PROFESSIONAL PROJECT INDUS MOTOR COMPANY LIMITED

Mansoor Humayun Student No. 623/ BBA-Hons 8th Semester (Evening) 2006-2010

Submitted to the

Department Of Management Sciences UNIVERSITY OF EDUCATION, LAHORE OKARA CAMPUS

Indus Motor Company Ltd (Financial Analysis)

Project Supervisor: Mr. Rai Imtiaz Hussain

Submitted by: Mansoor Humayun 623-E BBA(Hons) 8th Semester 2006-2010

02/03/2010

In the Name of Allah the Most Gracious, the Most Beneficent and the Most Merciful

Read (O Prophet,) in the name of yours Rub, Who created. Created man from a clot of congealed blood. Read; and your Lord is Most Generous, Who taught knowledge by the pen; taught man what he did not know.
(Al-Alaq, Surah # 96, Ayats 1-4, Para # 30)

Without their knowledge. I would not have the goals.” iii . wisdom and guidance. To my little and lovely Nephew.DEDICATION I would like to dedicate my work. I have to strive and be the best to reach my dreams! To my Siblings for their gentle encouragement and valuable support. “As a little token of gratitude for my Loving Parents. The wisdom and love of my parents enables me to strive towards a legacy of honor.

Mansoor Humayun iv .ACKNOWLEDGEMENT I find no words at my command to express my deepest sense of gratitude to the Almighty ALLAH. Obviously this achievement was not possible without all of you. At this occasion I can’t forget my parents for their guidance at the crucial moments of my life. It is also a matter of immense pleasure for me to express my gratitude to the Faculty of Department of Management Sciences and professional project’s evaluation Committee of the University of Education for giving us their precious time and tried their best as helpful as possible. the most Merciful and the most Beneficent. I am much obliged to my loving Parents whose prayers have enabled me to reach this stage. I wish to thanks all my Friends and Classmates who really helped me by giving suggestions and critical review of the manuscript. the most Gracious. He is the one who gave me courage to do this. Rai Imtiaz Hussain who directed me well and was always available to clear my doubts and misunderstandings through out this project. who gives me the talent to complete this task successfully. Next I owe my bottomless thanks to our esteemed resource person Mr.

FORWARDING SHEET This professional project of Mansoor Humayun (Student No 623) entitled “Indus Motor Company Limited (Financial Analysis)” has been completed under by the guidance and supervision for the fulfillment of requirement for the 8th Semester of BBA (Hons) degree program of University of Education Lahore. Okara campus. Dated: _______________ __________________ Supervisor v .

Project does not assume any liability for any financial or other loss resulting from this document in consequence of undertaking this activity. Therefore the content of this document should not be relied upon for making any decision. due care.DISCLAIMER The purpose of the project is to introduce the subject matters and provide a general idea and financial information about the Indus Motors Company Limited. omission and misprinting between the electronic and printed version of document. investment or otherwise. Although. Financial Analysis of IMC doest not accept any responsibility for the validity and correctness of the information published on its project. All the material included in this document is based on data/information gathered from various sources and is based on certain assumptions. The content of the information does not bind “PROJECT MAKER” in any legal or other form. the contained information may vary due to any change in any of concerned factors and the actual results may differ substantially from the presented information. Project does not also assume any rectifications. diligence and reasonable efforts has been taken to compile this project. errors. vi .

4.1 1.5 VISION 2.6 FACTORY/REGISTERED OFFICE vii .3 HILUX 2.8 STRATEGIC OBJECTIVES 2.2.4.2 INDUSTRY TYPE 2.4 INTRODUCTION REASON FOR CHOOSING THE ORGANIZATION AIMS AND OBJECTIVES OF THE PROJECT AUTOMOBILE INDUSTRY IN PAKISTAN CURRENT SITUTATION OF CAR INDUSTRY CHAPTER NO 2 2.4 LEGAL ADVISORS 2.2 HISTORY PRODUCT LINE 2.4.3.2 CUORE 2.7 CORE VALUES 2.1 COROLLA 2.4.1 2.Table of Contents Page No EXECUTIVE SUMMARY 1 4 5 5 6 7 CHAPTER NO 1 1.3 AUDITORS 2.3.1 BOARD OF DIRECTORS 2.3.4 COMPANY’S INFORMATION 2.2.3 MAJOR INVESTORS 2.5 REGISTRAR 2.3.1 NAME OF COMPANY 2.3.3.4.3 INDUS MOTOR COMPANY LIMITED 9 10 11 11 12 12 12 12 12 13 13 13 13 14 15 16 16 16 17 17 17 18 COMPANY’S PROFILE 2.3.3.2 1.4 SLOGAN 2.3 1.2.6 MISSION 2.4.2 BANKERS 2.

1.7 4.2.4.1.Page No 2.1 STRENGTHS 3.4 TECHNOLOGICAL FACTORS 3.4.3 BOSTON CONSULTING GROUP MATRIX 3.3.2.8 COMPANY SECRETARY 2.1.6 4.3 SOCIAL FACTORS 3.2 ECONOMICAL FACTORS 3.5 4.2 CASH COWS 3.3 OPPORTUNITIES 3.2 4.4 4.4 THREATS 3.1.3 QUESTION MARK 3.2.7 CHIEF FINANCIAL OFFICER 2.1 4.2 WEAKNESSES 3.4.1 SWOT ANALYSIS COMPANY’S ANALYSIS 19 20 20 22 23 23 24 25 25 26 26 27 28 28 29 29 29 3.4 DOGS 3.9 AUDIT COMMITTEE MEMBERS 18 18 18 CHAPTER NO 3 3.1 STARS 3.3.8 NET SALES INCOME STATEMENT ANALYSIS 31 32 33 34 35 36 37 38 39 CONDENSED INCOME STATEMENT COST OF GOODS SOLD GROSS PROFIT OPERATING EXPENSES OPERTAING PROFIT OTHER OPERATING EXPENSES OTHER OPERATING INCOME viii .3.4 TOYOTA COROLLA BCG MATRIX CHAPTER NO 4 4.3.3 4.2 PEST ANALYSIS 3.2.1 POLITICAL FACTORS 3.

4 5.2.3 DEBT RATIO 6.5 5.6 5.3 ACID TEST RATIO 6.2 5.4 CASH RATIO 6.2 FIXED CHARGED COVERAGE RATIO 6.4 DEBT EQUITY RATIO 6.1.2 CURRENT RATIO 6.12 TAXATION 4.7 BALANCE SHEET ANALYSIS 45 46 47 48 49 50 51 52 CONDENSED BALANCE SHEET CURRENT ASSETS CURRENT LIABLITIES TOTAL FIXED ASSETS TOTAL ASSETS LONG TERM DEBT TOTAL LIABILITIES AND EQUITY CHAPTER NO 6 6.2.11 PROFIT BEFORE TAXATION 4.2.3 SHORT TERM LIQUIDITY 6.9 PROFIT BEFORE INTEREST AND TAX 40 41 42 43 44 4.1 5.2.1.13 PROFIT AFTER TAXATION CHAPTER NO 5 5.2 LONG TERM DEBT PAYING ABILITY 6.3.1 NET WORKING CAPITAL 6.2.10 FINANCE COST 4.1 TIME INTEREST EARNED RATIO 6.5 CASH FLOW FROM OPERATIONS RATIO 6.1 RATIO ANALYSIS 53 54 54 55 56 57 58 59 59 60 61 62 63 64 64 65 SHORT TERM DEBT PAYING ABILITY 6.3.1.3 5.2 ACCOUNTS RECEIVABLE TURNOVER ix .5 DEBT TO TANGIBLE NETWORTH 6.Page No 4.1 DAY’S SALES IN A/R 6.1.1.

8 RETURN ON EQUITY 6.1 NET PROFIT MARGIN 6.4.4 PROFITABILITY INDEX 6.5 OPERATING ASSETS TURNOVER 6.3 DAY’S SALES IN INVENTORY 6.2 TOTAL ASSETS TURNOVER 6.4.4 OPERATING INCOME MARGIN 6.4.4.9 GROSS PROFIT MARGIN 6.5.4 DIVIDEND YIELD RATIO 66 67 68 68 69 70 71 72 73 74 75 76 77 77 78 79 80 CONCLUSION 81 REFRENCES 83 ANNEXURES 85 x .4.4.5.3 DIVIDEND PAYOUT RATIO 6.5 INVESTOR’S ANALYSIS 6.3.4.3 RETURN ON ASSETS 6.1 EARNING PER SHARE 6.Page No 6.4.7 SALES TO FIXED ASSETS 6.3.5.5.2 PRICE EARNING RATIO 6.6 RETURN ON OPERATIN ASSETS 6.4 INVENTORY TURNOVER 6.4.

LONG TERM DEBT PAYING ABILITY 112 V.II PERCENATGE COMPARATIVE CHAIN BASE INCOME STATEMENT I. PROFITABILITY INDEX 116 VII. INVESTOR’S ANALYSIS 119 xi . SUMMARIZED BALANCE SHEET II.III PERCENTAGE COMPARATIVE 2005 BASE INCOME STATEMENT I.Table of Annexure Page No I.II PERCENTAGE COMPARATIVE CHAIN BASE BALANCE SHEET II.IV VERTICAL COMMON SIZE INCOME STATEMENT 95 93 91 89 87 II.III PERCENTAGE COMPARATIVE 2005 BASE BALANCE SHEET II. SUMMARIZED INCOME STATEMENT I. SHORT TERM DEBT PAYING ABILITY 110 IV.I COMPARATIVE CHAIN BASE BALANCE SHEET II. SHORT TERM LIQUIDITY 114 VI.IV VERTICAL COMMON SIZE BALANCE SHEET 98 101 104 106 108 III.I COMPARATIVE CHAIN BASE INCOME STAEMENT I.

6% to 35. 20. 17.9% to 34.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Executive Summary Indus Motor Company is one of the Automobile Companies which formed with the help of house of Habib. Toyota Motor Corporation. consolidation of resources and maintaining SCA. But recently company is in stabilization mode trying to improve its functional area.69 billion Share holders' equity: up 9. 37.5% to Rs. 10.6 Manpower: down 6. Toyota Tsusho Corporation.5% to Rs. In my Opinion it is the best move made by IMC to survive the financial holocaust. 2009 Vehicle Sales: down 30.5% to Rs.4 billion Earning per share: down 39.1% to Rs.1.298 units Net Revenues: down 8. It manufactures and imports cars and enjoys a healthy share in the market. ability to produce quality cars with respect to low cost and research and development in hybrid and bio fuel cars.3 billion UNIVERSITY OF EDUCATION OKARA CAMPUS 1 .276 units Vehicle Production: down 28. To sustain its lead IMC must maintain strategic competitive advantage which is its production strength. It is competing with the Honda. Nissan.7% to 1.6% to Rs.893 employees Total assets: up 50.9 billion Profit after tax: down 39. Operating Highlights: For the Year ended June 30. Suzuki and Mitsubishi.

48 22.45 0.92 45.00 172.09 24.55 29.30 0.15 2008 5.22 0.09 78.02 27.10 60.08 32.44 187.83 1.79 2007 6.88 2006 4.20 28.00 94.15 1.78 1284.98 0.16 2009 6.66 15.20 14.90 26.00 100.36 UNIVERSITY OF EDUCATION OKARA CAMPUS 2 .83 1.49 1.56 1.36 0.89 2.93 3) Short term Liquidity a) Day’s Sales in Accounts Receivable b) Accounts Receivable Turnover c) Day’s Sales in Inventory d) Inventory Turnover Times Days Times Days 13.86 18.89 11.66 2) Long Term Debt Paying Ability a) Times Interest Earned b) Fixed Charged Coverage c) Debt Ratio d) Debt Equity Ratio e) Debt to Tangible Net worth Times Times % % % 25.89 15.05 0.28 0.99 187.40 48.86 33.65 1.28 0.01 5.65 0.32 10.00 45.38 (0.46 1.86 1.23 31.49 14.20 23.51 1.80 42.44 1.09 50.03 14.69 1.38 19.00 152.23 1284.21) 0.60 63.12 0.57 37.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 1) Short Term Debt Paying Ability a) Net Working Capital b) Current Ratio c) Acid Test Ratio d) Cash Ratio e) Cash Flow from Operations Ratio Times Rs (bn) Times Times Times 2005 3.71 78.07 0.

75 9.80 188.13 11.11 56.62 13.53 11.63 25.70 5.77 27.29 18.14 5) Investor’s Analysis a) Earning Per Share b) Price Earning Ratio c) Dividend Payout Ratio d) Dividend Yield Ratio Rs Times % % 18.27 24.37 63.66 7.03 2.01 16.74 9.76 52.61 6.06 20.67 35.66 34.26 29.17 9.71 164.70 3.86 36.40 2009 3.66 1.17 7.63 33.73 10.77 144.45 6.53 9.53 3.75 37.38 2008 5.49 17.93 8.51 9.02 5.93 2007 7.94 11.28 UNIVERSITY OF EDUCATION OKARA CAMPUS 3 .02 20.11 33.29 35.26 12.73 2006 7.28 34.52 2.15 6.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4) Profitability Ratio a) Net Profit Margin b) Total Assets Turnover c) Return on Assets d) Operating Income Margin e) Operating Assets Turnover f) Return on Operating Assets g) Sales to Fixed Assets h) Return on Equity i) Gross Profit Margin % Times % % Times % Times % % 2005 5.22 4.28 9.25 17.83 6.32 11.23 16.53 42.62 6.38 2.89 4.53 9.97 30.

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After gathering data and relevant information I ended with three business sectors. Finally the project draws conclusions based on my analysis about the current situation and the prospects of the Indus Motor Company Limited . The performance evaluation is based on historic and current available data about the operations of the company. cash flow situation and produce informative report usable by the users of the statements assessing the financial position. I choose best companies in their respective class. both in Pakistan and Worldwide. but after applying hindsight I decided to go with Automobile industry and the organization I selected was “Indus Motor Company Limited”.1 REASON FOR CHOOSING THE ORGANIZATION: When I was informed that I would have to do the financial analysis of last five years of any listed company than the primary challenge for me was to choose the organization on which I can start my working. I started brainstorming and came up with many well known organizations having large operations. Under the constantly increasing competition in the business market. performance and adaptability of the organization. regulators and other players in the stock market. Automobile industry.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 1. 1. these analyses portray a very clear and informative picture to the investors. UNIVERSITY OF EDUCATION OKARA CAMPUS 5 . shareholders. Textile industry and Tobacco industry.2 AIMS AND OBJECTIVES OF THE PROJECT: The main objectives and aims of this project are to analyze and evaluate the overall performance of the company by applying different conceptual models and discuss the liquidity. It was bit difficult and confusing for me to select the organization.

Vauxhall. Then there was a long gap until the early 90’s when Indus Motor Company was established to manufacture Toyota vehicles in Pakistan. By the end of 70s practically all automobile assembling in Pakistan ceased.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 1. A regular car industry started in the country in 1983.s Dewan Farooque Motors set up a plant to manufacture Hyundai and Kia vehicles in Pakistan. Changing models. came into existence. Chevrolet. improving fuel efficiency. Since then the market has changed all together. established by General Motors of USA. The indigenized parts in these vehicles did not exceed 20% with only exception of Bed Ford trucks with a deletion level of 80%. when Suzuki commenced production eyeing the small and LCV car segment of 800cc-1000cc range. a public limited company and the pioneer in the industry. and introduced Suzuki car which targeted the middle-income group (constituting the larger segment of the market) by providing an affordable car. National Motors assembled passenger cars as well as commercial vehicles which carried “General Motors” brands such as Bedford. Soon after Honda Atlas came with the Civic and Gandhara Nissan entered the market with Sunny.3 AUTOMOBILE INDUSTRY IN PAKISTAN: Auto market is one of the largest segments in world trade. cutting costs and enhancing user comfort without compromising quality are the most important challenges of the auto industry in a fast globalizing world. After struggling through UNIVERSITY OF EDUCATION OKARA CAMPUS 6 . The automotive assembling in Pakistan started in 1950 when National Motors Limited. In the late 90.

