This document presents a financial analysis of Gul Ahmed, a Pakistani textile company. Some key details: - Gul Ahmed was founded in 1953 and manufactures fabrics, apparel, home textiles, and yarn. It has over 8,000 employees. - Over the past 6 years, Gul Ahmed has significantly increased its net assets, property/equipment, sales, and profits. Shareholders' equity has doubled and net sales have grown 158%. - For the 2013 fiscal year ending June 30th, Gul Ahmed had over 2,160 shareholders and committed capital expenditures of Rs. 410 million.

1. Presented By
ABDUL NAVEED KHASKHELI
Dadabhoy
Institute of Higher Education
Program : MBA-Finance
Semester : Spring 2014
Subject : Financial Management
Project : Financial Analysis
Faculty : Sir Rehan Rao

3.  FOUNDER :: Haji Ali Mohammad
 HEAD- QUARTERS :: Karachi – Pakistan
 PRODUCT :: Fabrics , Bedding Yarn ,
Apparel , Accessories
 EMPLOYEES :: more than 8000
 DIVISIONS :: IDEA’S by GUL AHMED

4.  Incorporated in 1953 in Pakistan as a private limited
company,
 Converted into public limited company in 1955
 Listed on Karachi and Lahore Stock Exchanges in
1970 and 1971 respectively.

5.  DEALS IN MANUFACTURING OF ::
Fashion fabrics & apparel
Home textiles , Curtains & Beddings
Combed & carded yarn for knitting
 Leadership in national & international
market Through its Premium Quality,
Brand equity & Unshakeable
Customer Loyalty.

7.  GOVERNMENT
 EMPLOYEES
 CUSTOMERS
 SUPPLIERS
 COMMUNITY
 TRADE UNIONS
 OWNERS

8.  LITE Development and Management
Company
 Statutory body established under section 42
of the companies ordinance 1984, is a
public private partnership concern
responsible for development infra structure
in Landhi Industrial Area
 These all Companies Head unite to make
single MEMO & ARTICLE OF ASSOCIATION

9. Accounts for the year ended June 30,
2013

11. • On June 30, 2013 the Company has
2,160 shareholders.

12.  Gul Ahmed financial performance is assessed
mainly by improvement in the shareholders stake,
which is the result of profits earned by the
Company, market penetration in terms of sales
and liquidity. Key performance indicators (KPI’s)
which we monitor are:

14.  Net assets of the company have
increased by 21%. Trade debts have
increased by 24% mainly due to the
increase in sales. Fixed assets have
increased by 4.4% mostly due to the
addition of new machinery in our
production facilities

21.  Shareholders equity has almost doubled to Rs. 5,428 million as
compared Rs. 2,762 million in FY 2008.
 Property, plant and equipment have increased by Rs. 1,304 million
to Rs. 7,132 million over the six years period. Capacity
 has increased and latest state of the art machinery has been
inducted.
 Over the last six years, net sales grew by 158% from Rs. 11,726 million
in FY 2008 to Rs. 30,202 million in FY 2013. The
 growth has more than doubled in the last six years. Local Sales and
Export Sales have increased both in volume and price
 Finance cost as percentage of sales has gone down to 4.1% in
FY2013 from 6.3% in FY 2008.
 Profit after tax in FY 2013 has increased to Rs. 704 million as
compared to Rs. 103 million in FY 2008. Earnings per share
 now stand at Rs. 4.84 versus Rs. 0.93 in FY 2008.
 During the six year period Company has paid 22.5% cash dividend
and issued 100% bonus shares. In addition for the FY
 2013 20% bonus shares have been proposed, taking the total bonus
issue 120%.

25.  The Company is committed for capital expenditure
as at June 30, 2013 of Rs. 410 million (2012: Rs. 197
million).
 12.8 The Company is committed for non capital
expenditure items under letters of credits as at
June 30, 2013 of Rs. 579 million (2012: Rs. 374 million)
 12.9 The Company is committed for minimum rental
payments for each of following period as follows: