Ibf Report Ibl Healthcare

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 FINANCIAL ANALYSIS IBL HEALTHCARE LTD SUBMITED BY: MANOJ KUMAR TILWANI SP10-BB-0032 SUBMITIED TO: FAISAL AZIZ APRIL/ 22/ 2011 IBF SECTION ‘C’  MOHAMMAD ALI JINNAH UNIVERSITY 1 

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    FINANCIALANALYSIS

    IBL HEALTHCARELTD

    SUBMITED BY:MANOJ KUMAR TILWANI

    SP10-BB-0032

    SUBMITIED TO:FAISAL AZIZ

    APRIL/ 22/ 2011

    IBF SECTION C

    MOHAMMAD ALI JINNAH UNIVERSITY1

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    .Acknowledgment:

    I am thank full to Almighty Allah, my Parents, & teachers who gave me made me

    able, and motivated me in every field of life. I will never ever be able to forget the sacrificesof my parents theyve made for me and for my educational career.

    I am also very much thankful to my respected teacher for providing proper

    required knowledge and motivation, and my colleges and relatives for their unflinching

    support.

    Dr. Mohan Tilwani

    Faisal Aziz

    Waqas Khan

    Raazia Abdi

    Hira Abdul Rawoof

    Hamza Khan

    MOHAMMAD ALI JINNAH UNIVERSITY2

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    Content:

    S: No Description Page No

    1. Vision Statement 4

    2. Mission Statement 5

    3. Corporate information 6

    4. Financial Ratios 2010 7

    5.Interpretation 11

    6. Time Series Analysis 15

    7. Cross Sectional Analysis 18

    8. Internal Growth rate & Sustainable growth rate 21

    9. Profama statements 23

    10. Conclusion 27

    11. Readers Comments 28

    MOHAMMAD ALI JINNAH UNIVERSITY3

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    To become the leading health care

    products and service providers of Pakistan.

    MOHAMMAD ALI JINNAH UNIVERSITY4

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    We are committed to contribute in the betterment ofsociety by providing a versatile range of health care and nutrition

    products. We aim to grow by relentlessly providing better products

    and services to our customers, better returns to our stakeholders

    and a better quality of life to the employees.

    MOHAMMAD ALI JINNAH UNIVERSITY5

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    Corporate information

    BOARD OF DIRECTORS

    CHAIRMAN

    & Mr. Rashid Abdulla

    CHIEF EXECUTIVE OFFICER

    DIRECTORS: Mr. Khalid MalikSyed Nadeem AhmedMr. Munis AbdullaMr. Zubair PalwalaMr. Asad AbdullaMr. Ayaz Abdulla

    AUDIT COMMITTEECHAIRMAN: Mr. Asad AbdullaMEMBERS: Mr. Khalid Malik

    Mr. Zubair PalwalaCOMPANY SECRETARY &CHIEF FINANCIAL OFFICER: Mr. Mobeen AlamBANKERS: . Silk Bank Ltd.

    National Bank of Pakistan Ltd.Habib Bank Ltd.The Royal Bank of Scoltand.National Bank of Pakistan

    MOHAMMAD ALI JINNAH UNIVERSITY6

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    Standard Chartered Bank (Pakistan).AUDITORS: Baker Tilly Mehmood Idrees Qamar & CoLEGAL ADVISOR: Mohsin Tabebaly & CoREGISTERED OFFICE: 9th Floor, NIC Building, Abbasi

    Shaheed Road, Karachi

    INTERPRETATION

    OF

    MOHAMMAD ALI JINNAH UNIVERSITY7

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    RATIOS

    RATIOS ANALYSIS OF 2010

    WORKING CAPITAL:

    Working Capital= Current Assets - current Liabilities

    Working Capital= 188943000-123275000

    Working Capital= 179981000

    CURRENT RATIO:

    Current Ratio = Current Assets / Current liabilities

    Current Ratio = 188943000/123275000

    Current Ratio = 1.64

    QUICK RATIO:

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    Assets turn over = 475248000/ 371393000

    Assets turn over = 1.28

    PRICE EARNING RATIO:

    Price earning ratio = Market Price / Earning Per share

    Price earning ratio = 11.49 / 0.45

    Price earning ratio = 25.533

    RETURN ON TOTAL ASSETS:

    Return on total assets = Net income / Total assets x 100

    Return on total assets = 9093000 / 371393000 x 100

    Return on total assets =2.44%

    GROSS PROFIT MARGIN:

    Gross profit Margin = Gross Profit / Net sales x 100

    Gross profit Margin =113074000 /475248000 x 100

    Gross profit Margin = 23.79%

    OPERATING PROFIT MARGIN:

    Operating profit Margin = Operating profits / Total sales x 100

    Operating profit Margin = 14481000 / 475248000 x 100

    Operating profit Margin = 3.04%

    NET PROFIT MARGIN:

    Net profit Margin = Net Profit / Net sales x 100

    Net profit Margin = 9093000 / 475248000 x 100

    Net profit Margin = 1.91 %

    MOHAMMAD ALI JINNAH UNIVERSITY10

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    TIMES INTREST EARNED RATIO:Times Interest Earned Ratio =EBIT / Interest

    Times Interest Earned Ratio = 14481000/450000

    Times Interest Earned Ratio = 32.18

    AVERAGE COLLECTION PERIOD:Average Collection period= Accounts Receivable / Av: Sales per day

    Average Collection period=33558000 / 1302049.315

    Average Collection period=25.77

    INTERPRETATIONOF

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    RATIOS

    CURRENT RATIO

    INTERPRETATION:Current ratio measures a firms ability meet its short term obligations. It shows

    the relationship between current assets and current liabilities.

    Here current ratio is 1.64 times. it means that companys current assets are 1.64

    times more than that of its currant liabilities.

    QUICK RATIO:

    INTERPRETATION:

    Quick ratio measures a firms ability meet its short term obligations. It shows the

    relationship between quick assets and quick liabilities.

    In this company quick ratio is 0.66 times. it means that companys quick assets

    are 0.66 times more than that of its quick liabilities.

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    TIME INTEREST EARNED:

    INTERPRETATION:

    Time interest earned indicates that how many times a Company can pay its

    finance cost from its operating profit.

    In this company time interest earned ratio is 32.18 times from its operating profit

    AVERAGE COLLECTION PERIOD:

    INTERPRETATION:

    AVG collection period indicates that after how many days the company converts

    its account receivable into cash.

    In this company Avg collection period is 25.773 days. It means that the company

    converts its accounts receivables in 25.773 days.

    INVENTORY TURNOVER:INTERPRETATION:

    Inventory turnover indicates that how many times a company converts its

    inventory into sales or cash.

    In this company, the inventory turnover is 5.925 times. It means the company

    converts its inventory 5.925 times into sales a year.

    TOTAL ASSET TURNOVER:

    INTERPRETATION:

    Total assets turnover indicates that after how many times the total assets of its

    own worth generate revenue.

    In this company, the total asset turnover is 1.28 times. It means that a companys

    total assets generate revenues 1.28 times of its own worth.

    MOHAMMAD ALI JINNAH UNIVERSITY13

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    GROSS PROFIT MARGIN:

    INTERPRETATION:

    Gross profit margin shows the relationship between gross profit and net sales. It

    is a percentage of gross profit based on the value of net sales.

    In this company, gross profit is 23.79% It means that company generates 23.79%

    gross profit based on the value of net sales.

    RETURN ON ASSETS:

    INTERPRETATION:

    Return on asset shows the relationship between net profit and total assets. It is

    percentage of net profit based on the value of total assets.

    In this company, return on assets 2.44%. It means that company generates

    2.44% profit based on the value of total assets.

    RETURN ON EQUITY:

    INTERPRETATION:

    Return on equity shows the relationship between net profit and total

    shareholders equity. It is percentage of net profit based on the value of total

    shareholders equity.

    In this company, return on equity is 3.66%. It means that company generates

    3.66% profit based on the value of total shareholders equity.

    NET PROFIT MARGIN:

    INTERPRETATION:

    Net profit margin shows the relationship between net profit and net sales. It is a

    percentage of net profit based on the value of net sales.

    MOHAMMAD ALI JINNAH UNIVERSITY14

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    In this company, net profit 1.91%. It means that company generates 1.91% net

    profit based on the value of net sales.

    OPERATING PROFIT MARGIN:

    INTERPRETATION:

    Operating profit margin show is the relationship between operating profit and

    net sales. It is a percentage of operating profit based on the value of net sales.In this company, operating profit margin is 3.04%. It means that company

    generates 3.04% operating profit margin based on the value of net sales.

    Time Series

    Analysis

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    TIME SERIES ANALYSIS OF 2008, 2009 &

    2010

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    MOHAMMAD ALI JINNAH UNIVERSITY17

    IBL Health Care

    Time Series Analysis

    RATIOS 2008 2009 2010 Interpretation

    CURRENT 2.71 2.77 1.64 Worse

    QUICK 1.39 1.6 0.66 Worse

    INVENTORY TURN OVER 6.61 4.88 5.925 OK

    AVERAGE COLLECTION 65.28 56.72 25.77Worse

    AVERAGE PYMENT

    TOTAL ASSETS TURN OVER 1..71 1.21 1.28OK

    DEBT RATIO

    TIME INTREST EARNED RATIO 7.485 -12.48 32.18 Better

    GROSS PROFIT MARGIN 16.65 9.38 23.79%Better

    OPERATING PROFIT MARGIN 3.04%

    NET PROFIT MARGIN 2.48 -4.71 1.91%Worse

    EARNING PER SHARE 0.79 -0.98 0.45OK

    RETURN ON TOTAL ASSETS 4.24% -5.69% 2.44%Worse

    RETURN ON COMMON EQUITY 6.11 -8.18 3.66%Worse

    PRICE EARNING 14.544 11.724 25.533Better

    MARKET BOOK

    CASH RATIO

    FIXED ASSET TURN OVER

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    Cross Sectional

    Analysis

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    Cross Sectional Analysis

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    INTERNAL

    &

    SUSTAINABLEGROWTH RATES

    2010

    Internal Growth Rate 2010

    MOHAMMAD ALI JINNAH UNIVERSITY21

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    Internal Growth Rate = RoA x b / 1-(RoA x 100)

    RoA = Net income / Total Assets

    RoA =

    RoA= 0.022

    Sustainable Growth Rate 2010

    Sustainable Growth Rate = RoE x b / 1 (RoE x b)

    MOHAMMAD ALI JINNAH UNIVERSITY22

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    PROFORMA

    STATEMENT

    IBL HEALH CARE LTD.

    BALANCE SHEET

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    FOR THE YEAR ENDED JUNE 30, 2011

    IBL Health Care

    Proforma Blance Sheet

    for the year of 2011 (000)

    cash 29728.05 account payable 119437.4

    marketable securites 115470.23 taxes payable 0

    account receivable 34832.89 notes payable 0

    inventory 63447.18 other current liabilities 265.72

    other current assets 16089.89total current assets 259568.24 total current liabilities 119703.2

    long term debts 8255.13

    sockholder's equity common stock 200000

    net fixed asset 189381.4 retain earning 49946.03

    TOTAL STOCK EQUITY 249946external financing required 71045.34

    total assets 448949.64total laibilities and stock

    equity 448949.7

    IBL HEALTH CARE LTD.

    INCOME STATEMENT

    MOHAMMAD ALI JINNAH UNIVERSITY24

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    FOR THE YEAR ENDED JUNE 30, 2010

    IBL Health Care

    Proforma Income Statement

    for the year of 20122009 2011

    Revenue 414882 493303

    Cost of sales-

    375986 -375933.2406

    Gross profit 38896 117369.7594

    Selling and distribution expenses -33380 -86703.36243

    Adimnistration expenses -6290 -9184.141636

    Amortization of intangable assets -8700 -9030.519013

    -48370 -104918.0231

    other operating income 1803 2579.406868

    operating profit/(loss) -7671 15031.1432

    finance cost -668 -467.095811

    profit before tax -8339 14564.04739

    taxation -11216 -5125.598033

    net profit -19555 9438.449355

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    Cash Dividend:

    Cash Dividend: Net Income Difference of Equity

    Cash Dividend: 89343081- 1031511555.5

    Cash Dividend :( 942168424.5)

    CONCLUSION

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    Conclusion:

    The Company Tata Textile Limited has on the fastest growing company in

    the Pakistan the company has current position is excellent compare to the

    past year and the company is going well in leader ship and company has

    increase his performance to the last year and the company has produce high

    quality of yarn for high quality product

    MOHAMMAD ALI JINNAH UNIVERSITY27

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    Readers Comments

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    MOHAMMAD ALI JINNAH UNIVERSITY