Nexus Automotive with Chevrolet imported vehicles and others imported Chinese vehicles such as Karakoram Motors. 1. Mini & Rolls Royce by Dewan Motors.4 CURRENT SITUTAION OF CAR INDUSTRY: Locally produced cars have taken an unexpected drastic downturn to the extent of frustrating all future growth prospects and projections. in due comparison with the figures of year 2007 for September to December period. All this obviously has also adversely impacted the UNIVERSITY OF EDUCATION OKARA CAMPUS 7 . Roma Automobiles and Foton by Dewan Innovations Limited along with Pak Cherry Automobiles.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT nineties. As a result the production has also gone down culminating with its impact on supply schedule. Mercedes and Audi have also launched their brands in Pakistan catering to the very upper niche. Lately Few new market players entered the market such as Gandhara Nissan again with now the imported Nissan range of vehicles. Sigma Motors made its mark with Rover recently. European and Korean manufacturers. According to the current figures. a decade full of uncertainties and frequent policy the Pakistani Auto Industry has been able to achieve double digit growth consistently since the last 4 years. This downturn has come at a crucial time as most of the manufacturing had just increased their investment in the expansion projects and vending industry had made equally huge investment to complement the capacity expansion exercise. The local vendors have now to face the curtailed orders. Dewan Mushtaq Motors with imported Mitsubishi range of vehicles. both import and local. The industry operates under franchise and technical cooperation agreements with Japanese. Porsche. which may most hit the smaller ones with closures. Apart from these the big brands of the auto industry also entered the Pakistani market such as BMW . the sales of cars has gone down by 15 percent.

The intension was obviously to enhance government revenue.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT government revenues in substantial terms. With low custom duty rates for CBUs and unprecedented import of used cars.5 percent and imposed from 1st September 2007. the cost of financing has also increased interest rates from nearly 8 to 15 percent. One billion (9%) when September to December data is compared with last year. The uplift in the car market is also suffering due to stringent regulations announced by State Bank of Pakistan recently for car financing. Last year. government announced a withholding @ 5 percent on purchase of cars which was reduced to 2. the local industry is putting utmost effort to survive and looking at the government not to deviate from the pre-announced policy and ensure strict compliance of rules on import of used from cars and stop further release of smuggled vehicles. Levy of such tax is a deviation from the spirit of preannounced policy thus causing anxiety to thee auto manufactures. The government has suffered a revenue loss of Rs. the ECC approved the five years policy (AIDP) for auto sector prior to announcement of budget. The current situation however. UNIVERSITY OF EDUCATION OKARA CAMPUS 8 . has proved a reversal in collection of the revenue. In the budget 2007-08. Moreover.

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But recently Company is in Stabilization mode trying to improve its functional area. vehicles in Pakistan through its dealership network. It manufactures and Imports Cars and enjoys a healthy share in the market. Indus Motor is the country's second largest auto manufacturer. Its core business is to manufacture and market UNIVERSITY OF EDUCATION OKARA CAMPUS 10 . 1990. IMC is engaged in sole distributorship of Toyota and Daihatsu Motor Company Ltd. having an assembling capacity of 55. after the Pak Suzuki Motors. The shares of company are quoted on the stock exchanges of Pakistan.000 units per annum. Toyota Motor Corporation and Toyota Tsusho Corporation have 25 % stake in the company equity. IMC's production facilities are located at Port Bin Qasim Industrial Zone near Karachi in an area measuring over 105 acres. consolidation of resources and maintaining SCA. IMC is competing with the Honda. The company was incorporated in Pakistan as a public limited company in December 1989 and started commercial production in May 1993. Nissan.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 2. Indus Motor Company’s plant is the only manufacturing site in the world where both Toyota and Daihatsu brands are being manufactured. Toyota Motor Corporation Japan (TMC) and Toyota Tsusho Corporation Japan (TTC) for assembling.1 HISTORY: Indus Motor Company (IMC) is a joint venture between the House of Habib. Suzuki and Mitsubishi. progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 01. To sustain its lead IMC must maintain Strategic Competitive Advantage which is its Production Strength. The majority shareholder is the House of Habib. ability to produce quality cars with respect to low cost and Research and Development in Hybrid and Bio Fuel Cars.

To ensure highest level of productivity world-renowned Toyota Production Systems are implemented. the company also sells auto parts and accessories. Prado. Toyota Hilux and 3 variants of Daihatsu Cuore.0D Saloon UNIVERSITY OF EDUCATION OKARA CAMPUS 11 . 2. The company also offers six different imported vehicles namely Toyota Camry. Hilux and Hiace.2. In addition.0D 6) 2. Land Cruiser. Heavy investment was made to build its production facilities based on state of art technologies. Major contributor to the revenue is Corolla.2 PRODUCT LINE: 2. having a contribution of 66.5% in company's sales.1 COROLLA: Corolla includes six variants of cars which are: 1) XLi 2) GLi 3) Corolla Altis M/T 4) Corolla Altis A/T 5) 2. RAV. Its product line includes 6 variants of newly introduced Toyota Corolla.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT cars.

INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 2.3 HILUX: Hilux consist of following car.2.2 INDUSTRY TYPE:  Automobile Industry (Cyclical) UNIVERSITY OF EDUCATION OKARA CAMPUS 12 .1 NAME OF COMPANY:  Indus Motor Company Limited. 1) 4 x 2 S/Cab 2.3.2.2 CUORE: Cuore consist of 3 variants of cars that are as under: 1) CX 2) CX CNG 3) CX A/T 2. 2.3 COMPANY’S PROFILE: 2.3.

b) Toyota Motor Corporation Japan.3.4 SLOGAN: 2. delighting customers with a wide range of products and solutions in the automobile industry with the best people and the best technology. 2.5 VISION: To be the most respected and successful enterprise.6 MISSION: UNIVERSITY OF EDUCATION OKARA CAMPUS 13 .INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 2. (TTC) 2.3. (TMC) c) Toyota Tsusho Corporation Japan.3.3 MAJOR INVESTORS: a) House of Habib.3.

Best Employer. reflected in ACT#1 Action. The Indus Team is committed to ACT so that it achieves the #1 position in the Auto Industry in:       Respect & Corporate image.3. Production & Sales. Profitability. Customer Satisfaction.7 CORE VALUES:    Customer Satisfaction.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT IMC’s mission is Company’s Slogan. UNIVERSITY OF EDUCATION OKARA CAMPUS 14 . Quality & Safety. Team Work. Ethics and Practices. Commitment and Teamwork to become #1 in Pakistan. 2.

b) Enhancing the quality and reach of our 3S Dealership Network. Achieving Market Leadership by Delivering Value to Customers: a) Following our “Customer First” philosophy in manufacturing and providing high quality vehicles and services that meet the needs of Pakistani customers. b) Providing a continuous learning environment that promotes individual creativity and teamwork. b) Implementing Toyota Production System. its Dealers and Vendors. Optimizing Cost by Kaizen a) Fostering a Kaizen culture and mindset at IMC. 4. including product development. Bringing Toyota Quality to Pakistan a) Maximizing QRD (Quality. c) Raising the bar in all support functions to meet Toyota Global Standards. 3. b) Transferring technology and promoting indigenization at IMC and Vendors. UNIVERSITY OF EDUCATION OKARA CAMPUS 15 .8 STRATEGIC OBJECTIVES: 1. c) Removing waste in all areas and operating in the lowest cost quartile of the industry. improving service and customer care.3. Reliability and Durability) by built-in engineering.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 2. Respecting our People a) Treating employees as the most important sustainable competitive resource. 2. c) Employing customer insight and feedback for continuous corporate renewal.

Koji Hyodo (Vice Chairman) 3) Mr. Parvez Ghias (Chief Executive Officer) 5) Mr. d) Building competitive value through mutual trust and mutual responsibility between the Indus Team and the Company. Road Safety.2 BANKERS:  Askari Bank Limited. Ali S. Ilyas Suri 8) Mr. Mitsuhiro Sonoda 9) Mr. Habib (Chairman) 2) Mr.g. especially in areas that are strategic to both societal and business needs e. Becoming a Good Corporate Citizen a) Following ethical business practices and the laws of the land. diversity and inclusion without discrimination. etc.4 COMPANY’S INFORMATION: 2. Mohamedali R. Technical Education. UNIVERSITY OF EDUCATION OKARA CAMPUS 16 .1 BOARD OF DIRECTORS: 1) Mr. 2. Environment Protection. M. Habib 7) Mr.4. Yosuki Tsubaki 2. Yutaka Arae 4) Mr. b) Engaging in philanthropic and social activities that contribute to the enrichment of Pakistani society. 5.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT c) Supporting equal employment opportunities. c) Enhancing corporate value and respect while achieving a stable and longterm growth for the benefit of our shareholders. Farhad Zulficar 6) Mr.4.

4 LEGAL ADVISORS:     K. State Life Building 1-C Chundrigar Road. Habib Metropolitan Bank Limited. NIB Bank Limited. Chartered Accountants.A. Brohi & Company Mansoor Ahmed Khan & Co. MCB Bank Limited.4. Soneri Bank Limited.3 AUDITORS: F. Ferguson & Co. Karachi 2. 2.4. National Bank of Pakistan.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT                Bank Alfalah Limited. Habib Bank Limited.4. Citibank N. United Bank Limited. HSBC Bank Middle East Limited. Bank Al-Habib Limited. Standard Chartered Bank (Pakistan) Limited. Barclays Bank PLC.5 REGISTRAR: UNIVERSITY OF EDUCATION OKARA CAMPUS 17 . 2. Mahmud & Co. The Bank of Tokyo-Mitsubishi UFJ Limited. The Royal Bank of Scotland Limited. Sayeed & Sayeed Co.

Karachi . Habib (Committee Chairman) Farhad Zulficar Yutaka Arae Mitsuhiro Sonoda Ahson Tariq (Secretary) UNIVERSITY OF EDUCATION OKARA CAMPUS 18 . 3-Jinnah C.6 FACTORY/REGISTERED OFFICE: Plot No.4.com 2.4.8 COMPANY SECRETARY:  Mustafa Hasan Lakhani 2.7 CHIEF FINANCIAL OFFICER:  Muhammad Faisal 2. Phones (PABX) (92-21) 34720041-48 (UAN) (92-21) 111-TOYOTA (869-682) Fax (92-21) 34720056 www.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Noble Computer Services (Private) Limited.75350. Society.Z/1/P-1. Main Shahrah-e-Faisal.4. Port Qasim Authority.4.9 AUDIT COMMITTEE MEMBERS:      Mohamedali R. 2. Mezzanine Floor.toyota-indus.W. H. N. House of Habib Building (Siddiqsons Tower). Karachi.

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1. Whenever the company launches the new car in the market it has always the great support of the already market orientation so the car introduced by it easily covers the introduction stage.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 3. An effective strategy will take advantage of an organizations strengths and opportunities at the same time it minimizes or overcomes weaknesses and threats. 3. Regular assessment and SWOT analysis is thus given importance. People have a lot UNIVERSITY OF EDUCATION OKARA CAMPUS 20 . an organization must assess its internal strengths and weaknesses in relation to the external opportunities and threats it faces.1 STRENGTHS: Strengths are the core competencies of any organization & as far as Indus Motor Company Limited is concerned the core competencies of this organization are:  Toyota has become the generic name in the Pakistan market.1 SWOT ANALYSIS: In formulating sound strategic plans.

INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT of trust for their name and this is why Toyota is the leader in automobile industry. Extensive training has enabled the employees to perform outstandingly. This can be seen by analysis of the financial reports of the previous years.  Toyota is the only company having the most sophisticated network of dealerships where customers are treated by professional dealers.  Toyota is proud to have a successful team of competent managers and skilled workers. Also Toyota offered many variants of colors.  Toyota vehicles are made according to the Pakistani environment. The price of spare parts is comparatively low and availability all over the country has proved to be beneficial for the company. Toyota is the hot selling diesel engine car in Pakistan and is the only company offering the diesel engine in this category of cars.  Toyota is a financially strong company. There UNIVERSITY OF EDUCATION OKARA CAMPUS 21 . while offers many variants of its vehicles.  Toyota vehicles have got a much stronger resale value than other car in Pakistan. No doubt the other cars are available but Toyota has an edge because it has learnt various conditions of the Pakistan environment and people.OD car.  Toyota has an edge over others because it is the only automobile company in Pakistan.  Toyota has a great strength for its 2. This is why people prefer to buy a Toyota.  The important edge over the company editors are the ample availability of the spare parts in the markets. So new additions and changes are proving to be successful.

 The company feels that one weakness is the changing policies of the government and also the 30% cash L/C margin.  A lot of effort is pull into the sales forecasting because of the changing political and economic scenarios.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT are twenty five dealers in Pakistan where sales. This results in customers complaints sometimes. assembly and delivery takes some more time.  There are some weaknesses in the dealership network. Interior dimensions are less and heavy body and small engine sometimes create problems in hilly areas. service and spare parts are offered. This has lead to an adverse environment.  There is some weakness in the case of ergonomic interior of Toyota corolla as well. leading to convenience for the customers. This is because CKD kits are ordered four months before and once they arrive from Japan. Because of dependency on Toyota’s principles delivery of cars is done after 4-6 months.  The company is besieged with internal operating problems which are not very serious. 3.1. UNIVERSITY OF EDUCATION OKARA CAMPUS 22 . The dealers sometimes tend to deviate from the recommended course of action and principles of Toyota. The power steering is not speed sensitive and the air conditioning system in severe heat is in-effective.2 WEAKNESSES: Weaknesses are the lacking points which every organization must avoid in order to make its operational effectiveness. For this reasons inventory has to be kept low.

1. This should be started again. the threats are prevailing such as: UNIVERSITY OF EDUCATION OKARA CAMPUS 23 . when we study all our weaknesses critically & deeply than we come to know that we can convert our weaknesses into strengths. The opportunities for IMC are:  Export is a major opportunity for Toyota Indus Motors. Vehicles were exported to Bangladesh just once in order to prove the plant capacity and efficiency of the company.  Success of the manufacturing of Daihatsu cuore is a major opportunity for Toyota to excel further careful planning and the right time to launch the new car can prove to be a success. So basically these are our opportunities.  Toyota should also try to lower its price of Corolla in the segment where Honda city has penetrated.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 3. Shaheen Force and the dignitaries where corolla has an opportunity to deal with the business markets along with dealing in consumer markets. When we see the possible threats for IMC.  The contract with the government departments e.  It can offer discounts to Government departments and large organizations on purchase of its vehicles in more quantities.3 OPPORTUNITIES: In fact.1. Motorway Police.g. still bank has threats in various sectors. 3.  Toyota can do better by focusing on segments much more than presently being done.4 THREATS: Though Indus Motor Company Limited has a strong footing and maintain a good number of loyal customer.

still the changing customer needs and trends can prove to be a threat. UNIVERSITY OF EDUCATION OKARA CAMPUS 24 .  Import of re-conditioned cars is also considered as a threat for the company. still it faces some threat from competitors especially Honda. Devaluation of rupee adverse shifts in foreign exchange rates.  A major threat is the changing political and economic scenarios of Pakistan. Moreover the company is threatened by the ongoing rate of 30% cash L/C margin.1 automobile company.2 PEST ANALYSIS: PEST analysis is the analysis which we tend to perform in order to analyze the external as well as the internal environment in which organization is currently working. Changing government policies affect the company’s performance.  Even though Toyota keeps a careful eye on the changing trends. Honda has adopted aggressive strategies for capturing the market. 3.  The planned car manufacturing plants of Hyundai and Daewoo can prove to be tough competition for Toyota if they are successful. trade policies of government’s is a threat. PEST analysis revolves around the four things.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT  Even though Toyota enjoys the position of being the no.

INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 3. So there is going to be a Rs. 80. Just a half year back the general sales tax has been increased to 16 percent promoting more price like. In 1997 the ministry of industries and production recommended that duty on CKD be reduced form 40 percent to 35 percent while the car sales should be exempted from CVT and the deletion program should be accelerated. 1. Inflation is a major economic factor which has affected the Pakistan’s Automobile industry including Toyota.1 POLITICAL FACTORS: Government at all levels is an important component of the general environment. Previously the automobile industry had to cope with more than 77000 yellow cabs that were imported during the yellow cabs scheme and was later turned lose to the market after a change of government and the policy scrapped.00. Like other motor companies Toyota is also affected by the current changing policies of the government. all the previous taxes and duties were rolled into one import duty of 30 percent on CKD kits as well as CBU vehicles. The current inflation UNIVERSITY OF EDUCATION OKARA CAMPUS 25 .000 to Rs.2 ECONOMICAL FACTORS: Government economic policies at the federal level clearly influence the ability of the industries to survive and progress. The Pakistan Government’s inconsistent policies. No organization or industry is immune from the various decisions made by the government. In 1996 the sales tax on CBU was increased cost to 18 percent. 3.2. frequent change in duty tariff and smuggling are main reasons of unstable market conduction.2. In 1995.000 increase in vehicles.

UNIVERSITY OF EDUCATION OKARA CAMPUS 26 . the resulting increase has been negligible when compared to that of created by technology. Toyota believes in honoring the language and spirit of the law of every nation and undertakes open and fair corporate activities to be a good corporate citizen of the world.2. Toyota respects the culture and customs of every nation and community and contributes to the economic and social development through corporate activities in the communities. This is the reason that Toyota is proud of the fact that Pakistani society considers Toyota vehicles to be a symbol of reliability. luxury and a have to be trusted. After three years of “Still Market”.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT rate is 21% to 23% annually prices in the auto market were deregulated in 2000 and grew almost 20 percent to 30 percent per annum to allow Toyota to bring their prices to profitable levels. 3. The recent increase of 16 percent sale tax is however. Its vehicles are regarded as a status symbol. Despite changes in the means used to motivate people and the variety of incentives that have been offered to stimulated production.4 TECHNOLOGICAL FACTORS: Technology is of particular importance because it has been and continues to be the main source of increases in productivity.2. It is the guiding principles of Toyota which has strongly developed trust in the people. Toyota takes pride in being the most trusted name all over Pakistan. the market picked up. going to result in a price increase.3 SOCIAL FACTORS: Society holds a global or summary belief that an organization is proper and worthy of support. 3. comfort.

3 BOSTON CONSULTING GROUP MATRIX: The BCG matrix measures market attractiveness by market growth rate and it assesses the firm’s ability to compete by its relative market share. Dogs. which assures long term anti corrosion and an extra thick color coat that is better than all others. low maintenance cost and high resale value has won it the support and loyalty of its customers. BCG matrix consists of four factors which are:     Stars. ensuring that “New Car” look “New” for years to come.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT The locally produced Toyota Corolla introduced in May 1993 is now in its 17 th year. total immersion in a catholic Electro-deposit primer. The BCG matrix assumes the causal relationship between market share and profitability. side impact bars which protect vehicles for side collisions have however been routinely fitted in all Corolla variants since inception. Product diversification and a wide range of colors has allowed customers to exercise greater options and has sustained this threat. Its excellent quality. As a result of the “Safety First” commitment. UNIVERSITY OF EDUCATION OKARA CAMPUS 27 . 3. for the first time in Pakistan SRS “Secondary Restrain System” Airbags have been introduced in the GLI Automatic and GLI manual models. Cash cows. The process of making a car more durable includes “Pitospaate Primer”. Question mark. The total company’s product range comprises of 8 variants of Corolla and 5 variants of Hilux.

3. it will become a Cash Cow when the market growth rate would decline.1 STARS: Toyota Corolla of IMC falls into the category of Stars.3. 3.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 3. but also consume large amounts of cash because of its high growth rate. In UNIVERSITY OF EDUCATION OKARA CAMPUS 28 .2 CASH COWS: If IMC’s Toyota Corolla could maintain its large market share. However companies usually invest in star units as they are feeling that the future of their company depends on the success or failure of that particular unit or product. The portfolio of a diversified company always should have stars that will become the next cash cows and ensure future cash generation. therefore the cash in each direction approximately nets out. It generates large amounts of cash for the organization and usually segments in which management can make additional investments and earn attractive returns. It generates large amount of cash because of its strong relative market share. Typically needs this cash to support its rapid and significant growth.

3. The unit can be very successful in the market or it can be simply being ruined of. It is due to the large competition of in this category of cars. 3.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT case of Indus Motor Company Limited. a question mark is such a business unit about which you are not about the success or failure.4 DOGS: This category of BCG matrix includes the product that has no market share as well as consuming the large amount of cash instead of generating the cash. As the Suzuki Aulto. UNIVERSITY OF EDUCATION OKARA CAMPUS 29 .3.4 TOYOTA COROLLA BCG MATRIX: If we analyze the position of Toyota Corolla by using the Boston consulting group matrix in a market than it will show the following result. 3. Mehran. Santro and some imported vehicles like Vitz are already present in the market.3. The company wants to dissolve that product.3 QUESTION MARK: According to Boston consulting group matrix. the Hilux is a cash cow for the company which earns a lot of cash for the company and company utilize this cash to run its future units like Toyota Corolla. In case of IMC the question mark is actually the Cuore.

0D Saloon CASH COWS SE Saloon GLi QUESTION MARK Xli 1.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT STAR 2.3 DOGS UNIVERSITY OF EDUCATION OKARA CAMPUS 30 .0D 2.

.

484.423.777 2.324. The gross profit is also showing the same trend up to FY 2007 but there is a massive decrease in gross profit in FY 2008 which was due to the increase in cost of goods sold.481 2. The reason behind low production is the instable environment of Pakistan in last year.013 1.952 2.648.178 2.500. Than gross profit again decrease in FY 2009.464 2007 (Rupees in '000) 39.541.843 3.701 2008 41.063.535 4.957 1.061. The details and trends are all discussed below in the item wise analysis of summarized income statement of the company and the annexed notes form an integral part of this income statement.845 2009 37.034 2.186 1.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4.706.046.221 2.147.1 CONDENSED INCOME STATEMENT: Indus Motor Company Limited Condensed Income Statement For The Year Ended June 30.601.226 4.102 It is clearly seen that net sales of the company is showing an increasing trend in all the years except that of FY 2009 which was caused due to the low productions of cars.256 4.711 2.072.487 3.302.646 2006 35.864.848.629 3.306 4.501.604 2.385.290.134.440. 2005 Net Sales Gross Profit Operating Profit Profit before Taxation Net Profit 27. UNIVERSITY OF EDUCATION OKARA CAMPUS 32 .830 3.594 3.236.229.665.745. It is due to the low sales of the company.

00% 100.05% in FY 2008.85% 6.559.85% whereas the increase was 6.691 2. FY 2008 and FY 2009 as compare to FY 2005.864.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4.00% 100.63 billions.52% 150.52%. In the term of percentage sales have increased by 27.2 NET SALES: 2005 2006 2007 (Rupees in '000) 2008 2009 Net Sales Comparative Chain Base 27.226 41. while there is a decrease of 8. The sales have increased 41.236.423.66% 10. UNIVERSITY OF EDUCATION OKARA CAMPUS 33 .601.19% in FY 2007.05% -8.66% 141.08% and 37.824. as compared to FY 2007.55 billions in FY 2009 with respect to the preceding years. In FY 2007.034 35.00% 100.635.00% In comparison with FY 2005.08% 137. Similarly in FY 2007 and FY 2008 there is an increasing trend by 3.59% in sales in FY 2009 as compared to the FY 2008.82 billions and 2.535 39.00% 100.59% Percentage Comparative 2005 Base 127.66% in FY 2006 as compared to FY 2005.843 37.362.239) Percentage Comparative Chain Base 27. sales of FY 2006 have been increased by 7.604 7.19% Vertical Common Size 100.061.501 3.36 billions while there is decrease in sales of 3. 50. as compared to FY 2006.617 (3. sales increased by 10.

088.620.80%.07%.540.20% 88.S as a part of sales.S 24.S has been recorded with 6.194.14% in FY 2005.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4.G.G.575.G.29% and 6.856 31.531.88% 11.03 billions as compared to FY 2008 due to the low production.034.88%.53% in FY 2006.S increased by 39.23% 88.76% in FY 2007. FY 2007 and FY 2008 increase in C.S has decreased by 9. FY 2008 and FY 2009 respectively.938) Percentage Comparative Chain Base 24. FY 2007.726 2.724 (2.94% and 42. There is a deceasing trend in C.94% 142.07% 150.53% -5.42% in FY 2009 with respect to FY 2008.36% and 8. As compared to FY 2005 C.88% 139.19 billions.894.G. 11.S decreased by 5. In FY 2009 C.76% Vertical Common size 90. 11.418 Comparative Chain Base 6.954. FY 2006.G.63% 90.86% In FY 2006. 9.356 35.G. While C.G. C.S has been decreased by 2. FY 2007 and FY 2008 respectively as compare to the preceding years.77%.906 34.71% 93. 50.36% 8. UNIVERSITY OF EDUCATION OKARA CAMPUS 34 . FY 2008 and FY 2009 respectively.632 37.95 billions with respect to the preceding year.050 3. 11.37%. 3.42% Percentage Comparative 2005 Base 124. An increasing trend was recorded by 24.3 COST OF GOODS SOLD: 2005 2006 2007 (Rupees in '000) 2008 2009 C.53 billions and 2.

186 Comparative Chain Base 1.52 billions in G.37% 9. 88.06% in FY 2006 and FY 2007 as compared to the FY 2005 and FY 2006 respectively.63%. FY 2006.06% -13. In FY 2008 and FY 2009 there was a decrease of 592 millions and 1.80% 11.487 2.440.44 billions and 292 millions as compared to the FY 2005 and FY 2006 respectively. As compared to FY 2005 G.14% G.324.23%. in FY 2007 and FY 2008 respectively while in FY 2009 the decrease of 14. As compared to sales.86% in FY 2005.524. 88.P has been increased by 53.27% 164.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4.12% as compared to FY 2005 was recorded.88% Vertical Common Size 9.4 GROSS PROFIT: 2005 2006 2007 (Rupees in '000) 2008 2009 Gross Profit 2.107) (1.P of FY 2006 and FY 2007 increased by 1.33% -39.09% and 42.P as compared to FY 2007 and FY 2008 respectively.178 4.21%. While GP of FY 2008 and FY 2009 decreased by 13.29% 6. FY 2007. G.594 3.77% 11.21% 85.27% and 7.61% with respect to preceding years respectively.P has been decreased by 90.61% Percentage Comparative 2005 Base 153.147.301) Percentage Comparative Chain Base 53.71% and 93.848.33% and 39. G.706. UNIVERSITY OF EDUCATION OKARA CAMPUS 35 .441.27% 7.965 (592.451 292.09% 142. 90.629 4.P has been increased by 64. FY 2008 and FY 2009 respectively.02%.

76%.1 millions.11% and 97.5 millions in FY 2006.657 822. FY 2006.93%.957 647.19% 143.55%. In terms of percentage.19%. FY 2008 and FY 2009 respectively in comparison with the preceding years. 19.21% and 4.83% in FY 2005. 98.89% 2. operating expenses have been increased by 13. FY 2007.76% 1.416 127.373 775. FY 2008 and FY 2009 respectively.16%.76% Vertical Common Size 2. FY 2008 and FY 2009 respectively in comparison with the preceding years.79% Percentage Comparative 2005 Base 113.288 784.19% 135. FY 2008 and FY 2009 respectively.02%.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4. 127 millions.84% 1.19%.234 Comparative Chain Base 75.21% 4. 1. there is a significant decrease in operating expenses by 97.79% in FY 2006. 98.55% 137.19% 19. FY2007. FY 2007.915 9.5 OPERATING EXPENSES: 2005 2006 2007 (Rupees in '000) 2008 2009 Operating Expenses 571.17% Operating expenses have been increased by 75. 9. As compared to FY 2005 increase of 35. 43.369 37.577 Percentage Comparative Chain Base 13.07% 1.98% 1. UNIVERSITY OF EDUCATION OKARA CAMPUS 36 .76% was recorded in FY 2007.3 millions and 37. 37. As compare to sales. 98.

74% and 43.98% in FY 2008 and FY 2009 respectively as compared to FY 2007 and FY 2008.878) Percentage Comparative Chain Base 64. UNIVERSITY OF EDUCATION OKARA CAMPUS 37 .40% and 3. Then it decreased by 16. In FY 2007 and FY 2008 increase of 71.01% 171.01% 4. While it decreased in FY 2008 and FY 2009 by 601 millions and 1.37% Vertical Common Size 7.72% -16.38%. 7.952 Comparative Chain Base 1.063.306 3.74% 143.050 (601.665.41% and 50.501.93% 9.56 was recorded as compared to the FY 2005. while the decrease of 29.256 3.56 billions respectively with respect to the previous years.97 % in FY 2007.830 1.476) (1.56% 70.41% -50. FY 2008 and FY 2009 respectively.97% Operating profit is increasing from FY 2006 to FY 2007 by 1.500.36 billions and 165 millions in comparison with the FY 2005 and FY 2006 respectively.63% was recorded on FY 2009 as compared to FY 2005.366. Operating profit is 7.01% and 4.035 165.221 3.561.40% 3.73% 9.73% and 9. In FY 2006 and FY 2007 operating profit increased by 64.98% Percentage Comparative 2005 Base 164.93 % of sales in FY 2005 and FY 2006 then it decreased to 9.134.6 OPERATING PROFIT: 2005 2006 2007 (Rupees in '000) 2008 2009 Operating Profit 2.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4.72 % respectively as compared to FY 2005 and FY 2006.38% 7.

479 Comparative Chain Base 135.614 321.41% 8.90% Percentage Comparative 2005 Base 172. in FY 2006 and FY 2007 other operating expenses increased by 72.684 (42.08% 83.89% 0.746 348. UNIVERSITY OF EDUCATION OKARA CAMPUS 38 .237) (149.41% In FY 2006 and FY 2007 other operating expenses increased by 135 millions and 26 millions respectively as compared to the preceding years.12% -48. In terms of percentage as compared to the preceding years.74% 0.68% 0. Other operating expenses are recorded as less than 1% of the sales in all the years.08% in FY 2007 and FY 2008 respectively.430 306. While the decrease of 42 millions and 149 millions was recorded in FY 2008 and FY 2009 respectively as compared to preceding years.193 156.41% 186. As compared to FY 2005 the other operating expenses increased by 86.85% Vertical Common Size 0. while decreased by 16.89% respectively while decreased by 12.90% in FY 2008 and FY 2009 respectively.15% in FY 2009.29% -12.71% and 64.12% and 48.91% 0.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4.7 OTHER OPERATING EXPENSES: 2005 2006 2007 (Rupees in '000) 2008 2009 Other Operating Expenses 186.132 26.71% 164.41% and 8.714) Percentage Comparative Chain Base 72.

39% 1.10% 175.90% 2.92% In FY 2006 increase of 571 millions was recorded in other operating income as compared to the FY 2005 while the decrease by 85 millions.41% -15.77% Vertical Common Size 1.59% Percentage Comparative 2005 Base 227. while the massive decrease of 8. 15.07% 161.90% in FY 2006 than it decreased to 2.456) (59.39% and 1. FY 2008 and FY 2009 respectively.92%.07% and 61.59% was recorded in FY 2007.769 (85.080 571. 75.8 OTHER OPERATING INCOME: 2005 2006 2007 (Rupees in '000) 2008 2009 Other Operating Income Comparative Chain Base Percentage Comparative Chain Base 449.87% -7. As compared to FY 2005 the other operating income increased by 108.922) (148.212 935.63% in FY 2005 than it increased to 2.443 1.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4.290 786. Other operating income as compared to sales was 1. While in FY 2009 it decreased to 1. 148 millions and 59 millions was recorded in and FY 2007.90% in FY 2007 and FY 2008 respectively.22% -8.63% 2.90% 1.10%.87 % and 7.77% in FY 2007.021.754) 127.41%. UNIVERSITY OF EDUCATION OKARA CAMPUS 39 . FY 2008 and FY 2009 respectively with respect to the preceding years.22% 208. In terms of percentage other operating income has increased by 127.22% in FY 2006 as compared to the FY 2005.834 727. FY 2008 and FY2009 respectively with respect to the preceding years.

8.166 3.68% 11.471.20% and 1.92% in FY 2006.54% in FY 2009.471 2.39% and 47.68 % in FY 2005.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4.56% in FY 2008.64% and 41.53% was recorded in FY 2008 and FY 2009 respectively as compared to the preceding years.64% -41.444 (707. the profit increased by 75.050 4.199.252. EBIT is 8. and 5.397.553 Comparative Chain Base 1.544.25% in FY 2006 and FY 2007 respectively with respect to the preceding years.20% 1.802.20% 177.53% Percentage Comparative 2005 Base 175.39% 147.918) Percentage Comparative Chain Base 75.92% 10.672 52.87% in FY 2007 and FY 2008 respectively. It decreased by 707 millions and 1. As a part of sales.072. But massive decrease of 16.47% In chain base comparison. 11. In terms of percentage. 10.46% Vertical Common Size 8.695) (1.56% 5.89% in FY 2007.722 4.47 billions in FY 2008 and FY 2009 respectively with respect to the preceding years. As compared to FY 2005 the profit increased by 77.9 PROFIT BEFORE INTERST AND TAX: 2005 2006 2007 (Rupees in '000) 2008 2009 Profit before Interest and Tax 2.89% 8.80 billions and 52 millions in FY 2006 and FY 2007 as compared to preceding years. EBIT was increased by 1.25% -16. UNIVERSITY OF EDUCATION OKARA CAMPUS 40 .87% 86.47% in FY 2009. while profit decreased up to 13.

852 (104. Than massive increase of 861.093 126. As compared to the FY 2005 finance cost decreased by 75.07% Finance cost has increased by 32 millions in FY 2006 as compared to the FY 2005 while it decreased by 104 millions and 19 millions in FY 2007 and FY 2008 respectively as compared to the preceding years.13% and 87.93% 28.780 Percentage Comparative Chain Base 34.685 2.13% -87.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4.36% 0.06% 0.945 22.91% 24. Finance cost is recorded as less than 1% of the sales in all the years.260) (19.760 26.59% Percentage Comparative 2005 Base 134.59% was recorded in FY 2009.91% in FY 2006.01% 0.83% 861.89%.83% in FY 2007 and FY 2008 respectively.79% in FY 2007. While it increased by 23 millions in FY 2009 as compared to the FY 2008.91% -82. 97. In comparison with the previous years it increased by 34. UNIVERSITY OF EDUCATION OKARA CAMPUS 41 .21% Vertical Common Size 0.925) 23.11% 2. FY 2008 and FY 2009 respectively.10 FINANCE COST: 2005 2006 2007 (Rupees in '000) 2008 2009 Finance Costs 94.34% 0. while it decreased by 82.540 Comparative Chain Base 32.07% and 71.

It increased to 11. and then it decreased to 10.302.40% In FY 2006 and FY 2007 profit before taxation increased by 1.26% -42.495. It increased by 83.711 2.16% in FY 2009 in comparison with the FY 2005.76 billions and 156 millions as compared to FY 2005 and FY 2006.49 billions in comparison with the preceding years. 8.79% in FY 2007 and FY 2008 respectively while it decreased by 11.046.85% and 3.481 3. UNIVERSITY OF EDUCATION OKARA CAMPUS 42 .INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4.85% -16.56% in FY 2006.83%.56% 10.698) Percentage Comparative Chain Base 76.704 (687.541.26% and 42.84% Vertical Common Size 8. Profit before tax has increased by 76.65% 153. Then it decreased by 687 millions and 1.23% in FY 2008 and FY 2009 as compared to the preceding years.79% 88. FY 2008 and FY 2009 respectively.85% 3.777 4.11 PROFIT BEFORE TAXATION: 2005 2006 2007 (Rupees in '000) 2008 2009 Profit before Taxation 2.55% 5.85% in FY 2006 and FY 2007 in comparison with the preceding years while it decreased by 16.40% in FY 2007. Profit before taxation is 8.229.820 156.83% 8.072.34% 11.769.85% 183.23% Percentage Comparative 2005 Base 176.55% and 5.957 4.013 Comparative Chain Base 1.34% of sales in FY 2005.65% and 53.770) (1.

75% in FY 2009 of sales. In terms of percentage. 3.16% Percentage Comparative 2005 Base 174.313 1. While it decreased by 232 millions and 589 millions in FY 2008 and FY 2009 respectively as compared to the preceding years.77% Vertical Common Size 2. 3.02% in FY 2008 and 1.04% 3.18% in FY 2006 and FY 2007 in comparison with the preceding years.96% in FY 2005.06% and 4. while it decreased by 19. As compared to FY 2005 tax revenues increased by 81.80% in FY 2007.16% in FY 2008 and FY 2009 respectively as compared to previous years.780 1.866 660. it increased by 74.32% and 52.914) (589.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4.70% -47. 4.955) Percentage Comparative Chain Base 74.75% Tax revenues have increased by 606 millions 59 millions in FY 2006 and FY 2007 respectively in comparison with the previous years.12 TAXATION: 2005 2006 2007 (Rupees in '000) 2008 2009 Taxation 818.424.23% in FY 2009.32% 152.250.06% 181.04% in FY 2006. UNIVERSITY OF EDUCATION OKARA CAMPUS 43 .86% in FY 2007 and FY 2008 respectively.18% -15.86% 80. while it decreased by 15.483. Taxation is 2.70% and 47.06% 4.80% 3.467 (232.311 1.96% 4.911 Comparative Chain Base 606.02% 1.002 59.

30% was recorded in net income in FY 2007 and FY 2008.745. As a part of sales.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4.53% and 3.66% in FY2005.16 billions and 97 millions in FY 2006 and FY 2007 respectively.856) (905.385.484. FY 2007.290.94% and 54.464 2.39% 3.30% 93.13 PROFIT AFTER TAXATION: 2005 2006 2007 (Rupees in '000) 2008 2009 Profit After Taxation 1. UNIVERSITY OF EDUCATION OKARA CAMPUS 44 . In terms of percentage.66% As compared to the previous years.67% -16.163.30% Vertical Common Size 5.39% 184. 7.646 2.53% 3. in comparison with the preceding years the income of company increased by 78. FY 2008 and FY 2009 respectively. while it increased by 454 millions and 905 millions in FY 2008 and FY 2009 respectively. net income of the company increased by 1. FY 2006.52% 7.94% 154.52%. while it decreased by 6.845 1.03% 5.57 and 39.648.38%.102 Comparative Chain Base 1.57% -39.38% 7. but it decreased massively by 16.54% in FY 2008 and FY 2009 respectively. As compared to the FY 2005 the increased of 84. 7. profit was 5.818 97.39% and 3.54% Percentage Comparative 2005 Base 178.701 2.70% in FY 2009.237 (454.67% in FY 2006 and FY 2007 respectively.743) Percentage Comparative Chain Base 78.03% 5.

.

568 10.524 3. Net assets of the company are showing an increasing trend from FY 2005 to FY 2009.478 532.545 17.850 6.968.530.372 3.221 6.124 9.650 4.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 5.657 9.035 87.043.408.631 5.914 120.124 210.153 3.715.795 49.968.254.800.296. There was no claim of outsiders on the company’s resources.436.478 16.830.563 9.319 9.879 6. The detail of trends of balance sheet is discussed below item wise and the annexed notes are also at the end of the report which forms an integral part of the above sheet.257.410.475.329 7. FY 2008 and FY 2009 is giving a clear look at the company’s resources and claims of outsiders.149 8.900.926 6.062 3.1 CONDENSED BALANCE SHEET: Indus Motor Company Limited Condensed Balance Sheet As on June 30.869 8.940 7.455 14.972 35.977 29. UNIVERSITY OF EDUCATION OKARA CAMPUS 46 .664.914 13.254. FY 2006.455 54.095.884.377.271 438.779.307 10.314 302.664.340 9.153 6.444.731 10.138 9.696 2.554 4.673 The condensed balance sheet of FY 2005.784 3.975 8. FY 2007. The long term debt position of the company is obvious and seems that company has a real strong background.149.673 503. 2005 2006 2007 (Rupees in '000) 2008 2009 Current Assets Less: Current Liabilities Net Working Capital Net Fixed Assets Capital Work-in-progress Intangible Assets Other Non Current Assets Net Assets Position Non-Current Liabilities Long Term Debt Equity Net Liability and Equity Position 11.973 10.700 10.592.513.912 187.103 1.469 3.878 901.560.403 1.123 10.690 4.035 6.177.800.377.885.805 4.530.902.651.

73% in FY 2007 and FY 2008 respectively.095. while current assets decreased by 3.784 16.89 billions in FY 2007 and FY 2008 respectively.10% -3.895. As compared to FY 2005.329 9.80% and 28. 70.05 billions was recorded in FY 2009.54% in FY 2008 and again it increased by 49.717 (535.31% 86.328) (3.31% was recorded in FY 2007.81% In comparison to the preceding years. In terms of percentage.81% in FY 2009.715. 86.56% in FY 2007. the current assets increased in FY 2006 by 2. increase of 21.30% in FY 2008 and 80.10% 121.917. UNIVERSITY OF EDUCATION OKARA CAMPUS 47 .09% 86. with respect to the preceding years the increase of 26.545) 7.95% in FY 2009.535 Percentage Comparative Chain Base 26.940 14.56% 70.664.09% in FY 2006.91 billions and than decreased by 535 millions and 3.177.66% 89.050.319 Comparative Chain Base 2.95% Percentage Comparative 2005 Base 126.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 5. than it decreased by 13. 89. Current assets were 91.73% 72.2 CURRENT ASSETS: 2005 2006 2007 (Rupees in '000) 2008 2009 Current Assets 11.80% -28.46% 149.54% Vertical Common Size 91.657 13. than it increased by 72.560.54% in FY 2009.10% was recorded in FY 2006. while again increase of 7.30% 80.66% of total assets in FY 2005.

554 7.00% 161.98% in FY 2009. and increase of 161.53% Percentage Comparative 2005 Base 123.53% in FY 2009 as compared to the preceding years.30% and 50.49% and 47.53% -49.69%. UNIVERSITY OF EDUCATION OKARA CAMPUS 48 .32% 128.410.492 (2.23% -21.884. In comparison with FY 2005 the decrease of 3.219 Percentage Comparative Chain Base 23.00% in FY 2007 and FY 2008 respectively.10 billions in FY 2009. 47. The percentage change was increase of 23.3 CURRENT LIABILITIES: 2005 2006 2007 (Rupees in '000) 2008 2009 Current Liabilities 7.68% was recorded in FY 2007 and FY 2008 respectively. FY2006.79% in FY2005. It again increased by 6.85% 59.631.23% 96.631 9.85%. total currents liabilities were 62.69% 47.926 3.628) (3.63 billions in FY 2007 and FY 2008 respectively. As a part of total liabilities and shareholder’s equity.31% 27.23% in FY 2006 than decrease of 21. FY 2007.062 9.03 billions and 3.295) 6.664. 27.779.444.31%.49% 47. the current liabilities increased in FY 2006 by 1.79% As compared to the previous years.105. 59.850 Comparative Chain Base 1.78 billions and than decreased by 2.70% 49.033. FY 2008 and FY 2009 respectively.780. while it increased by 28.98% Vertical Common Size 62.53% and 49.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 5.

while the decrease of 99 millions was recorded in FY 2009 as compared to FY 2008.85% 21. 377 millions and 1. The increase of 109.89% in FY 2009 was observed in total fixed assets as compare to the FY 2005.89% Vertical Common Size 8.19% 10. FY 2007 and FY 2008 as compared with FY 2005.85%in FY 2006.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 5.37% 29.02 in FY 2009. while the decrease of 2.85%.887 1. 13. FY 2007 and FY 2008 respectively as compared to the previous years.19% in FY 2005.852 4.83% in FY 2008 and 293.473 Comparative Chain Base 717.703 377.46% was recorded in FY 2009 in comparison with FY 2008. 21.4 TOTAL FIXED ASSETS: 2005 2006 2007 (Rupees in '000) 2008 2009 Total Fixed Assets 998. FY 2006 and FY 2007 respectively.46% Percentage Comparative 2005 Base 171. 303.62% in FY 2007.98% and 92. total fixed assets were 8.85% 209.34% in FY 2008 and 19.934. UNIVERSITY OF EDUCATION OKARA CAMPUS 49 .762 3.62% 403.37% in FY 2007.83% 393.65% -2.262 1.85% 13.98% 92.716.590 2. In terms of total assets.34% 19. 29. 10.289) Percentage Comparative Chain Base 71.02% Total fixed assets were increased by 717 millions.910 (99. There was increase of 71.093.93 billions in FY 2006.939.033.65% in FY 2006.

INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT

5.5 TOTAL ASSETS:
2005 2006 2007
(Rupees in '000)

2008

2009

Total Assets

12,194,517

15,822,468

15,665,050

13,748,109

20,685,523

Comparative Chain Base

3,627,951

(157,418)

(1,916,941)

6,937,414

Percentage Comparative Chain Base 29.75%

-0.99%

-12.24%

50.46%

Percentage Comparative 2005 Base

129.75%

128.46%

112.74%

169.63%

Vertical Common Size

100.00%

100.00%

100.00%

100.00%

100.00%

Total assets were increased by 3.62 billions in FY 2006 as compared to the FY 2005, while decreasing trend of 157 millions and 1.91 billions was observed in FY 2007 and FY 2008 respectively as compared to the preceding years. It again increased by 6.93 billions in FY 2009 as compared to the FY 2008.

In percentage change an increase of 29.75% was recorded in FY 2006 as compared with previous year, while it decreased by 0.99% and 12.24% in FY 2007 and FY 2008 respectively as compared to the previous years. It gain increased by 50.46% in FY 2009 in comparison with FY 2008. As compared to the FY 2005 total assets increased by 28.46%, 12.74% and 69.63% in FY 2007, FY 2008 and FY 2009 respectively.

UNIVERSITY OF EDUCATION OKARA CAMPUS

50

INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT

5.6 LONG TERM DEBT:
2005 2006 2007
(Rupees in '000)

2008

2009

Long Term Debt

-

-

-

-

-

Comparative Chain Base

-

-

-

-

Percentage Comparative Chain Base

-

-

-

-

Percentage Comparative 2005 Base

-

-

-

-

Vertical Common Size

-

-

-

-

-

There is no long term debt of the company so there is no change in percentage also.

UNIVERSITY OF EDUCATION OKARA CAMPUS

51

INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT

5.7 TOTAL LIABILITIES AND EQUITY:
2005 2006 2007
(Rupees in '000)

2008

2009

Total Liabilities and Equity

12,194,517

15,822,468

15,665,050

13,748,109

20,685,523

Comparative Chain Base

3,627,951

(157,418)

(1,916,941)

6,937,414

Percentage Comparative Chain Base

29.75%

-0.99%

-12.24%

50.46%

Percentage Comparative 2005 Base

129.75%

128.46%

112.74%

169.63%

Vertical Common Size

100.00%

100.00%

100.00%

100.00%

100.00%

Total liabilities and share holder’s equity were increased by 3.62 billions in FY 2006 as compared to the FY 2005, while decreasing trend of 157 millions and 1.91 billions was observed in FY 2007 and FY 2008 respectively as compared to the preceding years. It again increased by 6.93 billions in FY 2009 as compared to the FY 2008.

In percentage change an increase of 29.75% was recorded in total liabilities and share holder’s equity in FY 2006 as compared with previous year, while it decreased by 0.99% and 12.24% in FY 2007 and FY 2008 respectively as compared to the previous years. It gain increased by 50.46% in FY 2009 in comparison with FY 2008. In comparison with the FY 2005 total liabilities and share holder’s equity increased by 28.46%, 12.74% and 69.63% in FY 2007, FY 2008 and FY 2009 respectively.

UNIVERSITY OF EDUCATION OKARA CAMPUS

52

.

878 2006 4. It is calculated by following formula: Current Assets .Current Liabilities 2005 3.469 Interpretation: Working capital of the company has always been maintained very high up to FY 2007.1. The company then reduced it in FY 2008 to avoid excessive working capital but in FY 2009 it again increased which shows company has sufficient capital to pay its liabilities. working capital is considered a part of operating capital.513.403 2008 5. Along with fixed assets such as plant and equipment.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.830.1 NET WORKING CAPITAL: Net working capital is a financial metric which represents operating liquidity available to a business.153 2009 6.149.1 SHORT TERM DEBT PAYING ABILITY: 6. UNIVERSITY OF EDUCATION OKARA CAMPUS 54 .885.103 2007 6.651.

69 : 1 Interpretation: Current Ratio of the company has a increasing trend up to FY 2008.2 CURRENT RATIO: The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months. It compares a firm's current assets to its current liabilities. It was minimum in FY 2005.56 : 1 2009 1.49 : 1 2007 1. As the graph shows that current ratio remains positive in last five years so the company has the ability to pay its current liabilities with its current assets.1. It is expressed as follows: Current Assets Current Liabilities 2005 1.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.83 : 1 2008 2.46 : 1 2006 1. Current ratio was maximum in FY 2008 than once again it decreased in FY 2009 due to increase in liabilities UNIVERSITY OF EDUCATION OKARA CAMPUS 55 .

3 ACID TEST RATIO: A stringent test that indicates whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory.Inventory Current Liabilities 2005 1. The acid-test ratio is far more strenuous than the working capital ratio.1. Current Assets . UNIVERSITY OF EDUCATION OKARA CAMPUS 56 .INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.07 : 1 2007 1.44 : 1 2008 1. Then it decreased slightly in FY 2009. But as a whole the graph shows that company has a tendency that the most liquid assets of the company are in a position to payoff the current liabilities. primarily because the working capital ratio allows for the inclusion of inventory assets.86 : 1 2009 1.28 : 1 Interpretation: Quick ratio of the company has an increasing trend up to FY 2008 showing the adequacy in paying off the current liabilities.05 : 1 2006 1.

88 : 1 2006 0.79 : 1 2007 1.16 : 1 2009 0.15 : 1 2008 1. than it increased in FY 2007 and FY 2008 showing that company in not using cash to its best advantage. In FY 2009 the decrease in cash ratio shows that company has now started using the cash up to its maximum advantage.98 : 1 Interpretation: Cash ratio of the company was quite good in FY 2005 and FY 2006.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.4 CASH RATIO: The cash ratio is a formula for measuring the liquidity of the company by calculating the ratio between all cash and cash equivalent assets and all the current liabilities. UNIVERSITY OF EDUCATION OKARA CAMPUS 57 . The formula for calculating the cash ratio is as under: Marketable Securities + Cash Current Liabilities 2005 0.1.

UNIVERSITY OF EDUCATION OKARA CAMPUS 58 .12 : 1 2006 0. In FY 2009 the ratio again increased and now the company is in a position to meet its short term cash needs well in time.5 CASH FLOW FROM OPERATIONS RATIO: Cash flow from operations or operating cash flow ratio measure of how well current liabilities are covered by the cash flow generated from a company's operations.1. But the company was facing the problems in FY 2008 of meeting the need of current liabilities from its operating profit due to the negative cash flow.38 : 1 2008 (0. Ratio increased in FY 2006 and FY 2007.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.21) : 1 2009 0. The formula for calculating the ratio is: Cash from Operations Current Liabilities 2005 0.66 : 1 Interpretation: Cash flow from operations ratio of the company was low in FY 2005 showing that the operating profit of the company was not meeting the need of short term liabilities well.28 : 1 2007 0.

1 TIME INTEREST EARNED RATIO: The times interest earned ratio is an Indicator of a company’s ability to meet the interest payments on its debt.08 2007 187. The times interest earned calculation is a corporation’s income before interest and income tax expense.284.23 2009 78.48 2006 33.2 LONG TERM DEBT PAYING ABILITY: 6. In FY 2007 and FY 2008 a increasing trend is shown in the ratio which shows that company has reduced its interest expenses. UNIVERSITY OF EDUCATION OKARA CAMPUS 59 . This is due to the high interest expense of the company. The calculating method is: Earning before Interest and Tax Interest Expense 2005 25.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.2.09 Interpretation: The times interest earned ratio of the company was very low in FY 2005 and FY 2006. company is still able to generate 78 times the expense of interest from its operations. divided by interest expense. But in FY 2009.44 2008 1. after a massive decrease.

such as interest and leases. It shows that company has no long term finances on which company has to pay interest.09 Interpretation: Fixed charged coverage ratio of the company is mostly same as time interest earned ratio. Than it decreased in FY 2009 but still company is in good position.284. A ratio calculated by dividing profits before payment of interest and income taxes by interest paid on bonds and other long-term debt.23 2009 78.44 2008 1.2 FIXED CHARGED COVERAGE RATIO: A ratio that indicates a firm's ability to satisfy fixed financing expenses. Company has the liability against leased assets in FY 2005 and FY 2006. Figure shows the increasing trend from FY 2005 to FY 2008 which means that company has better position to pay its debt expenses.2.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6. It is calculated as the following: Earning before Interest and Tax Interest + Lease Payment + Principal Payment 2005 22.10 2007 187. UNIVERSITY OF EDUCATION OKARA CAMPUS 60 .60 2006 32.

65% 2009 50. the higher the ratio. In general. A low percentage means that the company is less dependent on leverage.22% Interpretation: Debt ratio of the company is significantly decreasing from FY 2005 to FY 2008.36% in FY 2008 but than there was increase in FY 2009. The decreasing trend of the debt ratio is due to the decrease in total liabilities. the less leverage a company is using and the stronger its equity position. But in FY 2009 the liabilities of the company increased but the assets of the company also increased.2. The lower the percentage. The formula for calculating the debt ratio is: ( 2005 63.3 DEBT RATIO: The ratio gives an idea to the leverage of the company along with the potential risks the company faces in terms of its debt-load.36% 2006 60. UNIVERSITY OF EDUCATION OKARA CAMPUS 61 .30% Total Liabilities Total Assets )100 2008 31. That is beneficial for company. It reached to its lowest of 31.45% 2007 48.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6. the more risk that company is considered to have taken on.

( 2005 0. The graph shows the strategy of the company that company is totally based on equity. A high debt to equity ratio could indicate that the company may be over-leveraged. UNIVERSITY OF EDUCATION OKARA CAMPUS 62 .2.4 DEBT EQUITY RATIO: This ratio indicates how much the company is in debt by comparing what is owed to what is owned. Debt is not taken to run the operations of the company.00% 0.00% Long Term Debt Share Holder's Equity )100 2008 2009 0.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.00% Interpretation: The figure shows that company had enough equity to serve over period of time.00% 2006 0.00% 2007 0. and should look for ways to reduce its debt.

The decrease in the ratio is due to the decrease in the intangible assets of the company.78% 2008 45.93% 2006 152. UNIVERSITY OF EDUCATION OKARA CAMPUS 63 .71% Interpretation: Debt to tangible net worth ratios shows the decreasing trend from FY 2005 to FY 2008 which is very good for the company.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6. The value is computed by dividing total liabilities by total equity minus intangible assets. The formula is: ( 2005 172. The lower the ratio the better is for company.5 DEBT TO TANGIBLE NETWORTH: Debt to tangible net worth ratio measures the degree of protection that exists for creditors.Intangible Assets )100 2009 100.99% 2007 94.86% Total Liabilities Owner's Equity . The ratios increased once again FY 2009 due to increase in intangible assets of the company.2.

86 2008 18. UNIVERSITY OF EDUCATION OKARA CAMPUS 64 .3 SHORT TERM LIQUIDITY: 6. This shows that receivables management of the company is not improving as compared to the previous years and 7 days have been increased in this manner in FY 2009 as compared to the FY 2008.3.09 2006 24.02 Interpretation: Accounts receivable turnover in days is 13 days in FY 2005 and then it increased in FY 2006 up to 25 days but then it decreased to 16 days in FY 2007.90 2009 26. The formula of the ratio is: Gross A/R Net Sales / 365 days 2005 13.1 DAY’S SALES IN A/R: The ratios measure of the average number of days that a company takes to collect revenue after a sale has been made.89 2007 15.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6. After this it showed an increasing trend up to FY 2009.

Than it decreased to 14. This ratio measures the efficiency of credit and collection policies and the quality of outstanding average accounts receivable.89 times.66 times in FY 2006.32 2009 14. This shows that company in not managing its receivable in better ways as compared to the previous years. The formula of the ratio is: Net Sales Gross A/R 2005 27. Company is collecting receivable only 14.03 times in FY 2009 in comparison with the previous years.01 times.03 Interpretation: Accounts receivable turnover of the company was maximum in FY 2005 i.e. This is all due to the decrease in the volume of sales and increase in trade receivable.89 2006 14. Once again increase was recorded in FY 2007 of 23.01 2008 19.2 ACCOUNTS RECEIVABLE TURNOVER: Measures the number of times accounts receivable are collected during the year.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6. 27.3.66 2007 23. Than decreasing trend was recorded in FY 2008 and FY 2009. UNIVERSITY OF EDUCATION OKARA CAMPUS 65 .

3. After this increase is recorded in FY 2007 and FY 2008.57 days in FY 2007.92 2009 14. the lower (shorter) the day’s sale in inventory is the better.55 2007 5.3 DAY’S SALES IN INVENTORY: A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory into sales.20 Interpretation: Day’s sales in inventory shows and increasing trend of 4 day in FY 2007 as compared to the previous year. It can be calculated by following formula: Ending Inventory Cost of Goods Sold / 365 days 2005 11.92 days in FY 2008. while company was taking 10. UNIVERSITY OF EDUCATION OKARA CAMPUS 66 .57 days.80 2006 15.57 2008 10. Than it decreased to 5. Company is taking 14.20 days to convert its inventory into sales in FY 2009. The inventory management was best in FY 2007 in which company was taking 5. Generally.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.

UNIVERSITY OF EDUCATION OKARA CAMPUS 67 .38 2008 45. The reason behind a low turnover is the increase in cost of sales. there was a decrease in inventory turnover and it reached to 28. inventory turnover was 42. The formula is expressed as follow: Cost of Goods Sold Average Inventory 2005 42.4 INVENTORY TURNOVER: The inventory turnover is an equation that measures the number of times inventory is sold or used over in a period such as a year.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6. The cost of sales showed a massive increase because of increased cost of raw material.20 2007 37.3.20 2006 29.49 2009 28. In FY 2007 and FY 2008 it increased. In FY 2009.36 Interpretation: In FY 2005.20 times but then it decreased in FY 2006.36 times.

1 NET PROFIT MARGIN: A ratio of profitability calculated as net profits divided by net sales.66% as compared to the previous years. UNIVERSITY OF EDUCATION OKARA CAMPUS 68 .3.e.4.66% Interpretation: Net profit of the company shows an increasing trend in up to FY 2006.53% 2006 7.4 PROFITABILITY INDEX: 6. The formula to calculate the net profit margin is: ( 2005 5. Than from FY 2007 to FY 2009 it shows the decrease in the net profit. It measures how much out of every dollar of sales a company actually keeps in earnings. Net profit is minimum in FY 2009 i.03% 2009 3.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.52% 2007 7.38% Net Income Net Sales )100 2008 5.

23 in FY 2006 from 2. The formula for calculating the ratio is: Net Sales Total Assets 2005 2.49 2008 3. But once again ratio decreased to 1.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6. A relatively high ratio tends to reflect intensive use of assets.83 Interpretation: The ratio has decreased to 2.01 2009 1.26 in FY 2005. UNIVERSITY OF EDUCATION OKARA CAMPUS 69 .23 2007 2.26 2006 2. Then it showed a very good increase in FY 2007 and FY 2008 and reached to 2.49 and 3.4.2 TOTAL ASSETS TURNOVER: A financial ratio that indicates the effectiveness with which a firm's management uses its assets to generate sales.01 respectively. The reason behind this decrease is the decrease in volume of sales.83 in FY 2009.

The formula for calculating the ratio is: ( 2005 12.74% 2007 17.4. The decrease in the ratio is FY 2007 was due to the decrease in total assets as compared to the previous years while the reason of decrease in the FY 2009 is the decrease in the net income of the company. This increase is due to the increase in total assets.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.17% Net Income Total Assets )100 2008 16. And then it showed the decreasing trend in FY 2008 and FY 2009.66% 2006 16. ROA gives an idea as to how efficient management is at using its assets to generate earnings. UNIVERSITY OF EDUCATION OKARA CAMPUS 70 .70% Interpretation: The ratio has a increasing trend up to FY 2007.53% 2009 6.3 RETURN ON ASSETS: An indicator of how profitable a company is relative to its total assets.

73% Operating Income Net Sales )100 2008 7. The decrease in last two years is due to the decrease in operating profit of the company.4 OPERATING INCOME MARGIN: A ratio used to measure a company's pricing strategy and operating efficiency. Operating margin is a measurement of what proportion of a company's revenue is left over after paying for variable costs of production such as wages.38% from 9.93% 2007 9.40% 2006 9.93% in FY 2006. But then it decreased slightly in FY 2007 to 9.4.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6. The trend remains decreasing in FY 2008 and FY 2009. UNIVERSITY OF EDUCATION OKARA CAMPUS 71 . The formula for calculating the ratio is: ( 2005 7. etc. raw materials.97% Interpretation: The operating income margin of the company has an increasing trend up to FY 2006.38% 2009 3.

4.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6. The reason behind the trend is the increase in operating assets.53 2008 11.02 2007 20.71 Interpretation: The turnover is showing a decreasing trend up to FY 2009.63 2006 25.53 2009 9. UNIVERSITY OF EDUCATION OKARA CAMPUS 72 .5 OPERATING ASSETS TURNOVER: A financial ratio that indicates the effectiveness with which a firm's management uses its operating assets to generate sales. The calculation technique for the ratio is: Net Sales Operating Assets 2005 30.

INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.4.6 RETURN ON OPERATING ASSETS: An indicator of how profitable a company is relative to its operating assets. Return on operating assets gives an idea as to how efficient management is at using its operating assets to generate earnings. The ratio is calculated as follow:

(
2005
164.77%

Net Income Operating Assets

)100
2008
63.77%

2006
188.06%

2007
144.29%

2009
35.51%

Interpretation:
The ratio has a increasing trend up to FY 2006. This increase is due to the increase in operating assets. And then it showed the decreasing trend in FY 2007, FY 2008 and FY 2009. The reason behind the decrease in the ratio is decrease in the net income of the company.

UNIVERSITY OF EDUCATION OKARA CAMPUS 73

INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.4.7 SALES TO FIXED ASSETS: Sales to fixed assets ratio measures a company's ability to generate net sales from fixed asset investments specifically property, plant and equipment. A higher the ratio shows that the company has been more effective in using the investment in fixed assets to generate revenues. The ratio is calculated by following formula: Net Sales Fixed Assets

2005
27.63

2006
20.53

2007
18.66

2008
10.27

2009
9.62

Interpretation:
The ratio has shown a decreasing trend from FY 2005 to FY 2009. The ratio was highest in FY 2005 i.e. 27.63 and lowest in FY 2009 i.e. 9.62. It is all because of the greater increase in fixed assets as compared to the increase in sales volume of the company. This all shows that company is not making productive use of its fixed assets by generating good volume of sales.

UNIVERSITY OF EDUCATION OKARA CAMPUS 74

INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.4.8 RETURN ON EQUITY: The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. The formula for the ratio is:

(
2005
33.17%

Net Income Total Equity

)100
2008
24.28%

2006
42.32%

2007
34.13%

2009
13.45%

Interpretation:
Return on equity of the company shows an increasing trend in FY 2006 as compared to the FY 2005. The increase was due to the increase in total equity of the company. Than it shows a decreasing trend from FY 2007 to FY 2009. Here total equity is still increasing but the decreasing trend is due to the decrease in net income of the company.

UNIVERSITY OF EDUCATION OKARA CAMPUS 75

9 GROSS PROFIT MARGIN: A financial metric used to assess a firm's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold. UNIVERSITY OF EDUCATION OKARA CAMPUS 76 . Gross profit margin serves as the source for paying additional expenses and future savings. While the decrease in FY 2009 is due to the low sales of the company. It can be calculated as follow: ( 2005 9.77% 2007 11.80% Gross Profit Net Sales )100 2008 9.29% 2006 11.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6. Than there is a decrease in gross profit in FY 2007 and trend remains same in FY 2008 and FY 2009.14% Interpretation: The gross shows an increasing trend up to FY 2006. The decrease in FY 2008 was due to the increase in cost of goods sold.37% 2009 6.4.

70 2007 34. It is calculated as follow: Net Income No.93 2008 29. UNIVERSITY OF EDUCATION OKARA CAMPUS 77 .5 INVESTOR’S ANALYSIS: 6. Earnings per share serve as an indicator of a company's profitability. Than suddenly EPS decreased in FY2008 and FY 2009 rapidly.15 2009 17. of Equity Shares 2005 18. This decrease in EPS shows that company has low earnings in last two years as compared to the previous years.89 2006 33. It is due to the high income earned by the company.1 EARNING PER SHARE: The portion of a company's profit allocated to each outstanding share of common stock.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.62 Interpretation: EPS of the company has increasing trend from FY 2005 to FY 2007.5.

INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6. Than ratio decreased in FY 2008 and FY 2009.11 Interpretation: The price earning ratios shows an increasing trend from FY 2005 to FY 2009. The higher the price earning the more earnings growth investors are expecting and the higher premium they are willing to pay for that anticipated growth. The decrease in the price earning ratio is due to decrease in EPS.76 2006 5.67 2007 8. The formula for the ratio is: Market Price Per Share Earning Per Share 2005 4.5.2 PRICE EARNING RATIO: The price earning ratio is a way to show how a company’s earning relate to a stock price. UNIVERSITY OF EDUCATION OKARA CAMPUS 78 . But the decrease in market price of share is also recorded. This increase is due to the increase in EPS.75 2008 6.86 2009 6.

