FEDERAL URDU UNIVERSITY OF ARTS, SCIENCE AND TECHNOLOGY, ISLAMABAD

DEPARTMENT OF BUSINESS ADMINISTRATION

FINAL PROJECT BBA-3
 SEMESTER Autumn-2020
Subject: Introduction of business finance
Question

Prepare a report of ratio analysis of any non-financial company .

Group member
 Qasim Jahangir Waraich (Mis I’d 26189)
 Muhammad Asim (Mis I’d 25835)
 Abdul Haseeb (Mis I’d 26450)

Acknowledgement :-
In the name of “Allah”, the most beneficent and merciful who gave us strength and
knowledge to complete this report. This report is a part of our course “Financial Statement
Analysis”. This has proved to be a great experience. I would like to express our gratitude to our
Finance teacher Miss Mehwish Aziz Khan who gave us this opportunity to fulfil this report.
Company :-
DG Khan Cement Company Ltd.
Data

Overview of income statement

Overview of Income statement 2019 2018 2017 2016 2015

Sales 12,445,996 6,419,625 7,955,665 5,279,560 3,882,756

Cost of sales -10,530,723 -4,387,640 -3,992,822 -3,330,769 -2,497,262

Gross profit 1,915,273 2,031,985 3,962,843 1,948,791 1,385,494

Administrative expenses -111,658 -104,169 -121,953 -76,480 -68,645

Selling and distribution expenses -561,465 -65,122 -34,352 -60,905 -38,560

 Other operating expenses -581,913 (139,721 -191,850 -93,786 -61,735

Other operating income 847,344 479,420 294,114 707,692 128,462

Profit from operations 1,507,581 2,202,393 3,908,802 2,425,312 1,345,016

Finance cost -1,749,837 -467,759 -450,696 -304,041 -224,601

Share of loss of associated companies -8,674 -14,163 -9,573

Profit\ Loss before tax -250,930 1,720,471 3,448,533 2,121,271 1,120,415

Taxation 197,700 -98,000 -1,030,078 -439,193 -325,922

Profit\ Loss for the year -53,230 1,622,471 2,418,455 1,682,078 794,493

Basic earnings per share Rupees -0.21 6.43 10.37 9.12 4.31

Diluted earnings per share 6.43 9.14 7.82 3.78

Overview of Balance sheet

Overview of Balance sheet 2008 2007 2006 2005 2004

Capital and Reserve

30528440 33923185 19268200 9317998 6317055

Non-current Liabilities 10250352 10430917 9020740 5642649 3020575

Current Liabilities 12899306 7390229 6015436 3055858 2376989

Assets

Non-current Assets 33835927 32529377 24394481 13819736 8833476

Current Assets 19842171 19214954 9909895 4196769 2881143

Summarized Balance Sheet

Summarized Balance Sheet 2019 2018 2017 2016 2015

Equity and Liabilities

Capital and Reserves

Authorized Capital 2500000

-950000000@ ordinary share10 9500000 9500000 2500000 2500000 50000
-50000000@ preference share10 500000 500000 500000 500000 300000

10000000 10000000 3000000 3000000 1676306

Issued subscribed and paid up 2535412 2535412 1843937 1843937

capital -

Share deposit money - - 8351 -

Reserves 27634722 29630084 15085354 7196568 4389088

Un-appropriated profit 32399 1757689 2330558 277493 251661

Total capital and Reserve 30528440 33923185 19268200 9317998 6317055

Non Current Liabilities

Long term finance 8871051 8686447 7372468 4899225 2730573

Liabilities against subject to finance 393 1141 28886 131985 83487

lease

Long term deposits

73890 79467 33814 28674 30365
Retirement and other benefits
54018 39862 26572 45765 38150
Deferred Taxation
1251000 1624000 1559000 537000 138000
Total Non-Current liabilities
10250352 10430917 9020740 5642649 3020575
Current Liabilities

Trade and other payables

1450074 1027274 1406869 1154426 493968
Accrued markup
391610 342612 340757 960620 1360677
Short term borrowing
8194330 3942972 2613695 - -
Current portion of non-current
2828202 2042281 1619025 599674 487254
liabilities

