IBF Project Report Kohinoor Sugar Mills LTD

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3
4
Serial Particulars Pages
no. no.
1. Acknowledgement 5
2. Preface 8-9
3. Cross Sectional Analysis 11-29
4. Time Series Analysis 31-41
5. Graphical Representation 43-44
6. Common Size Statement 46-48
7. Internal and Sustainable 49
Growth Rate
8. Performa Income 51-52
Statement and Balance
Sheet
9. Plug Variable 53
10. Conclusion 54
11. Recommendations 55-56
5
First of all I would like to thanks to the mighty
ALLAH that he courage me to complete this
project. Secondly I would like to thanks to my dear
teacher Mr. Asif Nagi that he has assigned me to
write this report. I have putted my best to complete
this report. It is honor for me to write a final report
of Kohinoor Sugar Mills Ltd.
6
7
About Student;
Name : Syed Owais Ali

ID : SP07-BB-0135
Project Report on a
Financial Statement
Analysis of a Company
Financial statement analysis:
8
It is a set of four related accounting reports which shows the position and
results of operations of an entity during a particular period of time.
It includes;
• Income statement
• Balance sheet
• Statement of cash flows
• Statement of retained earning
Types of Analysis;
1. Cross sectional analysis

2. Time series analysis
Cross sectional analysis:

Financial results of the firm are compared with the result of industry.
Time series analysis:

Evaluation of the firm financial performance over time (using financial ratio
analysis) is known as Time series analysis.
We do this analysis to;
• Know the strengths and weakness

• Know the historical performance
• Know the current financial position of firm
9
About a company;
The company which is being selected for this report is
Kohinoor Sugar Mills Ltd.
FAROOQ AHMED is a company secretary. Its registered office is in
29 – G, GULBERG – II, LAHORE and mills are in JAUHARABAD,
DISTRICT KHUSHAB.
STATEMENT OF ETHICS AND BUSINESS PRACTICE
Code of ethics is a pre-requisite for all directors and employees of

Kohinoor Sugar Mills Limited. We endeavor to have fully groomed
employees committed to carry out honestly activities assigned to
them. Our aim is to have high standard of excellence for the products
and for all those involved with our Company.
VISION STATEMENT
To become a market leader in the Industry setting out high quality

standards for the Company and others to follow.
MISSION STATEMENT
To produce/manufacture quality sugar and molasses by maintaining a

high standard of efficiency and staying competitive to ensure
customer satisfaction and to provide a comfortable level of return to
all stakeholders.
10
Current Ratio:
11
Current Ratio = Current Assets
Current liabilities
= 390,666,841
457,793,528
Current Ratio = 0.85
Interpretation:
Current ratio measures a firm’s ability to meet its short term obligations.
Company’s Result:
In this company current ratio is 0.85. It means current assets are 0.85 times
more than that of its current liabilities.
Company vs. Industry:
If we compare the result of this company with the result of industry, it is

showing “negative result”, because current ratio of a company is ‘less
than’ that of industry’s ratio.
Quick Ratio:
Quick Ratio = Current Assets – Inventory – Prepaid Expenses
12
Current Liabilities
= 390,666,841 – 218,956,788 – 369,790
457,793,528
Quick Ratio = 0.374
Interpretation:
Quick Ratio measures the firm ability to meet its short term obligations.
Company’s Result:
In this company quick ratio is 0.374. It means quick assets are 0.374 times

showing “negative result”, because quick ratio of a company is ‘less
Cash Ratio:
Cash Ratio = Cash

Current Liabilities
= 9,553,415
13
457,793,528
Cash Ratio = 0.021
Interpretation:
Cash Ratio measures the firm ability to meet its short term obligations.
Company’s Result:
In this company cash ratio is 0.021. It means quick assets are 0.021 times

showing “negative result”, because cash ratio of a company is ‘less than’
that of industry’s ratio.
Working Capital:
Working Capital = Current Assets – Current Liabilities

= 390,666,841 – 457,793,528
Working Capital = (67,126,687)
14
Interpretation:
Working Capital measures the firm ability to meet its short term obligations.
Company’s Result:
In this company working capital is (67,126,687).

showing “negative result”, because working capital of a company is ‘less
Debt Ratio:
Debt Ratio = Total Liabilities or Total Debts

