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)

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

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

Dated: _______________ __________________ Supervisor v . Okara campus.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.

Although. omission and misprinting between the electronic and printed version of document. Project does not assume any liability for any financial or other loss resulting from this document in consequence of undertaking this activity. errors. diligence and reasonable efforts has been taken to compile this project.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. vi . Therefore the content of this document should not be relied upon for making any decision. 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. The content of the information does not bind “PROJECT MAKER” in any legal or other form. Project does not also assume any rectifications. All the material included in this document is based on data/information gathered from various sources and is based on certain assumptions. Financial Analysis of IMC doest not accept any responsibility for the validity and correctness of the information published on its project. due care. investment or otherwise.

2.4.2 1.4.2.3.2 INDUSTRY TYPE 2.6 MISSION 2.3.1 COROLLA 2.4 LEGAL ADVISORS 2.3.5 VISION 2.3 AUDITORS 2.8 STRATEGIC OBJECTIVES 2.3 1.3 HILUX 2.2 HISTORY PRODUCT LINE 2.2 BANKERS 2.4.3.1 BOARD OF DIRECTORS 2.6 FACTORY/REGISTERED OFFICE vii .3.5 REGISTRAR 2.3 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 2.2.4.3.3 MAJOR INVESTORS 2.1 NAME OF COMPANY 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 2.4.7 CORE VALUES 2.3.1 1.2 CUORE 2.4 COMPANY’S INFORMATION 2.3.4 SLOGAN 2.4.Table of Contents Page No EXECUTIVE SUMMARY 1 4 5 5 6 7 CHAPTER NO 1 1.1 2.

1 4.1.4.7 CHIEF FINANCIAL OFFICER 2.1.4 TECHNOLOGICAL FACTORS 3.1 STARS 3.6 4.9 AUDIT COMMITTEE MEMBERS 18 18 18 CHAPTER NO 3 3.2.4.8 COMPANY SECRETARY 2.8 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 BOSTON CONSULTING GROUP MATRIX 3.3 SOCIAL FACTORS 3.3 QUESTION MARK 3.1.2.3.3 4.2 CASH COWS 3.4 THREATS 3.1 POLITICAL FACTORS 3.2 PEST ANALYSIS 3.1.3.2 WEAKNESSES 3.7 4.4 TOYOTA COROLLA BCG MATRIX CHAPTER NO 4 4.3.4 DOGS 3.4 4.2 ECONOMICAL FACTORS 3.Page No 2.1 STRENGTHS 3.2.3 OPPORTUNITIES 3.1 SWOT ANALYSIS COMPANY’S ANALYSIS 19 20 20 22 23 23 24 25 25 26 26 27 28 28 29 29 29 3.3.5 4.2.2 4.4.

4 DEBT EQUITY RATIO 6.2 FIXED CHARGED COVERAGE RATIO 6.2.1.1.2 CURRENT RATIO 6.6 5.9 PROFIT BEFORE INTEREST AND TAX 40 41 42 43 44 4.1 DAY’S SALES IN A/R 6.3 DEBT RATIO 6.3 SHORT TERM LIQUIDITY 6.2 ACCOUNTS RECEIVABLE TURNOVER ix .4 5.12 TAXATION 4.1.1.1.2 5.11 PROFIT BEFORE TAXATION 4.3 5.3.1 TIME INTEREST EARNED RATIO 6.2.2 LONG TERM DEBT PAYING ABILITY 6.7 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 6.1 NET WORKING CAPITAL 6.13 PROFIT AFTER TAXATION CHAPTER NO 5 5.5 DEBT TO TANGIBLE NETWORTH 6.3 ACID TEST 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 6.5 CASH FLOW FROM OPERATIONS RATIO 6.10 FINANCE COST 4.Page No 4.2.4 CASH RATIO 6.2.5 5.1 5.2.3.

5 INVESTOR’S ANALYSIS 6.2 PRICE EARNING RATIO 6.5.3 DIVIDEND PAYOUT RATIO 6.2 TOTAL ASSETS TURNOVER 6.9 GROSS PROFIT MARGIN 6.6 RETURN ON OPERATIN ASSETS 6.3 RETURN ON ASSETS 6.4.4 INVENTORY TURNOVER 6.5 OPERATING ASSETS TURNOVER 6.1 EARNING PER SHARE 6.4.3.8 RETURN ON EQUITY 6.4.4.1 NET PROFIT MARGIN 6.4.3.5.4 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 OPERATING INCOME MARGIN 6.4.4.4 PROFITABILITY INDEX 6.5.4.5.3 DAY’S SALES IN INVENTORY 6.7 SALES TO FIXED ASSETS 6.Page No 6.4.

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

10.1.9% to 34.298 units Net Revenues: down 8.5% to Rs. It is competing with the Honda. 37.6% to 35. Nissan.893 employees Total assets: up 50.6 Manpower: down 6. Operating Highlights: For the Year ended June 30. Toyota Tsusho Corporation. ability to produce quality cars with respect to low cost and research and development in hybrid and bio fuel cars.69 billion Share holders' equity: up 9. In my Opinion it is the best move made by IMC to survive the financial holocaust.9 billion Profit after tax: down 39. Suzuki and Mitsubishi. consolidation of resources and maintaining SCA.276 units Vehicle Production: down 28.4 billion Earning per share: down 39.7% to 1.1% to Rs. 2009 Vehicle Sales: down 30.5% to Rs.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. 17. To sustain its lead IMC must maintain strategic competitive advantage which is its production strength. But recently company is in stabilization mode trying to improve its functional area.6% to Rs. 20. It manufactures and imports cars and enjoys a healthy share in the market.3 billion UNIVERSITY OF EDUCATION OKARA CAMPUS 1 .5% to Rs. Toyota Motor Corporation.

89 2.38 (0.57 37.89 11.15 2008 5.44 187.21) 0.12 0.83 1.69 1.09 78.71 78.00 172.03 14.02 27.49 1.23 1284.56 1.93 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 13.38 19.20 28.09 24.65 0.00 94.30 0.98 0.00 100.99 187.55 29.23 31.00 152.86 18.22 0.89 15.78 1284.45 0.66 15.36 0.44 1.92 45.88 2006 4.32 10.79 2007 6.40 48.90 26.07 0.86 1.51 1.80 42.10 60.65 1.20 23.49 14.08 32.05 0.20 14.00 45.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 3.28 0.86 33.83 1.01 5.09 50.16 2009 6.66 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 % % % 25.60 63.36 UNIVERSITY OF EDUCATION OKARA CAMPUS 2 .48 22.15 1.28 0.46 1.

89 4.51 9.73 2006 7.53 3.73 10.13 11.06 20.53 42.74 9.11 33.17 7.93 8.80 188.71 164.63 33.22 4.27 24.53 11.93 2007 7.70 5.15 6.77 27.29 18.52 2.28 UNIVERSITY OF EDUCATION OKARA CAMPUS 3 .45 6.53 9.02 20.38 2.62 13.76 52.01 16.17 9.29 35.32 11.53 9.61 6.63 25.26 12.11 56.66 1.75 9.23 16.97 30.37 63.03 2.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 5.40 2009 3.75 37.94 11.28 9.67 35.62 6.28 34.66 34.14 5) Investor’s Analysis a) Earning Per Share b) Price Earning Ratio c) Dividend Payout Ratio d) Dividend Yield Ratio Rs Times % % 18.02 5.70 3.66 7.49 17.86 36.77 144.38 2008 5.83 6.26 29.25 17.

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After gathering data and relevant information I ended with three business sectors. Under the constantly increasing competition in the business market. cash flow situation and produce informative report usable by the users of the statements assessing the financial position.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. shareholders. UNIVERSITY OF EDUCATION OKARA CAMPUS 5 . but after applying hindsight I decided to go with Automobile industry and the organization I selected was “Indus Motor Company Limited”. performance and adaptability of the organization. It was bit difficult and confusing for me to select the organization.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 1. Textile industry and Tobacco industry. I choose best companies in their respective class. regulators and other players in the stock market. Automobile industry.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. both in Pakistan and Worldwide. these analyses portray a very clear and informative picture to the investors. The performance evaluation is based on historic and current available data about the operations of the company. I started brainstorming and came up with many well known organizations having large operations. Finally the project draws conclusions based on my analysis about the current situation and the prospects of the Indus Motor Company Limited . 1.

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

European and Korean manufacturers. Sigma Motors made its mark with Rover recently.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. the sales of cars has gone down by 15 percent.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT nineties. The industry operates under franchise and technical cooperation agreements with Japanese. 1. All this obviously has also adversely impacted the UNIVERSITY OF EDUCATION OKARA CAMPUS 7 . Mini & Rolls Royce by Dewan Motors. According to the current figures. Dewan Mushtaq Motors with imported Mitsubishi range of vehicles. 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. both import and local. Mercedes and Audi have also launched their brands in Pakistan catering to the very upper niche. Apart from these the big brands of the auto industry also entered the Pakistani market such as BMW . Porsche. The local vendors have now to face the curtailed orders. 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. which may most hit the smaller ones with closures. Roma Automobiles and Foton by Dewan Innovations Limited along with Pak Cherry Automobiles. Lately Few new market players entered the market such as Gandhara Nissan again with now the imported Nissan range of vehicles. As a result the production has also gone down culminating with its impact on supply schedule. Nexus Automotive with Chevrolet imported vehicles and others imported Chinese vehicles such as Karakoram Motors.

One billion (9%) when September to December data is compared with last year. The government has suffered a revenue loss of Rs. Moreover. government announced a withholding @ 5 percent on purchase of cars which was reduced to 2. has proved a reversal in collection of the revenue. the ECC approved the five years policy (AIDP) for auto sector prior to announcement of budget. UNIVERSITY OF EDUCATION OKARA CAMPUS 8 . Levy of such tax is a deviation from the spirit of preannounced policy thus causing anxiety to thee auto manufactures. the cost of financing has also increased interest rates from nearly 8 to 15 percent.5 percent and imposed from 1st September 2007. The current situation however. The uplift in the car market is also suffering due to stringent regulations announced by State Bank of Pakistan recently for car financing.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT government revenues in substantial terms. In the budget 2007-08. 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. With low custom duty rates for CBUs and unprecedented import of used cars. Last year. The intension was obviously to enhance government revenue.

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1990. Its core business is to manufacture and market UNIVERSITY OF EDUCATION OKARA CAMPUS 10 . IMC is competing with the Honda. Toyota Motor Corporation Japan (TMC) and Toyota Tsusho Corporation Japan (TTC) for assembling. vehicles in Pakistan through its dealership network. The majority shareholder is the House of Habib. Indus Motor Company’s plant is the only manufacturing site in the world where both Toyota and Daihatsu brands are being manufactured. It manufactures and Imports Cars and enjoys a healthy share in the market. Nissan. Toyota Motor Corporation and Toyota Tsusho Corporation have 25 % stake in the company equity.1 HISTORY: Indus Motor Company (IMC) is a joint venture between the House of Habib. having an assembling capacity of 55. IMC is engaged in sole distributorship of Toyota and Daihatsu Motor Company Ltd. To sustain its lead IMC must maintain Strategic Competitive Advantage which is its Production Strength. Suzuki and Mitsubishi. after the Pak Suzuki Motors. Indus Motor is the country's second largest auto manufacturer. progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 01. ability to produce quality cars with respect to low cost and Research and Development in Hybrid and Bio Fuel Cars. But recently Company is in Stabilization mode trying to improve its functional area.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 2. consolidation of resources and maintaining SCA. IMC's production facilities are located at Port Bin Qasim Industrial Zone near Karachi in an area measuring over 105 acres. The company was incorporated in Pakistan as a public limited company in December 1989 and started commercial production in May 1993.000 units per annum. The shares of company are quoted on the stock exchanges of Pakistan.