Derivative foreign currency forward

options - - - 306048 -
Provision for taxation

Total Current liabilities 35090 35090 35090 35090 35090

Total Liabilities 12899306 7390229 6015436 3055858 2376989
Assets 53678098 51744331 34304376 18016505 11714619
Non-Current Assets

Property plant and equipment

Assets subject to finance lease 24224273 22117551 7521723 6637237 6128083

Capital work in progress 6839 133376 295058 317262 166583

Investments 2488307 1907063 11759677 3983175 1126108

Long term loans, advances and 6592332 8174474 4482213 2610634 1387681
deposits
524176 196913 335810 271428 25021
Total Non-Current Assets

Current Assets
33835927 32529377 24394481 13819736 8833476
Stores spares and loose tools

Stock in trade
2323883 1496291 836049 1035081 938847
Trade debts
1300325 295140 226286 100994 298538
Investments
463446 144245 74165 76238 52622
Advances, deposits, prepayments
15082605 16933790 8543763 2769134 1386816
and other Receivables
427832 229315 152465 121486 120329
Cash and bank balance

Total Current Assets

244080 116173 77167 93836 83991
Total
19842171 19214954 9909895 4196769 2881143

53678098 51744331 34304376 18016505 11714619

Solution:-

Liquidity Ratios

1. Working Capital = Current Assets – Current Liabilities (Amount in Rupees’000)

2019 19842171-12899306 =6942865

2018 19214954-7390229 =11824725

2017 9909895-6015436 =3894459

2016 4196769-3055858 =1140911

2015 2881143-2376989 =504154

2. Current Ratio= Current Assets/Current Liabilities

Year Calculation in (Rupees’000) Current Ratio

 2019 19842171/12899306 1.54:1
2018 19214954/7390229 2.60:1
2017 9909895/6015436 1.65:1
2016 4196769/3055858 1.37:1

2015 2881143/2376989 1.21:1

3. Quick Ratio= (Cash Equivalent + Marketable Securities+ Net Receivables)/Current Liabilities

Year Calculation in (Rupees’000) Quick Ratio

2019 (244080+15082605+463446)/12899306 1.22:1

2018 (116173+16933790+144245)/7390229 2.33:1
2017 (7235749+502387+969891)/8429327 1.44:1
2016 (6931615+67244)/6344831 0.96:1

2015 (5078613+5503)/4524698 0.64:1

4. Debt Ratio =Total debt/Total Assets

Year Calculation in (Rupees’000 ) Fixed Charge coverage

2019 23149658/53678098 43%

2018 17821146/51744331 34%
2017 15036176/34304376 44%
2016 8698507/9317998 93%

2015 5397564/6317055 85%

5. Debt Equity Ratio=Total debt/total Equity

Year Calculation in (Rupees’000) Debt Equity Ratio

2019 23149658/30528440 76%

2018 17821146/33923185 53
2017 15036176/19268200 78
2016 8698507/9317998 93

2015 5397564/6317055 85
 6. Operating profit Margin = EBIT/Sales

Operating profit
Year Calculation in (Rupees’ 000)
Margin

2019 1513505/12464347 12%

2018 2202393/6419625 34
2017 3908802/7955665 49
2016 2425312/5279560 46

2015 1345016/3882756 35

7. Profit Margin= Net Income /Sales

Year Calculation in (Rupees’ 000) Profit Margin

2019 97753/12464347 7.84%

2018 1636634/6419625 25
2017 2428028/7955665 31
2016 1682078/5279560 31

2015 794493/3882756 20

8. Return on Assets =Net profit /Average total Assets

Year Calculation in (Rupees’ 000) Return on Assets

2019 97753/52711214.50 18.5%

2018 1636634/43024353.50 3.8
2017 2428028/10723490.50 23
2016 1682078/14865562 11

2015 794493/11714619 6.8

9. Return on equity =Net profit /Average equity

Year Calculation in (Rupees’ 000) Return on total equity

2008 97753/(30528440+33923185)/2 0.30%

2007 1636634/(33923185+19268200)/2 0.37
2006 2428028/(19268200+9317998)/2 0.17
2005 1682078/(9317998+6317055)/2 0.22

2004 794493/6317055 0.13