Analysis of Financial Statements -- Al karam & Gul Ahmad

Analysis of Financial Statements of

Al-Karam & Gul Ahmad Textile Industry (2011-2015)

Muhammad Ahmad [email protected]

Ali Jan [email protected]

Syed Hassaan Ali [email protected]

mailto:[email protected]



Preface his report provides the analysis of financial statement of the last five years of two

companies Gul Ahmad Textile Mills & Al-karam Textile Mills (Pakistan Synthetics

Limited). It encompasses all the knowledge of the financial statements of the firms and

also include the words about the trends and behaviors of the company. To understand the general

behavior of companies of the textile industrial sector of Pakistan.

T

Acknowledgement

We would like to express our deepest appreciation to all those who provided us the possibility to

complete this report. A special gratitude we give to our Ma’am, Ms. Quratul Ain Benish, whose

contribution in stimulating suggestions and encouragement, helped us to coordinate our

assignment especially in writing this report.

Furthermore we would also like to acknowledge with much appreciation the crucial role of the

Institute of Management Sciences, who gave the permission to use all required equipment and

the necessary materials to complete the task “Financial Analysis”. A special thanks goes to our all

team mates, Mr. Muhammad Ahmad, Mr. Syed Hassaan Ali and Mr. Ali Jan, who have invested

their full efforts with their professional skills and perform their tasks in the productive and most

effective manner to accomplish this assignment of Analysis of Financial Statements. Last but not

least, many thanks go to our all classmates, who make it possible by their support, encouragement

and their guidance.

Contents Introduction: ................................................................................................................................................. 5

History of Al-Karam Textile Mills: ............................................................................................................. 6

History of Gul Ahmad Textile Mills: .......................................................................................................... 7

Ratios Calculations: ....................................................................................................................................... 9

Ratio Analysis .............................................................................................................................................. 10

Net Working Capital ................................................................................................................................ 10

Current Ratio: .......................................................................................................................................... 11

Acid Test Ratio/Quick Ratio: ................................................................................................................... 12

Cash Ratio: .............................................................................................................................................. 13

Debt Ratio: .............................................................................................................................................. 14

Debt/Equity Ratio: .................................................................................................................................. 15

Debt/Tangible Net Worth: ...................................................................................................................... 16

Net Profit Margin: ................................................................................................................................... 17

Return on Total Equity: ........................................................................................................................... 18

Assets Turnover Ratio: ............................................................................................................................ 19

Return on Assets: .................................................................................................................................... 20

Operating Income Margin: ...................................................................................................................... 21

Gross Profit Margin: ................................................................................................................................ 22

Return on Investment: ............................................................................................................................ 23

Degree of financial Leverage: ................................................................................................................. 24

Earnings per Share: ................................................................................................................................. 25

Price/Earnings Ratio: ............................................................................................................................... 26

Dividend Yield: ........................................................................................................................................ 27

Percentage of Retained Earnings: .............................................................. Error! Bookmark not defined.

Dividend Payout: ........................................................................................ Error! Bookmark not defined.

Book Value per Share: ............................................................................................................................. 28

Trend Analysis: ............................................................................................................................................ 29

Vertical Analysis (Profit & Loss Statement): ........................................................................................... 29

Vertical Analysis (Liabilities, Balance Sheet): .......................................................................................... 39

Vertical Analysis (Assets, Balance Sheet): ............................................................................................... 49

Horizontal Analysis: ..................................................................................................................................... 54

Introduction: Textiles is the most important manufacturing sector of Pakistan and has the longest production chain,

with inherent potential for value addition at each stage of processing, from cotton to ginning, spinning,

fabric, dyeing and finishing, made-ups and garments. The sector contributes nearly one-fourth of

industrial value-added, provides employment to about 40% of industrial labor force, and consumes about

40% of banking credit to manufacturing sector and accounts for 8% of GDP. Barring seasonal and cyclical

fluctuations, textiles products have maintained an average share of about 54% in national exports.

However, despite being the 4th largest producer and 3rd largest consumer of cotton globally, Pakistan’s

comparative advantage diminishes due to export of low value added textiles products.

The development of the textiles sector in Pakistan was dictated by the quantitative restrictions imposed

by developed countries under the MFA and ATC, resulting in structural anomalies and lopsided capacities.

While the spinning sector grew quickly, the highest value added sector – woven garments – failed to

attract adequate investment due to non-availability of quotas in this sector. At the same time, the fabric

sector remained in the non-mill sector with the bulk of production is coming from inefficient small power

loom units. The overall technological configuration of the industry needs major up-gradation for replacing

that machinery which has become obsolete or has outlived its economic life. In addition, clusters need to

be developed and sustained through structured interventions, especially in the SME sector.

The textile industry has also suffered for lack of adequate infrastructure facilities which are so desperately

needed for its smooth operations. Apart from absence of exclusive areas dedicated to textiles production,

energy has emerged as a major issue especially in the Punjab where approximately 65% of the industrial

units are located. Skilled manpower is also significantly deficient with the result that the sector is suffering

from low per capita productivity. The physical and institutional infrastructure, especially at sea and dry

ports, requires revamping and reform. Likewise, numerous parallel and overlapping regulations add to

management and production costs.

On the other hand, the post-quota environment brought challenges of its own, as an uneven playing field

was created as many developed countries granted unilateral concessions and preferential treatment to a

number of textiles and clothing exporting countries of their choice. Now, with the award of GSP+ status

to Pakistan in 2014, the prospects for enhanced market share have improved. Pakistan has natural

comparative advantages of home-grown fibers and availability of relatively cheap labor that can be

effectively converted to competitive advantages through appropriate policy interventions.

Two companies have chosen for the analytical review of financial statements,

1. Al-Karam Textile Mills (Pakistan Synthetic Limited)

2. Gul Ahmad Textile Mills

History of Al-Karam Textile Mills: The Group has its origins in the early 1900s when it started the trade of grains and oil in the subcontinent.

Entrepreneurial skills and acumen have always been the driving force behind the success of the Group.

Based in Karachi, the Alkaram Group has unfolded its vision of growth and established its multifaceted

concerns countrywide and abroad. Following opportunities in the newly created state of Pakistan, the

Group flourished in the fields of textiles, F & B, salt mining, hospitality, trading and distribution.

