Nestle Food Pakistan:

Final Report of Analysis of Financial

Statement:

Ratio Analysis:
Group member

Shahid Hassan

ID 1359

M.Mohsin

ID 8111

1
 ACKNOWLEDGEMENT

This research is made possible through the help and support of all group members. Especially,
please allow us to dedicate our acknowledgment of gratitude toward the following significant
advisor and contributor: we would like to thanks Sir Saleem Sudhani for his most support and
encouragement. Second, we would like to thanks all the classmates which are studying in Iqra
University without the support of them we are unable to do this research. Finally, we sincerely
thanks to our parents, family, and friends who provide the advice and support us. The product of
this research would not be possible without all of them.

2
Contents
Introduction…………………………………………………………………………………………………………………………………………3

Vision & Mission Statement ……………………………………………………………………………………………………………..…6

Goal & Objective …………………………………………………………………………………………………………………………………7

Why ratio are useful…………………………………………………………………………………………………………………………….8

Income Statements of 5 Years…………………………………………………………………………………………………………….10

Balance sheet of 5 Years……………………………………………………………………………………………………………………..15

Cash Flow statements of 5 Years…………………………………………………………………………………………………………18

Data required for ratio analysis…………………………………………………………………………………………………………..25

Ratio Analysis……………………………………………………………………………………………………………………………………..27

Vertical Analysis of Income statement………………………………………………………………………………………………..41

Vertical analysis Balance sheet …………………………………………………………………………………………………………..42

Comparison of Balance sheet …………………………………………………………………………………………………………….44

Comparison of Income statement ……………………………………………………………………………………………………..46

Conclusion………………………………………………………………………………………………………………………………………….47

3
NESTLÉ

Good Food, Good Life

Introduction:

Nestlé, the Company which is renowned for its vast collection of food products. The Company

was formed in 1905 by the merger of the Anglo-Swiss Milk Company, established in 1866 by

brothers George Page and Charles Page, and Farine Lactée. Nestlé was found in 1866 by Henri

Nestlé. The company grew significantly during the First World War and again following the

Second World War, expanding its offerings beyond its early condensed milk and infant formula

products. The company has made a number of corporate acquisitions, including Crosse &

Blackwell in 1950, Findus in 1963, Libby's in 1971, Rowntree Mackintosh in 1988 and Gerber in

2007.

As Nestlé started with a condensed milk and later it climbed so fast at the ladder of success that it

is now a leading brand in food products with so many sub-brands. Currently Nestlé is dealing with

bottled water, breakfast cereals, coffee, confectionery, dairy products, ice cream, pet foods, other

beverages, shelf stable, chilled, Ice cream, Infant nutrition, performance nutrition, healthcare

nutrition, frozen foods, refrigerated products, food services and professional products and

snacks.29 of Nestlé's brands have annual sales of over 1 billion Swiss francs (about $ 1.1 billion).

Nestlé has around 450 factories, operates in 86 countries, and employs around 328,000 people. It

is one of the main shareholders of L'Oréal, the world's largest cosmetics company.

4
NESTLÉ in Pakistan

Nestlé has been serving Pakistani consumers since 1988, when parent company, the Switzerland-

based Nestlé SA, first acquired a share in Milk Pak Ltd. Today Nestlé is fully integrated in

Pakistani life, and is recognized as the producer of safe, nutritious and tasty food, and leaders in

developing and uplifting the communities in which they operate. Nestle Pakistan ensures that their

products are made available to consumers wherever in the country they might be. Convenience is

at the heart of the Nestlé philosophy, and there aim is to bring products to people’s doorsteps.

The following project is about Nestlé Pakistan and the necessary details about Nestlé Pakistan are

as follow:

Ticker: NESTLÉ

Country: PAKISTAN

Exchanges: KAR

Major Industry: Food & Beverages

Sub Industry: Diversified Food

2011 Sales: 64,824,364,000 (Year Ending Jan 2012)

Employees: 2,422

Currency: Pakistan Rupees

Market Capture: 210,875,565,600

Fiscal Year Ends: December

5
Vision

“Nestlé’s global vision is to be the recognized leading Nutrition, Health and Wellness Company.

Nestlé Pakistan subscribes fully to this vision of being the number one Nutrition, Health, and

Wellness Company in Pakistan. In particular, we envision to;

 Lead a dynamic, passionate and professional workforce – proud of our heritage and

positive about the future.

 Meet the nutrition needs of consumers of all ages – from infancy to old age, from nutrition

to pleasure, through an innovative portfolio of branded food and beverage products of the

highest quality.

 Deliver shareholder value through profitable long-term growth, while continuing to play a

significant and responsible role in the Social, Economic, and Environmental sectors of

Pakistan.”

Mission

“Nestlé is dedicated to providing the best foods to people throughout their day, throughout their

lives, throughout the world. With our unique experience of anticipating consumers’ needs and

creating solutions, Nestle contributes to your well-being and enhances your quality of life.”

6
Goals and Objectives

The goals and objectives of Nestlé Pakistan are simple and well designed with the core strategies

to meet the demand of the consumers and to fulfill the needs of the customers. Following are the

main goals and;

1. To be, the best and quality providing brand among other brands in Pakistan.

2. To fulfill customers’ needs and requirements.

3. To capture it’s desired market share.

4. To dwell into the life of people and consumers.

5. To boost up its sales.

6. To create value for customer.

7. To keep the loyalty of customer with Nestlé.

8. To be the top nutrition company of Pakistan.

9. To be the leading FMCG company around the world as well as in Pakistan.

10. It aims to be the socially responsible and helping company in bad times.

11. Nestlé aims to be proactive innovation and renovation culture, which is the key to Nestlé’s

success in the marketplace.

12. Nestlé aims to have fully integrated systems with suppliers & retailers so that every single

market can be tapped & focused.

7
 Why are ratios useful?

1. Analyzing Financial Statements

Ratio analysis is an important technique of financial statement analysis. Accounting ratios are

useful for understanding the financial position of the company. Different users such as investors,

management. Bankers and creditors use the ratio to analyze the financial situation of the company

for their decision making purpose.

2. Judging Efficiency

Accounting ratios are important for judging the company's efficiency in terms of its operations and

management. They help judge how well the company has been able to utilize its assets and earn

profits.

3. Locating Weakness

Accounting ratios can also be used in locating weakness of the company's operations even though

its overall performance may be quite good. Management can then pay attention to the weakness

and take remedial measures to overcome them.

Five Major Categories of Ratios

Financial ratios can be divided into five categories:

 Liquidity (Solvency) ratios

Liquidity or solvency ratios are described as the ability for a company to settle its debts by

liquidating its assets. The basic idea of this ratio is to understand the company's value of its assets

in relation to its debt or long-term obligations to other financial institutions. This ratio measures

the company's availability of cash after liquidation.

8
 Financial Leverage (Debt) ratios

Leverage ratios are the company's ability to pay off its long-term debt to financial institutions or

financial partners. While similar to liquidity ratios when it comes to settling debt, this ratio

measures the company's current financial standing, net payments pending, liquidity and interest

coverage.

 Asset Efficiency ratios

Efficiency or activity ratios measure the company's use of resources. This ratio takes in the total

amount of sales, collection times and sales. Activity ratios are a way to measure a company's

current financial standing as a running business.

 Profitability ratios

Profitability ratios measure the company's current rate of return. This takes into account the

company's current net sales versus gross profit as well as net sales versus operating income. With

a profitability ratio, owners can see the company's future stability by measuring how well it's

keeping itself above water based on its overall income and running costs.

 Market value ratios

Market ratios take a look at the business outside the company with its shareholders, relationships

with shareholders and its market activity. This measures the amount of direct profit and sales

versus company costs and its ability to protect its financial relationship with outside shareholders

while establishing a fair market price that will rise and fall with the company's progress.

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Income statement of 2012

10
Income Statement of 2013

11
Income Statement of 2014

12
Income Statement of 2015

13
Income Statement of 2016

14
Balance sheet of 2012

15
Balance sheet of 2013

16
Balance sheet of 2014

17
Balance sheet of 2015

18
Balance sheet of 2016

19
Cash Flow Statement 2012

20
Cash Flow Statement 2013

21
Cash Flow Statement 2014

22
Cash Flow Statement 2015

23
Cash Flow Statement 2016

24
The Data required for Ratio Analysis is used as follow

Year 2012 2013 2014 2015 2016

Current Assets 16,905,484 17,936,483 18,405,708 18,029,598 19,567,821

Current Liability 20,003,413 18,000,989 27,777,240 25,143,112 33,027,347

Net sale 5,864,511 5,866,763 7,929,271 8,760,930 11,846,973

Cost of goods sold 57,564,265 62,066,072 69,133,753 68,859,344 72,609,392

Total assets 50,872,717 52,289,521 51,730,695 49,267,464 50,781,770

total liability 39,329,783 40,430,364 39,103,070 36,629,702 41,969,718

net profit 5,864,511 5,866,763 7,929,271 8,760,930 11,846,973

Total revenue 79,087,696 86,226,869 96,457,743 102,985,916 112,392,654

Shareholder equity 11,560,264 11,859,157 12,627,625 12,637,762 8,812,052

Inventory 8,025,653 7,925,132 9,763,987 9,474,681 11,207,230

A/C receivable 132,070 909,182 509,558 4,283,143 2,153,601

A/C payable 7,889,624 7,414,477 8,499,586 16,676,336 16,678,547

EBIT 7,977,974 8,112,962 11,009,168 12,520,122 17,019,920

Interest Expense 2,113,463 2,246,199 3,079,897 3,759,192 5,172,947

This data of five years is collected from Nestle Audit report, all the data is accurate as per audit

report, and some value may be different due to mistake in collection data.

The calculation of Ratio Analysis is break into four parts

1. Liquidity Components.

2. Efficiency Components.

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3. Leverage Components.

4. Profitability Components.

26
 Liquidity Components

Current Ratio

Current Ratio = Current Assets / Current Liabilities

Year 2013 2014 2015 2016

Current Assets 17,936,483 18,405,708 18,029,598 19,567,821

Current Liability 18,000,989 27,777,240 25,143,112 33,027,347

Current Ratio 0.9964 0.6626 0.717 0.5924

Interpretation

The above calculation is done using the formula can be seen in the above table, as we can see the

difference in four years as current ratio in 2013 decrease in 2014 then slightly increase in 2015 and

then again decrease in 2016.

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Quick Ratio

Quick ratio = Current assets – Inventories/ Current liabilities

Year 2013 2014 2015 2016

Current Assets 17,936,483 18,405,708 18,029,598 19,567,821

Inventory 7,925,132 9,763,987 9,474,681 11,207,230

Current Liability 40,430,364 39,103,070 36,629,702 41,969,718

Quick Ratio 0.2476 0.2209 0.2335 0.1992

Interpretation

The above formula written in the table box is used to calculate Quick Ratio, the four year Quick

ratio shows the variation as 2013 it was 0.2476, in 2014 it was 0.2209. in 2015 it was 0.2335 and

in 2016 it was 0.1992.

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Working Capital

Working Capital = Current Assets/Current Liabilities

Year 2013 2014 2015 2016

Current Assets 17,936,483 18,405,708 18,029,598 19,567,821

Current Liability 18,000,989 27,777,240 25,143,112 33,027,347

Working Capital 64506 9371532 7113514 13459526

Interpretation:

The formula was used to calculate working capital can be seen in the table box, as this table shows

the difference in working capital accrued in the four year , as in 2013 working capital was low but

in 2016 it increased.

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 Efficiency Components

Inventory turnover

Inventory turnover = Cost of goods sold/ Average inventory

Year 2013 2014 2015 2016

Average inventory 3962566 4881993.5 4737340.5 5603615

Cost of goods sold 62,066,072 69,133,753 68,859,344 72,609,392

Inventory Turnover 15.663 14.16 14.535 12.957

Inventory Turnover in days 23.303 25.776 25.111 28.17

Interpretation

The above formula in the table box is used to calculate inventory turnover and the difference in

inventory turnover in days can be seen that in 2013 it was 23.303, in 2014 it was 25.776, in 2015

it was 25.111 and in 2016 it was 28.17, there is slightly constant increase in each years.

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Average collection period:

Average collection period = Days*Accounts Receivable/ Credit Sales

Year 2013 2014 2015 2016

A/c Receivable in days 3318281430 185988670 1563347195 786064365

Credit Sale 909,182 509,558 4,283,143 2,153,601

Average collection period 3649.9 365 365 365

Interpretation

The above formula in the table is used to calculate Average collection period, as each year

collection period is constant except 2013. This result shows that company has constant period of

collection and same days.

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Average payment period:

Average payment period = Accounts Payable*Days/ Net Credit purchases

Year 2013 2014 2015 2016

A/c Payable in days 2706284105 3102348890 6086862640 6087669655

Credit purchase 7,414,477 8,499,586 16,676,336 16,678,547

Average payment period 365 365 365 365

Interpretation:

The above formula is used to calculate Average payment period, the results of four year indicate

that company has same number of days to payment.

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Cash conversion cycle:

Cash conversion cycle = Days Inventory Outstanding Days Sales Outstanding-Days

Payable Outstanding

Year 2013 2014 2015 2016

Inventory Turnover 15.663 14.16 14.535 12.957

Average collection period 3649.9 365 365 365

Average payment period 365 365 365 365

Cash conversion cycle 15.663 14.16 14.535 12.957

Interpretation:

To calculate the conversion cycle above formula is used and results shows the decrease in four

year as in 103 it was 15.663, in 2014 it was 14.166, in 2015 it was 14.535 and in 2016 it was

12.957.

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 Leverage Components

Debt ratio:

Debt ratio = Total liabilities/ Total assets

Year 2013 2014 2015 2016

Total Liability 40,430,364 39,103,070 36,629,702 41,969,718

Total Assets 52,289,521 51,730,695 49,267,464 50,781,770

Debt Ratio 0.773 0.755 0.743 0.826

Interpretation:

The above formula is used to calculate Debt ratio and result can be seen easily as in 2013 it was

0.773, in 2014 it was 0.755, in 2015 it was 0.743, and in 2016 it was 0.826.

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Interest Coverage:

Interest Coverage = EBIT/ Interest Expense

Year 2013 2014 2015 2016

EBIT 8,112,962 11,009,168 12,520,122 17,019,920

Interest Expense 2,246,199 3,079,897 3,759,192 5,172,947

Interest Coverage 3.611 3.574 3.33 3.29

Interpretation:

The above formula is used to calculate Interest coverage and result can be seen easily as in 2013

it was 3.611, in 2014 it was 3.574, in 2015 it was 3.33, and in 2016 it was 3.29.

This results show the company’s interest coverage.

35
Debt-to-equity ratio:

Debt-to-equity ratio= Total Liabilities / Shareholders' Equity

Year 2013 2014 2015 2016

Total Liability 40,430,364 39,103,070 36,629,702 41,969,718

Shareholders’ Equity 11,859,157 12,627,625 12,637,762 8,812,052

Debt-to-equity ratio: 3.409 3.096 2.898 4.762

Interpretation:

The above formula is used to calculate Debt to Equity ratio and result can be seen easily as in 2013

it was 3.409, in 2014 it was 3.096, in 2015 it was 2.898, and in 2016 it was 4.762.

This result shows the figure of Debt against equity.

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 Profitability Components:

Return on Equity

Return on Equity = Net Income/Shareholder's Equity

Year 2013 2014 2015 2016

Net Income 5,866,763 7,929,271 8,760,930 11,846,973

Shareholders Equity 11,859,157 12,627,625 12,637,762 8,812,052

Return on Equity 49.47% 62.79% 69.32% 134.44%

Interpretation:

The above formula is used to calculate Return on Equity and result can be seen easily as in 2013

it was 49.47%, in 2014 it was 62.79%, in 2015 it was 69.32%, and in 2016 it was 134.44%

In 2016 there is huge increase, increase can be seen in the table of 2916.

37
Return on Assets:

Return on Assets = Net income/ Total assets

Year 2013 2014 2015 2016

Net Income 5,866,763 7,929,271 8,760,930 11,846,973

Total Assets 52,289,521 51,730,695 49,267,464 50,781,770

Return on Assets 11.21% 15.32% 17.78% 23.32%

Interpretation:

The above formula is used to calculate Return on Assets and result can be seen easily as in 2013

it was 11.21%, in 2014 it was 15.32%, in 2015 it was 17.78%, and in 2016 it was 23.32%.

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Net Profit Margin:

Net Profit margin = Net profit/Revenue

Year 2013 2014 2015 2016

Net Profit 5,866,763 7,929,271 8,760,930 11,846,973

Revenue 86,226,869 96,457,743 102,985,916 112,392,654

Net Profit Margin 0.068 0.082 0.085 0.105

Interpretation:

The above formula is used to Net profit margin and result can be seen easily as in 2013 it was

0.068 in 2014 it was 0.082 in 2015 it was 0.085 and in 2016 it was 0.105.

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Gross Profit Margin:

Gross Profit Margin = Revenue-COGS/ Revenue

Year 2013 2014 2015 2016

Revenue 86,226,869 96,457,743 102,985,916 112,392,654

Cost of goods sold 62,066,072 69,133,753 68,859,344 72,609,392

Gross Profit Margin 0.28 0.283 0.331 0.353

Interpretation:

The above formula is used to gross profit margin and result can be seen easily as in 2013 it was

0.28 in 2014 it was 0.283 in 2015 it was 0.331 and in 2016 it was 0.353.

40
 Vertical analysis of Income Statement

2013 2012 2013 2012

sales 86226869 79087696 100% 100%
cost of goods sold 62066072 57564265 72% 73%
gross profit 24160797 21523431 28% 27%
distribution and selling expense 10731584 8787508 12% 11%
administrative expense 1957943 1769803 2% 2%
operating cost 11471270 10966120 13% 14%
finance cost 2113096 1827969 2% 2%
other operating expense 1439777 1320319 2% 2%
3522873 3148288 4% 4%
other operating income 194565 160142 0% 0%
profit before taxation 8112962 7977974 9% 10%
taxation 2246199 2113463 3% 3%
profit after taxation 5866763 5864511 7% 7%
earnings per share -basic and diluted (rupees) 12937 12932 0% 0%

Interpretation:

This shows the vertical analysis of income statement of 2012 and 2013. Sales represent 100% of

combination of percentage of Cost of goods sold and percentage of Gross profit. Firstly we have

cost of goods sold which have 1% change in both year from 2012 to 2013. Same situation occurs

with gross profit 2012 gross profit is 27% and in 2013 percentage is 28%.

Secondly we have Profit before taxation and profit after taxation. Profit before taxation have

change of 1% because we have 10% in 2012 and then after change of 1% it becomes 9% in 2013.

But there is no change in after taxation profit.

41
 Vertical analysis of Balance sheet

2013 2012 2013 2012

Equity and Liability
Authorize Cap 750000 750000 1% 1%
issued cap 453496 453496 1% 1%
share premium 249527 249527 0% 0%
General reserve 280000 280000 1% 1%
Accumulated profit 10876134 10577241 21% 21%
11859157 11560264 23% 23%
Non-Current liability 0% 0%
long term finance 17464812 15366964 33% 30%
Differed taxation 4102160 3304091 8% 6%
retirement benefits 862403 637985 2% 1%
22429375 19309040 43% 38%
Current Liabilities
Current portion of non-current liability 4831840 41686 9% 0%
short term borrowing - secure 0 3900000 0% 8%
short term running finance under markup arrangements 3356591 5937374 6% 12%
Customer security deposit 181977 184441 0% 0%
trade and other payables 9366805 9760897 18% 19%
Interest payable 263776 196345 1% 0%
18000989 20020743 34% 39%
52,289,52 50,890,04 100 100
total liabilities and share holder equity 1 7 % %
Asset
Non-current asset
Tangible fix asset 31467872 21970957 60% 43%
property plant & equip 2351556 11549623 4% 23%
Capital WIP 33819428 33520580 65% 66%
Intangible asset 2392 7173 0% 0%
Goodwill 167546 167546 0% 0%
Long term loan and advance 293304 236639 1% 0%
long term deposited and payments 71368 98663 0% 0%
Current Assets
Stores and spares 1273538 1373239 2% 3%
Stock and trade 7925132 7979615 15% 16%
trade debts 346041 491842 1% 1%
current portion of long-term loan and advances 55784 45735 0% 0%
Advance deposit pre-payment and other receivable 7615923 6208184 15% 12%

42
 cash & bank balance 720065 760831 1% 1%
17936483 16859446 34% 33%
52,289,52 50,890,04 100 100
Total Assets 1 7 % %

Interpretation

Here we have vertical analysis of balance sheet of nestle 2012 and 2013 both. In this table firstly

we have equity and liability which remain constant in both 2012 and 2013 there is no change occur

in this. Then we have noncurrent liability and there is 5% change in 2013 as compare to 2012

because 2012 it shows 38% and in 2013 it becomes 43%. Then this table shows current liability

which shows the difference of 5% because in 2012 it shows 39% and then decrease to 34% this

indicates favorable situation. Second part of the table shows Asset section. In which their current

assets are 34% of total assets in year 2013 and 33% of total assets in year 2012 which shows 1%

change in year 2013 which is good sign for the company. And if we see their receivable sections

it is clearly define that their receivable are increase by 3% in comparison of receivable of year

2012.

43
 Compare the current Balance Sheet with the previous year, in terms
amount changes and percentage changes, and forecast the next two
years
Amt. % change 2012- forecasted forecasted
2013 2012 change 2013 2014 2015
Equity and Liability
Authorized Cap 750000 750000 0 0% 750000 750000
issued cap 453496 453496 0 0% 453496 453496
share premium 249527 249527 0 0% 249527 249527
General reserve 280000 280000 0 0% 280000 280000
Accumulated profit 10876134 10577241 298893 3% 11183473.16 11499497.14
11859157 11560264 298893 3% 12165777.94 12480326.63
Non-Current liability
long term finance 17464812 15366964 2097848 14% 19849051.39 22558779.4
Differed taxation 4102160 3304091 798069 24% 5092994.311 6323154.399
retirement benefits 862403 637985 224418 35% 1165762.415 1575831.727
22429375 19309040 3120335 16% 26053955.19 30264266.43
Current Liabilities
Current portion of non-current
liability 4831840 41686 4790154 11491% 560060398.8 64916812299
short term borrowing - secure 0 3900000 -3900000 -100% 0 0
short term running finance
under markup arrangements 3356591 5937374 -2580783 -43% 1897590.272 1072769.616
Customer security deposit 181977 184441 -2464 -1% 179545.9173 177147.3121
trade and other payables 9366805 9760897 -394092 -4% 8988624.294 8625712.471
Interest payable 263776 196345 67431 34% 354364.9096 476064.8776
18000989 20020743 -2019754 -10% 16184993.98 14552202.12
52,289,521 50,890,047 0% 52289521 52289521
Asset
Non-current asset
Tangible fix asset 31467872 21970957 9496915 43% 45069815.04 64551178.66
property plant & equip 2351556 11549623 -9198067 -80% 478787.5432 97483.33084
Capital WIP 33819428 33520580 298848 1% 34120940.34 34425140.77

Intangible asset 2392 7173 -4781 -67% 797.6668061 266.0001394

Goodwill 167546 167546 0 0% 167546 167546
Long term loan and advance 293304 236639 56665 24% 363537.8632 450589.7567

44
long term deposited and
payments 71368 98663 -27295 -28% 51624.12884 37342.37584

Current Assets
Stores and spares 1273538 1373239 -99701 -7% 1181075.572 1095326.175
Stock and trade 7925132 7979615 -54483 -1% 7871020.998 7817279.453
trade debts 346041 491842 -145801 -30% 243461.058 171289.78
current portion of long-term
loan and advances 55784 45735 10049 22% 68040.98953 82991.11315
Advance deposit pre-payment
and other receivable 7615923 6208184 1407739 23% 9342874.364 11461421.21
cash & bank balance 720065 760831 -40766 -5% 681483.2784 644968.7998
17936483 16859446 1077037 6% 19082324.67 20301366.49
Total Assets 52,289,521 50,890,047 52289521 52289521

45
 Compare the current Income Statement with the previous year, in terms of
amount changes and percentage changes, and forecast the next two years

Amt. % Amt.
change change change % change
2012- 2012- furcated 2014- 2014- forecast
2013 2012 2013 2013 2014 2013 2013 ed 2015
9401048 7783619. 1024967
Sales 86226869 79087696 7139173 9% 8.53 528 9% 28.2
6691994 4853870. 7215340
Cost of goods sold 62066072 57564265 4501807 8% 2.32 32 8% 9.03
2712133 2960534. 3044463
Gross profit 24160797 21523431 2637366 12% 1.71 709 12% 4.49
Distribution and 1310575 2374167. 1600516
selling expense 10731584 8787508 1944076 22% 1.39 386 22% 0.04
Administrative 2166083. 208140.3 2396350.
expense 1957943 1769803 188140 11% 339 388 11% 165
1199968 528419.5 1255245
Operating cost 11471270 10966120 505150 5% 9.54 359 5% 0.51
2442697. 329601.1 2823709.
Finance cost 2113096 1827969 285127 16% 171 711 16% 604
Other operating 1570043. 130266.1 1712095.
expense 1439777 1320319 119458 9% 156 56 9% 354
3942026. 419153.3 4411050.
3522873 3148288 374585 12% 325 248 12% 738
Other operating 236387.3 41822.32 287199.4
income 194565 160142 34423 21% 264 64 21% 865
8250234. 137272.0 8389828.
Profit before taxation 8112962 7977974 134988 2% 008 085 2% 671
2387271. 141072.4 2537204.
Taxation 2246199 2113463 132736 6% 482 817 6% 018
5869015. 2252.864 5871269.
Profit after taxation 5866763 5864511 2252 0% 865 779 0% 595
Earnings per share -
basic and diluted 12942.00 5.001933 12947.00
(rupees) 12937 12932 5 0% 193 189 0% 58

46
 Conclusion

Ratio analysis provides the efficiency of organization in term of profit and stability, all the result

of ratio shows that organization is working well and is in good condition, performance fluctuate

by the time but organization recover itself by performing well.

47