1. M. NAVEED

2. CONTENTS Introduction History Vision, Mission and Ethics Objective Ratios Liquidity Activity Profitability Solvency SWOT Analysis Suggestion and Conclusion 3. Its product line includes Caustic Soda solid, sodium hypochlorite, caustic soda liquid, hydrochloric acid, liquid chlorine, Specialty Chemical, Fertilizer polyester Cotton. Head Quarter in Faisalabad 343 Employs Private Ltd. Company Chemical Division Textile Division Manufactured Company 4. Sitara Group of Industries is one of the well-known industrial groups of Pakistan This group started its industrial activity with textile weaving sector in 1956 under leadership of two brothers, Haji Abdul Ghafoor (Late) and Haji Bashir Ahmed. By Haji Bashir Ahmed SCIL was incorporated in 1981 Began producing caustic soda in 1985 Its specialty chemicals and export division was established in 2001 and agri chemicals division in 2003. 5. VISION Strive to develop and employ innovative technological solutions to add value to business with progressive and positive approach. 6. MISSION Continuing growth and diversification for bottom line results with risks well contained. 7. BUSINESSES Sitara Chemical Industries Ltd. Sitara Chemical Industries Ltd. (Textile Division) Sitara Textile Industries Ltd. Sitara Spinning Mills Ltd. Sitara Energy Ltd. Aziz Fatima Trust Hospital Ghafoor Bashir Children Hospital Sitara Developers Ptv. Ltd. Sitara Hamza Pvt. Ltd. 8. OBJECTIVES Safety Quality Integrity Respect Excellence Innovation 9. M. SHAHID MUNIR 10. Ratios Activity Profitabilit y Solvency Liquidity 11. LIQUIDITY RATIO 12. LIQUIDITY RATIO Liquidity ratios measure the company's ability to meet its short-term obligations. Liquidity Ratios: Current Ratio Quick Ratio Absolute Ratio 13. CURRENT RATIO Definition: Total current assets to total current liabilities. Known as: Working Capital Ratio Bench-Mark Rate: 2:1 14. Formula = Current Assets/ Current Liabilities Year 2011 2012 Calculation = 2,293,235,870/3,940,419,539 2,715,289,032/4,279,702,977 Output = 0.58 : 1 0.63 : 1 CURRENT RATIO Current Assets Current 15. LIQUID RATIO Relationship between liquid assets and total current liabilities. Bench mark rate: 1:1 Acid test ratio, Quick ratio. Benefit: Exact test of liquidity. Also Known as: 16. LIQUID RATIO Formula = Liquid Assets/ Current Liabilities Year 2011 2012 Calculation = 1,401,115,714 1,805,887,700 3,940,419,539 4,279,702,977 Output = 0.36:1 0.42:1 17. ABSOLUTE LIQUID RATIO Relates cash , bank and marketable securities to current liabilities. Very strict and exacting standard of liquidity. Bench Mark rate: 0.5:1 18. ABSOLUTE LIQUID RATIO Formula = [Cash + Bank+ Marketable Securities] Current Liabilities Years 2011 2012 Calculation = 140,776,990 79,861,668 4,27,97,02,977 3,94,04,19,539 Output = 0.04:1 0.02:1 19. FARHAT ABBAS 20. ACTIVITY RATIO 21. ACTIVITY RATIO Activity or efficiency ratio reflects the intensity of a companys resource utilization or how efficient management team uses its assets or capital to generate sales. in other words measure the efficiency of Business 22. ACTIVITY RATIO Fixed assets turnover ratio Working capital turnover ratio Creditor conversion period Creditor turnover ratio Debtors conversion period Debtors turnover ratio Stock conversion period Stock turnover ratio 23. Years 2011 2012 Formula = CGS / Average Inventory Calculation = 4,663,238,913 5,393,939,325 885,083,340 902,720,830 Output = 5.27 Times 5.98 Times STOCK TURNOVER RATIO 24. Years 2011 2012 Formula = Days in a year stock turnover ratio Calculation = 365/5.27 365/5.98 Output = 69 Days 61 Days Inventory Conversion Period 25. Years 2011 2012 Formula = net credit sales Avg. account receivables Calculation = 4,663,238,913 5,393,939,325 512,397,911 893902085 Output = 12.13 Times 11.41 Times Debtors Turnover Ratio 26. Years 2011 2012 Formula = Days in a year debtors turnover ratio Calculation = 365 /12.13 365 / 11.41 Result = 30 Days 32 Days Debtors/ Receivables Conversion Period 27. Creditors/Payables Turnover Ratio Years 2012 2011 Formula = Net Credit purchases Avg. payable Calculation = 4,663,238,913 5,393,939,325 1,439,419,941 1,356,248,460 Output = 3.74 times 3.44 times 28. Years 2011 2012 Formula = Days in a year Creditors turnover ratio Calculation = 365/3.44 365/3.74 Output = 106 Days 97 Days Creditor/Payable Conversion Period 29. Formula = C.G.S/Fixed Assets Year 2011 2012 Calculation = 4,663,238,913 5,393,939,325 8,001,028,528 10,165,371,942 Out Put = 0.58 Times 0.53 Times Fixed Assets Turnover Ratio 30. WORKING CAPITAL TURNOVER RATIO How efficiently working capital is being used for the generation of revenues 31. WORKING CAPITAL TURNOVER RATIO Formula = C.G.S/ Average Working Capital Years 2011 2012 Calculation = 4,663,238,913 5,393,939,325 -1,647,183,669 -1,564,413,945 Output = -2.83 Times -3.45 Times 32. GOHAR IQBAL 33. Profitability Ratios 34. PROFITABILITY RATIO Types of Profitability Ratio 35. Formula =(Gross Profit/ Net Sale)*100 Year 2011 2012 Calculation = (1,553,641,041 (2,069,987,192 6,216,879,954)*100 7,463,926,517)*100 Output = 24.99 % 27.73 % GROSS PROFIT RATIO 36. Formula =(Net Profit Ratio/Net Sale) * 100 Year 2011 2012 Calculation = (427,991,321 (688,481,947 *100 6,216,879,954)*100 7,463,926,517) Output = 6.88 % 9.22 % NET PROFIT RATIO 37. Formula = (Operating Profit/ Net Sale) * 100 Year 2011 2012 Calculation = (1,078,065,020 (1,124,322,227 6,216,879,954)*100 7,463,226,517)*100 Output = 17.34 % 15.06 % Operating Profit Ratio 38. Formula = (C.G.S+ Operating Expenses) *100 Net Sales Years 2011 2012 Calculation = (5,046,378,387 (5,832,847,717 *100 6,216,879,954)*100 7,463,926,517) Output = 81.17 % 78.15 % Operating Ratio 39. Formula = (Expenses/Net Sale)*100 Year 2011 2012 Calculation = (1,078,065,020 (1,124,322,227 6,216,879,954)*100 7,463,926,517)*100 Output = 17.34 % 12.06 % EXPENSE RATIO 40. ZEESHAN ATTIQUE 41. The ratios are used to determine the long term debt paying capacity of any organization & measure the efficiency of firm regarding interest payment. SOLVENCY RATIO 42. In which including.. SOLVENCY RATIO 43. DEBT EQUITY RATIO A solvency ratio calculated as total debt divided by total shareholders equity Three Types of Formulas: 1. Debt to equity Ratio = Long term debt Equity 2. Debt to equity Ratio = Total debt Equity 3. Debt to equity Ratio = Long term debt Long term funds 44. 1. DEBT TO EQUITY RATIO Year 2011 2012 Formula = Long term debt/equity Calculation = 1,810,242,786 1,334,775,746 3,786,411,020 4,402,885,955 Output = 0.48:1 0.30:1 45. 2. DEBT TO EQUITY RATIO Year 2011 2012 Formula = Total debt/equity Calculation = 6,765,231,754 7,011,708,546 3,786,411,020 4,402,885,955 Output = 1.79:1 1.59:1 46. 