Lucky Cement

LUCKY CEMENT LTD.

Analysis of Financial Statement

1

LUCKY CEMENT LTD.

Lucky Cement Limited has been sponsored by Yunu which is one of the largest business groups of the Co grown up remarkably over the last 50 years. The YB manufacturing activities including Textile, Spi Finishing, Stitching and Power Generation. The G industrial establishments other then Lucky Cement Li 1. 2. 3. 4. 5. Lucky Textile Mills Fazal Textile Mills Limited Gadoon Textile Mills Limited Lucky Energy (Private) Limited Yunus Textile Mills

Lucky Textile Mills - established in 1983

Fully computerized weaving and stitching unit Consists of 3 weaving plants comprising of 800 lo 3.4 million meter/month Grey fabric capacity, 83 processing and 15 million meters/ annum made up Power generation capacity 6.20 MW Expertise in ready-made curtains and accessories Fazal Textile Mills Limited - established in 1987

One of the top spinning mill in the country wi Produces 100% Grey Cotton Ring Spun Yarn and Heather Yarns? ISO 9001:2000 certified

Gadoon Textile Mills Limited - established in 1988

First of the only two mills in the world producing Co 194,392 installed spindles. Produces high quality Com Spinning yarn, Core Spun yarn and 100% Grey Cotto Also has a power plant of 34 MW OKO Tex Standard 100 certified

Lucky Energy (PVT) Limited - established in 1993

- Captive power unit - Supplies uninterruptible power to Lucky Textiles, F - Textiles & Lucky Knitwear - Generation capacity of 17.4 MW Yunus Textile Mills Limited - established in 1998

- State of the art machinery for weaving, printing and - Self power generation capacity of 14 MW - 250 Air Jet looms installed - Completely vertically integrated textile mill Analysis of Financial Statement 2 - Major Player in home textile and garment exports

LUCKY CEMENT LTD.


3

LUCKY CEMENT LTD.

A BRIEF PROFILE OF MR. ABD LATE CHAIRMAN OF YUNUS BROTHERS GR

Dynamism, loyalty and a vision to make our cou nations of the world by bringing in more and more i transfers these were some of the many goals set Executive Mr. A. Razzak Tabba.

Yunus Brothers Group is one of the largest export ho up remarkably over the last 50 years. The YB Group manufacturing activities consisting of Spinning, Wea Stitching. The Group also owns one of the largest c the second largest yarn manufacturing capacit manufacturing, the Group is also engaged in Int commodities.

The Group consists of the following Companies, w Rs. 27 Billion or US$ 450 Million during year 20 amounted to US$ 300 Million. 1. 2. 3. 4. 5. 6. 7. 8. Lucky Cement Limited Gadoon Textile Mills Limited Fazal Textile Mills Limited Yunus Textile Mills Lucky Energy (Private) Limited M/s. Yunus Brothers Lucky Textile Mills Security Electric Power Company Limited

Mr. Abdul Razzak Tabba was the Chairman of YB G SITARA-I-IMTIAZ on 23rd March, 2005 for Public Under the leadership of Mr. Abdul Razzak Tabba, the 20 Exports Trophies from the Government of Pa exports from the Country as well as the highest expo pertinent to point out that during the financial yea owned by the Group i.e. Yunus Textile Mills, Lucky Mills and Fazal Textile Mills have in total exported Rs. 18 Billion.

Unfortunately, the group lost its dynamic and great A. Razzak Tabba suffered a heart stroke on 19th May

Mr. A. Razzak Tabba was a Director of National B involved in policy making of the bank. In addition to of the board of governors of the Institute of Busines also a member of academic syndicate of Dow Me member of advisory committee of Citizen Police L Saark Health Foundation, ice chairman Kidney Fo Memon Foundation Community Centre where techn Analysis of Financial Statement 4 more than 2300 girls every year.

Being very conscious of social responsibility of co

large, which is engaged in a number of social welf poor and needy people. The major social welfare Tabba foundation are Aziz Tabba Dialysis Centre LUCKY CEMENT LTD. The Aziz Tabba Kidney Centre in Karachi havin machines serving more than 200 patients every day a 240 patients. The Tabba Heart Institute inaugurate Shaukat Aziz on 8th March, 2005 is a most modern s institute, equipped with latest state of art equipment post surgery procedures.

Mr. A. Razzak Tabba (S.I) The late Chairman & Chief Executive of Lucky Cement


5

LUCKY CEMENT LTD.

At Lucky Cement we comprehend our core values to be the most significant factor leading to the existence and growth of this prestigious organization. How we accomplish our mission is as vital as the mission itself. Thus these values are not only on paper and pen but lounge deep in the heart of each individual working or associated with lucky cement. These values are reflected within the name of LUCKY itself: They are as follows. L = LEADERSHIP - We don't just innovate industry practices - we are defining the way business will be done in the future. We are pioneers. U = UNDERSTANDING - Whereby we understand the demands of cement industry at a global level, parallel to the needs of people, associated with us in one way or the other. C = COMMITMENT - One word that sums it all at Lucky Cement is the commitment of people to quality, relationship and most importantly our customers, who can never be disappointed at any cost. K = KONSTANT - The most important element to balance any equation worldwide, at Lucky Cement we assign the value of Constant with consistency of profits, as profits are required to sustain and grow any organization. They are in-turn the ultimate measure of efficiency. Y = YOU - This attitude is a built-in character. At lucky cement we always maintain, You first, Me last approach, not only to please but to delight our employees, shareholders, customers, and all the other people who expect a result from Lucky Cement.


6

LUCKY CEMENT LTD.

To be the leading exporter of cement from Pakistan for the regional countries as well as to explore other potential export markets. Our future strategy is to explore investment possibilities outside Pakistan in the cement industry to become a leading global producer. Exploring and Establishing Export Markets We have a firm commitment in exploring new markets for sustainable business growth. Lucky Cement has been successful in establishing its brand in several export markets including Middle East, India, Sri Lanka and East and South African countries. We are also planning to setup some offshore facilities to further strengthen our export business on regular basis

Product:Lucky Cement aims at producing cement to suit every user. The following types of cement are available: 1. 2. 3. Ordinary Portland Cement Sulphate Resistant Cement Slag Cement

ORDINARY PORTLAND CEMENT (OPC)


7

LUCKY CEMENT LTD.

Ordinary Portland cement is available in darker shade as well as in light shades in Lucky Star with different brand names to suit the requirement of users. It is used in all general constructions especially in major prestigious projects where cement is to meet stringent quality requirements; it can be used in concrete mortars and grouts etc. Ordinary Portland cement is compatible/consumable with admixture/ retarders etc. SULPHATE RESISTANT CEMENT (SRC) Sulphate resistant Cements best quality is to provide effective and long lasting strength against sulphate attacks and is very suitable for constructions near sea shores as well as for canals linings. It provides very effective protection against alkali attacks. SLAG CEMENT Slag cement is also available for specific user requirements. Slag cement, has been incorporated into concrete projects for over a century to improve durability and reduce life cycle costs. Among its measurable benefits in concrete are better workability and finish ability, higher compressive and flexural strengths, and improved resistance to aggressive chemicals.BRANDS AVAILABLE AT LUCKY CEMENT

Lucky CEMENT (REGULAR)

Lucky STAR

Lucky GOLD

Lucky SULPHATE RESISTANT CEMENT (SRC)


8

LUCKY CEMENT LTD.

Here is the income statement and balance sheet in below boxes. It shows the company sales, gross profit and net profit. If we see that the sales are increasing with the passage of time but the cost is same so it decreases the profit margin. The company share capital is same for 6 year so it means that the company is not issuing the more capital.

Income StatementAmount in'000' turnover cost of sales gross profit distribution cost administrative cost operating profit finance cost other income / charges profit before taxation taxation profit after taxation 2004 29078 07 18073 53 11004 54 19599 46751 10341 04 10842 52161 97110 1 28533 9 68576 2 2005 39801 09 26005 89 13795 20 23817 61355 12943 48 21691 62706 12099 51 38336 4 82658 7 2006 80541 01 50737 97 29803 04 10348 9 10674 0 27700 75 82809 13429 0 25529 76 61702 6 19359 50 2007 125218 61 884670 8 36751 53 497729 111311 30661 13 862847 487085 26903 51 143059 25472 92 2008 169578 79 126007 06 43571 73 115505 4 125752 30763 67 126743 643095 23065 29 371141 26776 70 2009 263304 05 165191 38 98112 67 242783 7 165936 72174 94 123697 1 803521 51770 02 580453 45965 49

Balance Sheet


9

LUCKY CEMENT LTD. Amount in'000' Share Capital & Reserve Non Current Liabilities Current Liabilities Total Equity & Liabilities 2004 43070 96 17743 46 93086 2 70123 04 2005 513368 3 753039 0 214276 3 148068 36 2006 706963 3 118011 09 475203 5 236227 77 2007 935355 0 100242 47 635242 9 257302 26 2008 186554 23 789675 4 768689 7 342390 74 2009 232519 72 604171 2 909867 8 383923 62

