Ssgc final report (29 04-2014)

SUBMITTED TO:SIR NAVEED SAJWANI

DATED: 18th APRIL 2014SUBMITTED BY: (Alphabaticaly)

Serial No.1.2.3.4.5.

IQRA UNIVERSITY NORTHNAZIMABAD CAMPUS

FINANCIAL REPORTS AND ANALYSIS

2011 - 2012

SUI SOUTHERN GAS COMPANY LIMITED

Registration Number Name1779 M. KALEEM MEHMOOD

10396 USAMA HAMID

10251 FARUKH EJAZ10403 OMAIR FAISAL10159 SHAKIR ULLAH

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Mission & Vision Statement of the Company

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Liquidity ratios

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Consolidated Profit & Loss (Vertical Analysis)

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9

15

Financial Leverage Ratios

Consolidated Cash Flow

Ratios Analysis and Interpretation

iii Coverage Ratio

Profitability Ratio

Consolidated Profit & Loss (Horizontal Analysis)

Consolidated Balance Sheet (Vertical Analysis)

INDEX PAGE

Activity Ratio

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SerialNumber

PageNumber Contents

1 Company Breif Profile

Consolidated Balance Sheet (Horizonatal Analysis)

Company's Brief Profile

Vision statement of the company

Mission statement of the company

"To meet the energy requirements of customers through reliable, environment-friendly and sustainable supplyof natural gas, while conducting business professionally, efficiently, ethically and with responsibility to all ourstakeholders, community, and the nation."

Sui Southern Gas Company (SSGC) is Pakistan’s leading integrated gas Company. The company is engaged inthe business of transmission and distribution of natural gas besides construction of high pressure transmissionand low pressure distribution systems.

SSGCL transmission system extends from Sui in Baluchistan to Karachi in Sind comprising over 3,220 KM of

high pressure pipeline ranging from 12 – 24″ in diameter. The company also owns and operates the only gas

meter manufacturing plant in the country, having an annual production capacity of over 750,000 meters.

The Company is managed by an autonomous Board of Directors for policy guidelines and overall control.Presently, SSGC’s Board comprises of 14 members.

"To be a model utility providing quality service by maintaining a high level of ethical and professionalstandards and through optimum use of resources."

SUI SOUTHREN GAS COMPANY LIMITED (SSGC)CONSOLIDATED BALANCE SHEETAS AT JUNE 30, 2012

Notes 2012 2011 Amount PercentEQUITY AND LAIBILITIES

Share capital and reservesAuthorised share capital:1,000,000,000 ordinary shares of Rs. 10 each 10,000,000 10,000,000 - 0.00%

Issued, subscribed and paid-up capital 04 8,809,163 8,389,679 419,484 5.00%Reserves 05 4,907,401 3,107,401 1,800,000 57.93%Surplus on re-measurement of available for sale secu. 57,946 68,610 (10,664) -15.54%Unappropriated profit 4,339,687 6,209,480 (1,869,793) -30.11%

18,114,197 17,775,170 339,027 1.91%

Surplus on revaluation of fixed assets 06 10,251,946 10,251,946 - 0.00%

LIABILITIESNon-current liabilitiesLong term financing 07 18,315,383 14,471,126 3,844,257 26.57%Long term deposits 08 4,602,874 4,062,376 540,498 13.30%Deferred tax 09 7,550,239 7,651,284 (101,045) -1.32%Employee benefits 10 2,154,237 1,825,246 328,991 18.02%Deferred credit 11 5,336,479 5,518,634 (182,155) -3.30%Long term advances 12 1,896,646 1,296,513 600,133 46.29%Total non-current liabilities 39,855,858 34,825,179 5,030,679 14.45%

Current liabilitiesCurrent portion of long term financing 13 3,227,262 4,272,259 (1,044,997) -24.46%Trade and other payables 14 85,639,076 62,215,241 23,423,835 37.65%Interest and mark-up accrued 15 16,197,115 10,822,821 5,374,294 49.66%Total current liabilities 105,063,453 77,310,321 27,753,132 35.90%

