Interpretation of Horizontal analysis:

Sales
Sales of OGDCL shows a continuous growth from the period of 2010 to 2014 but
shows a slight decline in year 2015 sales as compared to previous periods,
2014,2013,2012,2011 except 2010 sales, the growth of sales can be observed in
terms of Rs. 68,053,045(2015) ,114,442,391(2014) ,80,793,627(2013) ,
55,266,863(2012) ,13,059,427(2011) same trend can be observed from trend
analysis as sales are growing as compared to 2010 sales 47.7%(2015), 80.3%(2014)
,56.7%(2013),38.8%(2012),9.2% (2011).
Royalty:
The royalty expense of OGDCL shows growth from the period of 2010 to 2014 but
shows a slight decline in year 2015 royalty as compared, 2014,2013,2012,2011
except 2010 royalty charges, the change in amount of royalty in RS is
7,007,859,12,991,250 ,9,170,626 ,6,394,333 ,974,758 respectively same trend can
be observed by trend analysis as royalty charges are growing as compared to 2010
royalty 41.9%(2015), 77.7%(2014), 54.8%(2013), 38.2%(2012), 5.8%(2011).
Operating Expenses:
Operating expenses shows a continuous growth from the period of 2010 to 2015 the
growth of operating expenses can be observed in terms of Rs from 2010 to 2015
29,207,663(2015) ,25,105,296(2014), 13,055,636(2013) ,10,651,724(2012) ,
9,270,04(2011) repectively.Same trend can be observed from tend analysis
operating expenses
are
growing
from
2010
to
123.1%(2015),105.8%(2014),55.0%(2013),44.9%(2012),39.1%(2011)

2015

Transportation charges:
The companys transportation charges shows an increase from period of 2010 to
2015, this growth of transportation charges in RS are 493,547,895,976,757,820,
537,488, and 709,072 same trend can be observed from trend analysis that
transportation charges shows a growth from period of 2010 to 2015
33.1%(2015),60.0%(2014),50.8%(2013),36.0%(2012), 47.5(2011)% .
Gross profit:
The gross profit of the company shows a continuous growth from the period of 2010
to 2015 , but a decrease in G.P is observed in year 2015 as compared to year
2012,2013,2014
G.P can be observed in terms of Rs from 2010 to 2015
493,547(2015), 895,976(2014), 757,820(2013), 537,488(2012), 709,072 (2011).The
same trend can be observed by trend analysis as G.P is growing from period of 2010
to 2015 as 31.1%(2015) 75.0%(2014)57.5%(2013)37.5%(2012)2.1% (2011).
Other income:

The companys other income shows an increase from period of 2010 to 2015, this
growth of other income in
RS are 15,885,977(2015) ,15,826,039(2014) ,
12,394,246(2013) ,6,360,229(2012),3,757(2010).Same trend can be observed from
trend analysis as other income is increasing from year 2010 to 2015
481.4%(2015),479.5%(2014),375.6%(2013),192.7%(2012),0.1%(2011).

Exploration and prospecting expenditure:

