worldcall pakistann phase 2

8/8/2019 Worldcall Pakistann Phase 2

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Financial Reporting

PresentationWORLDCALL

Presenters: Hafiz Hassan Qureshi, Ali Raza Bashir and M. HarisAbrar

Email: [email protected]


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Total Assets performanceEvaluating Liquidity of Firm

The noncurrentassetsincreasedfrom 78

percent in2005 to 83.3in 2008.

The currentassets aredecreasing

includingcash.Although thethingInventorywhich needed

to decreaseshowing

Assets proportionsIncrease/Decrease

2008 percentages 2007 percentages 2006 percentages 2005 percentages

Non-current Asset 83.1 83.3 76.2 78.3

Current Asset 16.8 16.6 23.8 21.6


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Non Current AssetsComparing Non current assets

The propertyplant and equipmentincreased in aconstant modewhich is as a result

of expansion. Intangibleassets got shorterlife than propertyplant and equipmentthats why there is

decline in intangibleassets due to expiry.

Non-current assetsperformance


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Current AssetsComparing current assets

Theperformanceof thecompany intrade debt is

constant.Company ismaintainingan averageunder five oftotal assets.

The companygot only 10 %

of cash in2005 of totalassets andshowing

decreasingpattern.

Current assetsperformance


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Total LiabilitiesDistribution by Proportion


Total liability 100 100 100100

Current Liabilities 21.2 54.1 32.4 36

Non-Current Liabilities 78.8 55.9 57.6 64


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Current liabilitiesYear to year comparison


Total current liability 21.1 44. 42.335.9

Current Maturities ofNon-Current Liabilities

4.6 14.1 17.22.3

Trade & Other Payables 14.52 19.5 18.4

26


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Current liabilitiesReason of increase or decrease

Sindh High court orderworldcall to deposit 12.6

million rupees in highcourt. Because of thedividend issued in 2005 butnot been paid yet. Thisamount shows a rapiddecrease in current liability

in 2008.

Why Liabilities increase/Decrease

2008 Valuesin percentages

2007 valuesin percentages



Trade & Other Payables 14.52 19.5 18.4 26

Current Maturities ofNon-Current Liabilities

4.6 14.1 17.2 2.3


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Non Current liabilitiesYear to year Comparison

Term Finance Certificatesamounting to Rs. 350million issued duringthe year. That is areason why the Non

current liability show arapid increase in 2008.

The Company hadarranged a long termloan from AmatisLimited ("the lender")

of Rs. 1.497 billion.Which was converted inApril 2008 at a price ofRs. 13.93 per share

Why Liabilities increase/Decrease2008percentages

2007percentages

2006percentages

2005percentages

-Total Noncurrent

liability

78.8 55.9 57.664

Term FinanceCertificates -Secured

46.0 6.4 1.08 0

Long TermFinances 3.6 12.7 23.6 20


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Equity AnalysisIncrease or decrease Equity Why Equity increase/Decrease

The company instead ofpaying the loan backconverting them intoordinary share.

In graph as we can see

finance cost decreaseresult in increase inEquity.


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Operating ActivityProfit before working capital

Why Operating ActivityIncrease/Decrease

Depreciationincreasing rapidlybecause thecompany isinvesting more infixed asset

Provision for debt isincreasing becausethey are givingmuch stuff oncredit to increase

sales

Finance costaccrued isincreasing.

208^207 207^206 206^205perating profits ( . )2 3 ( . )0 2 102

rofit beforeorking capital .1 .7 98


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Operating ActivityProfit before working capital

208^207 207^206 206^205

Depreciation 18.5 31 93.1mortization( +ntangible deffere +ost Transactional

)ost

50.1 (66.8) 100

Finance Cost accrued 31.9 23.8 84


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Change in Working CapitalProfit before working capital

Why Working CapitalIncrease/Decrease

The negative signshows that themost of thecurrent assets areincreasing at

higher speed

The 2006 barincrease morerapidly becausethe increase in

inventory is 98%.So increase ininventory meansdecrease in cash

208^207 207^206 206^205

Total change incapital

34.2 (87) (132 )

tock in trade .1 3 .7 7 98ra de d ebt .18 .1 9 ( . )7 2


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Change in Working CapitalProfit before working capital

2008v2007 2006v2007 2006v2005Sales .3 ( ) 84

tock in trade .1 3 .7 7 98

Why Working CapitalIncrease/Decrease

Firstly the inventorylevel is related toSales. In worldcallcase the sales isnot increasing butinventory is

increasing.

They are facingdifficulty due topoor Marketing oftheir product and

competition

Forecasting methodof sales isincorrect


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Net cash from operating activitiesDividend, Interest and Tax

2008v2007 2006v2007 2006v2005i na nc e c os tpaid 96.4 (95.4) 84.6ax paid 28.9 32.8 97

Finance cost .6 4 ( . )5 4 .4 6Finance costaccrued

31.9 23.8 84

Tax paid is decreasing

because they arenot having much ofa profit

The finance cost paiddecrease notbecause they retire

their debt. Becausethey increasing theliability side


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Investing activitiesInvestment in Assets

2008v2007 2006v2007 2006v2005 2005Fixed capitalexpenditure

(14.8) 37.7 4.5

Intangibleassets

(1,231,197)

Total Changein investments

(2,312,057) (2,151,748) (1824759) (3,000,776)

WhyInvestmentsIncrease/Dec

rease

The investment inFixed assetsincrease becausethey have to buildinfrastructure tocover the area.

Worldcall invested inIntangible assets in2005 only in otheryears theinvestment isnegligible

They invested soheavily in fixedassets that whyTotal change ininvestment is innegative.


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Financing activitiesLong Term Debt and Share Capital

2008v2007 2006v2007 2006v2005 2005Receipt of longterm finance

97.7 % (97) % 61.8 %

Repayment oflong termfinance

82.8 % 76.1 % 86 %

Total Cashfrom

financing

activity

2,030,930 (238,848) 1854416(200)

3,124,529

Why FinancingIncrease/Decrease

Share capital has noeffect becausethey areconverting theirexisting debt intoshares and it is a

non cashtransaction andthey cancel outeach other effect.

The worldcallgrowth is not

sustainable. Theyhave to expand tostay in thebusiness. Theydidnt have theresources So theyare expandingthrough debt.


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Financing activitiesLong Term Debt and Share Capital

2008v2007 2006v2007 2006v2005 2005Receipt of longterm finance

97.7 % (97) % 61.8 %

Repayment oflong term finance

82.8 % 76.1 % 86 %

Total Cashfrom financing

activity

2,030,930 (238,848) 1854416 3,124,529

Why Financing

Increase/Decrease

The total cash fromfinancing activitydecrease in 2007because the long

term financeacquired is lessthen repayment oflong term debt.

Share capital issuedis zero in both

2007 and 2008.


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Show me the moneyNet cash in hand

2007V2008 2006V2007 2005V2006Net Increase ordecrease in cash

165 (413) (32)

Total cash in hand 2127 (97) 109

Cash from mergedentity

252315

Why CashIncrease/Decrease

The total cash isdecreasing from2005 to 2007 andstabilize in 2008because of lowerinvestment.

Total net cashincreased from2005 to 2007. Notbecause of thecash added fromthe previous years.

Because of thecash added bymerged entity. Notfrom the actualoperation of thecompany.


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