5.3 DIVIDEND PAYOUT RATIO: The dividend payout ratio measures what a company’s payout to investors in the form of dividend. UNIVERSITY OF EDUCATION OKARA CAMPUS 79 . The ratio can be calculated by the following formula: ( 2005 52.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6. Than it remains stable in FY 2006. In FY 2009 the ratio decrease due to the decrease in EPS of the company in that year.22% 2009 56.94% Dividend Per Share Earning Per Share )100 2008 36.61% 2007 37.75% Interpretation: The dividend payout ratio of the company is high in the FY 2005 due to the low EPS.02% 2006 35. FY 2007 and FY 2008 because of almost same dividend per share of the company in these years.

This increase is due to the decrease in the market price of share in those years. UNIVERSITY OF EDUCATION OKARA CAMPUS 80 .28% 2007 4. The formula for calculating the ratio is: ( 2005 11.11% Dividend Per Common Share Market Price Per Share )100 2008 5. In FY 2008 and FY 2009 ratio shows increasing trend.28% Interpretation: The trend is negative in this ratio up to FY 2007 because of the increase in the prices of the shares up to FY 2007.25% 2006 6.5.26% 2009 9.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.4 DIVIDEND YIELD RATIO: The dividend yield ratio allows investors to compare the latest dividend they received with the current market value of the share as an indictor of the return they are earning on their shares.

with support from Toyota Motor Corporation has worked closely with its 62 local vendors for increased localization and technology transfer. durability.   Profit margins are still under pressure due to foreign currency fluctuations. It is essential for the government to effectively address the following challenges concerning consolidation of macroeconomic stability:  Mitigating the effects of the global economic crisis. IMC has improved its market share in a declining market but will continue to remain aggressive. Pakistan is the highest producer of Corolla in Asia. in particular on manufacturing and exports. IMC’s products. UNIVERSITY OF EDUCATION OKARA CAMPUS 81 . fuel economy and resale value. There has been high demand for the Corolla which is the market leader in this segment. The company has expanded its dealership network across Pakistan to 29 dealerships and this will increase further in the coming years.   IMC will do utmost to optimize costs without compromising on quality and delivery. IMC is working on definitive plans to expand dealer network and launch new CKD/CBU products. focused and innovative in their marketing activities coupled with dealership improvements.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT CONCLUSION Indus Motor Company. safety.  IMC expect 2009/10 to be a better year but a critical one for sustainable growth and development of Pakistan’s economy. renowned for their quality. are appreciated by customers in Pakistan.

 Make a concrete plan to revisit the AIDP and achieve implementation recognizing the recommendations made by OEMs and the Pakistan Automobile Manufacturers Association.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT  Implementing tax policy and administration reforms and managing the security issues engulfing the nation. UNIVERSITY OF EDUCATION OKARA CAMPUS 82 .

htm 22.htm 16.com/BusinessFinanceOnline/RA/RatioAnalysis. Indus Motor Company Limited Annual Report 2006 3. Jr (1992) Fundaments of Financial Management. http://www. “12th Edition” 7. http://www. Indus Motor Company Limited Annual Report 2008 5. James C. http://cbdd. http://www. http://www. http://www.wordpress.com/basic-understanding-of-the-swot-%20analysis/ 21.org.referenceforbusiness.com/equity/finratan.accaglobal.stocktrades.html 23.org/ratios. Indus Motor Company Limited Annual Report 2007 4. Indus Motor Company Limited Annual Report 2009 6.pk/historicaldata. Wachowicz. http://dictionary.com 9.com/content/resource/understanding-financial-ratios#q7 18.ca/stock-picking/limitations-of-financial-ratios/ 19.edu/kewlcontent/cdoutput/TOM505/page26.com/management/Pr-Sa/SWOT-Analysis. http://www. http://www.com/browse/acid-test+ratio?jss=1 UNIVERSITY OF EDUCATION OKARA CAMPUS 83 . http://economicpakistan.com/2009/02/01/automobile-industry/ 10. http://www.zenwealth.pama.reference.htm 12.com/financial-ratios/financial-ratio-limitations/ 17.htm 11.html 13.com/strategy/swot/ 14.html 20.com/finance/financial/ratios/ 15.financialmodelingguide.companypartners. http://www.wisegeek. Indus Motor Company Limited Annual Report 2005 2.finpipe. http://www. http://www.com/what-is-trend-analysis. Van Horn.quickmba.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT REFRENCES 1.businessplans. http://www.netmba.com 8.toyota-indus. http://www. http://fmaccounting. John M.wsu.

http://www. http://www.com/concern/environment. http://www.opfblog.com/p/articles/mi_hb092/is_n9_v28/ai_n28693653/ 39.com/definitions/investing-definitions/define-net-profit-ratio 27. http://financial-dictionary.uk/interest_cover/ 33.com/listing/product/R302-1104.valuebasedmanagement.pk/daily_detail.asp 37.com/learn/turnover.asp 36.html 40. http://www.php 30.brecorder.net/methods_roce.com/terms/e/eps. http://www. http://www.com/concern/default. http://findarticles.thefreedictionary.pakistaneconomist. http://www. http://www.asp 32.com/issue2000/issue19&20/i&e7.co.duedee.com/terms/g/gearingratio.com.egmcartech.thenews.html 28.com/2008/7/26/Indus-Motors-Company-Limited------ Review/37451/ 26. http://www.php?id=948832&currPageNo=1&query=&search=& term=&supDate 38.investopedia.com/company/history. http://www.asp 35.com/8447/inflation-and-its-impact-on-the-pakistan-economy/ 25. http://www. http://fingad.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 24.vitalentusa.asp?id=134844 41. http://www.com/2009/01/21/toyota-beats-gm-to-become-the-worlds- largest-automaker/ 34.kitchaloo. http://www. http://www.toyota-indus.toyota-indus.com/index.investopedia.toyota-indus.com/Return+on+equity 29.asp 31.mindbranch.html UNIVERSITY OF EDUCATION OKARA CAMPUS 84 . http://moneyterms.

.

.

604 Raw material consumed Stores and spares consumed Salaries.030 592 11. 2005 2006 2007 (Rupees in '000) 2008 2009 Sales 27.006 288 125.058 27.117 149.008 4.423.555 1.913 19.068 4.137 63.732 86.920 29.301 346.675 3.841 10.139 523.895 2.203 39.836 29.572 - 26.294 1.974 643.084 75 121.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure I Indus Motor Company Limited Summarized Income Statement For The Year Ended June 30.128 3.535 39.714 2.601. stationery and office supplies Subscription Fuel and power Running royalty Technical fee Parts development Staff catering.026 607.376 383 10.519 260.684 3.033 15.800 410.833 84.773 290.211 29.491 184.654.766 5.092 20.738 246.566 21.211 53 88.542 485.174 1.863 3.910 321.289 9.154 19.272 4.314 15.377 3.423 5.552 2.034 35.760 64.864.079 90 88.311 310.626 334 16.221 732.121 278.677. rate and taxes Repairs and maintenance Depreciation Legal and professional Travelling Transportation Insurance Vehicle running Communication Printing.021 3.547 - UNIVERSITY OF EDUCATION OKARA CAMPUS 87 .973 1.661 215.846.812 4.168 4. wages and other benefits Rent.114 98.819 119 107. transport and 21561543 475.932 6.007 1.887 229.061.653 797 17.968 406 11.126 578.789.226 41.236.063 26.109 5.968 1.410 3.741 2.024 220.297 10.843 37.533 2.

084.142) 104.541.130 (95.212 3.500.784) 102.632 4.648.424.324.314 106.986 265.430 3.553 26.311 4.15 17.130) 22.62 UNIVERSITY OF EDUCATION OKARA CAMPUS 88 .147.142 4.304 277.129 (1.862.985 352.959 (95.199.487 487.657 35.806 2.553 (106.484.945 4.080 Profit before Interest and Tax Finance Costs 2.413 11.093 4.333) 105.418 2.123.620.440.425.685 3.780 3.830 306.784 3.481 1.284 784.250.501 21.288 37.313 4.503 528.544.894.324.333 6.629 404.306 348.462.072.302.737 95.70 34.906 4.745.995 1.898 (1.614 1.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT uniforms Staff training Opening work-in-process Closing work-in-process Cost of goods manufactured Opening stock Purchases Closing stock 17 104.106 1.540.479 1.473 727.717 (528.858 805.385.541.304 (1.088.229.812 3.533) 29.876 935.061) 82.483.134.252.848.597.947.89 33.397.607 Other Operating Income 449.629.510 1.076) 32.290 3.456 647.225 64.123.959) 31.178.594 509.701 2.290.637 786.373 297.186 469.256 321.021.845 1.046.471 2.259) Cost of Goods Sold Gross Profit Distribution Expenses Administration Expenses Operating Expenses 24.063.302 775.356 3.102 Earning Per Share 18.501.952 156.711 1.178 294.013 660.382.234 Operating Profit 2.706.917 242.256 374.575.856 2.249 822.533 (71.957 818.166 22.746 3.182.540 Profit before Taxation Taxation 2.740.324.443 3.665.757.638 71.93 29.200.855 (805.345.646 2.072.464 2.316.777 1.911 Profit After Taxation 1.726 16.193 2.653 571.520) 28.760 2.957 31.834 1.520 (64.050 94.373 34.221 Other Operating Expenses 186.722 126.061 3.866 2.

INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT
Annexure I.I

Indus Motor Company Limited Comparative Chain Base Income Statement For The Year Ended June 30,

2006 Sales Raw material consumed Stores and spares consumed Salaries, wages and other benefits Rent, rate and taxes Repairs and maintenance Depreciation Legal and professional Travelling Transportation Insurance Vehicle running Communication Printing, stationery and office supplies Subscription Fuel and power Running royalty Technical fee Parts development Staff catering, transport and uniforms Staff training Others Opening work-in-process Closing work-in-process Cost of goods manufactured 7,635,501 5,115,483 132,544 65,833 (28) 21,782 86,596 (258) 4,280 744 6,494 535 1,444 132 (37) (467) 36,717 (9,145) (1,514) 82,812 3,297 4,171 1,577 10,610 5,563,602

2007 3,824,691 1,169,948 36,226 14,966 101 (1,391) (24,973) 463 1,273 (1,120) 3,402 (256) 282 (205) 235 37,714 25,394 (13,895) (1,222) 21,914 13,423 11,592 (10,610) 30,987 1,314,248

2008 2,362,617 1,807,152 (65,114) 60,324 8,281 13,890 89,315 (391) (5,580) 241 255 1,120 2,265 813 (169) (18,617) 32,252 5,584 375 775 4,488 (9,449) (30,987) (7,426) 1,889,397

2009 (3,559,239) 135,013 (55,462) 20,080 (6,977) (35,579) 321,408 (23) (1,159) (1,091) 7,418 4,177 (780) (1,735) (44) 14,421 206,526 (1,005) (2,211) (3,088) (9,587) (3,119) 7,426 (23,117) 571,492

(Rupees in '000)

UNIVERSITY OF EDUCATION OKARA CAMPUS

89

INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT
Opening stock Purchases Closing stock 430,255 719,274 (519,081) 519,081 902,588 795,809 (795,809) 2,456,587 (595,451) 595,451 (2,943,406) (258,475)

Cost of Goods Sold Gross Profit
Distribution Expenses Administration Expenses Operating Expenses

6,194,050 1,441,451
110,613 (35,197) 75,416

3,531,726 292,965
105,069 22,846 127,915

2,954,724 (592,107)
(22,613) 31,982 9,369

(2,034,938) (1,524,301)
(17,388) 54,965 37,577

Operating Profit
Other Operating Expenses

1,366,035
135,132 1,230,903

165,050
26,684 138,366 (85,922)

(601,476)
(42,237) (559,239) (148,456)

(1,561,878)
(149,714) (1,412,164) (59,754)

Other Operating Income

571,769

Profit before Interest and Tax
Finance Costs

1,802,672
32,852

52,444
(104,260)

(707,695)
(19,925)

(1,471,918)
23,780

Profit before Taxation
Taxation

1,769,820
606,002

156,704
59,467

(687,770)
(232,914)

(1,495,698)
(589,955)

Profit After Taxation

1,163,818

97,237

(454,856)

(905,743)

Earning Per Share

15

1

(6)

(12)

UNIVERSITY OF EDUCATION OKARA CAMPUS

90

INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT

Annexure I.II

Indus Motor Company Limited Percentage Comparative Chain Base Income Statement For The Year Ended June 30,

2006 Sales Raw material consumed Stores and spares consumed Salaries, wages and other benefits Rent, rate and taxes Repairs and maintenance Depreciation Legal and professional Travelling Transportation Insurance Vehicle running Communication Printing, stationery and office supplies Subscription Fuel and power Running royalty Technical fee Parts development Staff catering, transport and uniforms Staff training Others Opening work-in-process Closing work-in-process Cost of goods manufactured Opening stock Purchases Closing stock 27.66% 23.73% 27.90% 44.13% -1.59% 33.76% 33.30% -43.58% 36.45% 32.50% 70.04% 11.80% 53.80% 4.29% -41.11% -0.53% 19.93% -23.44% -33.11% #DIV/0! 19394.12% 372.74% 1.51% -10.00% 24.34% 114.79% 29.20% 64.48%

2007 10.85% 4.39% 5.96% 6.96% 5.83% -1.61% -7.20% 138.62% 7.95% -36.93% 21.58% -5.05% 6.83% -6.38% 443.40% 42.85% 11.49% -46.53% -39.96% 26.46% 405.04% 219.13% -10.00% -32.44% 4.62% 64.48% 28.36% -60.10%

2008 6.05% 6.49% -10.11% 26.23% 451.77% 16.36% 27.77% -49.06% -32.27% 12.60% 1.33% 23.28% 51.36% 27.05% -58.68% -14.81% 13.09% 34.97% 20.42% 0.74% 26.81% -55.97% -32.44% 11.51% 6.35% -60.10% 60.14% 112.70%

2009 -8.59% 0.46% -9.58% 6.92% -68.98% -36.01% 78.21% -5.67% -9.89% -50.65% 38.19% 70.41% -11.69% -45.43% -36.97% 13.46% 74.14% -4.66% -100.00% -2.93% -45.17% -41.96% 11.51% 32.13% 1.81% 112.70% -45.00% 23.00%

(Rupees in '000)

Cost of Goods Sold Gross Profit
Distribution Expenses Administration Expenses

24.88% 53.27%
37.58% -12.68%

11.36% 7.06%
25.95% 9.42%

8.53% -13.33%
-4.43% 12.05%

-5.42% -39.61%
-3.57% 18.49%

UNIVERSITY OF EDUCATION OKARA CAMPUS

91

22% 4.85% 74.23% -47.41% 63.12% -16.83% -41.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Operating Expenses 13.21% 4.98% -48.29% 4.19% 19.26% -15.01% 72.54% -39.39% 78.90% -51.53% 861.85% 4.59% Profit before Taxation Taxation 76.65% -16.86% -15.06% 3.20% 127.25% -82.55% -39.59% Profit before Interest and Tax Finance Costs 75.67% 3.21% -7.55% UNIVERSITY OF EDUCATION OKARA CAMPUS 92 .13% -16.91% 1.16% Profit After Taxation Earning Per Share 78.40% 3.76% 1.57% -16.41% -16.87% -50.70% -42.18% -16.64% -87.41% -12.20% 34.72% 8.79% Operating Profit Other Operating Expenses Other Operating Income 64.35% -8.