A melting pot of skilled employees and advanced technology, Alkaram has been brushed upon the wall of

success using a simple formula; short lines of communication were kept, along with consistently quick yet

well thought-out decisions by managers that have been part of the Alkaram mix since the start. In using

this simple philosophy, we have ensured that the identity of Alkaram has not been lost along the way and

that the ladder of success we have been climbing has been leaning against the right wall. Soon the Group

became the largest business family of the country by creating the most modern textile units that went on

to become household names of the country.

Alkaram Textile Mills Pvt. Ltd. founded in 1986 as a vertically integrated composite textile mill, Alkaram is

a household name when it comes to Fashion Fabrics. Alkaram Textile mills creates everything from shower

curtains to apparel for men and women.

The Retail Arm of the Group

Realising the growth in retail, the Group's vision is to become the largest modem retailer by providing mid

to upper markets brands to fulfill customer needs. With customer needs at the forefront, we have created

private brands and have franchised international specialty brands to bring the best retail experience and

value for our customers.

1. Alkaram Studio

Building on the strength of Alkaram Textiles, the concept was created for customers to experience the

depth, range and creativity of the Alkaram product portfolio. From fashion fabrics and apparel to kids-

wear, home textiles, to home-ware needs, Alkaram Studio is a complete creative concept where

customers can realize their dreams and aspirations. Alkaram Studio is a perfect heaven for aesthetically-

inclined women. You can get close to the originality of the style with fashion fabrics, ready-to-wear lines

and stunning accessories. It enables you to create your own clothes and accessorize with all the material

you need.

2. BabyShop

With 132 stores across the region, Babyshop is part of Landmark Group, the largest retail conglomerate

of the Gulf region. Babyshop is a complete store for all your kids' needs, one stop.

3. LifeStyle

With focus on modern women's personal and home improvement needs, Lifestyle offers the best brands

under one roof for cosmetics, fashion accessories, home decor, furnishing and lighting. Lifestyle has 108

stores in the region and has become the consumers' first choice.

4. Splash

Another concept from Landmark Group, Splash is focused on youth fashion. It offers a complete product

mix catering to avant garde customers' needs of street-wear and trendy clothes.

5. Mango

Mango requires no introduction as it is one of the largest women's fashion brands of Europe and is

renowned across the world. With several stores planned across the nation, it is soon to become a

household name for the elegant Pakistani fashion scene.

History of Gul Ahmad Textile Mills: The story of textiles in the subcontinent is the story of Gul Ahmed. The group began trading in textiles in

the early 1900s. The group entered in the field of manufacturing with the establishment of today’s iconic

name of Gul Ahmed Textile Mills Ltd in the year 1953. Since its listing on the Karachi Stock Exchange in

1970, the company has been making rapid progress and enjoying a leading position in the world of textiles.

With an installed capacity of more than 130,000 spindles, 300 state-of-the-art weaving machines and most

modern yarn dyeing, processing & stitching units, Gul Ahmed is a composite unit – making everything

from cotton yarn to finished products. Gul Ahmed has its own captive power plant comprising of gas

engines, gas & steam turbines, and backup diesel engines. Believing in playing its role in protecting the

environment, Gul Ahmed has also set up a waste water treatment plant to treat 100% of its effluent,

bringing it to NEQS levels.

Gul Ahmed is playing a vital role not only as a textile giant, but has its strong presence in the retail business

as well. The opening of its flagship store – Ideas by Gul Ahmed– marked the group’s entry into the retail

business. Starting from Karachi, Gul Ahmed now has an extensive chain of more than 40 retail stores

across the country, offering a diverse range of products from home accessories to fashion clothing. More

than 50 years since its inception, the name Gul Ahmed is still globally synonymous its quality, innovation

& reliability.

Subsidiary Companies

GTM USA Corporation (FZC) – (100% owned subsidiary of Gul Ahmed Textile Mills Ltd)

Gul Ahmed International Ltd. (FZC) – (100% owned subsidiary of Gul Ahmed Textile Mills Ltd)

GTM Europe Ltd (FZC) – (100% owned subsidiary of Gul Ahmed Textile Mills Ltd)

Business Activities

Excellence in quality and service is the hallmark of all operations performed at Gul Ahmed. Firmly standing by its business values, Gul Ahmed is active in manufacture and sale of textile products.

The manufacturing wing is an essential component in Gul Ahmed’s operations. The manufacturing cycle, which includes spinning, weaving, processing, designing and stitching, results in an end product that is tailored to the most stringent customer requirements.

On the retail front, Ideas by Gul Ahmed offers fabrics and made-ups, ranging from home accessories to clothing. It not only provides fashion at great value, but also caters to various customer needs by offering a diverse product mix. This leads to a complete and enjoyable retail experience. As a result of this, the chain has expanded to 40 stores across Pakistan since its inception in 2003.

Ratios Calculations:

Ratio Analysis

Net Working Capital

Explanation:

Positive NWC of a company express that a company invest its long term debts in the short term assets. So

that is why the capital of Al-Karam is positive in all five years. But if we analyze the net working capital of

Gul Ahmad its show that in second year which is 2012 they invest its short term debts in the fixed assets

so that is why in second year net working capital shows negative because they have less current assets

then the current liabilities, so we can say here they are in technically insolvent in the second year but next

they change their strategy and maintain more current assets then the current liabilities. “Net working

capital have positive correlation with profitability of textile industry.” (Working Capital Management and

Corporate Performance of Textile Sector in Pakistan, Muzaffar Asad, 2012).

1 2 3 4 5

Alkaram 125869 431438 480615 371067 216427

GulAhmad 422030 -97802 666101 890272 756447

125869

431438480615

371067

216427

422030

-97802

666101

890272

756447

-200000

0

200000

400000

600000

800000

1000000

NET WORKING CAPITAL

Current Ratio:

Explanation:

Current Ratio is an indicator of the capability of the firms to pay their current liabilities by converting

current assets. It also known as liquidity ratio. Generally more than one ratio is acceptable. The current

ratio of whole textile industry is less than one mean current ratio with textile industry in Pakistan is 1.50.

If we compare industrial average with both companies we can find Al-Karam is more capable to pay their

short term debts.

Al-karam Textile industry take the benefits of musharika and mudarbah financing from the banking

companies. Other one is they borrow the short term financing from the banks for the purpose of imports

of goods from other countries.