Total liabilities 144,919,311 112,135,500 32,783,811 29.24%

Contingencies and commitments 16

Total equity and liabilities 173,285,454 140,162,616 33,122,838 23.63%

HORIZONTAL / TREND ANALYSIS

Increase / (Decrease)Rupees in "000"

Notes 2012 2011 Amount Percent

ASSETSNon-current assetsProperty, plant and equipment 17 66,466,873 59,644,339 6,822,534 11.44%Intangible assets 18 46,020 15,973 30,047 188.11%Long term investments 19 71,574 77,138 (5,564) -7.21%Share of Investment in Associate 20 - 5,100 (5,100) -100.00%Net investment in finance lease 21 802,950 921,744 (118,794) -12.89%Long term loans and advances 22 124,235 118,380 5,855 4.95%Long term deposits 3,481 3,250 231 7.11%Total non-current assets 67,515,133 60,785,924 6,729,209 11.07%

Current assetsStores, spares and loose tools 23 2,080,850 2,262,564 (181,714) -8.03%Stock-in-trade 24 795,567 702,720 92,847 13.21%Current maturity of net investment in finance lease 21 118,795 118,795 - 0.00%Customers installation work in progress 25 191,900 174,620 17,280 9.90%Trade debts 26 71,740,913 49,182,342 22,558,571 45.87%Loans and advances 27 120,758 110,837 9,921 8.95%Trade deposits and short term prepayments 28 191,117 209,841 (18,724) -8.92%Interest accrued 29 3,438,828 3,473,681 (34,853) -1.00%Other receivables 30 24,153,103 19,750,254 4,402,849 22.29%Taxation - net 31 1,429,149 2,306,105 (876,956) -38.03%Cash and bank balances 32 1,509,341 1,084,933 424,408 39.12%Total current assets 105,770,321 79,376,692 26,393,629 33.25%

Total assets 173,285,454 140,162,616 33,122,838 23.63%


Rupees in "000" Increase / (Decrease)

SUI SOUTHREN GAS COMPANY LIMITED (SSGC)CONSOLIDATED PROFIT AND LOSS ACCOUNTFOR THE YEAR ENDED JUNE 30, 2012

Notes 2012 2011 Amount Percent

Sales 153,317,539 126,403,168 26,914,371 21.29%Sales tax (19,400,497) (16,000,749) (3,399,748) 21.25%

133,917,042 110,402,419 23,514,623 21.30%Gas development surcharge (2,970,598) 4,126,741 (7,097,339) -171.98%Net sales 130,946,444 114,529,160 16,417,284 14.33%Cost of sales 33 (128,391,923) (112,284,333) (16,107,590) 14.35%Gross profit 2,554,521 2,244,827 309,694 13.80%

Administrative and selling expenses 34 (4,044,707) (3,081,710) (962,997) 31.25%Other operating expenses 35 (1,717,963) (1,645,141) (72,822) 4.43%

(5,762,670) (4,726,851) (1,035,819) 21.91%(3,208,149) (2,482,024) (726,125) 29.26%

Other operating income 36 3,378,624 3,759,907 (381,283) -10.14%

Operating profit 170,475 1,277,883 (1,107,408) -86.66%

Other non-operating income 37 11,242,114 10,027,918 1,214,196 12.11%

EBIT 11,412,589 11,305,801 106,788 0.94%

Finance cost 38 (7,531,711) (5,786,122) (1,745,589) 30.17%

EBT 3,880,878 5,519,679 (1,638,801) -29.69%

Taxation 39 (1,433,767) (795,287) (638,480) 80.28%

Profit for the year 2,447,111 4,724,392 (2,277,281) -48.20%


Rupees in "000" Increase / (Decrease)

SUI SOUTHREN GAS COMPANY LIMITED (SSGC)CONSOLIDATED BALANCE SHEETAS AT JUNE 30, 2012

Notes 2012 2011 2012 2011EQUITY AND LAIBILITIES

Share capital and reservesAuthorised share capital:1,000,000,000 ordinary shares of Rs. 10 each 10,000,000 10,000,000

Issued, subscribed and paid-up capital 04 8,809,163 8,389,679 5.08% 5.99%Reserves 05 4,907,401 3,107,401 2.83% 2.22%Surplus on re-measurement of available for sale secu. 57,946 68,610 0.03% 0.05%Unappropriated profit 4,339,687 6,209,480 2.50% 4.43%

18,114,197 17,775,170 10.45% 12.68%

Surplus on revaluation of fixed assets 06 10,251,946 10,251,946 5.92% 7.31%

LIABILITIESNon-current liabilitiesLong term financing 07 18,315,383 14,471,126 10.57% 10.32%Long term deposits 08 4,602,874 4,062,376 2.66% 2.90%Deferred tax 09 7,550,239 7,651,284 4.36% 5.46%Employee benefits 10 2,154,237 1,825,246 1.24% 1.30%Deferred credit 11 5,336,479 5,518,634 3.08% 3.94%Long term advances 12 1,896,646 1,296,513 1.09% 0.93%Total non-current liabilities 39,855,858 34,825,179 23.00% 24.85%

Current liabilitiesCurrent portion of long term financing 13 3,227,262 4,272,259 1.86% 3.05%Trade and other payables 14 85,639,076 62,215,241 49.42% 44.39%Interest and mark-up accrued 15 16,197,115 10,822,821 9.35% 7.72%Total current liabilities 105,063,453 77,310,321 60.63% 55.16%

Total liabilities 144,919,311 112,135,500 83.63% 80.00%

Contingencies and commitments 16

Total equity and liabilities 173,285,454 140,162,616 100.00% 100.00%

VERTICAL ANALYSIS

Rupees in "000" Common size percentage

Notes 2012 2011 2012 2011

ASSETSNon-current assetsProperty, plant and equipment 17 66,466,873 59,644,339 38.36% 42.55%Intangible assets 18 46,020 15,973 0.03% 0.01%Long term investments 19 71,574 77,138 0.04% 0.06%Share of Investment in Associate 20 - 5,100 0.00% 0.00%Net investment in finance lease 21 802,950 921,744 0.46% 0.66%Long term loans and advances 22 124,235 118,380 0.07% 0.08%Long term deposits 3,481 3,250 0.00% 0.00%Total non-current assets 67,515,133 60,785,924 38.96% 43.37%

Current assetsStores, spares and loose tools 23 2,080,850 2,262,564 1.20% 1.61%Stock-in-trade 24 795,567 702,720 0.46% 0.50%Current maturity of net investment in finance lease 21 118,795 118,795 0.07% 0.08%Customers installation work in progress 25 191,900 174,620 0.11% 0.12%Trade debts 26 71,740,913 49,182,342 41.40% 35.09%Loans and advances 27 120,758 110,837 0.07% 0.08%Trade deposits and short term prepayments 28 191,117 209,841 0.11% 0.15%Interest accrued 29 3,438,828 3,473,681 1.98% 2.48%Other receivables 30 24,153,103 19,750,254 13.94% 14.09%Taxation - net 31 1,429,149 2,306,105 0.82% 1.65%Cash and bank balances 32 1,509,341 1,084,933 0.87% 0.77%Total current assets 105,770,321 79,376,692 61.04% 56.63%

Total assets 173,285,454 140,162,616 100.00% 100.00%

VERTICAL ANALYSIS


SUI SOUTHREN GAS COMPANY LIMITED (SSGC)CONSOLIDATED PROFIT AND LOSS ACCOUNTFOR THE YEAR ENDED JUNE 30, 2012

Notes 2012 2011 2012 2011

Sales 153,317,539 126,403,168 Sales tax (19,400,497) (16,000,749)