In addition.2. Toyota Hilux and 3 variants of Daihatsu Cuore. Prado. the company also sells auto parts and accessories.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. 2. To ensure highest level of productivity world-renowned Toyota Production Systems are implemented. Its product line includes 6 variants of newly introduced Toyota Corolla. having a contribution of 66.5% in company's sales. Heavy investment was made to build its production facilities based on state of art technologies.0D 6) 2. Major contributor to the revenue is Corolla.2 PRODUCT LINE: 2. RAV. The company also offers six different imported vehicles namely Toyota Camry.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT cars.0D Saloon UNIVERSITY OF EDUCATION OKARA CAMPUS 11 . Land Cruiser. Hilux and Hiace.

2 CUORE: Cuore consist of 3 variants of cars that are as under: 1) CX 2) CX CNG 3) CX A/T 2.3 HILUX: Hilux consist of following car.2.3 COMPANY’S PROFILE: 2.3.1 NAME OF COMPANY:  Indus Motor Company Limited. 1) 4 x 2 S/Cab 2.3.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 2.2 INDUSTRY TYPE:  Automobile Industry (Cyclical) UNIVERSITY OF EDUCATION OKARA CAMPUS 12 . 2.2.

INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 2. b) Toyota Motor Corporation Japan.3.6 MISSION: UNIVERSITY OF EDUCATION OKARA CAMPUS 13 . (TMC) c) Toyota Tsusho Corporation Japan. delighting customers with a wide range of products and solutions in the automobile industry with the best people and the best technology.3 MAJOR INVESTORS: a) House of Habib.5 VISION: To be the most respected and successful enterprise.3.3. (TTC) 2. 2.4 SLOGAN: 2.3.

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

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

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

Mahmud & Co. United Bank Limited. Habib Metropolitan Bank Limited. NIB Bank Limited.4. Karachi 2. 2. Bank Al-Habib Limited. Ferguson & Co.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT                Bank Alfalah Limited.4.4. Citibank N. Barclays Bank PLC. MCB Bank Limited. The Royal Bank of Scotland Limited.5 REGISTRAR: UNIVERSITY OF EDUCATION OKARA CAMPUS 17 . Habib Bank Limited. Chartered Accountants. Soneri Bank Limited. The Bank of Tokyo-Mitsubishi UFJ Limited. Sayeed & Sayeed Co. HSBC Bank Middle East Limited. State Life Building 1-C Chundrigar Road. Brohi & Company Mansoor Ahmed Khan & Co. 2.3 AUDITORS: F. National Bank of Pakistan. Standard Chartered Bank (Pakistan) Limited.A.4 LEGAL ADVISORS:     K.

House of Habib Building (Siddiqsons Tower). H.toyota-indus. Karachi . Main Shahrah-e-Faisal.4.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Noble Computer Services (Private) Limited. Phones (PABX) (92-21) 34720041-48 (UAN) (92-21) 111-TOYOTA (869-682) Fax (92-21) 34720056 www.Z/1/P-1.8 COMPANY SECRETARY:  Mustafa Hasan Lakhani 2.4.com 2.6 FACTORY/REGISTERED OFFICE: Plot No. Habib (Committee Chairman) Farhad Zulficar Yutaka Arae Mitsuhiro Sonoda Ahson Tariq (Secretary) UNIVERSITY OF EDUCATION OKARA CAMPUS 18 .7 CHIEF FINANCIAL OFFICER:  Muhammad Faisal 2.W.9 AUDIT COMMITTEE MEMBERS:      Mohamedali R. 2. Port Qasim Authority.4.4. 3-Jinnah C. N. Society.75350. Mezzanine Floor. Karachi.

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People have a lot UNIVERSITY OF EDUCATION OKARA CAMPUS 20 .1. 3. 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.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 3. Regular assessment and SWOT analysis is thus given importance.1 SWOT ANALYSIS: In formulating sound strategic plans. An effective strategy will take advantage of an organizations strengths and opportunities at the same time it minimizes or overcomes weaknesses and threats. 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.

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

leading to convenience for the customers.  There is some weakness in the case of ergonomic interior of Toyota corolla as well. The power steering is not speed sensitive and the air conditioning system in severe heat is in-effective. UNIVERSITY OF EDUCATION OKARA CAMPUS 22 . The dealers sometimes tend to deviate from the recommended course of action and principles of Toyota.  The company is besieged with internal operating problems which are not very serious. assembly and delivery takes some more time.  The company feels that one weakness is the changing policies of the government and also the 30% cash L/C margin. Interior dimensions are less and heavy body and small engine sometimes create problems in hilly areas. This results in customers complaints sometimes. For this reasons inventory has to be kept low. This has lead to an adverse environment.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT are twenty five dealers in Pakistan where sales. 3.  A lot of effort is pull into the sales forecasting because of the changing political and economic scenarios. service and spare parts are offered. This is because CKD kits are ordered four months before and once they arrive from Japan.  There are some weaknesses in the dealership network.2 WEAKNESSES: Weaknesses are the lacking points which every organization must avoid in order to make its operational effectiveness.1. Because of dependency on Toyota’s principles delivery of cars is done after 4-6 months.

3 OPPORTUNITIES: In fact.1.  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.1. Vehicles were exported to Bangladesh just once in order to prove the plant capacity and efficiency of the company. When we see the possible threats for IMC.  It can offer discounts to Government departments and large organizations on purchase of its vehicles in more quantities. the threats are prevailing such as: UNIVERSITY OF EDUCATION OKARA CAMPUS 23 . 3.g.  Toyota can do better by focusing on segments much more than presently being done. So basically these are our opportunities. The opportunities for IMC are:  Export is a major opportunity for Toyota Indus Motors. still bank has threats in various sectors. Shaheen Force and the dignitaries where corolla has an opportunity to deal with the business markets along with dealing in consumer markets. when we study all our weaknesses critically & deeply than we come to know that we can convert our weaknesses into strengths. Motorway Police. This should be started again.  Toyota should also try to lower its price of Corolla in the segment where Honda city has penetrated.  The contract with the government departments e.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 3.4 THREATS: Though Indus Motor Company Limited has a strong footing and maintain a good number of loyal customer.

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

80. In 1996 the sales tax on CBU was increased cost to 18 percent. In 1995.2. Just a half year back the general sales tax has been increased to 16 percent promoting more price like.2. 3. Inflation is a major economic factor which has affected the Pakistan’s Automobile industry including Toyota. 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. frequent change in duty tariff and smuggling are main reasons of unstable market conduction.000 to Rs. The Pakistan Government’s inconsistent policies.1 POLITICAL FACTORS: Government at all levels is an important component of the general environment. 1. all the previous taxes and duties were rolled into one import duty of 30 percent on CKD kits as well as CBU vehicles. 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.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 3. The current inflation UNIVERSITY OF EDUCATION OKARA CAMPUS 25 .00. Like other motor companies Toyota is also affected by the current changing policies of the government.2 ECONOMICAL FACTORS: Government economic policies at the federal level clearly influence the ability of the industries to survive and progress. No organization or industry is immune from the various decisions made by the government. So there is going to be a Rs.000 increase in vehicles.

going to result in a price increase. This is the reason that Toyota is proud of the fact that Pakistani society considers Toyota vehicles to be a symbol of reliability.3 SOCIAL FACTORS: Society holds a global or summary belief that an organization is proper and worthy of support. The recent increase of 16 percent sale tax is however. Its vehicles are regarded as a status symbol. luxury and a have to be trusted.2.4 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. comfort. 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. the market picked up. Despite changes in the means used to motivate people and the variety of incentives that have been offered to stimulated production. 3. Toyota takes pride in being the most trusted name all over Pakistan. 3. UNIVERSITY OF EDUCATION OKARA CAMPUS 26 . 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. 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. the resulting increase has been negligible when compared to that of created by technology.

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

3. It generates large amounts of cash for the organization and usually segments in which management can make additional investments and earn attractive returns.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 3. It generates large amount of cash because of its strong relative market share.1 STARS: Toyota Corolla of IMC falls into the category of Stars. Typically needs this cash to support its rapid and significant growth. but also consume large amounts of cash because of its high growth rate. 3. 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. therefore the cash in each direction approximately nets out. In UNIVERSITY OF EDUCATION OKARA CAMPUS 28 . The portfolio of a diversified company always should have stars that will become the next cash cows and ensure future cash generation. it will become a Cash Cow when the market growth rate would decline.3.2 CASH COWS: If IMC’s Toyota Corolla could maintain its large market share.

3. 3. 3. The company wants to dissolve that product.3. 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.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.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT case of Indus Motor Company Limited. In case of IMC the question mark is actually the Cuore.3 QUESTION MARK: According to Boston consulting group matrix. Santro and some imported vehicles like Vitz are already present in the market.3.4 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. UNIVERSITY OF EDUCATION OKARA CAMPUS 29 . The unit can be very successful in the market or it can be simply being ruined of. As the Suzuki Aulto. a question mark is such a business unit about which you are not about the success or failure. It is due to the large competition of in this category of cars. Mehran.

3 DOGS UNIVERSITY OF EDUCATION OKARA CAMPUS 30 .0D Saloon CASH COWS SE Saloon GLi QUESTION MARK Xli 1.0D 2.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT STAR 2.

.

226 4.236.957 1.648. Than gross profit again decrease in FY 2009.440.845 2009 37.385.481 2.848.256 4.302.072.864.646 2006 35.745.535 4.324.013 1.229.665. 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.061.487 3.711 2.604 2.290.464 2007 (Rupees in '000) 39.843 3. It is due to the low sales of the company.501.1 CONDENSED INCOME STATEMENT: Indus Motor Company Limited Condensed Income Statement For The Year Ended June 30.601.701 2008 41.484.706.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4. The reason behind low production is the instable environment of Pakistan in last year.830 3.594 3.102 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.500.134.046.306 4. 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.178 2.147.777 2.221 2.952 2. 2005 Net Sales Gross Profit Operating Profit Profit before Taxation Net Profit 27.063.186 1.629 3.034 2. UNIVERSITY OF EDUCATION OKARA CAMPUS 32 .423.541.

66% 141.19% Vertical Common Size 100.423.824.66% in FY 2006 as compared to FY 2005. as compared to FY 2006.52% 150.501 3.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4.05% -8.559.36 billions while there is decrease in sales of 3.601. FY 2008 and FY 2009 as compare to FY 2005.19% in FY 2007.08% and 37.85% whereas the increase was 6.239) Percentage Comparative Chain Base 27.226 41.535 39.604 7.00% 100. as compared to FY 2007.55 billions in FY 2009 with respect to the preceding years.635. Similarly in FY 2007 and FY 2008 there is an increasing trend by 3.00% 100.59% Percentage Comparative 2005 Base 127. 50.061.2 NET SALES: 2005 2006 2007 (Rupees in '000) 2008 2009 Net Sales Comparative Chain Base 27.691 2.66% 10.63 billions.59% in sales in FY 2009 as compared to the FY 2008.52%.08% 137.00% 100. sales of FY 2006 have been increased by 7.85% 6. In the term of percentage sales have increased by 27.05% in FY 2008.82 billions and 2. UNIVERSITY OF EDUCATION OKARA CAMPUS 33 . The sales have increased 41. sales increased by 10.034 35.236. In FY 2007.864.00% 100.843 37. while there is a decrease of 8.00% In comparison with FY 2005.362.617 (3.

