Financial Analysis of Lucky Cements & Attock Cements

Financial Analysis of Lucky Cements & Attock Cements.

A Report By VISHAL & Group

A Report Submitted to

Sir Raghib Zafar

By:

Vishal-6774 Avinash-6356 Engineer Lal-5938



Table of contents



Acknowledgement

Raghib Zafar

First of all we would like to thank Almighty GOD who enabled me to work on this

report. Then, we would like to show gratitude to my Teacher Raghib zaidi who

guided me in every phrase and help me out to prepare this report and also want to

thank all of my friends and group members who support me to complete this report

on time.

Sir. Raghib zafar we tried our level best to fulfill the requirement of course

Introduction to Business Finance, throughout during this report we learned how

we can find out the financial position of company & also we come to know the

standard format & steps.

We hope this report fulfill the requirements of course INTRODUCTION TO

BUSINESS FINANCE.

Sincerely,

VISHAL-6774

Avinash-6356

Engineer Lal-5938



Letter of Transmittal

May 09, 2012

Introduction to Business Finance

Raghib Zaidi

KASBIT (S.M.C.H.S campus)

Karachi

Dear sir Raghib Zafar,

Subject: Group project on financial analysis

We feel enormous pleasure in presenting to you, the project report which is a part

of our course. We found this report truly challenging in many aspects, indeed very

interesting in relation to the various interpretational and engrossing exercises.

Writing this report is absolute learning experience for us.

This report is based on financial ratios of two companies comparing with the

industry average in which we have elaborate it in three levels profitability liquidity

& long term Solvency.

We have tried our best to complete this report to fulfill the course requirements.

Still, any explaining is needed, we would like to indebted. Kindly accept this



manageable effort of bringing forward our final project report and Data on the

above subject.

Yours Sincerely,

VISHAL-6774 Avinash-6356 Engineer lal-5938

Introduction

Company profile:

Lucky Cement Limited has been sponsored by Yunus Brothers Group (YB Group)

which is one of the largest business groups of the Country based in Karachi and

has grown up remarkably over the last 50 years. The YB Group is engaged in

diversified manufacturing activities including Textile, Spinning, Weaving,

Processing, Finishing, Stitching and Power Generation.



Company profile:

Attock Cement Pakistan Limited (ACPL) is a public limited company, listed on the

Karachi Stock Exchange since June 2002. Main business of the company is

manufacturing and sales of cement. ACPL, is part of the Pharaon Group, which in

addition to investment in cement industry has diversified stakes in Pakistan mainly

in the oil and gas sector, power and real estate sector.

Balance sheet of attock cement ltd





Common size income statement of attock cement ltd

Common-size Income Statement of Attock Cement Pakistan ltd.



Balance sheet of attock cement ltd





Common size income statement of attock cement ltd



BALANCE SHEET OF LUCKY CEMENT LTD.



Common size Income statement of lucky cement ltd.



Balance sheet of Lucky cement Ltd.



Common Size income statement of lucky cement ltd.



RATIOS OF attock CEMENT LTD

LIQUIDITY:

Attock Cement Pakistan Limited

RATIOS 2008 2009 2010 2011

Current Ratio 1.5 2.43 2.62 1.7

Quick Ratio 1.09 1.89 2.278 1.31

In these the current ratio show how much company’s assets can be quickly convert

in cash to pay current liability and in Quick ratio stands that if we deduct inventory

from current assets then how it can be easily can be cash to pay current liability.

LONG-TERM SOLVENCY:


RATIOS 2008 2009 2010 2011

Debt-equity Ratio 66.24% 45.94% 30.83% 33.53%

Debt to Assest 39.84% 31.48% 23.53% 25.12%

Equity to Assest 60.15% 68.52% 90.47% 74.88%

Average Collection Period 3.63 1.99 2.63 2.16

Inventory Turnover 9.49 9.44 15.59 12.61

Fixed Asset Turnover 1.15 2.05 1.82 1.6

These ratios are showing how much the company is taking risk and gearing the

business, and average collection period is showing in what time company collect

its credit sale amount and inventory turnover is showing how many times company

has sold its total inventory.



RATIOS OF ATTOCK CEMENT LTD.

PROFITABILITY:


RATIOS 2008 2009 2010 2011

Gross Profit Margin 22.28% 31.83% 25.53% 20.23%

Operating Profit Margin 16.57% 24.77% 19.12% 12.38%

Net Profit Margin 8.69% 17.54% 13.09% 8.00%

Return on Asset 7.41% 21.41% 12.96% 8.84%

Return on Equity 12.32% 31.25% 18.60% 11.80%

These ratios showing that if sales increase/decrease by certain percentage so how

much it affect on profits of company.



RATIOS OF LUCKY CEMENT LTD

LIQUIDITY:

LUCKY CEMENT LIMITED

RATIOS 2008 2009 2010 2011

Current Ratio 1.09 0.86 0.71 0.88

Quick Ratio 0.99 0.73 0.65 0.77

In these the current ratio show how much company’s assets can be quickly convert

in cash to pay current liability and in Quick ratio stands that if we deduct inventory

from current assets then how it can be easily can be cash to pay current liability.

LONG-TERM SOLVENCY:


RATIOS 2008 2009 2010 2011

Debt-equity Ratio 45.51% 39.43% 34.49% 32.61%

Debt to Assest 45.51% 39.44% 34.49% 32.61%

Equity to Assest 54.49% 60.56% 65.50% 67.39%

Average Collection Period 15.29 1.26 11.45 8.59

Inventory Turnover 17.76 13.8 27.15 13.86

Fixed Assest Turnover 0.86 0.65 0.78 0.82

These ratios are showing how much the company is taking risk and gearing the

business, and average collection period is showing in what time company collect



its credit sale amount and inventory turnover is showing how many times company

has sold its total inventory.

RATIOS OF LUCKY CEMENT LTD.

PROFITABILITY:


RATIOS 2008 2009 2010 2011

Gross Profit Margin 25.69% 37.26% 32.56% 33.48%

Operating Profit Margin 18.14% 27.41% 17.31% 19.84%

Net Profit Margin 15.79% 17.45% 12.80% 15.26%

Return on Assest 7.82% 11.97% 8.18% 9.64%

Return on Equity 14.35% 19.77% 12.50% 14.29%

These ratios showing that if sales increase/decrease by certain percentage so how

much it affect on profits of company.



Reference

www.lucky-cement.com/financialreports.htm

www.attockcement.com/accounts/AttockAnnualRep2011.pdf

http://www.lucky-cement.com/financialreports.htm

http://www.attockcement.com/accounts/AttockAnnualRep2011.pdf

Economy & Finance

Financial Analysis of Lucky Cements & Attock Cements