Q#1: would you like to invest as an equity investor in IMC?

Yes, I would like to invest in the shares of the company due to following reasons:

• The company is the biggest automobile company in Pakistan.

• Its shares have a fair market price. (Rs., as on June 30, 2004)
• Very good P/E ratio (i.e.)
• Earning per share is Rs. 18.74
• Company’s78,600,000 shares have backing of reserves and un appropriated profit
of Rs. 2,592,595,000/-; this gives an extra equity of Rs.33 per share. As the share
is available around Rs.96. I will prefer to invest in it.
• The company is expanding and improving in quality and output quantity to be
competitive in coming post WTO implementation scenario. This effort on the part
of the management also strengthens the share and makes it attractive to invest.
• Dividend per share is Rs. 8.94 per share in this year which is very attractive.
• Its return on equity is about 43.6% which is very high and also its return on
investment is about 12.7% which is also very attractive.

Q#2: would you like to extend a long-term loan to IMC?

Yes, I would like to extend long term loan to the company, despite the fact that
company fiancé port-folio has already been loaded with debt quite heavily. My decision
is backed by following vindications:

• Company’s time interest ratio is highly increasing. This indicates that further
investment in the business shall further improve the profitability.
• Company has a good equity built up, which they are using effectively in their
expansion plans.
• With backing of good reputation of IMC, my decision gets reinforcement.
• The company is continuously growing from last many years and according to my
forecasting on the basis of certain facts like market situation, product demand,
country’s circumstances and other such factors, it will extensively grow in
upcoming years.
 However, my final decision would depend on negotiations over terms of loan,
amount of loan and collateral.
Q#3: would you like to extend a short-term loan to IMC?
I would like to lend short term finances to the company. My decision is due to
following facts:

• The company’s liquidity ratios are very attractive that shows that the loan is
backed by huge amount of liquid assets.
• The risk is fairly mitigated by backing of IMC.
• The company has fairly improved in cash flow from operations.
• IMC’s profitability ratios are also very attractive.
• Increasing sales, profits and total fixed assets turnover all give green signal to
extend short-term loan to IMC without any hesitation.