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NAME: Kashif Afzal JunejoID: 1135111COURSE: AFSTo: Sir Faisal Abdullah

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DAWOOD HERCULES CHEMICALS LIMITEDRATIO ANALYSIS (2006-2010)

RATIOS 2010 2009 2008 2007Values in

GrossProfit % 0.4 36% 42% 37%2 Net Profit to Sales % 0.25 -16% 0.41 202%3 Earnings Per Share Rs. 17.86 -14.8 28 122.34 Inventory Turnover Time 34.83 81.92 9.01 5.75 Age of Inventory Days 10.48 4.46 40.61 64.046 Debtors Turnover Time 1433.6 1,171.40 1095.4 1,383.247 Average Collection Period

Days 0.25 0.31 0.33 0.268 Operating Cycle Days 10.73 4.77 40.95 64.39 Total Assets Turnover Time 0.32 0.4 0.29 0.1710 Fixed Assets Turnover % 404.14 636.09 536.3 368.2711 Break-up Value of Share Rs. 162.43 163.23 158.91 227.9512 Dividend Yield % 2.52 2.22 1.13 0.7613 Dividend Payout Ratio % 28 -27.02 8.93 3.2414 Return on Equity % 10.99 -9.98 17.62 53.6515 Debt Equity Ratio Time 0.26 0.35 0.36 0.3416 Current Ratio Time 2.46 2.01 3.19 3.15

17 Quick Ratio Time 1.59 1.24 2.01 2.5118 Operating Profit Margin % 44.49 0.52 39.74 210.5619 Total Debt Ratio Time 0.21 0.27 0.25 0.320 Interest Cover Ratio Time 4.26 0.06 5.33 15.1221 Dividend Cover Ratio Time 3.57 -3.7 11.2 30.8822 Return on capital employed % 15.57 0.23 12.27 41.1423 EBITDA margin % 46.88 1.87 66.53 230.5224 Market Value per Share Rs. 198.36 179.81 220 393.8

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2006

34%0.53

24.79

12.828.52

1221.98

0.328.82

0.24381

111.9

2.7132.27

22.15Nil

1.28

1.0852.860.37

5.083.1

21.62

74.79295

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2444611.9

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Dawood Hercules Chemicals Limited

Horizontal Analysis

Profit and Loss Statement

Rs. in Million

Particulars 2005 2006 2007 2008 2009

Restated

Sales - net 3,290.55 3,881.75 5,011.00 7,428.70 11,040.36

Cost of goods sold 2,030.60 2,570.25 3,148.55 4,312.46 7,080.46

Gross profit 1,259.95 1,311.50 1,862.45 3,116.24 3,959.90

Distribution expenses -6.13 -6.2 -13.07 -72.28 -392.03

Administrative expenses -196.39 -229.93 -277.81 -317.57 -328.27

Impairment loss - - - -100.31 -3,791.09

Other expenses -56.5 -70.51 -74.37 -183.93 -159.51Other income 1,775.77 1,047.26 9,053.94 509.59 767.76Result from operating activities 2,776.70 2,052.12 10,551.14 2,951.74 56.76

Finance cost 258.06 555.47 755.84 901.45 984.75

Share of profit from associate, net 681.91 769.76 878.85 1,850.20 -

Profit / (Loss) before tax 3,200.55 2,266.41 10,674.15 3,900.49 -927.99

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Income tax expenses -332.6 -212.2 -539.7 -837.8 -853.3Profit / (Loss) after tax 2,867.95 2,054.21 10,134.45 3,062.69 -1,781.29

Earnings / (loss) per share (Rs.) 34.61 24.79 92.65 28 -14.8

Horizontal Analysis

Balance Sheet

Rs. in Million

Share Capital and ReservesIssued, subscribed and paid upcapital

720.58 828.66 828.66 1,093.83 1,093.83

Revenue reserves 6,728.43 8,204.37 17,841.62 20,415.40 16,756.87Fair value reserve 1,906.24 240.11 219.05 -4,126.57 3.98Share holder's equity with FVR 9,355.24 9,273.14 18,889.33 17,382.66 17,854.69

Non Current Liabilities 87.1 217.89 6,760.55 6,670.36 6,516.30Sub Total 9,442.34 9,491.03 25,649.88 24,053.02 24,370.98

Current LiabilitiesCurrent portion - long term loan - -

Short term financing - secured 2,334.90 5,924.51 2,281.43 70.14 1,196.60Trade and other payables 631.69 490.45 512.95 538.13 648.23Markup payable on secured loans 48.24 169.89 249.44 275.85 280.27

Provision for taxation 330 86.8 529 693 858Sub Total 3,344.83 6,671.65 3,572.82 1,577.12 2,983.10Total 12,787.17 16,162.69 29,222.70 25,630.14 27,354.08

Particulars 2005 2006 2007 2008 2009Rs. in Million

Particulars 2005 2006 2007 2008 2009

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RestatedAssetsFixed capital expenditure 690.3 1,347.37 1,374.03 1,396.33 2,075.00Long term investments 5,732.60 6,292.39 16,610.26 19,205.63 19,289.96Long term loans and advances 0.64 12.8 1.11 1.26 2.42Sub Total 6,423.54 7,652.56 17,985.40 20,603.22 21,367.38

Current AssetsStores, spares and loose tools 646.51 759.95 893.25 1,025.76 1,303.30Stock in trade 164.43 237.3 867.51 89.57 83.28Trade debts 3.85 2.5 4.74 8.82 10.03Loans, advances, deposit,prepayments andother receivables includingadvance income tax

402.98 298.71 491.75 735.4 912.63

Short term investments 4,746.93 7,155.38 7,882.22 2,233.42 3,399.31Cash and bank balances 398.92 56.29 1,097.82 933.94 278.15

Sub Total 6,363.62 8,510.13 11,237.30 5,026.92 5,986.70Total Assets Employed 12,787.17 16,162.69 29,222.70 25,630.14 27,354.08

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For the Year Ended 31st December

Percentage Change

2010 06 Over 05 07 Over 06 08 Over 07 09 Over 08

8,715.71 18% 29% 48% 49%

5,214.37 27% 22% 37% 64%

3,501.34 4% 42% 67% 27%

-267.72 1% 111% 453% 442%

-425.88 17% 21% 14% 3%

-2.39 - - - 3679%

-115.87 25% 5% 147% -13%1,189.02 -41% 765% -94% 51%3,878.50 -26% 414% -72% -98%

909.6 115% 36% 19% 9%

- 13% 14% 111% -100%

2,968.90 -29% 371% -63% -124%

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-820.37 -36% 154% 55% 2%2,148.53 -28% 393% -70% -158%

17.86 -28% 274% -70% -153%

Percentage Change

2010 06 Over 05 07 Over 06 08 Over 07 09 Over 08

1,203.22 15% 0% 32% 0%

18,205.35 22% 117% 14% -18%135.76 -87% -9% -1984% -100%

19,544.32 -1% 104% -8% 3%

5,362.05 150% 3003% -1% -2%24,906.38 1% 170% -6% 1%

660.5

45.72 154% -61% -97% 1606%694.72 -22% 5% 5% 20%232.98 252% 47% 11% 2%

686 -74% 509% 31% 24%2,319.93 99% -46% -56% 89%

27,226.30 26% 81% -12% 7%

2010 06 Over 05 07 Over 06 08 Over 07 09 Over 08

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2,238.22 95% 2% 2% 49%19,289.96 10% 164% 16% 0%

1.68 1900% -91% 14% 92%21,529.86 19% 135% 15% 4%

1,073.54 18% 18% 15% 27%216.12 44% 266% -90% -7%

2.13 -35% 90% 86% 14%

714.46 -26% 65% 50% 24%

2,439.93 51% 10% -72% 52%1,250.26 -86% 1850% -15% -70%

5,696.44 34% 32% -55% 19%27,226.30 0.26 0.81 -0.12 0.07

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10 Over 09

-21%

-26%

-12%

-32%

30%

-100%

-27%55%

6733%

-8%

-420%

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-4%-221%

-221%

10 Over 09

10%

9%3311%

9%

-18%2%

-96%7%

-17%

-20%-22%0%

10 Over 09

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8%0%

-31%1%

-18%160%-79%

-22%

-28%349%

-5%0.00

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Dawood Hercules Chemicals Limited

Vertical Analysis

Profit and Loss Statement

Particulars 2005 2006 2007 2008

Sales - net 3290.55 3881.75 5,011.00 7,428.70

Cost of goods sold 2,030.60 2,570.25 3,148.55 4,312.46

Gross profit 1,259.95 1,311.50 1,862.45 3,116.24

Distribution expenses -6.13 -6.2 -13.07 -72.28

Administrative expenses -196.39 -229.93 -277.81 -317.57

Impairment loss - - - -100.31

Other expenses -56.5 -70.51 -74.37 -183.93

Other income 1,775.77 1,047.26 9,053.94 509.59

Result from operating activities 2,776.70 2,052.12 10,551.14 2,951.74

Finance cost 258.06 555.47 755.84 901.45

Share of profit from associate,net of tax

681.91 769.76 878.85 1,850.20

Profit / (Loss) before tax 3,200.55 2,266.41 10,674.15 3,900.49

Income tax expenses -332.6 -212.2 -539.7 -837.8

Rs. in Million

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Profit / (Loss) after tax 2,867.95 2,054.21 10,134.45 3,062.69Earnings / (loss) per share (Rs.) 34.61 24.79 92.65 28

