ICI PAKISTAN LIMITED

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2004

Amount in Rs. '000

2004

Share Capital and Reserves

Authorised capital
1,500,000,000 ordinary shares of Rs 10 each ###

Issued, subscribed and paid-up capital 1,388,023

Capital reserves 465,845

Unappropriated profit 6,200,112

8,053,980
Surplus on Revaluation of Property, Plant
and Equipment 587,064

Non-Current Liabilities
Deferred liability 82,601

Current Liabilities
Current portions of:
Redeemable capital 0
Long-term loans 0
Short-term financing 112,102
Trade and other payables 5,082,277
5,194,379

###

Fixed Assets
Property, plant and equipment 5,250,166
Intangible assets 135,848
5,386,014

Deferred Tax Asset-net 870,294

Long-Term Investments 212,500
Long-Term Loans 243,962
Long-Term Deposits and Prepayments 26,209

Current Assets
Stores and Spares 663,252
Stock-in trade 2,912,877
Trade debts 815,399
Loans and advances 79,177
Trade deposits and short-term prepayments 153,809
Other receiveables 393,305
Taxation recoverable 344,449
Cash and bank balances 1,816,777
7,179,045

###
ER 2004

nt in Rs. '000
2003

###

1,388,023

465,845

3,608,001
5,461,869

679,813

74,568

2,000,000
2,011,800
0
3,903,777
7,915,577

###

5,395,447
132,111
5,527,558

825,888
2,333,760
114,675
24,054

652,196
2,046,297
643,473
80,290
166,193
316,575
356,840
1,044,028
5,305,892

###
 CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE
YEAR ENDED 31 DECEMBER 2004

Amount in Rs. '000

2004

Turnover ###

Sales Tax, commission and discounts 3,664,018

Net sales and commission income ###

Cost of sales ###

Gross profit 2,755,709

Selling and distribution expenses 744,459

Administration and general expenses 664,462
1,346,788

Finacial charges 258,940

Other operating charges 67,541
326,481

Other operating income 1,878,643

Profit/(loss) before taxation 2,898,950
Taxation 52,582
Profit/(loss) after taxation ###
T FOR THE

nt in Rs. '000
2003

###

4,028,970
###

###
2,664,367

985,152
591,534
1,087,681

390,714
77,658
468,372

187,243
806,552
40,308
766,244
 CONSOLIDATED CASH FLOW STATEMENT FOR THE
YEAR ENDED 31 DECEMBER 2004

Amount in Rs. '000

2004
Cash Flows from Operating Activities
Profit/loss before taxation 2,898,950

Adjustments for:
Gain on disposal of investment in Associate -1,788,524
Depreciation and amortisation 680,103
Gain on disposal of property, plant and equipment -6,095
Provision for diminution in the value of property,
plant and equipment 0
Provision for non-management staff gratuity
and eligible retired employees' medical scheme 12,463
Return on bank deposits and loans to Associate -4,220
Interest/mark-up expense 210,883
2,003,560

Movement in:
Working capital 44,385
Long-Term loans -129,287
Long-Term deposits and prepayments -2,155
Cash generated from opertaions 1,916,503

Payments for:
Non-management staff gratuity
and eligible retired employees' medical scheme -7,979
Taxation -84,597
Net cash generated from operating activities ###

Cash Flows from Investing Activities

Long-term investments 3,909,784
Payments for capital expenditure -550,120
Proceeds from disposal of property, plant
and equipment 15,287
Profit/mark-up received 4,220
Repayment of loan by Associate 0
Net cash generated from/(used in) investing
activities ###
Cash Flows from Financing Activities

Long-term borrowings less repayments -4,011,800

Short-term borrowings less repayments 0
Interest/mark-up -183,597
Dividend paid -347,054
Net cash used in financing activities -4,542,451

Net increase in cash and cash equivalents 660,647

Cash and cash equivalents at 1 January 1,044,028

Cash and cash equivalents at 31 December ###

Movement in Working Capital

(Increase)/decrease in current assets

Stores and spares -11,056
Stock-in trade -866,580
Trade debts -171,926
Loans and advances 1,311
Trade deposits and short-term prepayments 12,384
Other receivables -76,730
-1,112,597

Increase in current liabilities

Trade and other payables 1,157,180
44,583

Cash and cash equivalents at 31 December

comprise of:

Cash and bank balances 1,816,777

Running finances utilised under mark-up
arrangements -112,102
###
FOR THE

nt in Rs. '000
2003

806,552

0
647,677
-41,145

21,400

11,474
-7,667
380,349
1,818,640

436,816
-113,521
-2,371
2,139,564

-15,801
-190,698
###

-6,300
-459,089

54,496
7,667
300,000

-103,226
 -363,783
-250,000
-335,526
-312,314
-1,261,623

568,216

475,812
###

-5,555
-302,475
28,911
214,204
-40,621
-5,483
-111,019

547,835
436,816

1,044,028

0
###
 BASE YEAR YEAR 1 YEAR 2 YEAR 3 YEAR 4
SALES 100,000 102,000 105,060 106,636 111,968
COST OF GOODS SOLD (60,000) (61,800) (63,654) (65,564) (67,858)
GROSS PROFIT 40,000 40,200 41,406 41,072 44,109
OPERATIONAL EXPENSES:
SALARY EXPENSES (2,000) (2,034) (2,069) (2,104) (2,140)
MARKETING EXPENSES (1,000) (1,007) (1,014) (1,021) (1,028)
DEPRECIATION (BUILDING) (2,000) (2,750) (2,613) (2,482) (2,358)
BAD DEBTS (1,000) (510) (525) (533) (280)
(6,000) (6,301) (6,220) (6,140) (5,806)
EBIT 34,000 33,899 35,186 34,932 38,304
INTEREST EXPENSES (2,000) (5,000) (5,000) (4,500) (4,000)
EBT 32,000 28,899 30,186 30,432 34,304
TAX @ 50% (16,000) (14,450) (15,093) (15,216) (10,291)
NET PROFIT 16,000 14,450 15,093 15,216 24,013
DIVIDEND 0 (433) (453) (456) (1,201)
RETAINED EARNINGS 16,000 14,016 14,640 14,760 22,812

ASSUMPTIONS: YEAR 1 YEAR 2 YEAR 3 YEAR 4

Sales growth rate 2.00% 3.00% 1.50% 5.00%
CGS increase 3.00% 3.00% 3.00% 3.50%
Salary Expense increase 1.70%
Marketing Expense increase 0.70%
Book Value Building 55,000 52,250 49,638 47,156 44,798
Debtors at end of base year 25,000 25,500 26,265 26,659 27,992
Depreciation Rate 5% 5% 5% 5%
Outstanding Ioan 50,000 50,000 45,000 40,000
Interest Rate 10% 10% 10% 10%
Tax Rate 50% 50% 50% 30%
Dividend 3% 3% 3% 5%
YEAR 5
117,566
(70,233)
47,333

(2,176)
(1,035)
(2,240)
(294)
(5,745)
41,588
(4,000)
37,588
(11,276)
26,311
(1,316)
24,996

YEAR 5
5.00%
3.50%

42,558
29,392
5%
40,000
10%
30%
5%
 Ratios for Financial Statement Analysis
Liquidity Analysis Ratios

Current Ratio
Current Assets
Current Liabilities

Quick Ratio
Quick Assets
Current Liabilities
Quick Assets = Current Assets - Inventories

Net Working Capital Ratio

Net Working Capital

Total Assets
Net Working Capital = Current Assets - Current
Liabilities

Profitability Analysis Ratios

Return on Assets (ROA)

EBIT * 100
Total Assets

Return on Equity (ROE)

EBIT * 100
Average Stockholders' Equity

Return on Common Equity (ROCE)

Net Income * 100

Sales

Earnings Per Share (EPS)

Net Income
No. of Shares
Activity Analysis Ratios

Assets Turnover Ratio

Sales
Total Assets

Accounts Receivable Turnover Ratio

Sales
Accounts Receivable

Inventory Turnover Ratio

Cost of Goods Sold
Inventories

Capital Structure Analysis Ratios

Debt to Equity Ratio

Total Liabilities
Total Stockholders' Equity

Interest Coverage Ratio

EBIT
Interest Expense

Capital Market Analysis Ratios

Price Earnings (PE) Ratio

Market Price of Common Stock Per Share
Earnings Per Share

Dividend per share

Cash Dividend
No. of shares

Dividend Yield

DPS * 100
 Market Price of Common Stock Per Share

Dividend Payout Ratio

DPS
EPS

Book Value
Shares Holders Equity
No. of shares
 2004 2003

7,179,045 1.38 5,305,892 0.67

5,194,379 7,915,577

4,112,359 0.79 3,093,402 0.39

5,194,379 7,915,577

1,984,666 0.14 -2,609,685 -0.18

13,918,024 14,131,827

134,678,800 9.68 108,768,100 7.70

13,918,024 14,131,827

134,678,800 16.72 108,768,100 19.91

8,053,980 5,461,869

284,636,800 13.36 76,624,400 3.46

21,303,498 22,156,265

2,846,368 20.51 766,244 5.52

138802.3 138802.3
21,303,498 1.53 22,156,265 1.57
13,918,024 14,131,827

21,303,498 26.13 22,156,265 34.43

815,399 643,473

14,883,771 14.13 15,462,928 20.49

1,053,137 754,561

5,864,044 0.73 8,669,958 1.59

8,053,980 5,461,869

1,346,788 5.20 1,087,681 2.78

258,940 390,714

85.05 4.15 75.65 13.70

20.51 5.52

347054 2.50 312314 2.25

138,802 138,802

250.03 2.94 225.01 2.97

 85.05 75.65

2.50 0.122 2.25 0.41

20.51 5.52

8,053,980 58.02 5,461,869 39.35

138,802 138,802