TITLE OF THE PROJECT

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Olympia Spinning & Weaving Mills Ltd

ANALYSIS OF FINANCIAL STATEMENT

PRESENTED BY:
SAMIYA RAFIQ MALIK- 7694 MIZRA ZUBAIR-7118 ADEEL AHMED KHAN-4506 MUHAMMAD WAQAS-7081 SALMAN SHAHID-7258 DANISH AKHTER-5214 RIZWAN AHMED-5294 NASIR BALOCH-4726 ADEEL UMEDALI-5363

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DATA COLLECTION TECHNIQUES

The data will be collected form the financial statements of Olympia spinning & weaving mills ltd.

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About Sector
The businessmen were talking to LCCI President Zafar Iqbal Chaudhry during his visit to Kasur on Wednesday. Former LCCI President Mian Shafqat Ali and former Vice President Shahzad Ali Malik were also present in the meeting. They said that at a time when all the developed economies of the world were concentrating on value-addition to earn much-needed foreign exchange, the government in Pakistan was doing the other way round by allowing export of yarn. They said that the government would have to give this issue a serious thought otherwise the weaving sector would not be able to meet the export orders at hand.

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They said that recent rapid export of yarn to China had jacked up the commodity prices by 30 to 40 percent and due to this increase the weaving industry was facing a crisis-like situation and could be resulted in total closure of otherwise export earning sector.
They said that the exports were almost stagnant for the last three years and if a ban on export was not imposed immediately the situation could worsen further. They said that shortage of electricity and gas was already hitting the entire businesses hard and the increase in power prices would be adding fuel to fire therefore, the government should review its decision in the larger interests of the country.

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They said that businessmen knew well that 13.6 percent increase in January 1, 2010 was very much part of the agreement but the government should convince the IMF that time for promised increase was not ripe and could be put off for some time.
Zafar Iqbal Chaudhry said that it was a time for giving some incentive to the businessmen who were doing business in such pressing conditions but unfortunately the policies being evolved were not that business friendly and the government would have to take the stakeholders into confidence.

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Important Issue
20 August 2009 While representing Bank AlFalah Limited, A & Q got Banking Court to issue bailable warrants for CEO and directors of Olympia Spinning & Weaving Mills Limited for misappropriation of cotton bales that were pledged with Bank Al-Falah. 30 July 2009 While representing Askari Bank Limited, A & Q got Banking Court to issue bailable warrants for CEO and directors of Olympia Spinning & Weaving Mills Limited for misappropriation of cotton bales that were pledged with Askari Bank.

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Important Issue
Unavailability of working capital Continuous rising prices of cotton Increasing dollar rate Continuous increase in markup rates Double digit general inflation which increases cost of other inputs Fixed capital expenditure Net cash used in operating activities

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Financial Result
The high inflation, increasing energy and labor prices along with increase of other inputs prices is the major constraint for profitability, not even for our company but for the entire textile sector. Olympia Spinnings future is not well in term of financial aspect because of instability of financial performance .

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Problems
Suffering the loss from a long time. Not proper utilization of the assets .

Mismanagement system
Cases from the banks Low sales

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As Per The

http://www.csr-human`rights.org

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RATIO ANALYSIS

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