BERGER PAINTS

Statement Of Financial Position

Thousands Thousands
2017 2016
Non-current assets
Property, plant and equipment 1,138,904 1,034,257
Intangibles 44,767 48,532
Investments - related 74,568 52,557
Long term loans 50,929 46,554
Long term deposits 20,774 17,463
long term loans to related party 40,000 0
Deferred taxation 1,859 0
Total Non-current Asset 1,371,801 1,199,363
Current assets
Stores 16,924 15,422
Stock in trade 1,018,236 734,991
Trade debts 1,249,455 1,223,283
Loans and advances 102,524 91,541
Trade deposits and short term prepayments 30,387 27,725
Other receivables 13,732 113,900
Taxation - net 299,289 181,780
Short term investments 42,275 20,000
Cash and bank balances 44,356 95,277
Total current Asset 2,817,178 2,503,919
Total Assets 4,188,979 3,703,282
Share capital and reserves

Authorised share capital

25,000,000 ordinary shares of Rs.10 each 250,000 250,000

Share capital 181,864 181,864

Reserves 724,418 638,038
906,282 819,902

Surplus on revaluation of fixed assets 521,363 542,313

Non-current liabilities
Long-term financing 138,263 1,350
Staff retirement benefits 119,977 103,925
Liabilities against assets subject to finance 0 0
Deffered taxation 0 5,308
258,240 110,583
Current liabilities
Trade and other payables 1,472,877 1,314,784
Accrued finance cost 13,394 11,566
Current maturity of long-term financing 68,088 40,600
Current maturity of liabilities against assets
subject to finance lease
Short term borrowings 948,735 863,534
2,503,094 2,230,484
2,761,334 2,341,067

Total Liabilities & Equity 4,188,979 3,703,282

Contingencies and commitments

ERGER PAINTS
ent Of Financial Position

Thousands Thousands Thousands

2015 2014 2013

1,045,323 579,585 595,229

44,467 49,677 52,263
12,528 12,810 4,086
32,472 22,731 20,839
17,925 17,196 16,284
0 0 0
36745 156,457 162,901
1,189,460 838,456 851,602

7,056 6,288 6,952

717,550 810,836 875,915
1,093,739 1,083,418 827,388
79,877 63,528 57,023
25,829 10,857 13,724
23,050 48,734 40,674
209,166 115,023 126,742
10,018 0 18,883
191,738 255,010 219,527
2,358,023 2,393,694 2,186,828
3,547,483 3,232,150 3,038,430

250,000 250,000 250,000

181,864 181,864 181,864

444,701 385,317 280,734
626,565 567,181 462,598

559,773 184,878 186,311

41,950 147,550 50,000

76,420 54,535 60,692
849 4,006 5,583
0 0 0
119,219 206,091 116,275
1,062,745 930,528 952,876
27,379 40,164 37,481
105,600 105,600 65,000

2,434 1,584 2,091

1,043,768 1,196,124 1,215,798
2,241,926 2,274,000 2,273,246
2,361,145 2,480,091 2,389,521

3,547,483 3,232,150 3,038,430

 BERGER Paints
Statement Of Profit & Loss
2017 2016 2015 2014 2013
Sales - net 5,122,570 5,081,749 4,301,830 4,509,031 4,167,303
Cost of sales 3,632,609 3,534,578 3,146,498 3,411,771 3,238,930
Gross profit 1,489,961 1,547,171 1,155,332 1,097,260 928,373

Distribution costs 1,009,310 919,830 681,425 708,993 595,123

Administrative expenses 185,199 216,505 180,459 181,522 153,741
Operating profit 295,452 410,836 293,448 206,745 179,509