81% 130.03% 132.15% 131.30% 56.20% 164.66% 153.58% 99.80% 153.73% 127.70% (Rupees in '000) #DIV/0! #DIV/0! #DIV/0! 19494.30% 83.52% 129.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure I.86% 248.08% 353.35% 263.48% 91.89% 2007 141.29% 58.53% 121.13% 98.42% 136.96% 265.85% 299.58% 139.63% 320.90% 144.00% 142.00% #DIV/0! 68458.60% 123.72% 67.50% 170.36% 60.09% 171.06% 178.99% 281. transport and uniforms Staff training Others Opening work-in-process Closing work-in-process Cost of goods manufactured Opening stock Purchases Closing stock 127.31% 97.41% 133.72% 40.65% 64.73% 106.83% 146.14% 208.80% 138.25% 48.68% 83.60% 139.09% 173.47% 119. stationery and office supplies Subscription Fuel and power Running royalty Technical fee Parts development Staff catering.63% 147. 2006 Sales Raw material consumed Stores and spares consumed Salaries.79% 129.21% 165.93% 76.III Indus Motor Company Limited Percentage Comparative 2005 Base Income Statement For The Year Ended June 30.25% 101.74% 1508.52% 68.88% 159.94% 142.70% 124.35% 140.76% 85.16% 2008 150.56% 66.80% 104.63% 67.33% 137.70% 89.15% 135.94% 124852.85% 65. wages and other benefits Rent.59% Cost of Goods Sold Gross Profit Distribution Expenses 124.83% 89.45% 132.08% 137.67% 664.70% 134.88% 153.67% 0.04% 111.09% 133.35% 52.89% 99.69% UNIVERSITY OF EDUCATION OKARA CAMPUS 93 .19% 138.94% 40.48% 130.90% 46.51% 90.36% 2009 137.58% 140.05% 151.00% 124.10% 209.16% 104.52% 154.22% 121.24% 97.60% 574.60% 142.48% 223.12% 98452.16% 110.27% 137.77% 94.57% 206.29% 165.82% 385.66% 123.23% 55.15% 164.29% 150.13% 158.07% 164.44% 289.82% 194.01% 219. rate and taxes Repairs and maintenance Depreciation Legal and professional Travelling Transportation Insurance Vehicle running Communication Printing.63% 61.34% 214.05% 68.94% 472.76% 133.

39% 24.19% 126.77% Profit After Taxation Earning Per Share 178.37% 83.32% 113.10% 143.39% 178.74% 186.07% 137.91% 154.55% 107.20% 134.41% 163.85% 69.94% 184.87% 2.07% 70.20% 227.56% 164.30% 154.71% 170.31% 208.32% 153.55% 135.86% 88.22% 171.11% 147.06% 183.76% Operating Profit Other Operating Expenses Other Operating Income 164.40% 184.93% 86.87% 143.46% 28.08% 141.01% 172.21% Profit before Taxation Taxation 176.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Administration Expenses Operating Expenses 87.85% 174.19% 95.59% 175.30% 93.79% 152.65% 181.77% Profit before Interest and Tax Finance Costs 175.84% 80.08% 161.31% 93.28% UNIVERSITY OF EDUCATION OKARA CAMPUS 94 .91% 177.

65% 0.01% 0. rate and taxes Repairs and maintenance Depreciation Legal and professional Travelling Transportation Insurance Vehicle running Communication Printing.03% 0.72% 0. transport and uniforms Staff training Others Opening work-in-process Closing work-in-process Cost of goods manufactured Opening stock Purchases Closing stock 100.05% 0.14% UNIVERSITY OF EDUCATION OKARA CAMPUS .05% 0.01% 0.04% 0.98% 0.17% 76.00% 0. wages and other benefits Rent.00% 71.00% 0.92% -2.02% 0.50% -3.79% -2.00% 0.25% 0.20% 9.04% 0.02% 0.77% 88.01% 0.00% 0.71% 1.01% 0.32% 0.93% 0.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure I.39% 10.01% 0.86% 6.67% 0.25% 85.03% -3.00% 0.99% 0.00% 71.19% -0.59% 0.59% 1.67% 0.38% 0.63% 11.29% 95 93.05% 0.30% -0.02% 0.01% 0.26% 0.00% 0.00% 0.24% -0.00% 0.01% 0.38% -0.00% 0.04% 0.27% 80.23% 0.01% 0.27% 0.04% 0.02% 0.01% 0.38% 82.24% 0.01% 0.16% -0.76% 2007 (Rupees in '000) 100.IV Indus Motor Company Limited Comparative Vertical Common Size Income Statement For The Year Ended June 30.00% 0.82% 0.00% 0.82% 0.00% 0.63% 0.17% 1.03% 0.08% 0.05% 0.01% 0.28% 0.40% 0.01% 0.00% 75.32% 0.28% 9.14% 0.04% 0.01% 0.28% 15.00% 0.02% 0.54% 0.00% 78.63% 0.71% 9.07% 0.22% 0.04% 0.03% 0.01% 0.24% 0.01% 0. stationery and office supplies Subscription Fuel and power Running royalty Technical fee Parts development Staff catering.24% 0.00% 0.00% 0.92% 2006 100.71% 2009 100.01% 0.94% 0.36% 1.03% 0.05% 0.02% 0.46% -1.01% 0.03% 0.01% 0.17% 76.67% 1.02% 0.36% 8.65% Cost of Goods Sold Gross Profit 90.67% 2. 2005 Sales Raw material consumed Stores and spares consumed Salaries.27% 0.97% 9.05% 0.83% 1.72% 0.00% 0.01% 0.12% 1.00% 0.00% 78.32% 1.80% 88.23% 11.00% 0.70% 0.61% 0.00% 0.35% 2008 100.04% 2.37% 90.01% 0.29% 1.14% 3.25% 0.

18% 0.31% 0.34% 2.39% 7.72% 1.56% 0.56% 4.00% 3.92% Profit before Interest and Tax Finance Costs 8.68% 7.01% 5.07% 1.06% 1.00% 7.17% Operating Profit Other Operating Expenses Other Operating Income 7.03% 2089.98% 1.01% 2.06% 8.41% 3.74% 6.66% 1.80% 8.83% 3.55% 1.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Distribution Expenses Administration Expenses Operating Expenses 1.91% 9.15% 0.07% Profit before Taxation Taxation 8.68% 1.02% 2.36% 10.47% 0.92% 0.84% 1.40% 0.66% 2289.89% 0.90% 9.52% 1989.38% 1889.73% 0.89% 8.40% 1.69% 1.04% 10.49% 2.00% 5.07% 1.00% 7.97% 0.02% 5.96% 11.24% 0.75% Profit After Taxation Earning Per Share 5.93% 0.68% 0.93% 2.89% 1.63% 9.38% 0.53% 2189.34% 11.90% 3.55% 3.00% UNIVERSITY OF EDUCATION OKARA CAMPUS 96 .

.

169 1.469 413.259 226.585 UNIVERSITY OF EDUCATION OKARA CAMPUS 98 .378 912.988 3.180 48.533 4.372 23.076 613.832 - 128.191 3.268 165.158.855 384.543 302.888 4.479 153.755 345 876.263 209.117 498.459 16.332.511 29.736.533 59.171 414.951 665.281 5.308) 532.627.162 283.520 744.520 8.338 9. ASSETS Current Assets Stores and Spares Raw material and components Work in process Finished goods Vehicles Spare parts Special service tools and publications Provision for slow moving stock In transit Stock-in-trade Trade debts Current maturity of finance under musharika arrangements Loans and advances Short-term prepayments Accrued mark-up Other receivables Investments Taxation-net Cash and bank balances 2005 2006 2007 (Rupees in '000) 2008 2009 137.523 132.384.233 601.052 851 (43.629 1.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure II Indus Motor Company Limited Summarized Balance Sheet As on June 30.631 - 302.731.719.168.211 1.959.108.179 95.549 222 1.371 46.876 50.130 214.856 2.148 35.171 894.936 2.482 436.858 1.027 1.191 1.487 2.647 3.316 738.400 185.166 82.676 106.149 64.902 9.463 95.416.921 71.165 47.637.959 277.999 7.088.360 54.380.328.710 232.267.811 227.134 76.012 74.082 4.634 605.142 917.725 737.944 67.543.065 279.217 426.859.315 6.752) 1.250.823 356.846 (128.028 1.483 1.

033.408.977 29.227 5.271 438.892.123 1.149 12.517 15.062 9.529 673 14.050 13.926.019 5.926 3.319 Non-Current Assets Long-term loans Long-term deposits Finance under musharika arrangements TOTAL NON-CURRENT ASSETS 388 5.017 4.net TOTAL CURRENT LIABILITIES 2005 2006 2007 (Rupees in '000) 2008 2009 2.696 2.221 4.685.022.095.793.925 - 2.093.660 7.524 3.599.177.784 16.545 998.240 6.603.714 - 2.731 Fixed Assets Property.342 10.779.468 15.988 5.748.902.035 87.869 22.735 195.664.153 6.480 715 3.341 7.314 302.410.664.620.568 2.509 7.934.514.372 3.657 13.222 35.554 985.560.590 1.900.629 10.222 49.852 3.716.789 2.109 20.869 42.822.850 UNIVERSITY OF EDUCATION OKARA CAMPUS 99 .911 6.665.554 7.887 1.884.762 3.715.307 10.250 5.444.940 14.523 LIABILITIES AND SHAREHOLDER'S EQUITY LIABILITIES Current Liabilities Trade and other payables Advances from customers and dealers Accrued mark-up Short-term running finances Current portion of liabilities against assets subject to finance lease Taxation .592.153 17.194.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT TOTAL CURRENT ASSETS 11. plant and equipment Capital work-in-progress Intangible Assets TOTAL FIXED ASSETS 901.942.568 27.972 105 - 3.181 4.631 9.329 9.473 TOTAL ASSETS 12.563 28.690 1.795 4.021 10.912 187.972 3.

975 786.388.973 TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY 12.700 TOTAL LIABILITIES Shareholder's Equity Paid up capital Reserves TOTAL EQUITY 7.550 786.523 UNIVERSITY OF EDUCATION OKARA CAMPUS 100 .340 9.589 7.257.871 - 42.712 9.975 8.257.665.718.000 7.822.000 8.700 503.050 13.296.517 15.879 786.149 532.650.805 4.650 116.471.685.109 20.510.311.043.340 786.000 9.564.075 4.769 10.957 3.000 3.689.693 54.000 5.475.621.805 786.138 532.879 6.468 15.149 210.138 503.748.035 210.973 10.194.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Non-current Liabilities Liabilities against assets subject to finance lease Deferred taxation TOTAL NON-CURRENT LIABILITIES 11.164 120.436.

423 (644.013 (4.545) (103.827 38.448) 111.022 (519.389 56.229 403.087 (6.770 (23.581 7.099.895.522 (1.258 23.444) 734.917.211) 11. ASSETS Current Assets Stores and Spares Raw material and components Work in process Finished goods Vehicles Spare parts Special service tools and publications Provision for slow moving stock In transit Stock-in-trade Trade debts Current maturity of finance under musharika arrangements Loans and advances Short-term prepayments Accrued mark-up Other receivables Investments Taxation-net Cash and bank balances TOTAL CURRENT ASSETS 2006 2007 2008 2009 (Rupees in '000) 89.492) 48.868) 20.308) (626.171) (209.451.322) 667.141 246.402.426 218.181 2.272) 15.461 353.995 (85.665 93.307) (129.533) 5.659) 466.503 629 (43.050.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure II.375) (97.101) 11.083 (535.226 1.117 335.610) 529.033 35.787 (10.071 317.203 790.884 (102.622) (531.668 948.365) (72.987) (685.171 161.678) (3.458) (54.763 29.272 1.987 (23.520 1.932 (6.156) 246.127.328) 4.365) 54.634) (2.315) 696.185 (3.710) 311.214.535 UNIVERSITY OF EDUCATION OKARA CAMPUS 101 .228) 7.207 (24.I Indus Motor Company Limited Comparative Chain Base Balance Sheet As on June 30.717 1.242) 77.450 4.314) (30.080) (222.435 1.799 157.046 (82.951 (190.745 (1.

682 (22.910 308.535) (2.101 593 38.177 (99.418) (1.021) (98.706 (409.324 (773) 1.434 4.086) 73.780.985 321.627.105.714) 1.631.149.508) (610) (3.132) (7.598 (114.463) (3.527 11.940.555) 377.989 (28.832) Fixed Assets Property.471 (3.789) - 14.941) 6.017.937.703 494.951 (157.221 1.106.190) 292.414 LIABILITIES AND SHAREHOLDER'S EQUITY LIABILITIES Current Liabilities Trade and other payables Advances from customers and dealers Accrued mark-up Short-term running finances Current portion of liabilities against assets subject to finance lease Taxation .628) (3.781) (2.021) 648 38.789 (195.289) TOTAL ASSETS 3.448 (4.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Non-Current Assets Long-term loans Long-term deposits Finance under musharika arrangements TOTAL NON-CURRENT ASSETS 631 32 (8.295) 6.528.438) UNIVERSITY OF EDUCATION OKARA CAMPUS 102 .846 (4.279 214.689.684 1.033.694 (13.939.422) 717.832) (13.359 251.219 (8.492 (2.469) 3.net 2006 2007 2008 2009 (Rupees in '000) 577.106 (2. plant and equipment Capital work-in-progress Intangible Assets TOTAL FIXED ASSETS 507.172) 1.557 568 - 195.262 1.871) 93.660 TOTAL CURRENT LIABILITIES Non-current Liabilities Liabilities against assets subject to finance lease Deferred taxation 1.916.389) (21.

989 (28.418) (1.365 1.096 1.392.951 (157.076.786.309.633 TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY 3.786.392.781 1.114 321.782.306) 6.385 90.627.074 1.916.514) (3.877 (1.941) 6.943.414 UNIVERSITY OF EDUCATION OKARA CAMPUS 103 .096 1.365 860.633 860.937.782.438) TOTAL LIABILITIES Shareholder's Equity Paid up capital Reserves TOTAL EQUITY 1.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT TOTAL NON-CURRENT LIABILITIES 65.074 1.845.

91% Fixed Assets Property.03% -51.09% 27. ASSETS Current Assets Stores and Spares Raw material and components Work in process Finished goods Vehicles Spare parts Special service tools and publications Provision for slow moving stock In transit Stock-in-trade Trade debts Current maturity of finance under musharika arrangements Loans and advances Short-term prepayments Accrued mark-up Other receivables Investments Taxation-net Cash and bank balances TOTAL CURRENT ASSETS 2006 2007 2008 2009 (Rupees in '000) 65.42% 12.45% -31.13% 8.80% 108.17% 11.08% 35.42% #DIV/0! 4.18% -17.80% 2.74% 313.68% -100.29% 137.89% #DIV/0! 27.75% 234.44% -92.77% 100.34% 898.22% 316.29% -73.87% -10.00% 124.09% 50.77% -9.II Indus Motor Company Limited Percentage Comparative Chain Base Balance Sheet As on June 30.55% #DIV/0! #DIV/0! 15.74% #DIV/0! -100.95% Non-Current Assets Long-term loans Long-term deposits Finance under musharika arrangements TOTAL NON-CURRENT ASSETS 162.67% 0.84% -36.05% -27.01% 27.51% 368.80% 32.00% 10.13% 121.60% -87.00% 73.00% -100.72% #DIV/0! 331.27% UNIVERSITY OF EDUCATION OKARA CAMPUS 104 .79% 55.44% -83.94% 92.85% -49.30% #DIV/0! 21.20% -3.43% 197.10% 0.81% 72.04% -51.91% -32.05% -31.00% 247.16% 2.33% -28.63% 0.36% 26.33% 299.14% 36.00% -32.85% 420.59% -93.00% #DIV/0! -27.50% -8.62% -66.23% -100.33% #DIV/0! -54.39% 283.01% -80.12% -37. plant and equipment Capital work-in-progress 56.97% 63.16% -17.95% #DIV/0! 356.32% 7.61% 8.00% 6.78% 134.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure II.10% 45.91% -42.60% 112.02% -7.02% 30.05% 17.10% -5.29% 74.01% 24.95% -100.73% -44.30% 246.99% 88.65% 50.30% -27.

99% -12.24% -100.24% -31.95% 9.79% #DIV/0! -35.42% #DIV/0! -5.91% -100.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Intangible Assets TOTAL FIXED ASSETS -41.81% -96.53% -3.53% -67.54% #DIV/0! -79.00% -21.46% #DIV/0! 23.00% 80.31% #DIV/0! -100.34% 140.00% 19.00% 9.75% -0.95% #DIV/0! #DIV/0! #DIV/0! 161.00% 41.46% LIABILITIES AND SHAREHOLDER'S EQUITY LIABILITIES Current Liabilities Trade and other payables Advances from customers and dealers Accrued mark-up Short-term running finances Current portion of liabilities against assets subject to finance lease Taxation .16% -85.46% UNIVERSITY OF EDUCATION OKARA CAMPUS 105 .18% 17.64% 23.30% 39.99% -12.64% 28.98% -21.16% 110.57% 18.75% -0.15% 501.11% -2.63% 172.22% 153.09% 119.08% 540.54% 0.66% 92.00% #DIV/0! -49.85% -41.07% -20.12% TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY 29.32% #DIV/0! 153.00% 32.net TOTAL CURRENT LIABILITIES Non-current Liabilities Liabilities against assets subject to finance lease Deferred taxation TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES Shareholder's Equity Paid up capital Reserves TOTAL EQUITY 2006 2007 2008 2009 (Rupees in '000) 28.24% 50.40% -78.93% 0.46% TOTAL ASSETS 29.22% -43.31% 0.82% 0.65% 42.24% 50.00% 48.93% 71.73% 21.34% -5.23% 11.91% 75.

