ali raza jamil(2005-ag-3496)

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FINANCIAL STATEMENT ANALYIS : 

NISHAT MILLS (PVT.) LTD. 1 FINANCIAL STATEMENT ANALYIS ALI RAZA JAMIL (2005-AG-3496) ASADULLAH IJAZ (2008-AG-154)

AGENDA : 

NISHAT MILLS (PVT.) LTD. 2 AGENDA ANALIZING COMPANY’S STRENGHT , MAKING USE OF DIFFERENT FINANCIAL ANALYSIS TOOLS AND MAKING DECISIONS RAGARDING INVESTING IN THE COMPANY, GIVING LOAN TO THE COMPANY, AND FUTURE DECISION AS A FINANCE MANAGER. ECONOMY ANALYSIS INDUSTRY ANALYSIS FIRM ANALYSIS BRIEF FINANCIAL STATEMENT FIGURES FINANCIAL STATEMENT ANALYSIS DECISION MAKING

ECONOMY ANALYSIS : 

NISHAT MILLS (PVT.) LTD. 3 ECONOMY ANALYSIS The inflation rate for the month of October 2009 is 8.9% and is expected to remain in the vicinity of 11% by the end of current fiscal year. Effective 25th November, 2009 the state bank of Pakistan policy rate will be lowered by 50 bps to 12.5%. Now the discount rate offered by SBP is 12.5%. (December 10, 2009): The rupee failed to come out of vulnerability as it shed another five paisa against dollar on the interbank market for buying and selling at 84.20 and 84.25, Leading indicators appear to be pointing to the fact that Pakistan’s economy is tentatively in a recovery phase after a deep and broad slowdown. Federal Minister for Textile Rana Farook Saeed has decided to take up the issue of cotton and cotton yarn shortage in local market with Prime Minister to seek his intervention immediately. Sources said the federal minister has assured the delegation of value-added sector to approach the Prime Minister in a week time to sort the issue out once and for all.

INDUSTRY ANALYSIS : 

NISHAT MILLS (PVT.) LTD. 4 INDUSTRY ANALYSIS Textile industry faces perfect competition The government has provided maximum tax incentives and concessions to the textile sector, including exemption of customs duty on import of a wide range of textile machinery and equipment, which has enhanced exports of textile products during the second quarter (October-December) 2009-10. KARACHI (December 10, 2009): Prices touched the new high at Rs 4500 on the cotton market on Wednesday The government needs to act aggressively on improving the tax base and reducing the fiscal deficit to sustainable levels and it is imperative that the tax burden should be widened particularly to services and agriculture sector, said the State Bank of Pakistan in its annual report on Thursday. (December 10, 2009): The Overseas Private Investment Corporation (Opic), a USA public sector investment agency, has assured Pakistan that it would convince US investors to invest in Pakistan's energy, agriculture and infrastructure sectors.

FIRM ANALYSIS : 

NISHAT MILLS (PVT.) LTD. 5 FIRM ANALYSIS

SWOT ANALYSIS : 

NISHAT MILLS (PVT.) LTD. 6 SWOT ANALYSIS

INCOME STATEMENT : 

NISHAT MILLS (PVT.) LTD. 7 INCOME STATEMENT

Balance Sheet : 

NISHAT MILLS (PVT.) LTD. 8 Balance Sheet

GROWTH ANALYSIS : 

NISHAT MILLS (PVT.) LTD. 9 GROWTH ANALYSIS

GROWTH ANALYSIS : 

NISHAT MILLS (PVT.) LTD. 10 GROWTH ANALYSIS

COMMON SIZE ANALYSIS : 

NISHAT MILLS (PVT.) LTD. 11 COMMON SIZE ANALYSIS

COMMON SIZE ANALYSIS : 

NISHAT MILLS (PVT.) LTD. 12 COMMON SIZE ANALYSIS

INDEX ANALYSIS : 

NISHAT MILLS (PVT.) LTD. 13 INDEX ANALYSIS

INDEX ANALYSIS : 

NISHAT MILLS (PVT.) LTD. 14 INDEX ANALYSIS

LIQUIDITY ANALYSIS : 

NISHAT MILLS (PVT.) LTD. 15 LIQUIDITY ANALYSIS CURRENT RATIO

QUICK RATIO : 

NISHAT MILLS (PVT.) LTD. 16 QUICK RATIO

CASH RATIO : 

NISHAT MILLS (PVT.) LTD. 17 CASH RATIO

ASSET EFFICIENCY ANALYSIS : 

NISHAT MILLS (PVT.) LTD. 18 ASSET EFFICIENCY ANALYSIS INVENTORY DAYS

CREDITORS DAYS : 

NISHAT MILLS (PVT.) LTD. 19 CREDITORS DAYS CREDITORS DAYS

DEBTORS DAYS : 

NISHAT MILLS (PVT.) LTD. 20 DEBTORS DAYS DEBTORS DAYS

FIXED ASSET TURNOVER : 

NISHAT MILLS (PVT.) LTD. 21 FIXED ASSET TURNOVER Nishat (S.A.) 84.57 53.82 55.13

TOTAL ASSET TURNOVER : 

NISHAT MILLS (PVT.) LTD. 22 TOTAL ASSET TURNOVER Industry average 68.48 68.00

PROFITABILITY ANALYSIS : 

NISHAT MILLS (PVT.) LTD. 23 PROFITABILITY ANALYSIS GP MARGIN RATIO

OP MARGIN RATIO : 

NISHAT MILLS (PVT.) LTD. 24 OP MARGIN RATIO

NP MARGIN RATIO : 

NISHAT MILLS (PVT.) LTD. 25 NP MARGIN RATIO Industry average - 5.49 3.34

RETURN ON INVESTMENT : 

NISHAT MILLS (PVT.) LTD. 26 RETURN ON INVESTMENT Industry average 3.07 1.58

RETURN ON EQUITY : 

NISHAT MILLS (PVT.) LTD. 27 RETURN ON EQUITY Industry average - 7.18 4.22

INTEREST COVERAGE RATIO : 

NISHAT MILLS (PVT.) LTD. 28 INTEREST COVERAGE RATIO Industry average - 2.03 1.58

LEVERAGE ANALYSIS : 

NISHAT MILLS (PVT.) LTD. 29 LEVERAGE ANALYSIS DEBT TO EQUITY RATIO

LEVERAGE ANALYSIS : 

NISHAT MILLS (PVT.) LTD. 30 LEVERAGE ANALYSIS LTD TO LTD AND EQUITY RATIO

PRICE EARNING RATIO : 

NISHAT MILLS (PVT.) LTD. 31 PRICE EARNING RATIO

Financial leverage : 

Financial leverage

Operating leverage : 

NISHAT MILLS (PVT.) LTD. 33 Operating leverage

Summary : 

NISHAT MILLS (PVT.) LTD. 34 Summary

Projected financial figures : 

Projected financial figures