Other income 51,356 135,695 34,115 117,968 97,244

346,808 546,531 327,563 324,713 276,753

Other charges 5,917 134,922 12,621 9,665 11,270

EBIT 340,891 411,609 314,942 315,048 265,483

Finance cost 74,960 89,214 148,354 166,086 164,115

Profit before taxation 265,931 322,395 166,588 148,962 101,368

Taxation 63,820 137,618 57,435 51,454 41,350

Net income 202,111 184,777 109,153 97,508 60,018

265931
 BERGER paints Ratios
2017 2016 2015 2014
d 1 Current ratio 1.1255 1.1226 1.0518 1.0526
d 2 Quick ratio 0.7119 0.7862 0.7286 0.6933
d 3 Inventory turnover 3.5092 4.7102 4.3424 4.1753
d 4 Inventory turnover in days 104.0116 77.4918 84.0557 87.4180
d 5 Account recievable turnover 0.2439 0.2407 0.2542 0.2403
d 6 A/R turnover in days 89.0278 87.8631 92.8011 87.7012
d 7 Average payment period 147.9928 135.7718 123.2805 99.5503
d 8 Asset turnover 1.2229 1.3722 1.2126 1.3951
d 9 Fixed asset turnover 3.7342 4.2370 3.6166 5.3778
d 10 Debt Ratio 0.6592 0.6322 0.6656 0.7673
d 11 Debt to equity ratio 1.9342 1.7186 1.9903 3.2977
d 12 Coverage ratio 4.5476 4.6137 2.1229 1.8969
d 13 Gross profit Margin 29% 30% 27% 24%
d 14 Operating profit Margin 6% 8% 7% 5%
d 15 Net profit Margin 4% 4% 3% 2%
d 16 ROA 5% 5% 3% 3%
d 17 ROE 14% 14% 9% 13%
18 Price to book value 2.29 1.16 1.25
19 Price earning ratio #REF! 8.5515748 13.589583333
20 Cash conversion cycle 45.0465 29.5831 53.5763 75.5690
21 Earning per share 11.11 10.16 6 5.36

Market price per share 86.884 81.5375

1.2000

1.1255 1.1226
1.0000 1.0518 1.0526
0.9620
0.8000
0.7862
0.7119 0.7286
0.6000 0.6933 Current ratio
0.5736 Quick ratio
0.4000

0.2000

0.0000
2017 2016 2015 2014 2013
 0.2000

0.0000
2017 2016 2015 2014 2013

35%

30%
30%
29%
25% 27%
24%
20% 22%
% margin 15% Gross profit Margin
Operating profit Margin
10% Net profit Margin

5% 8%
6% 7%
4% 4% 5% 4%
0% 3% 2% 1%
2017 2016 2015 2014 2013
Year

6.0000

5.0000 5.3778
4.8935
4.0000 4.2370
No. of times

3.7342 3.6166 Asset

3.0000 turnover

2.0000 Fixed
1.2229 1.3722 1.2126 1.3951 1.3715 asset
turnover
1.0000

0.0000
1 2 3 4 5
Year

16%
14%
14%
14% 13%

12%
10% 9% 9%
Percentages

8%
ROA
6%
ROE
4% 5% 5%
2% 3% 3%
2%
0%
2017 2016 2015 2014 2013
Years
 ROA
6%

Perc
ROE
4% 5% 5%
2% 3% 3%
2%
0%
2017 2016 2015 2014 2013
Years
 2013 Industry Average
0.9620 1.1
0.5736 0.8
5
3.6686
72
Cash conversion cycle
99.4916
80.0000
0.1985 0.123
70.0000 75.5690
72.4681 60
120 60.0000 64.5787
107.3811
1.3715 1.3 50.0000 53.5763

No. of days
4.8935 5 40.0000
45.0465
40.0000
0.7864 0.6 30.0000
29.5831
3.6824 1.5 20.0000
1.6177 3 10.0000
22% 32 0.0000
4% 9 2017 2016 2015 2014 2013
1% 4.5 Years
2% 4
9% 15

64.5787 40
3.24 6

160.0000
147.9928
135.7718
140.0000
123.2805
0.9620 120.0000 107.3811
99.5503
100.0000
A/R
Current ratio 92.8011 turnover
80.0000
89.0278 87.8631 87.7012 in days
0.5736 Quick ratio DAYS
60.0000 72.4681

40.0000 Average
payment
period
20.0000

0.0000
2013
2017 2016 2015 2014 2013
Year
 40.0000 Average
payment
period
20.0000

0.0000
2013
2017 2016 2015 2014 2013
Year

Inventory turnover in days

120.0000

100.0000
104.0116
Gross profit Margin 99.4916
Operating profit Margin 80.0000 87.4180
84.0557
77.4918 Inventory
No. of days

