for account's discount

4.  The company is public listed and started production in 1993 and
persistently offering premium fabrics with unique colors, shades
and garments with extensive array of washes.
 Having head office and factory in Korangi Industrial Area,
Karachi.
Mr. Faisal Ahmed. has been the Chief
Executive Officer of Artistic Denim
science 1993.
At present, he is serving as a member
on the Board of Director. He received
education from Ohio Univerticity,
previously he worked in Fascom
Network Service LTD.
Ceo
About Company

5. • Auditor: M/S Ernst and
Ford Rhodes Sidat Hyder
Chartered accountants.
 Share Registrar: M/s
Technology Trade (Pvt.) Ltd
 Legal Adviser: Monawwer
Ghani Advocate

6. DUPONT
ANALYSIS

7.  DuPont Analysis also known as the DuPont identity, DuPont
equation, DuPont Model or the DuPont method.
 The Du Pont identity breaks down Return on Equity (that is,
the returns that investors receive from the firm) into three
distinct elements.
a) Profitability (Measured by Profit Margin)
b) Operating Efficiency (Measured by Asset
Turnover)
c) Financial Leverage (Measured by Equity
Multiplier)
DuPont Analysis

8. Return on Equity
Return on Equity = Net Profit Margine X Asset Turnover X Equity Multiplier
Return on Equity = Net Profit * Sales * Asset
Sales Asset Shareholders Equity
Return on Equity = Net Profit (or Profit after Tax)
Shareholders Equity

9. 2015 2014 2013 2012 2011
N.P
Margin
0.106 0.13 0.12 0.81 0.072
Asset
Turnover
0.92 0.85 1.02 0.92 0.81
Equity
Multiplier
1.39 1.42 1.47 1.79 1.99
ROE 0.13 0.2 0.18 0.13 0.12

11. Altman z-score
 Developed and enhanced in collaboration of professor Altman to:
• Made informed corporate leading decision.
• Manage account receivable more effectively.
• Select corporate equity and debt securities.
• Identify and manage corporate defaults and turnarounds.

12. The Z-score formula for predicting bankruptcy
was published in 1968 by Edward I. Altman, who was, at the time,
an Assistant Professor of Finance at New York University.
The Z-Score Test lets you use statistical techniques to predict
the likelihood of bankruptcy within the next two years.
Altman's test was developed using 66 companies, The test
achieved an accuracy rate of 95%.
The financial ratios come directly from a company's financial
statements.
Bankruptcy

13. Z-score Bankruptcy
model:
Z = 1.2T1 + 1.4T2 + 3.3T3 + 0.6T4 + .999T5
Where
T1 = (Current Assets − Current Liabilities) / Total Assets
T2 = Retained Earnings / Total Assets
T3 = Earnings Before Interest and Taxes / Total Assets
T4 = Equity / Total Liabilities
T5 = Sales/ Total Assets

14. Altman Guidelines

15. T1 = (Current Assets − Current Liabilities) / Total Assets
Year Calculations Percentage
2015 (2883781-1887718) / 7586987 13%
2014 (3260042-3695349) / 7623904 5%
2013 (2455205-1701194) / 5976468 24%
2012 (2477008-2144539) / 5912234 5%
2011 (2769251-2743575) / 6041132 5%
15
*All values in ‘000

16. T2 = Retained Earnings / Total Assets
Year Calculations Percentage
2015 4617000 / 7586987 6%
2014 3963000/ 7623904 5%
2013 4061000 / 5976468 6%
2012 3387000/ 5912234 5%
2011 3031000/6041132 5%
16
*All values in ‘000

17. T4 = Equity / Total Liabilities
Year Calculations Percentage
2015 5456653/ 2130334 2.5
2014 4802782/ 2821122 1.7
2013 4060715 / 1915753 2.1
2012 3387383 / 2524851 1.3
2011 3031237 / 3009895 1.0
17
*All values in ‘000

18. T5 = Sales/ Total Assets
Year Calculations Percentage
2015 6998644/7586987 0.92
2014 6467591/7623904 0.84
2013 6136793 / 5976468 1.03
2012 5451844/ 5912234 0.92
2011 4869120/6041132 0.81
18
*All values in ‘000

19. Z = 1.2T1 + 1.4T2 + 3.3T3 + 0.6T4 + .999T5
2015
1.2(0.13) + 1.4(0.608) + 3.3(0.114) + 0.6(2.56) + 0.999(0.922) 3.5
2014 1.2(0.05) + 1.4(0.52) + 3.3(0.12) + 0.6(1.702) + 0.999(0.84) 3.05
2013 1.2(0.2) + 1.4(0.06) + 3.3(0.15) + 0.6(2.1) + 0.999(1.03) 3.1
2012 1.2(0.05) + 1.4(0.05) + 3.3(0.11) + 0.6(1.3) + 0.999(0.92) 2.1
2011 1.2(0.05) + 1.4(0.05) + 3.3(0.09) + 0.6(1.0) + 0.999(0.81) 1.8

20. INDEX NUMBE
trend
ANALYSIS

21. Index number trend:
 “Index numbers are quantitative measure of growth of
prices, production, inventory and other quantities of
economic interest.”
 It consists in expressing the aggregate price of all the
commodities of the current year as a percentage of the
aggregate price in the base year.

