artistic denim financial report of 5 years

The company is public listed and started production in 1993 and persistently offering premium fabrics with unique colors, shades and garments with extensive array of washes.

Having head office and factory in Korangi Industrial Area, Karachi.

Mr. Faisal Ahmed. has been the Chief Executive Officer of Artistic Denim science 1993.

At present, he is serving as a member on the Board of Director. He received education from Ohio Univerticity, previously he worked in Fascom Network Service LTD.

Ceo

About Company

• Auditor: M/S Ernst and

Ford Rhodes Sidat Hyder Chartered accountants.

Share Registrar: M/s

Technology Trade (Pvt.) Ltd

Legal Adviser: Monawwer

Ghani Advocate

DUPONT ANALYSIS

DuPont Analysis also known as the DuPont identity, DuPont equation, DuPont Model or the DuPont method.

The Du Pont identity breaks down Return on Equity (that is, the returns that investors receive from the firm) into three distinct elements.

a) Profitability (Measured by Profit Margin)

b) Operating Efficiency (Measured by Asset Turnover)

c) Financial Leverage (Measured by Equity Multiplier)

DuPont Analysis

Return on Equity

Return on Equity = Net Profit Margine X Asset Turnover X Equity Multiplier

Return on Equity = Net Profit * Sales * AssetSales Asset Shareholders Equity

Return on Equity = Net Profit (or Profit after Tax)Shareholders Equity

2015 2014 2013 2012 2011

N.PMargin

0.106 0.13 0.12 0.81 0.072

Asset Turnover

0.92 0.85 1.02 0.92 0.81

Equity Multiplier

1.39 1.42 1.47 1.79 1.99

ROE 0.13 0.2 0.18 0.13 0.12

Altman z-score

Developed and enhanced in collaboration of professor Altman to:

• Made informed corporate leading decision.

• Manage account receivable more effectively.

• Select corporate equity and debt securities.

• Identify and manage corporate defaults and turnarounds.

The Z-score formula for predicting bankruptcy

was published in 1968 by Edward I. Altman, who was, at the time, an Assistant Professor of Finance at New York University.

The Z-Score Test lets you use statistical techniques to predict the likelihood of bankruptcy within the next two years.

Altman's test was developed using 66 companies, The test achieved an accuracy rate of 95%.

The financial ratios come directly from a company's financial statements.

Bankruptcy

Z-score Bankruptcymodel:

Z = 1.2T1 + 1.4T2 + 3.3T3 + 0.6T4 + .999T5

Where

T1 = (Current Assets − Current Liabilities) / Total Assets

T2 = Retained Earnings / Total Assets

T3 = Earnings Before Interest and Taxes / Total Assets

T4 = Equity / Total Liabilities

T5 = Sales/ Total Assets

Altman Guidelines

T1 = (Current Assets − Current Liabilities) / Total Assets

Year Calculations Percentage

2015 (2883781-1887718) / 7586987 13%

2014 (3260042-3695349) / 7623904 5%

2013 (2455205-1701194) / 5976468 24%

2012 (2477008-2144539) / 5912234 5%

2011 (2769251-2743575) / 6041132 5%

15

*All values in ‘000

T2 = Retained Earnings / Total Assets

Year Calculations Percentage

2015 4617000 / 7586987 6%

2014 3963000/ 7623904 5%

2013 4061000 / 5976468 6%

2012 3387000/ 5912234 5%

2011 3031000/6041132 5%

16

*All values in ‘000

T4 = Equity / Total Liabilities

Year Calculations Percentage

2015 5456653/ 2130334 2.5

2014 4802782/ 2821122 1.7

2013 4060715 / 1915753 2.1

2012 3387383 / 2524851 1.3

2011 3031237 / 3009895 1.0

17

*All values in ‘000

T5 = Sales/ Total Assets

Year Calculations Percentage

2015 6998644/7586987 0.92

2014 6467591/7623904 0.84

2013 6136793 / 5976468 1.03

2012 5451844/ 5912234 0.92

2011 4869120/6041132 0.81

18

*All values in ‘000

Z = 1.2T1 + 1.4T2 + 3.3T3 + 0.6T4 + .999T5

20151.2(0.13) + 1.4(0.608) + 3.3(0.114) + 0.6(2.56) + 0.999(0.922) 3.5

2014 1.2(0.05) + 1.4(0.52) + 3.3(0.12) + 0.6(1.702) + 0.999(0.84) 3.05

2013 1.2(0.2) + 1.4(0.06) + 3.3(0.15) + 0.6(2.1) + 0.999(1.03) 3.1

2012 1.2(0.05) + 1.4(0.05) + 3.3(0.11) + 0.6(1.3) + 0.999(0.92) 2.1

2011 1.2(0.05) + 1.4(0.05) + 3.3(0.09) + 0.6(1.0) + 0.999(0.81) 1.8

INDEX NUMBER trend

ANALYSIS

Index number trend:

“Index numbers are quantitative measure of growth of prices, production, inventory and other quantities of economic interest.”

It consists in expressing the aggregate price of all the commodities of the current year as a percentage of the aggregate price in the base year.

ρ01 = 𝒑𝟏

𝒑𝟎× 𝟏𝟎𝟎

Where,

P01 = index number of the current year.P1 = total of the current year price.P0 = total of the base year price.

Index number trend analysis :

Index number for 2015

ρ01 = 𝒑𝟏

𝒑𝟎× 𝟏𝟎𝟎 =

𝟕𝟓𝟖𝟔𝟗𝟖𝟕

𝟔𝟎𝟒𝟏𝟏𝟑𝟐× 𝟏𝟎𝟎 = 125.58

Its mean the index number in 2015 is 25.58% high than the base year.

Index number for 2014

ρ01 = 𝒑𝟏

𝒑𝟎× 𝟏𝟎𝟎 =

𝟕𝟔𝟐𝟑𝟗𝟎𝟒

𝟔𝟎𝟒𝟏𝟏𝟑𝟐× 𝟏𝟎𝟎 = 126.19

Its mean the index number in 2014 is 26.19% higher than the base year.

Index number for 2013

ρ01 = 𝒑𝟏

𝒑𝟎× 𝟏𝟎𝟎 =

𝟓𝟗𝟕𝟔𝟒𝟔𝟖

𝟔𝟎𝟒𝟏𝟏𝟑𝟐× 𝟏𝟎𝟎 = 98.92

Its mean the index number in 2014 is 1.07% higher than the base year.

Index number for 2012

ρ01 = 𝒑𝟏

𝒑𝟎× 𝟏𝟎𝟎 =

𝟓𝟗𝟏𝟐𝟐𝟑𝟒

𝟔𝟎𝟒𝟏𝟏𝟑𝟐× 𝟏𝟎𝟎= 97.86

Its mean the index number in 2014 is 2.13% higherthan the base year.

Index number for 2011

ρ01 = 𝒑𝟏

𝒑𝟎× 𝟏𝟎𝟎 =

𝟔𝟎𝟒𝟏𝟏𝟑𝟐

𝟔𝟎𝟒𝟏𝟏𝟑𝟐× 𝟏𝟎𝟎 = 1

BALANCE SHEET ANALYSIS*All values in ‘000

Index number for 2015

ρ01 = 𝑝1

𝑝0× 100 =

743546

𝟑𝟓𝟏𝟒𝟒𝟒× 100 = 211.58

Its mean the index number in 2015 is 111.58% lower than the previous year.

Index number for 2014

ρ01 = 𝑝1

𝑝0× 100 =

852497

𝟑𝟓𝟏𝟒𝟒𝟒× 100 = 242.56

Its mean the index number in 2014 is 142.56% higher than the previous year.

Index number for 2013

ρ01 = 𝑝1

𝑝0× 100 =

𝟕𝟒𝟕𝟒𝟒𝟎

𝟑𝟓𝟏𝟒𝟒𝟒× 100 = 212.67

Its mean the index number in 2014 is 112.67% higher than the previous year.

Index number for 2012

ρ01 = 𝑝1

𝑝0× 100 =

𝟒𝟒𝟎𝟎𝟗𝟐

𝟑𝟓𝟏𝟒𝟒𝟒× 100 = 125.22

Its mean the index number in 2014 is 25.22% higher than the previous year.

Index number for 2011

ρ01 = 𝑝1

𝑝0× 100 =

𝟑𝟓𝟏𝟒𝟒𝟒

𝟑𝟓𝟏𝟒𝟒𝟒× 100 = 1

PROFIT AND LOSS ACCOUNT

*All values in ‘000

CASH FLOW STATEMENTIndex number for 2015

ρ01 = 𝑝1

𝑝0× 100 =

9798

𝟏𝟎𝟒𝟏𝟔𝟏× 100 = 19.00

Its mean the index number in 2015 is 80.99% lower than the previous year.

Index number for 2014

ρ01 = 𝑝1

𝑝0× 100 =

170664

𝟏𝟎𝟒𝟏𝟔𝟏× 100 = 163.86

Its mean the index number in 2014 is 63.86% higher than the previous year.

Index number for 2013

ρ01 = 𝑝1

𝑝0× 100 =

𝟏𝟖𝟏𝟓𝟏

𝟏𝟎𝟒𝟏𝟔𝟏× 100 = 17.42

Its mean the index number in 2014 is 82.57% lower than the previous year.

Index number for 2012

ρ01 = 𝑝1

𝑝0× 100 =

𝟓𝟐𝟒𝟔𝟏

𝟏𝟎𝟒𝟏𝟔𝟏× 100 = 50.36

Its mean the index number in 2014 is 49.63% lower than the previous year.

Index number for 2011

ρ01 = 𝑝1

𝑝0× 100 =

𝟏𝟎𝟒𝟏𝟔𝟏

𝟏𝟎𝟒𝟏𝟔𝟏× 100=1

*All values in ‘000

COMMON SIZE ANALYSIS

A company financial statement that displays all items as percentages of a common base figure.

This type of financial statement allows for easy analysis between companies or between time periods of a company

Common size

BALANCE SHEET2015 2014 2013 2012 2011

Assets

Non current 61.11 57.24 58.81 58.01 54.07

Current 38.89 42.76 41.08 41.89 45.83

100 100 100 100 100

Equity and liabilities

Share capital and reserves

71.48 63 67.94 67.29 50.17

Non current liabilities

3.49 1.64 3.59 3.59 4.40

Current liabilities

24.79 35.36 28.46 28.46 45.41

100 100 100 100 100

*All values in percentages

COMMON SIZE ANALYSIS OF PROFIT AND LOSS ACCOUNT

*All values in ‘000

Cont.…

2013 2012 2011

Gross profit 1.511 1.85 2.11

Operating profit 1.236 1.50 1.66

Profit before taxation 1.03 1.12 1.12

Net profit for the year 3.77 4.47 4.89

*All values in percentages