The exploration and prospecting expenditure in year 2011 and 2012 shows an
decrease as compared to 2010,but in year 2013,2014 and 2015 shows an increase
in exploration and prospecting expenditure as compared to 2010.In terms of Rs
change cane be observed 3,725,148(2015) ,820,426(2014) ,7,077,242(2013) ,
(3,854,596)2012,(1,280,665)2011.Same trend can be observed by trend analysis
47.1%,10.4%,89.6%,-48.8%,-16.2%.
General and administration expenses:
An increasing trend has been observed in companys general and administration
expenses from 2010 to 2015 the change in Rs as compared to 2010 can is observed
as
2,710,094(2015)
,1,366,771(2014)
,803,466(2013)
,602,152(2012)
635,511(2011). Same trend can be observed by trend analysis 169.6%(2015)
85.5%(2014)50.3%(2013)37.7%(2012)39.8%(2011).
Finance cost
An increasing trend has been observed in companys financial cost as compared to
2010 which can be observed in terms of Rs 2,024,879(2015) ,4,410,377(2014) ,
3,066,092(2013) ,2,343,688(2012), 127,866(2011). Same trend can be observed by
trend analysis 43.4%(2015),94.6%(2014),65.8%(2013),50.3%(2012),2.7%(2011).
Workers profit participation fund:
An increasing trend has been observed in companys financial cost as compared to
2010 which can be observed in terms of Rs 979,623(2015),49,793(2014) ,
40,774(2013) ,23,097(2012) ,14,320(2011). Same trend can be observed by trend
analysis
1527.8%(2015),77.7%(2014),63.6%(2013),36.0%(2012),22.3%(2011)
Profit before taxation:
An increasing trend has been observed in companys profit before tax as compared
to 2010 which can be observed in terms of Rs as 38,472,700(2015) ,83,797,152
(2014),58,255,753(2013) ,44,530,061(2012) ,2,429,451(2011). Same trend can be
observed
by
trend
analysis
43.4%(2015),94.6%(2014),65.8%(2013),50.3%(2012),2.7%(2011).
Profit (NI):
The profit of the is showing an increasing trend as compared to year 2010,but there
in decrease in profit in 2011,2013,2015 as compared to 2012,2014 this can be
observed
in
RS
as
28,071,907
(2015),64,737,425(2014)
,

32,095,494(2013),37,728,450(2012) ,4,350,145(2011). Same trend

observed
by
trend
47.4%(2015),109.4%(2014),54.2%(2013),63.8%(2012),7.4%(2011).

can be
analysis

Vertical Analysis interpretations:

Royalty:
From the vertical analysis we have deducted that royalty charges as a percentage of
sales
are decreased from year 2013 to 2015 which can be shown as
11.3%(2015),11.3%(2014),11.6%(2013).
Operating expenses:
From the vertical analysis we have deducted that operating expenses as a
percentage of sales are increased from year 2013 to 2015 which can be shown as
25.1%(2015),19.0%(2014),16.5% (2013).
Transportation charges:
From the vertical analysis we have deducted that transportation charges as a
percentage of sales are decreased from year 2013 to 2015 which can be shown as
0.9%(2015),0.9%(2014),1.0%(2013).
Gross profit:
From the vertical analysis we have deducted that G.P as a percentage of sales are
decreased
from
year
2013
to
2015
which
can
be
shown
as
62.7%(2015),68.5%(2014),70.9%(2013).
Other income;
From the vertical analysis we have deducted that other income as a percentage of
sales are increased from year 2013 to 2015 which can be shown as
9.1%(2015)7.4%(2014),7.0%(2013).
Exploration and prospecting expenditure:
From the vertical analysis we have deducted that the exploration and prospecting
expenditure were decreased in year 2014 as compared to 2013 but there was an
increase in exploration and prospecting expenditure in year 2015 as compared to
2014 which can be shown as 5.5%(2015),3.4%(2014),6.7%(2013).
General and administration expenses:

From the vertical analysis we have deducted that general and administration
expenses as a percentage of sales are increased from year 2013 to 2015 which can
be shown as 2.0%(2015),1.2%(2014),1.1%(2013).
Finance cost:
From the vertical analysis we have deducted that the financial charges were
increased in year 2015 as compared to 2014 and 2013 which can be shown as
1.2%(2015),0.9%(2014),1.0%(2013).
Workers profit participation fund:
From the vertical analysis we have deducted that the workers profit participation
fund were decreased in year 2015 as compared to 2014 and 2013 which can be
shown as 3.2%(2015),3.5%(2014),3.5%(2013).

Profit before taxation:

From the vertical analysis we have deducted that the profit before taxation as a
percentage of sales was decreased in year 2015 as compared to 2014 and 2013
which can be shown as 60.3%(2015),67.1%(2014),65.7%(2013).
Profit for the year:
From the vertical analysis we have deducted that the profit for the year as a
percentage of sales was decreased in year 2015 as compared to 2014 but its shows
a little growth in 2015 as compared to 2013 which can be shown as
41.4%(2015),48.2%(2014),40.9%(2013).