22. ρ01 =
𝒑𝟏
𝒑𝟎
× 𝟏𝟎𝟎
Where,
P01 = index number of the current year.
P1 = total of the current year price.
P0 = total of the base year price.
Index number trend analysis :

23. Index number for 2015
ρ01 =
𝒑𝟏
𝒑𝟎
× 𝟏𝟎𝟎 =
𝟕𝟓𝟖𝟔𝟗𝟖𝟕
𝟔𝟎𝟒𝟏𝟏𝟑𝟐
× 𝟏𝟎𝟎 = 125.58
Its mean the index number in 2015 is 25.58% high than the base year.
Index number for 2014
ρ01 =
𝒑𝟏
𝒑𝟎
× 𝟏𝟎𝟎 =
𝟕𝟔𝟐𝟑𝟗𝟎𝟒
𝟔𝟎𝟒𝟏𝟏𝟑𝟐
× 𝟏𝟎𝟎 = 126.19
Its mean the index number in 2014 is 26.19% higher than the base year.
Index number for 2013
ρ01 =
𝒑𝟏
𝒑𝟎
× 𝟏𝟎𝟎 =
𝟓𝟗𝟕𝟔𝟒𝟔𝟖
𝟔𝟎𝟒𝟏𝟏𝟑𝟐
× 𝟏𝟎𝟎 = 98.92
Its mean the index number in 2014 is 1.07% higher than the base year.
Index number for 2012
ρ01 =
𝒑𝟏
𝒑𝟎
× 𝟏𝟎𝟎 =
𝟓𝟗𝟏𝟐𝟐𝟑𝟒
𝟔𝟎𝟒𝟏𝟏𝟑𝟐
× 𝟏𝟎𝟎= 97.86
Its mean the index number in 2014 is 2.13% higherthan the base year.
Index number for 2011
ρ01 =
𝒑𝟏
𝒑𝟎
× 𝟏𝟎𝟎 =
𝟔𝟎𝟒𝟏𝟏𝟑𝟐
𝟔𝟎𝟒𝟏𝟏𝟑𝟐
× 𝟏𝟎𝟎 = 1
BALANCE SHEET ANALYSIS
*All values in ‘000

24. Index number for 2015
ρ01 =
𝑝1
𝑝0
× 100 =
743546
𝟑𝟓𝟏𝟒𝟒𝟒
× 100 = 211.58
Its mean the index number in 2015 is 111.58% lower than the previous year.
Index number for 2014
ρ01 =
𝑝1
𝑝0
× 100 =
852497
𝟑𝟓𝟏𝟒𝟒𝟒
× 100 = 242.56
Its mean the index number in 2014 is 142.56% higher than the previous year.
Index number for 2013
ρ01 =
𝑝1
𝑝0
× 100 =
𝟕𝟒𝟕𝟒𝟒𝟎
𝟑𝟓𝟏𝟒𝟒𝟒
× 100 = 212.67
Its mean the index number in 2014 is 112.67% higher than the previous year.
Index number for 2012
ρ01 =
𝑝1
𝑝0
× 100 =
𝟒𝟒𝟎𝟎𝟗𝟐
𝟑𝟓𝟏𝟒𝟒𝟒
× 100 = 125.22
Its mean the index number in 2014 is 25.22% higher than the previous year.
Index number for 2011
ρ01 =
𝑝1
𝑝0
× 100 =
𝟑𝟓𝟏𝟒𝟒𝟒
𝟑𝟓𝟏𝟒𝟒𝟒
× 100 = 1
PROFIT AND LOSS ACCOUNT
*All values in ‘000

25. CASH FLOW STATEMENT
Index number for 2015
ρ01 =
𝑝1
𝑝0
× 100 =
9798
𝟏𝟎𝟒𝟏𝟔𝟏
× 100 = 19.00
Its mean the index number in 2015 is 80.99% lower than the previous year.
Index number for 2014
ρ01 =
𝑝1
𝑝0
× 100 =
170664
𝟏𝟎𝟒𝟏𝟔𝟏
× 100 = 163.86
Its mean the index number in 2014 is 63.86% higher than the previous
year.
Index number for 2013
ρ01 =
𝑝1
𝑝0
× 100 =
𝟏𝟖𝟏𝟓𝟏
𝟏𝟎𝟒𝟏𝟔𝟏
× 100 = 17.42
Its mean the index number in 2014 is 82.57% lower than the previous year.
Index number for 2012
ρ01 =
𝑝1
𝑝0
× 100 =
𝟓𝟐𝟒𝟔𝟏
𝟏𝟎𝟒𝟏𝟔𝟏
× 100 = 50.36
Its mean the index number in 2014 is 49.63% lower than the previous year.
Index number for 2011
ρ01 =
𝑝1
𝑝0
× 100 =
𝟏𝟎𝟒𝟏𝟔𝟏
𝟏𝟎𝟒𝟏𝟔𝟏
× 100=1
*All values in ‘000

26. COMMON SIZE
ANALYSIS

27.  A company financial statement that displays all
items as percentages of a common base figure.
 This type of financial statement allows for easy
analysis between companies or between time
periods of a company
Common size

28. BALANCE SHEET
2015 2014 2013 2012 2011
Assets
Non current 61.11 57.24 58.81 58.01 54.07
Current 38.89 42.76 41.08 41.89 45.83
100 100 100 100 100
Equity and
liabilities
Share capital
and reserves
71.48 63 67.94 67.29 50.17
Non current
liabilities
3.49 1.64 3.59 3.59 4.40
Current
liabilities
24.79 35.36 28.46 28.46 45.41
100 100 100 100 100
*All values in percentages

29. COMMON SIZE ANALYSIS OF
PROFIT AND LOSS ACCOUNT
*All values in ‘000

30. Cont.…
2013 2012 2011
Gross profit 1.511 1.85 2.11
Operating profit 1.236 1.50 1.66
Profit before taxation 1.03 1.12 1.12
Net profit for the year 3.77 4.47 4.89
*All values in percentages