Financial Reporting

and Analysis
MUHAMMAD ALI AKRAM
ROLL#33 MBA 1.5(MORNING).
INTRODUCTION

 ZILLIMITED
A well know brand CAPRI soap of Pakistan is manufactured by ZIL
industries. ZIL Limited has been on a journey
of beauty and natural care with women across Pakistan for decades.
ZIL with its brand, Capri, Palmy and Opal has
grown to establish itself among the leading beauty companies of
Pakistan. This company is listed in stock exchange
under the sector of food and personal care sector
INTRODUCTION

 GOODLUCK INDUSTRIES
Goodluck industries was established in 1967. Goodluck Industries
Limited is a public limited company quoted at
Karachi Stock Exchange. The principal activity of the Company is
milling of Wheat and all kinds of grains. The
registered office and the factory premises of the company is
located at S-49/A S.I.T.E., Mauripur Road, Karachi.
 ZIL LIMITED
VERTICAL ANALYSIS OF BALANCE SHEET

2014 2015 2016 2017 2018

Property plant AND

47.74% 46.76% 57.78% 55.62% 64.40%
Equipment
Intangible assets 0.17% 0.18% 0.07% 0.03% 0.02%
long term deposit 0.79% 0.66% 0.63% 0.61% 0.49%
long term loans to
0.05% 0.06% 0.01% 0.11% 0.07%
employees
deferred tax assets net 1.94% 7.33% 3.75% 1.04% 0.00%
stores and spares net 1.65% 2.11% 2.03% 1.81% 1.14%
stock in trade 34.49% 25.75% 18.67% 19.92% 16.86%
trade debts net 3.52% 5.44% 3.09% 3.85% 4.17%
advances prepayments and
7.44% 8.15% 9.43% 13.26% 8.91%
other receivables
cash and bank balances 2.20% 3.56% 4.54% 3.74% 3.93%
current maturity of liability
against assets subject to 0.00% 0.00% 0.00% 0.00% 0.08%
lease
trade and other payables 18.54% 18.81% 18.98% 22.07% 20.88%
short term borrowing 24.49% 35.54% 27.50% 24.12% 17.14%
Taxation 1.65% 1.72% 1.62% 1.55% 1.22%
unclaimed dividend 0.00% 0.00% 0.00% 0.00% 0.09%
issued subscribed and paid
7.42% 7.78% 7.32% 7.03% 5.52%
up capital
reserves 23.03% 9.06% 9.32% 11.23% 11.12%
surplus on revaluation of
14.78% 15.50% 24.31% 22.16% 34.55%
fixed assets-net taxes
long term deposit 0.05% 0.06% 0.05% 0.00% 0.00%
deferred staff liabilities 10.02% 11.52% 10.91% 11.83% 8.89%
liability against asset subject
0.00% 0.00% 0.00% 0.00% 0.41%
to financial lease
ZIL LIMITED

VERTICAL ANALYSIS OF INCOME STATEMENT

A/C 2014 2015 2016 2017 2018

sales 100.00% 100.00% 100.00% 100.00% 100.00%

CGS 78.30% 81.61% 72.11% 71.79% 71.67%

Gross profit 21.70% 18.39% 27.89% 28.21% 28.33%

selling and distribution

23.82% 20.67% 19.47% 18.78% 18.20%
expense

admin expense 8.40% 6.83% 7.04% 6.55% 6.23%

-10.52% -9.12% 1.38% 2.88% 3.90%

other income 0.38% 0.36% 0.44% 1.27% 0.79%

ZIL LIMITED
HORIZONTAL ANALYSIS VARIABLE BASE OF BALANCE SHEET
ZIL LIMITED
HORIZONTAL ANALYSIS VARIABLE BASE OF BALANCE SHEET

2014-2015 2015-2016 2016-2017 2017-2018

Property plant AND Equipment -6.56% 31.38% 0.20% 47.43%
Intangible assets 0.65% -58.83% -49.83% -21.38%
long term deposit -20.75% 1.61% 1.28% 2.56%

long term loans to employees 1.12% -79.47% 922.58% -17.56%

deferred tax assets net 259.57% -45.61% -71.23% -100.00%

stores and spares net 21.92% 2.29% -7.07% -19.72%
stock in trade -28.80% -22.90% 11.06% 7.78%
trade debts net 47.49% -39.67% 29.87% 37.70%

advances prepayments and other receivables 4.54% 23.05% 46.32% -14.51%

cash and bank balances 54.17% 35.75% -14.36% 33.96%
current maturity of liability against assets
subject to lease 0.00% 0.00% 0.00% 100.00%
trade and other payables -3.24% 7.27% 21.07% 20.45%
short term borrowing 38.44% -17.74% -8.70% -9.52%
Taxation -0.57% 0.00% 0.00% 0.00%

unclaimed dividend 0.00% 0.00% 0.00% 100.00%

issued subscribed and paid up capital 0.00% 0.00% 0.00% 0.00%
reserves -62.47% 9.31% 25.40% 26.13%

surplus on revaluations of fixed assets-net taxes 0.04% 66.78% -5.12% 98.47%

long term deposit 0.00% 0.00% -100.00% 0.00%

deferred staff liabilities 9.63% 0.69% 12.89% -4.30%

liability against asset subject to financial lease 0.00% 0.00% 0.00% 100.00%

deferred tax liabilities net 0.00% 0.00% 0.00% 100.00%

 ZIL LIMITED
HORIZONTAL ANALYSIS FIXED BASE OF BALANCE SHEET

2014-2015 2014-2016 2014-2017 2014-2018

Property plant AND Equipment -7% 23% 23% 81%
Intangible assets 1% -59% -79% -84%
long term deposit -21% -19% -18% -16%
long term loans to employees 1% -79% 112% 75%
deferred tax assets net 260% 96% -44% -100%
stores and spares net 22% 25% 16% -7%
stock in trade -29% -45% -39% -34%
trade debts net 47% -11% 16% 59%
advances prepayments and other receivables 5% 29% 88% 61%
cash and bank balances 54% 109% 79% 140%

current maturity of liability against assets subject to lease 0% 0% 0% 100%

trade and other payables -3% 4% 26% 51%
short term borrowing 38% 14% 4% -6%
Taxation -1% -1% -1% -1%
unclaimed dividend 0% 0% 0% 100%
issued subscribed and paid up capital 0% 0% 0% 0%
reserves -62% -59% -49% -35%
surplus on revaluations of fixed assets-net taxes 0% 67% 58% 214%
long term deposit 0% 0% -100% -100%
deferred staff liabilities 10% 10% 25% 19%
liability against asset subject to financial lease 0% 0% 0% 100%
deferred tax liabilities net 0% 0% 0% 100%
 ZIL LIMITED
horizontal analysis variable base of income statement

A/C 2014-2015 2015-2016 2016-2017 2017-2018

sales 3.44% 8.95% 9.32% 18.47%

CGS 7.82% -3.73% 8.83% 18.26%

Gross profit -12.37% 65.23% 10.58% 18.98%

selling and distribution expense -10.25% 2.63% 5.43% 14.82%

admin expense -15.91% 12.22% 1.71% 12.64%

-10.40% -116.46% 128.70% 60.49%

other income -0.37% 32.86% 215.66% -26.39%

other charges 0.00% -73.72% 1180.65% 63.45%

-9.16% -121.77% 127.72% 30.28%

finance cost (interest) -15.50% -12.69% -9.57% 0.18%

profit before taxation -10.24% -104.24% 582.24% 43.49%

Taxation -60.24% -90.43% 1055.77% 28.22%

Net profit 16.52% -103.26% 328.76% 65.52%

 ZIL LIMITED

HORIZONTAL ANALYSIS FIXED BASE OF INCOME STATEMENT

A/C 2014-2015 2104-2016 2014-2107 2014-2018

sales 3.44% 12.70% 23.20% 45.95%

CGS 7.82% 3.80% 12.97% 33.60%

Gross profit -12.37% 44.79% 60.11% 90.50%

selling and distribution expense -10.25% -7.89% -2.89% 11.51%

admin expense -15.91% -5.63% -4.01% 8.12%

-10.40% -114.75% -133.73% -154.14%

other income -0.37% 32.37% 317.84% 207.56%

other charges #DIV/0! #DIV/0! #DIV/0! #DIV/0!

-9.16% -119.77% -145.03% -158.67%

finance cost (interest) -15.50% -26.22% -33.28% -33.16%

profit before taxation -10.24% -103.80% -125.96% -137.24%

Taxation -60.24% -96.20% -56.02% -43.61%

Net profit 16.52% -103.80% -116.31% -127.00%

 GOODLUCK INDUSTRIES

VERTICAL ANALYSIS OF BALANCE SHEET

A/C 2014 2015 2016 2017 2018

PROPERTY PLANT AND EQUIPMENT 85.55% 84.28% 82.83% 88.61% 87.75%

LONG TERM SECURITY DEPOSIT 0.14% 0.14% 0.14% 0.09% 0.09%

STOCK IN TRADE 8.12% 4.98% 7.43% 1.64% 3.47%

TRADE DEBT 1.38% 2.74% 3.57% 6.12% 4.72%

INCOME TAX REFUNDABLE 0.00% 3.07% 3.17% 2.43% 2.50%

ADVANCES DEPOSITES AND OTHER RECEIVABLES 0.23% 0.23% 0.82% 0.14% 0.14%

CASH AND BANK BALANCES 4.58% 4.56% 2.04% 0.97% 1.33%

ISSUED CAPITAL 1.19% 1.19% 1.18% 0.73% 0.74%

SURPLUS ON REVALUATION 76.16% 74.72% 74.01% 71.25% 79.07%

REVENUE RESERVES UNAPPROPRIATED CAPITAL 11.02% 13.84% 14.07% 9.68% 11.20%

DEFERRED LIABILITIES 9.05% 8.51% 8.95% 15.98% 8.23%

SHORT TERM RUNNING FINANCE

TRADE AND OTHER PAYABLES 0.84% 1.22% 1.20% 1.98% 0.35%

UNCLAIMED DIVIDEND 0.49% 0.52% 0.59% 0.38% 0.41%

INCOME TAX PAYABLE 1.25% 0.00% 0.00% 0.00% 0.00%

 GOODLUCK INDUSTRIES

VERTICAL ANALYSIS OF INCOME STATEMENT

A/C 2014 2015 2016 2017 2018

SALES 100.00% 100.00% 100.00% 100.00% 100.00%

CGS 98.50% 97.97% 98.30% 98.33% 98.03%

0.00%

GROSS PROFIT 1.50% 2.03% 1.70% 1.67% 1.97%

ADMINISTRATIVE EXPENSE 1.10% 1.11% 1.17% 1.30% 1.48%

SELLING EXPENSE 0.02% 0.02% 0.01% 0.02% 0.01%

OTHER INCOME 0.97% 0.00% 0.00% 0.00% 0.00%

OTHER OPERATING EXPENSES 0.09% 0.08% 0.05% 0.04% 0.02%

OPERATING PROFIT 1.26% 0.82% 0.47% 0.32% 0.46%

FINANCIAL CHARGES 0.00% 0.02% 0.00% 0.00% 0.00%

PROFIT BEFORE TAXATION 1.26% 0.81% 0.47% 0.32% 0.46%

TAXATION 0.45% 0.25% 0.34% 0.00% 0.17%

NET PROFIT 0.81% 0.55% 0.12% 0.32% 0.29%

 GOODLUCK INDUSTRIES

HORIZONTAL ANALYSIS VARIABLE BASE OF BALANCE SHEET

A/C 2014-2015 2015-2016 2016-2017 2017-2018

PROPERTY PLANT AND EQUIPMENT -1.43% -1.52% 74.62% -2.76%

LONG TERM SECURITY DEPOSIT 1.72% 0.00% 1.55% 0.00%

STOCK IN TRADE -38.64% 49.44% -63.99% 108.19%

TRADE DEBT 98.17% 30.72% 179.80% -24.37%

INCOME TAX REFUNDABLE 3.54% 24.89% 0.96%

ADVANCES DEPOSITES AND OTHER RECEIVABLES 0.00% 256.24% -71.93% 0.00%

CASH AND BANK BALANCES -0.27% -55.19% -22.55% 34.57%

ISSUED CAPITAL 0.00% 0.00% 0.00% 0.00%

SURPLUS ON REVALUATION -1.84% -0.75% 57.14% 8.97%

REVENUE RESERVES UNAPPROPRIATED CAPITAL 25.74% 1.84% 12.29% 13.64%

DEFERRED LIABILITIES -5.84% 5.31% 191.63% -49.45%

SHORT TERM RUNNING FINANCE

TRADE AND OTHER PAYABLES 44.76% -1.11% 168.70% -82.84%

UNCLAIMED DIVIDEND 4.67% 14.94% 4.01% 7.97%

INCOME TAX PAYABLE -100.00%

 GOODLUCK INDUSTRIES
HORIZONTAL ANALYSIS FIXED BASE OF BALANCE SHEET

A/C 2014-2015 2014-2016 2014-2017 2014-2018

PROPERTY PLANT AND EQUIPMENT -1.43% -2.93% 69.51% 64.82%

LONG TERM SECURITY DEPOSIT 1.72% 1.72% 3.29% 3.29%

STOCK IN TRADE -38.64% -8.30% -66.97% -31.24%

TRADE DEBT 98.17% 159.04% 624.80% 448.17%

INCOME TAX REFUNDABLE #DIV/0! #DIV/0! #DIV/0! #DIV/0!

ADVANCES DEPOSITES AND OTHER RECEIVABLES 0.00% 256.24% 0.00% 0.00%

CASH AND BANK BALANCES -0.27% -55.31% -65.39% -53.42%

ISSUED CAPITAL 0.00% 0.00% 0.00% 0.00%

SURPLUS ON REVALUATION -1.84% -2.58% 53.10% 66.82%

REVENUE RESERVES UNAPPROPRIATED CAPITAL 25.74% 28.05% 43.78% 63.39%

DEFERRED LIABILITIES -5.84% -0.85% 189.17% 46.17%

SHORT TERM RUNNING FINANCE

TRADE AND OTHER PAYABLES 44.76% 43.16% 284.68% -33.98%

UNCLAIMED DIVIDEND 4.67% 20.31% 25.13% 35.11%

INCOME TAX PAYABLE -100.00% -100.00% -100.00% -100.00%

 GOODLUCK INDUSTRIES

HORIZONTAL ANALYSIS VARIABLE BASE OF INCOME STATEMENT

A/C 2014-2015 2015-2016 2016-2017 2017-2018

SALES 10.0% 14.3% -9.7% 7.3%

CGS 9.4% 14.7% -9.7% 6.9%

GROSS PROFIT 48.4% -4.2% -11.1% 26.3%

ADMINISTRATIVE EXPENSE 11.2% 21.0% -0.3% 22.0%

SELLING EXPENSE 6.9% -42.8% 44.9% -53.7%

OTHER INCOME -100.0%

OTHER OPERATING EXPENSES -10.1% -27.8% -30.7% -29.5%

OPERATING PROFIT -28.1% -35.1% -37.4% 53.3%

FINANCIAL CHARGES 969.3% -88.1% -76.2% 418.0%

PROFIT BEFORE TAXATION -29.4% -34.0% -37.2% 52.8%

TAXATION -38.3% 55.5% -98.9% 4370.0%

NET PROFIT -24.5% -74.8% 136.7% -1.6%

 GOODLUCK INDUSTRIES

HORIZONTAL ANALYSIS FIXED BASE OF INCOME STATEMENT

A/C 2014-2015 2014-2016 2104-2017 2014-2018

SALES 9.99% 25.69% 13.49% 21.74%
CGS 9.40% 25.44% 13.29% 21.16%

GROSS PROFIT 48.44% 42.20% 26.43% 59.64%

ADMINISTRATIVE EXPENSE 11.22% 34.58% 34.19% 63.77%

SELLING EXPENSE 6.88% -38.87% -11.45% -58.98%

OTHER INCOME -100.00% -100.00% -100.00% -100.00%

OTHER OPERATING EXPENSES -10.14% -35.07% -54.99% -68.27%

OPERATING PROFIT -28.10% -53.33% -70.77% -55.17%

FINANCIAL CHARGES 969.30% 27.60% -69.67% 57.12%

PROFIT BEFORE TAXATION -29.45% -53.44% -70.77% -55.33%

TAXATION -38.35% -4.13% -98.98% -54.58%

NET PROFIT -24.47% -80.99% -55.00% -55.74%

RATIO ANALYSIS

CURRENT RATIO
ZILL GL

15.97766139

9.484717168
8.974496405

5.529393589
4.788015414

1.103396067 0.802731497 0.785321352 0.891954758 0.888197805

1 2 3 4 5
OPERTING CASH FLOW TO CASH DIVIDEND
ZILL GOODLUCK

19.6424767
18.80716981

12.07496455
10.65861428

5.537570942
4.107023498

2.436641667 2.691549809

0.554280671
0

2014 2015 2016 2017 2018

OPERATING CASH FLOW TO NUMBER OF SHARE
OUTSTANDING
ZILL GOODLUCK

1.881847

1.628033842

1.311566981

1.060117
0.9755822691.000113 0.963740894

0.792964667

0.636564

0.071799562

2014 2015 2016 2017 2018

 OPERATING CASH FLOW TO TOTAL DEBT
ZIL LIMITED GOODLUCK

0.201782638
0.192037157

0.148413329

0.115791541
0.112228218 0.116861238 0.113749357

0.065175514

0.025175369
0.00973292

2014 2015 2016 2017 2018

OPERATING CASH FLOW TO CURRENT SHORT TERM
LOAN
CHART TITLE
ZILL GL

2.648045817

1.69017721

1.041983022
0.972139681

0.433375072 0.422642105
0.280980952
0.232854397
0.213613378
0.021764316

2014 2015 2016 2017 2018

 ZILL GL

5.277039639

4.54475345
4.271194061
3.851753795
3.479587762
3.358924046 3.33888138
3.103520979

2.329071647 2.282893876

2014 2015 2016 2017 2018

 SALES PER SHARE
CHART TITLE
ZILL GL

290.361779
281.2218723
262.1634263
254.086591
231.010611

26.12249698 30.946085
21.20311632 21.93256133 23.89576324

2014 2015 2016 2017 2018

 PRICE EARING RATIO
CHART TITLE
ZILL GL

143.73

32.61

16.9 16.3 16.44 18.2

13.2 10.7 12.5
3.96

1 2 3 4 5
 BOOK VALUE PER SHARE
CHART TITLE
ZILL GL

123.1865727
112.5613403

74.43500867 75.64523267 75.384304

9.268399046
6.093571359 4.15622448 5.594632999 5.747835887

1 2 3 4 5
 EPS
CHART TITLE
ZILL GL

18.63

14.07

8.38 8.25

4.562277464
3.54
2.756345343
0.642864143

1 2 3 4 5

-16.89951981
-19.69130761
 OPERATING CYCLE
CHART TITLE
zill GL

110.318205

79.09810963

60.46891356 62.78547045
59.1437405

12.81349042 14.95337401 14.51465729

9.470566755 11.81486329

1 2 3 4 5
 AVERAGE COLLECTION PERIOD
CHART TITLE
ZILL GL

11.63760395 11.75447905

8.897754532
8.162145215 8.287438855
7.654982318

6.443823896

3.793032726
3.315940706

1.84045245

2014 2015 2016 2017 2018

 A/R TURNOVER
CHART TITLE
ZILL GL

198.3207988

110.0743446
96.22906693

56.64338534
44.71863589 47.68136422 44.04255722
41.02158569
31.36384445 31.05199289

2014 2015 2016 2017 2018

 AVERAGE AGE OF INVENTORY
CHART TITLE
ZILL GL

102.1560597

67.46050568

54.02508966 55.13048814
50.24598597

10.97303797
6.154626049 8.021830564 6.227218438
3.198894956

1 2 3 4 5
 INVETORY TURN OVER
CHART TITLE
ZILL GL

114.1019024

59.30498411 58.61364968

45.50083638

33.26334975

5.41057314 6.756120208 6.620656053 7.264261871

3.572964745

1 2 3 4 5
 TOTAL ASSET TURNOVER
CHART TITLE
ZILL GL

3.438028695

3.014704585
2.742473558

2.077689488
1.901850014
1.836982314
1.706937995 1.748954005 1.70919419
1.574034735

1 2 3 4 5
 DEBT TO EQITY RATIO
CHART TITLE
ZILL GL

4.016027044

3.54962419
3.263256229
2.932549253

1.798057286 1.763028246

0.953320666
0.681835199 0.704222689 0.752830182

1 2 3 4 5
 EQUITY RATIO
CHART TITLE
ZILL GL

30.5%

18.3%
16.8% 16.6% 16.6%
15.03% 15.25%

12.20% 11.94%
10.40%

1 2 3 4 5
 DEBT RATIO
CHART TITLE
ZILL GL

67.7%

59.1% 59.6%
54.8%

48.8%

18.34%

11.63% 10.25% 10.74%

8.99%

1 2 3 4 5
WORKING CAPITAL TO TOTAL ASSETS
CHART TITLE
ZILL GL

49.3%

45.0%
42.6%

37.8%
35.0%

17.03%
15.58%
14.31%
11.30% 12.16%

1 2 3 4 5
NET WORKING CAPITAL TO TOTAL ASSETS
CHART TITLE
ZILL GL

15%
14%
12% 11%
9%

5%

1 2 3 4 5

-4%
-5%

-10%
-11%
 CASH RATIO
CHART TITLE
ZILL GL

4.58% 4.56% 4.54%

3.93%
3.74%
3.56%

2.20%
2.04%

1.33%
0.97%

1 2 3 4 5
 NET WORKING CAPITAL
CHART TITLE
ZILL GL

46278757

38608857
36968894
35005918

29625074

38106

1 -87025 2 -86362 3 -44917 4 -48857 5

 QUICK RATIO
CHART TITLE
ZILL GL

11.41103684

6.105823269
5.349011735

4.093553767

2.391803874

0.331512655 0.343588349 0.397131387 0.474776534 0.460430897

1 2 3 4 5
 FINANCIAL LEVERAGE
CHART TITLE
ZILL GL

29.46597197

1.560721382
1.320269839 1.053816523
0.000713755

1 2
-0.962184787 3 4
-0.796000778 -0.483430715
5
-1.605073736

-4.324029448
 OPERATING LEVERAGE
CHART TITLE
ZILL GL

5.246217733

1.192948394

1 2 3 4 5
-0.333331473 -0.38945849
-0.577767574
-0.906526428
-1.22444832
-1.582657761 -1.707165328
-2.13901267
 DIVIDEND PAYMENT
CHART TITLE
ZILL GL

122.83%

35.73%
26.97%
17.80% 18.49%
12.83%
8.36%
0.00% 1.35%

1 2 3 4 5
-7.67%
 NET PROFIT MARGIN
CHART TITLE
ZILL GL

1.47%
1.06%
0.81% 0.55% 0.27% 0.12% 0.32% 0.29%

1 2 3 4 5

-7.97%

-8.98%
 GROSS PROFIT MARGIN
CHART TITLE
ZILL GL

27.9% 28.2% 28.3%

21.7%

18.4%

1.50% 2.03% 1.70% 1.67% 1.97%

1 2 3 4 5
 OPERATING PROFIT MARGIN
CHART TITLE
ZILL GL

4.08%
3.71%

1.78%
1.26%
0.82% 0.47% 0.32% 0.46%

1 2 3 4 5

-8.91%
-10.15%