Non Current Assets Current Assets Total Assets

50342 32 19780 92 70123 24

134643 25 134251 1 148068 36

191672 83 445549 4 236227 77

203210 83 540914 3 257302 26

258835 50 835552 4 342390 74

305344 20 785794 2 383923 62

Vertical Analysis Income StatementVertical Analysis % turnover cost of sales gross profit distribution cost administrative cost operating profit finance cost other income / charges profit before taxation taxation profit after taxation 2004 100.0 0 62.16 37.84 0.67 1.61 35.56 0.37 0.04 33.40 9.81 23.56 2005 100.0 0 65.34 34.66 0.60 1.54 32.52 0.54 0.02 30.40 9.63 20.77 2006 100.0 0 63.00 37.00 1.28 1.33 34.39 1.03 0.02 31.70 7.66 24.04 2007 100.0 0 70.65 29.35 3.97 0.89 24.49 6.89 -0.04 21.49 1.14 20.34 2008 100.0 0 74.31 25.69 6.81 0.74 18.14 0.75 0.04 13.60 -2.19 15.79 2009 100.0 0 62.74 37.26 9.22 0.63 27.41 4.70 0.03 19.66 2.20 17.46


10

LUCKY CEMENT LTD.

If we see the vertical analysis of the Income statement it shows that the company performance is decreasing. The issue in decline in the profits of the company is that is world recession, electricity problems, democracy, and increase in the cost due to the increase in the raw material prices.

Balance SheetShare Capital & Reserve Non Current Liabilities Current Liabilities Total Equity & Liabilities 61.42 25.30 13.27 100.0 0 34.67 50.86 14.47 100.0 0 29.93 49.96 20.12 100.0 0 36.35 38.96 24.69 100.0 0 54.49 23.06 22.45 100.0 0 60.56 15.74 23.70 100.00


71.79 28.21 100.0 0

90.93 9.07 100.0 0

81.14 18.86 100.0 0

78.98 21.02 100.0 0

75.60 24.40 100.0 0

79.53 20.47 100.00

In the analysis of the Balance sheet we see that the current assets are increasing with the passage of time and there is a heavy amounts of the current assets which shows the negative image. As the more current assets shows the more liquidity but in this case its more access.

Horizontal Analysis Income StatementIn %age turnover cost of sales gross profit distribution cost administrative cost operating profit 2004 100 100 100 100 100 100 2005 36.88 43.69 25.36 21.52 31.24 25.17 2006 176.9 8 180.7 3 170.8 2 428.0 3 128.3 2 167.8 2007 330.6 3 389.4 8 233.9 7 2439. 56 138.0 9 196.5 2008 483.1 8 597.1 9 295.9 4 5793. 43 168.9 8 197.4 2009 805.51 814 791.57 12287. 55 254.94 597.95


11

LUCKY CEMENT LTD. 7 663.7 8 157.4 5 162.9 116.2 4 182.3 1 9 7858. 37 1033. 81 177.0 4 -49.86 271.4 6 1069 1132. 9 137.5 2 230.0 7 290.4 7 11309. 07 1440.4 6 433.11 103.43 570.28

finance cost other income / charges profit before taxation taxation profit after taxation

100 100 100 100 100

100.0 6 20.22 24.6 34.35 20.54

Horizontal analysis (2) year vs year % turnover cost of sales gross profit distribution cost administrative cost operating profit finance cost

05 vs 2004 04 100 100 100 100 100 100 100 35.88 43.89 25.36 21.52 31.24 25.17 100.0 6

06 vs 07 vs 08 vs 09 vs 05 06 07 08 102.3 6 55.47 35.43 55.27 95.1 74.36 42.37 31.1 116.0 4 23.31 18.71 125.18 334.5 380.9 132.0 2 5 6 110.19 73.97 4.28 17.96 31.95 114.0 1 10.69 0.33 134.61 281.7 941.9 7 7 -85.31 875.97

Now if we see the horizontal analysis of the income statement shows that the according to the base year 2005 the sales are improving with the passage of time. Due to the increase in the cost of goods in 2009 the gross profit decline. And it shows that the cost of raw material has been increased day by day.


12

LUCKY CEMENT LTD.

