SUBMITTED BY: SALMAN MAHBOOB REGISTRATION NO.: 04151113057 SUBMITTED TO: Mr.

WASIM ABBAS SHAHEEN CLASS: BS (BA)-4 SECTION: B

COURSE: FUNDAMENTALS OF FINANCE DATE: 20-05-2013

LUCKY CEMENT LIMITED BALANCE SHEET

Particulars
Current assets Stores and spares
Stockintrade Trade debts considered good Loans and advances Trade deposits and short term prepayments Other receivables Tax refunds due from the Government Taxation net Sales tax refundable

2007

2008

2009

Cash and bank balances Total Current Assets

Long term Assets Property, plant and equipment Intangible assets sub total Long term advance Long term deposits

amounts in amounts in amounts in 000 000 000 1,993,573 4,160,146 3,411,549 676,256 709,372 1,196,608 476,667 720,314 1,267,248 241,821 111,989 108,876 9,661 189,641 9,761 183,138 890,204 59,251 538,812 538,812 538,812 50,057 130,899 176,584 0 634,136 40,162 1,239,158 270,011 1,049,091 5,409,143 8,355,524 7,857,942 20,318,908 0 20,318,908 0 2,175 20,321,083 25,730,226 25,881,375 0 25,881,375 0 2,175 25,883,550 34,239,074 30,476,872 0 30,476,872 55,373 2,175 30,534,420 38,392,362

Total Long term assets

Total Assets Libilities

Current Liabilities
Trade and other payables Accrued markup Short term borrowings Current portion of long term finances Total Current liabilities

1,546,699 326,181 2,864,397 1,615,152 6,352,429 8,335,604 25,863 147,245 1,515,535 10,024,247 16,376,676 2,633,750 6,719,800 9,353,550 25,730,226

3,549,543 2,677,356 288,977 233,381 3,606,710 6,187,941 0 241,667 7,686,897 9,098,678 6,633,333 30,252 174,171 1,058,998 7,896,754 15,583,651 3,233,750 15,421,673 18,655,423 34,239,074 4,300,000 28,589 234,633 1,478,490 6,041,712 15,140,390 3,233,750 20,018,222 23,251,972 38,392,362

Non current Liabilities

Long term finance Long term deposits Deferred liability Deferred tax liability Total Long Term Liabilities

Total Liabilities
Owner's Equity Share capital Reserves

Total Equity

Total Libilities and Owner's Equity

LUCKY CEMENT LIMITED INCOME STATEMENT

Particulars Net sales Cost of sales Gross profit Distribution cost Administrative expenses Finance cost Other charges Other income Profit before taxation

Taxation-current period
Prior year deferred

Profit after taxation

Other comprehensive income

2007 "000" 12,521,861 8,846,708 3,675,153 497,729 111,311 862,847 629,289 142,204 2,690,351 63,146 0 79,913 2,547,292 0 2,547,292

2008 "000" 16,957,879 12,600,706 4,357,173 1,155,054 125,752 126,743 644,388 1,293 2,306,529 85,394 0 -456,535 2,677,670 0 2,677,670

2009 "000" 26,330,404 16,519,138 9,811,266 2,427,837 165,936 1,236,971 826,776 23,255 5,177,001 156,744 4,216 419,492 4,596,549 0 4,596,549

Total comprehensive income for the year

HORIZONTAL ANALYSIS OF BALANCE SHEET (2007 as base year)

Particulars
Current assets
Stores and spares Stock in trade Trade debts considered good Loans and advances Trade deposits and short term prepayments Other receivables Tax refunds due from the Government Taxation net Sales tax refundable Cash and bank balances

2007
100% 100% 100% 100% 100% 100% 100% 100% 0% 100% 100% 100% 0% 100% 0% 100% 100% 100%

2008
109% 5% 51% -54% 1863% 386% 0% 161% 0% -78% 54% 27% 0% 27% 0% 0% 27% 33%

2009
71% 77% 166% -55% 1% -68% 0% 253% 0% -15% 45% 50% 0% 50% 0% 0% 50% 49%

Total Current Assets Longterm Assets

Property, plant and equipment Intangible assets

sub total
Long term advance Long term deposits

Total Long term assets

Total Assets Liabilities

Current Liabilities
Trade and other payables Accrued markup Short term borrowings Current portion of long term finances

Total Current liabilities Non current Liabilities

Long term finance Long term deposits Deferred liability Deferred tax liability

100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

129% -11% 26% -85% 21% -20% 17% 18% -30% -21% -5% 23% 129% 99% 33%

73% -28% 116% -100% 43% -48% 11% 59% -2% -40% -8% 23% 198% 149% 49%

Total Long Term Liabilities

Total Liabilities Owner's Equity

Share capital Reserves

Total Equity

Total Libilities and Owner's Equity

Interpretation of Horizontal Analysis of Balance Sheet Here it is shown that total assets of the company increases by 33% and 49% in year 2008 and 2009 respectively as compared to the year 2007 that is because of increase in plant and equipment for expansion especially in 2009. There is a noticeable increase in stock in trade (inventory) and trade debts (account receivables) and increase in both of them is because of increase in sales. Stores and spares showed an increasing trend over the years. Stock in trade also has an increasing trend. Trade deposits and short term prepayments showed remarkable increasing trend in 2008. Fixed assets have shown an increasing trend in the years under study. Long term deposits remain same. There is a decrease in the deferred tax liability over the years. But its deferred liabilities are increased over time. In current liabilities, the company has decreased its long term finance liability indicating a positive sign. But they have increased their short term borrowings to meet its financial needs. Trade and other payables show an increase in 2008 and 2009. Accrued markup show decreasing trend. Overall the current liabilities portion shows an increasing trend. The Horizontal analysis of balance sheet shows that over the years there is a remarkable increase in the value of Reserves. Share capital increases in 2008 but remains same in 2009 so no capital is raised through shares in 2009.

HORIZONTAL ANALYSIS OF INCOME STATEMENT

Particulars
Net sales Cost of sales Gross profit Distribution cost Administrative expenses Finance cost Other charges Other income Profit before taxation Taxation-current period Prior year deferred Profit after taxation Other comprehensive income

2007 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 0.00% 100.00% 100.00% 0.00% 100.00%

2008 35% 42% 19% 132% 13% -85% 2% -99% -14% 35% 0.00% -671% 5% 0.00% 5%

2009 110% 87% 167% 388% 49% 43% 31% -84% 92% 148% 0.00% 425% 80% 0.00% 80%

Total comprehensive income for the year

Interpretation of Horizontal Analysis of Income Statement The horizontal analysis of income statement shows that in 2009 company boosted its sales but increase in sale is more than an increase in CGS, this means that gross profit will be more in 2009 as compared to gross profit of 2007. The cost of goods sold has an increasing trend but in comparison to the sales there is a less proportion of increase of cost of goods sold The gross profit shows the same trend as of sales trend, although the sales are increasing but because of less proportional increase in corresponding cost of goods sold affects the gross profit resulting in increase and increase in the value of gross profit over the two years. Distribution cost showed an increasing trend over the period due to the continues increase in fuel prices. Administrative expenses also have an increasing trend. Other income decreases over the years

 Profit after taxation show an increasing trend but it is just 5% in 2008 but there is remarkable increase of 80% in 2009 which is due to remarkable increase in sales. VERTICAL ANALYSIS OF BALANCE SHEET

Particulars
Current Assets
Stores and spares Stock in trade Trade debts considered good Loans and advances Trade deposits and short term prepayments Other receivables Tax refunds due from the Government Taxation net Sales tax refundable Cash and bank balances

2007
7.75% 2.63% 1.85% 0.94% 0.04% 0.71% 2.09% 0.19% 0.00% 4.82% 21.02% 0.00% 78.97% 0.00% 78.97% 0.00% 0.01% 78.98% 100.00%

2008
12.15% 2.07% 2.10% 0.33% 0.55% 0.60% 1.57% 0.38% 1.85% 0.79% 24.40% 0.00% 75.59% 0.00% 75.59% 0.00% 0.01% 75.60% 100.00%

2009
8.89% 3.12% 3.30% 0.28% 0.03% 0.15% 1.40% 0.46% 0.10% 2.73% 20.47% 0.00% 79.38% 0.00% 79.38% 0.14% 0.01% 79.53% 100.00%

Total Current Assets

Long term Assets Property, plant and equipment Intangible assets sub total Long term advance Long term deposits

Total Long Term Assets

Total Assets Liabilities

Current Liabilities
Trade and other payables Accrued markup Short term borrowings Current portion of long term finances

6.01% 1.27% 11.13% 6.28% 24.69% 32.40% 0.10% 0.57% 5.89% 38.96% 63.65%

10.37% 0.84% 10.53% 0.71% 22.45% 19.37% 0.09% 0.51% 3.09% 23.06% 45.51%

6.97% 0.61% 16.12% 0.00% 23.70% 11.20% 0.07% 0.61% 3.85% 15.74% 39.44%

Total Current liabilities Non current Liabilities

Long term finance Long term deposits Deferred liability Deferred tax liability

Total Long Term Liabilities

Total Liabilities

Owner's Equity
Share capital Reserves

Total Equity

0.00% 10.24% 26.12% 36.35% 100.00%

0.00% 9.44% 45.04% 54.49% 100.00%

0.00% 8.42% 52.14% 60.56% 100.00%

Total Liabilities and Owner's Equity

Interpretation of Vertical Analysis of Balance Sheet Fixed assets showed an increasing trend, which is the largest portion of the total assets and increase is due to the expansion of the business. Current assets showed a mixed trend. Stores and spares show a mix trend. Stock in trade and trade debts also showed slightly same trend. Other receivables also show same result almost. Cash and bank balances showed an increasing trend in 2007 then decrease in 2008 but in 2009 the position gets a bit better. The non-current liabilities have a decreasing trend over the years which include a decrease in the value of long term finance, long term deposits and deferred tax liability. Over all the current liabilities show a mix trend including mix trend in Trade and other payables. Vertical analysis of balance sheet shows that there is an increase in the reserves head of the balance sheet.

VERTICAL ANALYSIS OF INCOME STATEMENT

Particulars
Net sales Cost of sales Gross profit Distribution cost Administrative expenses Finance cost Other charges

2007
100.00% 71% 29% 3.97% 0.89% 6.89% 5.03%

2008
100.00% 74.31% 25.69% 6.81% 0.74% 0.75% 3.80%

2009
100.00% 62.74% 37.26% 9.22% 0.63% 4.70% 3.14%

Other income Profit before taxation Taxation-current period Prior year deferred Profit after taxation Other comprehensive income

1.14% 21.49% 0.50% 0.00% 0.64% 20.34% 0.00% 20.34%

0.01% 13.60% 0.50% 0.00% -2.69% 15.79% 0.00% 15.79%

0.09% 19.66% 0.60% 0.02% 1.59% 17.46% 0.00% 17.46%

Total comprehensive income for the year

Interpretation of Vertical Analysis of Income Statement In vertical analysis of income statement sales have been chosen as 100% while all other income statement items are compared with sales. According to the vertical analysis of income statement there is a gradual increase in the cost of goods sold but decrease in 2009. Administrative expenses showed a gradual decreasing trend. Other charges also showed a decreasing trend. Finance cost increase in 2008 but then again showed an increasing trend. Other income also showed a decreasing trend.