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FINANCIAL REPORTING AND

ANALYSIS
Submitted To:

PROF. WASEEM UL REHMAN


Submitted By:
AHTSHAM KHALID

13-M

MUHAMMAD KAMRAN

36-A

MUHAMMAD ARSAL IQBAL 44-A


MUHAMMAD FAISAL SULTAN

13-A

BBA (5th Semester)


2012-2016

INSTITUTE OF BUSINESS ADMINISTRATION


UNIVERSITY OF THE PUNJAB

Table of Contents

Introduction:...........................................................................................4
Vision Statement:...................................................................................6
Mission Statement:.................................................................................6
Statement of Financial Position...............................................................7
Statement of Comprehensive Income....................................................9
Horizontal Analysis of Financial Statement...........................................10
Vertical Analysis of Financial Statement...............................................11
Ratio Analysis.......................................................................................13
Liquidity Ratios.....................................................................................16
Activity Ratios.......................................................................................21
Profitability Ratios.................................................................................33
Leverage Ratios....................................................................................42
Conclusion............................................................................................46
References............................................................................................48

Introduction:
The Company commenced Textile operations in 1953 as a private limited
company and became a public limited company in 1968. The Company is a
part of Kohinoor Maple Leaf Group (KMLG). KMLG structure comprises of two
listed public limited companies i.e. Kohinoor Textile Mills Limited (KTML) and
Maple Leaf Cement Factory Limited (MLCF) and one unlisted public limited
company i.e. Maple Leaf Capital Limited.

MLCF is subsidiary company of

KTML. The initial capacity of its Rawalpindi unit comprised 25,000 spindles
and 600 looms. Later, fabric processing facilities were added and spinning
capacity was augmented. Additional production facilities were acquired on
the Raiwind-Manga Road near Lahore in District Kasur and on the Gulyana
Road near Gujar Khan, by way of merger.

Nature of Business:
The Companys production facilities now comprise 156,528 ring spindles
capable of spinning a wide range of counts using cotton and Man-made
fibers. The weaving facilities at Raiwind comprise 204 looms capable of
weaving wide range of greige fabrics. The processing facilities at the
Rawalpindi unit are capable of dyeing and printing fabrics for the home
textile market. The stitching facilities produce a diversified range of home
textiles for the export market. Both the dyeing and stitching facilities are
being augmented to take advantage of greater market access. Fully
equipped laboratory facilities for quality control and process optimization
have been setup at all three sites. The Company has been investing heavily
in Information Technology, training of its human resources and preparing its
management to meet the challenges of market integration.
The Company continues to ensure that its current competitive position is
maintained as well as supporting the ongoing improvement process in our
endeavor to maintain worlds best manufacturing practice. Operations of the
Company are subject to different environmental and labour laws. The
Company is fully complying with all applicable environmental, labour,
corporate and other relevant legal laws.

Vision Statement:
The Kohinoor Textile Mills Limited stated vision is to achieve and then remain
as the most progressive and profitable Company in Pakistan in terms of
industry standards and stakeholders interest.

Mission Statement:
The Company shall achieve its mission through a continuous process of
having sourced, developed, implemented and managed the best leading
edge technology, industry best practice, human resource and innovative
products and services and sold these
to its customers, suppliers and stakeholders.

Statement of Financial Position

EQUITY AND LIABILITIES

2014
Rs.
(000)

2013
Rs.
(000)

2012
Rs.
(000)

2011
Rs.
(000)

2010
Rs.
(000)

37,00,
000

37,00,
000

3,700,0
00

3,700,0
00

3,700,0
00

300,00
0
4,000,
000

300,00
0
4,000,
000

300,00
0
4,000,0
00

300,00
0
4,000,0
00

300,00
0
4,000,0
00

24552
62
37136
59
61689
21
36738
25

24552
62
25440
07
49992
69
36738
25

2,455,2
62
2,059,4
75
4,514,
737
3,673,8
25

2,455,2
62
1,931,3
74
4,386,
636
3,685,4
97

1,455,2
62
1,906,0
06
3,361,
268
3,673,8
25

86399

38958

519,13
5

1,318,7
10

1,628,0
67

8037

NIL

20,501

42,843

67,005

31596
0
41039
6

35054
9
38950
7

140,17
5
679,81
1

62,141
1,423,6
94

157,99
6
1,853,0
68

11325
86

67049
58685
66
62789
62

12483
15
10410
1
43293
41
57623
9
62579
96
66475
03

1,161,8
92
185,69
8
4,364,1
11
617,85
6
6,329,5
57
7,009,
368

834,69
1
230,13
8
5,130,2
65
611,74
4
6,806,8
38
8,230,
532

1,040,2
57
289,98
7
6,070,4
35
768,45
9
8,169,1
38
10,022
,206

16121
708

15320
597

15,197
,930

16,302
,665

17,057
,299

Share capital and reserves


Authorized share capital
ordinary shares of Rupees 10 each
30,000,000 (2011: 30,000,000)
preference
shares of Rupees 10 each

Issued, subscribed and paid up share


capital
Reserves
Total equity
Surplus on revaluation of land and
investment properties
LIABILITIES
NON-CURRENT LIABILITIES
Long term financing
Liabilities against assets subject to
finance lease
Lease finance advance
Deferred income tax liability

CURRENT LIABILITIES
Trade and other payables
Accrued mark-up
Short term borrowings
Current portion of non-current liabilities

TOTAL LIABILITIES

93615
45753
16

CONTINGENCIES AND COMMITMENTS


TOTAL EQUITY AND LIABILITIES

ASSETS
NON - CURRENT ASSETS
Property, plant and equipment
Intangible asset
Investment properties
Long term investments
Long term deposits

59197
51

59591
12

6,161,3
81

6,747,6
91

6,496,2
99

NIL
17811
33
30146
69

3006
17298
43
32486
80

6,284
1,728,8
86
3,248,6
80

9,563
1,721,7
14
3,248,8
80

1,720,8
35
2,249,1
70

46637
10762
190

40382
10981
023

50,515
11,195,
746

35,758
11,763,
606

34,887
10,501,
191

42475
5
18881
77
90331
2
15851
8

36528
1
17682
03
10667
24
22327
2

320,48
6
1,529,9
49
986,68
3
312,40
6

328,39
3
1,657,2
52
707,40
0
241,33
1

345,79
8
2,393,1
13
1,329,0
65
596,79
5

17237

32585

25,909

19,045

15,578

NIL

6229

217

141

NIL
76199
7
97523
9
12934
6
10093
7

NIL
41252
1

308,49
4

46
601,14
4
432,94
3

1040
14286
7
32085
2

611
131,92
6
385,50
3

600
129,90
9
420,99
6

53595
18

43395
74

4,002,1
84

4,539,0
59

53595
18
16121
708

43395
74
15320
597

4,002,1
84
15,197
,930

4,539,0
59
16,302
,665

CURRENT ASSETS
Stores, spare parts and loose tools
Stock-in-trade
Trade debts
Advances
Security deposits and short term
prepayments
Accrued Interest
Due from subsidiary companies
Other receivables
Short term investments
Taxation recoverable
Cash and bank balances

Non-current assets classified as held for


sale

TOTAL ASSETS

401,92
8
642,11
1
99,805
78,851
5,903,1
85
652,92
3
6,556,1
08
17,057
,299

Statement of Comprehensive Income


2014
Rs.
(000)
15302
242
13395
079

2013
Rs.
(000)
14250
439
12116
187

2012
Rs.
(000)
11,146,
698
9,310,0
49

2011
Rs.
(000)
12,037,
253
10,213,
705

2010
Rs.
(000)
10,693,
338
8,692,5
29

19071
63
57359
2
31615
2
35225
8
92500
8
98216
1
87181
5

21342
52
43859
8
25839
8

1,836,
649

1,823,
548

402526

425,063

210356

218,739

2,000,
809
397,81
8
195,10
3

116011

-49,432

728893
1,107,7
56

693,234
1,130,3
14

-37,323
630,24
4
1,370,5
65

52455

67,273

595,770

78,651

18539
76
56538
4

14389
78
64054
3

1,175,
029
870,74
0

1,726,
084
1,037,2
94

1,449,
216
1,072,7
68

79843
5
31390
3

304,28
9
187,86
0

688,79
0

376,44
8

TAXATION

12885
92
11894
0

200,939

-98,587

PROFIT AFTER TAXATION

11696
52

48453
2

116,42
9

487,85
1

277,86
1

4.76

1.97

0.47

2.20

1.91

SALES
COST OF SALES

GROSS PROFIT
DISTRIBUTION COST
ADMINISTRATIVE EXPENSES
OTHER OPERATING EXPENSES

OTHER OPERATING INCOME

PROFIT FROM OPERATIONS


FINANCE COST

PROFIT BEFORE TAXATION

EARNINGS PER SHARE - BASIC


AND DILUTED (Rupees)

-50733
74772
9
13865
23

10

11

Horizontal Analysis of Financial Statement

Balance Sheet
Total Equity
Total Surplus on revolution of
property
Total non-current liabilities
Total current liabilities

2010

2011

Rupee
s

Rupees

Chan
ge
w.r.t
2010
%

2012

Chan
ge
w.r.t
2011
%

2013

Remar
ks

Rupees

Better
Better
Better
Better

4,514,
737
3,673,82
5
679,811
6,329,55
15,197,
930

2.92
(0.32)
(52.25)
(7.01)

11,195,7
46
4,002,18
4
15,197,
930

(4.83)
(11.83)

Poor
Poor

(6.78)

Poor

Chan
ge
w.r.t
2012
%

2014

Remar
ks

Rupees

Better
Better
Better
Better

4,999,26
9
3,673,82
5
389,507
6,257,99
15,320,
597

10.73
(42.70)
(1.13)

10,981,0
23
4,339,57
4
15,320,
597

(1.92)
8.43

Poor
Better

0.81

Better

Chan
ge
w.r.t
2013
%

Remar
ks

Remar
ks

Rupees

Better
Better
Better

6,168,92
1
3,673,82
5
410,396
5,868,56
16,121,
708

23.40
5.36
(6.22)

10,762,1
90
5,359,51
8
16,121,
708

(1.99)
23.50

Poor
Better

5.23

Better

3,361,26
8
3,673,82
5
1,853,06
8
17,057,
299

4,386,63
6
3,685,49
7
1,423,69
4
16,302,
665

30.51
0.32
(23.17)
(16.68)

10,501,1
91
6,556,10
8
17,057,
299

11,763,6
06
4,539,05
9
16,302,
665

12.02
(30.77)

Better
Poor

(4.42)

Poor

Net sales
Cost of sales

10,693,3
38
8,692,52
9

12,037,2
53
10,213,7
05

12.57
17.50

Better
Poor

11,146,6
98
9,310,04
9

(7.40)
(8.85)

Poor
Better

14,250,4
39
12,116,1
87

27.84
30.14

Better
Poor

15,302,2
42
13,395,0
79

7.38
10.56

Better
Poor

Gross profit
Selling and distribution expenses
Administrative expenses
Other operating expenses
Other operating income

2,000,8
09
397,818
195,103
37,323
78,651

1,823,5
48
425,063
218,739
49,432
595,770

(8.86)
6.85
12.11
32.44
657.49

Poor
Poor
Poor
Poor
Better

1,836,6
49
402,526
210,356
116,011
67,273

0.72
(5.30)
(3.83)
134.69
(88.71)

Better
Better
Better
Worse
Poor

2,134,2
52
438,598
258,398
50,733
52,455

16.20
8.96
22.84
(56.27)
(22.03)

Better
Poor
Poor
Better
Poor

1,907,1
63
573,592
316,152
35,258
871,815

Poor
Poor
Poor
Better
Better

Profit from operations


Finance cost

1,726,0
84
1,037,29
4
688,790
200,939

19.10
(3.31)

Better
Better

1,175,0
29
870,740

(31.93
)
(16.06)

Poor
Better

1,438,9
78
640,543

22.46
(26.44)

Better
Better

1,853,9
76
565,384

Profit/(Loss) before taxation


Provision for taxation

1,449,2
16
1,072,76
8
376,448
98,587

(10.64
)
30.78
22.35
(30.50)
1,562.
02
28.84

82.97
103.82

Better
Poor

304,289
187,860

(55.82)
(6.51)