133,917,042 110,402,419 100.00% 100.00%Gas development surcharge (2,970,598) 4,126,741 -2.22% 3.74%Net sales 130,946,444 114,529,160 97.78% 103.74%Cost of sales 33 (128,391,923) (112,284,333) -95.87% -101.70%Gross profit 2,554,521 2,244,827 1.91% 2.03%

Administrative and selling expenses 34 (4,044,707) (3,081,710) -3.02% -2.79%Other operating expenses 35 (1,717,963) (1,645,141) -1.28% -1.49%

(5,762,670) (4,726,851) -4.30% -4.28%(3,208,149) (2,482,024) -2.40% -2.25%

Other operating income 36 3,378,624 3,759,907 2.52% 3.41%

Operating profit 170,475 1,277,883 0.13% 1.16%

Other non-operating income 37 11,242,114 10,027,918 8.39% 9.08%

EBIT 11,412,589 11,305,801 8.52% 10.24%

Finance cost 38 (7,531,711) (5,786,122) -5.62% -5.24%

EBT 3,880,878 5,519,679 2.90% 5.00%

Taxation 39 (1,433,767) (795,287) -1.07% -0.72%

Profit for the year 2,447,111 4,724,392 1.83% 4.28%

VERTICAL ANALYSIS


SUI SOUTHREN GAS COMPANY LIMITED (SSGC)CONSOLIDATED CASH FLOW STATEMENTFOR THE YEAR ENDED JUNE 30, 2012

Notes 2012 2011

CASH FLOW FROM OPERATING ACTIVITEDSProfit before taxation 3,880,878 5,519,679 Adjustments for non cash and other items 14,136,354 10,341,375 Working Capital changes (4,779,570) 2,316,440 Financial charges paid (2,573,146) (2,424,650) Payments for retirements benefits (539,818) (277,466) Income taxes paid (657,856) (2,378,221)

Net cash generated from operating activities 9,466,842 13,097,157

CASH FLOW FROM INVESTING ACTIVITIESFixed capital expenditure (10,170,154) (10,340,198) Proceeds form sale of property, plant and equipment 14,082 6,723 Lease rental form net investment in finance lease 306,384 311,766 Long term deposit paid (231) - Dividend recerived 3,624 4,773

Net cash used in investing activities (9,846,295) (10,016,936)

CASH FLOW FROM FINANCING ACTIVITIESProceeds from long term financing 7,089,971 10,988,745 Rrepayments of long term financing (4,269,537) (8,944,375) Consumer finance received 82,991 121,909 Repayment of consumer finance (110,200) (107,692) Dividened paid (1,989,364) (954,165)

Net cash generated from financing activities 803,861 1,104,422 Net increase in cash and cash equivalents 424,408 4,184,643 Cash and cash equivalents at begninning of the year 1,084,933 (3,099,710) Cash and cash equivalents at end of the year 1,509,341 1,084,933

Rupees in "000"

Note: All Rupees in Thousands

Formula = Current assets / Current liabilities Formula = Current assets / Current liabilities

105,770,321 79,376,692 105,063,453 77,310,321

Current ratio is 1.0067 Current ratio is 1.0267Ratio is weaker than previous year.

Diffirence of Current assets 26,393,629 Increase in Current assets 33.25%Diffirence of Current liabilities 27,753,132 Increase in Current liabilities 35.90%

Formula = Current assets - inv. / Current liabilities Formula = Current assets - inv. / Current liabilities

102,702,004 102,630,417 105,063,453 77,310,321

Inv. = Stock + Store + work in progress Inv. = Stock + Store + work in progress(795,567+2,080,850+191,900) (702,720+2,262,564+174,620)

Acid test ratio is 0.9775 Acid test ratio is 1.3275Ratio is weaker than previous year.