Total Assets
= 884,122,802
1,238,530,181
Debt Ratio = 0.714
15
Interpretation:
Debt Ratio measures the firm ability to meet its long term obligations. The
ratio shows the relationship between total liabilities and total assets.
Company’s Result:
In this company debt ratio is 0.714. It means that total liabilities of a

company are 0.714 times of its total assets.

showing “negative result”, because debt ratio of a company is ‘more
than’ that of industry’s debt ratio.
Debt to Equity Ratio:
Debt to Equity Ratio = Total Liabilities or Total Debts

Total Shareholder’s Equity
= 884,122,802
354,407,379
Debt to Equity Ratio = 2.49
Interpretation:
16
Debt to Equity Ratio measures the firm ability to meet its long term
obligations. The ratio shows the relationship between total liabilities and
total shareholder’s equity.
Company’s Result:
In this company debt to equity ratio is 2.49. It means that total liabilities are
2.49 times of total shareholder’s equity.

showing “negative result”, because company debt to equity ratio is ‘more
than’ that of industry’s debt to equity ratio.
Time Interest Earned:
Time Interest Earned = Operating profit/EBIT

Interest Expense
= 86,517,309
39,414,193
Time Interest Earned = 2.195 times
Interpretation:
17
Time interest indicates that how many times a company can pay its interest
expense from its operating profit.
Company’s Result:
In this company time interest earned is 2.195 times. It means that company
can pay its interest expenses 2.195 times from its operating profit.
If we compare the result of this company with the result of industry,

company is showing “negative result”, because time interest earned of a
company is ‘less than’ that of industry’s time interest earned.
Account Receivable Turnover:
Account Receivable Turnover = Net Credit Sales

Average Account Receivable
= 913,370,379
18,490,064
Account Receivable Turnover = 48.71 times
Interpretation:
18
Account Receivable Turnover indicates that how many times a company
converts its receivable into cash during a year.
Company’s Result:
In this company account receivable turnover is 48.71 times. It means that

company converts its receivable into cash 48.71 times in a year.

company is showing “positive result” because company result is
‘greater than’ that of industry.
Average Collection Period:
Average Collection Period = 365

Account Receivable Turnover
= 365
48.71
Average Collection Period = 7.5 days
Interpretation:
19
Average Collection Period indicates that in how many days a company
converts its receivable into cash.
Company’s Result:
In this company average collection period is 7.5 days. It means that the
company converts its receivable into cash after every 7.5 days.

company is showing “positive result” because company result is ‘less
than’ that of industry.
Inventory Turnover:
Inventory turnover = Cost of Goods Sold

Average Inventory
= 775,729,109
218,956,788
Inventory Turnover = 3.54 days
Interpretation:
20
Inventory turnover indicates that how many times a company converts its
inventory into sales or cash.
Company’s Result:
In this company inventory turnover is 3.54 days. It means that a company

converts its inventory into cash or sales in 3.54 days in a year.

company is showing “positive result” because company result is
‘less than’ that of industry.
Fixed Assets Turnover:
Fixed Assets Turnover =

Net Sales
Fixed Assets
= 913,370,379
1,303,161,767
Fixed Assets Turnover = 0.701 times
Interpretation:
It indicates that how many times revenue is generated from fixed assets of its
own worth.
21
Company’s Result:
In this company fixed asset turnover is 0.701 times. It means that fixed
assets of a company generate revenue 0.701 times of its own worth.

company is showing “negative result” because company fixed asset
turnover is ‘less than’ that of industry.
Total Assets Turnover:
Total Assets Turnover =Net Sales

Total Assets
= 913,370,379
1,238,530,181
Total Assets Turnover = 0.737 times
Interpretation:
It indicates that how many times revenue is generated from total assets of its
own worth.
22
Company’s Result:
In this company total asset turnover is 0.737 times. It means that total assets
of a company generate revenue 0.737 times of its own worth.

company is showing “negative result” because company total asset
turnover is ‘less than’ that of industry.
Gross Profit Margin:
Gross Profit Margin =

Gross Profit
Net Sales
= 137,641,270
913,370,379
Gross Profit Margin = 15.1%
Interpretation:
Gross Profit Margin shows the relationship between gross profit and net
sales. It is a percentage of gross profit based on net sales.
Company’s Result:
23
In this company gross profit margin is 15.1%. It means a company generates
15.1% gross profit based on its net sales.

company is showing “negative result” because company gross profit
margin is ‘less than’ that of industry.
Operating Profit Margin:
Operating Profit Margin = Operating Profit