Net profit Margin

60.0000 turnover
in days
40.0000

20.0000

0.0000
2017 2016 2015 2014 2013
Year

4.0000 3.6824
No. of times

3.5000 3.2977
4.8935
3.0000
Asset 2.5000 Debt
turnover 1.9903 Ratio
1.9342
2.0000 1.7186
Fixed Debt to
1.3715 asset 1.5000 equity
turnover ratio
1.0000 0.6656 0.7673 0.7864
0.6592 0.6322
0.5000
5 0.0000
2017 2016 2015 2014 2013
Year

9%

ROA
ROE

2%

2013
 ROA
ROE

2%

2013
le Earning per share
1211.11
10.16
10
64.5787
8
6
6 5.36
Earning per share
PKR

40.0000
4 3.24

2
0
2013 2017 2016 2015 2014 2013
Year
 Vertical analysis
Non-current assets 2017 2016 2015
Property, plant and equipment 27.1881% 27.9281% 29.4666%
Intangibles 1.0687% 1.3105% 1.2535%
Investments - related 1.7801% 1.4192% 0.3532%
Long term loans 1.2158% 1.2571% 0.9154%
Long term deposits 0.4959% 0.4716% 0.5053%
long term loans to related party 0.9549% 0.0000% 0.0000%
Deferred taxation 0.0444% 0.0000% 1.0358%

Current assets
Stores 0.4040% 0.4164% 0.1989%
Stock in trade 24.3075% 19.8470% 20.2270%
Trade debts 29.8272% 33.0324% 30.8314%
Loans and advances 2.4475% 2.4719% 2.2517%
Trade deposits and short term prepayments 0.7254% 0.7487% 0.7281%
Other receivables 0.3278% 3.0757% 0.6498%
Taxation - net 7.1447% 4.9086% 5.8962%
Short term investments 1.0092% 0.5401% 0.2824%
Cash and bank balances 1.0589% 2.5728% 5.4049%

Total Assets 100.0000% 100.0000% 100.0000%

Share capital and reserves

Authorised share capital

25,000,000 ordinary shares of Rs.10 each

Share capital 4.3415% 4.9109% 5.1266%

Reserves 17.2934% 17.2290% 12.5357%

Surplus on revaluation of fixed assets 12.4461% 14.6441% 15.7794%

Non-current liabilities
Long-term financing 3.3006% 0.0365% 1.1825%
Staff retirement benefits 2.8641% 2.8063% 2.1542%
Liabilities against assets subject to finance 0.0000% 0.0000% 0.0239%
Deffered taxation 0.0000% 0.1433% 0.0000%

Current liabilities
Trade and other payables 35.1608% 35.5032% 29.9577%
Accrued finance cost 0.3197% 0.3123% 0.7718%
Current maturity of long-term financing 1.6254% 1.0963% 2.9768%
Current maturity of liabilities against assets 0.0000% 0.0000% 0.0000%
subject to finance lease 0.0000% 0.0000% 0.0686%
Short term borrowings 22.6484% 23.3181% 29.4228%

100.0000% 100.0000% 100.0000%

 2014 2013
17.9319% 19.5900%
1.5370% 1.7201%
0.3963% 0.1345%
0.7033% 0.6858%
0.5320% 0.5359%
0.0000% 0.0000%
4.8406% 5.3614%

0.1945% 0.2288%
25.0866% 28.8279%
33.5200% 27.2308%
1.9655% 1.8767%
0.3359% 0.4517%
1.5078% 1.3387%
3.5587% 4.1713%
0.0000% 0.6215%
7.8898% 7.2250%

100.0000% 100.0000%

5.627% 5.985%
11.921% 9.239%

5.720% 6.132%

4.565% 1.646%
1.687% 1.997%
0.124% 0.184%
0.000% 0.000%

28.790% 31.361%
1.243% 1.234%
 3.267% 2.139%
0.000% 0.000%
0.049% 0.069%
37.007% 40.014%

