase in demand ofenergy and oil have increased the pricesof inputs which resulted a great increase