2011

FINANCIAL SATEMENTS
ANALYSIS
(D.G. K. Cement Co. Ltd.)
Assignment # 1
UCP, DEPARTMENT OF MANAGEMENT SCIENCES

UNIVERSITY OF CENTRAL PUNJAB

LAHORE, PAKISTAN.

Submitted To: Hafiz Tauseef Ahmad

Submitted By: JAVED IQBAL
L1S09MBEX2042

Investing and Financing Activities of D.G. Khan Cement

Company Limited.

Investing Activities:
Investing activities is a term for a broad group of activities that encompasses
any money spent on something likely to increase in value. Most commonly,
investing activities involve the purchase of stocks, bonds, certificates of
deposit, mutual funds, or real estate. Investment activities can also
include putting money into a savings account, or even investing in art or
other tangible goods that the individual believes is likely to rise in value.

It also includes money that the company has made (or lost) by investing its
excess cash in different investments (stocks, bonds, etc), money the
company has made (or lost) from buying or selling subsidiaries, and all the
money the company has spent on its physical property, such as plants and
equipment.

In the case of D.G. Khan Cement Company Limited we found that: (up to
June 30, 2010)

• It has spent Rs. 1995630000 and Rs.1079494000 in 2009 and 2010

respectively on Capital expenditure including purchase of property,
plant and equipment.

• Company has Net decrease in long term loans, advances and deposits
as Rs. 356,106000 and Rs. 8,489000 in the year 2009 and 2010
respectively.

• Company earned from Dividend received as Rs. 707,242000 and Rs.

766,398000 in 2009 and 2010 respectively.

• It has also earned from Interest received as Rs. 42,205000 and Rs.
2,555000 in the year 2009 and 2010 respectively.

Financing Activities:
An accounting of funds related to the financing of the company which is
reported on the cash flow statement of a company's annual report. This is
where the company reports the money that it took in and paid out in order to
finance its activities. In other words, it calculates how much money the
company spent or received from its stocks and bonds. This includes any
dividend payments that the company made to its shareholders, any money
that it made by selling new shares of stock to the public, any money it spent
buying back shares of its stock from the public, any money it borrowed, and
any money it used to repay money it had previously borrowed.

Financing activities involve long-term liabilities and stockholders’ (or owner’s)

equity. Financing activities are reported in its own section of the financial statement
known as the statement of cash flows (SCF) or cash flow statement.

Examples of financing activities that involve long-term liabilities include the

issuance or redemption of bonds. An increase in bonds payable is reported as a
positive amount in the financing activities section of the SCF. The positive amount
signifies a source of cash, or that cash was provided by issuing additional bonds. A
decrease in bonds payable will be reported as a negative amount in the financing
activities section of the cash flow statement. A negative amount connotes that cash
was used to repurchase or redeem the corporation’s bonds.

In the case of D.G. Khan Cement Company Limited we found that: (up to
June 30, 2010)

• It has received from the issuance of share capital as Rs. 1,014,164000

and Rs. 1,216,998000 in the year 2009 and 2010 respectively.

• We also found the Proceeds from long term finances as Rs.

300,000000 and Rs. 3,050,000000 In 2009 and 2010 respectively.

• It has made Repayment of long term finances as Rs. 2,989,690000 and

Rs. 5,104,383000 in the year 2009 and 2010 respectively.

• It has also made Repayment of liabilities against assets subject to

finance lease in the year 2009 as Rs. 1,141000.

• Company paid Dividend as Rs. 533000 and Rs. 25000 in the year 2009
and 2010 respectively.

• We also note that D.G.K Cement Limited has used Rs. 1,677,200000
and Rs. 837,410000 in the year 2009 and 2010 respectively in
Financing Activities.
For reference Purpose I have coped original cash flow statement below here
to reflect the amounts used in Financing and Investing Activities.

D.G. Khan Cement Company Limited

CASH FLOW STATEMENT FOR THE YEAR ENDED JUNE 30,

2010