FY 2007 and FY 2008 respectively as compare to the preceding years.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4. FY 2008 and FY 2009 respectively.726 2.G.G.356 35.88% 139.S 24.07%. 11. C.76% Vertical Common size 90.86% In FY 2006.94% 142.632 37.575.S as a part of sales.29% and 6. 9.938) Percentage Comparative Chain Base 24.63% 90.894. While C. FY 2008 and FY 2009 respectively. In FY 2009 C.034. FY 2006.S has been recorded with 6.36% 8.S has decreased by 9.03 billions as compared to FY 2008 due to the low production.77%.G.07% 150. An increasing trend was recorded by 24.95 billions with respect to the preceding year.S decreased by 5.G.71% 93.G.20% 88. FY 2007 and FY 2008 increase in C.42% in FY 2009 with respect to FY 2008. 3.3 COST OF GOODS SOLD: 2005 2006 2007 (Rupees in '000) 2008 2009 C.531. 11.88%.954.88% 11.53% in FY 2006.S increased by 39.76% in FY 2007.36% and 8.42% Percentage Comparative 2005 Base 124.S has been decreased by 2.23% 88.050 3.37%.19 billions.724 (2.088.620. As compared to FY 2005 C.194.418 Comparative Chain Base 6.G. There is a deceasing trend in C.540.80%. FY 2007.53 billions and 2.856 31. 11.53% -5. 50.94% and 42.G.906 34. UNIVERSITY OF EDUCATION OKARA CAMPUS 34 .14% in FY 2005.

P as compared to FY 2007 and FY 2008 respectively. FY 2008 and FY 2009 respectively. While GP of FY 2008 and FY 2009 decreased by 13.52 billions in G.14% G. FY 2007. 88.107) (1.451 292.77% 11. In FY 2008 and FY 2009 there was a decrease of 592 millions and 1.88% Vertical Common Size 9. As compared to sales.86% in FY 2005. As compared to FY 2005 G. UNIVERSITY OF EDUCATION OKARA CAMPUS 35 .P has been increased by 64.63%. G.44 billions and 292 millions as compared to the FY 2005 and FY 2006 respectively.487 2. FY 2006.324.61% with respect to preceding years respectively.12% as compared to FY 2005 was recorded.80% 11.29% 6.706.06% in FY 2006 and FY 2007 as compared to the FY 2005 and FY 2006 respectively. G.71% and 93.178 4.186 Comparative Chain Base 1.629 4.965 (592.4 GROSS PROFIT: 2005 2006 2007 (Rupees in '000) 2008 2009 Gross Profit 2.440.27% and 7.09% and 42.21%.37% 9. in FY 2007 and FY 2008 respectively while in FY 2009 the decrease of 14. 88.02%.147. 90.09% 142.524.441.33% and 39.23%.33% -39.06% -13.P has been decreased by 90.27% 164.21% 85.27% 7.848.61% Percentage Comparative 2005 Base 153.P has been increased by 53.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4.P of FY 2006 and FY 2007 increased by 1.301) Percentage Comparative Chain Base 53.594 3.

FY 2008 and FY 2009 respectively.19%.19%. FY 2008 and FY 2009 respectively. FY 2008 and FY 2009 respectively in comparison with the preceding years.17% Operating expenses have been increased by 75.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4.657 822.83% in FY 2005.577 Percentage Comparative Chain Base 13.76%.07% 1.915 9.76% was recorded in FY 2007.55% 137.11% and 97.19% 135.98% 1.55%. FY 2007.76% Vertical Common Size 2. As compare to sales.21% 4. UNIVERSITY OF EDUCATION OKARA CAMPUS 36 .373 775. 19. there is a significant decrease in operating expenses by 97. FY2007. 127 millions.369 37. In terms of percentage.957 647. 98.19% 19. FY 2008 and FY 2009 respectively in comparison with the preceding years.5 millions in FY 2006.19% 143. operating expenses have been increased by 13.5 OPERATING EXPENSES: 2005 2006 2007 (Rupees in '000) 2008 2009 Operating Expenses 571. 98. 98.234 Comparative Chain Base 75. FY 2006.1 millions. 1.93%.416 127. 9.84% 1.89% 2. 43. As compared to FY 2005 increase of 35.288 784.79% Percentage Comparative 2005 Base 113.16%.76% 1.21% and 4.02%.3 millions and 37. FY 2007.79% in FY 2006. 37.

6 OPERATING PROFIT: 2005 2006 2007 (Rupees in '000) 2008 2009 Operating Profit 2.01% 4. UNIVERSITY OF EDUCATION OKARA CAMPUS 37 .93 % of sales in FY 2005 and FY 2006 then it decreased to 9. While it decreased in FY 2008 and FY 2009 by 601 millions and 1.134.500.063. while the decrease of 29.74% and 43. In FY 2006 and FY 2007 operating profit increased by 64.38% 7.952 Comparative Chain Base 1. Operating profit is 7.476) (1.050 (601.72% -16.306 3.97 % in FY 2007.40% and 3.56 was recorded as compared to the FY 2005.93% 9.665.74% 143.830 1.221 3.878) Percentage Comparative Chain Base 64. Then it decreased by 16.501.38%.37% Vertical Common Size 7.73% 9.256 3.561.41% -50.63% was recorded on FY 2009 as compared to FY 2005.41% and 50.56 billions respectively with respect to the previous years.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4.72 % respectively as compared to FY 2005 and FY 2006.98% Percentage Comparative 2005 Base 164.01% and 4. 7.36 billions and 165 millions in comparison with the FY 2005 and FY 2006 respectively.035 165.56% 70. In FY 2007 and FY 2008 increase of 71.73% and 9. FY 2008 and FY 2009 respectively.98% in FY 2008 and FY 2009 respectively as compared to FY 2007 and FY 2008.97% Operating profit is increasing from FY 2006 to FY 2007 by 1.366.40% 3.01% 171.

41% In FY 2006 and FY 2007 other operating expenses increased by 135 millions and 26 millions respectively as compared to the preceding years.479 Comparative Chain Base 135.714) Percentage Comparative Chain Base 72.08% in FY 2007 and FY 2008 respectively.237) (149.85% Vertical Common Size 0.7 OTHER OPERATING EXPENSES: 2005 2006 2007 (Rupees in '000) 2008 2009 Other Operating Expenses 186.193 156.08% 83.746 348.614 321.132 26.91% 0.29% -12.41% and 8.89% 0. As compared to FY 2005 the other operating expenses increased by 86.41% 186. In terms of percentage as compared to the preceding years.90% Percentage Comparative 2005 Base 172.684 (42. in FY 2006 and FY 2007 other operating expenses increased by 72.12% and 48. UNIVERSITY OF EDUCATION OKARA CAMPUS 38 .74% 0.71% and 64.90% in FY 2008 and FY 2009 respectively.12% -48.71% 164.41% 8.15% in FY 2009.68% 0. While the decrease of 42 millions and 149 millions was recorded in FY 2008 and FY 2009 respectively as compared to preceding years.89% respectively while decreased by 12. while decreased by 16.430 306. Other operating expenses are recorded as less than 1% of the sales in all the years.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4.

39% 1.87 % and 7.10%.92%.22% in FY 2006 as compared to the FY 2005.87% -7.456) (59.59% was recorded in FY 2007.22% -8.92% 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.63% 2.90% in FY 2007 and FY 2008 respectively.07% and 61.90% in FY 2006 than it decreased to 2. FY 2008 and FY2009 respectively with respect to the preceding years. As compared to FY 2005 the other operating income increased by 108.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4.8 OTHER OPERATING INCOME: 2005 2006 2007 (Rupees in '000) 2008 2009 Other Operating Income Comparative Chain Base Percentage Comparative Chain Base 449.77% in FY 2007.834 727.07% 161.021. 75.769 (85.90% 1. 148 millions and 59 millions was recorded in and FY 2007.443 1. 15. In terms of percentage other operating income has increased by 127.10% 175. while the massive decrease of 8. FY 2008 and FY 2009 respectively.41% -15.63% in FY 2005 than it increased to 2. While in FY 2009 it decreased to 1.39% and 1.41%.922) (148.90% 2.77% Vertical Common Size 1.59% Percentage Comparative 2005 Base 227.22% 208. Other operating income as compared to sales was 1.212 935. FY 2008 and FY 2009 respectively with respect to the preceding years.754) 127.290 786.080 571. UNIVERSITY OF EDUCATION OKARA CAMPUS 39 .

695) (1.25% in FY 2006 and FY 2007 respectively with respect to the preceding years.89% 8.47% In chain base comparison.68 % in FY 2005.050 4.722 4.64% -41.20% 177.471.25% -16. As compared to FY 2005 the profit increased by 77.89% in FY 2007. 11.64% and 41.53% was recorded in FY 2008 and FY 2009 respectively as compared to the preceding years.544.553 Comparative Chain Base 1.918) Percentage Comparative Chain Base 75.166 3.46% Vertical Common Size 8.20% 1. As a part of sales.444 (707. 10.68% 11. EBIT was increased by 1.92% in FY 2006. while profit decreased up to 13.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4.20% and 1. It decreased by 707 millions and 1.39% and 47. In terms of percentage. 8.471 2.53% Percentage Comparative 2005 Base 175. and 5.56% in FY 2008.87% 86.56% 5.672 52.802.39% 147.47 billions in FY 2008 and FY 2009 respectively with respect to the preceding years. But massive decrease of 16. the profit increased by 75.9 PROFIT BEFORE INTERST AND TAX: 2005 2006 2007 (Rupees in '000) 2008 2009 Profit before Interest and Tax 2.252. UNIVERSITY OF EDUCATION OKARA CAMPUS 40 .397.072.47% in FY 2009.199.87% in FY 2007 and FY 2008 respectively.54% in FY 2009.80 billions and 52 millions in FY 2006 and FY 2007 as compared to preceding years. EBIT is 8.92% 10.

Finance cost is recorded as less than 1% of the sales in all the years.34% 0.07% 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.79% in FY 2007.89%. Than massive increase of 861.540 Comparative Chain Base 32.21% Vertical Common Size 0.093 126. While it increased by 23 millions in FY 2009 as compared to the FY 2008.36% 0.760 26.925) 23.07% and 71. while it decreased by 82.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4.13% -87. FY 2008 and FY 2009 respectively.11% 2.91% 24.852 (104.06% 0.945 22.83% 861.93% 28. 97.260) (19.685 2.59% Percentage Comparative 2005 Base 134. As compared to the FY 2005 finance cost decreased by 75. In comparison with the previous years it increased by 34.13% and 87.10 FINANCE COST: 2005 2006 2007 (Rupees in '000) 2008 2009 Finance Costs 94.91% -82.780 Percentage Comparative Chain Base 34.01% 0.91% in FY 2006.59% was recorded in FY 2009.83% in FY 2007 and FY 2008 respectively. UNIVERSITY OF EDUCATION OKARA CAMPUS 41 .

