Introduction

The analysis and format of this publication was revamped in the year 2011 to incorporate changes in the
regulations and culture of corporate sector. Analysis of last three years (2009, 2010 & 2011) is carried out
on the new format. Also presented in this publication is three years mapped data (2006-2008). All listed
companies on Karachi Stock Exchange (KSE) have been classified in line with new economic categories.
The year-wise distribution of companies by economic group is as under: -
Table: 1 Distribution of companies by economic groups.
Economic Groups 2010 2011
1) Textiles 164 155
i) Spinning, weaving, finishing of textiles 145 137
ii) Made-up textile articles 6 6
iii) Other textiles n.e.s. 13 12
2) Food 54 54
i) Sugar 36 36
ii) Other food products n.e.s 18 18
3) Chemicals, chemical products and Pharmaceuticals 43 43
4) Other manufacturing n.e.s. 33 30
5) Other non-metallic mineral products 29 28
i) Cement 21 20
ii) Mineral products 8 8
6) Motor vehicles, trailers and auto parts 22 22
7) Fuel & Energy 18 18
8) Information, Communication & transport Services 13 13
9) Coke and refined petroleum products 9 9
10) Paper, paperboard and products 9 9
11) Electrical machinery and apparatus 8 8
12)Other services activities 9 10
Total: 411 399
The sum of Assets and Liabilities of a company may exhibit minor differences due to rounding off
separate items. Ratios and percentages have been worked out after rounding off the figures in thousands,
which may, therefore, slightly differ from ratios calculated on the basis of exact numbers in balance sheet.
The symbol appearing in the analytical tables stand for Not applicable or Not available.
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I Methodology
Methodology is based on Ratio Analysis, a powerful tool to analyze the financial statements of any company.
Ratio analysis measures inter-relationship between different sections of the financial statements. Ratios are
taken as guides that are useful in evaluating a companys financial position and operation and making
comparison with results in previous years or with others in the same industry. The primary purpose of ratio
analysis is to point out areas needing further investigation. All the ratios are calculated from the following
financial statements and relevant notes to accounts.
Balance Sheet
Profit and Loss accounts
Statement of changes in Equity
Cash Flow Statement
Total shareholders equity is computed as the sum of ordinary share capital plus reserve and surplus plus
unappropriated
profit/ (loss) and the revaluation. Analysis of Non-Financial sector used the following concepts
and definitions as given below.
II Concepts and Definitions
A. Non-Current Assets
1. Capital work in progress:
Work in process consists of the unfinished products in a production process which are not yet complete but
either being fabricated or waiting in a queue or storage. They must be accounted for as funds (capital) that have
been invested for future enhancement in production.
2. Operating fixed assets:
These are owned by an enterprise engaged in production of items (directly or indirectly); which will be
available for sale. These are not readily convertible into cash during the course of normal operations of an
enterprise. These assets are not subject to periodical exchange through sales and purchases. Fixed assets are of
permanent nature and are not normally liquidated or intended to turn into cash except in the form of
depreciation, which is added to the cost of goods sold. The following balance sheet items are included in the
category of fixed assets: -
(a) Real Estate
(i) Freehold and leasehold land
(ii) Factory and office buildings
(iii) Residential buildings