FINANCIAL STATEMENT ANALYSIS OF TOYOTA-INDUS MOTORS COMPANY LIMITED

ABOUT INDUS MOTORS COMPANY

IMC was incorporated in 1989 as a joint venture company between the House of Habib of Pakistan, Toyota Motor Corporation and Toyota Tsusho Corporation of Japan. The Company manufactures and markets Toyota and Daihatsu brand vehicles in Pakistan. The main product offerings include several variants of the flagship Corolla in the passenger cars category, Hilux in the light commercial vehicles segment and Fortuner in Sport Utility Vehicle Segment.

ANALYSIS
Current assets and current liabilities of company have decreased, even then the Current Ratio has increased from 2.32 to 2.99. This is due to the more decrease in current liabilities as compared to current assets. Account Receivable Turnover ratio is 209.35. Which means that company recovers its receivables in less than 2 days. Whereas, company has also offered discounts of more than Rs. 7.5 million for the year 2013. Company converts its inventory to final goods for more than 7 times in a year. It means less than 50 days are required to convert inventory to final product. In 2012, this conversion time was almost 39 days. Gross Profit has decreased by 10.74% and Net Income has also decreased by 21.97%. This decrease is due to the sale of fixed assets, increase in administrative expenses, decrease in sales, increase in cost of goods sold, decrease in bank deposits and payment of deferred taxes.