Financial Analysis of Pakistan Cables

Analysis of Financial Statements

Group Members:

Muhammad Abubakr

L1F13MCOM2017

Serial Number = 19

Hafiz Abdul Wahab Shahid

L1F13MCOM2014

Serial Number = 17

Mian Usman Ahmad

L1F13MCOM2015

Serial Number = 18

Abdul Hannan Butt

L1F13MCOM2022

Serial Number = 23

Mohammad Ahsan Khan

L1F13MCOM0085

Serial Number = 5

Section = A

Submitted To: Sir Khalid Mehmood Bajwa

Contents

Introduction of Pakistan Cables 4

Founder of Pakistan Cables 5

Background of Pakistan Cables 6

Vision Statement of Pakistan Cables 7

Mission Statement of Pakistan Cables 7

Achievements of Pakistan Cables 8

Income Statement Ratio Analysis 10

Balance Sheet Ratio Analysis 16

Hybrid Ratio Analysis 22

Earning Based Ratio Analysis 29

Cash Flow Ratio Analysis 36

Horizontal Analysis of Profit and Loss Account 43

Vertical Analysis of Profit and Loss Account 50

Horizontal Analysis of Balance Sheet 55

Vertical Analysis of Balance Sheet 60

Vertical Analysis of Changes in Owner’s Equity 73

Page 4 of 75

Introduction of Pakistan Cables

Pakistan Cables, the country's oldest and most reputable cable manufacturer, was established over

5 decades ago in 1953 under the sponsorship of BICC, UK and the Chinoy family. In the

subsequent five decades, Pakistan Cables has earned a reputation as a market leader in the industry

and a company that does not compromise on quality. Consequently, the company has gained a

position as being the premier cable manufacturer in the country. Pakistan Cables has been listed

on the Karachi Stock Exchange since 1955. In 2010 General Cable Corporation, a Fortune 500

company and global leader in cable manufacturing invested in Pakistan Cables by taking up a 25%

equity stake in the company. Pakistan Cables' manufacturing facilities and head office are located

in Karachi on an 11.5 acre site. This site also houses a 2MW co-generation power plant, which

allows the company to be self-reliant for its electricity needs. Pakistan Cables presently employs

over 400 people. It has regional office in Lahore and branch offices in Rawalpindi, Multan,

Abbottabad, Peshawar and Quetta. The company's distribution network covers more than 55 cities

and towns all over Pakistan. Pakistan Cables is engaged in the manufacture of wires, cables and

conductors in both copper and aluminum. In addition, Pakistan Cables also produces aluminum

sections for architectural applications under the brand name of Alum-Ex. The company has two

other product lines, namely PVC Compound and Copper Rod. Given its focus on quality, Pakistan

Cables continuously reviews and improves the effectiveness of its Quality Management System in

line with objectives of achieving higher productivity, uncompromising quality and maximum

customer satisfaction. Pakistan Cables was the first cable manufacturer and amongst the first 5

companies in Pakistan to be ISO 9001 certified. It has recently updated its certification to the ISO

9001:2008 version.

Pakistan Cables Limited is the country’s oldest cables manufacturer engaged in manufacturing of

wires and cables and other engineering products.

The Company was established in 1953 in collaboration with BICC, United Kingdom.

The Company manufactures General Wiring Cables in the range of 250/750 volts. These cables

manufactured in conformity with national and international standards that provides safety and

saving in electricity consumption because of the use of pure copper and cable grade PVC (Plastic

Compound Vanile).

Page 5 of 75

The Company provides overhead conductors to the utility companies WAPDA and KESC which

are manufactured from EC grade Aluminum Rod and Copper Rod.

PCL also manufactures telephone, intercom, coaxial cables and various types of special cables

which include air field lighting, control cables, etc.

Alum-Ex is the brand name under which Pakistan Cables manufactures aluminum sections for the

construction and architectural industry.

PCL has also set up a plant to manufacture High Conductivity Oxygen Free 8mm Copper Rod.

In 2010 / 11, Pakistan Cables had a total turnover of USD 46 million. The Company has been a

regular winner of the Karachi Stock Exchange’s Top 25 Companies Award, most recently winning

the award in 2004, 2006 & 2007. Pakistan Cables has also been recognized as a winner of the

Brands of the Year Award in 2007 & 2008. Protecting the health and safety of our people and

ensuring a healthy working environment is also of great importance to Pakistan Cables. The

Company is committed to working towards designing a workplace that minimizes work related

risks and occupational health and safety. Pakistan Cables also lays great stress on environment

protection. Plant operations are strictly controlled to maintain safe environment for workers, as

well as the surrounding community. Several measures have been taken to control pollution and to

maintain a clean, green and healthy environment. Pakistan Cables has also achieved in January

2011 certification for its HSE Management Systems conforming to ISO 14001:2004 EMS and

OHSAS 18001:2007.

Founder of Pakistan Cables

Mr. Amir. S. Chinoy is the founder of Pakistan cables limited. He was born in Bombay on 21st

September 1921. He migrated to Pakistan in 1948. He played a pioneering role in the

industrialization of Pakistan by introducing and establishing concerns in heavy chemicals (Pak

Chemical Limited), electrical cables (Pakistan Cables Limited) and galvanized steel pipes

(International Industries Limited). His commercial interests also extended to trading (representing

major European and American companies), contracting and distribution.

Page 6 of 75

Mr. Amir S. Chinoy was president of Sind Club (1973 ~ 75), Rotary Club (1968 ~ 69) and Steward

of the Karachi and Lahore Race Clubs. In his lifetime, he also wrote a book “The Chinoys”. He

passed away peacefully on 23rd Ramazan 1418.

Background of Pakistan Cables

Pakistan Cables history can be traced back to the early 20th Century with the formation of F.M.

Chinoy & Co. In 1904 F.M. Chinoy & Co. were appointed the sole agency for Shell Petrol in India

and by 1916 F.M. Chinoy & Co. had obtained the agency for Chevrolet. F.M. Chinoy & Co.

eventually expanded to include agencies for Armstrong Siddeley, Oakland, Pontiac, Lanchester

and Vauxhall. During this period F.M. Chinoy & Co. began operating The Bombay Garage in

Bombay and in a short span of time The Bombay Garage’s footprint expanded to cover most of

India.

After the Independence of Pakistan in August 1947, the founder of Pakistan Cables, Mr. Amir S.

Chinoy migrated across to Karachi. He established a number of businesses following his

migration, including Pak Chemicals, International Industries and Pakistan Cables.

Pakistan Cables, the country’s oldest and most reputable cable manufacturer, was established over

5 decades ago in 1953 as a joint venture with BICC. In the subsequent six decades, Pakistan

Cables has earned a reputation as a market leader and premier cable manufacturer in the country

and a company that does not compromise on quality. Pakistan Cables has been listed on the

Karachi Stock Exchange since 1955. In 2010 General Cable Corporation, a Fortune 500 company

and global leader in cable manufacturing invested in Pakistan Cables by taking up a 25% equity

stake in the company.

Pakistan Cables is an affiliate of General Cable, which is amongst the world’s largest cable

companies with revenue in 2011 of USD 5.8 billion. General Cable has a global presence with 57

plants in 26 countries including the US, Canada, France, Germany, Spain, Brazil, China, Thailand,

South Africa, and the Philippines.

The affiliation with General Cable gives Pakistan Cables several advantages over its competitors,

including the ability to source almost any type of cable for customers, access to cutting edge

technology, technical support & management best practices, procurement advantages and export

Page 7 of 75

opportunities. Hence Pakistan Cables is the only cable company in Pakistan with multinational

affiliation and product quality to match the best in the world.

Vision Statement of Pakistan Cables

The vision of Pakistan cable is to be the company of first choice for the customers and partners for

wire, cables and other engineering products. Pakistan cables vision is to be the best cables and

wires manufacturer and also remain best in the aluminum section/profiles. Pakistan cables set up

a plant to manufacture high conductivity oxygen free 8mm copper rod.

Mission Statement of Pakistan Cables

Pakistan cables mission statement is to strengthen company leadership in manufacturing and

marketing of wire and cables. To have a strong presence in engineering products market while,

retaining the options to participate in other profitable business.

Pakistan cables achieving consistent, long term financial growth and profitability for its

shareholders.

Attracting retaining and developing capable and dedicated employees who is turn contribute to the

growth of the company and shares its success.

Pakistan cables is to operate ethically while maximizing profits and satisfying customers “need

and stakeholders” interest.

The mission of Pakistan cables is also to assist in the socio-economic development of Pakistan by

being good corporate citizens. Pakistan cables is taking a long-term view of business relationships.

It is practicing the highest standards of integrity and professionalism.

Page 8 of 75

Achievements of Pakistan Cables

• 1973

In 1973 Pakistan cables awarded by the government of Pakistan they announced it is Top 25

Companies by the Karachi Stock Exchange.

• 1980

As we know Pakistan cables limited performed a very well job in last 7 years before. They

maintain their performance yet in 1980. Pakistan cables is Top 25 Companies by the Karachi

Stock Exchange.

• 1982

Corporate Excellence Award from Management Association of Pakistan (Awarded to the 6 Best

Managed Companies)

• 1983

Corporate Excellence Award from Management Association of Pakistan (Awarded to the 6 Best

Managed Companies)

• 1998

Achievement Award for outstanding performance by the President of Pakistan

• 2004

Top 25 Companies by the Karachi Stock Exchange (Position number 25)

• 2005

Consumer Choice Award for Best Electrical Wires & Cables

• 2006


Page 9 of 75

• 2006

Consumer Choice Award for Best Electrical Wires & Cables

• 2007


• 2007

Best Corporate Report from ICAP & ICMAP

• 2007 & 2008

Brands of the Year Award in the following categories

• 2009

Made operational a 2 MW gas-fired tri-generation power generating plant. Set up a new plant for

the manufacture of automobile cables. Received ISO 9001:2008 certification.

• 2010

General Cable Corporation, a Fortune 500 company and world leader in cable manufacturing made

an investment to take it 25% equity stake in Pakistan Cables.

• 2011

Received ISO 14001:2004 Certification Received OHSAS 18001:2007 Certification

• 2012

Achieved net sales of over Rs. 5 billion. Received Best Corporate Report Award from Joint

Committee of ICAP and ICMAP for the Year 2010.

• 2013

Celebrated 60 brilliant years!

Page 10 of 75

Income Statement Ratio Analysis

i. Gross Profit Ratio

Gross profit is calculated by deducting all the direct expenses or cost of goods sold from the sales.

Cost of goods sold include all the direct expenses that are incurred in manufacturing processes for

the conversion of raw material into finished goods for sales. The formula to calculate gross profit

is given below:

According to the available financial data of Pakistan Cables from the year (2010-2014) the gross

profit ratios are calculated below

2010 2011 2012 2013 2014

11%

13%

13%

11%

13%

= Gross Profit

Sales x 100

= 412,349

3,798,847 *100 =

519,615

4096391 *100 =

687595

5344571 *100 =

707017

6164555 *100 =

876876

6599512 *100

2010 2011 2012 2013 2014

Gross Profit Ratio 11% 13% 13% 11% 13%

5%

6%

7%

8%

9%

10%

11%

12%

13%

14%

15%

Gross Profit Ratio

Page 11 of 75

ii. Operating Profit Ratio

Operating profit is calculated by deducting all the direct and indirect expenses. Indirect expenses

include all the expenses which are incurred to sell the goods. The formula to calculate operating

profit is given below:

According to the available financial data of Pakistan Cables from the year (2010-2014) the

operating profit ratios are calculated below

2010 2011 2012 2013 2014

5%

6%

7%

6%

7%

= Operating Profit

Sales x 100

= 197708

3,798,847 *100 =

250673

4096391 *100 =

348442

5344571 *100 =

348999

6164555 *100 =

482011

6599512 *100

2010 2011 2012 2013 2014

Operating Profit Ratio 5% 6% 7% 6% 7%

2%

3%

4%

5%

6%

7%

8%

9%

Operating Profit Ratio

Page 12 of 75

iii. Net Profit Ratio

Net profit is calculated by deducting all the direct, indirect, interest cost/ finance cost and taxes.

The taxes are calculated on the basis of profit earned by the company in the year. The formula to

calculate net profit is given below:

According to the available financial data of Pakistan Cables from the year (2010-2014) the net

profit ratios are calculated below

2010 2011 2012 2013 2014

1%

4%

5%

4%

6%

= Net Profit

Sales x 100

= 52306

3,798,847 *100 =

146682

4096391 *100 =

240956

5344571 *100 =

266045

6164555 *100 =

391096

6599512 *100

2010 2011 2012 2013 2014

Net Profit Ratio 1% 4% 5% 4% 6%

0%

1%

2%

3%

4%

5%

6%

7%

8%

Net Profit Ratio

Page 13 of 75

iv. Interest Coverage Ratio

The interest coverage ratio represents that the company can pay finance cost up to 120% of the

interest which is paid by the company in a year. The formula to calculate interest coverage ratio

is given below:


interest coverage ratios are calculated below

2010 2011 2012 2013 2014

1.28

2.61

5.15

4.06

5.18

= EBIT

Interest Expense

= 197708

154484 =

250673

95932 =

348442

67704 =

348999

86042 =

482011

92984

2010 2011 2012 2013 2014

Interest Coverage Ratio 1.28 2.61 5.51 4.06 5.18

0

1

2

3

4

5

6

Interest Coverage Ratio

Page 14 of 75

v. Return on Equity Ratio

This ratio represents that the capital which was invested by the shareholders in a company and

the return they are getting on that investment. The formula to calculate return on equity ratio is

given below:

According to the available financial data of Pakistan Cables from the year (2010-2014) the return

on equity ratios are calculated below

2010 2011 2012 2013 2014

6%

6%

10%

11%

13%

= Earning after Tax and Preffereed Dividend

Shareholder Equity x 100

= 45506

718813 *100 =

85682

1373517 *100 =

139956

1460843 *100 =

176982

1549626 *100 =

222314

1648681 *100

2010 2011 2012 2013 2014

Return on Equity Ratio 6% 6% 10% 11% 13%

0%

2%

4%

6%

8%

10%

12%

14%

Return on Equity Ratio

Page 15 of 75

vi. Return on Capital Employed

This ratio gives the view that the capital which is employed by the company to conduct his

business. The capital employed is calculated by deducting the current liabilities from total assets.

The formula to calculate return on capital employed is given below:

According to the available financial data of Pakistan Cables from the year (2010-2014) the return

on capital employed ratios are calculated below

2010 2011 2012 2013 2014

11%

11%

15%

15%

19%

= EBIT

Capital Employed x 100

= 197708

1794199 *100 =

250673

2268665 *100 =

348442

2335145 *100 =

348999

2386809 *100 =

482011

2599841 *100

2010 2011 2012 2013 2014

Return on Capital Employed 6% 6% 10% 11% 13%

0%

2%

4%

6%

8%

10%

12%

14%

Return on Capital Employed Ratio

Page 16 of 75

Balance Sheet Ratio Analysis

i. Debt Ratio

This ratio show that how much an assets are owned by the long term debt or possess by financing.

Lets assume the answer to the ratio after calculation is 80%, so it means that out of 100%, 80% of

assets are on debts. The formula to calculate debt ratio is given below:

According to the available financial data of Pakistan Cables from the year (2010-2014) the debt

ratios are calculated below

2010 2011 2012 2013 2014

62%

46%

41%

38%

44%

= Total Debts

Total Assets x 100

= 2241291

3640949 ∗ 100 =

1902034

4364249 *100 =

1738410

3807776 ∗ 100 =

1526760

3679157 ∗ 100 =

1353712

3592066 ∗ 100

2010 2011 2012 2013 2014

Debt Ratio 62% 46% 41% 28% 44%

0%

10%

20%

30%

40%

50%

60%

70%

Debt Ratio

Page 17 of 75

ii. Shareholder Equity Ratio

This ratio give the idea that how much of the assets are possessed by the shareholder equity. Lets

assume the answer to the ratio after calculation is 80%, so it means that out of 100%, 80% of assets

are owned by the shareholders. The formula to calculate shareholder equity ratio is given below:


shareholder equity ratios are calculated below

2010 2011 2012 2013 2014

20%

36%

40%

43%

38%

= Equity

Total Assets x 100

= 718813

3640949 ∗ 100 =

1648681

4364249 *100 =

1373517

3807776 ∗ 100 =

1460843

3679157 ∗ 100 =

1549626

3592066 ∗ 100

2010 2011 2012 2013 2014

Shareholder Equity Ratio 20% 36% 40% 43% 48%

0%

10%

20%

30%

40%

50%

60%

Shareholder Equity Ratio

Page 18 of 75

iii. Debt Equity Ratio

This ratio gives the view that how much of your total liability side is representing the debts and

shareholder equity. Let’s assume the ratio is 3, so 3 plus 1 which is 4 is the total liability side, 3

representing the total debts and 1 representing the shareholder’s equity. The formula to calculate

debt equity is given below:


shareholder equity ratios are calculated below

2010 2011 2012 2013 2014

3.12

1.27

1.05

0.87

1.15

= Total Debts

Shareholders Equity

= 2241291

718813 =

1902034

1648681 =

1738410

1373517 =

1526760

1460843 =

1353712

1549626

2010 2011 2012 2013 2014

Debt Equity Ratio 3.12 1.27 1.05 0.87 1.15

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Debt Equity Ratio

Page 19 of 75

iv. Capital gearing ratio

This ratio give the information how much long term debts are included in capital employed. Capital

employed includes long term debts plus shareholder equity. Let’s assume the ratio is 0.20 it means

that if the capital employed is 100% then 20% are long term debts. The formula to calculate capital

gearing ratio is given below:

According to the available financial data of Pakistan Cables from the year (2010-2014) the capital

gearing ratios are calculated below

2010 2011 2012 2013 2014

0.35

0.13

0.11

0.09

0.08

= Non current liability

Capital employed

= 394541

1113354 =

137626

1786307 =

199299

1572816 =

182748

1643591 =

148455

1698081

2010 2011 2012 2013 2014

Capital Gearing Ratio 0.35 0.13 0.11 0.09 0.08

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

Capital Gearing Ratio

Page 20 of 75

v. Fixed asset turnover ratio

This ratio gives information about the contribution or return of fixed assets from the sales. Let’s

assume the ratio is 4%, it means that out of the total sales 1 asset is generating a contribution of

4%. The formula to calculate fixed asset turnover ratio is given below:

According to the available financial data of Pakistan Cables from the year (2010-2014) the fixed

asset turnover ratios are calculated below

2010 2011 2012 2013 2014

2.17

2.41

3.52

4.32

4.15

= Sales

Fixed asset

= 3798847

1752787 =

6599512

1591583 =

4096391

1698948 =

5344571

1518462 =

6164555

1428231

2010 2011 2012 2013 2014

Fixed Asset Turnover Ratio 2.17 2.41 3.52 4.32 4.15

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

Fixed Asset Turnover Ratio

Page 21 of 75

vi. Current ratio

This ratio can guide about the liquidity position of the business how much of the current asset are

line to pay off the current liabilities. Let’s assume the ratio 1.5 it means that there are 1.5 current

assets available to pay off the current liabilities. The formula to calculate current ratio is given

below:

According to the available financial data of Pakistan Cables from the year (2010-2014) the current

ratios are calculated below

2010 2011 2012 2013 2014

1.02

1.37

1.61

1.80

1.57

= Current assets

Current liabilities

= 1888162

1846750 =

2772666

1764408 =

2108828

1539111 =

2160695

1344012 =

2163835

1205257

2010 2011 2012 2013 2014

Current Ratio 1.02 1.37 1.61 1.80 1.57

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

Current Ratio

Page 22 of 75

Hybrid Ratio Analysis

i. Raw material turnover ratio

This ratio shows how many time the raw material are used in the manufacturing process. Let’s

assume the ratio is 5 it means 5% raw material are used in the manufacturing process in one time.

The formula to calculate raw material turnover is given below:

According to the available financial data of Pakistan Cables from the year (2010-2014) the raw

material turnover ratios are calculated below

2010 2011 2012 2013 2014

7.47

5.70

6.60

10.97

8.59

= Material purchased

Ending inventory

= 3360527

450039 =

5443517

634010 =

3553254

623230 =

4180135

633739 =

4738045

431790

2010 2011 2012 2013 2014

Raw Material Turnover Ratio 7.47 5.70 6.60 10.97 8.59

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Raw Material Turnover Ratio

Page 23 of 75

ii. Work-in-process turnover ratio

This ratio show how many time work-in-process inventory are converted into finished goods. Let’s

assume the ratio is 20 it means that 20% work-in-process are converted into finished goods. The

formula to calculate work in process turnover is given below:

According to the available financial data of Pakistan Cables from the year (2010-2014) the work

in process turnover ratios are calculated below

2010 2011 2012 2013 2014

19.05

19.34

21.11

18.70

23.43

= Cost of good manufactured

Ending inventory

= 3533284

185476 =

5886578

251211 =

3718588

192229 =

4584942

217210 =

5361784

286657

2010 2011 2012 2013 2014

Work in Process Turnover Ratio 19.05 19.34 21.11 18.70 23.43

0.00

5.00

10.00

15.00

20.00

25.00

Work in Process Turnover Ratio

Page 24 of 75

iii. Finished good turnover ratio

This ratio give the information that how many times finished goods inventory are converted into

sales. Let’s assume the ratio is 8 it means that 8 times finished goods converted into sales. The

formula to calculate finished good turnover is given below:


finished good turnover ratios are calculated below

2010 2011 2012 2013 2014

10.51

7.88

12.24

20.04

13.76

= Cost of good sold

Ending inventory

= 3386498

322249 =

5722636

415877 =

3576776

453858 =

4656976

380589 =

5457538

272355

2010 2011 2012 2013 2014

Finished Goods Turnover Ratio 10.51 7.88 12.24 20.04 13.76

0.00

5.00

10.00

15.00

20.00

25.00

Finished Goods Turnover Ratio

Page 25 of 75

iv. Account receivables turnover ratio

This ratio gives information about how many time sales are done on the credit basis. Let’s assume

the ratio is 15.00 it means that from your total sales, 15 times of sales are done on credit basis in a

year. The formula to calculate account receivables turnover is given below:

According to the available financial data of Pakistan Cables from the year (2010-2014) the account

receivables turnover ratios are calculated below

2010 2011 2012 2013 2014

5.97

8.59

7.47

7.02

6.42

= Net sales

Ending account receivables

= 3798847

636040 =

6599512

1028387 =

4096391

476898 =

5344571

715687 =

6164555

878367

2010 2011 2012 2013 2014

Account Receivable Turnover Ratio 5.97 8.59 7.47 7.02 6.42

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

Account Receivable Turnover Ratio

Page 26 of 75

v. Average collection period

This ratio show that how many days are required to collect the receivables. Let’s assume the ratio

is 61 days, it means that the company requires 61 days to collect the receivables. The formula to

calculate average collection period is given below:

According to the available financial data of Pakistan Cables from the year (2010-2014) average

collection period ratios are calculated below

2010 2011 2012 2013 2014

61.14

42.49

47.16

51.99

56.85

= 365

Average account receivables

= 365

5.97 =

365

6.42 =

365

8.59 =

365

7.74 =

365

7.02

2010 2011 2012 2013 2014

Average Collection Period 61 42 47 52 57

0

10

20

30

40

50

60

70

Average Collection Period

Page 27 of 75

vi. Account payable turnover ratio

This ratio gives information about how many time purchases are done on the credit basis. Let’s

assume the ratio is 15.00 it means that from your total purchases, 15 times of purchases are done

on credit basis in a year. The formula to calculate account payable turnover is given below:

According to the available financial data of Pakistan Cables from the year (2010-2014) the account

payable turnover ratios are calculated below

2010 2011 2012 2013 2014

15.00

96.80

15.05

86.16

19.89

= Net purchases

Ending account payable

= 3360527

224021 =

5443517

273729 =

3553254

36706 =

4180135

277784 =

4738045

54991

2010 2011 2012 2013 2014

Account Payable Turnover Ratio 15.00 96.80 15.05 86.16 19.89

0.00

20.00

40.00

60.00

80.00

100.00

120.00

Account Payable Turnover Ratio

Page 28 of 75

vii. Average payment period

This ratio helps management in how many days the account Payables are paid off. Let’s assume

the ratio is 40 days, it means that the company requires 40 days to pay off the payables. The

formula to calculate average payment period is given below:

According to the available financial data of Pakistan Cables from the year (2010-2014) average

payment period ratios are calculated below

2010 2011 2012 2013 2014

24.33

3.77

24.25

4.24

18.35

= 365

Average payable turnover

= 365

15.00 =

365

19.89 =

365

96.80 =

365

15.05 =

365

86.16

2010 2011 2012 2013 2014

Average Payment Period 24 4 24 4 18

0

5

10

15

20

25

30

Average Payment Period

Page 29 of 75

Earning based Ratio Analysis

i. Earnings per share

This ratio also called as net income per share that measures the amount of net income earned per

share of stock outstanding. Earnings per share is also a calculation that shows how profitable a

company is on a shareholder basis. The formula to calculate earnings per share is given below:

According to the available financial data of Pakistan Cables from the year (2010-2014) earnings

per share ratios are calculated below

2010 2011 2012 2013 2014

2.12

3.43

4.92

6.22

7.81

= Profit after tax and preferred dividend

Weighted average no.of ordinary shares

= 45506000

21462300 =

222314000

28462300 =

85682000

24962300 =

139956000

28462300 =

176982000

28462300

2010 2011 2012 2013 2014

Earning Per Share 2.12 3.43 4.92 6.22 7.81

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Earning Per Share

Page 30 of 75

ii. Price earnings ratio

This ratio calculates the market value of a stock relative to its earnings by comparing the market

price per share by the earnings per share. Earnings per share is also a calculation that shows how

profitable a company is on a shareholder basis. The formula to calculate price earnings ratio is given

below:

According to the available financial data of Pakistan Cables from the year (2010-2014) price

earnings ratios are calculated below

2010 2011 2012 2013 2014

25.47

13.41

8.74

9.97

13.06

= Market price per share

Earning per share

= 54

2.12 =

102

7.81 =

46

3.43 =

43

4.92 =

62

6.22

2010 2011 2012 2013 2014

Price Earning Ratio 25.47 13.41 8.74 9.97 13.06

0.00

5.00

10.00

15.00

20.00

25.00

30.00

Price Earning Ratio

Page 31 of 75

iii. Earning yield

This ratio shows that how much earnings are received for the money which has been spent on

investment, this ratio is useful when the dividend payments are low. The formula to calculate

earnings yield ratio is given below:

According to the available financial data of Pakistan Cables from the year (2010-2014) earning

yield ratios are calculated below

2010 2011 2012 2013 2014

0.04

0.07

0.11

0.10

0.08

= Earning per share

Market price per share

= 2.12

54 =

7.81

102 =

3.43

46 =

4.92

43 =

6.22

62

2010 2011 2012 2013 2014

Earning Yield 0.04 0.07 0.11 0.10 0.08

0.00

0.02

0.04

0.06

0.08

0.10

0.12

Earning Yield

Page 32 of 75

iv. Dividend per share

This ratio measures the percentage of net income that is distributed to shareholders in the form of

dividends during the year. The formula to calculate dividend per share is given below:

According to the available financial data of Pakistan Cables from the year (2010-2014) dividend

per shares ratios are calculated below

2010 2011 2012 2013 2014

2.25

1.13

2.00

3.25

4.00

= Total dividend

Total no.of ordinary shares

= 48290000

21462300 =

113850000

28462300 =

32194000

28462300 =

56925000

28462300 =

92503000

28462300

2010 2011 2012 2013 2014

Dividend Per Share 2.25 1.13 2.00 3.25 4.00

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

Dividend Per Share

Page 33 of 75

v. Dividend yield

This ratio measures the amount of cash dividends distributed to common shareholders relative to

the market value per share. The formula to calculate dividend yield is given below:


yield ratios are calculated below

2010 2011 2012 2013 2014

0.04

0.02

0.05

0.05

0.04

= Dividend per share

Market price per share *100

= 2.24

54 ∗ 100

= 4.00

102 * 100 =

1.13

46 *100 =

2.00

43 ∗ 100 =

3.25

62 * 100

2010 2011 2012 2013 2014

Dividend Yield 0.04 0.02 0.05 0.05 0.04

0.00

0.01

0.02

0.03

0.04

0.05

0.06

Dividend Yield

Page 34 of 75

vi. Dividend cover

This ratio states the number of times an organization is capable of paying dividends to shareholders

from the profits earned during an accounting period. The formula to calculate dividend cover is

given below:


cover ratios are calculated below

2010 2011 2012 2013 2014

0.95

3.04

2.46

1.91

1.95

= Earning per share

Dividend per share

= 2.12

2.24 =

7.81

4.00 =

3.43

1.13 =

4.92

2 =

6.22

3.25

2010 2011 2012 2013 2014

Dividend Cover 0.95 3.04 2.46 1.91 1.95

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Dividend Cover

Page 35 of 75

vii. Dividend payout ratio

This ratio measures the percentage of net income that is distributed to shareholders in form of

dividends during the year. In other words this ratio shows the portion of profits the company

decides to keep to fund operations and the portion of profit that is kept to be given to the

shareholders. The formula to calculate dividend payout is given below:


payout ratios are calculated below

2010 2011 2012 2013 2014

1.06

0.33

0.41

0.52

0.51

= Dividend per share

Earning per share∗ 100

= 2.24

2.12 =

4.00

7.81 =

1.13

3.43 =

2

4.92 =

3.25

6.22

2010 2011 2012 2013 2014

Dividend Payout Ratio 1.06 0.33 0.41 0.52 0.51

0.00

0.20

0.40

0.60

0.80

1.00

1.20

Dividend Payout Ratio

Page 36 of 75

Cash flow Ratio Analysis

i. Current liability coverage ratio

This ratio gives the information that the company can pay a short term or current liability from the

cash generated from operations. Operations include the routine activities of a business, in case the

answer is negative it means that the company has to obtain loan to pay off the current liabilities.

The formula to calculate current liability coverage is given below:

According to the available financial data of Pakistan Cables from the year (2010-2014) current

liability coverage ratios are calculated below

2010 2011 2012 2013 2014

(0.33)

(0.02)

0.33

0.02

(0.10)

= Cash flow from operation−Dividend paid

Current liabilities

= (562440)−48290

1846750 =

(63370)−113850

1764408 =

(4029)−32194

1539111 =

496821−56925

1344012 =

114493−92503

1205257

2010 2011 2012 2013 2014

Current Liability Coverage Ratio -0.33 -0.02 0.33 0.02 -0.10

-0.40

-0.30

-0.20

-0.10

0.00

0.10

0.20

0.30

0.40

Current Liability Coverage Ratio

Page 37 of 75

ii. Long term debt coverage ratio

This ratio of cash flow give the picture of paying the long term debts from the cash generated from

operations by deducting the dividends to their shareholders. If the answer is in negative then it

means that the company is not in a position to pay off their long term debts from cash. The formula

to calculate long term debt coverage is given below:

According to the available financial data of Pakistan Cables from the year (2010-2014) long term

debt coverage ratios are calculated below

2010 2011 2012 2013 2014

(1.55)

(0.18)

2.41

0.15

(1.29)

= Cash flow from operation−Dividend paid

Long term debts

= (562440)−48290

394541 =

(63370)−113850

137626 =

(4029)−32194

199299 =

496821−56925

182748 =

114493−92503

148455

2010 2011 2012 2013 2014

Long Term Debt Coverage Ratio -1.55 -0.18 2.41 0.15 -1.29

-2.00

-1.50

-1.00

-0.50

0.00

0.50

1.00

1.50

2.00

2.50

3.00

Long Term Debt Coverage Ratio

Page 38 of 75

iii. Interest coverage ratio

This ratio gives the company an idea whether they can cover the interest expenses from their cash

position or not. If the answer is negative then it means that the company is not in a position to pay

their interest from their routine business activities. The formula to calculate interest coverage ratio

is given below:

According to the available financial data of Pakistan Cables from the year (2010-2014) interest

coverage ratios are calculated below

2010 2011 2012 2013 2014

(1.52)

1.43

8.62

4.12

3.40

= Cash flow from operation+CPIIT

Cash payment for interest

= (562440)−298206

173545 =

(63370)+374707

91658 =

(4029)−32194

199299 =

496821−99326

69174 =

114493−241234

86422

2010 2011 2012 2013 2014

Interest Coverage Ratio -1.52 1.43 8.62 4.12 3.40

-4.00

-2.00

0.00

2.00

4.00

6.00

8.00

10.00

Interest Coverage Ratio

Page 39 of 75

iv. Asset efficiency ratio

This ratio shows the cash generated by using the assets of a company. If the answer is in negative

then it means that the company’s assets are not generating cash efficiently. The formula to

calculate asset efficiency ratio is given below:

According to the available financial data of Pakistan Cables from the year (2010-2014) asset

efficiency ratios are calculated below

2010 2011 2012 2013 2014

(0.15)

(0.00)

0.14

0.03

(0.01)

= Cash flow from operation

Total assets

= (562440)

3640949 =

(63370)

4364249 =

(4029)

3807776 =

496821

3679157 =

114493

3592066

2010 2011 2012 2013 2014

Asset Effiency Ratio -0.15 0.00 0.14 0.03 -0.01

-0.20

-0.15

-0.10

-0.05

0.00

0.05

0.10

0.15

0.20

Asset Effiency Ratio

Page 40 of 75

v. Cash generating power ratio

This ratio give the view that the cash balance present at the end, out of that during the year how

much of the cash is generated from operating activities because cash balance is calculated on the

basis of three categories operations, investing and financing. The formula to calculate cash

generating power ratio is given below:

According to the available financial data of Pakistan Cables from the year (2010-2014) cash

generating power ratios are calculated below

2010 2011 2012 2013 2014

(3.47)

(0.01)

0.89

0.75

(0.20)


Cash flow from operation+investing cash inflow+financing cash inflows

= (562440)

(562440)+5007+719715 =

(63370)

(63370)+4287+376590 =

(4029)

(4029)+6879+642847 =

496821

496821+62601 =

114493

114493+8648+30179

2010 2011 2012 2013 2014

Cash Generating Power Ratio -3.47 -0.01 0.89 0.75 -0.20

-4.00

-3.50

-3.00

-2.50

-2.00

-1.50

-1.00

-0.50

0.00

0.50

1.00

1.50

Cash Generating Power Ratio

Page 41 of 75

vi. Operations cash margin ratio

This ratio give the information how much sales are contributing towards the operating activities of

the business. The formula to calculate operations cash margin ratio is given below:

According to the available financial data of Pakistan Cables from the year (2010-2014) operations

cash margin ratios are calculated below

2010 2011 2012 2013 2014

(0.15)

(0.00)

0.09

0.02

(0.01)


Sales

= (562440)

3798847 =

(63370)

6599512 =

(4029)

4096391 =

496821

5344571 =

114493

6164555

2010 2011 2012 2013 2014

Operation Cash Margin Ratio -0.15 0.00 0.09 0.02 -0.01

-0.20

-0.15

-0.10

-0.05

0.00

0.05

0.10

0.15

Operation Cash Margin Ratio

Page 42 of 75

vii. Cash flow per share

This ratio give the information that how much the cash is generated from the single share. If the

answer is in negative then it indicates that the company is not in a position to pay the cash per

share. The formula to calculate operations cash flow per share ratio is given below:

According to the available financial data of Pakistan Cables from the year (2010-2014) cash flow

per share ratios are calculated below

2010 2011 2012 2013 2014

(0.03)

(0.00)

0.02

0.00

(0.00)


Weighted average shares outstanding common

= (562440)

21462300 =

(63370)

28462300 =

(4029)

24962300 =

496821

28462300 =

114493

28462300

2010 2011 2012 2013 2014

Cash Flow Per Share -0.03 0.00 0.02 0.00 0.00

-0.04

-0.03

-0.02

-0.01

0.00

0.01

0.02

0.03

Cash Flow Per Share

Page 43 of 75

Horizontal Analysis of Profit and Loss Account

The horizontal analysis of Pakistan cables profit and loss account is show below, along with the

increase and decrease between the 5 years.

In the first part of analysis, the Profit and loss account statement is analyzed by keeping the year

2010 as the base year.

First Year

2010 - 2011

Serial Income Statement Items Increase/Decrease

1 Net Sales 8%

2 Cost of Goods Sold 6%

3 Gross Profit 26%

4 Selling Cost 36%

5 Administrative Expenses 50%

6 Other Operating Expenses -53%

7 Operating Income 45%

8 Net Operating Income 156%

9 Finance Expenses -38%

10 Profit from Associates -13%

11 Profit before Tax 180%

12 Taxation 797%

13 Profit after Tax 88%

SalesCost of

Goods SoldGross Profit

OperatingProfit

Profit fromAssociates

FinanceExpenses

Tax Net Profit

Change 8% 6% 26% 156% -13% -38% 797% 88%

-100%

0%

100%

200%

300%

400%

500%

600%

700%

800%

900%

2010-2011

Page 44 of 75

Second Year

2010 - 2012


1 Net Sales 41%


3 Gross Profit 66%

4 Selling Cost 59%


6 Other Operating Expenses 62%






12 Taxation 1385%


SalesCost of


OperatingProfit


FinanceExpenses

Tax Net Profit

Change 41% 37% 66% 257% -10% -57% 1385% 207%

-200%

0%

200%

400%

600%

800%

1000%

1200%

1400%

1600%

2010-2012

Page 45 of 75

Third Year

2010 - 2013


1 Net Sales 62%


3 Gross Profit 71%

4 Selling Cost 88%








12 Taxation 1209%


SalesCost of


OperatingProfit


FinanceExpenses

Tax Net Profit

Change 62% 61% 71% 257% -64% -44% 1209% 288%

-200%

0%

200%

400%

600%

800%

1000%

1200%

1400%

2010-2013

Page 46 of 75

Fourth Year

2010 - 2014


1 Net Sales 73%


3 Gross Profit 112%

4 Selling Cost 77%








12 Taxation 2382%


SalesCost of


OperatingProfit


FinanceExpenses

Tax Net Profit

Change 73% 69% 122% 143% -77% -40% 2382% 388%

-500%

0%

500%

1000%

1500%

2000%

2500%

3000%

2010-2014

Page 47 of 75

In the second part of the analysis the Profit and Loss account statements are compared on yearly

basis, in this part there is no base year.

2011 - 2012


1 Net Sales 30%


3 Gross Profit 32%

4 Selling Cost 17%






10 Profit from Associates 3%

11 Loss on Investment 200%


13 Taxation 65%


SalesCost of


OperatingProfit


FinanceExpenses

Tax Net Profit

Change 30% 30% 32% 39% 3% -29% 65% 63%

-40%

-20%

0%

20%

40%

60%

80%

2011-2012

Page 48 of 75

2012 - 2013


1 Net Sales 15%

2 Cost of Goods Sold 175

3 Gross Profit 3%

4 Selling Cost 18%



7 Operating Income -3%


9 Finance Expenses 27%


11 Profit before tax 10%

12 Taxation -11%


SalesCost of


OperatingProfit


FinanceExpenses

Tax Net Profit

Change 15% 175% 3% 0% -62% 27% -11% 21%

-100%

-50%

0%

50%

100%

150%

200%

2012-2013

Page 49 of 75

2013 - 2014


1 Net Sales 7%


3 Gross Profit 24%

4 Selling Cost -6%





9 Finance Expenses 8%



12 Taxation 89%


SalesCost of


OperatingProfit


FinanceExpenses

Tax Net Profit

Change 7% 5% 24% 38% -32% 8% 89% 25%

-40%

-20%

0%

20%

40%

60%

80%

100%

2013-2014

Page 50 of 75

Vertical Analysis of Profit and Loss Account

The vertical analysis of Pakistan cables profit and loss account is show below, it also describes

that how much percentage of revenue represents the cost.

The Profit and loss account statement is analyzed from the year 2010-2014 separately.

Income Statement

2010

Revenue

Net sales 3798847 99.55%

Operating income 8077 0.20%

Profit from Associates 9082 0.30%

3816006 100.00%

Cost

Cost of Goods Sold -3386498 88.70%

Selling Cost -118590 3.10%

Administrative Expenses -67691 1.80%

Finance Expenses -154484 4.00%

Taxation -6800 1.20%

Net Profit 45506 1.20%

100.00%

89%

3%2%

4% 1%

1%

Revenue for 2010 = 100%

Cost of Good Sold

Selling Cost

Administrative Expenses

Finance Expenses

Taxation

Net Profit

Page 51 of 75

Income Statement

2011

Revenue

Net sales 4096391 99.50%



4116062 100.00%

Cost





Loss on Investment -16000 0.60%

Taxation -61000 1.50%

Net Profit 85682 2.10%

100.00%

87%

4%3%

2% 1%

1%

2%


Cost of Good Sold

Selling Cost


Finance Expenses

Loss on investment

Taxation

Net Profit

Page 52 of 75

Income Statement

2012

Revenue

Net sales 5344571 99.50%



5368523 100.00%

Cost





Loss on Investment -48000 0.90%

Taxation -101000 1.80%

Other operating Expenses -58993 1.00%

Net Profit 139956 2.80%

100.00%

87%

3%2%

1% 1% 2% 1%

3%


Cost of Good Sold

Selling Cost


Finance Expenses

Loss on investment

Taxation

Other Operating Expense

Net Profit

Page 53 of 75

Income Statement

2013

Revenue

Net sales 6164555 99.70%



6182898 100.00%

Cost






Taxation -89063 1.40%

Net Profit 176982 3.00%

100.00%

88%

4%

2%

0% 1%2%

3%


Cost of Good Sold

Selling Cost


Other Operating Expenses

Finance Expenses

Taxation

Net Profit

Page 54 of 75

Income Statement

2014

Revenue

Net sales 6599512 99.70%



6616561 100.00%

Cost






Taxation -168782 2.50%

Net Profit 222314 3.00%

100.00%

86%

3%

2%1%

2%

3%

3%


Cost of Good Sold

Selling Cost


Other Operating Expenses

Finance Expenses

Taxation

Net Profit

Page 55 of 75

Horizontal Analysis of Balance Sheet

The horizontal analysis of Pakistan cables balance sheet is shown below, along with the increase

and decrease between the 5 years.

In the first part of analysis, the balance sheet statement is analyzed by keeping the year 2010 as

the base year.

2010 2011 Increase/Decrease

Equity and Liabilities

Share Capital and Reserves

Share Capital 214,623 284,623 33%

Share Premium Reserve 527,800

General Reserves 455,000 471,500 4%

Unappropriated Profit 49,190 89,594 82%

718,813 1,373,517

Surplus on Revaluation of Land and

Building - Net of Tax

680,845 695,849 2%

Non - Current Liabilities

Long Term Loans 260,958 26,875 -90%

Deferred Liability for staff gratuity 18,224 21,103 16%

Other Long Term Employee Benefits 15,177 12,597 -17%

Deferred Tax Liability - Tax 100,182 138,724 38%

Total Non-Current Liabilities 394,541 199,299 -49%

Current Liabilities

Current portion of Long Term Loans 103,226 84,083 -19%

Trade and other Payables 508,894 481,990 -5%

Short Term Borrowings 1,214,652 964,655 -21%

Mark-up accrued on bank borrowings 19,978 8,383 -58%

Total Current Liabilities 1,846,750 1,539,111 -17%

Contingencies and Commitments

Total Equity and Liabilities 3,640,949 3,807,776 5%

Assets 2010 2011 Increase/Decrease

Non-Current Assets

Property, Plant and Equipment 1,625,394 1,581,533 -3%

Page 56 of 75

Investment in associates 123,200 111,877 -9%

Long Term Loans 1,928 3,085 60%

Long Term Security deposits 2,265 2,453 8%

Total Non-Current Assets 1,752,787 1,698,948 -3%

Current Assets

Stores and Spares 32,150 24,972 -22%

Stock in Trade 982,719 1,322,151 35%

Trade Debts 636,040 476,898 -25%

Short Term Loans and Advances 11,630 6,002 -48%

Short Term Deposits and Pre Payments 3,209 3,669 14%

Other Receivables 1,251 17,813 1324%

Advance Tax - Net of Provisions 210,769 215,493 2%

Cash and Bank Balances 10,394 41,830 302%

Total Currents Assets 1,888,162 2,108,828 12%

Total Assets 3,640,949 3,807,776 5%




Share Capital 214,623 284,623 33%




718,813 1,460,843



680,845 691,554 2%


Long Term Loans 260,958 3,125 -99%


Other Long Term Employee Benefits 15,177 14,555 -4%



Current Liabilities

Page 57 of 75


Trade and other Payables 508,894 768,664 51%







Non-Current Assets






Current Assets

Stores and Spares 32,150 26,953 -16%

Stock in Trade 982,719 1,246,909 27%

Trade Debts 636,040 715,687 13%

Short Term Loans and Advances 11,630 6,848 -41%



Advance Tax - Net of Provisions 210,769 147,655 -30%

Cash and Bank Balances 10,394 5,092 -51%


Total Assets 3,640,949 3,679,157 1%




Share Capital 214,623 284,623 33%

Page 58 of 75




718,813 1,549,626



680,845 688,728 1%


Long Term Loans 260,958


Other Long Term Employee Benefits 15,177 15,779 4%



Current Liabilities







Total Equity and Liabilities 3,640,949 3,592,066 -1%


Non-Current Assets






Current Assets

Stores and Spares 32,150 34,058 6%

Stock in Trade 982,719 1,011,004 3%

Trade Debts 636,040 878,367 38%

Short Term Loans and Advances 11,630 17,821 53%

Page 59 of 75



Advance Tax - Net of Provisions 210,769 178,936 -15%



Total Assets 3,640,949 3,592,066 -1%




Share Capital 214,623 284,623 33%




718,813 1,648,681 129%



680,845 813,534 19%


Long Term Loans 260,958


Other Long Term Employee Benefits 15,177 19,852 31%

Deferred Tax Liability - Tax 100,182 92,557 -8%


Current Liabilities

Current portion of Long Term Loans 103,226







Page 60 of 75


Non-Current Assets






Current Assets

Stores and Spares 32,150 52,281 63%

Stock in Trade 982,719 1,324,291 35%

Trade Debts 636,040 1,028,387 62%

Short Term Loans and Advances 11,630 31,334 169%



Advance Tax - Net of Provisions 210,769 257,272 22%



Total Assets 3,640,949 4,364,249 20%

Vertical Analysis of Balance Sheet

The vertical analysis of Pakistan cables balance sheet is show below, it also describes that how

much percentage the items represents the Liabilities and Assets.

The Balance Sheet Statement is analyzed from the year 2010-2014 separately.

- 2010

Equity and Liabilities Percentage


Share Capital 214,623 6%

Share Premium Reserve

General Reserves 455,000 12%

Unappropriated Profit 49,190 1%

Page 61 of 75

718,813

Surplus on Revaluation of Land and Building - Net of

Tax

680,845 19%


Long Term Loans 260,958 7%

Deferred Liability for staff gratuity 18,224 1%

Other Long Term Employee Benefits 15,177 0%

Deferred Tax Liability - Tax 100,182 3%

Total Non-Current Liabilities 394,541

Current Liabilities

Current portion of Long Term Loans 103,226 3%

Trade and other Payables 508,894 14%

Short Term Borrowings 1,214,652 33%

Mark-up accrued on bank borrowings 19,978 1%

Total Current Liabilities 1,846,750


Total Equity and Liabilities 3,640,949 100%

Assets 2010 Percentage

Non-Current Assets

Property, Plant and Equipment 1,625,394 45%

Investment in associates 123,200 3%


Long Term Security deposits 2,265 0%

Total Non-Current Assets 1,752,787

Current Assets

Stores and Spares 32,150 1%

Stock in Trade 982,719 27%

Trade Debts 636,040 17%

Short Term Loans and Advances 11,630 0%

Short Term Deposits and Pre Payments 3,209 0%

Other Receivables 1,251 0%

Advance Tax - Net of Provisions 210,769 6%

Cash and Bank Balances 10,394 0%

Page 62 of 75

Total Currents Assets 1,888,162

Total Assets 3,640,949 100%

6%

12%

1%

19%

7%1%

0%3%3%

14%

33%

1%

Total Equity and Liabilities = 100%

Share Capital

General Reserves

Unappropriated Profit

Surplus on Revaluation of Land and Building -Net of Tax

Long Term Loans

Deffered Liability for staff gratuity

Other Long Term Employee Benefits

Deffered Tax Liability - Tax

Current portion of Long Term Loans

Trade and other Payables

Short Term Borrowings

Mark-up accrued on bank borrowings

45%

3%

0%

0%1%

27%

18%

0%

0%

0%

6%

0%

Total Assets= 100%

Property, Plant and Equipment

Investment in associates

Long Term Loans

Long Term Security deposits

Stores and Spares

Stock in Trade

Trade Debts

Short Term Loans and Advances

Short Term Deposits and Pre Payments

Other Receivables

Advance Tax - Net of Provisions

Cash and Bank Balances

Page 63 of 75

2011




Share Premium Reserve 527,800 14%



1,373,517


Tax

695,849 18%







Current Liabilities



Short Term Borrowings 964,655 25%





Assets 2011

Percentage

Non-Current Assets






Page 64 of 75

Current Assets


Stock in Trade 1,322,151 35%









8%

14%

12%

2%

18%

1%1%0%

4%2%

13%

25%

0%

Total Liabilities= 100%

Share Capital


General Reserves


Surplus on Revaluation of Land and Building- Net of Tax

Long Term Loans






Page 65 of 75

2012







1,460,843


Tax

691,554 19%


42%

3%

0%

0%1%

35%

12%

0%

0%0%

6%

1%




Long Term Loans


Stores and Spares

Stock in Trade

Trade Debts



Other Receivables



Page 66 of 75






Current Liabilities








Assets 2012

Percentage

Non-Current Assets






Current Assets











Page 67 of 75

8%

14%

14%

4%

19%0%0%

0%4%1%

21%

15%

0%


Share Capital


General Reserves



Long Term Loans








41%

1%

0%

0%1%

34%

19%

0%

0%

0%

4%

0%

Total Assets= 100%



Long Term Loans


Stores and Spares

Stock in Trade

Trade Debts



Other Receivables



Page 68 of 75

2013







1,549,626


Tax

688,728 19%


Long Term Loans



Deferred Tax Liability – Tax 105,805 3%


Current Liabilities








Assets 2013

Percentage

Non-Current Assets






Page 69 of 75

Current Assets











8%

15%

16%

4%

19%1%

0%

3%

3%0%

16%

15%

0%


Share Capital


General Reserves



Long Term Loans








Page 70 of 75

2014







1,648,681

Surplus on Revaluation of Land and Building - Net of Tax 813,534 19%


Long Term Loans


39%

1%

0%

0%1%

28%

24%

1%

0%1%

5%

0%

Total Assets= 100%



Long Term Loans


Stores and Spares

Stock in Trade

Trade Debts



Other Receivables



Page 71 of 75




Current Liabilities








Assets 2014

Percentage Non-Current Assets






Current Assets



Trade Debts 1,028,387 24%








Page 72 of 75

6%

12%

14%

5%

19%

1%0%2%

20%

21%

0%


Share Capital


General Reserves









36%

0%

0%

0%1%30%

24%

1%

0%1%

6%

1%

Total Assets= 100%



Long Term Loans


Stores and Spares

Stock in Trade

Trade Debts



Other Receivables



Page 73 of 75

Vertical Analysis of Changes in Owner’s Equity

The vertical analysis of Pakistan cables changes in owners’ equity statement is show below. The

changes in owner’s equity statement is analyzed from the year 2010-2014 separately.

2010

Share

capital

General

reserves

Unappropriated

profit

Total

Balance as at 30 June 2009 214,623 436,000 67,618 718,241

Total comprehensive income for the year 45,508 45,508

Transactions with owners recorded directly in equity -

Final Cash Dividend for the year ended

(48,290) (48,290)

Transfer to General Reserve 19,000 (19,000)

Transfer from surplus on Revaluation of Building - Net

of Deferred Tax

3,356 3,356

Balance as at 30-June-2010 214,623 455,000 49,190 718,813

Trend analysis in percentage 30% 63% 7% 100%

2011

Share

capital

Share

premium

reserve

General

reserves

Unappropriated

profit

Total

Balance as at 30 June 2010 214,623 455,000 49,190 718,813


Transactions with owners recorded directly in equity -

Final Cash Dividend for the year ended

(32,194) (32,194)

Issuance of ordinary share of Rs.10 each @ share

premium of Rs.75.4 per share

70,000 527,800 597,800


Transfer from surplus on Revaluation of Building - Net

of deferred Tax

3,416 3,416

Balance as at 30-June-2011 284,623 527,800 471,500 89,594 1,373,517

Trend analysis in percentage 21% 38% 34% 7% 100%

Page 74 of 75

2012

Share

capital

Share

premium

reserve

General

reserve

Unappropriated

profit

Total

Balance as at 30 June 2011 284,623 527,800 471,500 89,594 1,373,517


Transactions with owners recorded directly in

equity - Final Cash Dividend for the year ended

(56,925) (56,925)


Transfer from surplus on Revaluation of Building -

Net of Deferred Tax

4,295 4,295



2013

Share

capital

Share

premium

reserve

General

reserve

Unappropriated

profit

Total





(92,503) (92,503)



Net of Deferred Tax

4,304 4,304



2014

Share

capital

Share

premium

reserve

General

reserve

Unappropriated

profit

Total





(113,850) (113,850)



Net of Deferred Tax

4,396 4,396



Page 75 of 75

Economy & Finance

Financial Analysis of Pakistan Cables