SKY GROUP

Topic:-
Trend Analysis, Commonsize Analysis, Index Analysis and Ratio Analysis of
Nishat (Chunian) Limited.Annual Report 2009.

Group Member:-
Muhammad Shahid GS9-102
Usman Alam Khan GS9-115

Submitted To:-
Mr. Saqib Habib

MBA II SEMESTER

MINHAJ UNIVERSITY
GULBERG CAMPUS
LAHORE
Company:-
Nishat (Chunain) Limited
Profit & Loss Account
For the year ended 30 june 2009
Trend Commonsize
2009 2008 Analysis Analysis Index Analysis
Rs. Rs. % Change If Sale 100% Current Base
2009 2008 2009 2008
% % % %
Sales 9,964,545,471 9,138,298,052 9.04 100.00 100.00 109.04 100.00
(--) Cost of Sales (CGS) 8,473,362,242 8,097,418,309 4.64 85.04 88.61 104.64 100.00
Gross Profit 1,491,183,229 1,040,879,743 43.26 14.96 11.39 143.26 100.00
(--) Operating Exps
Distribution Cost 291,799,017 224,932,148 29.73 2.93 2.46 129.73 100.00
Administrative Expx 105,656,507 83,975,591 25.82 1.06 0.92 125.82 100.00
Other Operating Exps 16,467,327 6,489,259 153.76 0.17 0.07 253.76 100.00
Total Operating Exps 413,922,851 315,396,998 31.24 4.15 3.45 131.24 100.00
1,077,260,378 725,482,745 48.49 10.81 7.94 148.49 100.00
(+) Other Operating Income 172,619,698 56,518,520 205.42 1.73 0.62 305.42 100.00
EBIT 1,249,880,076 782,001,265 59.83 12.54 8.56 159.83 100.00
(--) Financial Cost 1,081,536,433 705,821,520 53.23 10.85 7.72 153.23 100.00
EBT 168,343,643 76,179,745 120.98 1.69 0.83 220.98 100.00
(--) Provision for Taxation 65,000,000 58,000,000 12.07 0.65 0.63 112.07 100.00
Net Profit / EAT 103,343,643 18,179,745 468.45 1.04 0.20 568.45 100.00

No. of ordinary shares 82,720,922 82,720,922

EPS(Earning per share) 1.25 0.22

Balance Sheet
As on 30 June 2009
EQUITY & LIABILITIES 2009 2008 Trend Commonsize
Rs. Rs. Analysis Analysis Index Analysis
% Change If total equity and Current Base
liability 100%then
2009 2008 2009 2008
Share Capital and Reserves % % % %
Authorised share capital 1,750,000,000 800,000,000 118.75 14.56 7.38 218.75 100.00
Issued,subscribed share capital 1,240,813,830 752,008,380 65.00 10.33 6.94 165.00 100.00
Reserves 1,861,657,101 1,848,185,650 0.73 15.49 17.05 100.73 100.00
Total Equity 3,102,470,931 2,600,194,030 19.32 25.82 23.99 119.32 100.00
Long-term/Non-Current Liabilities
Long term financing 3,181,905,316 2,586,389,516 23.02 26.48 23.86 123.02 100.00
Deffered tax liability 1,552,252 4,640,017 -66.55 0.01 0.04 33.45 100.00
Total non-current liabilities 3,183,457,568 2,591,029,533 22.86 26.49 23.91 122.86 100.00
Current Liabilities
Trade and other payables 454,523,239 378,616,664 20.05 3.78 3.49 120.05 100.00
Accrued mark-up 171,523,906 119,822,439 43.15 1.43 1.11 143.15 100.00
Short term borrowings 3,500,578,041 3,190,716,138 9.71 29.13 29.44 109.71 100.00
Current portion non-current libility 1,604,255,864 1,957,737,473 -18.06 13.35 18.06 81.94 100.00
Total current liabilities 5,730,881,050 5,646,892,714 1.49 47.69 52.10 101.49 100.00

TOTAL EQUITY AND LIABILITIES 12,016,809,549 10,838,116,277 10.88 100.00 100.00 110.88 100.00
 ASSETS 2009 2008 Trend Commonsize
Rs. Rs. Analysis Analysis Index Analysis
% Change If total asset Current Base
100% then
2009 2008 2009 2008
Non-Current/Fixed Assets % % % %
Fixed Assets 5,927,347,672 6,259,570,155 -5.31 49.33 57.76 94.69 100.00
Investment in subsidiary- at cost 1,437,891,880 211,732,800 579.11 11.97 1.95 679.11 100.00
Long term loans 3,537,975 8,129,672 -56.48 0.03 0.08 43.52 100.00
Long term security deposits 1,082,942 895,942 20.87 0.01 0.01 120.87 100.00
Total Fixed Assets 7,369,860,469 6,480,328,569 13.73 61.33 59.79 113.73 100.00
Current Assets
Stores, spare parts & loose tools 333,919,097 307,096,654 8.73 2.78 2.83 108.73 100.00
Stock in trade 2,183,103,730 2,447,462,949 -10.80 18.17 22.58 89.20 100.00
Trade debts 1,516,728,987 1,311,338,154 15.66 12.62 12.10 115.66 100.00
Loan and advances 372,218,019 113,811,784 227.05 3.10 1.05 327.05 100.00
Short term deposits & prepayments 487,724 936,821 -47.94 0.00 0.01 52.06 100.00
Other receivables 211,045,658 158,895,492 32.82 1.76 1.47 132.82 100.00
Cash and bank balances 29,445,865 18,245,854 61.38 0.25 0.17 161.38 100.00
Total Current Assets 4,646,949,080 4,357,787,708 6.64 38.67 40.21 106.64 100.00

TOTAL ASSETS 12,016,809,549 10,838,116,277 10.88 100.00 100.00 110.88 100.00

Ratio Analysis:-

1 Profitability Ratios
2 Investors Ratios
3 Liquidity Ratios/ Short term solvency ratios
4 Activity Ratios
5 Leverage Ratio/ Long term solvency ratios

1- Profitability Ratios
2009 2008
1.1 Gross profit ratio= [Gross profit*100/Net sales]%
= 14.965 % 11.390 %

1.2 Net profit ratio= [Net profit*100/Net Sales]%

= 1.037 % 0.199 %

1.3 Return on capital employed= EBIT or OP/Equity*100

= 40.287 % 30.075 %

1.4 Return on equity= EAT or N.P/Equity*100

= 3.331 % 0.699 %

2- Investors Ratios
2009 2008
2.1 Earning per share (EPS)= Net Profit/No.of ordinary shares
EPS= 1.189999999986 Per/Rs 0.22 Per/Rs

Total No. Ordinary shares= 86843397.47899 82635204.545455

2.2 Price to earining ratio(P/E)= [MPS/EPS] Times
= 5.025 Times 45.455 Times

2.3 Dividend per share(DPS)= Dividend/No.of ordinary shares

= 2.643 Per/Rs 2.545 Per/Rs

2.4 Dividend Cover= [PAT or Net Profit/Dividend] Times

= 0.450 Times 0.086 Times

2.5 Earining Yield Ratio= [EPS*100/MPS]%

= 19.9 % 2.2 %

2.6 Dividend Yield Ratio= [DPS*100/MPS]%

= 26.43 % 25.45 %

3- Liquidity Ratios/ Short term solvency ratios

2009 2008

3.1 Current Ratio= [Current Assets /Current Liabilites] Times

= 0.811 Times 0.772 Times

3.2 Liquid ratio/ Acid test ratio/ Quick ratio= [Current assets - Inventory - Prepayments]time
Current Liabilities
= 0.430 Times 0.338 Times

4- Activity/Working Capital Ratios

2009 2008

4.1 Inventory turnover ratio= [Cost of Sales or CGS/Avg. Inventory] Times

= 3.6598 Times 3.3085 Times

Avg. Inventory= Rs 2315283339.5 2447462949

If days then= [365/Inventory Turnover Ratio]

= 99.734 days 110.322 days

4.2 Debtors turnover ratio= [Credit Sales/Avg. Debtors] Times

= 6.2317 Times 6.2155 Times

Avg.Debtors= Rs 1599004145.5 1470233646

If days then= [365/Debtors Turnover Ratio]

= 58.571 days 58.724 days

4.3 Debtors collection period= [Avg. Debtors*365/Credit Sales] days

= 58.57 days 58.72 days

4.4 Creditors turnover ratio= [Credit Purchases/Avg.Creditors] Times

= 13.223 Times 13.778 Times

Avg.Creditors= Rs 416569951.5 378616664

If days then= [365/Creditors Turnover Ratio]

= 27.603 days 26.492 days
4.5 Creditors collection period= [Avg. Creditors*365/Credit Purchases] days
= 27.603 days 26.492 days

2009 2008
4.6 Assets turnover ratio= [Sales/Assets] Times
= 1.59 Times 1.76 Times

Assets= Non-Current Assets + Current Assets - Current Liabilities

= 6285928499 5191223563

4.7 Working Capital Cycle= [Inventory days + debtors collection period - creditors period]
= 130.70 days 142.55 days

5- Leverage Ratio/ Long term solvency ra

2009 2008
5.1 Debt to assets or gearing ratio= [Debt*100/Total assets] %
= 50.644 % 49.912 %

Debt= Non- Current Liabilities

Total Assets= Equity + Non-Current Liabilities
Rs= 6285928499 5191223563

5.2 Debt Equity ratio= [Debt/Equity] x:y

= 1.03 x:y 1.00 x:y

5.3 Interest covr/Debt service ratio= [PBIT/Interest] Times

= 1.156 Times 1.108 Times

PBIT= Operating profit or profit before interest tax

Rs= 1249880076 782001265
Interest= Financial cost for the year
Rs= 1081536433 705821520