23% 284.25% 173.63% 100.62% 33.58% 285.68% 64.81% 149.09% 57.31% 169.46% 22.46% #DIV/0! 58.76% 100.00% 280.67% #DIV/0! 60.12% 12.10% 94.45% 529. ASSETS Current Assets Stores and Spares Raw material and components Work in process Finished goods Vehicles Spare parts Special service tools and publications Provision for slow moving stock In transit Stock-in-trade Trade debts Current maturity of finance under musharika arrangements Loans and advances Short-term prepayments Accrued mark-up Other receivables Investments Taxation-net Cash and bank balances TOTAL CURRENT ASSETS 2006 2007 2008 2009 (Rupees in '000) 165.48% 129.85% 824.41% 66.48% 67.35% #DIV/0! 132.30% 346.74% #DIV/0! 0.63% 0.00% 61.26% 137.94% 33.10% 165.23% 24.94% 127.19% 214.93% #DIV/0! 144.68% 107.00% 347.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure II.01% 19.74% 140. plant and equipment Capital work-in-progress 156.18% 7347.93% 120.61% #DIV/0! 254.00% 201.26% 60.01% 124.41% 86.97% 200.05% 117.58% 64.58% 75.98% Fixed Assets Property.42% #DIV/0! 104.61% 398.47% #DIV/0! 0.80% 129.15% 90.78% 10912.70% 1087.81% 27.36% 126.33% 399.08% 211.13% 121.26% 0.94% 192.78% 1092.03% 451.31% 386.55% 64.00% 243.00% 295.44% 0.48% 432.28% 231.65% 0.46% 93.68% 502.82% UNIVERSITY OF EDUCATION OKARA CAMPUS 106 .25% 89.63% 128.68% 140.00% 144.86% 136.74% 413.00% 110.54% Non-Current Assets Long-term loans Long-term deposits Finance under musharika arrangements TOTAL NON-CURRENT ASSETS 262.09% 109.24% 346.76% 83.26% 0.80% 208.97% 163.49% 246.87% 90.71% 181.80% 80.86% 114.68% 140.III Indus Motor Company Limited Percentage Comparative 2005 Base Balance Sheet As on June 30.

83% 100.89% TOTAL ASSETS 129.00% 492.37% 272.82% 100.23% 384.23% 143.98% 32.59% 100.46% 112.43% 973.00% 1179.74% 169.60% 0.85% 33.64% 123.72% 55.70% 138.99% #DIV/0! 0.00% 234.75% 128.09% 219.62% 26.82% 921.84% 209.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Intangible Assets TOTAL FIXED ASSETS 58.54% 98.07% 171.54% #DIV/0! 123.00% 148.44% 210.68% 134.net TOTAL CURRENT LIABILITIES Non-current Liabilities Liabilities against assets subject to finance lease Deferred taxation TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES Shareholder's Equity Paid up capital Reserves TOTAL EQUITY 2006 2007 2008 2009 (Rupees in '000) 128.06% TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY 129.86% 0.75% 128.01% 80.37% #DIV/0! 0.91% 0.16% 210.72% 100.00% 196.57% 6.51% 403.54% #DIV/0! 20.63% UNIVERSITY OF EDUCATION OKARA CAMPUS 107 .14% 17.00% #DIV/0! 128.00% 1246.32% 194.00% #DIV/0! 49.98% 105.30% 139.00% 257.83% 37.77% 6.57% 118.76% 230.46% 112.77% #DIV/0! 13.70% 179.63% LIABILITIES AND SHAREHOLDER'S EQUITY LIABILITIES Current Liabilities Trade and other payables Advances from customers and dealers Accrued mark-up Short-term running finances Current portion of liabilities against assets subject to finance lease Taxation .74% 169.67% 393.74% 0.30% #DIV/0! 96.

10% 0.77% 8.25% 0.04% 0.03% 0.68% 55.00% 0.85% 3.31% 54.00% 5.90% 0.69% 0.18% 0.05% 0.40% 18.54% 86.41% 1.36% 0.04% 0.15% 0.00% 0.87% 89.07% 0.71% 2.69% 0.31% 0.72% 0.48% 0.60% 4. ASSETS Current Assets Stores and Spares Raw material and components Work in process Finished goods Vehicles Spare parts Special service tools and publications Provision for slow moving stock In transit Stock-in-trade Trade debts Current maturity of finance under musharika arrangements Loans and advances Short-term prepayments Accrued mark-up Other receivables Investments Taxation-net Cash and bank balances TOTAL CURRENT ASSETS 2005 2006 2007 (Rupees in '000) 2008 2009 1.41% 0.81% 1.32% 0.03% 0.00% 0.48% 70.17% 0.39% 1.43% 10.32% 0.00% 0.00% 4.15% 0.00% 7.00% 47.01% 0.38% 2.01% -0.03% 0.88% 19.00% 0.09% 1.25% 0.52% 31.04% 2.11% 91.12% 11.48% 7.00% 5.IV Indus Motor Company Limited Comparative Vertical Common size Balance Sheet As on June 30.25% 0.00% 0.00% 0.62% 0.96% 2.04% 0.17% Fixed Assets UNIVERSITY OF EDUCATION OKARA CAMPUS 108 .99% 3.32% 3.46% 2.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure II.08% 0.29% 0.81% Non-Current Assets Long-term loans Long-term deposits Finance under musharika arrangements TOTAL NON-CURRENT ASSETS 0.06% 0.00% 0.54% 0.00% 0.07% 0.24% 2.87% 1.02% 4.30% 0.87% 0.02% 4.56% 1.37% 2.36% 0.03% 0.52% 2.26% 4.76% 3.69% 6.40% 0.26% 0.38% 1.19% 9.01% -0.48% 0.00% 7.04% 0.03% 0.66% 1.13% 19.67% 0.01% 0.45% 7.72% 0.68% 0.00% 46.06% 0.14% 0.30% 0.62% 6.19% 25.62% 6.04% 80.61% 1.33% 0.00% 0.02% 2.77% 25.58% 1.

00% 100.82% 0.09% 0.70% 4.49% 19.98% 49.00% 27.00% 3.00% 0.00% 0.34% 1.00% UNIVERSITY OF EDUCATION OKARA CAMPUS 109 .00% LIABILITIES AND SHAREHOLDER'S EQUITY LIABILITIES Current Liabilities Trade and other payables Advances from customers and dealers Accrued mark-up Short-term running finances Current portion of liabilities against assets subject to finance lease Taxation .65% 0.69% 18.79% 0.02% 19.22% 6.02% 13.00% 100.04% 1.net TOTAL CURRENT LIABILITIES Non-current Liabilities Liabilities against assets subject to finance lease Deferred taxation TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES Shareholder's Equity Paid up capital Reserves TOTAL EQUITY 2005 2006 2007 (Rupees in '000) 2008 2009 16.00% 0.00% 0.33% 51.09% 8.00% 0.14% 0.44% 50.58% 45.06% 28.45% 63.13% 3.34% 18.46% 28.24% 59.97% 34.02% TOTAL ASSETS 100.45% 0.73% 0.87% 31.90% 1.23% 0.04% 10.86% 0.91% 0.00% 100.00% 0.32% 7.15% 1.65% 0.20% 0.85% 12.31% 20.34% 48.45% 30.43% 41.00% 0.58% 39.84% 0.87% 3.19% 8.00% 2.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Property.00% 0.35% 0.39% 0.00% 47.72% 62.00% 0.14% 0.10% 0.17% 0.00% 100.92% 68.00% 62.02% 0.95% 0.02% 29.00% 1. plant and equipment Capital work-in-progress Intangible Assets TOTAL FIXED ASSETS 7.07% 47.78% TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY 100.26% 36.36% 0.35% 5.64% 3.80% 45.00% 0.00% 100.55% 5.02% 0.19% 0.00% 100.76% 60.44% 2.72% 0.00% 100.37% 26.85% 16.02% 46.30% 0.00% 100.

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926 6.631 (0.719.149.884.926 0.177.28 : 1 2.727 7.926 1.631 1.341 9.657 -9.027.410.784 -3.779.926 1.878 Current Assets .062 0.469 2.850 0.715.779.49 : 1 13.675.155 3.329 -7.180 9.884.88 : 1 7.410.779.543.38 : 1 (811.062 1.319 9.715.664.410.626. Cash Ratio Marketable Securities + Cash Current Liabilities 6.86 : 1 12.631 1.850 0.554 4.823.536.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure III 2005 2006 2007 2008 2009 1.850 1.657 9.46 : 1 14.850 6.940 -7.554 0.28 : 1 4.009.136.884.095.631 2.847 9.177. Current Ratio Current Assets Current Liabilities 11. Cash Flow from Operations Ratio 884.077) 3.416.085 7.779.403 9.05 : 1 10.664.554 1.444. Net Working Capital 11.166 9.664.83 : 1 9.631 5.529 9.263 7.940 7.513.062 1.378 7.784 3.664.103 13.44 : 1 7.12 : 1 Cash from Operations Current Liabilities 2.554 1.999 7.884.884.410.756 3.700.926 1.095.382.651.56 : 1 16.79 : 1 8.885.560.062 0.329 7.850 1.444.560.664.062 3.444.830. Acid Test Ratio Current Assets .15 : 1 4.Current Liabilities 14.153 16.779.16 : 1 9.664.21) : 1 6.410.66 : 1 UNIVERSITY OF EDUCATION OKARA CAMPUS 111 .664.444.07 : 1 10.Inventory Current Liabilities 8.731.319 -9.461 9.444.554 0.69 : 1 3.945 7.98 : 1 5.

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043.00% 5.685 187.257.48 Earning before Interest and Tax Interest Expense 4.252.397.712 12.251.621.471 2.816 32.397.109 31.040.589 6. Debt to Tangible Net worth ( 7.589 15. Debt Ratio ( 7.388.194.09 3.748.685.00% )100 9.293.60 4.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure IV 2005 2006 2007 2008 2009 1.975 0.945 33.199.879 0.44 3.166 22.685 187.093 25.523 50.166 22.050 106.284.388.760 1.550 20.23 2.407 94.050 48.44 3. Fixed Charged Coverage Ratio Earning before Interest and Tax Interest + Lease Payment + Principal Payment 2.09 2.78% 4.712 4.822.340 0.769 13.00% Long Term Debt Share Holder's Equity 6.540 78.621.517 63.00% 8.99% 7.805 0.718.550 10.050 94.471 2.00% 10.072.252.260 172.075 15.311.465.544.075 8.296.564.545 45.65% )100 4.722 130.08 4.553 26.718.86% Total Liabilities Owner's Equity .665.433.553 26.769 9.760 1.722 126.050 22.284.475.10 4.30% Total Liabilities Total Assets 9.36% 10.468 60.436.072.001 100.71% )100 10.311.93% UNIVERSITY OF EDUCATION OKARA CAMPUS 113 .756 152.45% 7.199. Debt Equity Ratio ( 4.973 0.544.22% 4.540 78. Time Interest Earned Ratio 2.23 2.Intangible Assets 9.564.

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537 107.06 15.632 926.09 Gross A/R Net Sales / 365 days 2.01 41.540.992 14.02 2.698.418 1.205 11.144.864.894.89 Net Sales Gross A/R 35.906 1.123.90 2.619.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure V 2005 2006 2007 2008 2009 1.50 37.698.836 96.570 27.45 24.402.017.92 1. Inventory Turnover 24.933.50 28.50 29.80 Ending Inventory Cost of Goods Sold / 365 days 1.20 4. Accounts Receivable Turnover 27.697.20 Cost of Goods Sold Average Inventory 31.36 UNIVERSITY OF EDUCATION OKARA CAMPUS 115 .259 97.836 14.55 528.50 45.088.236.738.382.575.946 10.03 3.27 13.535 2.843 2.538.66 39.142 85.058.98 18.32 37. Day's Sales in A/R 989.64 26.784 102.253.601.564 19.402.49 35.20 34.333 94.324.489.57 1.061 68.604 2.620.237.226 1.851 5.856 589.697.992 103.570 75.034 989.564 113.601.371 14.50 42.86 2.064.537 23.423.38 37. Day's Sales in Inventory 805.175 15.144.061.021.356 826.89 1.

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646 27. Operating Income Margin 2.864.97% 5.02 Net Sales Operating Assets 39.52% Net Income Net Sales 2.53 41.745.952 37.523 1.665.050 17. Return on Assets 1.236.290.66% )100 1.061.102 20.604 3.601.535 15.226 7.53% 2.843 13.221 27.535 1.194.73% ( 3.464 15.71 UNIVERSITY OF EDUCATION OKARA CAMPUS 117 .53% )100 1.034 7.500.665.03% 2.194.109 16.256 35.66% 2.74% Net Income Total Assets 2.385.063.748.035 30.822.134.236.314 25.685.290.423.648.23 Net Sales Total Assets 39.517 12.01 37. Net Profit Margin 1.646 12.385.40% )100 1.236.38% 3.034 12.53 37.604 20.501.109 3.912 20.63 35.830 41.601.535 9.423.26 35.423.864.604 3.845 41.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure VI 2005 2006 2007 2008 2009 1.745.843 7.601.604 3.864.49 41.701 15.464 35.523 6.665. Total Asset Turnover 27.601.050 2.226 1.061.517 2.843 3.977 9. Operating Assets Turnover 27.423.685.902.900.271 11.38% ( 2.061.468 16.484.061.701 39.306 39.226 15.843 5.468 2.83 3.748.408.93% Operating Income Net Sales 3.845 13.034 901.102 37.70% 4.226 9.864.592.17% ( 2.034 5.484.822.648.236.535 7.

53 Net Sales Fixed Assets 39.17% ( 2.934.290.887 27.484.257.864.646 901.102 10.852 18.186 37.033.66 41.296.061.973 13.701 1.843 9.473 9.646 4.271 63.061.77% ( 2.440.762 10.706.06% Net Income Operating Assets 2.423.32% Net Income Total Equity 2.845 3.975 34.093.226 11.805 33.912 144.385.236.902.629 35.977 35.535 11.034 9.14% UNIVERSITY OF EDUCATION OKARA CAMPUS 118 .601.423.77% )100 1.147.900.484. Gross Profit Margin 2.408.879 42. Sales to Fixed Assets 27.845 9.464 6.604 6.290.745. Return on Operating Assets 1.594 39.535 1.848.178 27.475.716.043.464 1.648.63 35.324.340 24.385.51% 7.314 188.29% 2.843 4.035 164.28% )100 1.29% )100 2.864.13% 2.37% 3.45% 9. Return on Equity 1.436.27 37.034 998.590 20.745.601.226 2.62 8.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.648.604 3.77% Gross Profit Net Sales 4.487 41.236.592.102 3.701 8.80% ( 4.

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Dividend Yield Ratio ( 10.00 11.15 6.93 37.11 3.00 18.484. Dividend Payout Ratio 10.62 6.600 29.72 17.93 8.62 2.00 17.70 Net Income No.05 29.845 78.600 17.26% 10.11% Dividend Per Common Share Market Price Per Share 12.648.89 52.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure VII 2005 2006 2007 2008 2009 1.00 305. Price Earning Ratio 90.25% )100 10.22% 10.28% 13.28% UNIVERSITY OF EDUCATION OKARA CAMPUS 120 .75 200.00 33.70 5.464 78.89 4.72 9.50 29.600 33.67 305.94% ( 12.290.00 33. of Equity Shares 2.61% Dividend Per Share Earning Per Share 13.50 4.385.00 18.00 191.89 2.75% 4.86 107.646 78.93 2.62 56. Earning Per Share 1.600 34.50 34.102 78.05 5.701 78.00 6.76 Market Price Per Share Earning Per Share 191.600 18.70 35.00 90.15 36.00 107.15 1.50 200.02% )100 10.00 34.745.

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