79% 88.76 billions and 156 millions as compared to FY 2005 and FY 2006.769.229.23% Percentage Comparative 2005 Base 176.83% 8.481 3.83%.26% -42.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4.56% 10.40% in FY 2007.85% 183.34% 11.40% In FY 2006 and FY 2007 profit before taxation increased by 1.23% in FY 2008 and FY 2009 as compared to the preceding years.55% 5. It increased to 11.84% Vertical Common Size 8.85% -16.85% and 3. Profit before taxation is 8.072.26% and 42.046.65% and 53.541.85% 3.957 4.704 (687. UNIVERSITY OF EDUCATION OKARA CAMPUS 42 .11 PROFIT BEFORE TAXATION: 2005 2006 2007 (Rupees in '000) 2008 2009 Profit before Taxation 2. Then it decreased by 687 millions and 1.85% in FY 2006 and FY 2007 in comparison with the preceding years while it decreased by 16.711 2. FY 2008 and FY 2009 respectively.770) (1. and then it decreased to 10. Profit before tax has increased by 76.698) Percentage Comparative Chain Base 76.49 billions in comparison with the preceding years.65% 153.495.55% and 5. 8.777 4. It increased by 83.013 Comparative Chain Base 1.820 156.16% in FY 2009 in comparison with the FY 2005.79% in FY 2007 and FY 2008 respectively while it decreased by 11.56% in FY 2006.34% of sales in FY 2005.302.

80% in FY 2007.70% -47.75% in FY 2009 of sales.32% and 52.02% in FY 2008 and 1.96% in FY 2005.18% in FY 2006 and FY 2007 in comparison with the preceding years.32% 152. While it decreased by 232 millions and 589 millions in FY 2008 and FY 2009 respectively as compared to the preceding years.12 TAXATION: 2005 2006 2007 (Rupees in '000) 2008 2009 Taxation 818.06% 4.77% Vertical Common Size 2.75% Tax revenues have increased by 606 millions 59 millions in FY 2006 and FY 2007 respectively in comparison with the previous years.16% Percentage Comparative 2005 Base 174. As compared to FY 2005 tax revenues increased by 81. 3.96% 4. 3.955) Percentage Comparative Chain Base 74.250.424.18% -15.02% 1. 4.80% 3. while it decreased by 19.780 1.86% 80.313 1.002 59.866 660. UNIVERSITY OF EDUCATION OKARA CAMPUS 43 .914) (589.06% 181. Taxation is 2.06% and 4.04% in FY 2006. In terms of percentage.23% in FY 2009.16% in FY 2008 and FY 2009 respectively as compared to previous years.86% in FY 2007 and FY 2008 respectively.911 Comparative Chain Base 606.04% 3.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4. while it decreased by 15.467 (232. it increased by 74.311 1.483.70% and 47.

UNIVERSITY OF EDUCATION OKARA CAMPUS 44 .INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 4.237 (454.385.30% Vertical Common Size 5.53% and 3.70% in FY 2009.39% 184.66% in FY2005.648.67% in FY 2006 and FY 2007 respectively.52%. 7.646 2.16 billions and 97 millions in FY 2006 and FY 2007 respectively.54% Percentage Comparative 2005 Base 178.52% 7. profit was 5.57% -39.701 2.38%.03% 5.818 97.464 2.845 1.53% 3.13 PROFIT AFTER TAXATION: 2005 2006 2007 (Rupees in '000) 2008 2009 Profit After Taxation 1.743) Percentage Comparative Chain Base 78. As compared to the FY 2005 the increased of 84.38% 7.94% and 54. FY 2008 and FY 2009 respectively.94% 154.39% 3. in comparison with the preceding years the income of company increased by 78. while it decreased by 6. 7.856) (905.484.30% was recorded in net income in FY 2007 and FY 2008.39% and 3.57 and 39.290.03% 5. but it decreased massively by 16. FY 2006.163. As a part of sales. FY 2007.54% in FY 2008 and FY 2009 respectively.102 Comparative Chain Base 1. In terms of percentage.30% 93.67% -16.66% As compared to the previous years.745. net income of the company increased by 1. while it increased by 454 millions and 905 millions in FY 2008 and FY 2009 respectively.

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800.149.153 6.530.914 13.673 503.377.254.377.554 4.035 6.436.043.800.805 4. FY 2008 and FY 2009 is giving a clear look at the company’s resources and claims of outsiders.124 9.968.403 1.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 5.372 3.1 CONDENSED BALANCE SHEET: Indus Motor Company Limited Condensed Balance Sheet As on June 30.475.972 35.795 49.926 6.878 901.524 3. UNIVERSITY OF EDUCATION OKARA CAMPUS 46 .314 302.830.912 187.545 17.696 2.329 7.149 8. There was no claim of outsiders on the company’s resources.651.731 10.153 3. FY 2006.455 14.271 438.478 16.221 6.563 9.914 120.715.779.530.900.884.095.885.975 8.592.444.513.977 29.879 6.700 10. 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 11.177. Net assets of the company are showing an increasing trend from FY 2005 to FY 2009.631 5.455 54.138 9.673 The condensed balance sheet of FY 2005. FY 2007. The long term debt position of the company is obvious and seems that company has a real strong background.973 10.469 3.103 1.869 8.902.257.560.062 3.319 9.784 3.035 87.254.123 10.657 9.968.664.568 10.650 4.296.124 210.940 7.664. 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.478 532.410.690 4.340 9.307 10.850 6.408.

In terms of percentage. the current assets increased in FY 2006 by 2.56% 70.80% and 28.917. while current assets decreased by 3.050. with respect to the preceding years the increase of 26.717 (535.73% in FY 2007 and FY 2008 respectively. 70.784 16.664.09% in FY 2006. As compared to FY 2005.54% in FY 2009.535 Percentage Comparative Chain Base 26. 86.328) (3. UNIVERSITY OF EDUCATION OKARA CAMPUS 47 .895.56% in FY 2007.319 Comparative Chain Base 2. than it increased by 72.30% in FY 2008 and 80.54% Vertical Common Size 91.05 billions was recorded in FY 2009.31% was recorded in FY 2007.66% 89.10% 121. increase of 21.715.560.89 billions in FY 2007 and FY 2008 respectively.30% 80.81% In comparison to the preceding years.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 5.10% was recorded in FY 2006.66% of total assets in FY 2005.81% in FY 2009.91 billions and than decreased by 535 millions and 3. while again increase of 7.657 13.46% 149.80% -28.545) 7. Current assets were 91. 89.329 9.940 14.09% 86.54% in FY 2008 and again it increased by 49.10% -3.95% Percentage Comparative 2005 Base 126. than it decreased by 13.73% 72.177.2 CURRENT ASSETS: 2005 2006 2007 (Rupees in '000) 2008 2009 Current Assets 11.95% in FY 2009.31% 86.095.

and increase of 161. the current liabilities increased in FY 2006 by 1. In comparison with FY 2005 the decrease of 3. FY 2007. 59.631.68% was recorded in FY 2007 and FY 2008 respectively.69%.31%.10 billions in FY 2009.53% -49.32% 128.85%.664.492 (2.295) 6.3 CURRENT LIABILITIES: 2005 2006 2007 (Rupees in '000) 2008 2009 Current Liabilities 7. 27.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 5.03 billions and 3.78 billions and than decreased by 2.79% As compared to the previous years.628) (3.444. FY 2008 and FY 2009 respectively.31% 27.85% 59.00% in FY 2007 and FY 2008 respectively.23% 96. As a part of total liabilities and shareholder’s equity.63 billions in FY 2007 and FY 2008 respectively. while it increased by 28.554 7.70% 49.53% Percentage Comparative 2005 Base 123.410.926 3.98% in FY 2009. FY2006. It again increased by 6.53% in FY 2009 as compared to the preceding years.780.79% in FY2005.98% Vertical Common Size 62.49% and 47. The percentage change was increase of 23.779.884.00% 161.631 9.23% in FY 2006 than decrease of 21. UNIVERSITY OF EDUCATION OKARA CAMPUS 48 .850 Comparative Chain Base 1.033.30% and 50.219 Percentage Comparative Chain Base 23.23% -21. 47. total currents liabilities were 62.062 9.105.49% 47.69% 47.53% and 49.

62% in FY 2007. 303.89% Vertical Common Size 8.934. 10. 377 millions and 1.02 in FY 2009.65% in FY 2006.46% Percentage Comparative 2005 Base 171.65% -2.85%. while the decrease of 99 millions was recorded in FY 2009 as compared to FY 2008. 13.83% 393. 29. while the decrease of 2.98% 92.852 4.98% and 92. The increase of 109.19% in FY 2005.34% 19. UNIVERSITY OF EDUCATION OKARA CAMPUS 49 .89% in FY 2009 was observed in total fixed assets as compare to the FY 2005.46% was recorded in FY 2009 in comparison with FY 2008.02% Total fixed assets were increased by 717 millions.37% 29.85% 21.703 377.93 billions in FY 2006.473 Comparative Chain Base 717.62% 403.887 1.033.590 2.939.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 5. In terms of total assets.85% 13. FY 2007 and FY 2008 as compared with FY 2005.093.262 1. total fixed assets were 8.716. FY 2007 and FY 2008 respectively as compared to the previous years.37% in FY 2007.83% in FY 2008 and 293.4 TOTAL FIXED ASSETS: 2005 2006 2007 (Rupees in '000) 2008 2009 Total Fixed Assets 998.34% in FY 2008 and 19.910 (99.85%in FY 2006.762 3.19% 10. 21. There was increase of 71. FY 2006 and FY 2007 respectively.289) Percentage Comparative Chain Base 71.85% 209.

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

.

830.1 NET WORKING CAPITAL: Net working capital is a financial metric which represents operating liquidity available to a business. working capital is considered a part of operating capital.651.149. 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. UNIVERSITY OF EDUCATION OKARA CAMPUS 54 .153 2009 6. It is calculated by following formula: Current Assets .513.1 SHORT TERM DEBT PAYING ABILITY: 6.Current Liabilities 2005 3.403 2008 5.885.878 2006 4.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6. Along with fixed assets such as plant and equipment.1.469 Interpretation: Working capital of the company has always been maintained very high up to FY 2007.103 2007 6.

49 : 1 2007 1.69 : 1 Interpretation: Current Ratio of the company has a increasing trend up to FY 2008.56 : 1 2009 1.46 : 1 2006 1.2 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 was minimum in FY 2005. It compares a firm's current assets to its current liabilities. It is expressed as follows: Current Assets Current Liabilities 2005 1.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.1. 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. 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 .83 : 1 2008 2.

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. 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.44 : 1 2008 1.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6. primarily because the working capital ratio allows for the inclusion of inventory assets. Current Assets .Inventory Current Liabilities 2005 1.86 : 1 2009 1.05 : 1 2006 1. Then it decreased slightly in FY 2009.3 ACID TEST RATIO: A stringent test that indicates whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory.1. The acid-test ratio is far more strenuous than the working capital ratio. UNIVERSITY OF EDUCATION OKARA CAMPUS 56 .07 : 1 2007 1.

In FY 2009 the decrease in cash ratio shows that company has now started using the cash up to its maximum advantage. than it increased in FY 2007 and FY 2008 showing that company in not using cash to its best advantage.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.98 : 1 Interpretation: Cash ratio of the company was quite good in FY 2005 and FY 2006.79 : 1 2007 1.1.15 : 1 2008 1. UNIVERSITY OF EDUCATION OKARA CAMPUS 57 .INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6. The formula for calculating the cash ratio is as under: Marketable Securities + Cash Current Liabilities 2005 0.16 : 1 2009 0.88 : 1 2006 0.

UNIVERSITY OF EDUCATION OKARA CAMPUS 58 .21) : 1 2009 0.38 : 1 2008 (0.1. 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.28 : 1 2007 0.12 : 1 2006 0.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6. 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. Ratio increased in FY 2006 and FY 2007.66 : 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. The formula for calculating the ratio is: Cash from Operations Current Liabilities 2005 0.5 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.