1 2 3 4 5

AlKaram 1.09 1.31 1.30 1.20 1.15

GulAhmad 1.03 0.99 1.05 1.06 1.05

1.09

1.31 1.301.20 1.15

1.03 0.991.05 1.06 1.05

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

CURRENT RATIO

Acid Test Ratio/Quick Ratio:

Explanation:

Acid test ratio is also called quick ratio which indicates that how more quickly we satisfy our short term

liabilities then current ratio. In current ratio there is an element of inventory which is not convertible in

to cash with least time so we eliminate it and get to know our liquidity without inventory. Usually 1.00 is

acceptable for the acid test ratio. Industrial Average Ratio of Acid Test Ratio is 0.62. By the analyzing the

graph we can examine that Al-Karam has a good acid test ratio than the Gul Ahmad. Gul Ahmad Textile

Industry has a least Acid Test Ratio because the volume of inventory of Gul Ahmad is high than the Al-

Karam Textile Industry.

Al-karam has a less portaionate of Inventory in their current assets. So that is why they have not so much

difference between the current ratio and acid test ratio rather than the Gul Ahmad Textile who have a

1 2 3 4 5

AlKaram 0.59 0.60 0.55 0.59 0.58

GulAhmad 0.20 0.24 0.27 0.21 0.25

0.59 0.60

0.55

0.59 0.58

0.20

0.24

0.27

0.21

0.25

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

Acid Test Ratio

hug amount of inventory in their current assets so that is why Gul Ahmad’s Acid test ratio become lower

than the Al-Karam acid test ratio.

Cash Ratio:

Explanation:

Cash Ratio is indicate that how much cash a company retain with itself to satisfy the current liabilities with

the cash. So that is why normal ratio which is acceptable for the creditors a cash ratio is 0.50. in the graph

we can see that in the first year Al-Karam has a least cash ratio then the Gul Ahmad but after that Al-

Karam has a greater cash ratio then the Gul Ahamd because from the start of our analysis we examine in

the balance sheets that Gul Ahmad not retain much cash with itself but Al-Karam retain more cash with

their selves to satisfy their creditors.

Gul Ahmad carry low amount of cash with itself they carry their huge part of investment in the form of

inventory, so that is why Gul Ahmad has a low Cash Ratio. But in the case of Al-Karam Textile in the first

two year they have a large amount of cash in their current assets but having less part in the other elements

of current assets. So in the FY 2011 & FY 2012 they have a high cash ratio but after that they carry less

cash in hand so their cash ratio drop to the 0.13 as compared to the FY 2012 Cash Ratio was 0.29.

1 2 3 4 5

AlKaram 0.29 0.15 0.09 0.17 0.13

GulAhmad 0.03 0.03 0.07 0.09 0.10

0.29

0.15

0.09

0.17

0.13

0.03 0.03

0.07

0.09 0.10

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

Cash Ratio

Debt Ratio:

Explanation:

Debt ratio is indication of percentage of assets financed by the creditors and its owners and it’s used to

determine how well they are protected in case of insolvency. If company fail to protect its creditor then

it may become impossible to borrow more money. Usually SECP required that 40% investment must be

contributed by the owner and he can borrow 60% of its total equity from the lenders. In debt ratio there

are all the assets short/long term.

1 2 3 4 5

AlKaram 1477533 1936192 1983843 2181270 1747443

GulAhmad 15691806 13246249 15760428 17617304 8558828

14775331936192 1983843 2181270

1747443

15691806

13246249

15760428

17617304

8558828

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

20000000

Debt Ratio

Debt/Equity Ratio:

Explanation:

The debt ratio indicates the firms long term debt paying ability total liabilities includes short term liabilities

reserves deferred tax liabilities non-controlling interest redeemable preferred stock and any non-current

liability it doesn’t include shareholder equity. Basically debt ratio indicates the percentage of assets

financed by the creditors and it helps to determine how well creditors are protected in case of insolvency.

If creditors are not well protected the company is not in a position to issue additional long term debt from

the perspective of long term debt paying ability the lower this ratio the better the company’s position.

The computation of the Debt/Equity Ratio is conservative because all the liabilities are included, and

shareholder equity is understated at the extent that assets have a value greater than the book value.

Similarly to the debt ratio, debt/equity ratio also indicates that the GulAhmad is enhancing its debt paying

ability by reducing its debt/equity ratio. And AlKaram debt/equity ratio moderately decreasing which

indicates the increment in the total debts of the company.

1 2 3 4 5

AlKaram 1.27 1.80 1.78 1.87 1.52

GulAhmad 3.33 2.96 2.90 2.65 1.19

1.27

1.80 1.781.87

1.52

3.33

2.96 2.90

2.65

1.19

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Debt/Equity Ratio

Debt/Tangible Net Worth:

Explanation:

The formula for debt to tangible net worth is total debt divided by tangible net worth. In general, a

lower ratio is better. A low ratio means the business has lots of tangible assets relative to the

amount of debt it holds. If the ratio is increasing, that means either the company is taking on more

debt and liabilities or is losing cash and assets. Creditors are hesitant to lend to a business with

a high ratio because that means they are less likely to recoup their loan value in the event of a

liquidation.

Debt/Tangible net worth is more conservative approach as compared to previous debt paying

ability determining approaches. In which intangible assets (goodwill, trademark, etc.) are also

excluded from the shareholder equity, to make sure the actual long term debt paying ability in

case of liquidation. Like the debt ratio and debt/equity ratio, debt/tangible net worth also shows

the same results that AlKaram’s debt to tangible net worth is increasing which indicates that its

long term debt paying ability decreasing moderately. On the other hand GulAhmad improving its

position of the debt paying ability by reducing its debt. Especially remarkable reduction in the debt

in the last year of the company.

1 2 3 4 5

AlKaram 1.27 1.80 1.78 1.87 1.52

GulAhmad 3.36 2.98 2.92 2.65 1.20

1.27

1.80 1.781.87

1.52

3.36

2.98 2.92

2.65

1.20

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

Debt/Tangible Networth

Net Profit Margin:

Explanation:

Net Profit Margin is an indication of utilization of revenue which is earned through generating the sales.

In this ratio companies examine that how much they bear cost to generate the sales and after that what

portion of their revenue save with them. In sales firstly we bear the cost of goods manufacture and sold

then there is other costs like administrative expenses and selling expenses which are also deductible from

the revenue of sales then taxation and interest paid is deducted and after all these activities we have net

income. And we check the portion that how much we now save.

Both companies Al-Karam & Gul Ahmad shows the same behavior in 2012 by abrupt decline in the profit

margin. But having the different causes, Al-Karam decline its profit margin due to the remarkable

increment in the cost of goods sold and operating expenses of the company. On the other hand Gul Ahmad

declined its profits margins due to the hug level of financing cost in the form of long term finance & short

term murabaha.

1 2 3 4 5

AlKaram 0.07 0.00422 0.01 0.01 -0.01

GulAhmad 0.05 -0.01 0.02 0.04 0.02

0.07

0.004220.01 0.01

-0.01

0.05

-0.01

0.02

0.04

0.02

-0.02

-0.01

0.00

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

Net Profit Margin

Return on Total Equity:

Explanation:

Return on total equity indicated that how much a company earn on the total invested amount by both

owner and the creditors. Its shows that is firm utilize its resources to maximize its profit.

Return on total equity shows return to both common and preferred stock holders as we discussed earlier

in the previous ratio that net income in the FY 2012 declined rapidly so there will be little earning available

for the both common stock and preferred stock. Even in the case of Gul Ahmad total net income declined

till the extent of loss.

1 2 3 4 5

AlKaram 0.25 0.02 0.04 0.04 -0.01

GulAhmad 0.25 -0.05 0.13 0.19 0.08

0.25

0.02

0.04 0.04

-0.01

0.25

-0.05

0.13

0.19

0.08

-0.10

-0.05

0.00

0.05

0.10

0.15

0.20

0.25

0.30

Retun on Total Equity

Assets Turnover Ratio:

Explanation:

It measure the activity of assets and ability of the firm to generate sales through use of the assets. Al

Karam showed stable assets turnover ratio without any huge differences among the different years. But

on the other side gul Ahmad shoed the abnormal behavior in FY 2013 due to huge increment in the net

sales of the company which caused by the addition of the newly assets or plant which come into

operations.

1 2 3 4 5

AlKaram 1.57 1.46 1.65 1.43 0.53

GulAhmad 1.25 1.41 13.80 1.36 2.12

1.57 1.46 1.65 1.43

0.531.25 1.41

13.80

1.36

2.12

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

Assets Turnover Ratio

Return on Assets:

Explanation:

It describe firm ability to utilize its assets to create profit by comparing profits with the assets that

generate the profit. By the dupont return on assets, rate of return on assets can be broken down into two

component ratios the total asset turnover and net profit margin which are described earlier. Both

companies ratio decline due to the remarkable decline in the net income of the FY12. But after coming in

operations of the plant of Gul Ahmad, it came with the huge change in its ratio.

1 2 3 4 5

AlKaram 0.11 0.01 0.01 0.01 -0.0035

GulAhmad 0.06 -0.01 0.32 0.05 0.04

0.11

0.010.01 0.01

-0.0035

0.06

-0.01

0.32

0.050.04

-0.05

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

Return on Assets

Operating Income Margin:

Explanation:

It is more conservative approach in nature. It includes only operating income while computing profit

margin. Due to the decline in the operating income of the both companies, both companies showing

decline in the FY12. But as installation of new asset or plant of the Gul Ahmad it come into higher operating

income margin for three years and then again decline due to the higher operating expenses.

In contrast of it Al Karam show decline in operating income margin for one more year and then in FY13

other operating expenses reduced due to which company attain a higher operating profit. Which causes

the higher operating income margin. And In the last year, higher sales and remarkable reduction in other

operating expenses causes the tremendous change in the operating income margin ratio.

1 2 3 4 5 6

AlKaram 0.11 0.06 0.04 0.05 0.18

GulAhmad 0.10 0.05 0.07 0.08 0.06

0.11

0.06

0.04

0.05

0.18

0.10

0.05

0.07

0.08

0.06

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

0.18

0.20

Operating Income Margin

Gross Profit Margin:

Explanation:

Gross profit is the difference between the net sales revenue and cost of goods sold. Comparing gross

profit with the net sales is said to be gross profit margin. Gul Ahmad has the more stable gross profit

margin trend and increasing with the moderate manner. On other side Al Karam is declining in the first

year then three year increasing trend. In the last year company came forward with the rapid increase in

gross profit due to the increase in sale.

1 2 3 4 5

AlKaram 0.14 0.05 0.06 0.07 0.24

GulAhmad 0.18 0.14 0.16 0.18 0.18

0.14

0.050.06

0.07

0.24

0.18

0.14

0.16

0.18 0.18

0.00

0.05

0.10

0.15

0.20

0.25

0.30

Gross Profit Margin

Return on Investment:

Explanation:

It is basically used to measure the income earned on the invested capital. ROI of both firms decreases on

the first year because of the decrease in net income.in the first year Al Karam cost of financing increased

due to the huge amount of long term finance. Which cause the low level of ROI. Gul Ahmad declined in

the first year because of low net income which caused by the higher operating expense. And then ROI of

both firms increased with the moderate pace for next three year.

1 2 3 4 5

AlKaram 0.23 0.05 0.08 0.10 0.05

GulAhmad 0.38 0.14 0.26 0.28 0.15

0.23

0.05

0.080.10

0.05

0.38

0.14

0.260.28

0.15

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

Return on Investment

Degree of financial Leverage:

Explanation:

The use of financing with a fixed charge (such as interest) is termed financial leverage. Financial leverage

is successful if the firm earns more on the borrowed funds than it pays to use them. It is not successful if

the firm earns less on the borrowed funds than it pays to use them. Using financial leverage results in a

fixed financing charge that can materially affect the earnings available to the common shareholders. Two

things are important in looking at financial leverage as part of financial analysis. First, how high is the

degree of financial leverage? This is a type of risk (or opportunity) measurement from the viewpoint of

the stockholder. The higher the degree of financial leverage, the greater the multiplication factor. Second,

does the financial leverage work for or against the owners? As shows in graph Gul-Ahmad enjoy more

degree of financial leverage as compared to ALKARAM.

1 2 3 4 5

AlKaram 1.03 -1.10 -0.13 -0.03 1.04

GulAhmad 2.53 8.91 1.87 2.61 0.95

1.03

-1.10

-0.13 -0.03

1.04

2.53

8.91

1.87

2.61

0.95

-2.00

0.00

2.00

4.00

6.00

8.00

10.00

Degree of Financial Leverage

Earnings per Share:

Explanation:

Earnings per share—the amount of income earned on a share of common stock during an accounting

period—applies only to common stock and to corporate income statements. Gul Ahmad have more

earning per share as compared to Alkaram. In 2012 due to market situation gulahmad face loss and

alkaram have heavy decline in profitability so that’s why in 2012

1 2 3 4 5

AlKaram 5.11 0.33 0.78 0.89 -0.18

GulAhmad 18.85 -1.89 4.61 6.75 2.65

5.11

0.33 0.78 0.89-0.18

18.85

-1.89

4.61

6.75

2.65

-5.00

0.00

5.00

10.00

15.00

20.00

Earning Per Share

Price/Earnings Ratio:

Explanation:

Price to earnings ratio expresses the relationship between the market price of a share of common stock

and that stock’s current earnings per share. Al-Karam have more price to earnings ratio as compared to

Gul Ahmad but graph shows that after 2011 Gul Ahmad have continuous upward trends that shows

betterment in term growth of company financial condition.

1 2 3 4 5

AlKaram 3.84 49.79 23.59 18.58 -97.40

GulAhmad 2.74 -11.15 5.15 9.48 18.53

3.84

49.79

23.5918.58

-97.40

2.74

-11.15

5.159.48

18.53

-120.00

-100.00

-80.00

-60.00

-40.00

-20.00

0.00

20.00

40.00

60.00

Price/Earning Ratio

Dividend Yield:

Explanation:

The dividend yield indicates the relationship between the dividends per common share and the market

price per common share. In 1as year 2011 Al-Karam have 0.10 dividend yield and then in 2014 dividend

yield is 0.06 on the other hand Gul Ahmad have zero dividend yield and then in consecutive 2year have

more than zero.

1 2 3 4 5

AlKaram 0.10 0.00 0.00 0.06 0.00

GulAhmad 0.00 0.00 0.00 0.02 0.03

0.10

0.00 0.00

0.06

0.000.00 0.00 0.00

0.020.03

0.00

0.02

0.04

0.06

0.08

0.10

0.12

Dividend Yield

Book Value per Share:

Explanation:

Book value per share indicates the amount of stockholders’ equity that relates to each share of

outstanding common stock.gulahmad have greater book valueper share as compared to alkaram.

1 2 3 4 5

AlKaram 20.82 19.15 19.94 20.82 20.50

GulAhmad 74.24 35.23 35.63 36.43 31.37

20.82 19.15 19.94 20.82 20.50

74.24

35.23 35.63 36.4331.37

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

Book Value Per Share

Trend Analysis:

Vertical Analysis (Profit & Loss Statement): Pakistan Synthetics Limited - Al-Karam Textile Mills ‘11

Explanation: Vertical analysis shows that which operation takes how much portion of you revenue earned through the sales of goods. In the above vertical analysis of Al-Karam textile mills for FY 2011 shows that a hug amount of revenue is allocated for cost of goods sold, around 85.88% of total revenue. Remaining part 14.12% is called gross profit by which 3.79% allocated to the Selling & Administrative expenses. Some part is contributed by the Other Income, 0.51% contributed by the Other Income. So 10.83% remaining part is called Operating profit. From which company paid finance cost which is 0.23% of the sales. And EBIT part which is actually a remaining part of revenue is now 10.61% and from that part company paid tax to the government and the regulatory authorities which is 3.71% of the sales and at the end 6.89% of the sales company save from its revenue as a Net Income. Which is distributed in two parts one is dividend if company is going to pay any dividend to their shareholders and remaining part after the dividend is going to be the part of the retained earnings. 85.88% portion of sales used by the cost of goods sold because of Inflation, Company received raw material and other things which are used to produce the final good are at the high cost and increasing rate of the labor wages caused to increase the cost of goods sold.

85.88%14.12%

3.79%

0.51%10.83%

0.23% 10.61%

3.71%6.89%

AlKaram Vertical Analysis '2011

CGS GP S&A Cost Other Income Operating Pro Finance Cost Pro Before Tax Tax Pro After Tax

Pakistan Synthetics Limited - Al-Karam Textile Mills ‘12

Explanation: Vertical analysis shows that which operation takes how much portion of your revenue, earned through the sales of goods. In the above vertical analysis of Al-Karam textile mills for FY 2012 shows that a hug amount of revenue is allocated for cost of goods sold, around 94.94% of total revenue. Remaining part 5.06% is called gross profit by which 2.50% allocated to the Selling & Administrative expenses. Some part is contributed by the Other Income, 0.45% contributed by the Other Income. So 3.01% remaining part is called Operating profit. From which company paid finance cost which is 2.09% of the sales. And EBIT part which is actually a remaining part of revenue is now 0.92% and from that part company paid tax to the government and the regulatory authorities which is 0.50% of the sales and at the end 0.42% of the sales company save from its revenue as a Net Income. Which is distributed in two parts one is dividend if company is going to pay any dividend to their shareholders and remaining part after the dividend is going to be the part of the retained earnings.

94.94%

5.06%

2.50%

0.45%

3.01%

2.09% 0.92%0.50%

0.42%




Explanation: Vertical analysis shows that which operation takes how much portion of you revenue earned through the sales of goods. In the above vertical analysis of Al-Karam textile mills for FY 2013 shows that a hug amount of revenue is allocated for cost of goods sold, around 93.93% of total revenue. Remaining part 6.07% is called gross profit by which 2.76% allocated to the Selling & Administrative expenses. Some part is contributed by the Other Income, 0.27% contributed by the Other Income. So 3.58% remaining part is called Operating profit. From which company paid finance cost which is 2.27% of the sales. And EBIT part which is actually a remaining part of revenue is now 1.31% and from that part company paid tax to the government and the regulatory authorities which is 0.45% of the sales and at the end 0.86% of the sales company save from its revenue as a Net Income. Which is distributed in two parts one is dividend if company is going to pay any dividend to their shareholders and remaining part after the dividend is going to be the part of the retained earnings.

93.93%

6.07%

2.76%

0.27%3.58%

2.27% 1.31% 0.45%0.86%




Explanation: Vertical analysis shows that which operation takes how much portion of you revenue earned through the sales of goods. In the above vertical analysis of Al-Karam textile mills for FY 2014 shows that a hug amount of revenue is allocated for cost of goods sold, around 92.70% of total revenue. Remaining part 7.30% is called gross profit by which 2.81% allocated to the Selling & Administrative expenses. Some part is contributed by the Other Income, 0.04% contributed by the Other Income. So 4.49% remaining part is called Operating profit. From which company paid finance cost which is 3.06% of the sales. And EBIT part which is actually a remaining part of revenue is now 1.47% and from that part company paid tax to the government and the regulatory authorities which is 0.43% of the sales and at the end 1.04% of the sales company save from its revenue as a Net Income. Which is distributed in two parts one is dividend if company is going to pay any dividend to their shareholders and remaining part after the dividend is going to be the part of the retained earnings.

92.70%

7.30%

2.81%0.04%

4.49% 3.06%

1.47% 0.43% 1.04%

Alkaram Vertical Analysis '14



Explanation: Vertical analysis shows that which operation takes how much portion of you revenue earned through the sales of goods. In the above vertical analysis of Al-Karam textile mills for FY 2015 shows that a normal amount of revenue is allocated for cost of goods sold, around 76.12% of total revenue. Remaining part 23.88% is called gross profit by which 4.59% allocated to the Selling & Administrative expenses. Some part is contributed by the Other Income, 1.48% contributed by the Other Income. So 17.81% remaining part is called Operating profit. From which company paid finance cost which is 8.08% of the sales. And EBIT part which is actually a remaining part of revenue is now 9.73% and from that part company paid tax to the government and the regulatory authorities which is 1.60% of the sales and at the end 11.33% of the sales company save from its revenue as a Net Income. Which is distributed in two parts one is dividend if company is going to pay any dividend to their shareholders and remaining part after the dividend is going to be the part of the retained earnings.

76.12%

23.88%

4.59%

1.48%

17.81%

8.08%

9.73%

1.60%11.33%



Gul Ahmad ‘11

Explanation: Vertical analysis shows that which operation takes how much portion of you revenue earned through the sales of goods. In the above vertical analysis of Gul Ahmad textile mills for FY 2011 shows that a normal amount of revenue is allocated for cost of goods sold, around 81.81% of total revenue. Remaining part 18.19% is called gross profit by which 7.93% of total revenue allocated to the Selling & Administrative expenses. Some part is contributed by the Other Income, 0.10% of total revenue contributed by the Other Income. So 10.36% of total revenue remaining part is called Operating profit. From which company paid finance cost which is 4.32% of the sales. And EBIT part which is actually a remaining part of revenue is now 6.04% of total revenue and from that part company paid tax to the government and the regulatory authorities which is 1.34% of the sales and at the end 4.70% of the sales company save from its revenue as a Net Income. Which is distributed in two parts one is dividend if company is going to pay any dividend to their shareholders and remaining part after the dividend is going to be the part of the retained earnings.

81.81%18.19%

7.93%

0.10%10.36%

4.32%

6.04%

1.34%4.70%

GulAhmad Vertical Analysis '11


Gul Ahmad ‘12

Explanation: Vertical analysis shows that which operation takes how much portion of you revenue earned through the sales of goods. In the above vertical analysis of Gul Ahmad textile mills for FY 2012 shows that amount of revenue is allocated for cost of goods sold, around 85.86% of total revenue. Remaining part 14.14% is called gross profit by which 8.74% of total revenue allocated to the Selling & Administrative expenses. Some part is contributed by the Other Income, 0.08% of total revenue contributed by the Other Income. So 5.48% of total revenue remaining part is called Operating profit. From which company paid finance cost which is 5.49% of the sales. And EBIT part which is actually a remaining part of revenue is now -0.01% of total revenue (Loss) and from that part company paid tax to the government and the regulatory authorities which is 0.95% of the sales and at the end -0.96% of the sales company bear from its revenue as a Net loss. Which is distributed in two parts one is dividend if company is going to pay any dividend to their shareholders and remaining part after the dividend is going to be the part of the retained earnings.

85.86%

14.14%

8.74%

0.08%5.48%

5.49%

-0.01%

0.95% -0.96%



Gul Ahmad ‘13

Explanation: Vertical analysis shows that which operation takes how much portion of you revenue earned through the sales of goods. In the above vertical analysis of Gul Ahmad textile mills for FY 2013 shows that an amount of revenue is allocated for cost of goods sold, around 84.44% of total revenue. Remaining part 15.56% is called gross profit by which 8.84% of total revenue allocated to the Selling & Administrative expenses. Some part is contributed by the Other Income, 0.13% of total revenue contributed by the Other Income. So 6.85% of total revenue remaining part is called Operating profit. From which company paid finance cost which is 4.06% of the sales. And EBIT part which is actually a remaining part of revenue is now 2.79% of total revenue and from that part company paid tax to the government and the regulatory authorities which is 0.46% of the sales and at the end 2.32% of the sales company save from its revenue as a Net Income. Which is distributed in two parts one is dividend if company is going to pay any dividend to their shareholders and remaining part after the dividend is going to be the part of the retained earnings.

84.44%

15.56%

8.84%

0.13% 6.85%

4.06%

2.79%

0.46%

2.32%



Gul Ahmad ‘14


81.90%18.10%

10.76%

0.71% 8.05%

3.52%4.53%

0.79% 3.74%



Gul Ahmad ‘15


81.73%18.27%

12.95%

1.03%

6.35%4.00%

2.35%0.53%

1.81%



Vertical Analysis (Liabilities, Balance Sheet): Al-Karam Textile ‘11

Explanation: Vertical analysis of balance sheet liabilities side is actually to allocate that which part of liability side has what portionate of total liability side. In the vertical analysis of the balance sheet’s liability side we have examined that shareholders equity is 21.19% of the total liabilities. Next item of the liability side is revenue reserves which is also known as the retained earnings is 11.06% of the total liabilities. As like unappropriated profit which is the part of the Net income but reserve for any purpose which is not specified have contributed 11.88%. Company also maintain the staff retirement benefit which will be provided to the customers after their complete of duration of the job tenure is 0.97%. Company have to paid some portion of tax which is liability on the company and they will pay it in the next year have a contribution of 3.37% of the total liabilities. Company in FY 2011 have not borrow any long term liability. So there is no contribution of long term financing to generate the total liability side. Trade and other payable are the liabilities which company have to pay to their creditors and other lenders against their services or products have a portion of 10.29% of the total liabilities. Short term liabilities are the major portion of the company by which they run their operations and meet their short term obligations. Short term liabilities have a portion of 41.16% of the total liabilities. But Markup, Tax Net, and current portion of long term liabilities which is matured is not available for the current year.