Poor
Better

798,435
313,903

162.39
67.09

Better
Poor

Profit / (Loss) after taxation

277,861

487,851

75.57

Better

116,429

(76.13
)

poor

484,532

316.1
6

Better

Total equity and liabilities


Total non-current assets
Total current assets
Total assets

(4.42)

(6.78)

0.81

Better
Poor
better

5.23

Profit and Loss Account

Vertical Analysis of Financial Statement

(11.73)

Better
Better

1,288,59
2
118,940

61.39
(62.11)

Better
Better

1,169,6
52

141.4
0

Better

Balance Sheet
Total Equity
Total Surplus on revolution of
property
Total non-current liabilities
Total current liabilities
Total equity and liabilities
Total non-current assets
Total current assets
Total assets

2010

2011

2012

2013

2014

3,361,268
3,673,825
1,853,068
8,169,138

19.71
21.54
10.86
47.89

4,386,636
3,685,497
1,423,694
6,806,838

26.91
22.61
8.73
41.75

4,514,737
3,673,825
679,811
6,329,557

29.71
24.17
4.47
41.65

4,999,269
3,673,825
389,507
6,257,996

32.63
23.98
2.54
40.85

6,168,921
3,673,825
410,396
5,868,566

38.26
22.79
2.55
36.40

17,057,29
9
10,501,191

100.00
61.56

16,302,66
5
11,763,606

6,556,108

38.44

4,539,059

17,057,29
9

100.00

16,302,66
5

10,693,338

100.00

12,037,253

100.00 15,197,930

100.00

72.16

11,195,746

73.67

15,320,59
7
10,981,023

100.00 16,121,708

100.00

71.67

10,762,190

66.76

27.84

4,002,184

26.33

4,339,574

28.33

5,359,518

33.24

100.00 15,197,930

100.00

15,320,59
7

100.00 16,121,708

100.00

100.00

100.00

14,250,439

100.00

15,302,242

100.00

Profit and Loss Account


Net sales
Cost of sales

8,692,529

81.29

10,213,705

84.85

Gross profit

2,000,809

18.71

1,823,548

15.15

397,818
195,103
37,323
78,651

3.72
1.82
0.35
0.74

425,063
218,739
49,432
595,770

3.53
1.82
0.41
4.95

1,449,216

13.55

1,726,084

14.34

1,072,768

10.03

1,037,294

8.62

376,448

3.52

688,790

98,587

0.92

277,861

2.60

Selling and distribution expenses


Administrative expenses
Other operating expenses
Other operating income
Profit from operations
Finance cost
Profit/(Loss) before taxation
Provision for taxation
Profit/(Loss) after taxation

11,146,698
9,310,049

83.52

12,116,187

85.02

13,395,079

87.54

16.48

2,134,252

14.98

1,907,163

12.46

3.61
1.89
1.04
0.60

438,598
258,398
50,733
52,455

3.08
1.81
0.36
0.37

573,592
316,152
35,258
871,815

3.75
2.07
0.23
5.70

10.54

1,438,978

10.10

1,853,976

12.12

870,740

7.81

640,543

4.49

565,384

3.69

5.72

304,289

2.73

798,435

5.60

1,288,592

8.42

200,939

1.67

187,860

1.69

313,903

2.20

118,940

0.78

487,851

4.05

116,429

1.04

484,532

3.40

1,169,652

7.64

1,836,649
402,526
210,356
116,011
67,273
1,175,029

Interpretations of Vertical Analysis


From 2010 to 2011
In 2010 to 2011 the total equity of company has increased and also the
current liabilities have increased, current assets of the company has
decreased. It means company is unable to pay its short term obligations as
current liabilities are greater than current assets.
In 2010 to 2011 the gross profit of company has decreased and EBIT, EAT
has increased. Due to decrease in interest expenses company profit has
increased.

From 2011 to 2012


In 2011 to 2012 the total equity of company has increased and also the
current liabilities have decreased, current assets of the company has slightly
decreased.
In 2011 to 2012 the gross profit of company has increased. EBIT and EAT has
decreased.

From 2012 to 2013


In 2012 to 2013 the total equity of company has increased and also the
current liabilities almost remains same, current assets of the company has
increased.
In 2012 to 2013 the gross profit and EBIT of company has decrease. EAT
increased due to decrease in interest expense.

From 2013 to 2014


In 2013 to 2014 the total equity of company has increased and also the
current liabilities decreased, current assets of the company has increased.
In 2013 to 2014 the gross profit has decreased .EBIT and EAT increased
maybe due to decrease in interest expense.

Ratio Analysis

ACTIVITY
RATIOS:
Inventory
Turnover
Ratio

Average
Inventory

Average
No of Days
in
Inventory

Receivable
Turnover
Ratio

Average
No of Days
in
Receivable
s

FORMULA

2014
Rs.(000)

2013
Rs.(000)

Cost of sales/
Average
Inventory

1339507
9/182819
0
7.33
times

closing
Inventory+op
ening
inventory/2

365/average
inventory

Sales/
Average
Receivables

365/Receivab
le Turnover
Ratio

1211618
7/164907
6
7.35
times

2012
Rs.
(000)
9310049/
1593600.
5
5.84
Times

2011
Rs.
(000)
1021370
5/202518
2.5
5.04
Times

2010
Rs.
(000)
8692529/
2086469.
5
4.16
Times

1768203
+188817
7/2

1529949
+176820
3/2

1657252
+152994
9/2

2393113
+165725
2/2

1779826
+239311
3/2

1,828,19
0

1,649,07
6

1593600.
50

2,025,18
3

2,086,47
0

365/7.33

365/7.35

365/5.84

365/5.04

365/4.16

49.8
days or
50 days

49.66
days or
50 days

62.5
Days or
63 Days
App.

72.42
Days or
73 Days
App

87.74
Days or
88 Days
App

1530224
2/985334
15.53
times

1425043
9/102668
8
13.88
times

1114669
8/151833
2
7.34
Times

1203725
3/143566
8
8.38
Times

1069333
8/154141
3
6.39
Times

365/15.5
3

365/13.8
8

365/7.34

365/8.38

365/6.39

23.50
Days or
24 Days

26.21
Days or
26 Days

49.73
Days or
50 Days
App

43.55Da
ys or 44
Days
App

57.12
Days or
58 Days
App

Payable
Turnover
Ratio

Average
No of Days
in
Payables

Fixed
Assets
Turnover
Ratio

Total
Assets
Turnover
Ratio

LIQUIDTY
RATIOS:
Net
working
capital

Current
ratio

Quick
ratio

DEBT
RATIOS:

Purchases/
Average
Payables

365/Payable
Turnover
Ratio

Sales/
Average
Fixed Assets

Sales/ Total
Assets

current
assetscurrent
liabilities

current
assets/curren
t liabilities

current assetInventory/cur
rent liability

1339507
9/119067
3
11.25
times

1211618
7/120559
0
10.05
times

9310049/
998291.5

1021370
5/937474

8692529/
945006

9.32
Times

10.89
Times

9.19
Times

365/11.2
5

365/10.0
5

365/9.32

365/10.8
9

365/9.19

32.44
Days or
32 days

36.31
Days or
36 Days

39.16
Days or
39 Days
App

33.52
Days or
34 Days
App

39.72
Days or
38 Days
App

1530224
2/768956
8

1425043
9/153230
52

1114669
8/152694
49

1203725
3/162665
58

1069333
8/169735
52

1.99
Times

0.93
Times

0.73
Times

0.74
Times

0.63
Times

1530224
2/161217
08

1425043
9/153205
97

1114669
8/151979
30

1203725
3/163026
65

1069333
8/170572
99

0.95
Times

0.93
Times

0.73
Times

0.74
Times

0.63
Times

53595185868566

43395746257996

40021846329557

45390596806838

65561088169138

-509048

1918422

2327373

2267779

1613030

5359518/
5868566

4339574/
6257996

4002184/
6329557

4539059/
6806838

6556108/
8169138

0.91

0.69

0.63

0.67

0.8

53595182312932/
5868566
0.52

43395742133484/
6257996
0.35

40021841850435/
6329557
0.34

45390591985645/
6806838
0.37

65561082738911/
8169138
0.47

Debt ratio

Total
liabilities/Tota
l assets

6278962/
1612170
8
0.39

6647503/
1532059
7
0.43

7009368/
1519793
0
0.46

8230532/
1630266
5
0.5

1002220
6/170572
99
0.58

Coverage
ratio

Ebit/Interest

1853976/
5653384

1438978/
640543

1175029/
870740

1726084/
1037294

3.28

2.25

1.35

1.66

1449921
6/107276
8
1.35

Gross
profit/sales

1907163/
1530224
2*100
12.46%

2134252/
1425043
9*100
14.98%

1836649/
1114669
8*100
16.48%

1823548/
1203725
3*100
15.15%

2000809/
1069333
8*100
18.71%

Operating
profit
margin

Operating
profit/sales

1853976/
1530224
2*100
12.11%

1438978/
1425043
9*100
10.10%

1175029/
1114669
8*100
10.54%

1726084/
1203725
3*100
14.33%

1449216/
1069333
8*100
13.55%

Net profit
margin

Net
profit/sales

1169652/
1530224
2*100
7.64%

484532/1
4250439
*100
3.40%

116429/1
1146698
*100
1.04%

487851/1
2037253
*100
4.05%

277861/1
0693338
*100
2.60%

Return on
assets

net profit
after tax/total
asset

1169652/
1612170
8*100
7.25%

484532/1
5320597
*100
3.16%

116429/1
5199730
*100
0.77%

487851/1
6302665
*100
2.99%

277861/1
7057299
*100
1.63%

Return on
equity

net profit
after tax/total
equity

1169652/
6168921
*100
18.96%

484532/4
999269*
100
9.69%

116429/4
514737*
100
2.58%

487851/4
386638*
100
11.12%

277861/8
361268*
100
8.27%

Earnings
per share

EAT/no of
common
shares
outstanding

1169652/
2455262
16

484532/2
4552621
6

116429/2
4552621
6

487851/2
2196457
2

277861/1
4552621
6

4.76

1.97

0.47

2.2

1.91

PROFITABI
LITY
RATIOS:
Gross
profit
margin

Liquidity Ratios
Net Working Capital 2010
Net working capital= current assets current liabilities
Net working capital= 6556108 8169138
= (1613030)
Current liabilities are greater than current assets by an amount of 1613030.

Net Working Capital 2011


Net working capital= current assets current liabilities
Net working capital= 4539059 6806838
= (2267779)
Current liabilities are greater than current assets by an amount of 2267779.

Net Working Capital 2012


Net working capital= current assets current liabilities
Net working capital= 4002184 6329557
= (2327373)
Current liabilities are greater than current assets by an amount of 2327373.

Net Working Capital 2013


Net working capital= current assets current liabilities
Net working capital= 4339574 6257996
= (1918422)
Current liabilities are greater than current assets by an amount of 1918422.

Net Working Capital 2014


Net working capital= current assets current liabilities
Net working capital= 5359518 5868566
= (509048)
Current liabilities are greater than current assets by an amount of 509048.

Comments
Net Working Capital
The company has high current values of short term debts than its current
assets throughout the five years. From 2010 to 2012, net working capital is
continuously decreasing and it reflects that company may using more short
term loans than its current assets. But from 2013 to 2014 company showed a
significant increment in its net working capital, may be because of the
increasing in short term assets or company is paying its short term debts.

Current Ratio 2010


Current ratio=

current assets
current liability

Current ratio=

6556108
8169138

=0.80
For every one current liability, there is 0.80 current asset.

Current Ratio 2011


Current ratio=

current assets
current liability

Current ratio=

4539059
6806838

= 0.67
For every one current liability, there is 0.67 current asset.

Current ratio 2012


Current ratio=

current assets
current liability

Current ratio=

4002184
6329557

Current ratio= 0.63


For every one current liability, there is 0.63 current asset.

Current ratio 2013


Current ratio=

current assets
current liability

Current ratio=

4339574
6257996

Current ratio= 0.69


For every one current liability, there is 0.69 current asset.

Current ratio 2014


Current ratio=

current assets
current liability

Current ratio=

5359518
5868566

Current ratio= 0.91


For every one current liability, there is 0.91 current asset.

Comments

Current ratios
Overall company position for paying its short term obligation is improving.
Although in 2011and 2012 its current ratio is decreased by small amount but
in next 2 years it significantly improved its position to pay its short term
debts.

QUICK RATIOS

Quick ratio 2010


Quick ratio=

current assetsinventories
current liability

Quick ratio=

65561082738911
8169138

= 0.47
For every one current liability, there are 0.47 current asset minus inventories.

Quick ratio 2011


Quick ratio=

current assetsinventories
current liability

Quick ratio=

45390591985645
6806838

= 0.37
For every one current liability, there are 0.37 current asset minus inventories.

Quick ratio 2012


Quick ratio=

current assetsinventories
current liability

Quick ratio=

40021841850435
6329557

= 0.34
For every one current liability, there are 0.34 current asset minus inventories.

Quick ratio 2013


Quick ratio=

current assetsinventories
current liability

Quick ratio=

43395742133484
6257996

= 0.35
For every one current liability, there are 0.35 current asset minus inventories.

Quick ratio 2014


Quick ratio=

current assetsinventories
current liability

Quick ratio=

53595182312932
5868566

= 0.52
For every one current liability, there are 0.52 current asset minus inventories.

Comments
Quick Ratio
From 2011 to 2013 quick ratio is decreasing and relatively stable. But in
2014 it is increased it means that company management is able to sell its
inventory effectively may be because of large sales and less inventory stocks
or company is paying off its short term debts.

Activity Ratios
Inventory turnover ratio 2010
Inventory turnover ratio=

cost of goods sold


averageinventory

Inventory turnover ratio=

8692529
2086469.5

Inventory turnover ratio=4.16times


The inventory converted into sales is 4.16 times in a year.

Inventory turnover in days


Inventory turnover in days=

no of daysa year
inventory turnover

Inventory turnover in days=

365
4.16

Inventory turnover in days=87.74 days


The inventory is converted into sales after 87.74 days.

Inventory turnover ratio 2011


Inventory turnover ratio=

cost of goods sold


averageinventory

Inventory turnover ratio=

10213705
2025182.5

Inventory turnover ratio=5.04 times


The inventory converted into sales is 5.04 time in a year.

Inventory turnover in days

Inventory turnover in days=

no of daysa year
inventory turnover

Inventory turnover in days=

365
5.04

Inventory turnover in days=72.42 days


The inventory is converted into sales after 72.42 days.

Inventory turnover ratio 2012


Inventory turnover ratio=

cost of goods sold


averageinventory

Inventory turnover ratio=

9310049
1593600.5

Inventory turnover ratio=5.84 times


The inventory converted into sales is 5.84 time in a year.

Inventory turnover in days


Inventory turnover in days=

no of daysa year
inventory turnover

Inventory turnover in days=

365
5.84

Inventory turnover in days=62.5 days


The inventory is converted into sales after 62.5 day.

Inventory turnover ratio 2013


Inventory turnover ratio=

cost of goods sold


averageinventory

Inventory turnover ratio=

12116187
1649076

Inventory turnover ratio=7.35 times


The inventory converted into sales is 7.35 time in a year.

Inventory turnover in days


Inventory turnover in days=

no of daysa year
inventory turnover

Inventory turnover in days=

365
7.35

Inventory turnover in days=49.66


The inventory is converted into sales after 49.66th day.

Inventory turnover ratio 2014


Inventory turnover ratio=

cost of goods sold


averageinventory

Inventory turnover ratio=

13395079
1828190

Inventory turnover ratio=7.33 times


The inventory converted into sales is 7.33 time in a year.

Inventory turnover in days


Inventory turnover in days=

no of daysa year
inventory turnover

Inventory turnover in days=

365
7.33

Inventory turnover in days=49.80


The inventory is converted into sales after 49.80th day.

Comments

Inventory turnover
Inventory turnover is continuously increasing from 2010 to 2104. In 2010 to
2012 it is below than the average industry norm which is 6.10. But in 2013 to
2014 it shows significant increment than the industry average.
Inventory turnover in days
Companys conversion of inventory into sales is remarkably increasing which
shows a positive image that company management is efficient in this regard.
Although it is less than industry norms in 2010 to 2013 which is 59.81 days
or 60 days.

Receivable turnover ratio 2010


Receivable turnover ratio=

net credit sales


average receivables

Receivable turnover ratio=

10693338
1541413

Receivable turnover ratio= 6.39 times


The receivables are 6.93 times collected in a year.

Receivable turnover in days


Receivable turnover in days=

no of days a year
receivableturnover

Receivable turnover in days=

365
6.39

Receivable turnover in days=57.12 days


The receivables are collected after every 57.12th day.

Receivable turnover ratio 2011


Receivable turnover ratio=

net credit sales


average receivables

Receivable turnover ratio=

12037253
1435668

Receivable turnover ratio= 8.38 times


The receivables are 8.38 times collected in a year.

Receivable turnover in days


Receivable turnover in days=

no of days a year
receivableturnover

Receivable turnover in days=

365
8.38

Receivable turnover in days=43.56 days


The receivables are collected after every 43.56th day.

Receivable turnover ratio 2012


Receivable turnover ratio=

net credit sales


average receivables

Receivable turnover ratio=

11146698
1518332

Receivable turnover ratio= 7.34 times


The receivables are 7.34 times collected in a year.

Receivable turnover in days


Receivable turnover in days=

no of days a year
receivableturnover

Receivable turnover in days=

365
7.34

Receivable turnover in days=49.73 days


The receivables are collected after every 49.73th day.

Receivable turnover ratio 2013


Receivable turnover ratio=

net credit sales


average receivables

Receivable turnover ratio=

14250439
1026688

Receivable turnover ratio=13.88 times


The receivables are 13.88 times collected in a year.

Receivable turnover in days


Receivable turnover in days=

no of days a year
receivableturnover

Receivable turnover in days=

365
13.88

Receivable turnover in days=26.21 days


The receivables are collected after every 26.21thday.

Receivable turnover ratio 2014


Receivable turnover ratio=

net credit sales


average receivables

Receivable turnover ratio=

15302242
985334

Receivable turnover ratio=15.53 times


The receivables are 15.53 times collected in a year.

Receivable turnover in days


Receivable turnover in days=

no of days a year
receivableturnover

Receivable turnover in days=

365
15.53

Receivable turnover in days=23.50 days


The receivables are collected after every 23.50th day.

Comments
Receivable turnover

Overall company receivable turnover is increasing although it is sudden


decreased in 2012. It shows that company management is effective in
extending credits as well as collecting debts. It also shows that company is
effectively using its assets. Company receivable days are far less than
industry average which is 59.76 days.

Payable turnover ratio 2010


Payable turnover ratio=

net credit purchases


/CGS
average payable

Payable turnover ratio=

8692529
945006

Payable turnover ratio=9.19 times


The payables are 9.19 times paid in a year.

Payable turnover in days


Payable turnover in days=

no of daysa year
payableturnover

Payable turnover in days=

365
9.19

Payable turnover in days= 39.72 days


The payables are paid after every 39.72thday.

Payable turnover ratio 2011


Payable turnover ratio=

net credit purchases


/CGS
average payable

Payable turnover ratio=

10213705
937474

Payable turnover ratio=10.89 times


The payables are 10.89 times paid in a year.

Payable turnover in days


Payable turnover in days=

no of daysa year
payableturnover

Payable turnover in days=

365
10.89

Payable turnover in days= 33.52 days


The payables are paid after every 33.52thdays.

Payable turnover ratio 2012


Payable turnover ratio=

net credit purchases


/CGS
average payable

Payable turnover ratio=

9310049
998291.5

Payable turnover ratio=9.32 times


The payables are 9.32 times paid in a year.

Payable turnover in days


Payable turnover in days=

no of daysa year
payableturnover

Payable turnover in days=

365
9.32

Payable turnover in days= 39.16 days


The payables are paid after every 39.16thday.

Payable turnover ratio 2013


Payable turnover ratio=

net credit purchases


average payable

Payable turnover ratio=

12116187
1205590

Payable turnover ratio=10.05 times


The payables are 10.05 times paid in a year.

Payable turnover in days


Payable turnover in days=

no of daysa year
payableturnover

Payable turnover in days=

365
10.05

Payable turnover in days=36.31 days


The payables are paid after every 36.31th day.

Payable turnover ratio 2014


Payable turnover ratio=

net credit purchases


average payable

Payable turnover ratio=

13395079
1190673

Payable turnover ratio=11.25 times


The payables are 11.25 times paid in a year.

Payable turnover in days


Payable turnover in days=

no of daysa year
payableturnover

Payable turnover in days=

365
11.25

Payable turnover in days=32.44


The payables are paid after every 32.44 day.

Comments
Payable turnover
Payable turnover in days of the company is relatively decreasing but it has
increased value in 2012. In all other years company is paying its debts in
lesser days than industry norm. It reflects that company is not attaining the
opportunities to invest its assets. It is not a good sign for company
management.

Fixed asset turnover 2010


Fixed assets turnover=

net
sales
assets

Fixed assets turnover=

10693338
16973552

Fixed assets turnover= 0.63


Fixes assets are converted into sales every 0.63 times a year.

Fixed asset turnover 2011

Fixed assets turnover=

net
sales
assets

Fixed assets turnover=

12037253
16266558

Fixed assets turnover= 0.74


Fixes assets are converted into sales every 0.74 times a year.

Fixed asset turnover 2012


Fixed assets turnover=

net
sales
assets

Fixed assets turnover=

11146698
15269449

Fixed assets turnover= 0.73


Fixes assets are converted into sales every 0.73 times a year.

Fixed asset turnover 2013


Fixed assets turnover=

net
sales
assets

Fixed assets turnover=

14250439
15323052

Fixed assets turnover= 0.93


Fixes assets are converted into sales every 0.93 times a year.

Fixed asset turnover 2014


Fixed assets turnover=

net
sales
assets

Fixed assets turnover=

15302242
7689568

Fixed assets turnover=1.99


Fixed assets are converted into sales every 1.99 times a year.

Comments
Fixed assets turnover
The company fixed assets turnover is relatively increasing over the time
span. Which shows that company is efficiently using its fixed assets to
generate profit.

Total asset turnover 2010


Total assets turnover=

sales
total assets

Total assets turnover=

10693338
17057299

Total assets turnover= 0.63 times


Total assets are converted into sales every 0.63 time in a year.

Total asset turnover 2011


Total assets turnover=

sales
total assets

Total assets turnover=

12037253
16302665

Total assets turnover= 0.74 times


Total assets are converted into sales every 0.74 time in a year.

Total asset turnover 2012


Total assets turnover=

sales
total assets

Total assets turnover=

11146698
15197930

Total assets turnover= 0.73 times


Total assets are converted into sales every 0.73 time in a year.

Total asset turnover 2013


Total assets turnover=

sales
total assets

Total assets turnover=

14250439
15320597

Total assets turnover= 0.93 times


Total assets are converted into sales every 0.93 time in a year.

Total asset turnover 2014


Total assets turnover=

sales
total assets

Total assets turnover=

15302242
16121708

Total assets turnover= 0.95 times


Total assets are converted into sales every 0.95 times in a year.

Comments
Total assets turnover
The company total assets turnover is relatively increasing over the time
span. Which shows that company is efficiently using its total assets to
generate sales revenue. Total assets turnover is related to sales (revenue), it
does not consider profit and loss.

Profitability Ratios
Gross profit margin 2010
Gross profit margin=

gross profit
* 100
sales

Gross profit margin=

2000809
10693338 * 100

Gross profit margin= 18.71


Gross profit margin is

18.71% generating from sales.

Gross profit margin 2011


Gross profit margin=

gross profit
* 100
sales

Gross profit margin=

1823548
12037253 * 100

Gross profit margin= 15.15


Gross profit margin is

15.15% generating from sales.

Gross profit margin 2012


Gross profit margin=

gross profit
* 100
sales

Gross profit margin=

1836649
11146698 * 100

Gross profit margin= 16.48


Gross profit margin is

16.48% generating from sales.

Gross profit margin 2013

Gross profit margin=

gross profit
* 100
sales

Gross profit margin=

2134252
14250439 * 100

Gross profit margin= 14.98%


Gross profit margin is

14.980% generating from sales.

Gross profit margin 2014


Gross profit margin=

gross profit
* 100
sales

Gross profit margin=

1907163
15302242 * 100

Gross profit margin= 12.46%


Gross profit margin is

12.46% generating from sales.

Comments
Gross profit margin

The gross profit margin is relatively decreasing with respect to 2010. It may
indicate that company is charging low sales price and relatively higher cost
of goods. Company should lower its expenses to reduce its cost.

Operating profit margin 2010


Operating profit margin=

EBIT
sales * 100

Operating profit margin=

1449216
10693338 * 100

Operating profit margin= 13.55%

Operating profit margin is 13.55% generating from sales.

Operating profit margin 2011


Operating profit margin=

EBIT
sales * 100

Operating profit margin=

1726084
12037253 * 100

Operating profit margin= 14.33%


Operating profit margin is 14.33% generating from sales.

Operating profit margin 2012


Operating profit margin=

EBIT
sales * 100

Operating profit margin=

1175029
11146698 * 100

Operating profit margin= 10.54%


Operating profit margin is 10.54% generating from sales.

Operating profit margin 2013


Operating profit margin=

EBIT
sales * 100

Operating profit margin=

1438978
14250439 * 100

Operating profit margin= 10.10%


Operating profit margin is 10.10% generating from sales.

Operating profit margin 2014


Operating profit margin=

EBIT
sales * 100

Operating profit margin=

1853976
15302242 * 100

Operating profit margin= 12.11%

Operating profit margin is 12.11% generating from sales.

Comments
Operating profit margin

The nature of operating profit margin of the company is of fluctuating.


Operating profit margin is increased from 2010 to 2011 but decreased in
2012 and 2013. In2014 it again increased which shows that company is
decreasing its expenses and eventually decreasing its cost.

Net profit margin 2010


Net profit margin =

EAT
sales * 100

Net profit margin =

277861
10693338 * 100

Net profit margin= 2.60%


Net profit margin is 2.60%generating from sales.

Net profit margin 2011


Net profit margin =

EAT
sales * 100

Net profit margin =

487851
12037253 * 100

Net profit margin= 4.05%


Net profit margin is 4.05%generating from sales.

Net profit margin 2012


Net profit margin =

EAT
sales * 100

Net profit margin =

116429
11146698 * 100

Net profit margin= 1.04%


Net profit margin is 1.04%generating from sales.

Net profit margin 2013


Net profit margin =

EAT
sales * 100

Net profit margin =

484532
14250439 * 100

Net profit margin = 3.40%


Net profit margin is 3.40%generating from sales.

Net profit margin 2014


Net profit margin =

EAT
sales * 100

Net profit margin =

1169652
15302242 * 100

Net profit margin = 7.64%


Net profit margin is 7.64%generating from sales.

Comments
Net profit margin

Operating profit margin is overall increasing in given time period. It has a


decreased value in 2012. The overall good position of net profit margin is
due to expenses other than the cost of goods sold are lower especially lower
interest expenses due to lower than average amount of debt.

Return on assets 2010


Return on assets=

net profit after taxes


* 100
total assets

Return on assets=

277861
17057299 * 100

Return on assets= 1.63%


The return on total assets is 1.63%.

Return on assets 2011


Return on assets=

net profit after taxes


* 100
total assets

Return on assets=

487851
16302665 * 100

Return on assets= 2.99%


The return on total assets is 2.99%.

Return on assets 2012


Return on assets=

net profit after taxes


* 100
total assets

Return on assets=

116429
15197930 * 100

Return on assets= 0.77%


The return on total assets is 0.77%.

Return on assets 2013


Return on assets=

net profit after taxes


* 100
total assets

Return on assets=

484532
15320597 * 100

Return on assets= 3.16%


The return on total assets is 3.16%.

Return on assets 2014

Return on assets=

net profit after taxes


* 100
total assets

Return on assets=

1169652
16121708 * 100

Return on assets=7.25%
The return on total assets is 7.25%.

Comments
Return on assets

Overall return on assets is increasing in time span but with a lower value in
2012. And in 2014 company shows a significant high value which shows that
management is effective in generating profit with its available assets.

Return on equity 2010


Return on equity=

EAT
stockholder equity * 100

Return on equity=

277861
8361268 * 100

Return on equity= 8.27%


The returns the company is earning for equity is 8.27%.

Return on equity 2011


Return on equity=

EAT
stockholder equity * 100

Return on equity=

487851
4386636 * 100

Return on equity= 11.12%

The returns the company is earning for equity is 11.12%.

Return on equity 2012


Return on equity=

EAT
stockholder equity * 100

Return on equity=

116429
4514737 * 100

Return on equity= 2.58%


The returns the company is earning for equity is 2.58%.

Return on equity 2013


Return on equity=

EAT
stockholder equity * 100

Return on equity=

484532
4999269 * 100

Return on equity= 9.69%


The returns the company is earning for equity is 9.69%.

Return on equity 2014


Return on equity=

EAT
stockholder equity * 100

Return on equity=

1169652
6168921 * 100

Return on equity=18.96 %
The returns the company is earning for equity is 18.96%.

Comments

Return on the equity

Overall return on equity is increasing in time span but with a highly lower
value in 2012. But after 2012 company took overall effective steps to
increase return on equity. And in 2014 company shows a significant high
value which shows that management is effective in generating profit with its
available stockholder equity.

Earnings per share 2010


Earnings per share=

earning available for common stock


no of shares of common stock

Earnings per share=

277861
145526216

Earnings per share= 1.91


Every share holder will may get till 1.91 as dividend.

Earnings per share 2011


Earnings per share=

earning available for common stock


no of shares of common stock

Earnings per share=

487851
221964572

Earnings per share= 2.20


Every share holder will may get till 2.20 as dividend.

Earnings per share 2012


Earnings per share=

earning available for common stock


no of shares of common stock

Earnings per share=

116429
245526216

Earnings per share= 0.47


Every share holder will may get till 0.47 as dividend.

Earnings per share 2013


Earning per share=

Earnings per share=

earning available for common stock


no of shares of common stock
484532
245526216

Earnings per share= 1.97


Every share holder will may get till 1.97 as dividend.

Earnings per share 2014


Earnings per share=

earning available for common stock


no of shares of common stock

Earnings per share=

1169652
245526216

Earnings per share= 4.76


Every share holder will may get till 4.76 as dividend.

Comments
Earnings per share

Overall earning per share is increasing in time span but with a highly lower
value in 2012. But after 2012 company took overall effective steps to
increase earnings per share. And in 2014 company shows a significant high
value which shows that management is effective in generating profit on
behalf on number of shares outstanding.

Leverage Ratios
Debt ratio 2010
Debt ratio=

total liablities
total assets

Debt ratio=

10022206
17057299

Debt ratio= 0.58


0.58 Of total assets are financed with total liabilities.

Debt ratio 2011


Debt ratio=

total liablities
total assets

Debt ratio=

8230532
16302665

Debt ratio= 0.50


0.50 Of total assets are financed with total liabilities.

Debt ratio 2012


Debt ratio=

total liablities
total assets

Debt ratio=

7009368
15197930

Debt ratio= 0.46


0.46 Of total assets are financed with total liabilities.

Debt ratio 2013


Debt ratio=

total liablities
total assets

Debt ratio=

6647503
15320597

Debt ratio= 0.43


0.43 Of total assets are financed with total liabilities.

Debt ratio 2014


Debt ratio=

total liablities
total assets

Debt ratio=

6278962
16121708

Debt ratio=0.39

Comments
Debt ratio
Debt ratio is decreasing in five years and it is a positive sign for the
company. It indicates that company is lowering its debts and lowering the
proportion of total assets financed by the firms creditors. The lower the
ratio, the lower the amount of other peoples money being used to generate

profits. The lower these ratio the lower the firms degree of indebtedness and
the lower financial leverage it has.

Coverage ratio 2010


Coverage ratio=

EBIT
Interest

Coverage ratio=

14499216
1072768

Coverage ratio=1.35
The interest earned 1.35 times a year.

Coverage ratio 2011


Coverage ratio=

EBIT
Interest

Coverage ratio=

1726084
1037294

Coverage ratio=1.66
The interest earned 1.66 times a year.

Coverage ratio 2012


Coverage ratio=

EBIT
Interest

Coverage ratio=

1175029
870740

Coverage ratio=1.35
The interest earned 1.35 times a year.

Coverage ratio 2013


Coverage ratio=

EBIT
Interest

Coverage ratio=

1438978
640543

Coverage ratio=2.25
The interest earned 2.25 times a year

Coverage ratio 2014


Coverage ratio=

EBIT
Interest

Coverage ratio=

1853976
5653384

Coverage ratio=3.28
The interest earned 3.28 times a year

Comments
Coverage ratio
Coverage ratio is overall increasing but has a low value in 2012. The
increasing coverage ratio indicates that the company has lowered degree of
financial leverage and its earnings are not volatile. Company has more ability
to make contractual interest payments. The increasing value is indicating
that company is more able to fulfill its interest obligations.

Conclusion
The current status of the company has been analyzed by the financial
analysis of the company from 2010_2014 by the Common size Analysis,
Trend Analysis and Ratio Analysis. The common size analysis of balance
sheet shows that over the period of five years there is a slight decrease in
company's current assets while an increase in fixed assets and there is a
decrease in the company's current and long term liabilities while a increase
in company's equity. It means that the company has invested more in the
plant, equipment and building in the course of three years therefore; it has
decreased current and long term liabilities which are used to finance the
fixed asset. The common size analysis of income statement shows that from
2010 to 2013 there is an increase in COGS and thus a decrease in gross
profit. It means that the unit cost of the product of the company has risen
over the years. Selling, marketing & distribution expense show an increase
over the period, administration expense and other operating expense
decrease, other operating incomes and operating profit also show a slight
decreases over time. Financial charges increase, profit before tax show a
increase, taxation also increased and profit after tax of the company
significantly increased from 2010 to 2014.The trend analysis of balance
sheet shows that the decrease of 8.43% in current assets from 2012 to 2013
is less than the increase of 23.50% from 2013 to 2014.And the increase of
23.40% in equity from 2013 to 2014 is more than the increase of 10.73% in
equity from 2012 to 2013.The Trend analysis of income statement shows that
the net sales has increased more from 2013 to 2014 than from 2011 to
2012.Moreover the COGS was also considerably decrease from 2013 to 2014
than from 2012 to 2013.So overall the Gross profit of the company has
decrease by 10.64 from 2013 to 2014 while 16.20 from 2012 to 2013.
The ratio analysis has explained the company financial state as satisfying. In
the liquidity ratios, the net working capital has increased from 2010 to 2014
because the company has increased its fixed assets in comparatively more
amount than its current liabilities. The liquidity of the firm according to
Current Ratio although has decreased over the five years but it is still close
to the standard requirement of 2:1.But according to the acid-test ratio, the
company is facing the problem of liquidity because the ratio is less than the
standard ratio.
In the ACTIVITY RATIOS, the Inventory turnover ratio shows that the company

should focus on increasing its sales because the company has been unable
to boost its sales over the previous years. The Gross Profit of ktml in year
2013 was 14.98% which diminished in 2014 to 12.46%. Operating Profits of
the company were 22.46% in 2013 which increased to 28.84% in 2014.
Operating profit margin has increased because companys operating
expenses are low. Reductions in Net profit can also be seen if compared to
last two years which means companys costs have increased. Return on
Assets showed an increment in 2014. The company is also earning significant
high amount for its shareholders in comparison to the previous years.
Moreover, there is a movement of equity to liability due to the decrease in
the debt ratio of the company. In 2014, the operating income of the company
is as large as 7.84 times of its expense which is very high than its previous
years. So we can say that although in first four years company net income is
satisfactory but it boomed in 2014. So company is in very good condition in
2014. And it has not any need to take any sudden steps to change its
position.

References
http://www.kmlg.com/kmlg/index.php
http://www.kmlg.com/kmlg/f_reports.php
http://www.kmlg.com/kmlg/financialreport.php?fid=4
http://www.kmlg.com/kmlg/docs/ktml/KTML_Financial_Highlights_20092014.pdf