The times interest earned calculation is a corporation’s income before interest and income tax expense.09 Interpretation: The times interest earned ratio of the company was very low in FY 2005 and FY 2006.08 2007 187. company is still able to generate 78 times the expense of interest from its operations.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.2 LONG TERM DEBT PAYING ABILITY: 6. The calculating method is: Earning before Interest and Tax Interest Expense 2005 25. This is due to the high interest expense of the company. divided by interest expense.44 2008 1.48 2006 33. But in FY 2009.23 2009 78.2.284.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6. UNIVERSITY OF EDUCATION OKARA CAMPUS 59 . after a massive decrease. In FY 2007 and FY 2008 a increasing trend is shown in the ratio which shows that company has reduced its interest expenses.

60 2006 32.44 2008 1.09 Interpretation: Fixed charged coverage ratio of the company is mostly same as time interest earned ratio. It shows that company has no long term finances on which company has to pay interest.10 2007 187. Figure shows the increasing trend from FY 2005 to FY 2008 which means that company has better position to pay its debt expenses. A ratio calculated by dividing profits before payment of interest and income taxes by interest paid on bonds and other long-term debt. Than it decreased in FY 2009 but still company is in good position. such as interest and leases. It is calculated as the following: Earning before Interest and Tax Interest + Lease Payment + Principal Payment 2005 22. Company has the liability against leased assets in FY 2005 and FY 2006.23 2009 78.2.2 FIXED CHARGED COVERAGE RATIO: A ratio that indicates a firm's ability to satisfy fixed financing expenses. UNIVERSITY OF EDUCATION OKARA CAMPUS 60 .INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.284.

65% 2009 50. It reached to its lowest of 31. The lower the percentage. In general.36% 2006 60.2. the less leverage a company is using and the stronger its equity position. UNIVERSITY OF EDUCATION OKARA CAMPUS 61 .22% Interpretation: Debt ratio of the company is significantly decreasing from FY 2005 to FY 2008.30% Total Liabilities Total Assets )100 2008 31. That is beneficial for company.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% in FY 2008 but than there was increase in FY 2009. A low percentage means that the company is less dependent on leverage. the higher the ratio. the more risk that company is considered to have taken on.45% 2007 48.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6. But in FY 2009 the liabilities of the company increased but the assets of the company also increased. The decreasing trend of the debt ratio is due to the decrease in total liabilities. The formula for calculating the debt ratio is: ( 2005 63.

00% 0. The graph shows the strategy of the company that company is totally based on equity. ( 2005 0.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.2.4 DEBT EQUITY RATIO: This ratio indicates how much the company is in debt by comparing what is owed to what is owned.00% 2006 0.00% 2007 0. Debt is not taken to run the operations of the company.00% Long Term Debt Share Holder's Equity )100 2008 2009 0.00% Interpretation: The figure shows that company had enough equity to serve over period of time. UNIVERSITY OF EDUCATION OKARA CAMPUS 62 . A high debt to equity ratio could indicate that the company may be over-leveraged. and should look for ways to reduce its debt.

UNIVERSITY OF EDUCATION OKARA CAMPUS 63 .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. The decrease in the ratio is due to the decrease in the intangible assets of the company.93% 2006 152. The formula is: ( 2005 172. The lower the ratio the better is for company.78% 2008 45.71% Interpretation: Debt to tangible net worth ratios shows the decreasing trend from FY 2005 to FY 2008 which is very good for the company.99% 2007 94. The value is computed by dividing total liabilities by total equity minus intangible assets.2. The ratios increased once again FY 2009 due to increase in intangible assets of the company.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.86% Total Liabilities Owner's Equity .

3.86 2008 18.3 SHORT TERM LIQUIDITY: 6.89 2007 15.1 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.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 2007.09 2006 24. The formula of the ratio is: Gross A/R Net Sales / 365 days 2005 13. After this it showed an increasing trend up to FY 2009.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 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 2008.90 2009 26. UNIVERSITY OF EDUCATION OKARA CAMPUS 64 .

e.89 2006 14.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.89 times. Than it decreased to 14. Than decreasing trend was recorded in FY 2008 and FY 2009. This shows that company in not managing its receivable in better ways as compared to the previous years. 27.03 times in FY 2009 in comparison with the previous years.2 ACCOUNTS RECEIVABLE TURNOVER: Measures the number of times accounts receivable are collected during the year.66 times in FY 2006.03 Interpretation: Accounts receivable turnover of the company was maximum in FY 2005 i. Company is collecting receivable only 14. UNIVERSITY OF EDUCATION OKARA CAMPUS 65 .01 times.66 2007 23.3. Once again increase was recorded in FY 2007 of 23.32 2009 14. The formula of the ratio is: Net Sales Gross A/R 2005 27.01 2008 19. This ratio measures the efficiency of credit and collection policies and the quality of outstanding average accounts receivable. This is all due to the decrease in the volume of sales and increase in trade receivable.

It can be calculated by following formula: Ending Inventory Cost of Goods Sold / 365 days 2005 11.57 2008 10. UNIVERSITY OF EDUCATION OKARA CAMPUS 66 . Than it decreased to 5.55 2007 5. The inventory management was best in FY 2007 in which company was taking 5. After this increase is recorded in FY 2007 and FY 2008. the lower (shorter) the day’s sale in inventory is the better.20 Interpretation: Day’s sales in inventory shows and increasing trend of 4 day in FY 2007 as compared to the previous year. while company was taking 10.20 days to convert its inventory into sales in FY 2009.3. Company is taking 14.57 days.92 days in FY 2008.80 2006 15.3 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.92 2009 14. Generally.57 days in FY 2007.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.

In FY 2007 and FY 2008 it increased.36 times.38 2008 45. The cost of sales showed a massive increase because of increased cost of raw material. inventory turnover was 42. The reason behind a low turnover is the increase in cost of sales.3.49 2009 28.4 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. In FY 2009.20 times but then it decreased in FY 2006. The formula is expressed as follow: Cost of Goods Sold Average Inventory 2005 42. UNIVERSITY OF EDUCATION OKARA CAMPUS 67 .20 2007 37.20 2006 29.36 Interpretation: In FY 2005. there was a decrease in inventory turnover and it reached to 28.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.

Net profit is minimum in FY 2009 i.1 NET PROFIT MARGIN: A ratio of profitability calculated as net profits divided by net sales.03% 2009 3.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.53% 2006 7.52% 2007 7.4 PROFITABILITY INDEX: 6.66% as compared to the previous years.66% Interpretation: Net profit of the company shows an increasing trend in up to FY 2006. Than from FY 2007 to FY 2009 it shows the decrease in the net profit. UNIVERSITY OF EDUCATION OKARA CAMPUS 68 . It measures how much out of every dollar of sales a company actually keeps in earnings.e. The formula to calculate the net profit margin is: ( 2005 5.38% Net Income Net Sales )100 2008 5.3.4.

The reason behind this decrease is the decrease in volume of sales. But once again ratio decreased to 1.23 2007 2. The formula for calculating the ratio is: Net Sales Total Assets 2005 2.83 in FY 2009.2 TOTAL ASSETS TURNOVER: A financial ratio that indicates the effectiveness with which a firm's management uses its assets to generate sales.01 2009 1.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.26 in FY 2005.49 and 3.01 respectively.26 2006 2. Then it showed a very good increase in FY 2007 and FY 2008 and reached to 2.83 Interpretation: The ratio has decreased to 2.23 in FY 2006 from 2.4.49 2008 3. UNIVERSITY OF EDUCATION OKARA CAMPUS 69 . A relatively high ratio tends to reflect intensive use of assets.

ROA gives an idea as to how efficient management is at using its assets to generate earnings.70% Interpretation: The ratio has a increasing trend up to FY 2007. The formula for calculating the ratio is: ( 2005 12.17% Net Income Total Assets )100 2008 16. And then it showed the decreasing trend in FY 2008 and FY 2009. UNIVERSITY OF EDUCATION OKARA CAMPUS 70 . This increase is due to the increase in total assets.66% 2006 16. 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.74% 2007 17.3 RETURN ON ASSETS: An indicator of how profitable a company is relative to its total assets.4.53% 2009 6.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.

40% 2006 9.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6. 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. raw materials.93% in FY 2006. UNIVERSITY OF EDUCATION OKARA CAMPUS 71 .73% Operating Income Net Sales )100 2008 7.97% Interpretation: The operating income margin of the company has an increasing trend up to FY 2006.4 OPERATING INCOME MARGIN: A ratio used to measure a company's pricing strategy and operating efficiency. The decrease in last two years is due to the decrease in operating profit of the company. The formula for calculating the ratio is: ( 2005 7.38% 2009 3.93% 2007 9.38% from 9. etc.4. But then it decreased slightly in FY 2007 to 9. The trend remains decreasing in FY 2008 and FY 2009.

UNIVERSITY OF EDUCATION OKARA CAMPUS 72 .63 2006 25.02 2007 20.53 2008 11. The calculation technique for the ratio is: Net Sales Operating Assets 2005 30.5 OPERATING ASSETS TURNOVER: A financial ratio that indicates the effectiveness with which a firm's management uses its operating assets to generate sales. The reason behind the trend is the increase in operating assets.4.53 2009 9.71 Interpretation: The turnover is showing a decreasing trend up to FY 2009.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.

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

Gross profit margin serves as the source for paying additional expenses and future savings.37% 2009 6.4. Than there is a decrease in gross profit in FY 2007 and trend remains same in FY 2008 and FY 2009.80% Gross Profit Net Sales )100 2008 9. While the decrease in FY 2009 is due to the low sales of the company. The decrease in FY 2008 was due to the increase in cost of goods sold.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6. It can be calculated as follow: ( 2005 9. UNIVERSITY OF EDUCATION OKARA CAMPUS 76 .14% Interpretation: The gross shows an increasing trend up to FY 2006.9 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.77% 2007 11.29% 2006 11.

93 2008 29.1 EARNING PER SHARE: The portion of a company's profit allocated to each outstanding share of common stock.89 2006 33. Than suddenly EPS decreased in FY2008 and FY 2009 rapidly.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6. This decrease in EPS shows that company has low earnings in last two years as compared to the previous years.15 2009 17. It is due to the high income earned by the company. UNIVERSITY OF EDUCATION OKARA CAMPUS 77 .70 2007 34. It is calculated as follow: Net Income No.5 INVESTOR’S ANALYSIS: 6.5. Earnings per share serve as an indicator of a company's profitability. of Equity Shares 2005 18.62 Interpretation: EPS of the company has increasing trend from FY 2005 to FY 2007.

5. But the decrease in market price of share is also recorded.86 2009 6.11 Interpretation: The price earning ratios shows an increasing trend from FY 2005 to FY 2009. The decrease in the price earning ratio is due to decrease in EPS. The formula for the ratio is: Market Price Per Share Earning Per Share 2005 4.2 PRICE EARNING RATIO: The price earning ratio is a way to show how a company’s earning relate to a stock price. Than ratio decreased in FY 2008 and 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.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.67 2007 8. This increase is due to the increase in EPS.76 2006 5.75 2008 6. UNIVERSITY OF EDUCATION OKARA CAMPUS 78 .

UNIVERSITY OF EDUCATION OKARA CAMPUS 79 .94% Dividend Per Share Earning Per Share )100 2008 36. In FY 2009 the ratio decrease due to the decrease in EPS of the company in that year.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6. The ratio can be calculated by the following formula: ( 2005 52.61% 2007 37.5. Than it remains stable in FY 2006.22% 2009 56.75% Interpretation: The dividend payout ratio of the company is high in the FY 2005 due to the low EPS. FY 2007 and FY 2008 because of almost same dividend per share of the company in these years.3 DIVIDEND PAYOUT RATIO: The dividend payout ratio measures what a company’s payout to investors in the form of dividend.02% 2006 35.