21.19%

11.06%

11.88%

0.97%

3.37%0.00%

10.29%

41.16%

0.09% 0.00%0.00%

Vertical Analysis Balance Sheet Al-Karam '11

Shareholder Equity

Revenue Reserve

Unappropriate Profit

Staff Retirement Benefit

Deffered Taxation

Long Term Finance

Trade & Other P/A

Short Term Borrowings

Accrued Markup

Tax Net

Current portion of long term finance

Al-Karam Textile ‘12

Explanation: Vertical analysis of balance sheet liabilities side is actually to allocate that which part of liability side has what portionate of total liability side. In the vertical analysis of the balance sheet’s liability side we have examined that shareholders equity is 18.62% of the total liabilities. Next item of the liability side is revenue reserves which is also known as the retained earnings is 9.72% of the total liabilities. As like unappropriated profit which is the part of the Net income but reserve for any purpose which is not specified have contributed 7.33%. Company also maintain the staff retirement benefit which will be provided to the customers after their complete of duration of the job tenure is 0.96%. Company have to paid some portion of tax which is liability on the company and they will pay it in the next year have a contribution of 3.69% of the total liabilities. Company in FY 2012 have borrow any long term liability. Long term financing have a portion of 13.50% of the total liabilities. Trade and other payable are the liabilities which company have to pay to their creditors and other lenders against their services or products have a portion of 18.40% of the total liabilities. Short term liabilities are the major portion of the company by which they run their operations and meet their short term obligations. Short term liabilities have a portion of 24.43% of the total liabilities. Accrued Markup have a 0.24% portionate to total liabilities. But Tax Net is not available in this year too. Current portion of long term liabilities which is matured is 3.12% for the current year of the total liabilities.

18.62%

9.72%

7.33%

0.96%3.69%

13.50%

18.40%

24.43%

0.24%

0.00%3.12%


Shareholder Equity

Revenue Reserve



Deffered Taxation

Long Term Finance

Trade & Other P/A


Accrued Markup

Tax Net



Explanation: Vertical analysis of balance sheet liabilities side is actually to allocate that which part of liability side has what contribute of total liability side. In the vertical analysis of the balance sheet’s liability side we have examined that shareholders equity is 18.07% of the total liabilities. Next item of the liability side is revenue reserves which is also known as the retained earnings is 9.43% of the total liabilities. As like unappropriated profit which is the part of the Net income but reserve for any purpose which is not specified have contributed 8.53%. Company also maintain the staff retirement benefit which will be provided to the customers after their complete of duration of the job tenure is 0.96%. Company have to paid some portion of tax which is liability on the company and they will pay it in the next year have a contribution of 2.86% of the total liabilities. Company have borrowed long term debts. Long term financing have a portion of 9.07% of the total liabilities. Trade and other payable are the liabilities which company have to pay to their creditors and other lenders against their services or products have a portion of 28.26% of the total liabilities. Short term liabilities are the major portion of the company by which they run their operations and meet their short term obligations. Short term liabilities have a portion of 18.23% of the total liabilities. Accrued Markup have a 0.56% contribute to total liabilities. But Tax Net is not available in this year too. Current portion of long term liabilities which is matured is 4.03% for the current year of the total liabilities.

18.07%

9.43%

8.53%

0.96%

2.86%9.07%

28.26%

18.23%

0.56% 0.00%

4.03%


Shareholder Equity

Revenue Reserve



Deffered Taxation

Long Term Finance

Trade & Other P/A


Accrued Markup

Tax Net




16.54%

8.63%

9.26%

1.06%

1.85%8.21%20.97%

28.80%

0.53% 0.00%

4.13%


Shareholder Equity

Revenue Reserve



Deffered Taxation

Long Term Finance

Trade & Other P/A


Accrued Markup

Tax Net




19.35%

10.10%

10.22%

0.47%

1.69%

9.22%

17.53%

25.29%

0.69%0.00%

5.46%


Shareholder Equity

Revenue Reserve



Deffered Taxation

Long Term Finance

Trade & Other P/A


Accrued Markup

Tax Net


Gul Ahmad Textile ‘11


3.11%

14.12%

5.87% 0.07%

1.39%

10.77%

12.68%

47.83%

1.06%

0.00%3.10%

Gul Ahmad Vertical Analysis Balance Sheet '11

Shareholder Equity

Revenue Reserve



Deffered Taxation

Long Term Finance

Trade & Other P/A


Accrued Markup

Tax Net

Current portion of LTL


Explanation: Vertical analysis of balance sheet liabilities side is actually to allocate that which part of liability side has what contribute of total liability side. In the vertical analysis of the balance sheet’s liability side we have examined that shareholders equity is 7.17% of the total liabilities. Next item of the liability side is revenue reserves which is also known as the retained earnings is 19.36% of the total liabilities. As like unappropriated profit which is the part of the Net income but reserve for any purpose which is not specified have contributed -1.28%. Company also maintain the staff retirement benefit which will be provided to the customers after their complete of duration of the job tenure is 0.13%. Company have to paid some portion of tax which is liability on the company and they will pay it in the next year have a contribution of 1.55% of the total liabilities. Company have borrowed long term debts. Long term financing have a portion of 11.83% of the total liabilities. Trade and other payable are the liabilities which company have to pay to their creditors and other lenders against their services or products have a portion of 15.25% of the total liabilities. Short term liabilities are the major portion of the company by which they run their operations and meet their short term obligations. Short term liabilities have a portion of 47.14% of the total liabilities. Accrued Markup have a 1.05% contribute to total liabilities. But Tax Net is 0.05% in this year. Current portion of long term liabilities which is matured is 3.75% for the current year of the total liabilities.

7.17%

19.36%

-1.28%

0.13%

1.55%

11.83%

15.25%

41.14%

1.05%0.05%

3.75%


Shareholder Equity

Revenue Reserve



Deffered Taxation

Long Term Finance

Trade & Other P/A


Accrued Markup

Tax Net



Explanation: Vertical analysis of balance sheet liabilities side is actually to allocate that which part of liability side has what contribute of total liability side. In the vertical analysis of the balance sheet’s liability side we have examined that shareholders equity is 7.19% of the total liabilities. Next item of the liability side is revenue reserves which is also known as the retained earnings is 15.01% of the total liabilities. As like unappropriated profit which is the part of the Net income but reserve for any purpose which is not specified have contributed 3.42%. Company also maintain the staff retirement benefit which will be provided to the customers after their complete of duration of the job tenure is 0.16%. Company have to paid some portion of tax which is liability on the company and they will pay it in the next year have a contribution of 1.49% of the total liabilities. Company have borrowed long term debts. Long term financing have a portion of 10.17% of the total liabilities. Trade and other payable are the liabilities which company have to pay to their creditors and other lenders against their services or products have a portion of 19.88% of the total liabilities. Short term liabilities are the major portion of the company by which they run their operations and meet their short term obligations. Short term liabilities have a portion of 39.13% of the total liabilities. Accrued Markup have a 0.91% contribute to total liabilities. But Tax Net is 0.00% in this year. Current portion of long term liabilities which is matured is 2.65% for the current year of the total liabilities.

7.19%

15.01%

3.42%

0.16%

1.49%

10.17%

19.88%

39.13%

0.91% 0.00%2.65%


Shareholder Equity

Revenue Reserve



Deffered Taxation

Long Term Finance

Trade & Other P/A


Accrued Markup

Tax Net




7.53%

14.75%

5.16%

0.16%

1.37%

9.22%

25.97%

32.25%

0.73% 0.00% 2.86%


Shareholder Equity

Revenue Reserve



Deffered Taxation

Long Term Finance

Trade & Other P/A


Accrued Markup

Tax Net




9.16%

16.96%

2.62%

0.18%

1.40%

9.65%

20.90%

35.43%

0.83% 0.00%2.86%


Shareholder Equity

Revenue Reserve



Deffered Taxation

Long Term Finance

Trade & Other P/A


Accrued Markup

Tax Net


Vertical Analysis (Assets, Balance Sheet): Al-Karam Textile ‘11

Explanation:

Vertical analysis of the assets side of the balance sheet is presenting that how much every element

contribute in the total assets.

In the above graph, graph shows that property, plant & equipment have a major portion in the total assets

which is near to 43.67% of total assets. Company lend money to the employees for long term span of time

which have a contribution around 0.01% of the total assets. Company have maintain some investment in

the banks for long term span of time which is around 0.03% of the total assets. Company have some

inventory in its store which is 5.84% of the total assets. Company have some stock in trade which is 19.90%

of the total assets. Company maintain its receivable in the assets side around 12.78% of the total assets.

Company lend money to the suppliers and its internal and external customers which is 0.14% of the total

assets. Company have other receivables around 0.14% of the total assets. At the end and last item of the

balance sheet of the company is cash and bank balances which have a contribution around 14.71% of the

total assets.

43.67%

0.01%

0.03%

5.84%

19.90%

12.78%

0.14%

0.00%

0.00% 0.00%

2.87%

0.06%14.71%

Vertical Analysis Al-Karam '11

Property, Plant & Equipenment

LTL to Employees

LT Deposits

Stores & Spares

Stock in Trade

Trade Debts

Loans & Advances

Short Term Payments

Advance against investment

Investment

Other Recieveables

Tax Net

Cash and Bank Balances


Explanation:










assets. Company have to receive some short term payment which is 0.17% of the total assets. Company

have other receivables around 1.61% of the total assets. At the end and last item of the balance sheet of

the company is cash and bank balances which have a contribution around 5.36% of the total assets.

39.42%

0.02%

0.03%

5.04%27.78%

19.21%

0.17%

0.05%

0.00%0.00%

1.61%

1.30%

5.36%



LTL to Employees

LT Deposits

Stores & Spares

Stock in Trade

Trade Debts

Loans & Advances

Short Term Payments


Investment

Other Recieveables

Tax Net



Explanation:










assets. Company have to receive some short term payment which is 0.05% of the total assets. Company

have other receivables around 0.47% of the total assets. At the end and last item of the balance sheet of

the company is cash and bank balances which have a contribution around 2.82% of the total assets.

33.38%

0.01%

0.03%6.64%

32.04%

22.86%

0.12%

0.05%0.00% 0.00%

0.47%1.57%

2.82%



LTL to Employees

LT Deposits

Stores & Spares

Stock in Trade

Trade Debts

Loans & Advances

Short Term Payments


Investment

Other Recieveables

Tax Net



Explanation:










assets. Company have to receive some short term payment which is 0.00% of the total assets. Advance

again investment have a contribution around 5.95% of the total assets. Company have other receivables

around 0.44% of the total assets. Company have to get back some taxation from the government which

is around 2.64% of the total Assets. At the end and last item of the balance sheet of the company is cash

and bank balances which have a contribution around 0.32% of the total assets.

33.77%

0.03%

0.03%

5.72%

27.99%

22.76%

0.35%

0.00%

5.95%

0.00%

0.44%

2.64%

0.32%



LTL to Employees

LT Deposits

Stores & Spares

Stock in Trade

Trade Debts

Loans & Advances

Short Term Payments


Investment

Other Recieveables

Tax Net



Explanation:










assets. Company have to receive some short term payment which is 0.00% of the total assets. Advance

again investment have a contribution around 0.18% of the total assets. Company have other receivables

around 0.02% of the total assets. Company have to get back some taxation from the government which

is around 5.93% of the total Assets. At the end and last item of the balance sheet of the company is cash

and bank balances which have a contribution around 0.11% of the total assets.

43.51%

0.03%

0.03%

6.52%

21.47%

21.88%

0.33%

0.00% 0.00%

0.18% 0.02%

5.93%

0.11%



LTL to Employees

LT Deposits

Stores & Spares

Stock in Trade

Trade Debts

Loans & Advances

Short Term Payments


Investment

Other Recieveables

Tax Net


Horizontal Analysis: Al-Karam ‘11

0.27 0.14

2.98

1.14

1.14

4.38

0.344.75

5.23

4.52

Al-Karam HA P&L '11

Net Sales CGS GP S&A Cost Other Income

Operating Pro Finance Cost Pro Before Tax Tax Pro After Tax

Al-Karam ‘12

0.34 0.33 0.51

0.50

1.01

0.58

12.07

-0.47-0.12

-0.64

Al-Karam HA P&L '12



Al-Karam ‘13

0.46 0.41

1.370.83

-0.80

1.56

19.76

-0.08 -0.17 -0.04

Al-Karam HA P&L '14



Al-Karam ‘15

-0.53 -0.63

1.50-0.04

1.32

2.29

16.73

0.96

0.002.38

Al-Karam HA P&L '15



Gul Ahmad ‘11

0.29

0.26

0.46

0.30

-0.01

0.59

0.161.17

0.48

1.51

Gul Ahmad HA P&L '11

Net Sales Cost of Goods Sold Gross Profit S&A Cost Other Income


Gul Ahmad ‘12

0.27

0.30 0.12

0.42

-0.16

-0.17

0.46

-1.00

0.04

-1.50




Gul Ahmad ‘13

0.53

0.54

0.48

0.730.54

0.25

0.30

0.19

-0.40

0.47




Gul Ahmad ‘14

0.680.64

0.88

1.30

8.38

0.61

0.231.11

0.13 1.59




Gul Ahmad ‘15

0.690.65

0.92

1.80

12.66

0.280.41

0.11 -0.230.27




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Analysis of Financial Statements -- Al karam & Gul Ahmad

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