fauji cement by azzam jafar

Fauji Cement Company Limited

SUBMITTED TO:

Mr. Yasir Ghafoor

SUBMITTED BY:

Muhammad Azzam Jafar

Roll No. 126

BBA (Hons.) 8th Semester (2005-09)

Department Of Management Sciences

UNIVERSITY OF EDUCATION OKARA UNIVERSITY OF EDUCATION OKARA CAMPUSCAMPUS

Dedication

I dedicate this project to my Parents, Teachers and Friend.

3

ACKNOWLEDGEMENT

I humbly prostrate to Allah the almighty, the most benevolent and the most merciful for

showering his blessing on me throughout my live and especially during my final project.

It was He and the prayers of my parents, who gave me courage and will to complete my

project.

I owe a debt of sincere gratitude, heartiest obligation and appreciation to my worthy

teacher Sir Yasir Ghafoor for his guidance, insightful comments and valuable

suggestions.

I thank to my beloved parents and all of who prayed for me success and time and again

restored my confidence myself and help me in every possible way they could.

I want to pay my heartiest tribute to all friends for their consistent encouragement,

cooperation, inspiring guidance about the project. They helped me in times of troubles;

their love, support, devotion and sincerity have been admiration.

4

TABLE OF CONTENTS

Sr.No. Details Page No.

Executive Summary

Company Information

Company Introduction

Mission Statement

Vision Statement

Values

Pest Analysis

Financial Analysis

Balance Sheet (Trend Analysis)

Balance Sheet (Vertical Analysis)

Income Statement (Trend Analysis)

Income Statement (Vertical Analysis)

Ratio Analysis

SWOT Analysis

BCG Matrix

DU Pont Analysis

Conclusion

Recommendations

Annexure

5

EXECUTIVE SUMMARY

In this professional project analysis of Fauji Cement Company Limited is done in very

detail to check out current position, performance and progress of the company. To

measure these activities balance sheet (trend analysis), balance sheet (vertical analysis),

income statement (trend analysis), income statement (vertical analysis), ratio analysis, Du

Pont analysis, SWOT analysis and PEST analysis are performed that has explored the

real picture. At the end conclusion is made on the basis of these analysis. Then future

recommendations are made to improve company in every aspect.

Company Information

7

Board of Directors

Lt Gen Syed Arif Hasan, HI (M) (Retired) Chairman

Maj Gen Malik Iftikhar tikhar Khan, HI (M) (Retired) Chief Executive / MD

Mr. Qaiser Javed Director

Mr. Riyaz H. Bokhari, IFU Director

Brig Arif Rasul Qureshi, SI (M) (Retired) Director

Brig Rahat Khan, SI (M) (Retired) Director

Dr. Nadeem Inayat Director

Brig Liaqat Ali (Retired) Director

Brig Munawar Ahmed Rana, SI(M) (Retired) Director

Company Secretary:

Brig Shabbir Ahmed (Retired)

House No. 62, Khayaban-e-Iqbal (Margalla Road), F-7/2,

Islamabad - Pakistan

Tel: (051) 9221690

Fax: (051) 9221693

E-mail: [email protected]

Web Site: http: //www.fccl.com .pk

Chief Financial Officer:

Mr. Omer Ashraf

T el: (051) 2651762

8

Registered Office and Sales Department:

Ist Floor, Aslam Plaza,

60 Adam Jee Road, Sadar, Rawalpindi – Pakistan

Tel: (051) 5523836, 5528042, 5528960, 5528963-64

Fax: (051) 5528965-66

Factory:

Near Village Jhang, Tehsil Fateh Jang

District: Attock

Tel: 057-2538047-48, 2538138, 2538148 – 49

Fax: 057-2538025

Auditors:

M/s KPMG Taseer Hadi & Co,

Chartered Accountants

Fax No: (051) 2822671

Legal Advisors:

Farooq Law Associates, Advocates & Attorneys

Fax No: (051) 2272643

Registration & Shares Transfer Officer:

M/s CORPLINK (PVT) LIMITE D

Wings Arcade, 1-K, Commercial, Model Town, Lah ore

Ph No: 042-5839182, 588726 2

Fax No: 042-5869037

9

Introduction

Corporate Profile

A longtime leader in the cement manufacturing industry, Fauji Cement Company,

headquartered in Islamabad, operates a cement plant at Jhang Bahtar, Tehsil Fateh Jang,

and District Attock in the province of Punjab. The company has a strong and

longstanding tradition of service, reliability, and quality that reaches back more than 10

years. Sponsored by Fauji Foundation the Company was incorporated in Rawalpindi in

1992.

The cement plant operating in the Fauji Cement is one of the most efficient and best

maintained in the country and has an annual production capacity of 1.165 million tons of

cement. The quality Portland cement produced at this plant is the best in the Country and

is preferred the construction of highways, bridges, commercial and industrial complexes,

residential homes, and a myriad of other structures needing speedy strengthening bond,

fundamental to Pakistan's economic vitality and quality of life.

11

Mission Statement

FCCL while maintaining its leading position in quality of cement and through greater

market outreach will build up and improve its value addition with a view to ensuring

optimum returns to the shareholders.

13

Vision Statement

To transform FCCL into a role model cement manufacturing Company fully aware of

generally accepted principles of corporate social responsibilities engaged in nation

building through most efficient utilization of resources and optimally benefiting all stake

holders while enjoying public respect and goodwill.

15

Values

Customers

We listen to our customers and improve our product to meet their present and future

needs.

People

Our success depends upon high performing people working together in a safe and healthy

work place where diversity, development and team work are valued and recognized.

Accountability

We expect superior performance and results. Our leaders set clear goals and expectations,

are supportive and provide and seek frequent feed back.

Citizen Ship

We support the communities where we do business, hold ourselves to the highest

standards of ethical conduct and environment responsibility, and communicate openly

with FCCL people and the public.

Financial Responsibility

We are prudent and effective in the use of the resources entrusted to us.

17

Pest analysis

18

Political analysis

Political scenario of Pakistan has seen many important changes in recent years. Some

important events are as

o Controlled democracy

o Grass root democracy

o Stability in Government

o Accountability in all departments

o Participation of religious people in Government

o Enlightened moderate policy

o Front role in war against terrorism

o Better image in world

o Cut the roots of extremists

o Reformation regarding all important fields

All these changes have taken place in last 7 years and it has made Pakistan entirely a

changed country. Especially Pakistan role against extremism has brought it one of the

best appreciated countries of the world. On the other hand being the only Islamic country

which has nuclear deterrence it is leading the Muslim world. West wants Friendship with

it. Locally there is great stability in Government after 10 yeas of was between PPP and

PML. All these factors tell that now Pakistan is a good place as long as political issues

are concerned.

Economic analysis

19

Before year 1999, economy of Pakistan was at worst. Forex was very low and it has to

borrow even to repay loans. Debts were $38 billion. Economics indicators were showing

negative signs. But then change in Government brought many changes. Some positive

points are as under.

o Increase in GDP 6% per annum

o Increase in per capita income as 8%

o Increase in exports up to 12.5 billion dollars

o Forex reserve up to 13 billion dollars

o Privatization

o Boom in stock market

o IT sector development

o More than 1 billion dollars investment per year

Although economy of Pakistan is making rapid progress but there are problems of

expensive petrol and electricity, which increases the cost of goods. Over all economic

indicators are showing very positive signs and now it is an attractive market for all types

of international investors.

Situational analysis

Pakistani market has shown good movement towards all types of positive indicators.

Now interest rates are low, saving schemes are giving less profits, consumers banking is

at peaking, new jobs are being created by Government as well as foreign investment. All

these situations are calling for new and new opportunities and investors.

Technological analysis

20

Pakistan is considered as developing country. Although it is nuclear power yet it lacks

behind in other technologies. Now it has made good progress in digital revolution but still

it has to import heavy machinery from developed countries.

21


Fauji Cement Company LimitedBalance Sheet(Trend Analysis)

2004 2005 2006 2007 2008CURRENT ASSETS 100.00% 204.15% 274.93% 340.06% 921.58%Cash and bank balances 100.00% 306.01% 430.06% 214.69% 1919.91%Deposit accounts 100.00% 407.60% 580.74% 293.17% 2733.41%Current accounts 100.00% 121.17% 230.95% 94.01% 126.79%Collection accounts 100.00% 43.97% 0.00% 0.00% 0.00%Cash in hand 100.00% 485.19% 398.15% 329.63% 479.63%

Trend analysis

0.00%

500.00%

1000.00%

1500.00%

2000.00%

2500.00%

3000.00%

2004 2005 2006 2007 2008

Years

Perc

enta

ge

Cash and bank balances

Deposit accounts

Current accounts

Collection accounts

Cash in hand

22

CURRENT ASSETS

The amount of Current Assets in the year 2004 was Rs.574460 and it increases to

Rs.1172765 in the year 2005 with and increment of Rs.598305.

And the amount of Current Assets in the year 2005 was Rs.1172765 and it increases to

Rs.1579382 in the year 2006 with an increment of Rs.406617.


Rs.1953527 in the year 2007 with and increment of Rs.374145

The amount of Current Assets in the year 2007was Rs.1953527 and it increases to


And the amount Current Assets in the final year 2008 is Rs.5294083

The amount of Current Assets in the year 2004 was 100.00% .and it increases to 204.15%

in the year 2005 with an increment of 104.15%

And the amount of Current Assets in the year 2005 was 204.15% and it increases to

274.93% in the year 2006 with an increment of 70.78%

The amount of Current Assets in the year 2006 was 274.93% and it increases to 340.06%

in the year 2007 with and increment of 65.13%

The amount of Current Assets in the year 2007 was 340.06% and it increases to 921.58%

in the year 2008 with and increment of 581.52%

And the amount Current Assets in the final year 2008 is 921.58%.

Cash and Bank balances

The amount of Cash and bank balances in the year 2004 was Rs.197088 and it becomes

Rs.603110 in the year 2005 with an increment of Rs.197088




Rs.423133 in the year 2007 with a decrement of Rs.424457

23



And the amount of Cash and bank balances in the final year 2008 is Rs.3783909

The amount of Cash and bank balances in the year 2004 was 100.00% and it becomes





214.69% in the year 2007 with a decrement of 215.37%



And the amount of Cash and bank balances in the final year 2008 is 1919.91%

Deposit accounts

The amount of deposit accounts in the first year 2004 was Rs.137433 and it becomes


The amount of deposit accounts in the year 2005 was Rs.560117 and it becomes



Rs.402907 in the year 2007 with a Decrement of Rs.395215



And the amount of deposit accounts in the final year 2008 is Rs.37566611

The amount of deposit accounts in the first year 2004 was 100.00% and it becomes


The amount of deposit accounts in the year 2005 was 407.60% and it becomes 580.74%



in the year 2007 with a Decrement of 287.57%

24



And the amount of deposit accounts in the final year 2008 is 2733.41%

Current accounts

The amount of current accounts in the first year 2004 was Rs.21326 and it becomes

Rs.25840 in the year 2005 with increment of Rs.4514

The amount of current accounts in the year 2005 was Rs.25840 and it becomes Rs.49253

in the year 2006 with increment of Rs.23413


in the year 2007 with Decrement of Rs.29205

The amount of current account in the year 2007 was Rs.20048 and it becomes Rs.27039


And the amount of current accounts in the final year 2008 is Rs.27039

The amount of current accounts in the first year 2004 was 100.00% and it becomes

121.17% in the year 2005 with increment of 21.17%

The amount of current accounts in the year 2005 was 121.17% and it becomes 230.95%

in the year 2006 with increment of 109.78%

The amount of current accounts in the year 2006 was 230.95% and it becomes 94.01% in

the year 2007 with Decrement of 136.94%

The amount of current account in the year 2007 was 94.01% and it becomes 126.79% in

the year 2008 with increment of 32.78%

And the amount of current accounts in the final year 2008 is 126.79%

Collection accounts

The amount of current account in the first year 2004 was Rs.38275 and it becomes

Rs.16831 in the year 2005 with decrement of Rs.21444

And the amount of collection account in the up coming years 2006, 2007 and 2008 is

zero

25

The amount of current account in the first year 2004 was 100.00% and it becomes

43.97% in the year 2005 with decrement of 56.03%


0.00%

Cash in hand

The amount of cash in hand in the first year 2004 was Rs.54 and it becomes Rs.262 in the

year 2005 with increment of Rs.208

The amount of cash in hand in the year 2005 was Rs.262 and it becomes Rs.215 in the

year 2006 with decrement of Rs.47





And the amount of cash in hand in the final year 2008 is Rs.259

The amount of cash in hand in the first year 2004 was 100.00% and it becomes 485.19%


The amount of cash in hand in the year 2005 was Rs.485.19% and it becomes 398.15% in

the year 2006 with decrement of 87.04%

The amount of cash in hand in the year 2006 was 398.15% and it becomes 329.63% in




26

And the amount of cash in hand in the final year 2008 is 479.63%

Fauji Cement Company LimitedBalance Sheet (Trend Analysis)

2004 2005 2006 2007 2008Advances, Deposits, prepayments and other receivables: 100.00% 62.57% 95.59% 1167.06% 469.63%To suppliers 100.00% 53.31% 92.59% 2395.69% 45.59%To employees 100.00% 174.39% 365.03% 138.31% 550.78%Due from associated undertaking - unsecured 100.00% 99.82% 283.05% 0.00% 0.00%Deposits 100.00% 113.18% 142.04% 136.71% 436.94%Prepayments 100.00% 40.68% 93.69% 29.46% 37.39%Excise duty 100.00% 30.84% 0.00% 0.00% 0.00%

Trend analysis

0.00%

500.00%

1000.00%

1500.00%

2000.00%

2500.00%

3000.00%

2004 2005 2006 2007 2008

Years

Per

cent

age

To suppliers

To employees

Due from associatedundertaking - unsecured

Deposits

Prepayments

Excise duty

Advance tax -net

Sales tax refundable -net

Derivative foreign currencyoptions used as hedginginstrumentInterest accrued

Prepaid arrangement fee forloans

Margin on letters of credit

Other receivables-Considered goods

Others

27

Advances, Deposits, prepayments and other receivables:

The amount of advances, deposits, prepayments and other receivables in the first year

2004 was Rs.73583 and it becomes Rs.46041 in the year 2005 with decrement of

Rs.27542

The amount of advances, deposits, prepayments and other receivables in the year 2005

was Rs.46041 and it becomes Rs.70340 in the year 2006 with decrement of Rs.24299


was Rs.70340 and it becomes Rs.858758 in the year 2007 with increment of Rs.788418

The amount of cash in hand in the year 2007 was Rs.858758 and it becomes Rs.345567

in the year 2008 with decrement of Rs.513191

And the amount of Advances, Deposits, prepayments and other receivables in the final

year 2008 is Rs.345567


2004 was 100.00% and it becomes 62.57% in the year 2005 with decrement of 37.43%


was 62.57% and it becomes 95.59% in the year 2006 with increment of 33.02%






year 2008 is Rs.469.63%


2004 2005 2006 2007 2008TRADE DEBTS 100.00% 239.41% 56.88% 43.67% 60.12%Considered goods 100.00% 105.34% 114.41% 34.89% 0.00%Considered doubtful 100.00% 100.00% 100.00% 532.74% 309.38%

28

Secure-considered goods 100.00% 371.96% 0.00% 52.34% 119.55%Provision for doubtful debts 100.00% 100.00% 100.00% 532.74% 309.38%

Trend analysis

0.00%100.00%200.00%300.00%400.00%500.00%600.00%

2004 2005 2006 2007 2008

Years

Per

cent

age

TRADE DEBTS

Unsecured

Considered goods

Considered doubtful

Secure-considered goods

Less: Provision for doubtfuldebts

TRADE DEBTS

The amount of trade debts in the first year 2004 was Rs.44789 and it becomes Rs.107231








And the amount of trade debts in the final year 2008 is Rs.26927

The amount of trade debts in the first year 2004 was 100.00% and it becomes 239.41% in








29

And the amount of trade debts in the final year 2008 is 60.12%

Considered goods

The amount of considered goods in the first year 2004 was Rs.22266 and it becomes


The amount of considered goods in the year 2005 was Rs.23454 and it becomes Rs.25475




The amount of considered goods in the year 2007 was Rs.7769 and it becomes Rs.0 in the

year 2008

And the amount of considered goods in the final year 2008 is Rs.0

The amount of considered goods in the first year 2004 was 100.00% and it becomes


The amount of considered goods in the year 2005 was 105.34% and it becomes 114.41%


The amount of considered goods in the year 2006 was 114.41% and it becomes 34.89%

in the year 2007 with decrement of 79.52%

The amount of considered goods in the year 2007 was 34.89% and it becomes 0.00% in

the year 2008

And the amount of considered goods in the final year 2008 is 0.00%

Considered doubtful

The amount of considered doubtful in the first year 2004 was Rs.1567 and it becomes

Rs.1567 in the year 2005 and 2006.

The amount of considered doubtful in the year 2006 was Rs.1567 and it becomes Rs.8348




And the amount of considered doubtful in the final year 2008 is Rs.4848

30

The amount of considered doubtful in the first year 2004 was 100.00% and it becomes

100.00% in the year 2005 and 2006.

The amount of considered doubtful in the year 2006 was 100.00% and it becomes


The amount of considered doubtful in the year 2007 was 532.74% and it becomes


And the amount of considered doubtful in the final year 2008 is 309.38%


The amount of secure-considered goods in the first year 2004 was Rs.22523 and it

becomes Rs.83777 in the year 2005 with increment of Rs.61254.

The amount of secure-considered goods in the year 2005 was Rs.83777 and it becomes

Rs.0 in the year 2006.


Rs.26927 in the year 2008 with increment of Rs.15138.

And the amount of secure-considered goods in the final year 2008 is Rs.26927.

The amount of secure-considered goods in the first year 2004 was 100.00% and it

becomes 371.96% in the year 2005 with increment of 271.96%

The amount of secure-considered goods in the year 2005 was 371.96% and it becomes

0.00% in the year 2006.



And the amount of secure-considered goods in the final year 2008 is 119.55%

Provision for doubtful debts

31

The amount of provision for doubtful debts in the first year 2004 was Rs.1567 and it

becomes Rs.1567 in the year 2005 and 2006.

The amount of provision for doubtful debts in the year 2007 was Rs.8348 and it becomes

Rs.4848 in the year 2008 with decrement of Rs.3500.

And the amount of provision for doubtful debts in the final year 2008 is Rs.4848.

The amount of provision for doubtful debts in the first year 2004 was 100.00% and it

becomes 100.00% in the year 2005 and 2006.

The amount of provision for doubtful debts in the year 2007 was 532.74% and it becomes

309.38% in the year 2008 with decrement of 223.36

And the amount of provision for doubtful debts in the final year 2008 is 309.38%


2004 2005 2006 2007 2008STOCK IN TRADE 100.00% 90.80% 235.54% 297.58% 373.52%Raw and packing material 100.00% 121.32% 184.00% 157.19% 205.41%Work in process 100.00% 41.87% 337.42% 415.05% 549.44%Finished goods 100.00% 138.80% 125.74% 237.21% 248.67%

Trend analysis

0.00%

100.00%

200.00%

300.00%

400.00%

500.00%

600.00%

2004 2005 2006 2007 2008

Years

Per

cent

age STOCK IN TRADE

Raw and packing material

Work in process

Finished goods

STOCK IN TRADE

32

The amount of stock in trade in the first year 2004 was Rs.61600 and it becomes


The amount of stock in trade in the year 2005 was Rs.55931 and it becomes Rs.145090 in

the year 2006 with increment of Rs.89159.

The amount of stock in trade in the year 2006 was Rs.145090 and it becomes Rs.183309

in the year 2007 with increment of Rs.38219.



And the amount of stock in trade in the final year 2008 is Rs.230089.

The amount of stock in trade in the first year 2004 was 100.00% and it becomes 90.80%


The amount of stock in trade in the year 2005 was 90.80% and it becomes 235.54% in the

year 2006 with increment of 144.74%

The amount of stock in trade in the year 2006 was 235.54% and it becomes 297.58% in


The amount of stock in trade in the year 2007 was 297.58% and it becomes 373.52% in


And the amount of stock in trade in the final year 2008 is 373.52%


The amount of raw and packing material in the first year 2004 was Rs.15224 and it

becomes Rs.18469 in the year 2005 with increment of Rs.3245

The amount of raw and packing material in the year 2005 was Rs.18469 and it becomes






And the amount of raw and packing material in the final year 2008 is Rs.31271

33

The amount of raw and packing material in the first year 2004 was 100.00% and it


The amount of raw and packing material in the year 2005 was 121.32% and it becomes






And the amount of raw and packing material in the final year 2008 is 205.41%

Work in process

The amount of work in process in the first year 2004 was Rs.27761 and it becomes


The amount of work in process in the year 2005 was Rs.11624 and it becomes Rs.93671




The amount of work in process in the year 2007 was Rs.115221 and it becomes


And the amount of work in process in the final year 2008 is Rs.152529.

The amount of work in process in the first year 2004 was 100.00% and it becomes


The amount of work in process in the year 2005 was 41.87% and it becomes 337.42% in




34



And the amount of work in process in the final year 2008 is 549.44%

Finished goods

The amount of finished goods in the first year 2004 was Rs.18615 and it becomes


The amount of finished goods in the year 2005 was Rs.25838 and it becomes Rs.23407 in

the year 2006 with decrement of Rs.2431.





And the amount of finished goods in the final year 2008 is Rs.46289.

The amount of finished goods in the first year 2004 was 100.00% and it becomes


The amount of finished goods in the year 2005 was 138.80% and it becomes 125.74% in






And the amount of finished goods in the final year 2008 is 248.67%


2004 2005 2006 2007 2008STORES, SPARES AND LOOSE 100.00% 182.60% 248.68% 237.47% 459.77%

35

TOOLSStores 100.00% 149.83% 276.30% 86.30% 578.20%Spares 100.00% 206.65% 236.79% 333.02% 404.46%Loose tools 100.00% 114.73% 168.79% 175.80% 188.62%

Trend analysis

0.00%

200.00%

400.00%

600.00%

800.00%

2004 2005 2006 2007 2008

Years

Per

cent

age

STORES, SPARES ANDLOOSE TOOLS

Stores

Spares

Loose tools

STORES, SPARES AND LOOSE TOOLS

The amount of stores, spares and loose tools in the first year 2004 was Rs.197400 and it


The amount of stores, spares and loose tools in the year 2005 was Rs.360452 and it



becomes Rs.468769 in the year 2007 with decrement of Rs.22118.



And the amount of stores, spares and loose tools in the final year 2008 is Rs.907591.

The amount of stores, spares and loose tools in the first year 2004 was 100.00% and it


The amount of stores, spares and loose tools in the year 2005 was 182.60% and it



becomes 237.47% in the year 2007 with decrement of 11.21%

36



And the amount of stores, spares and loose tools in the final year 2008 is 459.77%

Stores

The amount of stores in the first year 2004 was Rs.71837 and it becomes Rs.107633 in


The amount of stores in the year 2005 was Rs.107633 and it becomes Rs.198485 in the

year 2006 with increment of Rs.90852.


year 2007 with decrement of Rs.136488.



And the amount of stores in the final year 2008 is Rs.415358.

The amount of stores in the first year 2004 was 100.00% and it becomes 149.83% in the


The amount of stores in the year 2005 was 149.83% and it becomes 276.30% in the year

2006 with increment of 126.47%


2007 with decrement of 190.00%



And the amount of stores in the final year 2008 is 578.20%

Spares

The amount of spares in the first year 2004 was Rs.118324 and it becomes Rs.244514 in


The amount of spares in the year 2005 was Rs.244514 and it becomes Rs.280183 in the


37





And the amount of spares in the final year 2008 is Rs.478579.

The amount of spares in the first year 2004 was 100.00% and it becomes 206.65% in the


The amount of spares in the year 2005 was 206.65% and it becomes 236.79% in the year





2008 with increment of 71.44

And the amount of spares in the final year 2008 is 404.46%

Loose tools

The amount of loose tools in the first year 2004 was Rs.7239 and it becomes Rs.8305 in




The amount of loose tools in the first year 2006 was Rs.12219 and it becomes Rs.12726





The amount of loose tools in the first year 2004 was 100.00% and it becomes 114.73% in


The amount of loose tools in the year 2005 was 114.73% and it becomes 168.79% in the


38




year 2008 with increment of 12.83%.



2004 2005 2006 2007 2008LONG TERM DEPOSITS 100.00% 127.35% 127.35% 127.35% 127.35%Islamabad Electric Supply Company Limited 100.00% 100.00% 100.00% 100.00% 100.00%Sui Northern Gas Pipelines Limited 100.00% 166.74% 166.74% 166.74% 166.74%

39

Balance Sheet

05000

100001500020000250003000035000400004500050000

2004 2005 2006 2007 2008

Years

Am

ou

nt

LONG TERM DEPOSITS

Islamabad Electric SupplyCompany Limited

Sui Northern Gas PipelinesLimited

LONG TERM DEPOSITS

The amount of long term deposits in the first year 2004 was Rs.36600 and it becomes

Rs.46611 in the year 2005, 2006, 2007 and 2008 with decrement of Rs.10011.

The amount of long term deposits in the first year 2004 was 100.00% and it becomes

127.35% in the year 2005, 2006, 2007 and 2008 with decrement of 27.35%

Islamabad Electric Supply Company Limited

The amount of Islamabad Electric Supply Company Limited in the year 2004, 2005,

2006, 2007 and 2008 was Rs.21600.


2006, 2007 and 2008 was 100.00%

40

Sui Northern Gas Pipelines Limited

The amount of Sui Northern Gas Pipelines Limited in the first year 2004 was Rs.15000

and it becomes Rs.25011 in the year 2005, 2006, 2007 and 2008 with increment of

Rs.10011.

The amount of Sui Northern Gas Pipelines Limited in the first year 2004 was 100.00%

and it becomes 166.74% in the year 2005, 2006, 2007 and 2008 with increment of

66.74%.


2004 2005 2006 2007 2008LONG TERM ADVANCES - Considered goods 100.00% 100.00% 90.00% 80.00%Sui Northern Gas Pipelines Limited 100.00% 90.00% Amount receivables within 12 months shown under current assets 100.00% 100.00%

Trend analysis

0.00%20.00%

40.00%60.00%80.00%

100.00%120.00%

2004 2005 2006 2007 2008

Years

Per

cent

age

LONG TERM ADVANCES -Considered goods


Less: Amount receivables within12 months shown under currentassets

41

LONG TERM ADVANCES - Considered goods

The amount of LONG TERM ADVANCES - Considered goods in the first year 2004

was Rs.0 and it becomes Rs.9000 in the year 2005 and 2006 with increment of Rs.9000.

The amount of LONG TERM ADVANCES - Considered goods in the year 2007 was

Rs.8100 and it becomes Rs.7200 in the year 2008 with decrement of Rs.900.

And the amount of long term advances-considered goods in the final year 2008 is

Rs.7200

The amount of LONG TERM ADVANCES - Considered goods in the year 2005 and



90.00% and it becomes 80.00% in the year 2008 with decrement of 10.00%

And the amount of long term advances-considered goods in the final year 2008 is 80.00%


The amount of Sui Northern Gas Pipelines Limited in the year 2004, 2005 and 2006 was

Rs.0 and it becomes Rs.9000 in the year 2007 with increment of Rs.9000.

And the amount of Sui Northern Gas Pipelines Limited in the final year 2008 is Rs.8100.

The amount of Sui Northern Gas Pipelines Limited in the year 2007 was 100.00% and it


And the amount of Sui Northern Gas Pipelines Limited in the final year 2008 is 90.00%.


2004 2005 2006 2007 2008FIXED ASSETS - Tangible: 100.00% 98.50% 96.49% 92.88% 150.27%Property, Plant and equipment 100.00% 98.50% 96.49% 92.88% 150.27%

42

Trend analysis

0.00%

50.00%

100.00%

150.00%

200.00%

2004 2005 2006 2007 2008

Years

Per

cent

age

FIXED ASSETS - Tangible:

Property, Plant and equipment

FIXED ASSETS – Tangible

The amount of fixed assets-tangible in the first year 2004 was Rs.4729254 and it


The amount of fixed assets-tangible in the year 2005 was Rs.4658272 and it becomes






And the amount of fixed assets-tangible in the final year 2008 is Rs.7106599.

The amount of fixed assets-tangible in the first year 2004 was 100.00% and it becomes


The amount of fixed assets-tangible in the year 2005 was 98.50% and it becomes 96.49%




The amount of fixed assets-tangible in the year 2007 was 92.88% and it becomes


And the amount of fixed assets-tangible in the final year 2008 is 150.27%

43


2004 2005 2006 2007 2008Total Assets 100.00% 105.30% 104.87% 108.30% 210.72%

Trend Analysis

0.00%

50.00%

100.00%

150.00%

200.00%

250.00%

2004 2005 2006 2007 2008

Years

Per

cen

tag

es

Total Assets

Total Assets

The amount of total assets in the first year 2004 was Rs.5910353 and it becomes


The amount of total assets in the year 2005 was Rs.6223788 and it becomes Rs.6198108

in the year 2006 with decrement of Rs.25680.





And the amount of total assets in the final year 2008 is Rs.12454493

The amount of total assets in the first year 2004 was 100.00% and it becomes 105.30% in


44

The amount of total assets in the year 2005 was 105.30% and it becomes 104.87% in the

year 2006 with decrement of 0.43%





And the amount of total assets in the final year 2008 is 210.72%


2004 2005 2006 2007 2008Trade and other payables: 100.00% 101.19% 154.54% 171.92% 181.01%Creditors 100.00% 100.70% 130.91% 179.11% 144.57%Accrued liabilities 100.00% 105.82% 100.07% 187.35% 275.43%Retention money 100.00% 97.36% 118.71% 110.79% 143.42%Security deposits 100.00% 113.82% 149.19% 153.37% 144.98%Advances from customers 100.00% 183.57% 254.07% 293.11% 178.82%Workers' (Profit) Participation Fund 100.00% 234.20% 103.84% 61.11%

45

Workers' Welfare fund 100.00% 157.67%

Trend analysis

0.00%

20000.00%

40000.00%

60000.00%

80000.00%

100000.00%

120000.00%

2004 2005 2006 2007 2008

Years

Pe

rce

nta

ge

Trade and other payables:

Creditors

Accrued liabilities

Retention money

Sesurity deposits

Advances from customers

Workers' (Profit)Participation FundWorkers' Welfare fund

Sales tax payable- net

Excise duty payable

Other liabilities

Compensated absences

Unclaimed dividend

Trade and other payables

The amount of trade and other payables in the first year 2004 was Rs.272476 and it


The amount of trade and other payables in the year 2005 was Rs.275718 and it becomes






And the amount of trade and other payables in the final year 2008 is Rs.493210

The amount of trade and other payables in the first year 2004 was 100.00% and it


The amount of trade and other payables in the year 2005 was 101.19% and it becomes




46



And the amount of trade and other payables in the final year 2008 is 181.01%

Creditors

The amount of creditors in the first year 2004 was Rs.45651 and it becomes Rs.45969 in


The amount of creditors in the year 2005 was Rs.45969 and it becomes Rs.59763 in the






And the amount of creditors in the final year 2008 is Rs.65997.

The amount of creditors in the first year 2004 was 100.00% and it becomes 100.70% in

the year 2005 with increment of .0.70%

The amount of creditors in the year 2005 was 100.70% and it becomes 130.91% in the






And the amount of creditors in the final year 2008 is 144.57%

Accrued liabilities

The amount of accrued liabilities in the first year 2004 was Rs.63425 and it becomes


The amount of accrued liabilities in the year 2005 was Rs.67119 and it becomes


47





And the amount of accrued liabilities in the final year 2008 is Rs.174692

The amount of accrued liabilities in the first year 2004 was 100.00% and it becomes


The amount of accrued liabilities in the year 2005 was 105.82% and it becomes 100.07%






And the amount of accrued liabilities in the final year 2008 is 275.43%

Retention money

The amount of retention money in the first year 2004 was Rs.10819 and it becomes


The amount of retention money in the year 2005 was Rs.10533 and it becomes Rs.12843






And the amount of retention money in the final year 2008 is Rs.15517

The amount of retention money in the first year 2004 was 100.00% and it becomes


The amount of retention money in the year 2005 was 97.36% and it becomes 118.71% in


48

The amount of retention money in the year 2006 was 118.71% and it becomes 110.79%


The amount of retention money in the year 2007 was 110.79% and it becomes 143.42%


And the amount of retention money in the final year 2008 is 143.42%

Security deposits

The amount of security deposits in the first year 2004 was Rs.25462 and it becomes


The amount of security deposits in the year 2005 was Rs.28982 and it becomes Rs.37986






And the amount of security deposits in the final year 2008 is Rs.36916.

The amount of security deposits in the first year 2004 was 100.00% and it becomes


The amount of security deposits in the year 2005 was 113.82% and it becomes 149.19%






And the amount of security deposits in the final year 2008 is 144.98%


The amount of advances from customers in the first year 2004 was Rs.23121 and it


49

The amount of advances from customers in the year 2005 was Rs.42444 and it becomes






And the amount of advances from customers in the final year 2008 is Rs.41344.

The amount of advances from customers in the first year 2004 was 100.00% and it


The amount of advances from customers in the year 2005 was 183.57% and it becomes






And the amount of advances from customers in the final year 2008 is 178.82%

Workers' (Profit) Participation Fund

The amount of Workers' (Profit) Participation Fund in the first year 2004 was Rs.0 and it


The amount of Workers' (Profit) Participation Fund in the year 2005 was Rs.39949 and it






And the amount of Workers' (Profit) Participation Fund in the final year 2008 is

Rs.24413.

50

The amount of Workers' (Profit) Participation Fund in the year 2005 was 100.00% and it






And the amount of Workers' (Profit) Participation Fund in the final year 2008 is 61.11%

Workers' Welfare fund

The amount of Workers' Welfare fund in the first three year 2004, 2005 and 2006 was


The amount of Workers' Welfare fund in the year 2007 was Rs.16085 and it becomes


The amount of Workers' Welfare fund in the year 2007 was 100.00% and it becomes


And the amount of Workers' Welfare fund in the final year 2008 is 157.67%

Fauji Cement Company LimitedBalance Sheet (Trend Analysis)2004 2005 2006 2007 2008

Habib Bank Limited 100.00% 65.29% 47.11% 28.93%MCB Bank Limited 100.00% 65.29% 47.11% 28.93%

United Bank Limited 100.00% 65.29% 47.11% 28.93%

51

Bank Al Falah Limited 100.00% 65.29% 47.11% 28.93%NIB Bank Limited 100.00% 61.40%

PICIC Commercial Bank Limited 100.00% 65.29% 0.00% 0.00%

Trend analysis

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

2004 2005 2006 2007 2008

Years

Per

cent

age

Loans from banking companies -Secured:

Habib Bank Limited

MCB Bank Limited

United Bank Limited

Bank Al Falah Limited

NIB Bank Limited

PICIC Commercial Bank Limited

Habib Bank Limited

The amount of Habib Bank Limited in the first year 2005 was Rs.916667 and it becomes


The amount of Habib Bank Limited in the year 2006 was Rs.598485 and it becomes




And the amount of Habib Bank Limited in the final year 2008 is Rs.265152.

The amount of Habib Bank Limited in the first year 2005 was 100.00% and it becomes


The amount of Habib Bank Limited in the year 2006 was 65.29% and it becomes 47.11%


52

The amount of Habib Bank Limited in the year 2007 was 47.11% and it becomes 28.93%


And the amount of Habib Bank Limited in the final year 2008 is 144.57%

MCB Bank Limited

The amount of MCB Bank Limited in the first year 2005 was Rs.916667 and it becomes


The amount of MCB Bank Limited in the year 2006 was Rs.598485 and it becomes




And the amount of MCB Bank Limited in the final year 2008 is Rs.265152.

The amount of MCB Bank Limited in the first year 2005 was 100.00% and it becomes


The amount of MCB Bank Limited in the year 2006 was 65.29% and it becomes 47.11%


The amount of MCB Bank Limited in the year 2007 was 47.11% and it becomes 28.93%


And the amount of MCB Bank Limited in the final year 2008 is 144.57%

United Bank Limited

The amount of United Bank Limited in the first year 2005 was Rs.458333 and it becomes


The amount of United Bank Limited in the year 2006 was 299243 and it becomes


The amount of United Bank Limited in the year 2007 was Rs.215909 and it becomes


And the amount of United Bank Limited in the final year 2008 is Rs.132576

53

The amount of United Bank Limited in the first year 2005 was 100.00% and it becomes


The amount of United Bank Limited in the year 2006 was 65.29% and it becomes


The amount of United Bank Limited in the year 2007 was 47.11% and it becomes


And the amount of United Bank Limited in the final year 2008 is 144.57%


The amount of Bank Al Falah Limited in the first year 2005 was Rs.458333 and it


The amount of Bank Al Falah Limited in the year 2006 was 299243 and it becomes


The amount of Bank Al Falah Limited in the year 2007 was Rs.215909 and it becomes


And the amount of Bank Al Falah Limited in the final year 2008 is Rs.132576

The amount of Bank Al Falah Limited in the first year 2005 was 100.00% and it becomes


The amount of Bank Al Falah Limited in the year 2006 was 65.29% and it becomes


The amount of Bank Al Falah Limited in the year 2007 was 47.11% and it becomes


And the amount of Bank Al Falah Limited in the final year 2008 is 144.57%

NIB Bank Limited

The amount of NIB Bank Limited in the year 2007 was Rs.129546 and it becomes


54

And the amount of NIB Bank Limited in the final year 2008 is Rs.79544.

The amount of NIB Bank Limited in the year 2007 was 100.00% and it becomes 61.40%


And the amount of NIB Bank Limited in the final year 2008 is 61.40%


The amount of PICIC Commercial Bank Limited in the first year 2005 was Rs.275000

and it becomes Rs.179545 in the year 2006 with decrement of Rs.95455

The amount of PICIC Commercial Bank Limited in the year 2006 was Rs.179545 and it

becomes 0 in the year 2007 and 2008.

The amount of PICIC Commercial Bank Limited in the first year 2005 was 100.00% and

it becomes 65.29% in the year 2006 with decrement of 34.71%

The amount of PICIC Commercial Bank Limited in the year 2006 was 65.29% and it



2004 2005 2006 2007 2008Loan from related party:

55

Fauji Foundation- Unsecured 100.00% 0.00% 0.00% 0.00%Amount payable within 12 months shown under current liabilities 100.00% 99.46% 99.46% 99.46%

Trend analysis B-S

0.00%

50.00%

100.00%

150.00%

2004 2005 2006 2007 2008

Years

Per

cent

age

Loan from related party:

Fauji Foundation- Unsecured

Less:amount payable within 12months shown under currentliabilities


The amount of Fauji Foundation- Unsecured in the year 2005 was Rs.50000 and it becomes Rs.0 in the years 2006, 2007 and 2008.

The amount of Fauji Foundation- Unsecured in the year 2005 was 100.00% and it becomes 0.00% in the years 2006, 2007 and 2008.


2004 2005 2006 2007 2008

56

Total Liabilities 100.00% 105.30% 104.87% 108.30% 210.72%

Trend Analysis

0.00%

50.00%

100.00%

150.00%

200.00%

250.00%

2004 2005 2006 2007 2008

Years

Pe

rce

nta

ge

s

Total Liabilities

Total Liabilities

The amount of Total Liabilities in the first year 2004 was Rs.3971219 and it becomes


The amount of Total Liabilities in the year 2005 was Rs.3774164 and it becomes






And the amount of Total Liabilities in the final year 2008 is Rs.3170512.

The amount of Total Liabilities in the first year 2004 was 100.00% and it becomes


The amount of Total Liabilities in the year 2005 was 105.30% and it becomes 104.87%




57



And the amount of Total Liabilities in the final year 2008 is 210.72%


58

Fauji Cement Company LimitedBalance Sheet (Vertical Analysis)

2004 2005 2006 2007 2008CURRENT ASSETS 9.72% 18.84% 25.48% 30.52% 42.51%Cash and bank balances 3.33% 9.69% 13.67% 6.61% 30.38%Deposit accounts 2.33% 9.00% 12.88% 6.29% 30.16%Current accounts 0.36% 0.42% 0.79% 0.31% 0.22%Collection accounts 0.65% 0.27% 0.00% 0.00% 0.00%Cash in hand 0.00% 0.00% 0.00% 0.00% 0.00%

Vertical analysis B-S

0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%

2004 2005 2006 2007 2008

Years

Per

cent

age

Cash and bank balances

Deposit accounts

Current accounts

Collection accounts

Cash in hand

Current Assets


Rs.1172765 in the year 2005 with and increment of Rs.598305.

And the amount of Current Assets in the year 2005 was Rs.1172765 and it increases to




The amount of Current Assets in the year 2007was Rs.1953527 and it increases to


And the amount Current Assets in the final year 2008 is Rs.5294083

59

The amount of Current Assets in the year 2004 was 9.72% .and it increases to 18.84% in

the year 2005 with and increment of 9.12%

And the amount of Current Assets in the year 2005 was 18.84% and it increases to

25.48%in the year 2006 with an increment of 6.64%

The amount of Current Assets in the year 2006 was 25.48% and it increases to 30.52% in


The amount of Current Assets in the year 2007 was 30.52 % and it increases to 42.51 in


And the amount Current Assets in the final year 2008 is 42.51%.

Cash and Bank balances






Rs.423133 in the year 2007 with a decrement of Rs.424457



And the amount of Cash and bank balances in the final year 2008 is Rs.3783909


9.69% in the year 2005 with an increment of6.36%




6.61% in the year 2007 with a decrement of 7.06%



And the amount of Cash and bank balances in the final year 2008 is 30.38%

60

Deposit accounts

The amount of deposit accounts in the first year 2004 was Rs.137433 and it becomes





Rs.402907 in the year 2007 with a Decrement of Rs.395215



And the amount of deposit accounts in the final year 2008 is Rs.37566611

The amount of deposit accounts in the first year 2004 was 2.33% and it becomes 9.00% in

the year 2005 with an increment of 6.67%

The amount of deposit accounts in the year 2005 was 6.00% and it becomes 12.88% in the

year 2006 with an increment of 6.88%


year 2007 with a decrement of 6.59%



And the amount of deposit accounts in the final year 2008 is 30.16%

Current accounts

The amount of current accounts in the first year 2004 was Rs.21326 and it becomes





in the year 2007 with Decrement of Rs.29205

The amount of current account in the year 2007 was Rs.20048 and it becomes Rs.27039


And the amount of current accounts in the final year 2008 is Rs.27039

61

The amount of current accounts in the first year 2004 was 0.36% and it becomes 0.42%


The amount of current accounts in the year 2005 was 0.42% and it becomes 0.79% in the


The amount of current accounts in the year 2006 was 0.79% and it becomes 0.31% in the


The amount of current account in the year 2007 was 0.31% and it becomes 0.22% in the


And the amount of current accounts in the final year 2008 is 0.22%

Collection accounts

The amount of current account in the first year 2004 was Rs.38275 and it becomes



zero

The amount of current account in the first year 2004 was 0.65% and it becomes 0.27% in



0.00%

Cash in hand

The amount of cash in hand in the first year 2004 was Rs.54 and it becomes Rs.262 in the








62

And the amount of cash in hand in the final year 2008 is Rs.259

The amount of cash in hand in the years 2004, 2005, 2006, 2007 and 2008 is 0.00%.


2004 2005 2006 2007 2008Advances, Deposits, prepayments and other receivables: 1.24% 0.74% 1.13% 13.42% 2.77%To suppliers 0.58% 0.29% 0.51% 12.74% 0.12%To employees 0.01% 0.01% 0.03% 0.01% 0.02%Due from associated undertaking - unsecured 0.02% 0.02% 0.05% 0.00% 0.00%Deposits 0.02% 0.02% 0.03% 0.03% 0.05%Prepayments 0.18% 0.07% 0.16% 0.05% 0.03%Excise duty 0.17% 0.05% 0.00% 0.00% 0.00%


0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

2004 2005 2006 2007 2008

Years

Per

cent

age

Advances, Deposits, prepaymentsand other receivables:To suppliers

To employees

Due from associated undertaking -unsecuredDeposits

Prepayments

Excise duty

Advance tax -net

Sales tax refundable -net

Derivative foreign currency optionsused as hedging instrumentInterest accrued

Prepaid arrangement fee for loans

Margin on letters of credit

Other receivables- ConsideredgoodsOthers

Advances, Deposits, prepayments and other receivables:

63


2004 was Rs.73583 and it becomes Rs.46041 in the year 2005 with decrement of

Rs.27542


was Rs.46041 and it becomes Rs.70340 in the year 2006 with decrement of Rs.24299


was Rs.70340 and it becomes Rs.858758 in the year 2007 with increment of Rs.788418

The amount of cash in hand in the year 2007 was Rs.858758 and it becomes Rs.345567



year 2008 is Rs.345567




was 0.74% and it becomes 1.13% in the year 2006 with decrement of 0.39%



The amount of cash in hand in the year 2007 was 13.42% and it becomes 2.77% in the



year 2008 is 2.77%


64

2004 2005 2006 2007 2008TRADE DEBTS 0.76% 1.72% 0.41% 0.31% 0.22%Considered goods 0.38% 0.38% 0.41% 0.12% 0.00%Considered doubtful 0.03% 0.03% 0.03% 0.13% 0.04%Secure-considered goods 0.38% 1.35% 0.00% 0.18% 0.22%Provision for doubtful debts -0.03% -0.03% -0.03% -0.13% -0.04%


-0.50%

0.00%

0.50%

1.00%

1.50%

2.00%

2004 2005 2006 2007 2008

Years

Per

cent

age

TRADE DEBTS

Unsecured

Considered goods

Considered doubtful


Less: Provision for doubtfuldebts

TRADE DEBT









And the amount of trade debts in the final year 2008 is Rs.26927

The amount of trade debts in the first year 2004 was 0.76% and it becomes 1.72% in the




65


year 2007 with decrement of 0.10



And the amount of trade debts in the final year 2008 is 0.22%

Considered goods

The amount of considered goods in the first year 2004 was Rs.22266 and it becomes






The amount of considered goods in the year 2007 was Rs.7769 and it becomes Rs.0 in the

year 2008

And the amount of considered goods in the final year 2008 is Rs.0

The amount of considered goods in the first year 2004 was 0.38% and it becomes 0.38%

in the year 2005






the year 2008

And the amount of considered goods in the final year 2008 is 0.00%

Considered doubtful

66

The amount of considered doubtful in the first year 2004 was Rs.1567 and it becomes

Rs.1567 in the year 2005 and 2006.





And the amount of considered doubtful in the final year 2008 is Rs.4848

The amount of considered doubtful in the year 2004, 2005 and 2006 was 0.03% and it


The amount of considered doubtful in the year 2007 was 0.13% and it becomes 0.04% in

the year 2008 with decrement of 0.09

And the amount of considered doubtful in the final year 2008 is 0.04%


The amount of secure-considered goods in the first year 2004 was Rs.22523 and it



Rs.0 in the year 2006.



And the amount of secure-considered goods in the final year 2008 is Rs.26927.

The amount of secure-considered goods in the first year 2004 was 0.38% and it becomes



0.00% in the year 2006.



And the amount of secure-considered goods in the final year 2008 is 0.22%

67

Provision for doubtful debts

The amount of provision for doubtful debts in the first year 2004 was Rs.1567 and it

becomes Rs.1567 in the year 2005 and 2006.

The amount of provision for doubtful debts in the year 2007 was Rs.8348 and it becomes


And the amount of provision for doubtful debts in the final year 2008 is Rs.4848.

The amount of provision for doubtful debts in the first year 2004 was 0.03% and it

becomes 0.13% in the year 2005, 2006 and 2007.

The amount of provision for doubtful debts in the year 2007 was 0.13% and it becomes


And the amount of provision for doubtful debts in the final year 2008 is 0.04%


68

Balance Sheet (Vertical Analysis)2004 2005 2006 2007 2008

STOCK IN TRADE 1.04% 0.90% 2.34% 2.86% 1.85%Raw and packing material 0.26% 0.30% 0.45% 0.37% 0.25%Work in process 0.47% 0.19% 1.51% 1.80% 1.22%Finished goods 0.31% 0.42% 0.38% 0.69% 0.37%


0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

2004 2005 2006 2007 2008

Years

Per

cent

age STOCK IN TRADE


Work in process

Finished goods

STOCK IN TRADE

The amount of stock in trade in the first year 2004 was Rs.61600 and it becomes


The amount of stock in trade in the year 2005 was Rs.55931 and it becomes Rs.145090 in






And the amount of stock in trade in the final year 2008 is Rs.230089.

The amount of stock in trade in the first year 2004 was 1.04% % and it becomes 0.90% in




69





And the amount of stock in trade in the final year 2008 is 1.85%


The amount of raw and packing material in the first year 2004 was Rs.15224 and it








And the amount of raw and packing material in the final year 2008 is Rs.31271

The amount of raw and packing material in the first year 2004 was 0.26% and it becomes








And the amount of raw and packing material in the final year 2008 is 0.25%

Work in process

70

The amount of work in process in the first year 2004 was Rs.27761 and it becomes






The amount of work in process in the year 2007 was Rs.115221 and it becomes


And the amount of work in process in the final year 2008 is Rs.152529

The amount of work in process in the first year 2004 was 0.47% and it becomes 0.19% in


The amount of work in process in the year 2005 was 0.19% and it becomes 1.51% in the






And the amount of work in process in the final year 2008 is 1.22%

Finished goods

The amount of finished goods in the first year 2004 was Rs.18615 and it becomes



the year 2006 with decrement of Rs.2431.





And the amount of finished goods in the final year 2008 is Rs.46289.

71

The amount of finished goods in the first year 2004 was 0.31% and it becomes 0.42% in


The amount of finished goods in the year 2005 was 0.42% and it becomes 0.38% in the






And the amount of finished goods in the final year 2008 is 0.37%


2004 2005 2006 2007 2008STORES, SPARES AND LOOSE TOOLS 3.34% 5.79% 7.92% 7.32% 7.29%Stores 1.22% 1.73% 3.20% 0.97% 3.34%Spares 2.00% 3.93% 4.52% 6.16% 3.84%Loose tools 0.12% 0.13% 0.20% 0.20% 0.11%


0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

2004 2005 2006 2007 2008

Years

Per

cent

age

STORES, SPARES ANDLOOSE TOOLS

Stores

Spares

Loose tools

STORES, SPARES AND LOOSE TOOLS

The amount of stores, spares and loose tools in the first year 2004 was Rs.197400 and it


72







And the amount of stores, spares and loose tools in the final year 2008 is Rs.907591.

The amount of stores, spares and loose tools in the first year 2004 was 3.34% and it


The amount of stores, spares and loose tools in the year 2005 was 5.79% and it becomes






And the amount of stores, spares and loose tools in the final year 2008 is 7.29%

Stores

The amount of stores in the first year 2004 was Rs.71837 and it becomes Rs.107633 in








And the amount of stores in the final year 2008 is Rs.415358.

The amount of stores in the first year 2004 was 1.22% and it becomes 1.73% in the year


73

The amount of stores in the year 2005 was 1.73% and it becomes 3.20% in the year 2006

with increment of 1.47%


with decrement of 2.23%



And the amount of stores in the final year 2008 is 3.34%

Spares

The amount of spares in the first year 2004 was Rs.118324 and it becomes Rs.244514 in









The amount of spares in the first year 2004 was 2.00% and it becomes 3.93%in the year


The amount of spares in the year 2005 was 3.93% and it becomes 4.52% in the year 2006





with decrement of 2.32%


Loose tools

74










The amount of loose tools in the first year 2004 was 0.12% and it becomes 0.13% in the





year 2007





2004 2005 2006 2007 2008LONG TERM DEPOSITS 0.62% 0.75% 0.75% 0.73% 0.37%Islamabad Electric Supply Company Limited 0.37% 0.35% 0.35% 0.34% 0.17%Sui Northern Gas Pipelines Limited 0.25% 0.40% 0.40% 0.39% 0.20%

75


0.00%

0.20%

0.40%

0.60%

0.80%

2004 2005 2006 2007 2008

Years

Per

cent

age LONG TERM DEPOSITS

Islamabad Electric SupplyCompany Limited


LONG TERM DEPOSITS

The amount of long term deposits in the first year 2004 was Rs.36600 and it becomes

Rs.46611 in the year 2005, 2006, 2007 and 2008 with decrement of Rs.10011.

The amount of long term deposits in the first year 2004 was 0.62% and it becomes 0.75%

in the year 2005, 2006 with increment of 0.13%





Islamabad Electric Supply Company Limited


2006, 2007 and 2008 was Rs.21600.


in the year 2005, 2006 with decrement of 0.02%





76


The amount of Sui Northern Gas Pipelines Limited in the first year 2004 was Rs.15000

and it becomes Rs.25011 in the year 2005, 2006, 2007 and 2008 with increment of

Rs.10011.

The amount of Sui Northern Gas Pipelines Limited in the first year 2004 was 0.25% and

it becomes 0.40% in the year 2005, 2006 with increment of 0.15%






2004 2005 2006 2007 2008LONG TERM ADVANCES - Considered goods 0.00% 0.14% 0.15% 0.13% 0.06%Sui Northern Gas Pipelines Limited 0.00% 0.00% 0.00% 0.14% 0.07%Less: Amount receivables within 12 months shown under current assets 0.00% 0.00% 0.00% -0.01% -0.01%


-0.05%

0.00%

0.05%

0.10%

0.15%

0.20%

2004 2005 2006 2007 2008

Years

Per

cen

tag

e

LONG TERM ADVANCES -Considered goods


Less: Amount receivables within12 months shown under currentassets

77

LONG TERM ADVANCES - Considered goods

The amount of LONG TERM ADVANCES - Considered goods in the first year 2004

was Rs.0 and it becomes Rs.9000 in the year 2005 and 2006 with increment of Rs.9000.


Rs.8100 and it becomes Rs.7200 in the year 2008 with decrement of Rs.900.

And the amount of long term advances-considered goods in the final year 2008 is

Rs.7200


0.00% and it becomes 0.14% in 2005 with increment of 0.14%


0.14% and it becomes 0.15% in the year 2006 with increment of 0.01%

And the amount of long term advances-considered goods in the year 2006 was 0.15% and

it becomes 0.13% in 2007 with decrement of 0.02%

And the amount of long term advances-considered goods in the year 2007 was 0.13% and

it becomes 0.06% in 2008 with decrement of 0.07%


The amount of Sui Northern Gas Pipelines Limited in the year 2004, 2005 and 2006 was


And the amount of Sui Northern Gas Pipelines Limited in the final year 2008 is Rs.8100.

The amount of Sui Northern Gas Pipelines Limited in the year 2007 was 0.14% and it


And the amount of Sui Northern Gas Pipelines Limited in the final year 2008 is 0.07%


78

2004 2005 2006 2007 2008FIXED ASSETS - Tangible: 80.02% 74.85% 73.62% 68.62% 57.06%Property, Plant and equipment 80.02% 74.85% 73.62% 68.62% 57.06%


0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

2004 2005 2006 2007 2008

Years

Per

cent

age

FIXED ASSETS - Tangible:

Property, Plant and equipment

FIXED ASSETS – Tangible

The amount of fixed assets-tangible in the first year 2004 was Rs.4729254 and it








And the amount of fixed assets-tangible in the final year 2008 is Rs.7106599.

The amount of fixed assets-tangible in the first year 2004 was 80.02% and it becomes






79



And the amount of fixed assets-tangible in the final year 2008 is 57.06%


2004 2005 2006 2007 2008Total Assets 100.00% 100.00% 100.00% 100.00% 100.00%

Vertical Analysis

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

2004 2005 2006 2007 2008

Years

Per

cen

tag

es

Total Assets

Total Assets

The amount of total assets in the first year 2004 was Rs.5910353 and it becomes






80



And the amount of total assets in the final year 2008 is Rs.12454493

The amount of total assets in the years 2004, 2005, 2006, 2007 and 2008 was 100.00%.


2004 2005 2006 2007 2008Trade and other payables: 4.61% 4.43% 6.79% 7.32% 3.96%Creditors 0.77% 0.74% 0.96% 1.28% 0.53%Accrued liabilities 1.07% 1.08% 1.02% 1.86% 1.40%Retention money 0.18% 0.17% 0.21% 0.19% 0.12%Security deposits 0.43% 0.47% 0.61% 0.61% 0.30%Advances from customers 0.39% 0.68% 0.95% 1.06% 0.33%Workers' (Profit) Participation Fund 0.00% 0.64% 1.51% 0.65% 0.20%Workers' Welfare fund 0.00% 0.00% 0.00% 0.25% 0.20%

81


0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

2004 2005 2006 2007 2008

Years

Per

cent

age

Trade and other payables:

Creditors

Accrued liabilities

Retention money

Sesurity deposits


Workers' (Profit)Participation FundWorkers' Welfare fund

Sales tax payable- net

Excise duty payable

Other liabilities

Compensated absences

Unclaimed dividendTrade and other payables

The amount of trade and other payables in the first year 2004 was Rs.272476 and it








And the amount of trade and other payables in the final year 2008 is Rs.493210

The amount of trade and other payables in the first year 2004 was 4.61% and it becomes






82



And the amount of trade and other payables in the final year 2008 is 3.96%

Creditors

The amount of creditors in the first year 2004 was Rs.45651 and it becomes Rs.45969 in








And the amount of creditors in the final year 2008 is Rs.65997.

The amount of creditors in the first year 2004 was 0.77% and it becomes 0.74% in the


The amount of creditors in the year 2005 was 0.74% and it becomes 0.96% in the year





2008 with decrement of 0.75%

And the amount of creditors in the final year 2008 is 0.53%

Accrued liabilities

The amount of accrued liabilities in the first year 2004 was Rs.63425 and it becomes




83





And the amount of accrued liabilities in the final year 2008 is Rs.174692

The amount of accrued liabilities in the first year 2004 was 1.07% and it becomes 1.08%


The amount of accrued liabilities in the year 2005 was 1.08% and it becomes 1.02% in






And the amount of accrued liabilities in the final year 2008 is 1.40%

Retention money

The amount of retention money in the first year 2004 was Rs.10819 and it becomes








And the amount of retention money in the final year 2008 is Rs.15517

The amount of retention money in the first year 2004 was 0.18% and it becomes 0.17% in


The amount of retention money in the year 2005 was 0.17% and it becomes 0.21% in the


84





And the amount of retention money in the final year 2008 is 0.12%

Security deposits

The amount of security deposits in the first year 2004 was Rs.25462 and it becomes








And the amount of security deposits in the final year 2008 is Rs.36916.

The amount of security deposits in the first year 2004 was 0.43% and it becomes 0.47%


The amount of security deposits in the year 2005 was 0.47% and it becomes 0.61% in the



year 2007.



And the amount of security deposits in the final year 2008 is 0.30%


The amount of advances from customers in the first year 2004 was Rs.23121 and it


85







And the amount of advances from customers in the final year 2008 is Rs.41344.

The amount of advances from customers in the first year 2004 was 0.39% and it becomes








And the amount of advances from customers in the final year 2008 is 0.33%

Workers' (Profit) Participation Fund

The amount of Workers' (Profit) Participation Fund in the first year 2004 was Rs.0 and it








And the amount of Workers' (Profit) Participation Fund in the final year 2008 is

Rs.24413.

86







And the amount of Workers' (Profit) Participation Fund in the final year 2008 is 0.20%

Workers' Welfare fund

The amount of Workers' Welfare fund in the first three year 2004, 2005 and 2006 was


The amount of Workers' Welfare fund in the year 2007 was Rs.16085 and it becomes


The amount of Workers' Welfare fund in the year 2007 was 0.25% and it becomes 0.20%


And the amount of Workers' Welfare fund in the final year 2008 is 0.20%


2004 2005 2006 2007 2008Habib Bank Limited 0.00% 14.73% 9.66% 6.75% 2.13%MCB Bank Limited 0.00% 14.73% 9.66% 6.75% 2.13%United Bank Limited 0.00% 7.36% 4.83% 3.37% 1.06%Bank Al Falah Limited 0.00% 7.36% 4.83% 3.37% 1.06%NIB Bank Limited 0.00% 0.00% 0.00% 2.02% 0.64%PICIC Commercial Bank Limited 0.00% 4.42% 2.90% 0.00% 0.00%

87


0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

2004 2005 2006 2007 2008

Years

Per

cent

age

Long term financing:

Loans from banking companies -Secured:

Habib Bank Limited

MCB Bank Limited

United Bank Limited


NIB Bank Limited


Habib Bank Limited

The amount of Habib Bank Limited in the first year 2005 was Rs.916667 and it becomes






And the amount of Habib Bank Limited in the final year 2008 is Rs.265152.

The amount of Habib Bank Limited in the first year 2005 was 14.73% and it becomes


The amount of Habib Bank Limited in the year 2006 was 9.66% and it becomes 6.75% in


The amount of Habib Bank Limited in the year 2007 was 6.75% and it becomes 2.13% in


And the amount of Habib Bank Limited in the final year 2008 is 2.13%

MCB Bank Limited

The amount of MCB Bank Limited in the first year 2005 was Rs.916667 and it becomes


88





And the amount of MCB Bank Limited in the final year 2008 is Rs.265152.

The amount of MCB Bank Limited in the first year 2005 was 14.73% and it becomes


The amount of MCB Bank Limited in the year 2006 was 9.66% and it becomes 6.75% in


The amount of MCB Bank Limited in the year 2007 was 6.75% and it becomes 2.13% in


And the amount of MCB Bank Limited in the final year 2008 is 2.13%

United Bank Limited

The amount of United Bank Limited in the first year 2005 was Rs.458333 and it becomes


The amount of United Bank Limited in the year 2006 was 299243 and it becomes


The amount of United Bank Limited in the year 2007 was Rs.215909 and it becomes


And the amount of United Bank Limited in the final year 2008 is Rs.132576

The amount of United Bank Limited in the first year 2005 was 7.36% and it becomes


The amount of United Bank Limited in the year 2006 was 4.83% and it becomes 3.37%


The amount of United Bank Limited in the year 2007 was 3.37% and it becomes 1.06%


And the amount of United Bank Limited in the final year 2008 is 1.06%

89


The amount of Bank Al Falah Limited in the first year 2005 was Rs.458333 and it


The amount of Bank Al Falah Limited in the year 2006 was 299243 and it becomes


The amount of Bank Al Falah Limited in the year 2007 was Rs.215909 and it becomes


And the amount of Bank Al Falah Limited in the final year 2008 is Rs.132576

The amount of Bank Al Falah Limited in the first year 2005 was 7.36% and it becomes


The amount of Bank Al Falah Limited in the year 2006 was 4.83% and it becomes 3.37%


The amount of Bank Al Falah Limited in the year 2007 was 3.37% and it becomes 1.06%


And the amount of Bank Al Falah Limited in the final year 2008 is 1.06%

NIB Bank Limited

The amount of NIB Bank Limited in the year 2007 was Rs.129546 and it becomes


And the amount of NIB Bank Limited in the final year 2008 is Rs.79544.

The amount of NIB Bank Limited in the year 2007 was 2.02% and it becomes 0.64% in


And the amount of NIB Bank Limited in the final year 2008 is 0.64%


The amount of PICIC Commercial Bank Limited in the first year 2005 was Rs.275000

and it becomes Rs.179545 in the year 2006 with decrement of Rs.95455

90

The amount of PICIC Commercial Bank Limited in the year 2006 was Rs.179545 and it

becomes 0 in the year 2007 and 2008.

The amount of PICIC Commercial Bank Limited in the first year 2005 was 4.42% and it


The amount of PICIC Commercial Bank Limited in the year 2006 was 2.90% and it



2004 2005 2006 2007 2008Loan from related party:Fauji Foundation- Unsecured 0.00% 0.80% 0.00% 0.00% 0.00%amount payable within 12 months shown under current liabilities 0.00% -8.89% -8.87% -8.59% -4.42%


-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

2.00%

2004 2005 2006 2007 2008

Years

Per

cent

age

Loan from related party:


Less:amount payable within12 months shown undercurrent liabilities

91


The amount of Fauji Foundation- Unsecured in the year 2005 was Rs.50000 and it becomes Rs.0 in the years 2006, 2007 and 2008.

The amount of Fauji Foundation- Unsecured in the year 2005 was 0.80% and it becomes

0.00% in the years 2006, 2007 and 2008.

Fauji Cement Company LimitedBalance Sheet (Vertical Analysis)2004 2005 2006 2007 2008

Total Liabilities 100.00% 100.00% 100.00% 100.00% 100.00%

Vertical Analysis

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

2004 2005 2006 2007 2008

Years

Per

cen

tag

es

Total Liabilities

Total Liabilities

The amount of Total Liabilities in the first year 2004 was Rs.3971219 and it becomes


92







And the amount of Total Liabilities in the final year 2008 is Rs.3170512.

The amount of Total Liabilities in the first years 2004.2005, 2006, 2007 and 2008 is

100.00%

93


Fauji Cement Company LimitedIncome Statement (Trend Analysis)2004 2005 2006 2007 2008

Net Sales 100.00% 123.90% 186.66% 150.82% 154.42%

Trend Analysis

0.00%

50.00%

100.00%

150.00%

200.00%

2004 2005 2006 2007 2008

Years

Per

cen

tag

es

Net Sales

Net Sales

The amount of Net Sales in the year 2004 was Rs.2296231 and it increases to Rs.2845143

in the year 2005 with an increment of Rs.548912

And the amount of Net Sales in the year 2005 was Rs.2845143 and it increases to


The amount of Net Sales in the year 2006 was Rs.4286138 and it decreases to

Rs.3463283 in the year 2007 with and decrement of Rs.822855

The amount of Net Sales in the year 2007 was Rs.3463283 and it increases to


And the amount Net Sales in the final year 2008 is Rs.3545902.

94

The amount of Net Sales in the year 2004 was 100.00% .and it increases to 123.90% in


And the amount of Net Sales in the year 2005 was 123.90% and it increases to 186.66%


The amount of Net Sales in the year 2006 was 186.66% and it decreases to 150.82% in

the year 2007 with and decrement of 35.84%

The amount of Net Sales in the year 2007 was 150.82% and it increases to 154.42% in


And the amount Net Sales in the final year 2008 is 154.42%

Fauji Cement Company LimitedIncome Statement (Trend Analysis)

2004 2005 2006 2007 2008 Cost of sales 100.00% 113.38% 134.69% 152.49% 185.66%

Trend Analysis

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

140.00%

160.00%

180.00%

200.00%

2004 2005 2006 2007 2008

Yeas

Pe

rce

nta

ge

s

Cost of sales

95

Cost of sales

The amount of Cost of sales in the year 2004 was Rs.1555407 and it increases to


And the amount of Cost of sales in the year 2005 was Rs.1763567 and it increases to






And the amount Cost of sales in the final year 2008 is 2887790.

The amount of Cost of sales in the year 2004 was 100.00% .and it increases to 113.38%


And the amount of Cost of sales in the year 2005 was 113.38% and it increases to


The amount of Cost of sales in the year 2006 was 134.69% and it increases to 152.49% in




And the amount Cost of sales in the final year 2008 is 185.66%


2004 2005 2006 2007 2008Gross profit 100.00% 146.00% 295.77% 147.34% 88.84%

96

Trend Analysis

0.00%

100.00%

200.00%

300.00%

400.00%

2004 2005 2006 2007 2008

Years

Per

cent

age

Gross profit

Gross profit

The amount of Gross Profit in the first year 2004 was Rs.740824 and it becomes


The amount of Gross Profit in the year 2005 was Rs.1081576 and it becomes Rs.2191111



in the year 2007 with a decrement of Rs.1099616



And the amount of Gross Profit in the final year 2008 is Rs.658112.

The amount of Gross Profit in the first year 2004 was 100.00% and it becomes 146.00%


The amount of Gross Profit in the year 2005 was 146.00% and it becomes 295.77% in the






And the amount of Gross Profit in the final year 2008 is 88.84%.

97

Fauji Cement Company LimitedIncome Statement (Trend Analysis)2004 2005 2006 2007 2008

Other income 100.00% 26.24% 101.35% 172.74% 251.67%

Trend Analysis

0.00%

100.00%

200.00%

300.00%

2004 2005 2006 2007 2008

Years

Per

cent

age

Other income

Other income

The amount of other income in the first year 2004 was Rs.42744 and it becomes


The amount of other income in the year 2005 was Rs.11216 and it becomes Rs.43323 in

the year 2006 with an increment of Rs.32107


the year 2007 with increment of Rs.30512



And the amount of other income in the final year 2008 is Rs.107574

The amount of other income in the first year 2004 was 100.00% and it becomes 26.24%


The amount of other income in the year 2005 was 26.24% and it becomes 101.35% in the


98

The amount of other income in the year 2006 was 101.35% and it becomes 172.74% in


The amount of other income in the year 2007 was 172.74% and it becomes 251.67% in


And the amount of other income in the final year 2008 is 251.67%


2004 2005 2006 2007 2008Distribution cost 100.00% 104.49% 155.24% 199.08% 261.48%

Trend Analysis

0.00%

50.00%

100.00%

150.00%

200.00%

250.00%

300.00%

2004 2005 2006 2007 2008

Years

Pe

rce

nta

ge

s

Distribution cost:

Distribution cost

The amount of Distribution cost in the first year 2004 was Rs.20416 and it becomes


The amount of Distribution cost in the year 2005 was 21333 and it becomes Rs.31694 in

the year 2006 with an increment of Rs.10361.

99

The amount of Distribution cost in the year 2006 was Rs.31694 and it becomes Rs.40645




And the amount of Distribution cost in the final year 2008 is Rs.53383.

The amount of Distribution cost in the first year 2004 was 100.00% and it becomes


The amount of Distribution cost in the year 2005 was 104.49% and it becomes 155.24%






And the amount of Distribution cost in the final year 2008 is 261.48%


2004 2005 2006 2007 2008Administrative expenses 100.00% 106.97% 168.53% 180.35% 193.49%

100

Trend Analysis

0.00%

50.00%

100.00%

150.00%

200.00%

250.00%

2004 2005 2006 2007 2008

Years

Pe

rce

nta

ge

s

Administrative expenses:

Administrative expenses

The amount of Administrative expenses in the first year 2004 was Rs.39535 and it


The amount of Administrative expenses in the year 2005 was Rs.42292 and it becomes






And the amount of Administrative expenses in the final year 2008 is Rs.76495.

The amount of Administrative expenses in the first year 2004 was 100.00% and it


The amount of Administrative expenses in the year 2005 was 106.97% and it becomes






101

And the amount of Administrative expenses in the final year 2008 is 193.49%


2004 2005 2006 2007 2008Other Operating expenses 100.00% 7597.19% 17659.85% 10900.19% 6433.40%

Trend Analysis

0.00%

2000.00%

4000.00%6000.00%

8000.00%

10000.00%

12000.00%

14000.00%16000.00%

18000.00%

20000.00%

2004 2005 2006 2007 2008

Years

Pe

rce

nta

ge

s

Other Operating expenses:

Other Operating expenses

The amount of Other Operating expenses in the first year 2004 was Rs.533 and it


102

The amount of Other Operating expenses in the year 2005 was Rs.40493 and it becomes






And the amount of Other Operating expenses in the final year 2008 is Rs.3429.

The amount of Other Operating expenses in the first year 2004 was 100.00% and it


The amount of Other Operating expenses in the year 2005 was 7597.19% and it becomes


The amount of Other Operating expenses in the year 2006 was 17659.85% and it


The amount of Other Operating expenses in the year 2007 was 10900.19% and it


And the amount of Other Operating expenses in the final year 2008 is 6433.40%


2004 2005 2006 2007 2008Finance Cost 100.00% 112.44% 129.42% 101.41% 71.96%

103

Trend Analysis

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

140.00%

2004 2005 2006 2007 2008

Years

Per

cen

tag

es

Finance Cost:

Finance Cost

The amount of Finance Cost in the first year 2004 was Rs.204222 and it becomes


The amount of Finance Cost in the year 2005 was Rs.229633 and it becomes Rs.264296

in the year 2006 with an increment of Rs.34633.





And the amount of Finance Cost in the final year 2008 is Rs.146954

The amount of Finance Cost in the first year 2004 was 100.00% and it becomes 112.44%


The amount of Finance Cost in the year 2005 was 112.44% and it becomes 129.42% in


104

The amount of Finance Cost in the year 2006 was 129.42% and it becomes 101.41% in


The amount of Finance Cost in the year 2007 was 101.41% and it becomes 71.96% in the


And the amount of Finance Cost in the final year 2008 is 71.96%


2004 2005 2006 2007 2008Net profit before taxation 100.00% -311.99% -730.69% -323.97% -186.84%

Trend Analysis

-800.00%

-600.00%

-400.00%

-200.00%

0.00%

200.00%

2004 2005 2006 2007 2008

Years

Pe

rce

nta

ge

Net profit before taxation

105


The amount of Net profit before taxation in the first year 2004 was Rs.-243290 and it

becomes 759041 in the year 2005

The amount of Net profit before taxation in the year 2005 was Rs.759041 and it becomes

Rs.1777690 in the year 2006

The amount of Net profit before taxation in the year 2006 was Rs.1777690 and it

becomes Rs.788180 in the year 2007



The amount of Net profit before taxation in the first year 2004 was 100.00% and it

becomes -311.99% in the year 2005

The amount of Net profit before taxation in the year 2005 was -311.99% and it becomes -

730.69% in the year 2006


323.97% in the year 2007


186.84% in the year 2008.


2004 2005 2006 2007 2008Net profit after taxation 100.00% 162.50% 383.17% 205.74% 131.66%

106

Trend Analysis

0.00%100.00%200.00%300.00%400.00%500.00%

2004 2005 2006 2007 2008

Years

Per

cen

tag

e

Net profit after taxation


The amount of Net profit after taxation in the first year 2004 was Rs.314149 and it


The amount of Net profit after taxation in the year 2005 was RS.510493 and it becomes


The amount of Net profit after taxation in the year 2006 was Rs.1203739 and it becomes




And the amount of Net profit after taxation in the final year 2008 is Rs.413598.

The amount of Net profit after taxation in the first year 2004 was 100.00% and it


The amount of Net profit after taxation in the year 2005 was 162.50% and it becomes






And the amount of Net profit after taxation in the final year 2008 is 131.66%

107


2004 2005 2006 2007 2008Earning per share - Basic 100.00% 162.50% 383.17% 203.69% 99.72%

Trend Analysis

0.00%100.00%200.00%300.00%400.00%500.00%

2004 2005 2006 2007 2008

Years

Per

cen

tag

e

Earning per share -Basic

Earning per share – Basic

The amount of Earning per share - Basic in the first year 2004 was Rs.0.85 and it

becomes Rs.1.38 in the year 2005 with increment of Rs.0.53

The amount of Earning per share - Basic in the year 2005 was Rs.1.38 and it becomes

Rs.3.25 in the year 2006 with an increment of Rs.1.87


Rs.1.73 in the year 2007 with decrement of Rs.1.52



And the amount of Earning per share - Basic in the final year 2008 is Rs.0.85

108

The amount of Earning per share - Basic in the first year 2004 was 100.00% and it


The amount of Earning per share - Basic in the year 2005 was 162.50% and it becomes






And the amount of Earning per share - Basic in the final year 2008 is 99.72%


2004 2005 2006 2007 2008Earning per share - Diluted 100.00% 162.50% 383.17% 203.69% 102.55%

109

Trend Analysis

0.00%100.00%200.00%300.00%400.00%500.00%

2004 2005 2006 2007 2008

Years

Per

cen

tag

e

Earning per share - Diluted

Earning per share – Diluted

The amount of Earning per share - Diluted in the first year 2004 was Rs.0.75 and it


The amount of Earning per share - Diluted in the year 2005 was Rs.1.22 and it becomes






And the amount of Earning per share - Diluted in the final year 2008 is Rs.0.77.

The amount of Earning per share - Diluted in the first year 2004 was 100.00% and it


The amount of Earning per share - Diluted in the year 2005 was 162.50% and it becomes






And the amount of Earning per share - Diluted in the final year 2008 is 102.55%

110


Fauji Cement Company LimitedIncome Statement (Vertical Analysis)

2004 2005 2006 2007 2008Net Sales 70.71% 72.55% 75.41% 72.45% 74.66%

111

Vertical Analysis

68.00%

70.00%

72.00%

74.00%

76.00%

2004 2005 2006 2007 2008

Years

Per

cen

tag

e

Net Sales

Net Sales

The amount of Net Sales in the year 2004 was Rs.2296231 and it increases to Rs.2845143


And the amount of Net Sales in the year 2005 was Rs.2845143 and it increases to


The amount of Net Sales in the year 2006 was Rs.4286138 and it decreases to

Rs.3463283 in the year 2007 with and decrement of Rs.822855

The amount of Net Sales in the year 2007 was Rs.3463283 and it increases to


And the amount Net Sales in the final year 2008 is Rs.3545902.

The amount of Net Sales in the year 2004 was 70.71% .and it increases to 72.55% in the


And the amount of Net Sales in the year 2005 was 72.55% and it increases to 75.41% in


The amount of Net Sales in the year 2006 was 75.41% and it decreases to 72.45% in the


The amount of Net Sales in the year 2007 was 72.41% and it increases to 74.66% in the


And the amount Net Sales in the final year 2008 is 74.66%


112

Income Statement (Vertical Analysis)2004 2005 2006 2007 2008

Cost of sales 47.90% 44.97% 36.86% 49.62% 60.81%

VErtical Analysis

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

2004 2005 2006 2007 2008

Years

Pe

rce

nta

ge

s

Less: Cost of sales

Cost of sales



And the amount of Cost of sales in the year 2005 was Rs.1763567 and it increases to






And the amount Cost of sales in the final year 2008 is 2887790.

The amount of Cost of sales in the year 2004 was 47.90% .and it decreases to 44.97% in


And the amount of Cost of sales in the year 2005 was 44.97% and it decreases to 36.86%


113





And the amount Cost of sales in the final year 2008 is 11.19%


2004 2005 2006 2007 2008Gross profit 22.81% 27.58% 38.55% 22.83% 13.86%

Vertical Analysis

0.00%10.00%20.00%30.00%40.00%50.00%

2004 2005 2006 2007 2008

Years

Per

cen

tag

e

Gross profit

Gross profit

The amount of Gross Profit in the first year 2004 was Rs.740824 and it becomes





in the year 2007 with a decrement of Rs.1099616

114



And the amount of Gross Profit in the final year 2008 is Rs.658112.

The amount of Gross Profit in the first year 2004 was 22.81% and it becomes 27.58% in








And the amount of Gross Profit in the final year 2008 is 13.86%

Fauji Cement Company LimitedIncome Statement (Vertical Analysis)2004 2005 2006 2007 2008

Other income 1.32% 0.29% 0.76% 1.54% 2.27%

115

Vertical Analysis

0.00%0.50%1.00%1.50%2.00%2.50%

2004 2005 2006 2007 2008

years

Per

cen

tag

e

Other income

Other income

The amount of other income in the first year 2004 was Rs.42744 and it becomes



the year 2006 with an increment of Rs.32107





And the amount of other income in the final year 2008 is Rs.107574

The amount of other income in the first year 2004 was 1.32% and it becomes 0.29% in








And the amount of other income in the final year 2008 is 2.27%

116


2004 2005 2006 2007 2008Distribution cost 0.63% 0.54% 0.56% 0.85% 1.12%

Vertical Analysis

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

2004 2005 2006 2007 2008

Years

Per

cen

tag

es

Distribution cost:

Distribution cost

The amount of Distribution cost in the first year 2004 was Rs.20416 and it becomes


The amount of Distribution cost in the year 2005 was 21333 and it becomes Rs.31694 in

the year 2006 with an increment of Rs.10361.





And the amount of Distribution cost in the final year 2008 is Rs.53383.

117

The amount of Distribution cost in the first year 2004 was 0.63% and it becomes 0.54%


The amount of Distribution cost in the year 2005 was 0.54% and it becomes 0.56% in the






And the amount of Distribution cost in the final year 2008 is 1.12%


2004 2005 2006 2007 2008Administrative expenses 1.22% 1.08% 1.17% 1.49% 1.61%

Vertical Analysis

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

2004 2005 2006 2007 2008

Years

Pe

rce

nta

ge

s

Administrative expenses:

118

Administrative expenses

The amount of Administrative expenses in the first year 2004 was Rs.39535 and it








And the amount of Administrative expenses in the final year 2008 is Rs.76495.

The amount of Administrative expenses in the first year 2004 was 1.22% and it becomes








And the amount of Administrative expenses in the final year 2008 is 1.61%


2004 2005 2006 2007 2008Other Operating expenses 0.02% 1.03% 1.66% 1.22% 0.72%

119

Vertical analysis

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

2004 2005 2006 2007 2008

Years

Pe

rce

nta

ge

s

Other Operating expenses:

Other Operating expenses

The amount of Other Operating expenses in the first year 2004 was Rs.533 and it








And the amount of Other Operating expenses in the final year 2008 is Rs.3429.

The amount of Other Operating expenses in the first year 2004 was 0.02% and it becomes








120

And the amount of Other Operating expenses in the final year 2008 is 0.72%


2004 2005 2006 2007 2008Finance Cost 6.29% 5.86% 4.65% 4.33% 3.09%

Vertical Analysis

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

2004 2005 2006 2007 2008

Years

Perc

en

tag

es

Finance Cost:

Finance Cost

The amount of Finance Cost in the first year 2004 was Rs.204222 and it becomes



in the year 2006 with an increment of Rs.34633.





And the amount of Finance Cost in the final year 2008 is Rs.146954

121

The amount of Finance Cost in the first year 2004 was 6.29% and it becomes 5.86% in








And the amount of Finance Cost in the final year 2008 is 3.09%


2004 2005 2006 2007 2008Net profit before taxation -7.49% 19.36% 31.28% 16.49% 9.57%

Vertical Analysis

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

2004 2005 2006 2007 2008

Years

Per

cen

tag

e


122


The amount of Net profit before taxation in the first year 2004 was Rs.-243290 and it

becomes 759041 in the year 2005



The amount of Net profit before taxation in the year 2006 was Rs.1777690 and it

becomes Rs.788180 in the year 2007



The amount of Net profit before taxation in the first year 2004 was -7.49% and it


The amount of Net profit before taxation in the year 2005 was 19.36% and it 31.28% in


The amount of Net profit before taxation in the year 2006 was 31.28% and it becomes


The amount of Net profit before taxation in the year 2007 was 16.49% and it becomes


And the amount of Net profit before taxation in the final year 2008 is 9.57%


2004 2005 2006 2007 2008Net profit after taxation 9.67% 13.02% 21.18% 13.52% 8.71%

123

Vertical Analysis

0.00%5.00%

10.00%15.00%20.00%25.00%

2004 2005 2006 2007 2008

Years

Per

cen

tag

e



The amount of Net profit after taxation in the first year 2004 was Rs.314149 and it


The amount of Net profit after taxation in the year 2005 was RS.510493 and it becomes






And the amount of Net profit after taxation in the final year 2008 is Rs.413598.

The amount of Net profit after taxation in the first year 2004 was 9.67% and it becomes








And the amount of Net profit after taxation in the final year 2008 is 8.17%

124


2004 2005 2006 2007 2008Earning per share - Basic 0.00% 0.00% 0.00% 0.00% 0.00%

Vertical Analysis

0.00%

0.00%

0.00%

0.00%

2004 2005 2006 2007 2008

Years

Per

cen

tag

e

Earning per share - Basic

Earning per share – Basic

The amount of Earning per share - Basic in the first year 2004 was Rs.0.85 and it








And the amount of Earning per share - Basic in the final year 2008 is Rs.0.85

125

The amount of earning per share - Basic in the first year 2004, 2005, 2006, 2007 and

2008 was 0.00%


2004 2005 2006 2007 2008Earning per share - Diluted 0.00% 0.00% 0.00% 0.00% 0.00%

Vertical Analysis

0.00%

0.00%

0.00%

0.00%

2004 2005 2006 2007 2008

Years

Per

cen

tag

e

Earning per share - Diluted

Earning per share – Diluted

The amount of Earning per share - Diluted in the first year 2004 was Rs.0.75 and it








And the amount of Earning per share - Diluted in the final year 2008 is Rs.0.77.

126

The amount of earning per share - Diluted in the first year 2004, 2005, 2006, 2007 and

2008 was 0.00%

127

Ratio Analysis

Current ratio =

Fauji Cement Company LimitedLiquidity Ratio Analysis2004 2005 2006 2007 2008

CURRENT RATIO 1.54 0.97 1.25 1.35 2.16

128

CURRENT ASSETS 574460 1172765 1579382 1953527 5294083CURRENT LIABILITIES 372116 1206946 1267198 1442287 2454761

liquidity Ratio

1.54

0.97

1.251.35

2.16

0.00

0.50

1.00

1.50

2.00

2.50

2004 2005 2006 2007 2008

Years

Rat

ios

Current Ratio

The amount of Current Assets in the year 2004 was Rs.574460 and the amount of current

liabilities in the first year 2004 was Rs.372116 and current ratio was 1.54 in the year

2004.

And the amount current assets increases to Rs.1172765 in the year 2005 with an

increment of Rs.598305 and the amount of current liabilities becomes Rs.1206946 in the

year 2005 with increment of Rs.834830 and current ratio becomes 0.97 in the year 2005.

And the amount of current assets increases to Rs.1579382 in the year 2006 with an

increment of Rs.406617 and the amount current liabilities becomes Rs.1267198 in the

year 2006 with increment of Rs.60252 and the current ratio becomes 1.25 in the year

2006.

The amount of current assets increases to Rs.1953527 in the year 2007 with an increment

of Rs.374145 and the amount of current liabilities becomes Rs.1442287 in the year 2007

with increment of Rs.175089 and current ratio becomes 1.35 in the year 2007.



year 2008 with increment of Rs.1012474 and the current ratio becomes 2.16 in the year

2008.

129

Net Working Capital = current assets – current liabilities


Liquidity Ratios Analysis

2004 2005 2006 2007 2008

Net Working Capital 202344 -34181 312184 511240 2839322CURRENT ASSETS 574460 1172765 1579382 1953527 5294083CURRENT LIABILITIES 372116 1206946 1267198 1442287 2454761

Liquidity Ratio

202344

-34181

312184511240

2839322

-500000

0

500000

1000000

1500000

2000000

2500000

3000000

2004 2005 2006 2007 2008

Years

Net

Wo

rkin

g C

ap

tical

Net Working Capital


liabilities in the first year 2004 was Rs.372116 and Net Working Capital was 202344 in

the year 2004.



year 2005 with increment of Rs.834830 and Net Working Capital becomes -34181 in the

year 2005.

130



year 2006 with increment of Rs.60252 and the Net Working Capital becomes 312184 in

the year 2006.



year 2007 with increment of Rs.175089 and Net Working Capital becomes 511240 in the

year 2007.



year 2008 with increment of Rs.1012474 and the Net Working Capital becomes 2839322

in the year 2008.

Acid ratio =

Fauji Cement Company LimitedLiquidity Ratios Analysis

2004 2005 2006 2007 2008Acid Ratio 1.38 0.93 1.13 1.23 2.06CURRENT ASSETS 574460 1172765 1579382 1953527 5294083STOCK IN TRADE 61600 55931 145090 183309 230089CURRENT LIABILITIES 372116 1206946 1267198 1442287 2454761

131

Liquidity Ratio

1.38

0.931.13

1.23

2.06

0.00

0.50

1.00

1.50

2.00

2.50

2004 2005 2006 2007 2008

Years

Rat

io

Acid Ratio


liabilities in the first year 2004 was Rs.372116 and the amount of Stock In Trade in the

first year 2004 was Rs.61600 due to witch the Acid Ratio becomes 1.38 in the year 2004



year 2005 with increment of Rs.834830 and the amount of Stock In Trade decreases to

Rs.55931 in the year 2005 with decrement of Rs.5669 and the Acid Ratio becomes 0.93

in 2005.



year 2006 with increment of Rs.60252 and the amount of Stock In Trade increases to

Rs.145090 in the year 2006 with increment of Rs.55931 and the Acid Ratio becomes 1.13

in 2006.

The amount of current assets increases to Rs.1953527 in the year 2007 with an increment

of Rs.374145 and the amount of current liabilities becomes Rs.1442287 in the year 2007

with increment of Rs.175089 and the amount of Stock In Trade becomes Rs.183309 in

the year 2007 with increment of Rs.38219 and the Acid Ratio becomes 1.23 in 2007.



year 2008 with increment of Rs.1012474 and the amount of Stock In Trade becomes

132

Rs.230089 in the year 2008 with increment of Rs.46780 and Acid Ratio becomes 2.06 in

2008.

Cash ratio =


2004 2005 2006 2007 2008

Cash Ratio 0.53 0.50 0.67 0.29 1.54Cash and bank balances 197088 603110 847590 423133 3783909CURRENT LIABILITIES 372116 1206946 1267198 1442287 2454761

Liquidity Ratio

0.53 0.500.67

0.29

1.54

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2004 2005 2006 2007 2008

Years

Rat

io

Cash Ratio

The amount of Cash and bank balances in the year 2004 was Rs.197088 and the amount

of current liabilities in the first year 2004 was Rs.372116 due to which the Cash Ratio

becomes 0.53 in the year 2004.

And the amount of Cash and bank balances increases to Rs.603110 in the year 2005 with

an increment of Rs.406022 and the amount of current liabilities becomes Rs.1206946 in

133

the year 2005 with increment of Rs.834830 and Cash Ratio becomes 0.50 in the year

2005.

And the amount of Cash and bank balances increases to Rs.847590 in the year 2006 with

an increment of Rs.244480 and the amount current liabilities becomes Rs.1267198 in the

year 2006 with an increment of Rs.60252 and the Cash Ratio becomes 0.67 in the year

2006.

The amount of Cash and bank balances decreases to Rs.423133 in the year 2007 with

decrement of Rs.424457 and the amount of current liabilities becomes Rs.1442287 in the

year 2007 with an increment of Rs.175089 and Cash Ratio becomes 0.29 in the year

2007.

And the amount of Cash and bank balances increases to Rs.3783909 in the year 2008

with an increment of Rs.3360776 and the amount of current liabilities becomes

Rs.2454761 in the year 2008 with an increment of Rs.1012474 and the Cash Ratio


Debt/equity ratio =


2004 2005 2006 2007 2008

Debt/Equity Ratio 3.05 2.54 1.89 1.71 1.34Total Liabilities 5910353 6223788 6198108 6400688 12454493SHARE CAPITAL AND RESERVES 1939134 2449624 3282616 3735206 9283981

134

Debt Ratio

3.05

2.54

1.891.71

1.34

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2004 2005 2006 2007 2008

Years

Rat

ios

Debt/Equity Ratio

The amount of Total liabilities in the first year 2004 was Rs.5910353 and the amount of

SHARE CAPITAL AND RESERVES was Rs.1939134 due to which Debt/Equity Ratio


And the amount of Total liabilities becomes Rs.6223788 in the year 2005 with an

increment of Rs.313435 and the amount of SHARE CAPITAL AND RESERVES

becomes Rs.2449624 in the year 2005 with an increment of Rs.510490 and the

Debt/Equity Ratio becomes 2.54 in the year 2005.

And the amount of Total liabilities becomes Rs.6198108 in the year 2006 with decrement

of Rs.25680 and the amount of SHARE CAPITAL AND RESERVES becomes

Rs.3282616 in the year 2006 with an increment of Rs.832992 and the Debt/Equity Ratio










135

Debt to tangible net worth =


2004 2005 2006 2007 2008

Debt to tangible net worth 3.05 2.54 1.89 1.71 1.34Total Liabilities 5910353 6223788 6198108 6400688 12454493SHARE CAPITAL AND RESERVES 1939134 2449624 3282616 3735206 9283981Intangible assets 0 0 0 0 0

Debt Ratio

3.05

2.54

1.891.71

1.34

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2004 2005 2006 2007 2008

Years

Rat

ios

Debt to tangible net worth

The amount of Total liabilities in the first year 2004 was Rs.5910353 and the amount of

SHARE CAPITAL AND RESERVES was Rs.1939134 due to which Debt/Equity Ratio






136

And the amount of Total liabilities becomes Rs.6198108 in the year 2006 with decrement

of Rs.25680 and the amount of SHARE CAPITAL AND RESERVES becomes

Rs.3282616 in the year 2006 with an increment of Rs.832992 and the Debt/Equity Ratio










Day’s Sales in account receivable =

Fauji Cement Company LimitedLiquidity Ratios Analysis2004 2005 2006 2007 2008

Day's Sales in account receivable 7.12 13.76 2.17 2.06 2.77TRADE DEBTS 44789 107231 25475 19558 26927Net Sales 2296231 2845143 4286138 3463283 3545902

137

Activity Ratio

7.12

13.76

2.17 2.062.77

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

2004 2005 2006 2007 2008

Years

Rat

ios

Day's Sales in account receivable

The amount of Trade debts in the year 2004 was Rs.44789 and the amount of Net Sales in

the first year 2004 was Rs.2296231 and the Day's Sales in account receivable becomes

7.12 in the year 2004.

And the amount Trade debts increases to Rs.107231 in the year 2005 with an increment

of Rs.62442 and the amount of Net Sales becomes Rs.2845143 in the year 2005 with

increment of Rs.548912 and the Day's Sales in account receivable becomes 13.76 in the

year 2005.

And the amount Trade debts decreases to Rs.25475 in the year 2006 with decrement of

Rs.81756 and the amount of Net Sales becomes Rs.4286138 in the year 2006 with


year 2006.



decrement of Rs.8228885 and the Day's Sales in account receivable becomes 2.06 in the

year 2007.

And the amount Trade debts increases to Rs.26927 in the year 2008 with increment of



year 2008.

138

Account receivable turn over=


2004 2005 2006 2007 2008Account Receivable Turn Over 51.27 26.53 168.25 177.08 131.69Net Sales 2296231 2845143 4286138 3463283 3545902TRADE DEBTS 44789 107231 25475 19558 26927

Activity Ratio

51.27

26.53

168.25177.08

131.69

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

200.00

2004 2005 2006 2007 2008

Years

Rat

ios

Account Receivable Turn Over

The amount of Trade debts in the year 2004 was Rs.44789 and the amount of Net Sales in

the first year 2004 was Rs.2296231 and the Account Receivable Turn Over becomes 5.27

in the year 2004.

And the amount Trade debts increases to Rs.107231 in the year 2005 with an increment


increment of Rs.548912 and the Account Receivable Turn Over becomes 26.53 in the

year 2005.



139


year 2006.



decrement of Rs.8228885 and the Account Receivable Turn Over becomes 177.08 in the

year 2007.

And the amount Trade debts increases to Rs.26927 in the year 2008 with increment of



year 2008.

Day’s sales in inventory =


2004 2005 2006 2007 2008Day's sales in inventory 14.46 11.58 25.28 28.21 29.08STOCK IN TRADE 61600 55931 145090 183309 230089Cost of sales 1555407 1763567 2095027 2371788 2887790

Activity Ratio

14.4611.58

25.2828.21 29.08

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

2004 2005 2006 2007 2008

Years

Rat

ios

Day's sales in inventory

140

The amount of Stock In trade in the year 2004 was Rs.61600 and the amount of Cost of

sales in the first year 2004 was Rs.1555407 and the Day's sale in inventory was 14.46 in

the year 2004.

And the amount Stock in trade decreases to Rs.55931 in the year 2005 with decrement of

Rs.5669 and the amount of Cost of sales becomes Rs.1763567 in the year 2005 with an

increment of Rs.208160 and the Day's sale in inventory becomes 11.58 in the year 2005.

And the amount Stock in trade increases to Rs.145090 in the year 2006 with an increment

of Rs.89159 and the amount of Cost of sales becomes Rs.2095027 in the year 2006 with

an increment of Rs.331460 and the Day's sale in inventory becomes 25.28 in the year

2006.




2007.




2008.

Inventory turn over =


2004 2005 2006 2007 2008Inventory turnover 61.46 79.34 85.08 70.21 63.86Cost of sales 1555407 1763567 2095027 2371788 2887790STOCK IN TRADE 61600 55931 145090 183309 230089

141

Activity Ratio

61.46

79.3485.08

70.2163.86

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

2004 2005 2006 2007 2008

Years

Rat

ios

Inventory turnover

The amount of Stock In trade in the year 2004 was Rs.61600 and the amount of Cost of

sales in the first year 2004 was Rs.1555407 and the Inventory turnover was 61.46 in the

year 2004.

And the amount Stock in trade decreases to Rs.55931 in the year 2005 with decrement of

Rs.5669 and the amount of Cost of sales becomes Rs.1763567 in the year 2005 with an

increment of Rs.208160 and the Inventory turnover becomes 79.34 in the year 2005.



an increment of Rs.331460 and the Inventory turnover becomes 85.08 in the year 2006.







142

Total asset turn over =


2004 2005 2006 2007 2008Total asset turnover 0.39 0.46 0.69 0.54 0.28Net Sales 2296231 2845143 4286138 3463283 3545902Total Assets 5910353 6223788 6198108 6400688 12454493

Activity Ratio

0.390.46

0.69

0.54

0.28

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

2004 2005 2006 2007 2008

Years

Rat

ios

Total asset turnover

The amount of Net Sales in the year 2004 was Rs.2296231 and the amount of Total

Assets in the first year 2004 was Rs.5910353 and Total asset turnover was 0.39 in the

year 2004.

And the amount Net Sales increases to Rs.2845143 in the year 2005 with an increment of

Rs.548912 and the amount of Total Assets becomes Rs.6223788 in the year 2005 with

increment of Rs.313435 and Total asset turnover becomes 0.46 in the year 2005.



decrement of Rs.25680 and Total asset turnover becomes 0.69 in the year 2006.

143

And the amount Net Sales decreases to Rs.3463283 in the year 2007 with decrement of






Gross profit margin =


2004 2005 2006 2007 2008Gross profit margin (%) 32.26% 38.01% 51.12% 31.52% 18.56%Gross profit 740824 1081576 2191111 1091495 658112Net Sales 2296231 2845143 4286138 3463283 3545902

Profitability Ratio

32.26%38.01%

51.12%

31.52%

18.56%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

2004 2005 2006 2007 2008

Years

Rat

ios

Gross profit margin

144

The amount of Gross Profit in the year 2004 was Rs.740824 and the amount of Net Sales

in the first year 2004 was Rs.2296231 and Gross Profit Margin was 32.26% in the year

2004.

And the amount of Gross Profit increases to Rs.1081576 in the year 2005 with an

increment of Rs.340752 and the amount of Net Sales becomes Rs.2845143 in the year

2005 with increment of Rs.548912 and the Gross Profit Margin becomes 38.01% in the

year 2005.

And the amount of Gross Profit increases to Rs.2191111 in the year 2006 with an


2006 with increment of Rs.1440995 and the Gross Profit Margin becomes 51.12% in the

year 2006.

And the amount of Gross Profit decreases to Rs.1091495 in the year 2007 with decrement


decrement of Rs.822855 and the Gross Profit Margin becomes 31.52% in the year 2007.

And the amount of Gross Profit decreases to Rs.658112 in the year 2008 with decrement


increment of Rs.82619 and the Gross Profit Margin becomes 18.56% in the year 2008.

Operating income margin =


Operating income margin (%) 1.70% 34.75% 47.64% 28.74% 16.96%

Operating Profit 39068 988673 2041984 995285 601518

Net Sales 2296231 2845143 4286138 3463283 3545902

145

Profitability ratio

1.70%

34.75%

47.64%

28.74%

16.96%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

2004 2005 2006 2007 2008

Years

Rat

ios

Operating income margin

The amount of Operating Profit in the year 2004 was Rs.39068 and the amount of Net

Sales in the first year 2004 was Rs.2296231 and Operating Income Margin was 1.70% in

the year 2004.

And the amount of Operating Profit increases to Rs.988673 in the year 2005 with an


2005 with increment of Rs.548912 and the Operating Income Margin becomes 34.75% in

the year 2005.

And the amount of Operating Profit increases to Rs.2041984 in the year 2006 with an


2006 with increment of Rs.1440995 and the Operating Income Margin becomes 47.64%

in the year 2006.

And the amount of Operating Profit decreases to Rs.995285 in the year 2007 with

decrement of Rs.1046699 and the amount of Net Sales becomes Rs.3463283 in the year

2007 with decrement of Rs.822855 and the Operating Income Margin becomes 28.74%

in the year 2007.

And the amount of Operating Profit decreases to Rs.601518 in the year 2008 with


2008 with increment of Rs.82619 and the Operating Income Margin becomes 16.96% in

the year 2008

146

Net profit margin =


Net profit margin 13.68% 17.94% 28.08% 18.66% 11.66%Net profit after taxation 314149 510493 1203739 646323 413598Net Sales 2296231 2845143 4286138 3463283 3545902

Profitability Ratio

13.68%

17.94%

28.08%

18.66%

11.66%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

2004 2005 2006 2007 2008

Years

Rat

ios

Net profit margin

The amount of Net Profit after taxation in the year 2004 was Rs.314149 and the amount

of Net Sales in the first year 2004 was Rs.2296231 and Net Profit Margin was 13.68% in

the year 2004.

And the amount of Net profit after taxation increases to Rs.510493 in the year 2005 with

an increment of Rs.196344 and the amount of Net Sales becomes Rs.2845143 in the year

2005 with increment of Rs.548912 and the Net Profit Margin becomes 17.94% in the

year 2005.


an increment of Rs.693246 and the amount of Net Sales becomes Rs.4286138 in the year

147

2006 with increment of Rs.1440995 and the Net Profit Margin becomes 28.08% in the

year 2006.

And the amount of Net profit after taxation decreases to Rs.646323 in the year 2007 with


2007 with decrement of Rs.822855 and the Net Profit Margin becomes 18.66% in the

year 2007.



2008 with increment of Rs.82619 and the Net Profit Margin becomes 11.66% in the year

2008

Return on asset =

Fauji Cement Company LimitedRatio Analysis

2004 2005 2006 2007 2008Return on asset (%) 5.32% 8.20% 19.42% 10.10% 3.32%Net profit after taxation 314149 510493 1203739 646323 413598Total Assets 5910353 6223788 6198108 6400688 12454493

Profitability Ratio

5.32%

8.20%

19.42%

10.10%

3.32%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

2004 2005 2006 2007 2008

Years

Rat

ios

Return on asset

148


of Total Assets in the first year 2004 was Rs.5910353 and the Return on asset was 5.32%

in the year 2004.


an increment of Rs.196344 and the amount of Total Assets becomes Rs.6223788 in the

year 2005 with increment of Rs.313435 and the Return on asset becomes 8.20% in the

year 2005.


an increment of Rs.693246 and the amount of Total Assets becomes Rs.6198108 in the

year 2006 with decrement of Rs.25680 and the Return on asset becomes 19.42% in the

year 2006.


decrement of Rs.557416 and the amount of Total Assets becomes Rs.6400688 in the year

2007 with increment of Rs.202580 and the Return on asset becomes 10.10% in the year

2007.


decrement of Rs.232725 and the amount of Total Assets becomes Rs.12454493 in the

year 2008 with increment of Rs.6053805 and the Return on asset becomes 3.32% in the

year 2008

Return on sales to fixed assets =


2004 2005 2006 2007 2008Return on Sales to fixed assets 0.49 0.61 0.94 0.79 0.50Net Sales 2296231 2845143 4286138 3463283 3545902FIXED ASSETS - Tangible 4729254 4658272 4563115 4392450 7106599

149

Profitability Ratio

0.49

0.61

0.94

0.79

0.50

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

2004 2005 2006 2007 2008

Years

Rat

ios

Return on Sales to fixed assets

The amount of Net Sales in the year 2004 was Rs.2296231 and the amount of Fixed

Assets in the first year 2004 was Rs.4729254 and the Return on Sales to fixed assets was

0.49 in the year 2004.


Rs.548912 and the amount of Fixed Assets becomes Rs.4658272 in the year 2005 with

decrement of Rs.70982 and the Return on Sales to fixed assets becomes 0.61 in the year

2005.




2006.

And the amount Net Sales decreases to Rs.3463283 in the year 2007 with decrement of



2007.



increment of Rs.2714149 and the Return on Sales to fixed assets becomes 0.50 in the

year 2008.

150

Return on total equity =


2004 2005 2006 2007 2008Return on total equity 16.20% 20.84% 36.67% 17.30% 4.45%Net profit after taxation 314149 510493 1203739 646323 413598SHARE CAPITAL AND RESERVES 1939134 2449624 3282616 3735206 9283981

Profitability Ratio

16.20%

20.84%

36.67%

17.30%

4.45%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

2004 2005 2006 2007 2008

Years

Rat

ios

Return on total equity


of Share Capital and Reserves in the first year 2004 was Rs.1939134 and the Return on

total equity was 16.20% in the year 2004.


an increment of Rs.196344 and the amount of Share Capital and Reserves becomes

Rs.2449624 in the year 2005 with increment of Rs.510490 and the Return on total equity

becomes 20.84% in the year 2005.


an increment of Rs.693246 and the amount of Share Capital and Reserves becomes




decrement of Rs.557416 and the amount of Share Capital and Reserves becomes

151




decrement of Rs.232725 and the amount of Share Capital and Reserves becomes

Rs.9283981 in the year 2008 with increment of Rs.5548775 and the Return on total

equity becomes 4.45% in the year 2008

Earning Per Common Share =


2004 2005 2006 2007 2008Earning per common share 0.85 1.38 3.25 1.73 0.85Net profit after taxation 314149 510493 1203739 646323 413598

No. of common shares 370743 370743 370743 374473 489456

Profitability Ratio

0.85

1.38

3.25

1.73

0.85

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2004 2005 2006 2007 2008

Years

Rat

ios

Earning per common share

The amount of Net Profit after taxation in the year 2004 was Rs.314149 and the Number

of common shares in the first year 2004 was 370743 and the Earning per common share

was 0.85 in the year 2004.

152


an increment of Rs.196344 and the Number of common shares becomes 370743 in the

year 2005 and the Earning per common share becomes 1.38 in the year 2005.


an increment of Rs.693246 and the Number of common shares becomes 370743 in the

year 2006 and the Earning per common share becomes 3.25 in the year 2006.


decrement of Rs.557416 and the Number of common shares becomes 374473 in the year

2007 with increment of 3730 and the Earning per common share becomes 1.73 in the

year 2007.


decrement of Rs.232725 and the Number of common shares becomes 489456 in the year

2008 with increment of 114983 and the Earning per common share becomes 0.85 in the

year 2008

Price/earning ratio =


2004 2005 2006 2007 2008Price/earning ratio 18.89 10.48 6.75 13.17 20.91

Market price 14.15 12.76 19.38 20.09 16.06Earning per share - Diluted 0.75 1.22 2.87 1.53 0.77

153

Profitability Ratio

18.89

10.48

6.75

13.17

20.91

0.00

5.00

10.00

15.00

20.00

25.00

2004 2005 2006 2007 2008

Years

Rat

ios

Price/earning ratio

The market price in the year 2004 was Rs.14.15 and the Earning per share in the first year

2004 was 0.75 and Price/earning ratio was 18.89 in the year 2004.

And the market price decreases to 12.76 in the year 2005 with decrement of 1.39 and the

Earning per share becomes 1.22 in the year 2005 with increment of 0.47 and the

Price/earning ratio becomes 10.48 in the year 2005.

And the market price increases to 19.38 in the year 2006 with increment of 6.62 and the

Earning per share becomes 2.87 in the year 2006 with increment of 1.65 and the


And the market price increases to 20.09 in the year 2007 with increment of 0.71 and the

Earning per share becomes 1.53 in the year 2007 with decrement of 1.34 and the


And the market price decreases to 16.06 in the year 2008 with decrement of 4.03 and the

Earning per share becomes 0.77 in the year 2008 with decrement of 0.76 and the


Degree of financial leverage =

154


2004 2005 2006 2007 2008Degree of financial leverage 0.20 0.68 0.56 0.70Net profit after taxation 314149 510493 1203739 646323 413598Net profit before taxation -243290 759041 1777690 788180 454564

Ratio Analysis

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

2004 2005 2006 2007 2008

Years

Ra

tio

s

Degree of financial leverage

155

SWOT Analysis

Strengths

o Capturing giant’s share in export market

o Fauji Foundation Group becoming a key success factor

o Sea route trading becoming a vital and cost efficient strategy

o Consistency in clinker exports in Mid East and India

Weaknesses

o Fuel costs to dampen the core earnings

o Expansive export market inflating the distribution costs

Opportunities

African Market proving to be a buffer after Indian demands Subsides

Threats

o Excessive regional capacity posing threat

o Cut in PSDP depressing local demand

157

BCG Matrix

159

The four segments of the BCG Matrix

Placing products in the BCG matrix provides 4 categories in a portfolio of a company:

Stars (high growth, high market share)

o Stars are using large amounts of cash. Stars are leaders in the business.

Therefore they should also generate large amounts of cash.

o Stars are frequently roughly in balance on net cash flow. However if

needed any attempt should be made to hold your market share in Stars,

because the rewards will be Cash Cows if market share is kept.

Cash Cows (low growth, high market share)

o Profits and cash generation should be high. Because of the low growth,

investments which are needed should be low.

o Cash Cows are often the stars of yesterday and they are the foundation of a

company.

Dogs (low growth, low market share)

o Avoid and minimize the number of Dogs in a company.

o Watch out for expensive ‘rescue plans’.

o Dogs must deliver cash, otherwise they must be liquidated.

Question Marks (high growth, low market share)

o Question Marks have the worst cash characteristics of all, because they

have high cash demands and generate low returns, because of their low

market share.

o If the market share remains unchanged, Question Marks will simply

absorb great amounts of cash.

o Either invests heavily, or sells off, or invests nothing and generates any

cash that you can. Increase market share or deliver cash.

The BCG Matrix and one size fits all strategies

160

The BCG Matrix method can help to understand a frequently made strategy mistake:

having a one size fits all strategy approach, such as a generic growth target (9 percent per

year) or a generic return on capital of say 9,5% for an entire corporation.

In such a scenario:

Cash Cows Business Units will reach their profit target easily. Their management

has an easy job. The executives are often praised anyhow. Even worse, they are

often allowed to reinvest substantial cash amounts in their mature businesses.

Dogs Business Units are fighting an impossible battle and, even worse, now and

then investments are made. These are hopeless attempts to "turn the business

around".

As a result all Question Marks and Stars receive only mediocre investment funds.

In this way they can never become Cash Cows. These inadequate invested sums

of money are a waste of money. Either these SBUs should receive enough

investment funds to enable them to achieve a real market dominance and become

Cash Cows (or Stars), or otherwise companies are advised to disinvest. They can

then try to get any possible cash from the Question Marks that were not selected.

Other uses and benefits of the BCG Matrix

If a company is able to use the experience curve to its advantage, it should be able

to manufacture and sell new products at a price that is low enough to get early

market share leadership. Once it becomes a star, it is destined to be profitable.

BCG model is helpful for managers to evaluate balance in the firm’s current

portfolio of Stars, Cash Cows, Question Marks and Dogs.

BCG method is applicable to large companies that seek volume and experience

effects.

The model is simple and easy to understand.

It provides a base for management to decide and prepare for future actions.

Limitations of the BCG Matrix

161

Some limitations of the Boston Consulting Group Matrix include:

It neglects the effects of synergy between business units.

High market share is not the only success factor.

Market growth is not the only indicator for attractiveness of a market.

Sometimes Dogs can earn even more cash as Cash Cows.

The problems of getting data on the market share and market growth.

There is no clear definition of what constitutes a "market".

A high market share does not necessarily lead to profitability all the time.

The model uses only two dimensions – market share and growth rate. This may

tempt management to emphasize a particular product, or to divest prematurely.

A business with a low market share can be profitable too.

The model neglects small competitors that have fast growing market shares.

As long as the BCG Matrix of Fauji Cement Company Limited is concerned, because the

company is out of danger zone that is why it lies in the category of Question Mark of

BCG Matrix. The reason for lying in the Question Mark field is that because the company

is growing well but it is not capturing high market share because of others cement

companies like D.G. Khan Cement and Lucky Cement etc.

162

Conclusion

I foresee growth in earrings of cement companies in the years to come. Similarly the said

position will be with FCC. I expect positive earnings of FCCL in the coming years;

currently we maintain our stance by recommend “BUY” on FCCL.

168

Recommendations

We recommend “BUY” for the scrip, although we are bullish viewing that most of the

cement stock often trade below the sector PER and this is also true for Fauji Cement, but

as far as growth sector is concerned our stance for fauji cement is neutral, even though

the stock market is currently not at bullish, fauji cement is out of danger zone as they

have reprofiled its debts which ultimately reduce its cost of borrowings thus, moving

towards sound fundamentals.

170

Annexure

Balance Sheet

Fauji Cement Company LimitedBalance Sheet

As on December….. RS(000)2004 2005 2006 2007 2008

CURRENT ASSETS 574460 1172765 1579382 1953527 5294083Cash and bank balances 197088 603110 847590 423133 3783909

Deposit accounts 137433 560177 798122 402907 3756611Current accounts 21326 25840 49253 20048 27039

Collection accounts 38275 16831 0 0 0Cash in hand 54 262 215 178 259

Advances, Deposits, prepayments and other receivables: 73583 46041 70340 858758 345567To suppliers 34044 18148 31523 815588 15521

To employees 449 783 1639 621 2473Due from associated undertaking - unsecured 1127 1125 3190 0 0

Deposits 1313 1486 1865 1795 5737Prepayments 10606 4314 9937 3125 3966Excise duty 9911 3057 0 0 0

Advance tax -net 0 7891 13874 13104 23302Sales tax refundable -net 3774 0 0 0 82719

172

Derivative foreign currency options used as hedging instrument 0 0 0 0 84364Interest accrued 2175 1002 5476 5077 14828

Prepaid arrangement fee for loans 0 0 0 11000 74670Margin on letters of credit 0 0 0 0 29369

Other receivables- Considered goods 645 8235 2836 2084 7179Others 9539 0 0 6364 1439

TRADE DEBTS 44789 107231 25475 19558 26927Unsecured 23833 25021 27042 16117 4848

Considered goods 22266 23454 25475 7769 0Considered doubtful 1567 1567 1567 8348 4848

Secure-considered goods 22523 83777 0 11789 26927Less: Provision for doubtful debts -1567 -1567 -1567 -8348 -4848

STOCK IN TRADE 61600 55931 145090 183309 230089Raw and packing material 15224 18469 28012 23931 31271

Work in process 27761 11624 93671 115221 152529Finished goods 18615 25838 23407 44157 46289

STORES, SPARES AND LOOSE TOOLS 197400 360452 490887 468769 907591Stores 71837 107633 198485 61997 415358Spares 118324 244514 280183 394046 478579

Loose tools 7239 8305 12219 12726 13654DEFERRED TAX ASSETS - NET 570039 337140 0 0 0

LONG TERM DEPOSITS 36600 46611 46611 46611 46611Islamabad Electric Supply Company Limited 21600 21600 21600 21600 21600

Sui Northern Gas Pipelines Limited 15000 25011 25011 25011 25011LONG TERM ADVANCES - Considered goods 0 9000 9000 8100 7200

Sui Northern Gas Pipelines Limited 0 0 0 9000 8100Less: Amount receivables within 12 months shown under

current assets 0 0 0 -900 -900FIXED ASSETS - Tangible: 4729254 4658272 4563115 4392450 7106599Property, Plant and equipment 4729254 4658272 4563115 4392450 7106599

Total Assets 5910353 6223788 6198108 6400688 12454493

CURRENT LIABILITIES 372116 1206946 1267198 1442287 2454761Current portion of long term financing: 86508 552995 550000 550000 550000

Short term borrowings - secured: 0 308876 236353 375510 1378365Markup accrued: 13132 69357 59771 48330 33186

Trade and other payables: 272476 275718 421074 468447 493210Creditors 45651 45969 59763 81766 65997

Accrued liabilities 63425 67119 63470 118828 174692Retention money 10819 10533 12843 11986 15517Security deposits 25462 28982 37986 39051 36916

Advances from customers 23121 42444 58744 67770 41344

173

Workers' (Profit) Participation Fund 0 39949 93562 41483 24413Workers' Welfare fund 0 0 0 16085 25362Sales tax payable- net 22304 31300 39235 32599 0Excise duty payable 58 3537 10264 8582 57629

Other liabilities 81636 5885 9052 40708 45323Compensated absences 0 0 33990 3626 3686

Unclaimed dividend 0 0 2165 5963 2331NON - CURRENT LIABILITIES 3599103 2567218 1648294 1223195 715751

Retention money payables: 0 0 0 0 18129Deferred tax liability - net: 0 0 215381 339918 363154

Deferred liability 40264 45213 7912 8277 9468Long term financing: 3558839 2522005 1425001 875000 325000

Loans from banking companies - Secured:Habib Bank Limited 916667 598485 431818 265152MCB Bank Limited 916667 598485 431818 265152United Bank Limited 458333 299243 215909 132576

Bank Al Falah Limited 458333 299243 215909 132576NIB Bank Limited 0 0 129546 79544

PICIC Commercial Bank Limited 275000 179545 0 0Loan from related party:

Fauji Foundation- Unsecured 50000 0 0 0Total Liabilities 3971219 3774164 2915492 2665482 3170512

Less: amount payable within 12 months shown under current liabilities -552995 -550000 -550000 -550000

SHARE CAPITAL AND RESERVES 1939134 2449624 3282616 3735206 9283981Reserves: 0 0 0 -459216 1864094

Accumulated loss-

2255288-

1744798 -911806 0 0Share capital: 4194422 4194422 4194422 4194422 7419887

Total Liabilities + Owner's Equity 5910353 6223788 6198108 6400688 12454493

174

Income Statement

Fauji Cement Company LimitedIncome Statement

For the Year Ended June…… RS(000)2004 2005 2006 2007 2008

Sales 3247262 3921362 5683455 4780036 4749217

Less: Government Levies -951031-

1076219-

1397317-

1316753-

1203315Net Sales 2296231 2845143 4286138 3463283 3545902

Less: Cost of sales 1555407 1763567 2095027 2371788 2887790Raw material Consumed 115164 136819 205751 235379 227413

Packing material consumed 155487 147994 182873 221116 281916Stores and spares consumed 5285 6573 6052 11171 10914

Spares written off 0 0 18528 931 0Salaries, wages and benefits 91289 87091 142070 133780 133451

Rent, rates and taxes 952 1378 2562 2213 5284Insurance 14920 18078 12689 12363 12221

Fuel consumed 564591 699818 843909 979044 1441919Power consumed 310041 332383 393785 431609 451419

Depreciation 243056 251981 261566 276244 290477Others 63185 72538 104859 110238 85730

1563970 1754653 2174644 2414088 2940744Add: Opening work-in-process 5817 27761 11624 93671 115221Less: Closing work-in-process -27761 -11624 -93671 -115221 -152529

175

Cost of goods manufactured 1542026 1770790 2092597 2392538 2903436Add: Opening finished goods 31996 18615 25838 23407 44157Less: Closing finished goods -18615 -25838 -23408 -44157 -46289

1555407 1763567 2095027 2371788 2901304Less: Own consumption capitalized 0 0 0 0 -13514

1555407 1763567 2095027 2371788 2887790Gross profit 740824 1081576 2191111 1091495 658112

Other income 42744 11216 43323 73835 107574Distribution cost: 20416 21333 31694 40645 53383

Salaries, wages and benefits 12011 11085 21388 20651 18791Export freight and other charges 0 0 0 0 24482

Traveling and entertainment 1034 1857 1488 705 1127Vehicle running and maintenance expenses 0 0 0 2745 1641

Rent, rates and taxes 1144 1172 1112 1353 1468Repairs and maintenance 411 872 625 173 288Printing and stationery 509 640 403 416 545


Administrative expenses: 39535 42292 66627 71302 76495Salaries, wages and benefits 21817 21835 35663 42439 41153Traveling and entertainment 2053 3319 4769 3487 7483

Vehicle running and maintenance expenses 0 0 0 2385 2145Insurance 312 356 532 594 602

Rent, rates and taxes 1064 1250 4302 5934 6465Repairs and maintenance 711 1110 2304 960 590Printing and stationery 856 868 1463 1941 1318


Other Operating expenses: 533 40493 94127 58098 34290Audits' remuneration 533 544 565 530 600

Workers' (Profit) Participation Fund 0 39949 93562 41483 24413Workers' Welfare Fund 0 0 0 16085 9277

Finance Cost: 204222 229633 264296 207105 146954Fee and charges on loans 11615 10564 500 500 500

Interest/mark-up on long term finance 57324 175784 254030 200642 129928Interest/mark-up on long term loan from

related party 873 3185 456 0 0Interest on short term borrowings and other

charges 0 4352 1095 779 11609Interest on Workers' Profit Participation Fund 0 0 2972 93 0

Guarantee commission 111947 32201 483 972 665Bank charges and commission 4557 3547 4760 4119 4252

Foreign exchange risk insurance(FERI) 17906 0 0 0 0

176

contractAmortization of deferred cost 762152 0 0 0 0

Net profit before taxation -243290 759041 1777690 788180 454564Less: Taxation 557439 -248548 -573951 -141857 -40966

Net profit after taxation 314149 510493 1203739 646323 413598



As on December….. RS(000)2004 2005 2006 2007 2008

CURRENT ASSETS 100.00% 204.15% 274.93% 340.06% 921.58%Cash and bank balances 100.00% 306.01% 430.06% 214.69% 1919.91%

Deposit accounts 100.00% 407.60% 580.74% 293.17% 2733.41%Current accounts 100.00% 121.17% 230.95% 94.01% 126.79%

Collection accounts 100.00% 43.97% 0.00% 0.00% 0.00%Cash in hand 100.00% 485.19% 398.15% 329.63% 479.63%

Advances, Deposits, prepayments and other receivables: 100.00% 62.57% 95.59% 1167.06% 469.63%To suppliers 100.00% 53.31% 92.59% 2395.69% 45.59%

To employees 100.00% 174.39% 365.03% 138.31% 550.78%Due from associated undertaking - unsecured 100.00% 99.82% 283.05% 0.00% 0.00%

Deposits 100.00% 113.18% 142.04% 136.71% 436.94%Prepayments 100.00% 40.68% 93.69% 29.46% 37.39%Excise duty 100.00% 30.84% 0.00% 0.00% 0.00%

Advance tax -net 100.00% 175.82% 166.06% 295.30%Sales tax refundable -net 100.00% 0.00% 0.00% 0.00% 2191.81%

Derivative foreign currency options used as hedging instrument 100.00%Interest accrued 100.00% 46.07% 251.77% 233.43% 681.75%

Prepaid arrangement fee for loans 100.00% 678.82%Margin on letters of credit 100.00%

Other receivables- Considered goods 100.00% 1276.74% 439.69% 323.10% 1113.02%Others 100.00% 0.00% 0.00% 66.72% 15.09%

TRADE DEBTS 100.00% 239.41% 56.88% 43.67% 60.12%

177

Unsecured 100.00% 104.98% 113.46% 67.62% 20.34%Considered goods 100.00% 105.34% 114.41% 34.89% 0.00%

Considered doubtful 100.00% 100.00% 100.00% 532.74% 309.38%Secure-considered goods 100.00% 371.96% 0.00% 52.34% 119.55%

Less: Provision for doubtful debts 100.00% 100.00% 100.00% 532.74% 309.38%STOCK IN TRADE 100.00% 90.80% 235.54% 297.58% 373.52%

Raw and packing material 100.00% 121.32% 184.00% 157.19% 205.41%Work in process 100.00% 41.87% 337.42% 415.05% 549.44%Finished goods 100.00% 138.80% 125.74% 237.21% 248.67%

STORES, SPARES AND LOOSE TOOLS 100.00% 182.60% 248.68% 237.47% 459.77%Stores 100.00% 149.83% 276.30% 86.30% 578.20%Spares 100.00% 206.65% 236.79% 333.02% 404.46%

Loose tools 100.00% 114.73% 168.79% 175.80% 188.62%DEFERRED TAX ASSETS - NET 100.00% 59.14% 0.00% 0.00% 0.00%

LONG TERM DEPOSITS 100.00% 127.35% 127.35% 127.35% 127.35%Islamabad Electric Supply Company Limited 100.00% 100.00% 100.00% 100.00% 100.00%

Sui Northern Gas Pipelines Limited 100.00% 166.74% 166.74% 166.74% 166.74%LONG TERM ADVANCES - Considered goods 100.00% 100.00% 90.00% 80.00%

Sui Northern Gas Pipelines Limited 100.00% 90.00%Less: Amount receivables within 12 months shown under current assets 100.00% 100.00%

FIXED ASSETS - Tangible: 100.00% 98.50% 96.49% 92.88% 150.27%Property, Plant and equipment 100.00% 98.50% 96.49% 92.88% 150.27%

Total Assets 100.00% 105.30% 104.87% 108.30% 210.72%

CURRENT LIABILITIES 100.00% 324.35% 340.54% 387.59% 659.68%Current portion of long term financing: 100.00% 639.24% 635.78% 635.78% 635.78%

Short term borrowings - secured: 100.00% 76.52% 121.57% 446.25%Markup accrued: 100.00% 528.15% 455.16% 368.03% 252.71%

Trade and other payables: 100.00% 101.19% 154.54% 171.92% 181.01%Creditors 100.00% 100.70% 130.91% 179.11% 144.57%

Accrued liabilities 100.00% 105.82% 100.07% 187.35% 275.43%Retention money 100.00% 97.36% 118.71% 110.79% 143.42%Security deposits 100.00% 113.82% 149.19% 153.37% 144.98%

Advances from customers 100.00% 183.57% 254.07% 293.11% 178.82%Workers' (Profit) Participation Fund 100.00% 234.20% 103.84% 61.11%

Workers' Welfare fund 100.00% 157.67%Sales tax payable- net 100.00% 140.33% 175.91% 146.16% 0.00%Excise duty payable 100.00% 6098.28% 17696.55% 14796.55% 99360.34%

Other liabilities 100.00% 7.21% 11.09% 49.87% 55.52%Compensated absences 100.00% 10.67% 10.84%

Unclaimed dividend 100.00% 275.43% 107.67%NON - CURRENT LIABILITIES 100.00% 71.33% 45.80% 33.99% 19.89%

Retention money payables: 100.00%Deferred tax liability - net: 100.00% 157.82% 168.61%

Deferred liability 100.00% 112.29% 19.65% 20.56% 23.51%Long term financing: 100.00% 70.87% 40.04% 24.59% 9.13%

Loans from banking companies - Secured:Habib Bank Limited 100.00% 65.29% 47.11% 28.93%MCB Bank Limited 100.00% 65.29% 47.11% 28.93%United Bank Limited 100.00% 65.29% 47.11% 28.93%

178

Bank Al Falah Limited 100.00% 65.29% 47.11% 28.93%NIB Bank Limited 100.00% 61.40%

PICIC Commercial Bank Limited 100.00% 65.29% 0.00% 0.00%Loan from related party:

Fauji Foundation- Unsecured 100.00% 0.00% 0.00% 0.00%Less: amount payable within 12 months shown under current liabilities 100.00% 99.46% 99.46% 99.46%

SHARE CAPITAL AND RESERVES 100.00% 126.33% 169.28% 192.62% 478.77%Reserves: 100.00% -405.93%

Accumulated loss 100.00% 77.36% 40.43% 0.00% 0.00%Share capital: 100.00% 100.00% 100.00% 100.00% 176.90%

Total Liabilities + Owner's Equity 100.00% 105.30% 104.87% 108.30% 210.72%



As on December….. RS(000)2004 2005 2006 2007 2008

CURRENT ASSETS 9.72% 18.84% 25.48% 30.52% 42.51%Cash and bank balances 3.33% 9.69% 13.67% 6.61% 30.38%

Deposit accounts 2.33% 9.00% 12.88% 6.29% 30.16%Current accounts 0.36% 0.42% 0.79% 0.31% 0.22%

Collection accounts 0.65% 0.27% 0.00% 0.00% 0.00%Cash in hand 0.00% 0.00% 0.00% 0.00% 0.00%

Advances, Deposits, prepayments and other receivables: 1.24% 0.74% 1.13% 13.42% 2.77%To suppliers 0.58% 0.29% 0.51% 12.74% 0.12%

To employees 0.01% 0.01% 0.03% 0.01% 0.02%Due from associated undertaking - unsecured 0.02% 0.02% 0.05% 0.00% 0.00%

Deposits 0.02% 0.02% 0.03% 0.03% 0.05%Prepayments 0.18% 0.07% 0.16% 0.05% 0.03%Excise duty 0.17% 0.05% 0.00% 0.00% 0.00%

Advance tax -net 0.00% 0.13% 0.22% 0.20% 0.19%Sales tax refundable -net 0.06% 0.00% 0.00% 0.00% 0.66%

Derivative foreign currency options used as hedging instrument 0.00% 0.00% 0.00% 0.00% 0.68%Interest accrued 0.04% 0.02% 0.09% 0.08% 0.12%

Prepaid arrangement fee for loans 0.00% 0.00% 0.00% 0.17% 0.60%Margin on letters of credit 0.00% 0.00% 0.00% 0.00% 0.24%

Other receivables- Considered goods 0.01% 0.13% 0.05% 0.03% 0.06%Others 0.16% 0.00% 0.00% 0.10% 0.01%

TRADE DEBTS 0.76% 1.72% 0.41% 0.31% 0.22%Unsecured 0.40% 0.40% 0.44% 0.25% 0.04%

Considered goods 0.38% 0.38% 0.41% 0.12% 0.00%Considered doubtful 0.03% 0.03% 0.03% 0.13% 0.04%

Secure-considered goods 0.38% 1.35% 0.00% 0.18% 0.22%Less: Provision for doubtful debts -0.03% -0.03% -0.03% -0.13% -0.04%

179

STOCK IN TRADE 1.04% 0.90% 2.34% 2.86% 1.85%Raw and packing material 0.26% 0.30% 0.45% 0.37% 0.25%

Work in process 0.47% 0.19% 1.51% 1.80% 1.22%Finished goods 0.31% 0.42% 0.38% 0.69% 0.37%

STORES, SPARES AND LOOSE TOOLS 3.34% 5.79% 7.92% 7.32% 7.29%Stores 1.22% 1.73% 3.20% 0.97% 3.34%Spares 2.00% 3.93% 4.52% 6.16% 3.84%

Loose tools 0.12% 0.13% 0.20% 0.20% 0.11%DEFERRED TAX ASSETS - NET 9.64% 5.42% 0.00% 0.00% 0.00%

LONG TERM DEPOSITS 0.62% 0.75% 0.75% 0.73% 0.37%Islamabad Electric Supply Company Limited 0.37% 0.35% 0.35% 0.34% 0.17%

Sui Northern Gas Pipelines Limited 0.25% 0.40% 0.40% 0.39% 0.20%LONG TERM ADVANCES - Considered goods 0.00% 0.14% 0.15% 0.13% 0.06%

Sui Northern Gas Pipelines Limited 0.00% 0.00% 0.00% 0.14% 0.07%Less: Amount receivables within 12 months shown under current assets 0.00% 0.00% 0.00% -0.01% -0.01%

FIXED ASSETS - Tangible: 80.02% 74.85% 73.62% 68.62% 57.06%Property, Plant and equipment 80.02% 74.85% 73.62% 68.62% 57.06%

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00%

CURRENT LIABILITIES 6.30% 19.39% 20.44% 22.53% 19.71%Current portion of long term financing: 1.46% 8.89% 8.87% 8.59% 4.42%

Short term borrowings - secured: 0.00% 4.96% 3.81% 5.87% 11.07%Markup accrued: 0.22% 1.11% 0.96% 0.76% 0.27%

Trade and other payables: 4.61% 4.43% 6.79% 7.32% 3.96%Creditors 0.77% 0.74% 0.96% 1.28% 0.53%

Accrued liabilities 1.07% 1.08% 1.02% 1.86% 1.40%Retention money 0.18% 0.17% 0.21% 0.19% 0.12%Security deposits 0.43% 0.47% 0.61% 0.61% 0.30%

Advances from customers 0.39% 0.68% 0.95% 1.06% 0.33%Workers' (Profit) Participation Fund 0.00% 0.64% 1.51% 0.65% 0.20%

Workers' Welfare fund 0.00% 0.00% 0.00% 0.25% 0.20%Sales tax payable- net 0.38% 0.50% 0.63% 0.51% 0.00%Excise duty payable 0.00% 0.06% 0.17% 0.13% 0.46%

Other liabilities 1.38% 0.09% 0.15% 0.64% 0.36%Compensated absences 0.00% 0.00% 0.55% 0.06% 0.03%

Unclaimed dividend 0.00% 0.00% 0.03% 0.09% 0.02%NON - CURRENT LIABILITIES 60.89% 41.25% 26.59% 19.11% 5.75%

Retention money payables: 0.00% 0.00% 0.00% 0.00% 0.15%Deferred tax liability - net: 0.00% 0.00% 3.47% 5.31% 2.92%

Deferred liability 0.68% 0.73% 0.13% 0.13% 0.08%Long term financing: 60.21% 40.52% 22.99% 13.67% 2.61%

Loans from banking companies - Secured:Habib Bank Limited 0.00% 14.73% 9.66% 6.75% 2.13%MCB Bank Limited 0.00% 14.73% 9.66% 6.75% 2.13%United Bank Limited 0.00% 7.36% 4.83% 3.37% 1.06%

Bank Al Falah Limited 0.00% 7.36% 4.83% 3.37% 1.06%NIB Bank Limited 0.00% 0.00% 0.00% 2.02% 0.64%

180

PICIC Commercial Bank Limited 0.00% 4.42% 2.90% 0.00% 0.00%Loan from related party:

Fauji Foundation- Unsecured 0.00% 0.80% 0.00% 0.00% 0.00%Less: amount payable within 12 months shown under current liabilities 0.00% -8.89% -8.87% -8.59% -4.42%

SHARE CAPITAL AND RESERVES 32.81% 39.36% 52.96% 58.36% 74.54%Reserves: 0.00% 0.00% 0.00% -7.17% 14.97%

Accumulated loss -38.16% -28.03% -14.71% 0.00% 0.00%Share capital: 70.97% 67.39% 67.67% 65.53% 59.58%

Total Liabilities + Owner's Equity 100.00% 100.00% 100.00% 100.00% 100.00%




Sales 100.00% 120.76% 175.02% 147.20% 146.25%Less: Government Levies 100.00% 113.16% 146.93% 138.46% 126.53%

Net Sales 100.00% 123.90% 186.66% 150.82% 154.42% Cost of sales 100.00% 113.38% 134.69% 152.49% 185.66%

Raw material Consumed 100.00% 118.80% 178.66% 204.39% 197.47%Packing material consumed 100.00% 95.18% 117.61% 142.21% 181.31%Stores and spares consumed 100.00% 124.37% 114.51% 211.37% 206.51%

Spares written off 100.00% 5.02% 0.00%Salaries, wages and benefits 100.00% 95.40% 155.63% 146.55% 146.19%

Rent, rates and taxes 100.00% 144.75% 269.12% 232.46% 555.04%Insurance 100.00% 121.17% 85.05% 82.86% 81.91%

Fuel consumed 100.00% 123.95% 149.47% 173.41% 255.39%Power consumed 100.00% 107.21% 127.01% 139.21% 145.60%

Depreciation 100.00% 103.67% 107.62% 113.65% 119.51%Others 100.00% 114.80% 165.96% 174.47% 135.68%

100.00% 112.19% 139.05% 154.36% 188.03%Add: Opening work-in-process 100.00% 477.24% 199.83% 1610.30% 1980.76%Less: Closing work-in-process 100.00% 41.87% 337.42% 415.05% 549.44%Cost of goods manufactured 100.00% 114.84% 135.70% 155.16% 188.29%Add: Opening finished goods 100.00% 58.18% 80.75% 73.16% 138.01%Less: Closing finished goods 100.00% 138.80% 125.75% 237.21% 248.67%

100.00% 113.38% 134.69% 152.49% 186.53%Less: Own consumption capitalized 100.00%

100.00% 113.38% 134.69% 152.49% 185.66%Gross profit 100.00% 146.00% 295.77% 147.34% 88.84%

181

Other income 100.00% 26.24% 101.35% 172.74% 251.67%Distribution cost: 100.00% 104.49% 155.24% 199.08% 261.48%

Salaries, wages and benefits 100.00% 92.29% 178.07% 171.93% 156.45%Export freight and other charges 100.00%

Traveling and entertainment 100.00% 179.59% 143.91% 68.18% 108.99%Vehicle running and maintenance expenses 100.00% 59.78%

Rent, rates and taxes 100.00% 102.45% 97.20% 118.27% 128.32%Repairs and maintenance 100.00% 212.17% 152.07% 42.09% 70.07%Printing and stationery 100.00% 125.74% 79.17% 81.73% 107.07%


Administrative expenses: 100.00% 106.97% 168.53% 180.35% 193.49%Salaries, wages and benefits 100.00% 100.08% 163.46% 194.52% 188.63%Traveling and entertainment 100.00% 161.67% 232.29% 169.85% 364.49%

Vehicle running and maintenance expenses 100.00% 89.94%Insurance 100.00% 114.10% 170.51% 190.38% 192.95%



Other Operating expenses: 100.00% 7597.19% 17659.85% 10900.19% 6433.40%Audits' remuneration 100.00% 102.06% 106.00% 99.44% 112.57%

Workers' (Profit) Participation Fund 100.00% 234.20% 103.84% 61.11%Workers' Welfare Fund 100.00% 57.67%

Finance Cost: 100.00% 112.44% 129.42% 101.41% 71.96%Fee and charges on loans 100.00% 90.95% 4.30% 4.30% 4.30%

Interest/mark-up on long term finance 100.00% 306.65% 443.15% 350.01% 226.66%Interest/mark-up on long term loan from related

party 100.00% 364.83% 52.23% 0.00% 0.00%Interest on short term borrowings and other

charges 100.00% 25.16% 17.90% 266.75%Interest on Workers' Profit Participation Fund 100.00% 3.13% 0.00%

Guarantee commission 100.00% 28.76% 0.43% 0.87% 0.59%Bank charges and commission 100.00% 77.84% 104.45% 90.39% 93.31%

Foreign exchange risk insurance(FERI) contract 100.00% 0.00% 0.00% 0.00% 0.00%Amortization of deferred cost 100.00% 0.00% 0.00% 0.00% 0.00%

Net profit before taxation 100.00% -311.99% -730.69% -323.97% -186.84%Less: Taxation 100.00% -44.59% -102.96% -25.45% -7.35%

Net profit after taxation 100.00% 162.50% 383.17% 205.74% 131.66%

182




Sales 100.00% 100.00% 100.00% 100.00% 100.00%Less: Government Levies -29.29% -27.45% -24.59% -27.55% -25.34%

Net Sales 70.71% 72.55% 75.41% 72.45% 74.66%Less: Cost of sales 47.90% 44.97% 36.86% 49.62% 60.81%

Raw material Consumed 3.55% 3.49% 3.62% 4.92% 4.79%Packing material consumed 4.79% 3.77% 3.22% 4.63% 5.94%Stores and spares consumed 0.16% 0.17% 0.11% 0.23% 0.23%

Spares written off 0.00% 0.00% 0.33% 0.02% 0.00%Salaries, wages and benefits 2.81% 2.22% 2.50% 2.80% 2.81%

Rent, rates and taxes 0.03% 0.04% 0.05% 0.05% 0.11%Insurance 0.46% 0.46% 0.22% 0.26% 0.26%

Fuel consumed 17.39% 17.85% 14.85% 20.48% 30.36%Power consumed 9.55% 8.48% 6.93% 9.03% 9.51%


48.16% 44.75% 38.26% 50.50% 61.92%Add: Opening work-in-process 0.18% 0.71% 0.20% 1.96% 2.43%Less: Closing work-in-process -0.85% -0.30% -1.65% -2.41% -3.21%Cost of goods manufactured 47.49% 45.16% 36.82% 50.05% 61.14%Add: Opening finished goods 0.99% 0.47% 0.45% 0.49% 0.93%Less: Closing finished goods -0.57% -0.66% -0.41% -0.92% -0.97%

47.90% 44.97% 36.86% 49.62% 61.09%Less: Own consumption capitalized 0.00% 0.00% 0.00% 0.00% -0.28%

47.90% 44.97% 36.86% 49.62% 60.81%Gross profit 22.81% 27.58% 38.55% 22.83% 13.86%

Other income 1.32% 0.29% 0.76% 1.54% 2.27%

183

Distribution cost: 0.63% 0.54% 0.56% 0.85% 1.12%Salaries, wages and benefits 0.37% 0.28% 0.38% 0.43% 0.40%

Export freight and other charges 0.00% 0.00% 0.00% 0.00% 0.52%Traveling and entertainment 0.03% 0.05% 0.03% 0.01% 0.02%

Vehicle running and maintenance expenses 0.00% 0.00% 0.00% 0.06% 0.03%Rent, rates and taxes 0.04% 0.03% 0.02% 0.03% 0.03%

Repairs and maintenance 0.01% 0.02% 0.01% 0.00% 0.01%Printing and stationery 0.02% 0.02% 0.01% 0.01% 0.01%


Administrative expenses: 1.22% 1.08% 1.17% 1.49% 1.61%Salaries, wages and benefits 0.67% 0.56% 0.63% 0.89% 0.87%Traveling and entertainment 0.06% 0.08% 0.08% 0.07% 0.16%

Vehicle running and maintenance expenses 0.00% 0.00% 0.00% 0.05% 0.05%Insurance 0.01% 0.01% 0.01% 0.01% 0.01%



Other Operating expenses: 0.02% 1.03% 1.66% 1.22% 0.72%Audits' remuneration 0.02% 0.01% 0.01% 0.01% 0.01%

Workers' (Profit) Participation Fund 0.00% 1.02% 1.65% 0.87% 0.51%Workers' Welfare Fund 0.00% 0.00% 0.00% 0.34% 0.20%

Finance Cost: 6.29% 5.86% 4.65% 4.33% 3.09%Fee and charges on loans 0.36% 0.27% 0.01% 0.01% 0.01%

Interest/mark-up on long term finance 1.77% 4.48% 4.47% 4.20% 2.74%Interest/mark-up on long term loan from related

party 0.03% 0.08% 0.01% 0.00% 0.00%Interest on short term borrowings and other charges 0.00% 0.11% 0.02% 0.02% 0.24%

Interest on Workers' Profit Participation Fund 0.00% 0.00% 0.05% 0.00% 0.00%Guarantee commission 3.45% 0.82% 0.01% 0.02% 0.01%

Bank charges and commission 0.14% 0.09% 0.08% 0.09% 0.09%Foreign exchange risk insurance(FERI) contract 0.55% 0.00% 0.00% 0.00% 0.00%

Amortization of deferred cost 23.47% 0.00% 0.00% 0.00% 0.00%Net profit before taxation -7.49% 19.36% 31.28% 16.49% 9.57%

Less: Taxation 17.17% -6.34% -10.10% -2.97% -0.86%Net profit after taxation 9.67% 13.02% 21.18% 13.52% 8.71%

184

Ratio Analysis

2004 2005 2006 2007 2008Net Working Capital 202344 -34181 312184 511240 2839322Current Ratio 1.54 0.97 1.25 1.35 2.16Acid Ratio 1.38 0.93 1.13 1.23 2.06Cash Ratio 0.53 0.50 0.67 0.29 1.54 Debt/Equity Ratio 3.05 2.54 1.89 1.71 1.34Debt to tangible net worth 3.05 2.54 1.89 1.71 1.34Day's Sales in account receivable 7.119486236 13.75653702 2.169406351 2.061243623 2.771750319Account Receivable Turn Over 51.26774431 26.53284032 168.2487929 177.0775642 131.6857429Day's sales in inventory 14.45538049 11.57586584 25.27788425 28.20985054 29.08192251Inventory turnover 61.46396112 79.34345616 85.08414897 70.20863182 63.85666586Net profit margin 13.68% 17.94% 28.08% 18.66% 11.66%Total asset turnover 0.39 0.46 0.69 0.54 0.28Return on asset 5.32% 8.20% 19.42% 10.10% 3.32%Operating income margin 1.70% 34.75% 47.64% 28.74% 16.96%Return on Sales to fixed assets 0.485537677 0.610772192 0.939300894 0.788462703 0.498959066Return on total equity 16.20% 20.84% 36.67% 17.30% 4.45%Gross profit margin 32.26% 38.01% 51.12% 31.52% 18.56%Degree of financial leverage 0.20 0.68 0.56 0.70

Earning per common share 0.85 1.38 3.25 1.73 0.85Price/earning ratio 18.89 10.48 6.75 13.17 20.91

185

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