Vertical Analysis of Balance Sheet

as at December 31, 2013

2013
NON-CURRENT ASSETS
Fixed assets
Intangible - goodwill
Long-term loans to employees
Long-term deposits
CURRENT ASSETS
Stores and spares
Stock-in-trade
Inventories
Trade debts
Loans and advances
Trade deposits and prepayments
Interest accrued
Refunds due from government
Other receivables
Taxation - payments less provision
Investments
Cash and bank balances
Total Assets
SHARE CAPITAL AND RESERVES
Share capital
Reserves

NON-CURRENT LIABILITIES
Staff retirement benefits
Deferred taxation
CURRENT LIABILITIES
Trade and other payables
Provisions

Total liabilities and equity

5,973,404
955,742
70,079
16,865
7,016,090

RS in millions
%
2012

156,548
6,271,405
6,427,953
349,950
248,463
118,592
9,753
46,951
392,202
1,231,588
224,269
1,872,999
10,922,720
17,938,810

33%
5%
0%
0%
39%
0%
1%
35%
35.8%
2%
1%
1%
0%
0%
2%
7%
1%
10%
61%
100%

5,814,504
955,742
81,959
16,761
6,868,966
140,691
5,080,220
5,220,911
350,362
243,070
92,542
12,205
40,759
445,872
660,092
198,118
2,117,626
9,381,557
16,250,523

2,895,156
8,454,157
11,349,313

16%
47%
63%

2,631,960
8,761,478
11,393,438

250,977
612,012
862,989

1%
3%
5%

175,280
530,750
706,030

5,561,429
165,079
5,726,508
6,589,497
17,938,810

31%
1%
32%
37%
100%

3,950,339
200,716
4,151,055
4,857,085
16,250,523

et

ns
%
36%
6%
1%
0%
42%
0%
1%
31%
32.13% avg. Inv
2%
1%
1%
0%
0%
3%
419037
4%
1%
13%
58%
100%

16%
54%
70%

1%
3%
4%
24%
1%
26%
30%
100%

5,824,432 33.9801551009%

Vertical Analysis of Profit and Loss Account

Net sales
Cost of sales
Gross profit

for the year ended December 31, 2013

RS in millions
2013
%
25,230,878
100.0%
-19,007,165
-75.3%
6,223,713
24.7%

Selling, marketing and distribution expenses

Administrative expenses
Other operating expenses
Other income
Operating profit
Financial charges
Profit before taxation
Taxation
Profit after taxation
Other comprehensive income
Remeasurements of staff retirement benefits
Impact on taxation

-3,635,914
-920,396
-153,230
454,916
1,969,089
-159,217
1,809,872
-747,609
1,062,263

-14.4%
-3.6%
-0.6%
1.8%
7.8%
-0.6%
7.2%
-3.0%
4.2%

Total comprehensive income

-81,095
27,491
-53,604
1,008,659

-0.3%
0.1%
-0.2%
4.0%

Earnings per share

Rs. 3.67

Loss Account

013
RS in millions
2012
23,149,964
-17,104,983
6,044,981

%
100.0%
-73.9%
26.1%

-3,028,364
-784,866
-192,617
330,125
2,369,259
-47,512
2,321,747
-995,243
1,326,504

-13.1%
-3.4%
-0.8%
1.4%
10.2%
-0.2%
10.0%
-4.3%
5.7%

55,149
-18,529
36,620
1,363,124

0.2%
-0.1%
0.2%
5.9%

Rs. 4.58

Horizontal Analysis of Balance Sheet

as at December 31, 2013

NON-CURRENT ASSETS
Fixed assets
Intangible - goodwill
Long-term loans to employees
Long-term deposits

CURRENT ASSETS
Stores and spares
Stock-in-trade
Trade debts
Loans and advances
Trade deposits and prepayments
Interest accrued
Refunds due from government
Other receivables
Taxation - payments less provision
Investments
Cash and bank balances

Total Assets
SHARE CAPITAL AND RESERVES
Share capital
Reserves

RS in millions
INCREASE/DECREASE
AMOUNT
%

2013

2012

5,973,404
955,742
70,079
16,865

5,814,504
955,742
81,959
16,761

Increase by 158,900
No change
0
Decrease by -11,880
Increase by
104

3%
0%
-14%
1%

7,016,090

6,868,966

Increase by 147,124

2%

156,548
6,271,405
349,950
248,463
118,592
9,753
46,951
392,202
1,231,588
224,269
1,872,999

140,691
5,080,220
350,362
243,070
92,542
12,205
40,759
445,872
660,092
198,118
2,117,626

Increase by 15,857
Increase by 1,191,185
Decrease by
-412
Increase by
5,393
Increase by 26,050
Decrease by -2,452
Increase by
6,192
Decrease by -53,670
Increase by 571,496
Increase by 26,151
Decrease by -244,627

11%
23%
-0.1%
2%
28%
-20%
15%
-12%
87%
13%
-12%

10,922,720

9,381,557

Increase by 1,541,163

16%

###

###

Increase by 1,688,287

10%

2,895,156
8,454,157

2,631,960
8,761,478

Increase by 263,196
Decrease by -307,321

10%
-4%

11,349,313 11,393,438
NON-CURRENT LIABILITIES
Staff retirement benefits
Deferred taxation

CURRENT LIABILITIES
Trade and other payables
Provisions

Total liabilities
Total liabilities and equity

Decrease by

-44,125

-0.4%

75,697
81,262

43%
15%

INTERPRETATION

company extend its business

for future projects

due to more investment &

recover recvable amount
increase in equity

company has no
future project

250,977
612,012

175,280
530,750

Increase by
Increase by

862,989

706,030

Increase by 156,959

22%

5,561,429
165,079

3,950,339
200,716

Increase by 1,611,090
Decrease by -35,637

41%
-18%

5,726,508

4,151,055

Increase by 1,575,453

38%

short term payment, to suppier

& others

6,589,497 4,857,085

Increase by 1,732,412

36%

more loans, purchase raw

materials, taxes

Increase by 1,688,287

10%

increase in purchases,
tax reserve

###

###

required to pay more tax &

more amount

Horizontal Analysis of Profit and Loss Account

Net sales
Cost of sales
Gross profit
Selling, marketing and
distribution expenses

for the year ended December 31, 2013

RS in millions
INCREASE/DECREASE
2013
2012
AMOUNT
%
25,230,878 23,149,964
Increase by 2,080,914
9%
19,007,165 17,104,983
Increase by 1,902,182
11%
6,223,713 6,044,981
Increase by 178,732
3%

INTERPRETATION
sold more units, price increase
cost increase/ more salse
sales increase. Price increase
Less marketing, sale decrease,
develop distribution channel

3,635,914

3,028,364

Increase by 607,550

20%

Less Administrative expenses

920,396

784,866

Increase by 135,530

17%

purchase land, employe leave,

indirectly cost decrease

LessOther operating expenses

153,230

192,617

Decrease by -39,387

-20%

Other income
Operating profit
Less Financial charges
Profit before taxation
Less Taxation
Profit after taxation
Other comprehensive income
Less Remeasurements of staff
retirement benefits
Impact on taxation

454,916
1,969,089
159,217
1,809,872
747,609
1,062,263

330,125
2,369,259
47,512
2,321,747
995,243
1,326,504

Increase by 124,791
Decrease by -400,170
Increase by 111,705
Decrease by -511,875
Decrease by -247,634
Decrease by -264,241

38%
-17%
235%
-22%
-25%
-20%

work efficiently, decrease

production
investment in other business
cost , expenses increases
sales increase
cost increase, less opperating profit
tax rate decrease, less profit
revenue decrease, high cost

-81,095

55,149

Decrease by -136,244

-247%

27,491
-53,604

-18,529
36,620

Increase by 46,020
Decrease by -90,224

-248%
-246%

Total comprehensive income

1,008,659

1,363,124

Decrease by -354,465

-26%

Earnings per share

Rs. 3.67

Rs. 4.58

low productivity, sale decrease,

demand decrease, high cost, low
profit
bad performance

GSK RATIOS 2013

Sr. No
Ratios
1
ASSET TURNOVER RATIO
Sales/T.Assets
2

Calculate by Amount Calculate by %

1.4065

INVENTORY TURNOVER
(COGS/Avg Inv)/ATR

2.3202

2.2170

QUICK RATIO
(Cur.Assets-Inv.)/Cur. Liab

0.7849

0.7849

GROSS PROFIT MARGIN

(Revenue-COGS)/Revenue

0.2467

0.2467

CASH TURNOVER RATIO

Net Sales/Cash

9.5776

9.5776

GSK RATIOS 2013

2013
Profitability Ratios
Return on Equity
Return on Assets
Gross Profit ratio
Net Profit margin

%
%
%
%

8.9
11.0
24.67
3.998

Capital Structure Ratios

Debt to Equity ratio
Debt Ratio

Times
%

0.1
36.7

Liquidity Ratios
Current ratio
Quick / Acid test ratio
Cash to Current Liabilities

Times
Times
Times

1.9
0.8
0.3

Activity / Turnover Ratios

Inventory turnover ratio
No. of Days in Inventory
Receiveable Turnover ratio
No. of Days in Receivables
Total Assets turnover ratio
Length of Operating Cycle

Times
Days
Times
Days
Times
Days

3.3
111
64
5.7
1.4
116.3

GSK

PFIZER

%
%
%
%

8.9
11.0
24.7
4.0

28.7
12.8
81.4
42.8

Capital Structure Ratios

Debt to Equity ratio
Debt Ratio

Times
%

0.1
36.7

1.3
55.5

Liquidity Ratios
Current ratio
Quick / Acid test ratio
Cash to Current Liabilities

Times
Times
Times

1.9
0.8
0.3

2.4
2.1
0.1

Activity / Turnover Ratios

Inventory turnover ratio
No. of Days in Inventory
Receiveable Turnover ratio
No. of Days in Receivables
Total Assets turnover ratio
Length of Operating Cycle

Times
Days
Times
Days
Times
Days

3.3
111
64
5.7
1.4
116.3

1.4
251.9
4.7
76.9
0.3
328.8

Profitability Ratios
Return on Equity
Return on Assets
Gross Profit ratio
Net Profit margin