Diffirence in Inventory (71,587) Decrease in Inventory -2.28%Diffirence of Current assets 26,393,629 Increase in Current assets 33.25%Diffirence of Current liabilities 27,753,132 Increase in Current liabilities 35.90%

Formula = Total debt / Shareholder equity Formula = Total debt / Shareholder equity

144,919,311 112,135,500 18,114,197 17,775,170

Shareholder equity = Paid. Cap.+Res.+profit+sur. On remeasur. Shareholder equity = Paid. Cap.+Res.+profit+sur. On remeasur.

(8,809,163+4,907,401+57,946+4,339,687) (8,389,679+3,107,401+68,610+6,209,480)

Debt to equity ratio is 8.0003 Debt to equity ratio is 6.3085Ratio is stronger than previous year.

Diffirence in Total debts 32,783,811 Increase in Total debts 29.24%Diffirence in Shareholder equity 339,027 Increase in shareholder equity 1.91%

Formula = Total debt / Total assets Formula = Total debt / Shareholder equity

144,919,311 112,135,500 173,285,454 140,162,616

Debt to total asset ratio is 0.8363 Debt to total asset ratio is 0.8000Ratio is stronger than previous year.

Diffirence in Total assets 33,122,838 Increase in Total assets 23.63%

Total assets Total assets

Shareholder equity Shareholder equity

DEBT TO TOTAL ASSETS RATIO OF 2012 DEBT TO TOTAL ASSETS RATIO OF 2011

Total debt Total debt

Current liabilities Current liabilities

FINANCIAL LEVERAGE RATIOSDEBT TO EQUITY RATIO OF 2012 DEBT TO EQUITY RATIO OF 2011

Total debt Total debt

Current liabilitiesCurrent assets

Current liabilities

QUICK / ASID TEST RATIO OF 2012 QUICK / ASID TEST RATIO OF 2011

Current assets - Inv. Current assets - Inv.

SUI SOUTHREN GAS COMPANY LIMITED (SSGC)ANALYZING AND INTERPRETATION OF RATIOS FOR THE YEAR 2012 & 2011

LIQUIDITY RATIOSCURRENT RATIO OF 2012 CURRENT RATIO OF 2011

Current assets

Formula = EBIT / Interest charges Formula = Total debt / Shareholder equity

11,412,589 11,305,801 7,531,711 5,786,122

Interest coverage ratio is 1.5153 Interest coverage ratio is 1.9540Ratio is below than previous year.

Diffirence in EBIT 106,788 Increase in EBIT 0.94%Diffirence in interest charges 1,745,589 Increase in interest charges 30.17%

Formula = Annual net credit sales / Receivables Formula = Annual net credit sales / Receivables

130,946,444 114,529,160 71,740,913 49,182,342

Receivable turnover ratio is 1.8253 Receivable turnover ratio is 2.3287

Diff. in Annual net credit sales 16,417,284 Increase in Annual net credit sales 14.33%Diffirence in Receivables 22,558,571 Increase in Receivables 45.87%

Formula = Days in year / Receivable turnover Formula = Days in year / Receivable turnover

365 365 1.8253 2.3287

Receivable turnover in days 200 Receivable turnover in days 157SSGC have to improve the avg. collection period

Formula = Annual net credit purchases / Payables Formula = Annual net credit purchases / Payables

117,818,414 102,889,971 85,639,076 62,215,241

Ann. net credit purc. = Natural gas + Liquified petrolium Ann. net credit purc. = Natural gas + Liquified petrolium(117,763,432+54,982) (102,889,971+0)

Payable turnover ratio is 1.3758 Payable turnover ratio is 1.6538

Diff. in Annual net credit purch. 14,928,443 Increase in Annual net credit purchase 14.51%Diffirence in Payables 23,423,835 Increase in Payable 37.65%

Formula = Days in year / payable turnover Formula = Days in year / payable turnover

365 365 1.3758 1.6538

Receivable turnover in days 265 Receivable turnover in days 221SSGC have to improve the avg. payable period