UNIVERSITY OF EDUCATION OKARA CAMPUS 80 .11% Dividend Per Common Share Market Price Per Share )100 2008 5. In FY 2008 and FY 2009 ratio shows increasing trend.26% 2009 9.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.25% 2006 6.28% 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 2007.28% 2007 4.5. The formula for calculating the ratio is: ( 2005 11. This increase is due to the decrease in the market price of share in those years.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.

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

 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 .

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

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

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812 4.542 485.572 - 26.211 53 88.294 1.174 1.301 346.566 21.677.741 2.376 383 10. wages and other benefits Rent.819 119 107.833 84.034 35.008 4.289 9.547 - UNIVERSITY OF EDUCATION OKARA CAMPUS 87 .272 4.084 75 121.058 27.211 29.841 10.519 260.423 5. transport and 21561543 475.836 29.973 1.604 Raw material consumed Stores and spares consumed Salaries.773 290.675 3.068 4.126 578.846. stationery and office supplies Subscription Fuel and power Running royalty Technical fee Parts development Staff catering.920 29.491 184.653 797 17.221 732.154 19.226 41.024 220.026 607.601.377 3.423.864.968 1.128 3.533 2.800 410.168 4.887 229.843 37.114 98. rate and taxes Repairs and maintenance Depreciation Legal and professional Travelling Transportation Insurance Vehicle running Communication Printing.006 288 125.137 63.732 86.139 523.654.121 278.297 10.033 15.007 1.314 15.410 3.552 2. 2005 2006 2007 (Rupees in '000) 2008 2009 Sales 27.311 310.895 2.555 1.760 64.738 246.063 26.092 20.863 3.109 5.913 19.061.789.030 592 11.236.021 3.974 643.684 3.079 90 88.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure I Indus Motor Company Limited Summarized Income Statement For The Year Ended June 30.626 334 16.968 406 11.910 321.714 2.117 149.203 39.932 6.766 5.535 39.661 215.

637 786.594 509.316.290.848.302 775.830 306.234 Operating Profit 2.665.471 2.106 1.812 3.986 265.93 29.456 647.382.080 Profit before Interest and Tax Finance Costs 2.324.385.911 Profit After Taxation 1.142) 104.957 818.373 34.123.985 352.130) 22.806 2.711 1.072.541.629 404.614 1.520 (64.076) 32.418 2.657 35.957 31.200.249 822.855 (805.046.646 2.959) 31.021.093 4.324.290 3.487 487.544.199.229.225 64.784) 102.653 571.314 106.050 94.722 126.186 469.784 3.304 277.866 2.182.425.311 4.061 3.333 6.520) 28.256 321.894.304 (1.917 242.648.259) Cost of Goods Sold Gross Profit Distribution Expenses Administration Expenses Operating Expenses 24.212 3.757.553 (106.413 11.620.834 1.333) 105.500.995 1.088.356 3.89 33.084.898 (1.013 660.777 1.856 2.479 1.501 21.717 (528.501.746 3.541.484.130 (95.760 2.575.072.845 1.685 3.430 3.15 17.288 37.70 34.483.302.134.147.473 727.706.250.443 3.945 4.063.440.947.503 528.464 2.629.256 374.129 (1.284 784.424.510 1.780 3.193 2.061) 82.597.952 156.632 4.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 17 104.481 1.252.533) 29.178.638 71.607 Other Operating Income 449.142 4.324.726 16.906 4.345.737 95.166 22.540 Profit before Taxation Taxation 2.701 2.533 (71.397.740.306 348.858 805.959 (95.62 UNIVERSITY OF EDUCATION OKARA CAMPUS 88 .178 294.745.876 935.221 Other Operating Expenses 186.373 297.540.313 4.102 Earning Per Share 18.123.862.553 26.462.

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

20% 34.67% 3.19% 19.12% -16.01% 72.40% 3.53% 861.35% -8.85% 4.70% -42.86% -15.54% -39.55% -39.79% Operating Profit Other Operating Expenses Other Operating Income 64.57% -16.25% -82.98% -48.29% 4.20% 127.22% 4.76% 1.18% -16.87% -50.83% -41.72% 8.64% -87.91% 1.41% -16.41% 63.39% 78.26% -15.06% 3.55% UNIVERSITY OF EDUCATION OKARA CAMPUS 92 .85% 74.90% -51.21% -7.65% -16.41% -12.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Operating Expenses 13.21% 4.59% Profit before Taxation Taxation 76.23% -47.59% Profit before Interest and Tax Finance Costs 75.16% Profit After Taxation Earning Per Share 78.13% -16.

01% 219.25% 101.20% 164.65% 64.48% 223.58% 99.III Indus Motor Company Limited Percentage Comparative 2005 Base Income Statement For The Year Ended June 30.80% 104.13% 98.80% 138.90% 144.35% 140.19% 138.22% 121.79% 129.88% 159.88% 153.16% 110.82% 194.07% 164.51% 90.74% 1508.03% 132.89% 99.42% 136.60% 142.69% UNIVERSITY OF EDUCATION OKARA CAMPUS 93 .33% 137.00% 142.63% 67.36% 2009 137.90% 46.08% 137.60% 123.47% 119.30% 56.70% (Rupees in '000) #DIV/0! #DIV/0! #DIV/0! 19494.94% 124852.94% 142.05% 151.63% 61.52% 68. 2006 Sales Raw material consumed Stores and spares consumed Salaries.10% 209.60% 574.83% 89.56% 66.58% 140.58% 139.70% 124.81% 130.09% 173.16% 2008 150.53% 121.34% 214.68% 83.77% 94.15% 131.66% 153.04% 111.52% 154.48% 91.99% 281.31% 97.93% 76.44% 289.12% 98452.85% 65.66% 123.94% 40. transport and uniforms Staff training Others Opening work-in-process Closing work-in-process Cost of goods manufactured Opening stock Purchases Closing stock 127.30% 83.15% 164.00% #DIV/0! 68458. stationery and office supplies Subscription Fuel and power Running royalty Technical fee Parts development Staff catering.06% 178.89% 2007 141.85% 299.86% 248.09% 133.94% 472.08% 353.82% 385.48% 130.29% 150.00% 124.05% 68.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure I.27% 137.09% 171.76% 85.52% 129.73% 127.63% 147.59% Cost of Goods Sold Gross Profit Distribution Expenses 124.29% 165.70% 89.60% 139.73% 106.35% 263.57% 206.63% 320.83% 146.29% 58.41% 133.80% 153.21% 165.36% 60.96% 265.16% 104.67% 0.23% 55.14% 208.72% 67.13% 158.67% 664.35% 52.24% 97.45% 132.72% 40. wages and other benefits Rent.50% 170. rate and taxes Repairs and maintenance Depreciation Legal and professional Travelling Transportation Insurance Vehicle running Communication Printing.70% 134.15% 135.25% 48.76% 133.

01% 172.20% 227.30% 154.31% 208.20% 134.84% 80.41% 163.30% 93.19% 95.91% 154.07% 70.85% 174.07% 137.10% 143.37% 83.46% 28.28% UNIVERSITY OF EDUCATION OKARA CAMPUS 94 .87% 2.08% 141.40% 184.85% 69.86% 88.39% 24.65% 181.39% 178.06% 183.76% Operating Profit Other Operating Expenses Other Operating Income 164.22% 171.77% Profit After Taxation Earning Per Share 178.94% 184.55% 135.74% 186.19% 126.59% 175.87% 143.21% Profit before Taxation Taxation 176.32% 153.77% Profit before Interest and Tax Finance Costs 175.55% 107.31% 93.91% 177.93% 86.79% 152.56% 164.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Administration Expenses Operating Expenses 87.71% 170.08% 161.32% 113.11% 147.

65% 0.01% 0.67% 2. wages and other benefits Rent.65% Cost of Goods Sold Gross Profit 90.01% 0.01% 0.04% 2.03% 0.25% 85. transport and uniforms Staff training Others Opening work-in-process Closing work-in-process Cost of goods manufactured Opening stock Purchases Closing stock 100.24% -0.05% 0.80% 88.00% 0.70% 0.38% 82.00% 0.32% 0.IV Indus Motor Company Limited Comparative Vertical Common Size Income Statement For The Year Ended June 30.02% 0.28% 0.02% 0.00% 78.83% 1.22% 0.19% -0.04% 0.23% 11.71% 2009 100.37% 90.02% 0.63% 0.07% 0.27% 80.02% 0.01% 0.14% 0.72% 0.01% 0.08% 0.00% 0.01% 0.26% 0.04% 0.93% 0.00% 75.16% -0.01% 0.61% 0.03% 0.00% 0.01% 0.59% 0. stationery and office supplies Subscription Fuel and power Running royalty Technical fee Parts development Staff catering.02% 0.97% 9.27% 0.77% 88.01% 0.00% 78.38% 0.30% -0.54% 0.04% 0.86% 6.00% 0.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure I.50% -3.28% 15.05% 0.14% UNIVERSITY OF EDUCATION OKARA CAMPUS .67% 0.59% 1.71% 1.92% -2.63% 0.17% 1.03% 0.20% 9. rate and taxes Repairs and maintenance Depreciation Legal and professional Travelling Transportation Insurance Vehicle running Communication Printing.46% -1.14% 3.67% 0.05% 0.00% 0.00% 0. 2005 Sales Raw material consumed Stores and spares consumed Salaries.24% 0.24% 0.71% 9.00% 71.25% 0.00% 0.29% 95 93.05% 0.00% 0.36% 1.25% 0.00% 0.00% 0.92% 2006 100.82% 0.01% 0.32% 0.67% 1.27% 0.02% 0.40% 0.00% 0.36% 8.00% 0.01% 0.03% -3.94% 0.00% 0.72% 0.00% 0.79% -2.99% 0.23% 0.01% 0.02% 0.00% 0.01% 0.01% 0.76% 2007 (Rupees in '000) 100.01% 0.00% 0.04% 0.01% 0.01% 0.38% -0.29% 1.01% 0.82% 0.03% 0.01% 0.01% 0.24% 0.04% 0.05% 0.63% 11.39% 10.98% 0.05% 0.17% 76.03% 0.04% 0.32% 1.35% 2008 100.12% 1.00% 0.28% 9.00% 71.00% 0.17% 76.

92% 0.68% 1.96% 11.89% 0.92% Profit before Interest and Tax Finance Costs 8.00% 7.98% 1.02% 5.07% Profit before Taxation Taxation 8.06% 8.66% 1.00% 7.31% 0.90% 3.80% 8.72% 1.55% 1.66% 2289.18% 0.93% 2.34% 11.15% 0.63% 9.00% 5.56% 0.52% 1989.01% 2.69% 1.56% 4.07% 1.02% 2.38% 1889.17% Operating Profit Other Operating Expenses Other Operating Income 7.04% 10.39% 7.03% 2089.93% 0.06% 1.38% 0.97% 0.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Distribution Expenses Administration Expenses Operating Expenses 1.01% 5.73% 0.55% 3.68% 0.00% 3.47% 0.53% 2189.00% UNIVERSITY OF EDUCATION OKARA CAMPUS 96 .07% 1.89% 1.68% 7.40% 1.90% 9.91% 9.41% 3.89% 8.49% 2.75% Profit After Taxation Earning Per Share 5.34% 2.36% 10.83% 3.74% 6.40% 0.84% 1.24% 0.