Net Sales
= 86,517,309
913,370,379
Operating Profit Margin = 9.4%
Interpretation:
Operating Profit Margin shows the relationship between operating profit and
net sales. It is a percentage of operating profit based on net sales.
Company’s Result:
In this company operating profit margin is 9.4%. It means a company

generates 9.4% operating profit based on its net sales.
24

company is showing “negative result” because company operating profit
margin is ‘less than’ that of industry.
Net Profit Margin:
Net Profit Margin =Net Profit

Net Sales
= 8,141,611
913,370,379
Net Profit Margin = 0.89%
Interpretation:
Net Profit Margin shows the relationship between net profit and net sales. It
is a percentage of net profit based on net sales.
Company’s Result:
In this company net profit margin is 0.89%. It means a company generates

0.89% net profit based on its net sales.
25
company is showing “negative result” because company net profit margin
is ‘less than’ that of industry.
Return on Assets:
Return on Assets = Net Profit

Total Assets
= 8,141,611
1,238,530,181
Return on Assets = 0.6%
Interpretation:
Return on Assets shows the relationship between net profit and total assets.
It is a percentage of net profit based on total assets.
Company’s Result:
In this company return on assets is 0.6%. It means a company generates

0.6% of net profit based on total assets.
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company is showing “negative result” because company return on asset is
much ‘less than’ that of industry.
Return on Equity:
Return on Equity = Net Profit

Total Shareholder’s Equity
= 8,141,611
354,407,379
Return on Equity = 1.45%
Interpretation:
Return on Equity shows the relationship between net profit and total
shareholder’s equity. It is a percentage of net profit based on total
shareholder’s equity.
Company’s Result:
In this company return on equity is 1.45%. It means a company generates

1.45% of net profit based on total shareholder’s equity.
27
company is showing “negative result” because company return on equity
is much ‘less than’ that of industry.
Earning per Share:
Earning per Share = Net Profit after Tax – Preferred Dividend

No. of Equity Shares or Common Stocks
= 8,141,611 - 0
9,486,780
Earning per Share = 0.86
Explanation:
Earning per Share shows the earning generated by a single share of a

company.
Company’s Result:
The Earning per Share of this company is 0.86, which means it is earning
0.86 by a single share.
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Dividend per Share:
Dividend per Share =

Dividend paid to Common Stock Holders
No. of Equity Shares
= 14,080,315
9,486,780
Dividend per Share = 1.48
Explanation:
Dividend per Share shows the dividend paid against every share.
Company’s Result:
Dividend per Share of this company is 1.48, which means a company paid
1.48 against every share.
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30
Ratios 2006 2005 2004
Short Term Solvency Ratios
Current Ratio 0.853 1.082 0.777
Quick Ratio 0.236 0.550 0.341
Cash Ratio 0.021 0.014 0.004
Working Capital (67,126,687) 17,219,191 (65,722,452)
Long Term Solvency Ratios/Stability Ratios
Debt Ratio 0.714 0.502 0.637
Debt to Equity Ratio 2.494 1.011 1.759
Time Interest Earned 2.195 1.043 1.743
Assets Utilization Ratios
Account Receivable
48.71 times 58.13 times 174.8 times
Turnover
Average Collection
7.5 days 6.27 days 2.1 days
Period
Inventory Turnover 3.54 days 10.8 days 7.49 days
Fixed Assets Turnover 0.701 times 1.233 times 1.219 times
Total Assets Turnover 0.737 times 1.202 times 1.341 times
Profitability Ratios
Gross Profit Margin 15.1% 15.8% 12.1%
Operating Profit Margin 9.4% 10.8% 7.3%
Net Profit Margin 0.89% 6.3% 3.5%
Return on Assets 0.6% 7.6% 4.7%
Return on Equity 1.4% 15.3% 13.0%
31
Explanation and
Comparison of Ratios of
2004, 2005 and 2006
32
Current Ratio:
Explanation:
Current ratio measures a firm’s ability to meet its short term obligations.
Comparison:
In 2004 company current ratio is 0.777, in 2005 it become 1.082 and in 2006
it is 0.853, as the current ratio is increasing in 2005 but it is decreasing in
2006 therefore it is not good for a company.
Quick Ratio:
Explanation:
Quick Ratio measures the firm ability to meet its short term obligations.
Comparison:
In 2004 company quick ratio is 0.341, in 2005 it become 0.550 and in 2006
it is 0.236, as the quick ratio is increasing in 2005 but it is decreasing in
2006 therefore it is not good for a company.
33
Cash Ratio:
Explanation:
Cash Ratio measures the firm ability to meet its short term obligations.
Comparison:
In 2004 company cash ratio is 0.004, in 2005 it become 0.014 and in 2006 it
is 0.021, as the cash ratio is increasing in 2005 and also in 2006 therefore it
is good for a company.
Working Capital:
Explanation:
Working Capital measures the firm ability to meet its short term obligations.
Comparison:
In 2004 company working capital is (65,722,452), in 2005 it become