Days in year Days in yearPayable turnover Payable turnover

Annual net credit purc. Annual net credit purc.Payables Payables

PAYABLE TURNOVER IN DAYS OF 2012 PAYABLE TURNOVER IN DAYS OF 2011

Days in year Days in yearReceivable turnover Receivable turnover

PAYABLE TURNOVER RATIOS OF 2012 PAYABLE TURNOVER RATIOS OF 2011

Receivables Receivables

COVERAGE RATIOS

ACTIVITY RATIOS

RECEIVABLE TURNOVER IN DAYS OF 2012 RECEIVABLE TURNOVER IN DAYS OF 2011

Interest charges Interest charges

RECEIVABLE TURNOVER RATIOS OF 2012 RECEIVABLE TURNOVER RATIOS OF 2011

Annual net credit sales Annual net credit sales

INTEREST COVERAGE RATIOS OF 2012 INTEREST COVERAGE RATIOS OF 2011

EBIT EBIT

Formula = COGS / Inventory Formula = COGS / Inventory

128,391,923 112,284,333 3,068,317 3,139,904

Inventory turnover ratio is 41.8444 Inventory turnover ratio is 35.7604Ratio is stronger than previous year.

Diffirence in COGS 16,107,590 Increase in COGS 14.35%Diffirence in Inventory (71,587) Decrease in inventory -2.28%

Formula = Net sales / Total assets Formula = Net sales / Total assets

130,946,444 114,529,160 173,285,454 140,162,616

Total asset turnover ratio is 0.7557 Total asset turnover ratio is 0.8171Ratio is weaker than previous year.

Diffirence in Net sales 16,417,284 Increase in Net sales 14.33%Diffirence in Total assets 33,122,838 Increase in Total assets 23.63%

Formula = Gross profit / Net sales Formula = Gross profit / Net sales

2,554,521 2,244,827 130,946,444 114,529,160

Gross profit margin ratio is 0.0195 Gross profit margin ratio is 0.0196SSGC has weak gross profit margin

Diffirence in Gross profit 309,694 Increase in gross profit 13.80%Diffirence in Net sales 16,417,284 Increase in Net sales 14.33%

Formula = Net profit after tax / Net sales Formula = Gross profit / Net sales

2,447,111 4,724,392 130,946,444 114,529,160

Net profit margin ratio is 0.0187 Net profit margin ratio is 0.0413SSGC has poor Net profit margin

Diffirence in Net profit after tax (2,277,281) Decrease in Net profit after tax -48.20%Diffirence in Net sales 16,417,284 Increase in Net sales 14.33%

Net profit after tax Net profit after taxNet sales Net sales

Gross profit Gross profitNet sales Net sales

NET PROFIT MARGIN RATIOS OF 2012 NET PROFIT MARGIN RATIOS OF 2011

Net sales Net salesTotal assets Total assets

PROFITABILITY RATIOSGROSS PROFIT MARGIN RATIOS OF 2012 GROSS PROFIT MARGIN RATIOS OF 2011

COGS COGSInventory Inventory

TOTAL ASSET TURNOVER RATIOS 2012 TOTAL ASSET TURNOVER RATIOS 2011

INVENTORY TURNOVER RATIOS 2012 INVENTORY TURNOVER RATIOS 2011

i) Liquidity ratios: a) Current Ratiob) Acid test Ratio

a) Current Ratio:

b) Acid test Ratio

ii) Financial Leverage Ratios:a) Debt to Equity Ratiob) Debt to Total Assets Ratio

a) Debt to Equity Ratio:

b) Debt to Total Assets Ratio:

iii) Coverage Ratio:

a) Interest Coverage:

INTERPRETATION OF THE RATIOS

With reference to provided comparison it’s to observe that the current assets ratio (SSGC) year of 2012 isincreased 33.25% as compare to the previous year i.e. (2011) same as also observed that current liability ratio(SSGC) year of 2012 is increased 35.89% as compare to the previous year liabilities. Consequently the ratio ofcurrent year (2012) is weaker to the previous year (2011).

