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DETAILS Sugarcane Crushed (metric tons) Sugar Produced (metric tons)

2009-2010 774,230 73,175

2008-2009 736,420 66,495

2007-2008 1,062,304 98,113

Sugar Recovery Rate

Molasses Produced (metric tons) MDF Board Produced (metric tons)

9.45%
35,185 41,881

9.03%
35,528 39,987

9.24%
55,452 47,260

CONTINUE.

Also the production of Medium Density Fiber (MDF) is higher in 2008 (47260 metric tons) and lower in 2009 due to the frequently load- shedding by WAPDA. To increase the capacity of the plant the management decided to acquire its own power generation to overcome the situation. One additional boiler and turbine of 15 mega watt have been installed valuing Rs. 262.106 million which is computed as (272083-9977) shown in Operating Asset schedule that result to increase in company Property, Plant and equipment by 15.20% (2681942-2327921)/2327921 from previous year 2009. In year 2009-2010 and 2008-2009 the overall production of sugar was 3.189 million tons as against 4.737 million tons produced in 2007-2008 posting a reduction of 32.68% computed as (3.189-4.737)/4.737 .
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Years 2008 2009

Sales

Cost of Sales Rupees in 000 2,426,120 3,567,029 5,311,417 7,859,016

9,089,781 7,859,016 6,313,220

Gross Profit 622,358 682,952

Profit After tax 212,217 119,738

3,048,478
4,249,981 6,313,220 9,089,781

2010
2011 F
10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000

1,001,803
1,230,765

254,398
132,834
Sales

Cost of Sales Gross Profit

4,249,981 3,048,478 2,426,120 622,358 212,217 682,952 119,738 3,567,029

5,311,417

4,000,000
3,000,000 2,000,000 1,000,000 -

1,001,803 254,398

1,230,765 132,834

5 Profit After Tax

From period 2008 to 2010 the sales was increasing with the increasing rate, due to the increasing demand of sugar day-by-day. Sales increased by 39.41% to 48.55% in 2009 to 2010 respectively. Forecasted Sales growth in 2011 was 43.98% which is the average growth sales of 2009 and 2010. Similarly the cost of sales growth in 2009 was 47.03% of 2008 which shows that the COS growth is higher than the growth in sales of 2009 (39.41% as shown above). Cost of raw material was higher In year 2009, the company profitability decreased by 43.58% of 2008 because of the huge finance cost (58.59% of 2008) and also the company other operating 6 income reduced to 68.79% of 2008.

LIMITATION: The industry average is based on the data of six companies taken from the financial statements. The calculation done in the attached excel file. The analysis done in four broad Categories. a) Company Efficiency b) Company Liquidity c) Company Solvency d) Company Profitability
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During period 2008-2010 the inventory turnover increasing due to decrease in inventory and increase in COGS. Inventory in days decreasing from 106 to 66 but to match the industry, company must to increases the inventor turnover ratio. The company business based only cash transactions rather than credit sales. ` The company payable turnover is greater than the industry average this shows that company doing frequently payments reflects company cash positions is better than the industry. The company cash conversion cycle in 2008 and 2009 was higher from industry average but in 2010 it become lower to 31 from 54 meanwhile the industry conversion reached to 180 days.

The company overall liquidity position was lower in 2008-2010 from industry, it shows that the company is less capable to meet the short-term obligations with the short term assets. The company quick ratio is very much lower than the current ratio due the major portion of current asset is inventory (22% to 27%) , resulting to decreases in numerator. Itself the company cash flow from operation ratio was lower but is better than industry average which shows company cash flows from operation is higher.

The company solvency performance in term debt-toequity ratio is improving when compared to industry average this shows company reliance on debt is lower. The company interest coverage ratio was good in 2008 and 2010 but lower in 2009 due to the high finance cost. The company financial leverage in 2010 was lower from 2008 and 2009.

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The company profitability from 2008-2010 was better than the industry average. The company Net profit margin was higher 6.96% in 2008 and lower in 2009 to 2.82 and than improved in 2010 to 4.03%. The company earning per share improved in 2010(13.70) from 6.45 in 2009 lower due to the lower income in 2009 compared with 2008 and 2010. Company better EPS from industry average and also better dividend payout ratio provides opportunities for investors and company may raised huge funds for financing of future Capital Expenditure.

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THANK YOU

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