Vertical Analysis

Balance Sheet

Particulars 2005 2006 2007 2008

Share Capital and ReservesIssued, subscribed and paid upcapital

720.58 828.66 828.66 1,093.83

Revenue reserves 6,728.43 8,204.37 17,841.62 20,415.40Fair value reserve 1,906.24 240.11 219.05 -4,126.57Share holder's Equity with FVR 9,355.24 9,273.14 18,889.33 17,382.66

Non Current Liabilities 87.1 217.89 6,760.55 6,670.36Sub Total 9,442.34 9,491.03 25,649.88 24,053.02

Current LiabilitiesCurrent Portion - Long TermLoanShort term financing - secured 2,334.90 5,924.51 2,281.43 70.14

Trade and other payables 631.69 490.45 512.95 538.13Markup payable on securedloans

48.24 169.89 249.44 275.85

Provision for taxation 330 86.8 529 693Sub Total 3,344.83 6,671.65 3,572.82 1,577.12Total 12,787.17 16,162.69 29,222.70 25,630.14

Particulars 2005 2006 2007 2008

AssetsFixed capital expenditure 690.3 1,347.37 1,374.03 1,396.33

Rs. in Million

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2009 2010 2005 2006 2007 2008 2009Restated

11,040.36 8,715.70 100% 100% 100% 100% 100%

7,080.46 5,214.37 62% 66% 63% 58% 64%

3,959.90 3,501.34 38% 34% 37% 42% 36%

-392.03 -267.72 0% 0% 0% 1% 4%

-328.27 -425.88 6% 6% 6% 4% 3%

-3,791.09 -2.39 0% 0% 0% 1% 34%

-159.51 -115.87 2% 2% 1% 2% 1%

767.76 1,189.02 54% 27% 181% 7% 7%

56.76 3,878.50 84% 53% 211% 40% 1%

984.75 909.6 8% 14% 15% 12% 9%

- - 21% 20% 18% 25% 0%

-927.99 2,968.90 97% 58% 213% 53% -8%

-853.3 -820.37 10% 5% 11% 11% 8%

Percentage

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-1,781.29 2,148.53 87% 53% 202% 41% -16%-14.8 17.86

2009 2010 2005 2006 2007 2008 2009Restated

1,093.83 1,203.22 6% 5% 3% 4% 4%

16,756.87 18,205.35 53% 51% 61% 80% 61%3.98 135.76 15% 1% 1% -16% 0%

17,854.69 19,544.32 73% 57% 65% 68% 65%

6,516.30 5,362.05 1% 1% 23% 26% 24%24,370.98 24,906.38 74% 59% 88% 94% 89%

- 660.5 0% 0% 0% 0% 0%

1,196.60 45.72 18% 37% 8% 0% 4%

648.23 694.72 5% 3% 2% 2% 2%280.27 232.98 0% 1% 1% 1% 1%

858 686 3% 1% 2% 3% 3%2,983.10 2,319.93 26% 41% 12% 6% 11%

27,354.08 27,226.30 100% 100% 100% 100% 100%

Percentage2009 2010 2005 2006 2007 2008 2009

Restated

2,075.00 2,238.22 5% 8% 5% 5% 8%

Percentage

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19,289.96 19,289.96 45% 39% 57% 75% 71%2.42 1.68 0% 0% 0% 0% 0%

21,367.38 21,529.86 50% 47% 62% 80% 78%

1,303.30 1,073.54 5% 5% 3% 4% 5%

83.28 216.12 1% 1% 3% 0% 0%10.03 2.13 0% 0% 0% 0% 0%

912.63 714.46 3% 2% 2% 3% 3%

3,399.31 2,439.93 37% 44% 27% 9% 12%278.15 1,250.26 3% 0% 4% 4% 1%

5,986.70 5,696.44 50% 53% 38% 20% 22%27,354.08 27,226.30 100% 100% 100% 100% 100%

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2010

100%

60%

40%

3%

5%

0%

1%

14%

45%

10%

0%

34%

9%

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25%

2010

4%

67%0%

72%

20%91%

2%

0%

3%1%

3%9%

100%

2010

8%

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71%0%

79%

4%

1%0%

3%

9%5%

21%100%