3. DEBT TO EQUITY RATIO Year 2011 2012 Formula = Long term debt/Long term funds Calculation = 1,810,242,786 1,334,775,746 5,596,653,806 5,737,661,701 Output = 0.32:1 0.23:1 47. This ratio establishes the relationship between proprietor's fund to total resources of the unit. PROPRIETARY RATIO Formula: Equity Total Funds 48. FORMULA =(Equity/Total Funds)*100 Years 2011 2012 Calculation = (3,786,411,020 (4,402,885,955 8,001,028,528)*100 12,880,660,974)*100 Output = 36.78 % 34.18 % PROPRIETARY RATIO In 2011 is contributed by the proprietor was 36.78% But in 2012 this contributed was decreased and the figure was 34.18% remaining 49. This ratio measures the relationship between the long term funds and the fixed assets FIXED ASSETS RATIO Formula: Fixed Assets Long term Funds 50. Formula = Fixed Assets/Long Term Funds Years 2011 2012 Calculation = 8,001,028,528 10,165,371,942 6,611,223,235 7,134,891,524 Output = 1.21% 1.42% FIXED ASSETS RATIO 51. FORMULA = EBIT/Interest Years 2011 2012 Calculation = 1,213,154,939 1,669,465,200 703,493,583 682,871,270 Output = 2.44 Times 1.72 Times INTEREST COVERAGE RATIO 52. Akbar Butt 53. Earning Per Share EPS: EPS is the most important term for the investors of stock exchange Definition: This ratio tells us about how much earning on 1 share. 54. Formula = Profit After Tax/Number Of Shares Outstanding Year 2011 2012 Calculation= 427,991,321 688,481,947 21,429,407 21,429,407 Output = Rs. 19.97 Rs. 32.13 EARNING PER SHARE 55. RETURN ON INVESTMENT RATIO 56. Return On Investment Ratio Return on investment is the primary ratio to measure the overall profitability and efficiency of business. 57. 2 TYPES Return On Investment Ratio Return on Equity Return on capital employed 58. FORMULA =(EBIT/Capital Employed)*100 Year 2011 2012 Calculation = (1,213,154,939 (1,669,465,200 6,353,844,859)*100 8,600,957,997)*100 Output 19.09 % 19.41 % Return On Capital Employed 59. FORMULA =(Profit After Tax/Equity)*100 Year 2011 2012 Calculation = (427,991,321 (688,481,947 3,786,411,020)*100 4,402,885,955)*100 Output = 11.30 % 15.64 % Return On Equity / Share Holder Funds 60. ARFAN M. AFZAL 61. SWOT ANALYSIS Strength Largest manufacture caustic soda Largest Shareholder Advance Technology Plant Infrastructure Strong Management Strong Brand name Financially Sound 62. SWOT ANALYSIS Weaknesses Need Considerable Market to Sustain Lack of Operations in Abroad Relying on Permanent Customers 63. Opportunities Increase Production Capacity Increase Product Line Taking Advantage of Geographic position Provide Online Customer Service Ordering System SWOT ANALYSIS 64. Threats Competitors Economic Environment Energy Crises Threat of Stakeholders Unstable Law & Order Situation SWOT ANALYSIS 65. POSITIVE POINTS We did not found much difference in the SWOT Analysis of SCIL. They are performing pretty well and have strong strategic direction. When we Comparison with other Chemical industries like NIMIR the SCIL worked in well Condition. 66. SUGGESTIONS For the Market Development, it is opportunity for them to export their product in new markets. Sitara Chemical Industry must involve employees in decision making. Increase the Basic salary of its employees to increases their motivations. Avoid more credit Purchases. Control the Cost of product with the use of Advance Technology. Another they have to make segment in their website through which they can provide online customer services in which customer can place order and provide Feedback as well, this will help them to capture more customers throughout the world 67. CONCLUSION After the completion of ratio analysis ,we have concluded that the Industry has good will in market but this year some profitability ratios decreased & some increased as compare to previous year plus E P S. Its means that the company has to take measures to maintain its position But still there is some room for improvement in compensation system, and employment Planning. 68. T H A N K S