.

856 2.902 9.179 95.360 54.459 16.482 436.876 50.117 498.951 665.149 64.463 95.217 426.134 76.483 1.959 277.191 1.259 226.211 1.959.543.168.180 48.088.999 7.846 (128.171 894.533 4.052 851 (43.166 82.400 185.281 5.634 605.027 1.520 744.191 3.233 601.755 345 876.487 2.888 4.148 35.416.719.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure II Indus Motor Company Limited Summarized Balance Sheet As on June 30.858 1.543 302.731.523 132.332.710 232.944 67.676 106.076 613.165 47.130 214.533 59.328.511 29.268 165.372 23.936 2.988 3.823 356.142 917.647 3.263 209.162 283.855 384.637.725 737.479 153.811 227.627.921 71.028 1.108.315 6.832 - 128.250.012 74.169 1.082 4.384.065 279.371 46.549 222 1.158.631 - 302.338 9.585 UNIVERSITY OF EDUCATION OKARA CAMPUS 98 .380.171 414.736.267. 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 137.859.316 738.469 413.629 1.378 912.752) 1.520 8.308) 532.

529 673 14.514.685.925 - 2.850 UNIVERSITY OF EDUCATION OKARA CAMPUS 99 .592.793.620.194.560.095.177.599.779.926.972 105 - 3.657 13.153 6.524 3.019 5.664.784 16.341 7.714 - 2.473 TOTAL ASSETS 12.062 9.977 29.372 3.940 14.517 15.716.017 4.696 2.911 6.852 3.715.222 35.926 3.664.181 4.902.050 13.590 1.523 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 .892.545 998.988 5.554 985.869 42.887 1.021 10.934.240 6.329 9.660 7.444.690 1.222 49.net TOTAL CURRENT LIABILITIES 2005 2006 2007 (Rupees in '000) 2008 2009 2.748.884.093.603.307 10.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT TOTAL CURRENT ASSETS 11.631 9.033.109 20.227 5.153 17.035 87.221 4.900.762 3.972 3.795 4.665.912 187.869 22.629 10.554 7.731 Fixed Assets Property.022.568 2. plant and equipment Capital work-in-progress Intangible Assets TOTAL FIXED ASSETS 901.480 715 3.509 7.123 1.942.568 27.149 12.563 28.314 302.468 15.822.271 438.410.735 195.408.319 Non-Current Assets Long-term loans Long-term deposits Finance under musharika arrangements TOTAL NON-CURRENT ASSETS 388 5.250 5.342 10.789 2.

340 786.650 116.871 - 42.000 3.468 15.149 210.257.311.685.035 210.805 4.805 786.700 503.693 54.718.621.194.650.000 9.000 8.973 TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY 12.510.769 10.164 120.109 20.138 503.550 786.296.043.973 10.957 3.975 8.879 786.257.712 9.517 15.340 9.050 13.000 5.388.149 532.564.975 786.138 532.471.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Non-current Liabilities Liabilities against assets subject to finance lease Deferred taxation TOTAL NON-CURRENT LIABILITIES 11.523 UNIVERSITY OF EDUCATION OKARA CAMPUS 100 .748.689.879 6.665.000 7.475.436.589 7.822.075 4.700 TOTAL LIABILITIES Shareholder's Equity Paid up capital Reserves TOTAL EQUITY 7.

226 1.868) 20.951 (190.461 353.995 (85.258 23.229 403.083 (535.314) (30.710) 311.322) 667.365) 54.315) 696.545) (103.426 218.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure II.022 (519.787 (10.I Indus Motor Company Limited Comparative Chain Base Balance Sheet As on June 30.307) (129.272) 15.365) (72.665 93.087 (6.050.141 246.450 4.046 (82.308) (626.214.444) 734.242) 77.458) (54.533) 5.659) 466.678) (3.492) 48.013 (4.448) 111.987 (23.080) (222.435 1.101) 11.503 629 (43. 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) 89.423 (644.272 1.745 (1.610) 529.328) 4.634) (2.770 (23.581 7.117 335.622) (531.917.668 948.071 317.181 2.211) 11.228) 7.171) (209.535 UNIVERSITY OF EDUCATION OKARA CAMPUS 101 .127.799 157.520 1.171 161.827 38.884 (102.203 790.207 (24.099.895.717 1.763 29.932 (6.987) (685.185 (3.156) 246.389 56.451.522 (1.375) (97.033 35.402.

871) 93.628) (3.528.262 1.527 11. plant and equipment Capital work-in-progress Intangible Assets TOTAL FIXED ASSETS 507.939.422) 717.021) 648 38.106 (2.916.105.289) TOTAL ASSETS 3.689.389) (21.937.789) - 14.508) (610) (3.985 321.448 (4.471 (3.682 (22.832) (13.684 1.177 (99.910 308.172) 1.703 494.940.101 593 38.714) 1.190) 292.789 (195.021) (98.106.279 214.989 (28.660 TOTAL CURRENT LIABILITIES Non-current Liabilities Liabilities against assets subject to finance lease Deferred taxation 1.846 (4.463) (3.780.631.086) 73.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) 6.414 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 .359 251.555) 377.694 (13.706 (409.557 568 - 195.418) (1.132) (7.017.324 (773) 1.535) (2.492 (2.598 (114.832) Fixed Assets Property.033.221 1.net 2006 2007 2008 2009 (Rupees in '000) 577.219 (8.627.149.469) 3.438) UNIVERSITY OF EDUCATION OKARA CAMPUS 102 .951 (157.781) (2.434 4.941) 6.

309.916.365 1.845.633 TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY 3.951 (157.096 1.392.365 860.096 1.941) 6.782.781 1.786.782.943.633 860.414 UNIVERSITY OF EDUCATION OKARA CAMPUS 103 .627.514) (3.786.076.418) (1.877 (1.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT TOTAL NON-CURRENT LIABILITIES 65.114 321.392.385 90.937.306) 6.989 (28.074 1.074 1.438) TOTAL LIABILITIES Shareholder's Equity Paid up capital Reserves TOTAL EQUITY 1.

94% 92.00% -32.80% 108.05% 17.00% 124.84% -36.33% #DIV/0! -54.85% 420.97% 63.85% -49.17% 11.03% -51.74% 313.77% 100.67% 0.30% #DIV/0! 21.87% -10.95% #DIV/0! 356.32% 7.80% 32.44% -92.79% 55.44% -83.22% 316.81% 72.01% -80.68% -100.45% -31.10% -5.72% #DIV/0! 331.09% 27.60% -87.74% #DIV/0! -100.51% 368.89% #DIV/0! 27.II Indus Motor Company Limited Percentage Comparative Chain Base Balance Sheet As on June 30.39% 283.00% 247.13% 8.91% -42.30% -27.34% 898.29% -73.04% -51.33% -28.65% 50.08% 35.50% -8.10% 45.59% -93.00% #DIV/0! -27.91% Fixed Assets Property.62% -66.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure II.00% 10.05% -31.16% 2.95% Non-Current Assets Long-term loans Long-term deposits Finance under musharika arrangements TOTAL NON-CURRENT ASSETS 162.80% 2.29% 137.00% 6.10% 0.20% -3.63% 0.02% -7.78% 134.43% 197.91% -32.42% #DIV/0! 4. plant and equipment Capital work-in-progress 56.23% -100.29% 74.05% -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) 65.16% -17.02% 30.12% -37.42% 12.60% 112.09% 50.75% 234.13% 121.33% 299.00% -100.77% -9.95% -100.14% 36.30% 246.18% -17.99% 88.36% 26.27% UNIVERSITY OF EDUCATION OKARA CAMPUS 104 .73% -44.61% 8.01% 24.00% 73.01% 27.55% #DIV/0! #DIV/0! 15.

54% 0.23% 11.16% 110.95% #DIV/0! #DIV/0! #DIV/0! 161.32% #DIV/0! 153.54% #DIV/0! -79.95% 9.24% 50.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) 28.00% 48.31% 0.07% -20.93% 71.64% 28.63% 172.85% -41.75% -0.98% -21.08% 540.99% -12.46% UNIVERSITY OF EDUCATION OKARA CAMPUS 105 .34% 140.24% -100.79% #DIV/0! -35.16% -85.11% -2.12% TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY 29.09% 119.00% 19.91% 75.75% -0.31% #DIV/0! -100.18% 17.00% 80.66% 92.73% 21.82% 0.42% #DIV/0! -5.24% 50.46% TOTAL ASSETS 29.46% #DIV/0! 23.15% 501.00% -21.34% -5.81% -96.24% -31.46% 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 .22% -43.00% 32.53% -3.65% 42.99% -12.00% 9.91% -100.22% 153.64% 23.00% 41.00% #DIV/0! -49.93% 0.53% -67.30% 39.57% 18.40% -78.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Intangible Assets TOTAL FIXED ASSETS -41.

28% 231.76% 100.80% 80.36% 126.63% 100.47% #DIV/0! 0.68% 107.35% #DIV/0! 132.03% 451.63% 128.01% 124.68% 140.19% 214.81% 149.71% 181.25% 173.12% 12.58% 285.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure II.94% 192.26% 137.44% 0.23% 24.09% 57.94% 127.80% 129.48% 67.00% 347.26% 0.94% 33.80% 208.67% #DIV/0! 60.00% 61.78% 10912.46% 93.15% 90.18% 7347.55% 64.31% 386.74% 140.45% 529.41% 86.48% 129.08% 211.62% 33.68% 502. 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) 165.86% 114.70% 1087.00% 243.33% 399.05% 117.26% 60.82% UNIVERSITY OF EDUCATION OKARA CAMPUS 106 .97% 200.00% 280.III Indus Motor Company Limited Percentage Comparative 2005 Base Balance Sheet As on June 30.61% #DIV/0! 254.68% 64.87% 90.63% 0.00% 201.68% 140.24% 346.81% 27.58% 75.49% 246.42% #DIV/0! 104.23% 284.00% 110.78% 1092.61% 398.93% #DIV/0! 144.26% 0.85% 824.76% 83.46% 22.10% 94. plant and equipment Capital work-in-progress 156.41% 66.46% #DIV/0! 58.25% 89.00% 144.31% 169.10% 165.86% 136.30% 346.58% 64.65% 0.00% 295.13% 121.48% 432.09% 109.01% 19.54% Non-Current Assets Long-term loans Long-term deposits Finance under musharika arrangements TOTAL NON-CURRENT ASSETS 262.93% 120.98% Fixed Assets Property.97% 163.74% #DIV/0! 0.74% 413.

70% 179.84% 209.63% 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 .57% 118.00% 234.01% 80.83% 100.77% #DIV/0! 13.72% 55.46% 112.14% 17.99% #DIV/0! 0.98% 32.82% 100.00% 1246.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) 128.86% 0.54% #DIV/0! 20.32% 194.30% #DIV/0! 96.82% 921.00% 1179.00% #DIV/0! 128.00% 196.76% 230.60% 0.62% 26.46% 112.74% 0.68% 134.00% 148.43% 973.57% 6.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Intangible Assets TOTAL FIXED ASSETS 58.23% 143.00% #DIV/0! 49.64% 123.09% 219.37% #DIV/0! 0.98% 105.59% 100.44% 210.54% #DIV/0! 123.37% 272.07% 171.85% 33.54% 98.30% 139.74% 169.91% 0.51% 403.16% 210.72% 100.00% 257.77% 6.63% UNIVERSITY OF EDUCATION OKARA CAMPUS 107 .89% TOTAL ASSETS 129.75% 128.06% TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY 129.67% 393.75% 128.00% 492.23% 384.70% 138.83% 37.74% 169.

32% 0.72% 0.19% 25.62% 6.81% Non-Current Assets Long-term loans Long-term deposits Finance under musharika arrangements TOTAL NON-CURRENT ASSETS 0.00% 5.00% 0.03% 0.48% 0.17% 0.76% 3.52% 31.58% 1.11% 91.71% 2.00% 0.61% 1.62% 0.81% 1.00% 47.00% 0.02% 4.25% 0.30% 0.01% 0.96% 2.18% 0.06% 0.90% 0.41% 0.69% 0.87% 89.00% 0.13% 19.07% 0.36% 0.00% 7.72% 0.04% 0.03% 0.52% 2.10% 0.03% 0.88% 19.41% 1.33% 0.37% 2.60% 4.00% 5.66% 1.54% 0.00% 0.00% 0.26% 4.29% 0.45% 7.00% 0.87% 1.02% 4.48% 0.09% 1.03% 0.25% 0.IV Indus Motor Company Limited Comparative Vertical Common size Balance Sheet As on June 30.77% 8.67% 0.38% 2.01% 0.69% 6.12% 11.05% 0.39% 1.04% 0.19% 9.32% 3.17% Fixed Assets UNIVERSITY OF EDUCATION OKARA CAMPUS 108 .31% 54.77% 25.01% -0.15% 0.68% 0. 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 1.08% 0.04% 0.32% 0.14% 0.38% 1.46% 2.25% 0.36% 0.04% 2.24% 2.26% 0.54% 86.04% 0.43% 10.31% 0.56% 1.07% 0.40% 18.87% 0.68% 55.02% 2.00% 46.00% 0.40% 0.00% 0.01% -0.04% 80.15% 0.48% 7.06% 0.30% 0.48% 70.00% 4.62% 6.85% 3.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure II.69% 0.03% 0.00% 7.99% 3.00% 0.

76% 60.34% 48.00% 27.09% 0.00% 62.00% 100.55% 5.73% 0.02% 19.85% 16.86% 0.07% 47.14% 0.58% 45.00% 100.02% 0.00% 100.00% 0.45% 0.00% 1.34% 1.80% 45.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Property.78% TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY 100.00% 0.46% 28.30% 0.02% 13.49% 19.19% 8.17% 0.00% 0.09% 8.85% 12.00% 47.44% 50.06% 28.00% 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 .33% 51.00% 100.02% 0.31% 20.35% 0.64% 3.95% 0.00% 0.44% 2.02% 29.04% 1.34% 18.00% 0.00% 0.00% 100.02% 46.90% 1.10% 0.19% 0.00% UNIVERSITY OF EDUCATION OKARA CAMPUS 109 .37% 26.13% 3.97% 34.58% 39.79% 0.22% 6.23% 0.98% 49.43% 41.26% 36.32% 7.70% 4.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 16.24% 59.91% 0.00% 100.65% 0.15% 1.04% 10.00% 0.02% TOTAL ASSETS 100.00% 0.36% 0.87% 3.82% 0.39% 0.65% 0.20% 0.72% 62.00% 3.35% 5.92% 68.45% 30.45% 63.84% 0.72% 0.00% 0.69% 18. plant and equipment Capital work-in-progress Intangible Assets TOTAL FIXED ASSETS 7.00% 100.14% 0.00% 0.00% 100.87% 31.00% 2.

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319 -9.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure III 2005 2006 2007 2008 2009 1.149.536.382.823.779.12 : 1 Cash from Operations Current Liabilities 2.69 : 1 3.86 : 1 12.926 0.554 4.416.513.554 0.543.077) 3.095.784 3. Net Working Capital 11.779.410.850 6.49 : 1 13.779.756 3.554 1.731.341 9.07 : 1 10.444.79 : 1 8.631 (0.878 Current Assets .554 1.062 1.329 7.940 -7.884.410.664.410.847 9.44 : 1 7.884.Current Liabilities 14.727 7.885.062 0.410.469 2.715.926 1.926 1.062 3.009.945 7.062 0.631 1.15 : 1 4.56 : 1 16.166 9.926 6.631 5. Current Ratio Current Assets Current Liabilities 11.560. Acid Test Ratio Current Assets .626.095.136.66 : 1 UNIVERSITY OF EDUCATION OKARA CAMPUS 111 .664.28 : 1 2. Cash Ratio Marketable Securities + Cash Current Liabilities 6.403 9.664. Cash Flow from Operations Ratio 884.850 1.410.062 1.850 1.664.554 0.884.715.664.631 2.461 9.444.884.926 1.664.38 : 1 (811.779.779.651.98 : 1 5.657 9.700.155 3.319 9.180 9.631 1.329 -7.675.999 7.085 7.444.657 -9.027.28 : 1 4.884.444.05 : 1 10.378 7.719.177.664.529 9.103 13.Inventory Current Liabilities 8.940 7.784 -3.850 0.560.46 : 1 14.83 : 1 9.830.263 7.16 : 1 9.444.850 0.21) : 1 6.153 16.177.88 : 1 7.

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050 22.00% Long Term Debt Share Holder's Equity 6.769 13.718.553 26.685 187.397.072.465.311.748.756 152.553 26.65% )100 4.86% Total Liabilities Owner's Equity .975 0.973 0.00% 8.043.260 172. Debt Ratio ( 7.540 78.879 0.48 Earning before Interest and Tax Interest Expense 4.388.589 6.540 78.00% 5.550 10.166 22.257.311.10 4.433.78% 4.545 45.822.050 106.816 32.072.523 50.109 31.Intangible Assets 9.194.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure IV 2005 2006 2007 2008 2009 1.564.397.760 1.00% 10. Time Interest Earned Ratio 2.093 25.436.589 15.44 3.722 130.769 9.760 1.475.471 2.71% )100 10.388.685.621. Debt to Tangible Net worth ( 7.36% 10.44 3.712 4.09 2.718.166 22.60 4.075 15.284.45% 7.468 60.001 100.252.251.22% 4.293.544.050 48.284.09 3. Debt Equity Ratio ( 4.075 8.471 2.712 12.407 94.665. Fixed Charged Coverage Ratio Earning before Interest and Tax Interest + Lease Payment + Principal Payment 2.550 20.08 4.722 126.199.340 0.199.23 2.99% 7.945 33.517 63.296.544.685 187.564.040.621.805 0.30% Total Liabilities Total Assets 9.93% UNIVERSITY OF EDUCATION OKARA CAMPUS 113 .23 2.252.00% )100 9.050 94.

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851 5.017.27 13.738. Accounts Receivable Turnover 27.402.601.90 2.38 37.142 85.50 37.50 45.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure V 2005 2006 2007 2008 2009 1.034 989.237.50 29.906 1.205 11.836 96. Day's Sales in Inventory 805. Day's Sales in A/R 989.064.697.236.061.80 Ending Inventory Cost of Goods Sold / 365 days 1.382.564 19.92 1.698.570 75.538.604 2.058.021.98 18.418 1.259 97.02 2.843 2.933.50 42.20 34.836 14.144. Inventory Turnover 24.49 35.061 68.992 103.356 826.226 1.620.50 28.64 26.324.55 528.371 14.698.575.088.564 113.535 2.540.423.20 Cost of Goods Sold Average Inventory 31.946 10.537 107.01 41.03 3.894.123.86 2.601.697.992 14.632 926.864.89 1.45 24.09 Gross A/R Net Sales / 365 days 2.20 4.402.537 23.32 37.89 Net Sales Gross A/R 35.144.619.253.570 27.784 102.57 1.333 94.175 15.66 39.36 UNIVERSITY OF EDUCATION OKARA CAMPUS 115 .856 589.489.06 15.

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843 3.864.306 39.71 UNIVERSITY OF EDUCATION OKARA CAMPUS 117 .902.256 35. Operating Assets Turnover 27.701 15.385.468 2.03% 2.423.845 41. Net Profit Margin 1.843 13.604 3.535 9.74% Net Income Total Assets 2.050 17.061.01 37.53% 2.290.26 35.604 3.423.271 11.034 901.02 Net Sales Operating Assets 39.517 12.226 7.822.464 35.102 37.53 41.604 3.601.53% )100 1.134.035 30.226 15.592.97% 5.52% Net Income Net Sales 2.226 9.109 3.535 7.385.517 2.646 27.900.843 7.604 20.685. Total Asset Turnover 27.109 16.423.648.748.601.648.952 37.38% 3.484.221 27.535 15.701 39.194.864.66% 2.822.408.500.102 20.845 13. Operating Income Margin 2.977 9.665.843 5.53 37.194.83 3.685.830 41.290.93% Operating Income Net Sales 3. Return on Assets 1.063.034 7.864.748.464 15.66% )100 1.523 6.70% 4.23 Net Sales Total Assets 39.63 35.034 5.236.236.601.314 25.061.468 16.501.40% )100 1.523 1.484.49 41.050 2.646 12.535 1.745.864.38% ( 2.423.226 1.034 12.745.73% ( 3.665.236.601.061.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure VI 2005 2006 2007 2008 2009 1.17% ( 2.061.912 20.665.236.

061.464 6.102 3.601.843 4. Sales to Fixed Assets 27.845 3.594 39.601.535 11. Gross Profit Margin 2.236.102 10.236.06% Net Income Operating Assets 2.290.701 8.745.340 24.093.13% 2.45% 9.484.63 35.487 41.226 11.604 3.473 9.592.879 42.14% UNIVERSITY OF EDUCATION OKARA CAMPUS 118 .034 998.843 9.257.147.62 8.535 1.648.226 2. Return on Equity 1.314 188.648.436.77% )100 1.701 1.716.033.423.604 6.296.475.80% ( 4.77% ( 2.484.408.035 164.290.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT 6.934.66 41.902.440.975 34.464 1.887 27.324.852 18.706.423.912 144.17% ( 2.385. Return on Operating Assets 1.53 Net Sales Fixed Assets 39.629 35.51% 7.845 9.271 63.646 4.186 37.745.27 37.385.973 13.805 33.762 10.32% Net Income Total Equity 2.864.864.848.061.034 9.043.28% )100 1.977 35.900.77% Gross Profit Net Sales 4.29% 2.37% 3.590 20.646 901.29% )100 2.178 27.

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00 11. Dividend Payout Ratio 10.648.745.70 Net Income No.70 5.00 33.76 Market Price Per Share Earning Per Share 191.94% ( 12.11% Dividend Per Common Share Market Price Per Share 12.646 78.93 2.05 5.00 6.89 4.600 17.600 29.86 107.00 107.89 2.464 78.93 8.62 56.28% UNIVERSITY OF EDUCATION OKARA CAMPUS 120 .02% )100 10.61% Dividend Per Share Earning Per Share 13.75% 4.72 17.600 34.50 200.89 52.00 33.102 78.00 34.50 4.93 37.INDUS MOTOR COMPANY LIMITED PROFESSIONAL PROJECT Annexure VII 2005 2006 2007 2008 2009 1.15 6.701 78.600 18.00 18.00 305.50 29. Earning Per Share 1.15 1.72 9.22% 10.600 33.845 78.385.00 90.70 35.290.62 6. Price Earning Ratio 90. Dividend Yield Ratio ( 10. of Equity Shares 2.75 200.11 3.15 36.00 18.00 17.05 29.50 34.00 191.484.26% 10.67 305.25% )100 10.28% 13.62 2.

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