After the comparison we observed that (2012) year inventory is decreased 2.27% but the other side currentassets are increased 33.25% and on the liability side 35.89% are also increased as compare to the previousyear liabilities. So therefore due to increase current liabilities and decreasing inventories this is a weak testratio as compare to previous year (2011). But It is not a potential problem for the firm as both ratios are onpositive side.

As the calculation and comparison of both year ratios we observed that Total Debt of (2012) is increased29.23% as compared to previous year (2011) which is not good for running the business and on the other sidein the current year (2012) equity are also increase 1.9% which is small percent if we compare to the increasingthe percentage of debt equity ratio. Therefore current year is weak to previous year (2011).

After the calculations and comparison of both years ratio we observed that about the total debt which we havediscussed on the debt to equity ratio same percentage is increased here but on the other side total assets arealso increased 23.63 % so therefore the ratio is average debt utilization relative to the comparison of previousyear (2011) because there is big impact in the percentage of 2012.

We observed that after the calculations and comparison of both years interest converge ratios the year of(2012) Earnings Before Interest and Taxes is increased 0.94% as compare to the previous year (2011) which isnot a big impact but on the other side interest charges of year (2012) are increased 30.16% to previous yearwhich is not a good so therefore the current year (2012) is not good to compare of previous year(2011)because Interest Coverage Ratio is indicates a firm’s ability to cover interest charges and the current year(2012) ratio is going downward.

iv) Activity Ratio:a) Receivable Turn Over Ratiob) Receivable Turnover in Daysc) Payable Turnover Ratiosd) Payable Turnover In Dayse) Inventory Turn Over Ratiof) Total Assets Turn Over Ratio

a) Receivable Turn Over Ratio:

b) Receivable Turnover in Days:

c) Payable Turnover Ratios:

d) Payable Turnover In Days

e) Inventory Turn Over Ratio:

f) Total Assets Turn Over Ratio:

v) Profitability Ratio:a) Gross Profit Marginb) Net Profit Margin

a) Gross Profit Margin:

b) Net Profit Margin

With respect to the provided calculation it is stated that in the current year (2012) Gross Profit is increased13.79% and Net Sales is increased 14% so that’s why Gross Profit Margin ratio of (2012) percentage is goingto decreased side which is not a good and current year ratio (2012) has a weak Gross Profit Margin tocomparison of the previous year (2011).

With respect to the provided calculation it is stated that Net Profit Margin is decreased as compare to previousyear (2011) due to increase in expenses and other taxes which is the current year (2012) has a poor Net ProfitMargin.

Receivable Turnover Ratio the Year of (2012) is going downward which is not a good for business due toincreasing the Annual Net Credit Sales of year (2012).

Receivable Turnover Ratio in Days of Year (2012) is going upward in term of Days which is not a good forbusiness due to decreasing of Receivable Turnover Ratio in year (2012).

We observed that after calculations and comparison Payable Turnover Ratio (2012) Percentage is decreasingdue to increasing the payables ratio of (2012) 37.64% as compare to the previous year (2011) which is goodin the term of business.

After the calculation and comparisons we observed that in the year of (2011) the company (SSGC) was paying

1.65 payable turnover ratios in days to the whole year but in the next year (2012) they was paying their dues in

1.37% which is small percent to the previous year so therefore at the end of comparison payable turnover ratio

in days of (2012) is increased to the previous year (2011) which is good in term of business.

With reference to provided the calculations it is stated that inventory Turnover of SSGC is increased due toincrease 14.34% in COGS & decreasing 2.27% in Inventory so this year (2012) which shows SSGC haveefficient Management and more stock are frequently sold

with refrence to provided calculations it is stated that Total Assets Turnover of (2012) of SSGC is decreaseddue to increase in total assets, which shows that they are not effectively utilizing there assets to generate theresales as compare to previous year. Therefore the current year (2012) Total Assets Turnover Ratio has a weakratio.

Ssgc final report (29 04-2014)

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