100.000% 100.000%
 Horizontal Analysis
2017 2016 2015 2014 2013
Non-current assets
Property, plant and equipment 191% 174% 176% 97% 100%
Intangibles 86% 93% 85% 95% 100%
Investments - related 1825% 1286% 307% 314% 100%
Long term loans 244% 223% 156% 109% 100%
Long term deposits 128% 107% 110% 106% 100%
long term loans to related party 40000% 0% 0% 0% 0%
Deferred taxation 1% 0% 23% 96% 100%
161% 141% 140% 98% 100%
Current assets
Stores 243% 222% 101% 90% 100%
Stock in trade 116% 84% 82% 93% 100%
Trade debts 151% 148% 132% 131% 100%
Loans and advances 180% 161% 140% 111% 100%
Trade deposits and short term prepayments 221% 202% 188% 79% 100%
Other receivables 34% 280% 57% 120% 100%
Taxation - net 236% 143% 165% 91% 100%
Short term investments 224% 106% 53% 0% 100%
Cash and bank balances 20% 43% 87% 116% 100%
129% 115% 108% 109% 100%
Total Assets 138% 122% 117% 106% 100%
Share capital and reserves

Authorised share capital

25,000,000 ordinary shares of Rs.10 each 100% 100% 100% 100% 100%

Share capital 100% 100% 100% 100% 100%

Reserves 258% 227% 158% 137% 100%

Surplus on revaluation of fixed assets 280% 291% 300% 99% 100%

Non-current liabilities
Long-term financing 277% 3% 84% 295% 100%
Staff retirement benefits 198% 171% 126% 90% 100%
Liabilities against assets subject to finance 0% 0% 15% 72% 100%
Deffered taxation 5308%
222% 95% 103% 177% 100%
Current liabilities
Trade and other payables 155% 138% 112% 98% 100%
Accrued finance cost 36% 31% 73% 107% 100%
Current maturity of long-term financing 105% 62% 162% 162% 100%
Current maturity of liabilities against assets
subject to finance lease 0% 0% 116% 76% 100%
Short term borrowings 78% 71% 86% 98% 100%
Total current liabilities 110% 98% 99% 100% 100%
Total Liabilities 116% 98% 99% 104% 100%

Total Liability and Equity 138% 122% 117% 106% 100%

 Statement of cash flows
Rupees in thousands 2018 2017
Cash flow from operating activities
Profit before taxation 147,211 265,931
Adjustments for non cash and other items:
Depreciation on property, plant and equipment 79,778 73,404
Amortization on computer software 4,660 6,783
Gain on disposal of property, plant and equipment -9,363 -2,150
Provision (reversed) / charged against slow moving stock - net -2,902 6,350
Insurance claim -2,581 -9,704
Provision reversed for impairment in capital work in progress -8,059 -13,941
Provision for doubtful debts 990 61,623
Bad debts written off 25,954 31,796
Provision for staff retirement and other long term benefits 28,321 29,373
Finance cost 88,142 74,960
Provision for doubtful loans 1,765
Impairment charged on Goodwill 4,487
Mark-up on term deposit receipts -6,638 -3,851
204,554 254,643
Operating profit before working capital changes 351,765 520,574
Working capital changes
(Increase) / decrease in current assets:
Stores, spare parts and loose tools 1,152 -1,502
Stock-in-trade 5,227 -289,595
Trade debts - unsecured 57,604 -119,591
Loans and advances -90,083 -13,783
Trade deposits and short term prepayments -20,973 -2,662
Other receivables -111 109,840
-47,184 -317,293
Increase / (decrease) in current liabilities:
Trade and other payables -142,243 132,165
Cash generated from operations 162,338 335,446

Finance cost paid -85,071 -73,132

Taxes paid -23,373 -188,496
Staff retirement and other long term benefits paid -11,672 -8,335
Long term loans - due from employees -12,275 -1,575
Long term deposits - net -5,110 -3,311
-137,501 -274,849
Net cash generated from operating activities 24,837 60,597

Cash flow from investing activities

Fixed capital expenditure -166,390 -169,634
Long term loan to related party -40000
Sale proceeds from disposal of property, plant and equipment 14,712 4,656
Markup received on term deposit and long term loan 6,699 3,883
Short term investments -5,195
Net cash used in investing activities -144,979 -206,290

