Pak Arab- Accounting Policies

Revenue Recognition: Revenue from sale of fertilizer products is

recognized on dispatch to customers
Stores and spare parts: Valued at weighted average cost
Stock-in-trade: All stocks are valued at the moving average cost
Intangible assets are amortized using the straight line method
Goodwill: Goodwill is tested annually for impairment and carried
at its carrying value less any identified impairment losses
Property, plant and equipment: are stated at cost less
accumulated depreciation. Depreciation is determined on a
straight line method.
Major Expenses: Expenses are charge to profit and loss account as
and when incurred.

 Investment in equity instruments of subsidiary company are measured at

fair value. In case quoted market price is not available, investments are
measured at a value determined through an appropriate valuation
methodology
Investment in equity instruments of associated company are accounted
for using equity method

Financial Ratios
FFC
LIQUIDITY AND EFFICIENCY RATIOS
Current ratio
Acid-test ratio

Accounts receivable turnover

Inventory turnover
Days' sales uncollected
Days' sales in inventory
Total assets turnover
Account Payable Period
Operating Cycle
SOLVENCY RATIOS
Debt ratio
Equity ratio
Times interest earned

2010

2009 % change

Pak-Arab
2010
2009 % change

0.99
0.83

0.96
0.78

3%
6%

1.05
0.73

1.35
0.98

91.75
9.46
3.98
39.88
1.19
119.71

96.26
7.65
3.79
63.71
1.04
105.35

-5%
24%
5%
-37%
15%

9.85
1.82
32.70
118.80
0.36

11.70
1.80
35.80
104.81
0.32

13%

53.88250827
11.28788987
6.773997939
32.33553872
0.193950361

0.69
0.31

0.72
0.28

-5%
14%

0.71
0.24

0.67
0.28

6%
-15%

0.860896402
6.188886662

12.87

8.43

53%

2.31

2.64

-13%

7.144299399

0.21
0.71
0.17

0.15
0.56
0.15

42%
26%
17%

0.06
0.24
0.18

0.09
0.09
0.28

-31%
174%
-38%

4%
35%
20%

0.37
0.03
22.18
0.20

0.35
0.03
15.62
0.13

8%
20%
42%
55%

0.50
0.03
7.18
0.08

0.41
0.00
10.53
0.13

22%
725%
-32%
-37%

47%
10
3.24

-22%
-26%

1%

Engro

2010
0.83
0.772861354

PROFITABILITY RATIOS
Return on total assets
Return on common stockholders' equity
Profit margin ratio (Net margin)
Gross margin ratio
Book value per common share
Basic earnings per share
Cash flow on total assets

Financial Ratios
FFC

Pak-Arab

Engro

2010

2009

% change

2010

2009

% change

2010

Current ratio

0.99

0.96

3%

1.05

1.35

-22%

0.83

Acid-test ratio

0.83

0.78

6%

0.73

0.98

-26%

0.772861354

Accounts receivable turnover

91.75

96.26

-5%

9.85

11.70

Inventory turnover

9.46

7.65

24%

1.82

1.80

Days' sales uncollected

3.98

3.79

5%

32.70

35.80

6.773997939

Days' sales in inventory

39.88

63.71

-37%

118.80

104.81

32.33553872

Total assets turnover

1.19

1.04

15%

0.36

0.32

13%

0.193950361

Account Payable Period

119.71

105.35

Operating Cycle

-75.85

LIQUIDITY AND EFFICIENCY RATIOS

53.88250827
1%

11.28788987

-28.5

SOLVENCY RATIOS

Debt ratio

0.69

0.72

-5%

0.71

0.67

6%

0.860896402

Equity ratio

0.31

0.28

14%

0.24

0.28

-15%

6.188886662

Times interest earned

12.87

8.43

53%

2.31

2.64

-13%

7.144299399

Financial Ratios
FFC

Pak-Arab

Engro

2010

2009

% change

2010

2009

% change

2010

Return on total assets

0.21

0.15

42%

0.06

0.09

-31%

4%

Return on common stockholders' equity

0.71

0.56

26%

0.24

0.09

174%

35%

Profit margin ratio (Net margin)

0.17

0.15

17%

0.18

0.28

-38%

20%

Gross margin ratio

0.37

0.35

8%

0.50

0.41

22%

47%

Book value per common share

0.03

0.03

20%

0.03

0.00

725%

10

Basic earnings per share

22.18

15.62

42%

7.18

10.53

-32%

3.24

Cash flow on total assets

0.20

0.13

55%

0.08

0.13

-37%

Price-earnings ratio

4.11

4.27

-4%

7.18

10.53

-32%

Dividend yield

0.02

0.05

-55%

n/a

n/a

Share Price

91.13

66.66

PROFITABILITY RATIOS

MARKET RATIOS
Company is not listed
Company is not listed