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Common Size / Verticle AnalysisKashmir Edible Oils Limited - Balance Sheet

Assets 2001 2002 2003 2004 2005 200

Cash & Banks 8,293,097 100,587,785 7,805,161 10,484,357 10,870,942 2

Accounts Receivables 6,451,548 2,786,257 205,569 15,911,828 1,692,232

Invetory 106,921,756 127,277,389 119,282,984 116,224,860 20,092,443 29

Current Assets Others 22,355,163 42,387,978 54,802,297 58,776,781 44,576,828 6

Total Current Assets 144,021,564 273,039,409 182,096,011 201,397,826 77,232,445 39

Fixed Assets Net 221,737,590 214,199,365 212,592,290 229,513,266 230,539,794 60

Other Longterm Assets 104,486 507,185 578,685 940,765 668,285 0

Total Assets 365,863,640 487,745,959 395,266,986 431,851,857 308,440,524 100

Liabilities

Accounts & Bills Payables 2,755,301 153,788,300 2,599,349 73,427,723 1,754,359 0

Other Current Liabilities 89,398,088 55,222,133 117,556,759 76,683,284 62,821,243 24

Total Current Liabilities 92,153,389 209,010,433 120,156,108 150,111,007 64,575,602 25

Deffered Liabilities 1,874,600 1,711,997 31,408,931 31,806,028 32,139,635 0

Long Term Debts 190,461,989 183,039,281 158,289,281 15,000,000 - 52

Surplus on Revaluation 52,233,851 51,758,367 27,671,252 26,264,622 24,333,281 14

Total Liabilities 336,723,829 445,520,078 337,525,572 223,181,657 121,048,518 92

Share Capital 80,000,000 80,000,000 80,000,000 80,000,000 80,000,000

Accumulated Profit (Loss) (50,860,193) (37,784,119) (22,258,584) 128,670,200 107,692,006 Total Shareholder`s Equity 29,139,807 42,215,881 57,741,416 208,670,200 187,692,006 7

Total Liabilities & Share Equity 365,863,636 487,735,959 395,266,988 431,851,857 308,740,524 100

Kashmir Edible Oils Limited - Income Statement

2001 2002 2003 2004 2005 200

Sales 829,582,104 723,129,370 892,093,101 848,182,252 396,373,489 100

Cost of Sales 779,132,005 671,766,118 850,607,432 816,028,743 407,751,591 93

Gross Profit / (Loss) 50,450,099 51,363,252 41,485,669 32,153,509 (11,378,102) 6

Selling & Admin Expenses 8,518,748 13,151,612 12,889,474 14,223,499 11,715,487

Operating Profit 41,931,351 38,211,640 28,596,195 17,930,010 (23,093,589) 5

Other Income 426,507 1,427,727 1,623,794 528,679 57,423 0

Profit Before Interest & Taxes 42,357,858 39,639,367 30,219,989 18,458,689 (23,036,166) 5

Interest 37,023,237 22,937,944 4,989,479 9,206,816 7,046,755 4

Profit Before Taxes 5,334,621 16,701,423 25,230,510 9,251,873 (30,082,921) 0

Income Tax 4,158,381 3,625,349 19,556,049 4,300,000 2,082,185 0

Profit After Taxes 1,176,240 13,076,074 5,674,461 4,951,873 (32,165,106) 0

Profit from Extra-Ordinary Activities - - - 144,570,281 9,255,571

Net Profit / (Loss) 1,176,240 13,076,074 5,674,461 149,522,154 (22,909,535) 0

TABLE 3-1

Regular (In Rupees)

Regular (In Rupees)



2005

3.52

0.55

6.52

14.45

25.04

74.74

0.22

100.00

0.57

20.35

20.92

10.41

-

7.88

39.21

60.79

100.00

2005

100.00

102.87

(2.87)

2.96

(5.83)

0.01

(5.81)

1.78

(7.59)

0.53

(8.11)

2.34

(5.78)



Index / Horizontal AnalysisKashmir Edible Oils Limited - Balance Sheet

Assets 2001 2002 2003 2004 2005 2001

Cash & Banks 8,293,097 100,587,785 7,805,161 10,484,357 10,870,942 100.00

Accounts Receivables 6,451,548 2,786,257 205,569 15,911,828 1,692,232 100.00

Invetory 106,921,756 127,277,389 119,282,984 116,224,860 20,092,443 100.00

Current Assets Others 22,355,163 42,387,978 54,802,297 58,776,781 44,576,828 100.00Total Current Assets 144,021,564 273,039,409 182,096,011 201,397,826 77,232,445 100.00

Fixed Assets Net 221,737,590 214,199,365 212,592,290 229,513,266 230,539,794 100.00

Other Longterm Assets 104,486 507,185 578,685 940,765 668,285 100.00

Total Assets 365,863,640 487,745,959 395,266,986 431,851,857 308,440,524 100.00

Liabilities

Accounts & Bills Payables 2,755,301 153,788,300 2,599,349 73,427,723 1,754,359 100.00

Other Current Liabilities 89,398,088 55,222,133 117,556,759 76,683,284 62,821,243 100.00

Total Current Liabilities 92,153,389 209,010,433 120,156,108 150,111,007 64,575,602 100.00

Deffered Liabilities 1,874,600 1,711,997 31,408,931 31,806,028 32,139,635 100.00

Long Term Debts 190,461,989 183,039,281 158,289,281 15,000,000 - 100.00

Surplus on Revaluation 52,233,851 51,758,367 27,671,252 26,264,622 24,333,281 100.00

Total Liabilities 336,723,829 445,520,078 337,525,572 223,181,657 121,048,518 100.00

Share Capital 80,000,000 80,000,000 80,000,000 80,000,000 80,000,000 Accumulated Profit (Loss) (50,860,193) (37,784,119) (22,258,584) 128,670,200 107,692,006

Total Shareholder`s Equity 29,139,807 42,215,881 57,741,416 208,670,200 187,692,006 100.00

Total Liabilities & Share Equity 365,863,636 487,735,959 395,266,988 431,851,857 308,740,524 100.00

Kashmir Edible Oils Limited - Income Statement

2001 2002 2003 2004 2005 2001

Sales 829,582,104 723,129,370 892,093,101 848,182,252 396,373,489 100.00

Cost of Sales 779,132,005 671,766,118 850,607,432 816,028,743 407,751,591 100.00

Gross Profit / (Loss) 50,450,099 51,363,252 41,485,669 32,153,509 (11,378,102) 100.00

Selling & Admin Expenses 8,518,748 13,151,612 12,889,474 14,223,499 11,715,487 100.00

Operating Profit 41,931,351 38,211,640 28,596,195 17,930,010 (23,093,589) 100.00

Other Income 426,507 1,427,727 1,623,794 528,679 57,423 100.00

Profit Before Interest & Taxes 42,357,858 39,639,367 30,219,989 18,458,689 (23,036,166) 100.00

Interest 37,023,237 22,937,944 4,989,479 9,206,816 7,046,755 100.00

Profit Before Taxes 5,334,621 16,701,423 25,230,510 9,251,873 (30,082,921) 100.00

I. Tax 4,158,381 3,625,349 19,556,049 4,300,000 2,082,185 100.00

Profit After Taxes 1,176,240 13,076,074 5,674,461 4,951,873 (32,165,106) 100.00

Profit from Extra-Ordinary Activities - - - 144,570,281 9,255,571 -

Net Profit / (Loss) 1,176,240 13,076,074 5,674,461 149,522,154 (22,909,535) 100.00

TABLE 2-1

Regular (in Rupees)

Regular (In Rupees)



2005

131.08

26.23

18.79

199.40 53.63

103.97

639.59

84.30

63.67

70.27

70.07

1,714.48

-

46.59

35.95

644.11

84.39

2005

47.78

52.33

(22.55)

137.53

(55.07)

13.46

(54.38)

19.03

(563.92)

50.07

(2,734.57)

-

(1,947.69)



2005 2004 2003

92,532,445 201,397,826 182,096,011

64,575,602 135,111,007 120,156,106

Current Ratio 1.43 1.49 1.52

*Note- Quick Assets = Current Assets -

2005 2004 200372,440,002 85,172,966 62,813,027

64,575,602 135,111,007 120,156,106

Acid Test Ratio 1.12 0.63 0.52

*Note- Total Debts = Long Term Deb

2005 2004 2003

64,575,602 165,111,007 278,445,387 187,692,006 208,670,200 57,741,416

Debt to Equity Ratio 0.34 0.79 4.82

2005 2004 2003

64,575,602 165,111,007 278,445,387

323,740,524 431,851,857 395,266,986

Debt to Equity Ratio 0.20 0.38 0.70

2005 2004 2003

22,731,087 155,273,533 30,273,789

Earning Before Interest and Taxes

Interest Expenses

Acid Test Ratio Liquid (Quick) Assets*

Current Liabilities

Debt to Equity

Ratio

Total Debts*

Shareholder`s Equity

Current Ratio =Current Assets

Current Liabilities

Debts to Total

Assets Ratio

Total Debts

Total Assets

Coverage Ratio



7,351,834 9,423,329 5,079,279

Coverage Ratio 3.09 16.48 5.96

*Note- We assume Net sales as Annual

2005 2004 2003

396,373,489 848,182,252 892,093,101

15,281,607 109,241,213 113,385,812

Receiveable Turnover Ratio 25.94 7.76 7.87

2005 2004 2003

365 365 365

25.94 7.76 7.87

RTD (Days) 14.07 47.04 46.38

2005 2004 2003

353,488,748 704,763,955 794,989,522 1,754,359 73,427,723 2,599,349

Payable Turnover Ratio 201.49 9.60 305.84

2005 2004 2003

365 365 365

201.49 9.60 305.84

PTD (Days) 2 38 1

2005 2004 2003

407,751,591 816,028,743 850,607,432

Payable Turn over in

days (PTD)

Days in the Year

Payable Turnover

Inventory Turnover

Ratio

Cost of Goods Sold

Inventory

Receivable Turn over

Ratio in Days(RTD)

Days in the Year

Receivable Turnover(RT)

Payable Turn over

Ratio

Annual Credit Purchases

Accounts Payables

Receivable Turn

over Ratio (RT)

Annual Net Credit Sales*

Receivables



15,281,607 109,241,213 113,385,812

Invertory TurnOver Ratio 26.68 7.47 7.50

2005 2004 2003

365 365 365

26.68 7.47 7.50

ITD (Days) 14 49 49

2005 2004 2003396,373,489 848,782,252 892,093,101

323,740,524 431,851,857 395,266,986

Total Assets Turnover 1.22 1.97 2.26

2005 2004 2003

(11,378,102) 32,153,509 41,485,669

396,373,489 848,182,252 892,093,101 Profitability Ratio - Sales -2.87% 3.79% 4.65%

2005 2004 2003

(22,909,575) 149,522,154 5,674,461

396,373,489 848,182,252 892,093,101

Net Profit Margin -5.78% 17.63% 0.64%

2005 2004 2003

(22,909,575) 149,522,154 5,674,461

323,740,524 431,851,857 395,266,896

Profitability Ratio in

Relation to Investment

Net Profit after Taxes

Total Assets

Profitability Ratio in

Relation to Sales

Net Sales - Cost of Goods Sold (Gros

Net Sales

Net Profit Margin Net Profit after Taxes

Net Sales

Inventory Turnover

in Days

Days in theYear

Inventory Turnover

Total Assets (or

Capital) TurnOver

Net Sales

Total Assets



Profit Ratio-Investment -7.08% 34.62% 1.44%

2005 2004 2003

(22,909,575) 149,522,154 5,674,461

187,695,006 208,670,200 57,741,416

Return on Equity -12.21% 71.65% 9.83%

Return on Equity Net Profit after Taxes




2002 2001

273,039,409 144,021,561

209,020,433 130,453,793

1.31 1.10

Inventories

2002 2001145,762,020 37,099,808

209,020,433 130,453,793

0.70 0.28

ts + Current Liabilities

2002 2001

392,059,714 282,615,378 42,215,881 29,139,807

9.29 9.70

2002 2001

392,059,714 282,615,378

487,039,409 365,863,363

0.80 0.77

2002 2001

39,639,367 42,357,858

(EBIT)



22,937,944 37,023,237

1.73 1.14

et Credit Sales

2002 2001

723,129,370 829,582,104

2,786,257 6,451,548

259.53 128.59

2002 2001

365 365

259.53 128.59

1.41 2.84

2002 2001

649,065,255 740,322,024 153,798,300 2,755,301

4.22 268.69

2002 2001

365 365

4.22 268.69

86 1

2002 2001

671,766,118 779,132,005



120,707,164 99,301,000

5.57 7.85

2002 2001

365 365

5.70 7.85

64 46

2002 2001723,129,370 829,582,104

487,745,959 365,863,636

1.48 2.27

2002 2001

51,363,252 50,450,049

723,129,370 829,582,104 7.10% 6.08%

2002 2001

13,076,074 1,176,240

723,129,370 829,582,104

1.81% 0.14%

2002 2001

13,076,074 1,176,240

487,745,959 365,863,636

X 100

X 100s Profit)

X 100



2.68% 0.32%

2002 2001

13,076,074 1,176,240

42,215,881 29,139,807

30.97% 4.04%



2001 2002 2003 2004 2005

144,021,561 273,039,409 182,096,011 201,397,826 92,532,445

130,453,793 209,020,433 120,156,106 135,111,007 64,575,602

Current Ratio 1.10 1.31 1.52 1.49 1.43

*Note- Quick Assets = Current Assets - Inventories

2001 2002 2003 2004 2005

37,099,808 145,762,020 62,813,027 85,172,966 72,440,002

130,453,793 209,020,433 120,156,106 135,111,007 64,575,602

Acid Test Ratio 0.28 0.70 0.52 0.63 1.12

*Note- Total Debts = Long Term Debts + Current Liabilities

2001 2002 2003 2004 2005

282,615,378 392,059,714 278,445,387 165,111,007 64,575,602

29,139,807 42,215,881 57,741,416 208,670,200 ##########

Debt to Equity Ratio 9.70 9.29 4.82 0.79 0.34

2001 2002 2003 2004 2005

282,615,378 392,059,714 278,445,387 165,111,007 64,575,602

365,863,363 487,039,409 395,266,986 431,851,857 ##########

Debt to Equity Ratio 0.77 0.80 0.70 0.38 0.20

2001 2002 2003 2004 2005

42,357,858 39,639,367 30,273,789 155,273,533 22,731,087

37,023,237 22,937,944 5,079,279 9,423,329 7,351,834

Coverage Ratio 1.14 1.73 5.96 16.48 3.09

*Note- We assume Net sales as Annual Net Credit Sales

2001 2002 2003 2004 2005

829,582,104 723,129,370 892,093,101 848,182,252 ##########

4,427,124 4,618,903 1,495,913 8,058,699 16,452,030

RT Ratio 187.39 156.56 596.35 105.25 24.09

Current Ratio =Current Assets

Current Liabilities

Receivable Turn

over Ratio (RT) =

Annual Net Credit Sales*

Receivables

Debts to Total Assets

Ratio =

Total Debts

Total Assets

Interest Coverage

Ratio =

Earning Before Interest and Taxes (EBIT)

Interest Expenses

Acid Test (Quick)

Ratio =

Liquid (Quick) Assets*

Current Liabilities

Debt to Equity Ratio = Total Debts*Shareholder`s Equity



2001 2002 2003 2004 2005

365 365 365 365 365

187.39 156.56 596.35 105.25 24.09

RTD (Days) 2 2 1 3 15

2001 2002 2003 2004 2005

625,980,838 649,150,365 795,074,632 704,849,065 ##########

36,398,665 78,276,801 78,198,825 38,013,536 37,591,041

Payable Turnover Ratio 17.20 8.29 10.17 18.54 9.40

2001 2002 2003 2004 2005

365 365 365 365 365

17.20 8.29 10.17 18.54 9.40

PTD (Days) 21 44 36 20 39

2001 2002 2003 2004 2005

779,132,005 671,766,118 850,607,432 816,028,743 ##########

126,943,145 110,004,082 117,046,488 111,313,513 62,261,410

Invertory TurnOver Ratio 6.14 6.11 7.27 7.33 6.55

2001 2002 2003 2004 2005

365 365 365 365 365

6.14 6.11 7.27 7.33 6.55

ITD (Days) 59 60 50 50 56

2001 2002 2003 2004 2005

829,582,104 723,129,370 892,093,101 848,782,252 ##########

365,863,636 487,745,959 395,266,986 431,851,857 ##########

Total Assets Turnover 2.27 1.48 2.26 1.97 1.22

Receivable Turn

over Ratio in =

Da s(RTD)

Days in the Year

Receivable Turnover(RT)

Payable Turn over

Ratio =

Annual Credit Purchases

Accounts Payables

Payable Turn over

in days (PTD) =

Days in the Year

Payable Turnover

Inventory Turnover

Ratio =

Cost of Goods Sold

Inventory

Net Sales - Cost of Goods Sold (Gross Profit)

Inventory Turnover

in Days

Days in theYear

Inventory Turnover

Total Assets (or =

Capital) TurnOver

Net Sales

Total Assets



2001 2002 2003 2004 2005

50,450,049 51,363,252 41,485,669 32,153,509 (11,378,102)

829,582,104 723,129,370 892,093,101 848,182,252 ##########

Profitability Ratio - Sales 6.08% 7.10% 4.65% 3.79% -2.87%

2001 2002 2003 2004 2005

1,176,240 13,076,074 5,674,461 149,522,154 (22,909,575)

829,582,104 723,129,370 892,093,101 848,182,252 ##########

Net Profit Margin 0.14% 1.81% 0.64% 17.63% -5.78%

2001 2002 2003 2004 2005

1,176,240 13,076,074 5,674,461 149,522,154 (22,909,575)365,863,636 487,745,959 395,266,896 431,851,857 ##########

Profit Ratio-Investment 0.32% 2.68% 1.44% 34.62% -7.08%

2001 2002 2003 2004 2005

1,176,240 13,076,074 5,674,461 149,522,154 (22,909,575)

29,139,807 42,215,881 57,741,416 208,670,200 ##########

Return on Equity 4.04% 30.97% 9.83% 71.65% -12.21%

Net Sales

Net Profit Margin = Net Profit after Taxes

Net Sales X 100

Return on Equity = Net Profit after Taxes


Profitability Ratio in =

Relation to Investment

Net Profit after Taxes

Total Assets X 100



SS Oil Mills Ltd & Punjab Oil Mills Ltd

Industry Median

Current Ratios 1.14

Acid Test Ratio 0.46

Debt to Equity Ratio 2.29

Debt to Total Assets 0.53

Interest Coverage Ratio -0.07

Receivable Turnover Ratio 25.65

Receivable Turnover Days 14 Days

Payable Turnover Ratio 20.17

Payable Turnover Days 18 Days

Inventory Turnover Ratio 6.64

Inventory Turnover Days 55 Days

Total Assets Turnover Days 2.17

Gross Profit Ratio 2.93%

Net Profit Margin -1.62%

Return on Investment -3.51%

Return on Equity -15.17%



Trend AnalysisSelected Financial Ratios of Kashmir Edible Oils Limited for Fiscal Years 2001 - 2005

Industry

Median

2001 2002 2003 2004 2005 2005

Liquidity

Current Ratios 1.10 1.31 1.52 1.49 1.43 1.14Acid Test Ratio 0.28 0.70 0.52 0.63 1.12 0.46

Leverage

Debt to Equity Ratio 9.70 9.29 4.82 0.79 0.34 2.29

Debt to Total Assets 0.77 0.80 0.70 0.38 0.20 0.53

Coverage

Interest Coverage Ratio 1.14 1.73 5.96 16.48 3.09 -0.07

Activity

Receivable Turnover Days 2 2 1 3 15 14 Days

Payable Turnover Days 21 44 36 20 39 18 Days

Inventory Turnover Days 59 60 50 50 56 55 Days

Total Assets Turnover 2.27 1.48 2.26 1.97 1.22 2.17

Profitability

Gross Profit Ratio 6.08% 7.10% 4.65% 3.79% -2.87% 2.93%Net Profit Margin 0.14% 1.81% 0.64% 17.63% -5.78% -1.62%

Return on Investment 0.32% 2.68% 1.44% 34.62% -7.08% -3.51%

Return on Equity 4.04% 30.97% 9.83% 71.65% -12.21% -15.17%

Kashmir Edible Oils Limited

TABLE 4-1



Behaviour of Allocation of funds to different AssetsKashmir Edible Oils Limited for Fiscal Years 2001 - 2005

Assets

2001 2002 2003 2004 2005

Allocation in Amount

Fixed Assets 221,737,590 214,199,365 212,592,290 229,513,266 230,539,794

Long Term Investmetns 104,486 507,185 578,685 940,765 668,285

Current Assets 144,021,564 273,039,409 182,096,011 201,397,826 77,232,445

Total Assets 365,863,640 487,745,959 395,266,986 431,851,857 308,440,524

Allocation in Percentage(%) 2001 2002 2003 2004 2005

Fixed Assets 60.61% 43.92% 53.78% 53.15% 74.74%

Current Assets 39.36% 55.98% 46.07% 46.63% 25.04%

Long Term Investmetns 0.03% 0.10% 0.15% 0.22% 0.22%

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00%

Year

Year

80.00%

Allocation of Funds to Different Assets

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

2001 2002 2003 2004 2005

P e r c e n t a g

e o f F u n d s A l l o c a t i o n

Years

Allocation of Funds to Different Assets

Fixed Assets

Current Assets

Long Term Investmetn



0.00%

20.00%

40.00%

.

2 0 0 1

2 0 0

2

2 0 0

3

2 0 0 4

2 0 0 5

Allocationof Funds

Percentageof Funds

Allocation

Years

Fixed Assets Current Assets Long Term Investmetns



s

financial calculations

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