Cash flow from financing activities

Long term financing - net -68,088 164,401
Dividend paid -23,960 -137,750
Net cash (used in) / generated from financing activities -92,048 26,651
Net decrease in cash and cash equivalents -212,190 -119,042
Cash and cash equivalents at beginning of year -504,379 -385,337
Cash and cash equivalents at end of year -716,569 (504,379
 Statement of cash flows
2016
Cash flow from operating activities
Profit before taxation 322,395
Adjustments for non cash items:
Depreciation on property, plant and equipment 101,381
Amortization on computer software 31 5,572
Gain on disposal of property, plant and equipment -4,433
(Reversal of provision) / provision charged against slow moving stock -12,346
Insurance claim -103,284
Operating assets written off during the year 4,599
Provision for impairment in capital work in progress 22,000
Provision for export rebate 10,000
Provision for doubtful debts 23,964
Provision for staff retirement and other long term benefits 26,951
Finance cost 34 89,214
163,618
Operating profit before working capital changes 486,013
Working capital changes:
(Increase) / decrease in current assets:
Stores and spares -8,366
Stock in trade -5,095
Trade debts -153,508
Loans and advances -8,134
Trade deposits and short term prepayments -1,896
Other receivables 2,434
Increase in current liabilities: -174,565
Trade and other payables 263,276
Cash generated from operations 574,724
Finance cost paid -104,919
Taxes paid -57,645
Staff retirement and other long term benefits paid -1,522
Long term loans - net -17,612
Long term deposits - net 462
-181,236
Net cash generated from operating activities 393,488
Cash flow from investing activities
Fixed capital expenditure -129,336
Investment in related parties -39,200
Sale proceeds from disposal of property, plant and equipment 5.2 7,218
Short term investments -9,982
Net cash used in investing activities -171,300
Cash flow from financing activities
Repayment of long term financing -105,600
Dividend paid -29,424
Short term borrowings - net 350,000
Lease rentals paid -3,391
Net cash generated from / (used in) financing activities 211,585
Net increase / (decrease) in cash and cash equivalents 433,773
Cash and cash equivalents at beginning of year -802,030
Cash and cash equivalents at end of year -368,257
 2015

166,588

62,987
5,210
-1,643
10,379

12,191
20,880
148,354
258,358
424,946

-768
82,907
-14,948
-16,349
-14,972
17,953
53,823
121,360
600,129
-161,139
-97,828
-4,089
-9,741
-729
-273,526
326,603

-92,447

6,655
-10,018
-95,810
-105,600
-33,802
-108,000
-2,307
-249,709
-18,916
-783,114
-802,030
 2014 2013

Cash flow from operating activities

Profit before taxation 148,962 100,283
Adjustments for non cash items:
Depreciation on property, plant and equipment 63,726 63,109
Amortization on computer software 2,586
Loss\(gain)on disposal of fixed assets 22 -7,793
Provision against slow moving stock 3,842 84,328
Provision for doubtful debts 36,392 47,007
Provision for doubtful deposits 3,221
Provision for doubtful recievables 2,500
Gain on transfer of equity investment to available for sale - -2,294
Provision for doubtful advances 1,385
Provision for staff retirement benefits 14,958 18,255
Finance cost 166,086 164,115
Liabilities no longer payable written back -53,586 -4,122
Impairment of goodwill 4,000
238838 368,899
Operating profit before working capital changes 387,800 469,182
Working capital changes
(Increase) / decrease in current assets:
Stores and spares 664 3,826
Stock-in-trade 61,237 27,638
Trade debts -292,422 -180,130
Loans and advances -9,726 -14,259
Trade deposits and short-term prepayments 1,482 -1,070
Other receivables -10,560 2,226
249325 -161,769
(Decrease) / increase in current liabilities:
Trade and other payables 31,183 -139,445
Cash generated from operations 169,658 167,968
Finance cost paid -163,403 -167,642
Income taxes - net -33,291 -12,402
Staff retirement benefits paid -12,811 -2,161
Long term loans -1,892 -5,402
Dividend paid -9,038
Long term deposits -912 2,979
221347 -184,628
Net cash outflow from operating activities -51,689 -16,660

Cash flow from investing activities

Capital expenditure -51,642 -25,646
Addition in intangible - -1,000
Sale proceeds on disposal of property, plant and equipment 3,539 9,405
Short term investments 18,883 1,197
Net cash outflow from investing activities -29,220 -16,044

Cash flow from financing activities

Repayment of long term financing -65,000 -105,000
Proceeds from long term financing 203,150
Short term borrowings - net 14,000 84,000
Lease rentals paid -2,084 -1,884
Net cash inflow/(outflow) from financing activities 150,066 -22,884
Net increase/(decrease) in cash and cash equivalents 69,157 -55,588
Cash and cash equivalents at the beginning of the year -852,271 -796,683
Cash and cash equivalents at the end of the year 38 -783,114 -852,271