This document contains ratio analyses for the years 2015 and 2014. Ratio analyses are used to evaluate a firm's financial performance in key areas like short-term solvency, debt management, asset management, profitability, and market value. The document provides calculations for liquidity ratios, debt ratios, profitability ratios, and marketability ratios for both years. These ratios indicate the company's ability to meet short-term obligations, use of debt financing, operating efficiency, and stock valuation.

1. Ratio Analysis is a form of Financial Statement Analysis that is used to obtain a quick indication
of a firm's financial performance in several key areas. The ratios are categorized as Short-term
Solvency Ratios, Debt Management Ratios, Asset Management Ratios, Profitability Ratios, and
Market Value Ratios.
BALANCE SHEET
Rupees in thousands 2015 2014
EQUITYAND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorized capital 6,000,000 6,000,000
Issued, subscribed and paid up 4,431,029 4,431,029
Capital reserve 1,293,858 1,293,858
Accumulated profit 7,891,437 5,301,554
TOTAL EQUITY 13,616,324 11,026,441
ADVANCES AGAINST ISSUE OF ORDINARYSHARES 1,575,252
SURPLUS ON REVALUATIONOF PROPERTY,4,804,200 4,568,357
PLANT AND EQUIPMENT
LIABILITIES
Non- current liabilities
Redeemable capital 3879209 4,826,469
Long term finances 2186,511 2442807
Liabilities against assets subject to finance lease 61,349 74,715

2. Deferred taxation 2261,892 2394344
Deferred income 42,900 45,158
8,431,861 9,783,493
Current liabilities
Trade and other payables 815179 881429
Accrued interest/ mark-up 260,904 500,528
Short term borrowings 4,668,901 4,243,261
Current portion of non- current liabilities 1,976,655 1,523,155
7,721,639 7,148373
TOTAL LIABLITIES 16,153,500 16,931,866
ASSETS 2015 2014
NON- CURRENT ASSETS
Property, plant and equipment 15,509,612 14,466,890
Intangible assets 338,321 3334,008
Long term investments 8,906 63,890
Long term deposits 289,784 192,808
Long term advances 571,991 - .
16,718,614 15,067,596
CURRENT ASSETS
Stores, spares and loose tools 793,379 462,140
Stock in trade 6,181,986 6,316,868
Trade debts 7,700,373 7,123,859
Due against construction work in progress –unsecured 1,023,647 1,004,864
Considered goods
Short term advances 913,881 829,649
Short term deposits and prepayments 1,331,229 853,209
Other receivables 390,118 187,730

3. Short term investments 85,524 21,596
Advance income tax 432,838 319,067
Cash and bank balances 577,687 340,086
19,430,662 17,459,068
Total assets 36,149,276 32,526,664
PROFIT AND LOSS ACCOUNT
Rupees in thousands 2015 2014
Revenue 29,323,34824,125,716
Sales tax and discount (4,201,081) (3,607,686)
Revenue – net 25,122,267 20,518,030
Cost of sales (17,688,038) (14,208,775)
Gross profit 7,434,2296,309,255
Other income 35,86832,483
Distribution cost (1,331,075)( 1,089,521)
Administrative and generalexpenses (758,487) (689,570)
Other expenses (187,582) (113,604)
(2,227,144) (1,892,695)
Operating profit 5,192,953 4,449,043
Finance cost (1665,305) (1,892,828)

4. 3,527,648 2,556,215
Share of loss of associate (13,485) (10,924)
Profit before taxation 2,880,021 2,241,469
Other comprehensive- -
Total comprehensive income 2,880,021 2,241,469
Earning per share- basic anddiluted7.13 6.61
Calculation of ratios 2015
1. Liquidity ratios
 Current ratio
Current Ratio= Total current assets/ Total current liabilities
= 19430662/7721639
= 2.52 times
 Quick ratio
Quick Ratio= (Total current assets-inventory)/ Total current liabilities
= (19,430,662-6,181,986)/7,721,639
= 1.71
2. Acid-test ratio
 Inventory turnover ratio
Inventory turnover ratio = COGS/ average inventory
=17,688,038/6181986
=2.86 times
 Average age of inventory
Average age of inventory = 365/inventory turnover ratio
=365/2.8612
=128 days
 Average collection period
Average collection period= account recievebles/average sales per day
=11359248/68,828
=92 days
 Assets turnover ratio
Assets turnover ratio=total sales/total assets
=251222267/36149276
= 0.694
3. Debt ratio
 Debt ratio
Debt ratio = total liabilities/ total assets
=16153500/36149276
=0.446