17,219,191 and in 2006 it is (67,126,687), as the working capital is
increasing in 2005 but again it is decreasing in 2006 therefore it is not good
for a company.
Debt Ratio:
34
Explanation:
Debt Ratio measures the firm ability to meet its long term obligations. The
ratio shows the relationship between total liabilities and total assets.
Comparison:
In 2004 company debt ratio is 0.637, in 2005 it become 0.502 and in 2006 it
is 0.714, as the debt ratio is decreasing in 2005 but it is increasing in 2006
therefore it is not good for a company.
Debt to Equity Ratio:

Explanation:
Debt to Equity Ratio measures the firm ability to meet its long term
obligations. The ratio shows the relationship between total liabilities and
total shareholder’s equity.
Comparison:
In 2004 company debt to equity ratio is 1.759, in 2005 it become 1.011 and
in 2006 it is 2.494, as the debt to equity ratio is decreasing in 2005 but it is
increasing in 2006 therefore it is not good for a company.
Time Interest Earned:

Explanation:
35
Time interest indicates that how many times a company can pay its interest
expense from its operating profit.
Comparison:
In 2004 company time interest earned is 1.743, in 2005 it become 1.043 and
in 2006 it is 2.195, as the time interest earned is decreasing in 2005 but it is
increasing in 2006 and it is good for a company.
Account Receivable Turnover:

Explanation:
Account Receivable Turnover indicates that how many times a company

converts its receivable into cash during a year.
Comparison:
In 2004 company account receivable turnover is 174.8 times, in 2005 it

become 58.13 times and in 2006 it is 48.71 times, as the account receivable
turnover is decreasing in 2005 and also in 2006 therefore it is not good for a
company.
Average Collection Period:

Explanation:
Average Collection Period indicates that in how many days a company

converts its receivable into cash.
36
Comparison:
In 2004 company average collection period is 2.1 days, in 2005 it become

6.27 days and in 2006 it is 7.5 days, as the average collection period is
increasing in 2005 and also in 2006 therefore it is not good for a company.
Inventory Turnover:
Explanation:
Inventory turnover indicates that how many times a company converts its
inventory into sales or cash.
Comparison:
In 2004 company inventory turnover is 7.49 days, in 2005 it become 10.8

days and in 2006 it is 3.54 days, as the inventory turnover is increasing in
2005 but it is decreasing in 2006 therefore it is not good for a company.
Fixed Assets Turnover:

Explanation:
It indicates that how many times revenue is generated from fixed assets of its
own worth.
Comparison:
37
In 2004 company fixed assets turnover is 1.219 times, in 2005 it become
1.233 times and in 2006 it is 0.701 times, as the fixed assets turnover is
increasing in 2005 but it is decreasing in 2006 therefore it is not good for a
company.
Total Assets Turnover:

Explanation:
It indicates that how many times revenue is generated from total assets of its
own worth.
Comparison:
In 2004 company total assets turnover is 1.341 times, in 2005 it become

1.202 times and in 2006 it is 0.737 times, as the total assets turnover is
decreasing in 2005 and in 2006 therefore it is not good for a company.
Gross Profit Margin:

Explanation:
Gross Profit Margin shows the relationship between gross profit and net
sales. It is a percentage of gross profit based on net sales.
Comparison:
38
In 2004 company gross profit margin is 12.1%, in 2005 it become 15.8%
and in 2006 it is 15.1%, as the gross profit margin is increasing in 2005 but
it is decreasing in 2006 therefore it is not good for a company.
Operating Profit Margin:

Explanation:
Operating Profit Margin shows the relationship between operating profit and
net sales. It is a percentage of operating profit based on net sales.
Comparison:
In 2004 company operating profit margin is 7.3%, in 2005 it become 10.8%

and in 2006 it is 9.4%, as the operating profit margin is increasing in 2005
but it is decreasing in 2006 therefore it is not good for a company.
Net Profit Margin:

Explanation:
Net Profit Margin shows the relationship between net profit and net sales. It
is a percentage of net profit based on net sales.
Comparison:
39
In 2004 company net profit margin is 3.5%, in 2005 it become 6.3% and in
2006 it is 0.89%, as the net profit margin is increasing in 2005 but it is
decreasing in 2006 therefore it is not good for a company.
Return on Assets:
Explanation:
Return on Assets shows the relationship between net profit and total assets.
It is a percentage of net profit based on total assets.
Comparison:
In 2004 company return on assets is 4.7%, in 2005 it become 7.6% and in

2006 it is 0.6%, as the return on assets is increasing in 2005 but it is
Return on equity:
Explanation:
40
Return on Equity shows the relationship between net profit and total
shareholder’s equity. It is a percentage of net profit based on total
shareholder’s equity.
Comparison:
In 2004 company return on equity is 13.0%, in 2005 it become 15.3% and in

2006 it is 1.4%, as the return on equity is increasing in 2005 but it is
41
Cross Sectional
Graphical
Representation2004
2005
2006
42
By seeing overall results of 2004, 2005 and 2006,
in cross sectional analysis, company performance
is better in 2005 then 2004 and 2006.
Time Series Graphical

50
40
30
Representation
20
10
0
2004 2005 2006
43
By seeing overall results of 2004, 2005 and 2006,
in time series analysis, company performance is
better in 2005 then 2004 and 2006.
44
Common Size Income Statement
For the year ended September 30, 2006
2006 Percentage 2005 Percentage
SALES 913,370,379 100% 852,372,071 100%

COST OF SALES 775,729,109 84.9% 717,170,556 84.1%
GROSS PROFIT 137,641,270 15.1% 135,201, 515 15.9%
OPERATING EXPENSES
Selling and Distribution cost 1,901,689 0.21% 1,656,656 0.2%
Administrative Expense 49,222,272 5.4% 40,712,566 4.7%
45
51,123,961 5.6% 42,369,222 4.9%
OPERATING PROFIT 86,517,309 9.5% 92,832,293 10.9%
FINANCE COST 51,801,936 5.7% 20,816,861 2.4%
OTHER INCOME/(EXPENSES) 4,698,820 0.51% 17,001,821 1.2%
39,414,193 4.3% 89,017,253 10.4%
WORKER’S PROFIT 1,735,769 0.2% 4,238,917 0.5%
PARTICIPATION FUND
WORKER’S WELFARE FUND 738,793 0.1% -
PROFIT BEFORE TAXATION 36,936,631 4.0% 84,778,336 9.9%
PROVISION FOR TAXATION
Current 4,580,109 0.5% 13,612,568 1.6%
Deferred 24,217,911 2.6% 17,084,060 2.0%
28,798,020 3.2% 30,696,628 3.6%
PROFIT AFTER TAXATION 8,141,611 0.9% 54,081,708 6.3%

Common Size Balance Sheet
2006 Percentage 2005 Percentage

FIXED ASSETS
Property, plant and equipment 894,236,931 72.2% 644,351.583 90.8%
Capital work in progress 408,924,836 33.0% 46,634,018 6.5%
1,303,161,767 105.2% 690,985,601 97.4%
LONG TERM DEPOSITS 2,495,101 0.2% 1,140,301 0.2%
CURRENT ASSETS
Stores, spare parts and loose 84,466,516 6.8% 90,623,529 12.8%
tools
Stock in trade 218,956,788 17.7% 66,437,296 9.4%
Trade Debts 4,168,000 0.3% - -
Loans and Advance 33,899,374 2.7% 26,669,845 3.8%
Short Term Deposits and 369,790 0.03% 3,839,179 0.5%
46
Prepayments
Other Receivables 14,581,064 1.2% 14,662,764 2.1%
Taxation 24,671,894 1.2% 22,031,178 3.1%
Cash and Bank Balance 9,553,415 0.8% 2,909,458 0.4%
390,666,841 31.5% 227,173,249 32.0%
CURRENT LIABILITIES
Trade and Other Payables 71,639,821 5.7% 46,598,878 6.6%
Accrued Mark-Up 23,025,566 1.9% 5,412,193 0.8%
Short term borrowings-Secured 294,697,100 23.8% 112,112,231 15.8%
Current portion of long term 63,850,932 5.2% 41,555,667 5.8%
liabilities
Provision for Taxation 4,580,109 0.4% 4,275,089 0.6%
457,793,528 36.9% 209,954,058 29.6%
CURRENT ASSETS LESS (67,126,687) (5.4%) 17,219,191 2.4%
CURRENT LIABILITIES
TOTAL ASSETS LESS 1,238,530,181 100% 709,345,093 100%
CURRENT LIABILITIES
CONTINGENCIES AND - - - -
COMMITMENTS
NON CURRENT
LIABILITIES
Long Term Finances-Secured 326,317,346 42.4% 101,206,852 18.6%

