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Financial Analysis Report

Financial Analysis Report on Mahmood textile Mills Limited SSyyeeddaa MMuunneeeebbaa AAllii RRoollll nnoo 112200 ((44 tthh

on Mahmood textile Mills

Financial Analysis Report on Mahmood textile Mills Limited SSyyeeddaa MMuunneeeebbaa AAllii RRoollll nnoo 112200 ((44 tthh

Limited

Financial Analysis Report on Mahmood textile Mills Limited SSyyeeddaa MMuunneeeebbaa AAllii RRoollll nnoo 112200 ((44 tthh
SSyyeeddaa MMuunneeeebbaa AAllii RRoollll nnoo 112200 ((44 tthh ))sseemmiisstteerr MMoorrnniinngg MM..CCoomm
SSyyeeddaa MMuunneeeebbaa AAllii
RRoollll nnoo 112200
((44 tthh ))sseemmiisstteerr MMoorrnniinngg
MM..CCoomm
Financial Analysis Report on Mahmood textile Mills Limited SSyyeeddaa MMuunneeeebbaa AAllii RRoollll nnoo 112200 ((44 tthh

VISION STATEMENT

To be recognized internationally and locally as dynamic, quality conscious and ever progressive Textile Product manufacturer in the Textile Industry of pakistan

MISSION STATEMENT

Mahmood Group is committed to:

Be ethical in its practices. Excel through continuous improvement by adopting most modernized technology in production. Operate through professional Team work. Retain our position as leading and innovative in the Textile Industry. Achieve Excellence in the quality of our product. Be a part of country's economic development and social Prosperity.

VISION STATEMENT To be recognized internationally and locally as dynamic, quality conscious and ever progressive Textile

BOARD OF DIRECTORS:

Chairman KHAWAJA MUHAMMAD MASOOD Chief Executive KHAWAJA MUHAMMAD IQBAL Directors KHAWAJA MUHAMMAD ILYAS KHAWAJA MUHAMMAD YOUNUS JALAL-UD-DIN ROOMI MRS. MEHR FATIMA MUHAMMAD MUZAFAR IQBAL Company Secretary: GHULAM MOHAYUDDIN Chief Financial Officer: MUHAMMAD AMIN PAL F.C.A. Auditors: M. YOUSUF ADIL SALEEM & CO. Chartered Accountants 61-B,AIi Imran Centre Abdali Road, Multan. Bankers: MCB BANK LTD.

BOARD OF DIRECTORS: Chairman KHAWAJA MUHAMMAD MASOOD Chief Executive KHAWAJA MUHAMMAD IQBAL Directors KHAWAJA MUHAMMAD ILYAS

UNITED BANK LIMITED HABIB BANK LIMITED

Registered Office: MEHR MANZIL, LOHARI GATE, MULTAN.

Tel.: 061-111-181-181 Fax: 061-4511262 E-mail: info@mahmoodgroup.com URL : www.mahmoodgroup.com Mills: MAHMOODABAD, MULTAN ROAD, MUZAFFARGARH. MASOODABAD, D.G. KHAN ROAD, MUZAFFARGARH

UNITED BANK LIMITED HABIB BANK LIMITED Registered Office: MEHR MANZIL, LOHARI GATE, MULTAN. Tel.: 061-111-181-181 Fax:

Objectives:

  • 'Farm to Fabric' is the objective of the company. Being vertically integrated, the group possesses its own vast cotton farms in the area of Multan, a

region of Punjab. The cotton ginning, seed oil extraction, spinning and weaving units are located at strategic places for efficient and harmonious working of the various production units.

Current Performance
Current Performance

The only group which starts from cotton farming to ginning, spinning and weaving, which gives it a distinction over the entire textile industry of Pakistan.

· Certified by ISO, Supima, Lycra and Oko-tex. · Employees = 11,000. · Turnover = US$ 215 million. · Exports ratio = 90%. · Employee Turnover = 10%.

· Responsible Corporate Citizenship RATIO ANALYSIS

Ratio analysis is a shortcut method of expressing relationships among various items on the finanicial statements. However, ratios are not substitutes for looking deeper into the financial position of company.

In the analysis of Mahomood Textile Mills we found the following ratios:

 · Responsible Corporate Citizenship  RATIO ANALYSIS  Ratio analysis is a shortcut method of

1) Time interest earned 2) Book value per share 3) Earnings per share 4) Equity ratios 5) Profit margin 6) Inventory turnover ratio 7) Cash ratio 8) Debt to equity 9) Working capital 10) Current ratios

11) Return on total assets

12) Return on shareholders’ equity

13) Gross profit ratio

14) Debt ratio

15) Quick ratio

2006=304924164 /127242498 = 2.40 2008 =271248824/221160302 =1.23 2007= 438012752 /190691630 = 2.30 2009 =571453864/381249583 =1.50 2010
2006=304924164 /127242498 = 2.40
2008 =271248824/221160302 =1.23
2007= 438012752 /190691630 = 2.30
2009 =571453864/381249583 =1.50
2010 =986506596/340466887 =2.90
Time interest earned
TIE = Income before interest and taxes/annual interest
expense

2011=1757576359/482379954=3.64

COMMENTS

From 2006-2009 Time Interest Earned decreased due to high interest expense. As compare to 2009 Net Income Increased by 240% and Interest Expense decreased by almost 11% in 2010 which cause of increased in Time Interest Earned ratio. The company should arrange finance at minimum cost to increase the Time Interest Earned Ratio in other words to increase the ability to meet its interest expenses.In 2011 finance is at minimum cost so the time interest ratio has increased.

Book Value Per Share

BVPS= Total Common Shareholder’s Equity/Number of common

share outstanding

  • 2006 =1551824359 /9984989 =155.42

  • 2007 =1693533968 /9984989 =169.61

  • 2008 =1623589865 /9984989 =162.60

  • 2009 =1711456511 /9984989 =171.40

  • 2010 =2249716345 /15000000 =149.98

2011=3283144962/15000000=218.87

Comments

In 2006-2007 Book Value per Share increased From Rs.155.42-169.61 but in 2008 due to allocation a
In 2006-2007 Book Value per Share increased From Rs.155.42-169.61 but in
2008 due to allocation a large amount for “Provision for Tax” owners’ equity
Eps= Net Income/No. of Shares
2006 =110127922/9984989 =11.03
EARNING PER SHARE
Value per Share decreased by almost Rs. 21.5.In 2011 0wner equity increased
but shares remain same so it again increased to 68.89
decreased which decreased the Book Value per Share by Rs.7. in 2009 Book
Value per Share was the highest Rs.171.4 but the Book Value per Share again
decline in 1st half of 2010. In 2010 number of share increased by 50% while
owners’ equity could not increase with the same proportion as the result Book
  • 2007 =176842561/9984989 =17.71

  • 2008 =(4979641)/9984984 =(0.5)

  • 2009 =102843981/9984989 =10.30

  • 2010 =578199790/15000000 =38.55

2011=1123428617/15000000=74.89

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