FINANCIAL MANAGEMENT

PROJECT

Name: Syeda Ayesha Hassan

Reg No: BAF193012
Section: 01
Submitted to: Sir Aksar
Date: June 30,2022

Department of Management Sciences

Capital University of Science and Technology, Islamabad.
Contents
ARCHROMA LIMITED..........................................................................................................................3
INTRODUCTION.................................................................................................................................4
FINANCIAL RATIOS OF ARCHROMA...............................................................................................4
ASHFAQ TEXTILE MILLS....................................................................................................................6
INTRODUCTION.................................................................................................................................7
RISK AND RETURN................................................................................................................................7
RISK.......................................................................................................................................................7
RETURN................................................................................................................................................8
CALCULATION OF RISK AND RETURN FOR YEAR 2020.........................................................8
CALCULATION OF RISK AND RETURN FOR YEAR 2021.........................................................8
AYESHA TEXTILE MILLS LIMITED..................................................................................................9
INTRODUCTION...............................................................................................................................10
RISK AND RETURN..............................................................................................................................10
RISK.....................................................................................................................................................10
RETURN..............................................................................................................................................10
CALCULATION OF RISK AND RETURN FOR YEAR 2020.......................................................10
CALCULATION OF RISK AND RETURN FOR YEAR 2021.......................................................11
1. ARCHROMA LIMITED
INTRODUCTION
Archroma is a global, diversified provider of specialty chemicals serving the branded and
performance textiles, packaging and paper, and coatings, adhesives and sealants markets.
Headquartered in Pratteln, Switzerland, the company operates a highly integrated, customer-
focused platform that delivers specialized performance and color solutions in over 100 countries.
Archroma works with 2,800 employees in 31 countries and with 25 production sites.
Archroma Pakistan Limited (ARPL) has decided to manufacture and sell Hand Sanitizers in
Pakistan under the Swiss brand name of Kieralon to support the fight against the spread of the
on-going COVID-19 pandemic, revealed a notification to Exchange.
ARPL, a specialty chemicals company headquartered in Switzerland with a 134 years’ heritage,
believes that there is a dire shortage of WHO standard quality hand sanitizers in Pakistan, and
therefore the company has decided to manufacture and sell its products for the health and
protection of the citizens of Pakistan.

FINANCIAL RATIOS OF ARCHROMA

Financial ratios are created with the use of numerical values taken from financial statements to
gain meaningful information about a company. The numbers found on a company’s financial
statements – balance sheet, income statement, and cash flow statement – are used to
perform quantitative analysis and assess a company’s liquidity, leverage, growth, margins,
profitability, rates of return, valuation, and more.

Financial ratios are grouped into the following categories:

 P/E Ratio
 Gross margin
 Net Profit margin
 Return on Equity
 Return on Assets
 Return on Investment
 Quick Ratio
 Current Ratio
 Total Debt to Equity
 LT Debt to Equity
 Asset Turnover
 Inventory Turnover
 Receivable Turnover
The five year ratios of Archroma are as follow:
2. ASHFAQ TEXTILE MILLS
INTRODUCTION
Ashfaq Textile Limited was incorporated in Pakistan on January 14,1988 as a private limited
company under the repealed Companies Ordinance, 1984 (repealed with the enactment of
Companies Act, 2017) and subsequently converted into a public limited company. The business
of the Company is manufacturing and sale of textiles and rendering of sizing and conversion
services. It offers a variety of constructions in different widths and weaves. Its strong production
line consists of 250 Sulzer shuttle less looms including 60 Dobby machines and a complete back
process of warping and sizing. A qualified and dedicated team of professionals, technicians and
workers is its forte to be able to provide a consistent quality in compliance to the requirement of
its customers.

 Website
http://www.ashfaqtextile.com 

 Industries
Textile Manufacturing

 Company size
501-1000 employees

 Type
Public Company

 Founded
1988

 Specialties
Woven Fabrics in greige loom state, Dyed Woven Fabrics, bleached woven Fabrics, and
Printed Woven fabrics.

RISK AND RETURN

RISK
Risk is any uncertainty with respect to your investments that has the potential to negatively affect
your financial welfare. For example, your investment value might rise or fall because of market
conditions (market risk).
RETURN
A return is the change in price of an asset, investment, or project over time, which may be
represented in terms of price change or percentage change. A positive return represents a profit
while a negative return marks a loss.

CALCULATION OF RISK AND RETURN FOR YEAR 2020

The return on the shares in ashfaq textile mills = D1

CALCULATION OF RISK AND RETURN FOR YEAR 2021

3. AYESHA TEXTILE MILLS LIMITED
INTRODUCTION
Ayesha Group of Companies is a well-known industrial group that operates from Lahore,
Pakistan.   The Group started its textile operations in 1972 when Ayesha Spinning Mills was
incorporated. Since then, Ayesha Group has grown to 4 textile spinning mills comprising of
110,000 spindles, a leather tannery, a leather shoe factory, shoe retail (brand EPCOT), socks
factory, an embroidery factory and an Fashion Retail Setup (Brand Cross Stitch.) The installed
spindle capacity put the group amongst the largest yarn spinning groups in Pakistan.  The leather
units of the group are also substantial in size by which operate by the name of EPCT Private
Limited. EPCT private limited has become the largest leather manufacturer and shoe factory in
Pakistan.  EPCT has a retail setup for the local market, which is known by the name of EPCOT
SHOES with shops all over Pakistan.  Our Socks unit has over 500 Machines and is an all export
based factory compromising of all Italian Lonati Machines. The annual turn over for the grouo
for the financial year 2019-2020 has touched 150 Million USD. Ayesha Group proudly employs
over 10,000 people in its various manufacturing and retail units.

RISK AND RETURN

RISK
Risk is any uncertainty with respect to your investments that has the potential to negatively affect
your financial welfare. For example, your investment value might rise or fall because of market
conditions (market risk).

RETURN
A return is the change in price of an asset, investment, or project over time, which may be
represented in terms of price change or percentage change. A positive return represents a profit
while a negative return marks a loss.

CALCULATION OF RISK AND RETURN FOR YEAR 2020

CALCULATION OF RISK AND RETURN FOR YEAR 2021