Balance SheetIn % age Share Capital & Reserve Non Current Liabilities Current Liabilities Total Equity & Liabilities 2004 100.0 0 100.0 0 100.0 0 100.0 0 2005 19.19 324.4 0 130.1 9 111.1 6 2006 64.14 565.1 0 410.5 0 236.8 8 2007 117.1 7 464.9 5 582.4 2 266.9 3 2008 333.1 3 345.0 5 725.7 8 388.2 7 2009 439.85 240.50 877.45 447.50


100.0 0 100.0 0 100.0 0

167.4 6 -32.13 111.1 5

280.7 4 125.2 4 236.8 8

303.6 6 173.4 5 266.9 3

414.1 5 322.4 0 388.2 7

506.54 297.25 447.50

horizontal analysis(2) year vs year % Share Capital & Reserve Non Current Liabilities Current Liabilities Total Equity & Liabilities

05 vs 06vs 07 vs 08 vs 09 vs 2004 04 05 06 07 08 100.0 0 19.19 37.71 32.31 99.45 24.64 100.0 324.4 0 0 56.71 -15.06 -21.22 -23.49 100.0 130.1 121.7 0 9 7 33.68 21.01 18.37 100.0 111.1 0 6 59.54 8.92 33.07 12.13


100.0 0 100.0 0 100.0 0

167.4 6 -32.13 111.1 5

42.36 231.8 8 59.54

6.02 21.40 8.92

27.37 54.47 33.07

17.97 -5.96 12.13

The balance sheet shows that the assets are increasing with the time and if we see fixed assets are increased but in 2009 the assets decrease. But it also increases in the cash and bank. The share capital is same in the 5 year the long term liabilities are increased with increasing ratio but in 2009 it also decreases.


13

LUCKY CEMENT LTD.

Ratio AnalysisDescription Profitability Ratio % Gross profit to sales EBITDA to sales Net profit after tax to sales ROE after tax Return on capital employed Percent Percent Percent Percent Percent 2004 2005 2006 2007 2008 2009

37.84 42.97 23.58 15.92 11.28

34.66 38.5 20.77 16.1 6.53

37 39.58 24.04 27.38 10.26

29.35 31.54 20.34 27.23 13.15

25.73 23.57 15.79 14.35 10.08

37.26 31.51 17.46 19.77 15.69

Solvency/ Debt Ratio Debt Equity ratio Interest coverage ratio Operating/ Activity Ratios Inventory turnover No. of days in inventory Creditor Turn over No. of days in payables Operating cycle Total assets turnover Fixed assets turnover Times Days Times Days Days Percent Percent 12.58 29.01 5.96 61.22 -32.21 41.47 57.76 18.06 20.21 5.37 67.92 -47.71 26.88 29.56 18.54 19.69 4.91 74.3 -54.61 34.09 42.02 15.97 22.86 5.9 61.84 -38.99 48.67 61.62 18.18 20.08 4.95 73.81 -53.73 49.53 65.52 17.33 21.06 5.31 68.79 -47.73 68.58 86.23 times times 0.63 95.38 1.88 59.67 2.34 33.45 1.75 3.55 0.84 24.27 0.65 5.83


14

LUCKY CEMENT LTD. Liquidity Ratios Current ratios Percent Quick/ Acid test ratio Percent Investment valuation Ratios EPS ratio (after tax) Rs. P/E ratio (after tax) Rs. Cash dividend per share Rs. Dividend Yield Percent Dividend Payout ratio Percent Dividend Cover Ratio Times Market Value Per Share Rs. Rs. In EBITDA Million 2.12 1.94 2.8 13.97 _ _ _ _ 39.1 1249 _ _ _ _ 42.39 1532 0.63 0.57 3.14 13.51 0.94 0.85 7.35 13.66 1 1 13.61 7.35 100.4 2 3188 0.85 0.75 9.67 12.72 1.25 1.02 12.93 7.74 123.0 4 3949 _ _ _ _ 97.93 4055 1.09 1 9.84 9.96 0.86 0.73 14.21 4.12 4 6.83 28.15 3.55 58.53 8366

The ratios are calculated as above shows the company performance. We can explain them with the help of graph.

Profitability Ratio

The gross profit decrease with the time docline and lowest in 2008 shows that the profit decrese. And the profit is increase in the 2009 year.


15

LUCKY CEMENT LTD.

Debt ratios

As you see in 2007 total debt is highest and the interest coverage ratio times is high in whole ratios.

Operating Cycle and Inventory Ratios

As you see no. of days in payable increse the limit of 50. Operating cycle shows in negative. Which shows the company performace good. And the no of days inventory payable is at the zero point which mean that the company is unsing the just in time inventory system.


16

LUCKY CEMENT LTD.

Assets Management Ratios

As you see fixed assets turnover decrease in 2005 which mean that the company current asset turnover is high and the company is more liquide. And in the 2009 fixed asset turnover is highest.

As you see inventory turnover is gratually more than 10 days and creditor turnover times is less than 5 days in whole year.

Current and Quick Ratios


17

LUCKY CEMENT LTD.

As you see the current ratios decrease in 2004 due to the low current assets and high inventory level. We ca see the it increase in 2008 but decrease in 2009.


18

Date post:	18-Nov-2014
Category:	Documents
Upload:	usman
View:	795 times
Download:	3 times

Lucky Cement

Documents