5.  Times interest earned ratio
Times interest earned ratio = EBIT/annual interest
= 3514163/1682503
=2.08
4. Profitability ratio
 Gross profit ratio
Gross profit ratio = gross profit/ sales *100
=7434229/25122267*100
=29.59%
 Operating profit
Operating profit = operating profit/net sales *100
= 5192953/25122267*100
=20.67%
 Net profit ratio
Net profit= net profit/sales*100
= 2880021/25122267*100
=11.46%
 Return on assets
Return on assets = net income/ total assets
= 2880021/36149276
=7.96 %
 Return on equity
Return on equity =return on assets / ownership ratio
= 7.97/53.31
=14.40%
5. Marketability ratio
 Price earning ratio= market price per share/ EPS
=62.54/7.13
=8.77times
Summary of ratios
Current ratio
Quick ratio
2.52
1.61
Inventory turnover ratio
Assets turnover ratio
Average age of inventory
Average collection period
2.83
0.69
128
92
Debt ratio
Times interest earned ratio
0.44
2.08

6. Calculations if ratios 2014
Liquidity ratios
 Current ratio
Current Ratio= Total current assets/ Total current liabilities
= 17459/7148
= 2.44 times
 Quick ratio
Quick Ratio= (Total current assets-inventory)/ Total current liabilities
= (17459-6316868)/714
= 881.2 times
Acid-test ratio
 Inventory turnover ratio
Inventory turnover ratio = COGS/ average inventory
=14208775 / 6140170
=2.31times
 Average age of inventory
Average age of inventory = 365/inventory turnover ratio
=365/2.31
=158 days
 Average collection period
Average collection period= account recievebles/average sales per day
=187730/56213.78
= 3.33 days
 Assets turnover ratio
Assets turnover ratio=total sales/total assets
=20518030/32527
= 6307.7
Debt ratio
Gross profir ratio
Operating profit
Net profit
Return on assets
Return on equity
EPS
29.59%
20.67%
11.46%
7.96 %
14.40%
7.13
Market price per share 62.54
Price earning ratio 8.77times

7.  Debt ratio
Debt ratio = total liabilities/ total assets
=7148/32527
=22%
 Times interest earned ratio
Times interest earned ratio = EBIT/annual interest
= 5159/2019898
=255
Profitability ratio
 Gross profit ratio
Gross profit ratio = gross profit/ sales *100
=6309/20518030*100
=0.03%
 Operating profit
Operating profit = operating profit/net sales *100
= 2241/20518030*100
=0.010%
 Net profit ratio
Net profit= net profit/sales*100
= 4449/20518030*100
=0.02%
 Return on assets
Return on assets = net income/ total assets
= 22414691/32526664
= 68.32%
 Return on equity
Return on equity =return on assets / ownership ratio
= 6.87/0.338
=20.2%
Marketability ratio
 Price earning ratio= market price per share/ EPS
=40.93/6.61
=6.19 times
Summary of ratios 2014
Current ratio
Quick ratio
2.44
881.2
Inventory turnover ratio
Assets turnover ratio
Average age of inventory
Average collection period
2.31
158
1018.35
3.33
Debt ratio 0.22

8. Times interest earned ratio 2.55
Gross profir ratio
Operating profit
Net profit
Return on assets
Return on equity
EPS
0.03%
0.010%
0.02%
68.32%
20.2%
6.61
Market price per share 60.31
Price earning ratio 6.61