Liabilities against Assets 12,049,439 1.2% 3,681,601 0.7%
subject to finance lease
Other loan-Unsecured 87,962,489 11.4% 41,816,509 7.7%
426,329,274 55.4% 146,704,962 26.9%
DEFERRED TAXATION 41,301,971 5.4% 17,084,060 3.1%
OTHER LIABILITIES 1,309,000 0.2% 1,309,000 0.2%
NET ASSETS 769,589,936 100% 544,247,071 100%
REPRESENTED BY:
Share Capital 94,867,800 12.3% 94,867,800 17.4%
Capital Reserve-premium on 41,109,380 5.3% 41,109,380 7.6%
right shares
Revenue Reserve
General Reserve 62,000,000 8.1% 62,000,000 11.4%
Inappropriate profit 5,924,900 0.7% 12,013,459 2.2%
47
67,924,900 8.8% 74,013,459 13.6%
TOTAL CAPITAL AND 203,902,080 26.5% 209,990,639 38.6%
RESERVES
SUSPLUS ON 565,687,856 73.5% 334,256,432 61.4%

REVALUATION OF LAND
769,589,936 100% 544,247,071 100%
Internal and
Sustainable Growth
Rate
First we have to find Payout Rate and Retention Ratio;
Payout Rate:
Payout ratio = Dividend paid x 100
Net profit after tax

= 14,080,315 x100
36,939,631
Payout ratio = 38.1%
Retention Ratio:
Retention ratio (b) = 1 - Payout ratio
48
= 1 – 0.38
Retention ratio (b) = 0.62
Retention ratio indicates percentage change of net profit after tax retained by
company. The retention ratio of company is 96%.
Internal Growth Rate:
Internal growth rate = Return on assets (ROA) x b

1 – (ROA) x b
= 0.006 (0.62) x 100

1 – (0.006 x 0.62)
= 0.0037 x 100
Internal growth rate = 0.37%
Sustainable Growth Rate:
Sustainable growth rate = Return on equity x (b) x 100

1 – (ROE x b)
= 0.014 (0.62) x 100
1 – (0.014x0.62)
= 0.0087x100
Sustainable growth rate = 0.87%
49
Performa Income
Statement and
Balance Sheet

Performa Income Statement
PARTICULARS AMOUNT
Sales (913,370,379x0.89) 812,899,637

Cost of Sales ((75,729,109)x0.89) (690,398,907)
GROSS PROFIT (137,641,270x0.89) 122,500,730
OPERATING EXPENSES
Selling and Distribution cost (1,901,689x0.89) 1,692,503
Administrative Expenses (49,222,272x0.89) 43,807,822
50
(51,123,961x0.89) 45,500,325
OPERATING PROFIT (86,517,309x0.89) 77,000,405
Finance Cost (51,801,936x0.89) 46,103,723
Other Income/(Expenses) (4,698,820x0.89) 4,181,950
(39,414,193x0.89) 35,078,632
Workers’ Profit Participation Fund (1,735,769x0.89) 1,544,834
Workers’ Welfare Fund (738,793x0.89) 657,526
PROFIT BEFORE TAXATATION (36,939,631x0.89) 32,876,272
Provision for Taxation
Current (4,580,109x0.89) 4,076,297
Deferred (24,217,911x0.89) 21,553,941
(28,798,020x089) 25,630,237
PROFIT AFTER TAXATATION (8,141,611x0.89) 7,246,034

Performa Balance Sheet
In Balance Sheet we multiply each with 0.89
Assets Equities and Liabilities
FIXED ASSETS SHARE CAPITAL and

RESERVE
Property, plant and equipment 795,870,86 Share Capital 84,432,342
9
Capital work in Progress 363,943,104 Capital reserves-premium on 36,587,348
right shares
51
1,159,813,97 REVENUE RESERVE
3
General Reserve 55,180,000
In appropriated Profit 5,273,161
TOTAL CAPITAL and 60,453,161
RESERVE
CURRENT ASSETS CURRENT LIABILITIES

Stores, spare parts and loose tools 75,175,199 Trade and other payables 63,759,441
Stock in trade 194,871,541 Accrued mark-up 20,492,754
Trade debts 3,709,520 Short term borrowings-Secured 262,280,419
Loans and Advance 30,170,443 Current portion of long term 56,827,330
liabilities
Short term deposits and 329,113 Provision for Taxation 4,076,297
Prepayments
Other receivables 12,977,147 TOTAL 407,436,240
Taxation 21,957,986
Cash and Bank balances 8,502,539
TOTAL 347,693,489
NON CURRENT LIABILITIES
Long term finances-Secured 290,422,438
Liabilities against assets subject 107,240,001
to finance lease
Other loan-Secured 78,286,615
TOTAL 379,433,054
52
The company performance is good in 2005 but it is not as
better in 2004 and in 2006. Comparing the data of industry
with a company, company ratios are mostly in negative
which is showing that company is not in good reputation.
But company account receivable turnover is greater than
that of company and also the average collection period of
company is good than of industry.
53
54
By seeing overall performance of a company is in good
position in 2005, company should maintain its Current
Ratio so that it can become able to meet its short term
obligations, company should pay its liabilities in proper
way so it can maintain its Debt Ratio. Company should
decrease the average inventory so that it can maintain its
Inventory Turnover; company should increase its net sales
55
by taking good steps so that it can make more Revenue
from its total assets.
Considering these things the company can be able to
maintain a good level.
56

IBF Project Report Kohinoor Sugar Mills LTD

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IBF Project Report Kohinoor Sugar Mills LTD

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Name : Syed Owais Ali

Financial statement analysis:

1. Cross sectional analysis

Cross sectional analysis:

Time series analysis:

We do this analysis to;

• Know the strengths and weakness

STATEMENT OF ETHICS AND BUSINESS PRACTICE

Code of ethics is a pre-requisite for all directors and employees of

To become a market leader in the Industry setting out high quality

To produce/manufacture quality sugar and molasses by maintaining a

Company vs. Industry:

If we compare the result of this company with the result of industry, it is

Quick Ratio = Current Assets – Inventory – Prepaid Expenses

Company vs. Industry:

If we compare the result of this company with the result of industry, it is

Cash Ratio = Cash

Company vs. Industry:

If we compare the result of this company with the result of industry, it is

Working Capital = Current Assets – Current Liabilities

In this company working capital is (67,126,687).

Company vs. Industry:

If we compare the result of this company with the result of industry, it is

Debt Ratio = Total Liabilities or Total Debts

In this company debt ratio is 0.714. It means that total liabilities of a

Company vs. Industry:

If we compare the result of this company with the result of industry, it is

Debt to Equity Ratio:

Debt to Equity Ratio = Total Liabilities or Total Debts

Company vs. Industry:

If we compare the result of this company with the result of industry, it is

Time Interest Earned:

Time Interest Earned = Operating profit/EBIT

Company vs. Industry:

If we compare the result of this company with the result of industry,

Account Receivable Turnover:

Account Receivable Turnover = Net Credit Sales

In this company account receivable turnover is 48.71 times. It means that

Company vs. Industry:

If we compare the result of this company with the result of industry,

Average Collection Period:

Average Collection Period = 365

Company vs. Industry:

If we compare the result of this company with the result of industry,

Inventory turnover = Cost of Goods Sold

In this company inventory turnover is 3.54 days. It means that a company

Company vs. Industry:

If we compare the result of this company with the result of industry,

Fixed Assets Turnover:

Fixed Assets Turnover =

Company vs. Industry:

If we compare the result of this company with the result of industry,

Total Assets Turnover:

Total Assets Turnover =Net Sales

Company vs. Industry:

If we compare the result of this company with the result of industry,

Gross Profit Margin:

Gross Profit Margin =

Company vs. Industry:

If we compare the result of this company with the result of industry,

Operating Profit Margin: