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Trend Analysis
Of
Submitted By:-
Submitted To:-
Sir M. Sarmed
Noon Sugar Mills Ltd
Introduction
Noon International (Pvt) Ltd., is a trading company of the group established in 1972. The
company employs 41 people including 13 professional sales engineers.
Noon International represents various international companies of repute in Pakistan and market
their equipment in the fields of textile, power generation, sugar, fertilizer, chemical, steel,
cement, food and milling.
The company has a diversified and large customer base of over 400.
The present equity of the Company is Rs.660 Million, with total investment of over Rs.1,024
Million. The Market Capitalisation is over Rs.455 Million, and annual sales revenue amounts to
over Rs.1.0 Billion , including exports of Rs.309 Million .The average number of employees is
691.
The Company has a gratifying record of 43% average annual Dividend pay out to the share
holders in the last 10 years.
History
The Company was incorporated in 1964 as a public company listed on all the Stock Exchanges
of Pakistan for setting up of a plant for manufacture of white sugar, in the province of Punjab.
The plant went into production in 1966 with a daily crushing capacity of 1,500 MT of sugar
cane, which has since been raised to 4,000 MT per day in 2002. Further extension to 9,000 TCD
has become operative in 2006-2007 crushing season.
Board of Directors
Trend Analysis
Respective Ratios
Current Ratio
Debt Equity Ratio
Net Profit Margin
Dividend Cover Ratio
Cash Flow Ratio
Fixed Asset Turnover Ratio
Current Ratio
The current ratio is a liquidity ratio that measures a company's ability to pay short-
term obligations.
Noon Sugar Mills is running smoothly considering its higher current ratio, but the point of
concern is that it is decreasing is drastically decreasing annually. This suggests that this company
is not been really able to capitalize on their short term liabilities recently.
200
2005
150 2006
2007
100
2008
50 2009
0
Current Ratio
We can see variety of changes in the ratio during the 5 years. Here it is clear that apart from
2009, throughout the cycle of 5 years companys liabilities are on a rise. This shows that Noon is
depending more on borrowed money than their own equity.
120
100
2005
80 2006
60 2007
2008
40 2009
20
0
Debt Equity Ratio
Constant decrease in the ratio suggests that Noon have not been efficient in the use of their
PP&E.
0
Fixed Asset Turnover Ratio
Conclusion
Observing all the respective ratios one can come to a conclusion that, Noon Sugar Mills have
rather been somehow able to operate themselves well but have never been able to do the most of
the investment. Being investor nobody would fancy investing in them since they have not been
able to pay their dividends back. Drastic changes in ratios of Noon really prevents investor to
invest in them since there is no stability.