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FINANCIAL STATEMENT ANALYSIS

OF M.C.B AND U.B.L (2006 TO 2008)

SUBMITTED BY:

SAMI ULLAH SAQIB

ID: MC-070401840
VIRTUAL UNIVERSITY OF PAKISTAN
PLHR 39 KAIZEN INSTITUTE

16-04-2009
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Student Introduction:

Sami Ullah Saqib

ID: MC-070401840
Last Degree: Graduation from P.U.
Organization: Sheikh Bros flour Mills, Lahore.
Designation: Accountant
Experience: Seven Years
Contact: 0300-4597498
E-mail: Sam_lucky101@yahoo.com
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ACKNOWLEDGEMENT

I am very grateful to my Allah Almighty who has enabled me

to do this project.

After that I am also much indebted to my teachers and

instructor of FIN 619 whose guidance made me through to this
project.
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DEDICATION

To my parents, who were supplicated for me.

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Executive Summary

This is a purposive and explanatory research pattern, which

illuminates the analysis of the
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Table of content

1. Background ………………………………………3
2. Introduction ………………………………………4

3. Objectives ………………………………………5
4. Significance ………………………………………6
5. Project Proceeding ………………………………………7
6. Methodology ………………………………………8
7. 6.1DataCollection………………………………………8
6.2 Data Tools ………………………………………
8 6.3DataProcessing ……………………………………
9
8. Bibliography ………………………………………10
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1- Back Ground:

There are several organizations listed in stock exchanges for instance

cement manufacturers, sugar mills, banking, leasing companies,
engineering concerns, insurance, telecommunication etc. But a streak of
trade which affecting the entire business is Banking Company as identified
by banking ordinance, is playing key function in every country’s economic
circumstances.

The most acme financial industry of the world is banking. It affects the
businesses of the entire economy. In the recent global economic crisis is
due to the banks run which inform us how much vital the banking area is
and the fundamental part of entire financial system.
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2 - Introduction:
here you were required to provide proper introduction of
companies as well

The project comprises of two Pakistani Major Banks, First is M.C.B Bank
Ltd. and the second one is U.B.L Ltd. This is a three years based financial
statement analysis, which is beginning from 2006 to 2008. The financial
year of these organizations is starting from 1st January and ending on 30th
December. Their particulars are as under:

MCB Bank Ltd.

MCB Bank Ltd is the leading commercial bank of Pakistan. MCB also was
given the award as the best bank in Asia by Euro Money in 2008, because
in spite of the recession and difficult market conditions, it continuously
made strong progress.
Mr. Atif Bajwa is the President and CEO of MCB.
There are nine other members including the board of director.
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Mr. Ali Munir is the CFO.

KPMG Taseer hadi & Co, Riaz Ahmed & Co. are the auditors.

Vision:
To be the leading services provider, partnering with our customers for a
more prosperous and secure future.

Mission:
We are a team of committed professionals, providing innovative and
efficient financial solutions to create and nurture long term relationships
with our customers. In doing so, we ensure that our shareholders can
invest with confidence in us.

UBL Ltd.
The Largest Investment Bank in Pakistan

IBG provides innovative and unique solutions to its clients enabling them to meet
the challenges of an ever- changing market.

Dedicated specialist team of 14 investment bankers. Supported by over 50

relationship managers in six different locations in Pakistan alone.

Mr. Atif R. Bokhari is the President and CEO of UBL Ltd.

3 - Objectives: inappropriate objectives

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Although you can discuss with your study fellows like

mc070401825, buy my advise for you to get understanding
of the requirements by yourself after reading the available
material on LMS

• Demonstrate that the books information how close to practical

• Exertion on project to create interest for those persons, which are
related to the business
• Check out the SWOT analysis to help in financial Statement analysis
of these two companies
• Try to explain the importance of financial analysis for every business
• Explain that what are the finance related key points that effects at
the organization intensification
• Struggle to work hard at this project and make it succinct and
knowledgeable

Target Audience:
Our this is individual based project, not a group activity target industry will
be banking center and target audience and participants will belong to the
following group.

1. Bankers. (Of the specific banks mentioned)

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4 - Significance: copied with mc070401825

• Financial statement analysis is the most widespread and frequent

technique of financial Statement analysis
• It is an explanatory research project
• What are the Shareholders equity interests in organizations?
• An accounting picture of the firm’s operations and financial position
• Examine the ability of capital management
• Examine the life of these organizations
• Check the cash management ability of these organizations
• What type of borrowing organization use long term or short term
• Banking system is the strength of character of an economy.
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5 - Project Proceedings:

Financial Statement Analysis clarifies the relationship and allows

comparison of one industry to another. Since financial statement ratio
analysis looks at relationships inside the industry, an industry of one size
can be directly compared to a second industry this may be larger or
smaller or even in a diverse business. Financial statement ratio analysis is
a technique of evaluation not reliant on the size of either industry/firm.
Financial statement ratio analysis provides a broader foundation for
comparison than do raw numbers. However, ratios on their own, without
year-to-year or other industry comparative ratios are of little use in
justification the strength or future of the industry being analyzed. Project
stands on uncomplicated proceedings that are as under:

Following data Copied

Introduction
Mission / Vision Statement
Financial Statement last three years 2006-2008
Horizontal Analysis
Vertical Analysis
Ratio Analysis
Strength and weakness
Trend & industry analysis
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Do consult final project format and the requirements given in

document “Essentials of Financial Statement Analysis” available
on LMS

Mostly data is copied with mc070401825

6 - Methodology:

(a) Data collection sources:

The most important source in data collection is Internet and peer, which
are helpful in this project. I collected data from KSE web site about these
organizations; web site show its appearance means it’s listed in stock
exchange and their share value working here. In near past SECP make a
rule that if company is listed in stock exchange it must put his financial
position on its web site. And some good organizations before this law put
their financial on their web site because they want to show the growth and
their financial strength.
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(b) Data collection tools: incorrect

The data will be provided through the literature and researches done
previously, their advantages and criticism will also be discussed and
examined. Financial reports and other data of the companies also will be
determined. My university; Virtual University educated me to use the
computer and knowledge about Internet because the whole study is
around of computer. The basic knowledge of computer I learn from Virtual
University. My lectures, and I did my assignments delivered to my
instructor through e-mails these things teach me more knowledge about
computer. Firstly I check KSE web site use as a tool for finding status of
these well known organizations, secondly I use the google search engine
which helps me a lot more to fine the real name of these organizations web
site. I browse these sites and download their financials.

(c) Data Processing: do provide only relevant information, you were

required to tell that what analysis you will perform on collect data and which
software you will use

Financial statement analysis is the procedure of exploratory association

among financial statement elements and making comparisons with
relevant information. I see my lecture notes to get more assistance.
Microsoft office is require as a software for this project, in Microsoft office,
M.S Excel use as speared sheet, because in M.S Excel we easily
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administer the accounting and financial ratios or several other sort

calculation. I employ M.S Excel financial formula bars where many ratio
analysis formulas find and I put only figures spread analyze itself through
command. In fact M.S Excel is based on math and statistics, and my
university also teaches me in first semester. In manual math you write
figures and calculate it but in spreadsheet you write only figures but in right
place and then command to solution and spread solve it. Project working
is 100% accurate because it’s very sensitive at this side. For instance if
any single ratio is incorrect premeditated then the depiction of organization
not illustrate the accurate data. And I also revise my M.S Excel knowledge
about making graph or many type data processing and presentation, which
I studied in my MBA first semester. Micro Soft word and Micro Soft power
point in also use as a tool for preparation of project and I also revise basic
function, I got more help from IT430 and ST 630 to manage a research
design project.

7 - Bibliography:

The data and other material for the purpose will be collected through
literature, reference books, experiments and world wide web as under:

Books:

Financial statement analysis FIN 621 by Mr Naimat Ullah Abid

Research Methods STA 630 by Dr. Muhammad Anwer

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Fundamentals of corporate finance by, Mcgraw Hill Publications

And Other Browsers and financial Magazines.