Z & J Hygienic (Pvt) Ltd.

Shahrah Wakeel Khan, G. T. Road, Kamoke, Pakistan

Internship Report

(2010)

Internship Report

Master Business Administration Program

Name: Inaam ullah

Specialization: Finance

Telephone: 0300-2812010

E-Mail: anaam.ullah@yahoo.com

Starting Date of Internship: 25.05.2010

Ending Date of Internship: 25.07.2010

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Dedication

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 All the praise is for Allah the most merciful and beneficent Allah is the one who gave me

knowledge the courage and allowed me to complete this task under very stress condition. I am

very thank full to all my encouragers especially indebted to all my teachers of previous classes and

in Recent class of MBA who make me able to carry my work efficiently during my internship. I

would like to dedicate my whole work to my master and creator ALLAH almighty who give me

strength to complete this task and after that I would like to dedicate my work to my mother whos

prayers for me is most important assets for me in this world and in the end I want to thank all my

friend s and company staff specially. Mr. Qasim who help me in this work he is one of some nice

persons I have ever met.

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 Acknowledgement

In preparation of this report I am very thank full to my boss Mr. Qasim my friends and specially
Mr. Farooq Ahmed who help me in concept development and clearness. my friend Mr Shahzad
Hussain and all staff of finance department at Z & J hygienic (Pvt) Ltd. In this new assignment
I am very thankful to Mr. Kamran Khan (charted accountant) auditor of EFSL rice plant and
project.

Mr. Irfan Qadir Saqi form I.T department who provide my internet facility to complete my
internship.

Executive summary

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This report is about Z & J hygienic (Put) Limited a local Pakistani company running by master
group of industries company produce baby dippers and sentry napkins form in 2002.main
competitors are pampers and always ultra and some importers some small size producer are also
compete company in their local area. Company have head office at plant. Other head offices are
at Karachi Lahore and Faisalabad Company import raw material from Belgium and Germany
and produce quality. product company is challenger of pampers and Always. As it is new so did
not have proper departments but some are going well like finance and account.

HRM etc. company did not use any special software for finance and accounts department and do
all work on excel.

But maintain all books of accounts cost accounting department is almost nil .finance manager
also act as admin officer. The main role of finance department is to coordinate with all
departments and manage all cash receipt and payment. We can say that at its initial stage finance
as company is engaged in growth finance department is playing most important role.

Like arranging all resores for expansion of plant , purchasing or hiring machinery receipt and
payment payroll dealing foreign customers and suppliers.

Finance department also responsible of all dealing with customers , banks , leasing companies
and suppliers.etc.

Company is very strict about its privacy and did not allow any one leak information about any
financial and employees. Company ratios vary tremendsely which clearly show that it is in initial
stage no market information is available about market share price and no website .company did
not work on competitors’ and also not conduct SWOT analysis

All ratios show clear improvement year by year.

Sath culture is common and company operate on one man show base.

As it is Pvt. Ltd. Company so market information is not available so all analysis is done form
Engro Corporation.

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On the other hand Engro Corporation is one of the most powerful group of companies of
Pakistan running manufacturing units.

Engro shows day by day positive growth Engro not only adding more and more units but also
increasing production capacity.

But debt ratio shows 70% which is very high and company is highly leveraged.

Recently company adds world largest Urea Plant finance much on lone.

In inventory management company shows positive trend because current ratio is coming low
year by year.

Table of contents

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Sr.# Particular Page #

1 Brief introduction of the organization’s business sector 9

2 Over View of Organization 10

3 Plan of your internship program 16

4 Training program 17

5 Structure of the Finance Department 21

6 Ratio analysis 35

7 Horizontal analysis 86

8 Vertical Analysis 90

9 Comparison 95

11 Trend analysis. 97

12 Future prospectus of organization. 107

12 Conclusion 108

13 Recommendation 109

14 SWOT analysis 110

References 115

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 Brief introduction of the organization’s business sector .
Imports based Manufacture sector is a sector which is engaged in production of good using
some imported inputs as raw material and changing it into some kind of useful output. Main
source of cost in this type of industry is raw material cost.

Organization is belonging to import based manufacture sector and this sector play very vital role
in the progress of any country. It the main source of job creation in country and increase the
living standard of peoples in country. Unfortunately this sector is facing great problems in
Pakistan due to many reasons like shortage of energy, poor quality of labor , corruption, law and
order situation and unexpected government policies. import based Manufacturing industry is
divided into three main groups.

Consumer goods face some type of problem because public in Pakistan still think some type of
goods that it is unnecessary for them and firms are bond to spend huge amount on advertisement
to give the message of there importance.

1. Small size industry

2. Medium size industry

3. Large size industry

Small size industry

Small size industry normally operate at home or muhlla level. In a small manufacturing firm
need less capital and less worker and play very important role in country development

Medium size industry

Medium size firm are large then small size firms but small than large firms.

Medium size industry later change into large scale industry and later on become group of
company because it is difficult to start a large scale industry initially.

Large size industry

Large size industries are back bone of any country’s economy huge capital and large number of
workers is engaged in large size industry.

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 . Brief history .
Master group of industry is a well know group of industry at medium level in Pakistan

Previously it is engaged in manufacturing to tiles and ball point in Gujranwala Area.

It was the time when they were thinking to build and new manufacturing unit. And in the end it
was decided to build a manufacturing unit who produce baby dippers and ladies napkins.

Demand of both these things was high in market with the passage of time.

A separate plant in the name of was establish Z & J Pvt. Ltd. in 1999. But a separate legal entity
was established in February 28, 2002. Master group of industries already dealing in sentry
fitting and ballpoint pen manufacturing in Pakistan with the aim of providing high quality
products to customers looking for value. As the owners/top management of the company carries
a long history of experience in different industries products, the management decided to provide
a consumer product, which was not previously being manufactured by them. Therefore, Z&J is
proud to be the first Pakistani company to pioneer in Baby Diaper manufacturing. Z&J is also
manufacturing sentry fittings.

Organization hierarchy chart.

C E O and Chairman

Director 1 Director 2 Director 3 Director 4

Manager finance Manager Marketing Manager HR Manager Admin
assistant manager assistant Assistant manager
assistant Manager finance marketing/ Sale manager HR Admin.

Finance officer 1 territory sale office 1 Admin officer

Finance officer 2 territory sale office 2 Admin officer

Finance officer 3 territory sale office 3 Admin officer

Finance officer 4 territory sale office 4 Admin officer

Business volume

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Authorized capital

The authorized capital 100, 000, 00 Rs 10 each. 100,000,000

Subscribed capital or paid up capital. Up to 2009.

And 200,000,00 shares Rs 10 each. 200,0000,00

Bond.

Company is Pvt. Ltd. Company and did not register into Stock exchange so it raised lone form
Different financial institutes. Company did not issue any bond in public market.

Future contracts .

Company is planning to increase its production capacity which is very low at this time and for
this purpose negotiation is going with many financial institutes to provide lone. And company is
also thinking to issue new shares to its members.

In near future company is looking to increase its sale volume by increasing its production.

And searching new dealers in different parts of country and in long run targeting to export its
products to middle east.

Product lines
At this stage producing three type of goods.

• Baby dippers.( Baby master)

• Sentry napkins.( Lady care)
• Tissue paper.

Baby diapers

This product is produced into three sizes

• Small
• Medium
• Large
• Extra large

Small.

Small size is produced for children less than one year. Packing is 20 pieces in one packet.

Medium

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Medium size is produced for 1 year to 2 year but the same quality. Packing is 18 pieces in one packet

Large

Large size is produced for more than 2 year packing is 16 piece in one packet.

Extra large.

It is the largest size produce by company and packing is 14 piece in one packet.

Ladies napkins

This product is also produce in different sizes which match with different age group.

Tissue paper

This product it produce in box and roll form.

After sale services.

As it is consumer good so after sale service and warranty or guaranty is not provided but company pay
special attention towards its dealers and provide them good incentives.

Competitors.

Two main competitors of company is

Pampers

Is a multination company and it is a brand of baby products marketed by

Procter & Gamble.

It is the largest dealer of baby dippers in Pakistan also the leader in this form of product. And we
can say that it is the main competitor and company is targeting it.

Pampers were introduced in 1961. And operating in Pakistan for many years.

Happy nappy

It is a Canadian company who is also selling its product in Pakistan .

Due to multinational status it is also difficult competitor and we can say that it is the second one
to whom company compete.

Company is trying to take the share of this company.

Local competitors

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beside these large manufacture some local compotator are also in field who are giving tough time
to company.

Not much information is available about these firms but some are as under.

Dryfer.

It is a product manufacturing by Beadun (Pvt.) Limited.

Diapy.

It is another local competitor of Z & J Hygienic (Pvt.) Ltd and it is running by Pain industries.

Kohinoor textile mills .

who is operating in two cities Karachi and Rawalpindi also producing baby dipper brand name
is not available.

Competitor in sentry napkins.

Always ultra.

It is leading brand in Pakistan and firm is challenging it.

(Unfortunately information about these companies is not available on any forum like internet
and boss is also not giving much information these companies)

Butterfly.

Produce by santex products.

Napkin plus.

This product is produce by Cure hygienic group and is one of the famous product in
Pakistan.

Ultra thin.

This is also produce by cure hygienic group but brand name is different

Some local competitor are as under

Product name . producer.

Niva Female Napkins hyeworth pakistan

Introduction of all the departments .

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this firm is not very old and so have not proper departments but some department are working
properly

like .

 Finance and accounting.

Finance and accounting department is well establish and we can say the most establish
department in this organization the finance department manager also act as senior manager in
organization finance manager also check the account department. Make all decision about
purchase and also mange the cash for payment deal with bank and customers. In Finance and
accounts departments total 16 people are working including finance and accounts mangers

 Human resource department.

Human resource department is also very well establish Manager of HRM deals with selection
and training and also look the promotion and pay increase decision.

In Human Resource department there are 5 people are working including Manager and officers.

 Production department

Production department is also very well establish and producing export quality of goods .
workers are very dedicating and pay is high also provide health environment to workers due to
these condition low rate of turnover is observable. In production department there are 350 plus
men are working including all supervisor and managers the number on employees change with
the season like more in summer and less in winter..

 Mechanical & maintains.

It is also very establish department who not only look after the plant but also company’s vichles
and building the workers or unique in their jobs and are really impressing in there working. in
mechanical and maintains department 10 men are working including manager and in charge .

 Sale & Marketing.

This department operate form head office and increasing its ability day by day. In sale and
marketing total number of employees are 20 which does not sit in plant but operate at head
office.

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  Security department.

Very well establish and keep eye not only outsiders but also on employees and union activities.
In security department there are 10 people are working including time office staff and manager.
Main offices.

WAKIL KHAN ROAD, LINK G. T. ROAD, KAMOKE, DISTRICT GUJRANWALA.

Other main offices are at

• Karachi,
• Lahore
• and Faisalabad.

Comments on the organizational structure.

In my opinion the organization structure is not full fill all departments requirements because the
firm is new but they and slowly increasing their capacity of production and as production
capsity increases the proper departmization form in organization with it forming proper
departments also. Company is between sath culture and advance culture some time when
advance culture look prominent and some time old Sath culture look prominent. and when
advance culture look prominent all decision is made on merit and when sath culture is prominent
decision is made on owner’s will. In company all manager at present work directly reporting to
chairman who is CEO also. Personal liking and disliking is very common in firm because it is
Pvt. Ltd. company and did not register in stock exchange. All main posts are full fill by less
educated people but they all have vast experience in this field. More then half staff has come
form old units.

In the end we can say that organization structure is not very much excellent and company is
making progress slowly due to this reason main source of its success is experience by owner and
their reputation in business.

Plan of your internship program

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I do my internship at Wakeel Khan road near kamoke. At this site company’s main plant. the
plant is not very big but the area covered is very high. It is about 1 km form main G T Road. All
offices are also there like finance HRM , IT, Production, security etc are also situated in main
plant. But I do my internship in finance as well as production and also spent some time in other
department as well.

. Starting date of internship

25 May 2010

Ending date of internship

25 July 2010.

Internship timing was 9am to 2 Pm

I did my internship in many departments

Accounting and finance .

The main department where I spent my more time was account and finance more then 75% time
I spent in this department .because it is my area of specialization. And another reason of this was.
That it is well establish in organization .

Sale and delivery.

After this I spent some time in sale and delivery it is also quit establish department and also
relate to account and finance because all invoice are issued from here to customer.

Production.

Production is also very establish department but not my concern we visit 4 to 5 time this
department to learn the working of machinery and machinery cost and depreciation rules.

Other department where I visit and spend some time are.

• HRM
• Security
• Mechanical and maintenance.
• Warehouse or store. etc

Training program

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I start my internship from 25 may in account and finance department first couple of days spend
in hesitation and introduction but later it become friendly environment. Because all boys working
there are young and most of them were B com.

Except manager and assistant manager.

Accounting and finance .

Accounting department

It is the first department where I stat my internship and also spend most of the time of internship
company is using simple excel to prepare accounts and no proper accounting soft ware is install.
All transaction are back up by voucher and these vouchers are main source of information for
these departments. Company complete its account cycle . for example filling the voucher .

Daily expense payment is also on the shoulder of this department and all bills first sign by CEO
and then the account department pay all these bills.

This department only mange financial accounting and no proper cost accounting department is in
the firm.

Task.
My task in this department was.

Passing general entry

Posting it to relevant leader

Preparing the trial balance

Preparing profit and loss account and balance sheet

I complete all these tasks

Start from numbering the vouchers and also learn to fill and voucher of receipt and payment
and in the first week I just learn this thing and after this general entry and posting and prepare
trial balance which is incorrect but it not there official trial balance and they give me just a task
to prepare it. After much effort I become able to correct it and after this they ask me to prepare a
trial profit and loss account which is again very difficult task for me the completion of this cycle
take my two weeks and after this I become able to complete this task. In this task some friends
who are only B COM help me lot due to their experience. It gives a very good base of practical
life and also a lot of confidence. And this task was done by two time in whole my internship.

Finance.

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All bank dealing is on this department shoulder in this department I learned different bank
cheques dealing. Cross cheque is the general mode of payment. Althoug finance department also
arrange finance for all activities in plant they said that it is secrot of business and they can not
tell me about the exict working but they do me the task of simple nature. The finance department
also not using proper finance software and made all calculation in simple excel format at initial
stage excel is managing all record very accurately and simply.

Task.

In finance department I learn cash budgeting and receipt and payment of cash also some dealing
with bank and some customers about this department company’s rules are very strict because it
contain there secrete information and I am not allowed to check computer but Mr. Qasim is
really nice man who just give me some old record and ask me to compute me some basic finance
calculation like

Present value.

Calculation of present value was not very much tough in nature but the forecast future cash flow
was very tough in nature. But in the end my calculation was it is not much easy as we see in out
books. I calculate PV in excel and answer was accurate after a long time.

IRR.

After calculation of PV IRR was simple to calculate because of Excel . I only change the
arrangement of cell and the answer come.

Cash budgeting .

Cash budgeting was not much difficult task because firm is not very much big and cash
management is easy to handle.

In cash management we mange cash for daily expenses and asked different banks about cash
situation at the end of day. All process normally settle on phone but some time manger go to
bank for detailed checking.

It is very difficult of calculate these entire thing is practical. Even I can’t understand some of its
values but it is again very good experience .

Selling or delivery.

This department does not fully deal with my internship but invoice is make to customer and then
inform account department for the recovery of amount.

So I just spent some time in it to learn the invoice procedure and informing to account
department.

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Task.
In selling or delivery department I just only learn the
Order receiving procedure
This procedure is very simple original order is received at head office and after that they tell delivery
department on phone.
counting the total bags making the
it is again very easy task to count the total number of bags for delivery but it is great responsibility.

dispatch note

it is some writing work normally a dispatch note is contain following information

name of receiver ,location ,date , quantity of order , size of item

And signature.

checking the vehicles meters

it is very simple thing to do is to check the vehicle meter and write it into book0

Human resource department.

Normally this department deals with all requirement process and after this pay decision training
and negotiation with union. Job creation and job description etc.

But here in this organization all these things were almost nil. All decision about requirement are
made by CEO and the people in this department are engaged in checking attendance and making
payroll sheet.

Payment to worker are different for permanent and temporary employees.

Temporary employees.

In case of temporary employees all absent made by them are deduct form their pay.

Permanent employees.

15 holidays except gusted are allowed to permanent employees.

Task.
In this department my task was to update the attendance sheet in excel and after that in the end of
month excel automatically multiply all days with rate per day. and thus total amount come which
is payable by company to its employees.

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Warehouse / store.

There are two warehouse at plant technical and finished goods warehouse.

I visit both.

Task.

In technical warehouse my task was to received some material and matching with delivery
challan and putting them all material into its place in racks.

And in next stage issuing some material to person by verifying the authority signature.

It is quite easy task and I understand it in short time.

In finish goods warehouse my task was again very easy to received finished goods form
production department and count them and again count them at the time of dispatch to customer.

Just use excel to record cost accounting and Store is also not using any inventory card such as
FIFO LIFO Average inventory card.

production

in my last days I visit the production department to just learn the plant specification and
production procedure and gossip with plant supervisors and employees. Company is using the
imported plant and company is using its full capacity but with the passage of time plant did not
full sport all sale order and now company is thinking to introduce a new plant to sport all sale
order. Workers are happy and company is paying very good remuneration so workers are well
train and supervisors are cooperative to workers .company so far has been able to convince
employees to share companies goal as their own. In production department again excel was main
software and office work in production was just data entry into excel of Finnish goods.

All other department just visit and did not do anything in them like security , maintenance etc.

Note ( All this material was in old format but in new internship format it is not. I am not
deleting it because I did not know that weather it is important or not for new internship
report.)

Structure of the Finance Department

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Departmental hierarchy

 Finance department is manager by finance Manager

 Followed by and assistant finance manager

 And there are two finance officers

 And in the lower level there are two finance assistants

number of employees working in the finance department

Total 15

numbers of employees are working in finance and accounts department.

Out of 15 6 are working in finance department.

Finance & accounting operations.

Preparation of accounts books and conducting the audit of these books and tacking decision is
the main investment and arranging the capital is the main operations of finance and accounts
departments. Company did not use any special software of both these departments just using
excel to record and analysis the record.

. Functions of the Finance Department.

Accounting system of the organization.

Accounting system of organization is also well establish and maintaining and internal and
external auditing is included in the duties of this department. Total 9 people are working in this
department under the supervision of accounts manager this department is also responsible of cost
accounting but cost accounting is not very well establish in organization at initial level.
Company prepare its books of accounts under the company ordinance of 1984 and some
international standers are also applicable in accounting department. A. company prepare its
account in accordance with approved accounting standards applicable in Pakistan and also follow
international financial reporting standards (IFRSs).

Finance system of the organization

Finance department is quit establish in organization and working properly the main work of it is
to make accounts of company and arrange the necessary recourses for the operation of firm
dealing with the banks and leasing firms is also include in his duties and make all its record in

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computerized format and in the end of financial year hiring the auditor is also include in his duty.
Finance depart main objectives are

 Budgeting .

 Dealing with income tax department.

 Coordination with other departments.

 Dealing with banks and leasing firms.

 Make all inventory and store management.

Budgeting.

Make all budgeting decision like sale budgeting , workers bounces and rumination and cash
budgeting in all these budgeting cash budgeting is most important function perform by finance
department. This department also responsible of all receipt and payment of cash at time.

Dealing with income tax department.

Income tax is very critical in business sector finance department is also responsible of dealing
with this department and also responsible of filling of return and hiring of lawyer in any case
with department.

Coordination with other departments.

Also coordinate with all other department of company. we can say that finance department
supervise all other departments.

Dealing with banks and leasing firms.

Dealing with banks and leasing firms is also include in the duties of finance department.

Managing the in time cash and assets for proper production is also done by this department.

Make all inventory and store management.

Store and inventory management is also include in the duties of finance department.

Use of electronic data in decision making

c. company use electronic data in decision making because company prepare all its record in
entropic form as in excel format company is using ratio analysis and other type of analysis in
decision making finance department also use excel form its all type of calculation.

Sources of funds

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Main source of funds is

 Sale.

Sale is the main source of fund for organization.

 Director lone.

Director lone is other main source of funds for company directors are investing very high amount
in company.

 short term bank loan.

In short run short term running finance is hire form different banks as NIB MCB Allied Bank
etc

In long run director loan.

 Issuance of capital.

In long run company depend on issuance of share capital for generation. Form 2002 company is
almost issue half of its authorized share capital.

e. Allocation of funds.

Company allocate its funds mainly into,

 Purchase Import material.

It is the main source of allocation of company’s funds company import all its raw material from
Belgium and Germany and in very large quantity and so it is the main concern for management
to allocate proper and timely necessary amount for this operation.

 Operation expenses

Operating expenses are those expenses which are necessary for the operation of company. It
includes salary and wages day to day expenses and all activities which are necessary for
operation of company.

 Financial charges

Financial charger are all those charges which a company pay on amount borrow to run its
business it is also include in the list of source to whom company allocate its resource .The firm
under also keep some part of its funds to pay financial charges.

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Note 3. ( because Z & J hygienic Pvt.Ltd is a private limited company so market
information was not available. So I asked instructor to give me permission of doing analysis
of Engor corporation and in his E mail he give me permission to do the analysis of that
company. So I am doing all analysis of Engro corporation. Following is the link of
financial reports downloading)

Although I have provide link but I am also pasting pages for your convinces.

http://www.engro.com/investors/financial-reporting/engro-corporation-limited/annual-
financial-reports/

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 12-Critical analysis
I ) Ratio Analysis

Ratio analysis is the measurement of company financial health by using its current financial
statements.

Ratio analysis is very help full for investors how want to invest in a particular firm especially
when compare year by year.

a) Liquidity Ratios

Liquidity ratios measure a firm’s ability to meet its current obligations.

These include:

• Current Ratio

• Acid Test Ratio

• Sales to Working Capital

• Working capital

Calculation:

1-CURRENT RATIO
Current ratio shows the company strength to pay back its short term obligation by using
its short term assets. We can say that current ratio shows the liquidity of firm.

The higher the ratio the higher the confidence to investors and financial institutes which
give the lone to company.

Ratio less then 1 is normally unfavorable. But does not mean that company is going to
bankrupt. Company shows that its current ratio is becoming efficient year by year which mean
that company is improving in current assets management.

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 Note (all amount while calculation of ratio
analysis are in thousands except where it is write in
full amount.)

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CURRENT RATIO

YEARS

2009CURRE
NAT
ASSETSCURR 10748871 6395469
ENAT
LIBILITIES

2008 15323158 5999353

2007 16397198 5264674

CALC
ULATI
ON
YEARS

FormulaWO
current assets/ current
RKINGANS
liabilities
WER
1
.
2009 10748871 6395469
6
8

2008 15323158 5999353 2.55

2007 16397198 5264674 3.11

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ACID TEST RATIO

Acid test ratio shows the company ability to pay its short term loan immediately

In acid test we minus inventory and short prepaid income from current assets and
remaining amount is compare with short term liabilities.

1:1 ratio is favorable.

Company’s acid test ratio also show that company is also improving in this

Acid Test Ratio

DATA Working
current assets-
YEAR CURRENAT (inventry+prepayments+d
Quick assets eferred employee
S LIBILITIES
compensation funds.)
10748871-
(422607+87278+1469155
2009 8,769,831.00 6,395,469.00 )
15323158-
(4680896+93213+189912
2008 8,649,925.00 5,999,353.00 4
16397198-
2007 12,817,424.00 5,264,674.00 (2690153+889621)

CALCULATION
YEARS WORKING ANSWER
Formul Quick assets/ current
a liabilities

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 6,39
2009 8,769,831.00 5,469.00 1.37
5,99
2008 8,649,925.00 9,353.00 1.44

Working Capital Ratio

working capital ratio show the liquidation of a firm or we can say that how mush amount
remaining in the hand of a company after paying all its short term loans.

Company show huge amount pledge in current assets in past but with passing year it become
excellent . and In year 2009 company is still quite liquid.
Working capital Ratio

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DATA
CURRENAT Rough
YEARS CURRENAT ASSETS
LIBILITIES Working
10748871-
2009 10,748,871.00 6,395,469.00 6395469
15323158-
2008 15,323,158.00 5,999,353.00 5999353
16397198-
2007 16,397,198.00 5,264,674.00 5264674

CALCULATION
YEARS WORKING ANSWER
Formula current assets- current liabilities
2009 10,748,871 6,395,469 4,353,402

2008 15,323,158 5,999,353 9,323,805

2007 16,397,198 5,264,674 11,132,524

Sale to working capital ratio.

This ratio shows how much amount a company need to finance al certain level of sale because
there are two items in working capital who effect the sale

Account receivable

Inventory

If company want to increase its sale in future it should increase it inventory and A/R as well
which affect the working capital also . company is also good in this field.

Sale to Working Capital Ratio

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DATA
Rough
YEARS working capital Sale
Working
10748871-
2009 4353402 30171520 6395469

15323158-
2008 9323805 23317198 5999353

16397198-
2007 11132524 23183222 5264674

CALCULATION
YEARS WORKING ANSWER
Formula Working capital / Sale
2009 4353402 30171520 0.14

2008 9323805 23317198 0.40

2007 11132524 23183222 0.48

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Leverage Ratios

Leverage ratios measure the degree of protection of

These include:

• Time Interest Earned

• Fixed Charge Coverage

• Debt Ratio

• Debt / Equity Ratio

• Debt to Tangible Net worth Ratio

• Current Worth / Net worth Ratio

• Total Capitalization Ratio

• Fixed Asset Ratio / Equity Ratio

• Long term Assets versus Long term Debt

Calculations

• Time Interest Earned

Times Interest Earned ratio indicates the ability of firm to pay its
interest expense. In out calculation company’s ability to pays it interest is decreasing year by
year which mean company is more risky with the passage of time.

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44
Time interest earned ratio

DATA

YEARS EBIT Interest expense Rough Working

EBT+ interest
cost
6,535,5 1,320,579.0 5214946+132057
2009 25.0 0 9
6,713,5 1,508,948.0 5204574+150894
2008 22.0 0 8
4,770,5 535,023.0
2007 35.0 0 4235512+535023

CALCULATION
YEARS WORKING ANSWER
Formul
EBIT/ Interest Expense
a
6,535,52 1,320,57
2009 5 9 5

6,713,52 1,508,94
2008 2 8 4

4,770,53 535,0
2007 5 23 9

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45
Fixed Charge Coverage Ratio
Due to non availability of leas payment this ratio cannot be
entertaine.

• Debt Ratio

Debt ratio shows the amount of total assets which are financed form debt. High the ratio
high the leverage the firm is in our case the company increasing its debt obligation with time and
company in 2009 is very highly leverage.

Debt ratio

DATA
YEAR
TOTAL DEBT TOTAL ASSETS Rough Working
S
total assets or total liabilities- total
equity

2009 66,821,200.0 93,709,438.00 93709438-26888238

2008 36,111,133.0 57,164,739.00 57164739-21053606

2007 22,674,734.0 38,415,385.00 38415385-15740651

CALCULATION
YEAR ANSWE
WORKING
S R

Page
46
Formul
Total debt / total assets
a
66,821,2 93,709,4
2009 00 38 71.31%

36,111,1 57,164,7
2008 33 39 63.17%

22,674,7 38,415,3
2007 34 85 59.03%

Equity Ratio
Equity Ratio is a financial ratio representing the relative
proportion of equity to all used to finance a company's assets. it shows the portion of assets
which are financed by equity in our case company increasing its assets by financing them form
lone and decreasing equity portion to finance its assets.

Equity ratio

DATA

YEARS TOTAL equity TOTAL ASSETS Rough Working

total equity
26,888,2 93,709,438.0
2009 38.0 0 26,888,238.0
21,053,6 57,164,739.0
2008 06.0 0 21,053,606.0
15,740,6 38,415,385.0
2007 51.0 0 15,740,651.0

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CALCULATION
YEARS WORKING ANSWER
Formul
Total Equity / total assets
a
26,888,23 93,709,4
2009 8 38 28.69%

21,053,60 57,164,7
2008 6 39 36.83%

15,740,65 38,415,3
2007 1 85 40.97%

Debt Equity Ratio

Dividing by total liabilities by equity we get debt to equity ratio.
High debt to equity ratio show that company is more aggressive to finance its assets form lone
and in our calculation it is clear that out target company debt to equity ratio is increasing with
time and is more aggressive toward debt.

Debt to Equity ratio

DATA

YEARS Total Debt Total Equity Rough Working

total equity
26,8
2009 66,821,200.0 88,238.00 26,888,238.0
21,0
2008 36,111,133.0 53,606.00 21,053,606.0
15,7
2007 22,674,734.0 40,651.00 15,740,651.0

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CALCULATION
YEARS WORKING ANSWER
Formula Total debt /Total Equity
66,821,
2009 200 26,888,238 2.49

36,111,
2008 133 21,053,606 1.72

22,674,
2007 734 15,740,651 1.44

Another way of calculation

of Debt to Equity Ratio is

Debt to Equity ratio

DATA
Equity
YEARS Debt Ratio Rough Working
Ratio
total equity
26,8
2009 66,821,200.0 88,238.00 26,888,238.0
21,0
2008 36,111,133.0 53,606.00 21,053,606.0
15,7
2007 22,674,734.0 40,651.00 15,740,651.0

CALCULATION
YEARS WORKING ANSWER
Formula Debt Ratio/Equity Ratio
2009 71.31% 28.60% 2.49

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 2008 63.17% 36.83% 1.72

2007 59.03% 40.97% 1.44

Debt to tangible net worth.

In this ratio we measure the amount of tangible assets which are financed by debt to measure the
exact riskiness of company. In our case it show that more than 2 % tangible assets are financed
by debt.

Debt to Tangible Net worth Ratio

DATA
Rough Working
Tangible Net
YEARS Total Debt Tangible net worth= total assets-
worth
liabilities-intangible assets.
Tangible Net worth
66,8 26,765
2009 21,200.0 ,534 93709438-66821200-122704
36,1 20,930
2008 11,133.0 ,749 57164739-36111133-122858

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 22,6 15,606 38415385-17410060-5264674-
2007 74,734.0 ,785 133867

CALCULATION
YEARS WORKING ANSWER
Formula Total debt /Tangible net worth
66,821, 26,765
2009 200 ,534 2.50

36,111, 20,930
2008 133 ,749 1.73

22,674, 15,606
2007 734 ,785 1.45

Current worth to net worth ratio.

CURRENT WORTH TO NET WORTH

RATIO

DATA
NET
YEARS CURRENT WORTH
WORTH Rough Working
Current assets- current Liabilities
4,353
2009 ,402.0 26888238 10748871-6395469
9,323
2008 ,805.0 9011385 15323158-5999353
11,132,
2007 524.0 15740651 16397198-5264674
Total assets- total Liabilities

CALCULATION 93709438-66821200
YEARS WORKING ANSWER 45122518-36111133

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Formu
current worth /Net Worth
la 38415385-17410060-5264674
4,353,4 26,888,2
2009 02 38 0.16
9,323,8 9,011,3
2008 05 85 1.03
11,132,5 15,740,6
2007 24 51 0.71

Total Capitalization Ratio

Capitalization ratio shows the mixture of debt and equity in company’s investment.
In our case the company increasing its debt and now the mixture is really doubt full because at
the end of 2009 more than company’s total investment is 29 % equity and 71 % debt.

Total Capitalization Ratio

DATA
Total Debt +Total
YEARS Total Debt Rough Working
Equity
total equity + total debt
66,821 93,709,43
2009 ,200.0 8.0 26888238+66821200

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 36,111 57,164,73
2008 ,133.0 9.0 21053606+36111133
22,674 38,415,38
2007 ,734.0 5.0 15740651+22674734

CALCULATION
YEARS WORKING ANSWER
Formula Total Debt/Total Debt + Total Equity
66,821,200 93,709,43
2009 .0 8.0 0.71

36,111,133 57,164,73
2008 .0 9.0 0.63

22,674,734 38,415,38
2007 .0 5.0 0.59

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 Fixed Asset to Equity Ratio .
This ratio is calculated by dividing fixed assets by equity more then 1 show the amount of assets
financed by debt in Engro case more assets are financed by debt in 2009 as compared to 2007
where it is only .44%.

Fixed assets to Equity Ratio

DATA

YEARS Fixed assets Total Equity Rough Working

total equity
82,9 26,888,23 26,88
2009 60,567.0 8.00 8,238.0
45,1 21,053,60 21,05
2008 22,518.0 6.00 3,606.0
22,7 15,740,65 15,74
2007 30,050.0 1.00 0,651.0

CALCULATION
YEARS WORKING ANSWER
Formula Fixed assets /Total Equity
82,960, 26,888
2009 567 ,238 3.09

45,122, 21,053
2008 518 ,606 2.14

22,730, 15,740
2007 050 ,651 1.44

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54
Long term Assets versus Long term Debt
This ratio shows the relationship between long term debts to long term assets or we can say how
much long term assets are pledge aging long term debt. .
In our case more than 100% assets are pledge against long term debt.

Long Term assets To Long Term Debt

DATA

YEARS long term assets Long Term Debt Rough Working

82,960, 60,425,731.
2009 567.0 00
45,122, 30,111,780.
2008 518.0 00
22,730, 17,410,060.
2007 050.0 00

CALCULATION
YEARS WORKING ANSWER
Formula Long term assets /Long term debt
82,960,5 60,425,7
2009 67 31 1.37

45,122,5 30,111,7
2008 18 80 1.50

22,730,0 17,410,0
2007 50 60 1.31

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55
Profitability Ratios

Profitability ratios measure the earning ability of a firm.

These include:

• Net Profit Margin

• Return on Assets

• DuPont Return on Assets

• Operating Income Margin

• Operating Assets Turnover

• Return on Operating Assets

• Sales to Fixed Assets

• Return on Investment (ROI)

• Return on Total Equity

• Gross Profit Margin

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56
 • Net Profit Margin

This ratio show the margin of net profit in sale or we can say that in one rupee of sale how
mush amount is as net profit. In our case it is high in 2008 and in 2009 it come down due to
some reason. But still health.

Net Profit Margin

DATA

YEARS Net Profit Net Sale Rough Working

3,957, 30,171,5
2009 250.0 20
4,240, 23,317,1
2008 430.0 98
3,154, 23,183,2
2007 583.0 22

CALCULATION
YEARS WORKING ANSWER
Formula Net Profit /Net Sale
3,957,2 30,171,5
2009 50 20 13.12%

4,240,4 23,317,1
2008 30 98 18.19%

3,154,5 23,183,2
2007 83 22 13.61%

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57
 Return on assets.

This ratio shows the usage of assets in generation of profit. In Engro case it is coming down its
mean company increasing its assets but did not fully use them or investing in non operation
assets on high basis.

Return on Assets

DATA

YEARS Net income Total assets Rough Working

3,957, 93,709,438.
2009 250.0 00
4,240, 57,164,739.
2008 430.0 00
3,154, 38,415,385.
2007 583.0 00

CALCULATION
YEARS WORKING ANSWER
Formula Total assets /Net Sale
3,957,2 93,709,4
2009 50 38 4.22%

4,240,4 57,164,7
2008 30 39 7.42%

3,154,5 38,415,3
2007 83 85 8.21%

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58
Do Pont Return on Assets.

It is assumed that profit is affected by assets turn over so in this ratio we measure the individual
separate item to know the affect of every one separately.

Du pont return on assets.

DATA
YEAR
S Net income sale total assets. Rough Working
net income / sale x sale /
Total assets
3,957, 30,17 93,709
2009 250.0 1,520 ,438.00 3957250/ 30171520
4,240, 23,31 57,164
2008 430.0 7,198 ,739.00 4240430/23317198

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59
 3,154, 23,18 38,415
2007 583.0 3,222 ,385.00 3154583/23183222

CALCULATION sale / total assets.

YEAR
S WORKING ANSWER 30171520/93709438
Form sale / Total
ula net income / sale assets 23317198/57164739

2009 0.13 0.32 4.22% 23183222/38415385

2008 0.18 0.41 7.42%

2007 0.14 0.60 8.21%

• Operating Margin

Operation profit margin show the margin of operating income in sale as in

net profit margin here we calculate the operating margin in one rupee of sale. And in our case in
it is increasing with passing years. In year 2009 net profit and operation profit margin are almost
equal which shows that other income and finance cost are also almost equal.

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60
Operating Profit Margin

DATA

YEARS Operating Profit Net Sale Rough Working

operating income= gross profit-
selling & admin exp.
3,959, 30,171,520.
2009 192.00 00 6196563-1657815-579556
2,939, 23,317,198.
2008 275.00 00 4920429-1641724-339430
2,468, 23,183,222.
2007 353.00 00 4237259-1481730-287176

CALCULATION
YEARS WORKING ANSWER
Formula Operating Profit /Net Sale
3,959,1 30,171,
2009 92 520 13.12%

2,939,2 23,317,
2008 75 198 12.61%

2,468,3 23,183,
2007 53 222 10.65%

Operating Assets Turnover

Operating assets are those assets which are used in production at
somehow. We see how mush operating assets are used in generation of revenue. And it show
excellent record in 2009 more than 200 % and while comparing total assets it is less which mean
that company is investing much amount in non productive assets.

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Operating Assets Turnover

DATA

YEARS Operating Assets Net Sale Rough Working

69,517,5 30,171,520.0
2009 12.00 0
33,552,9 23,317,198.0
2008 12.00 0
13,818,6 23,183,222.0
2007 74.00 0

CALCULATION
YEARS WORKING ANSWER
Formula Gross Profit /Net Sale
69,517,512.0 30,171,520.
2009 0 00 230.41%
33,552,912.0 23,317,198.
2008 0 00 143.90%
13,818,674.0 23,183,222.
2007 0 00 59.61%

Sale to Fixed Assets

Sale to fixed assets shows how much fixed assets are used to generate sale
including good will and non productive assets.

In Engro case assets plant and equipment are almost double but sale is
almost equal to year 2008 and due the this reason ratio come down in 2009.

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Sale to Fixed Assets

DATA

YEARS Net Sale Fixed Assets Rough Working

30,171,5 82,960,567.
2009 20.00 00
23,317,1 45,122,518.
2008 98.00 00
23,183,2 22,730,050.
2007 22.00 00

CALCULATION
YEARS WORKING ANSWER
Formula Net Sale/Fixed assets
30,171,5 82,960,5
2009 20 67 36.37%
23,317,1 45,122,5
2008 98 18 51.68%
23,183,2 22,730,0
2007 22 50 101.99%

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63
 • Return on Investment

Return on investment mean how effectively companies using its Capital

for that purpose we divide EBIT by equity + long term debt. In our case in is decreasing with
time

Return on Investment

DATA
Total
YEARS EBIT
investment. Rough Working
EBT+ interest cost
86,1
2009 5,214,946.0 57,434.0 26,888,238.0
49,7
2008 5,204,574.0 28,370.0 21,053,606.0
31,1
2007 4,235,512.0 63,171.0 15,740,651.0
Total investment.
CALCULATION Equity + borrowing + derivative
financial instruments.
YEARS WORKING 26888238+58656354+612842
Formu
EBIT/ total investment. ANSWER
la 21053606+27756714+918050
5,21 86,15
6.1%
2009 4,946 7,434 15740651+15422520+0
2008 5,20 49,72 10.5%
4,574 8,370
2007 4,23 31,16 Page
13.6%
5,512 3,171 64
• Return on Total Equity

In this ratio we measure how much we get form our equity investment in
this case although we increase our equity investment in 2009 but return is low.

Return on Total Equity

DATA

YEARS Net Profit Total Equity Rough Working

3,957,2 26,888,238.
2009 50.0 00
4,240,4 21,053,606.
2008 30.0 00
3,154,5 15,740,651.
2007 83.0 00

CALCULATION
YEARS WORKING ANSWER
Formula Net Profit /Total Equity
3,957,2 26,888,2
2009 50 38 14.72%
4,240,4 21,053,6
2008 30 06 20.14%
3,154,5 15,740,6
2007 83 51 20.04%

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65
• Gross Profit Margin

Like net profit and operating profit margin we measure gross profit margin
over net sale . It decrease in 2009 as compare to 2008.

Gross Profit Margin

DATA

YEARS Gross profit Net Sale Rough Working

6,931,3 30,171,520.
2009 44.00 00
6,196,5 23,317,198.
2008 63.00 00
4,920,4 23,183,222.
2007 29.00 00

CALCULATION
YEARS WORKING ANSWER
Formula Gross Profit /Net Sale
6,931,3 30,171,5
2009 44 20 22.97%
6,196,5 23,317,1
2008 63 98 26.58%
4,920,4 23,183,2
2007 29 22 21.22%

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66
d) Activity Ratios

Activity ratios measure a firm's ability to convert different accounts within their balance
sheets into cash or sales.

These include:

• Accounts Receivable Turnover

• Average Collection Period

• Accounts Payable Turnover

• Average Payment Period

• Inventory Turnover

• Average Age of Inventory

• Operating Cycle

• Total Assets Turnover

• Fixed Assets Turnover

Activity Ratios

Account Receivable Turnover

It show how quickly company recover its amount form debtors. Our
company is. 11 time a year in 2009 which is low as compare to 2008 but health one average.

Account Receivable Turn Over

DATA

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67
YEARS Net sale Average A/R Rough Working
Average A/R=opening A/R+
Closing A/R/2
30,171,5 2,645,1
2009 20.00 79 2514425+261508/2
23,317,1 1,606,5
2008 98.00 85 261508+2690153/2
23,183, 3,151,8
2007 222.00 77 2690153+923448/2

CALCULATION
YEARS WORKING ANSWER
Formula Average A/R /Net Sale
30,171,5 2,645,1 11.
2009 20 79 41
23,317,1 1,606,5 14.
2008 98 85 51
23,183,2 3,151,8 7
2007 22 77 .36

Average Collection Period

Average collection period show how much days a company take to

recover its amount form debtors and in 2009 it take almost one month to recover its amount but
in 2007 it was 46 days which are much time but company is improving in this field also.

Average Collection Period

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68
 DATA

YEARS Average Turnover Rough Working

Account receivable
2009 turnover is taken form 11.41
2008 average collection 14.51
2007 period 7.86

CALCULATION
YEARS WORKING ANSWER
Formula 365/ A/R turnover
36 11.4
31.99
2009 5 1
36 14.5
25.16
2008 5 1
36
46.44
2007 5 7.86

Account Payable Turnover

This ratio show how much time a company take to pay its trade creditors.
In this field company pay its short term trade creditors in 5 times in a year 2009 which is low.

Account Payable Turn Over

DATA

YEARS Cost of goods sold Average A/P Rough Working

Average A/P=opening A/P+

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69
 Closing A/P / 2
23,240,1 4,618,4
2009 76.00 89 3160852+2915274/2
17,120,6 4,791,7
2008 35.00 47 2915274+3752945/2
18,262,7 4,293,8
2007 93.00 18 3752945+1081745/2

CALCULATION
YEARS WORKING ANSWER
Average A/P /Cost of goods
Formula
sold
23,240,1 4,618,4
2009 76 89 5.03
17,120,6 4,791,7
2008 35 47 3.57
18,262,7 4,293,8
2007 93 18 4.25

Average Payment Period

Average payment period is not very good of Engro it take almost 2.5
month to pay its trade creditors in 2009 and company is nothing receiving as trade discounts .it is
lowest in 2009 and still is 71 days.

Average Payment Period

DATA

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70
YEARS Average Turnover Rough Working

2009 Account Payable turnover is 5.03

taken form average payment
2008 period 3.57

2007 4.25

CALCULATION
YEARS WORKING ANSWER
Formula 365/ A/P turnover
5 72
2009 365 .03 .54
3 102
2008 365 .57 .16
4 85
2007 365 .25 .82

Inventory Turnover Ratio

Inventory turnover ratio shows how effectively company refresh its
inventory. In 2009 it was excellent but not very good in 2008 just twice repeat the inventory.

Inventory Turn Over

DATA
YEAR Average Rough
Cost of goods sold
S Inventory Working

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71
 Average
Inventory=opening
Inventory + Closing
Inventory
23,2 2,763,05
2009 40,176.00 5.00 422607+4680896/2
17,1 6,025,97 4680896+2690153/
2008 20,635.00 2.50 2
18,2 3,151,87
2007 62,793.00 7.00 2690153+923448/2

CALCULATION
YEAR
WORKING ANSWER
S
Form Cost of goods sold /
ula Average Inventory
23,240,17 2,763,05
2009 6.00 5.00 8.41
17,120,63 6,025,97
2008 5.00 2.50 2.84
18,262,79 3,151,87
2007 3.00 7.00 5.79

Average inventory turnover period.

Average of inventory shows the how many days spent in sale the
inventory or expiry of inventory. In our case company take 43 days to sell inventory in 2008 it
was 102 days which is very high.

Average Inventory turnover Period

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72
DATA

YEARS Average Turnover Rough Working

2009 Account Payable turnover is 8.41

taken form average collection
2008 period 2.84

2007 5.79

CALCULATION
YEARS WORKING ANSWER
365/Average inventory
Formula
turnover
8 43
2009 365 .41 .40
2 128
2008 365 .84 .47
5 62
2007 365 .79 .99

Operating Cycle.
Operation cycle show how many days a company take to sell inventory and then collection of
money From trade debts. It was very efficient in 2009 as compare to previous years.

Collection Period

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73
DATA

YEARS Age of Inventory Collection Period Rough Working

2009 43.40 32
1
2008 28.47 25

2007 62.99 46

CALCULATION
YEARS WORKING ANSWER
Age of Inventory + Collection
Formula
period
75
2009 43 32 .38
153
2008 128 25 .62
109
2007 63 46 .43

Total Assets Turnover

In this ratio we measure the usage of total assets in sale generation
procedure. It is decreasing in the passing years. And in 2009 in come near to 1/3 of total assets.

Total Assets Turnover

DATA

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74
YEARS Net Sale Total Assets Rough Working

30,171,52 93,709,438.
2009 0.00 00
23,317,19 57,164,739.
2008 8.00 00
23,183,22 38,415,385.
2007 2.00 00

CALCULATION
YEARS WORKING ANSWER
Formula Net Sale / Total Assets
30,171,5 93,709,4
2009 20 38 0.32
23,317,1 57,164,7
2008 98 39 0.41
23,183,2 38,415,3
2007 22 85 0.60

Fixed Assets Turnover

In this ratio we measure just fixed assets turnover over the sale and again
it show the decreasing trend in our organization.

Sale to Fixed Assets

DATA

YEARS Net Sale Fixed Assets Rough Working

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75
 30,171,52 82,960,567.
2009 0.00 00
23,317,19 45,122,518.
2008 8.00 00
23,183,22 22,730,050.
2007 2.00 00

CALCULATION
YEARS WORKING ANSWER
Formula Net Sale/Fixed assets
30,171,5 82,960,5
2009 20 67 36.37%
23,317,1 45,122,5
2008 98 18 51.68%
23,183,2 22,730,0
2007 22 50 101.99%

Market Ratios

Market ratios are commonly used by the investors to assess the performance of a
business as an investment and also the cost of issuing stock.

Calculation:

Note 1 (due to non availbilty of dividend in 2009 we are conductiong analysis of 2006 ,
2007 ,2008.)

Note 2( all ratios where dividend or outstanding shares are used amount are not in thousands.)

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76
Dividend per share

This ratio shows how much amount is paid against every subscribed share.

In our company it is almost average for three years.

Dividend Per Share

DATA

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77
 YEAR Ordinary Rough
Total Dividend
S Issued Share Working
Paid Up capital/10
5 212,8
2008 80,408,000.00 16,100 2128161000/10
4 193,4
2007 25,632,000.00 69,200 1934692000/10
5 168,2
2006 04,702,000.00 34,000 1682340000/10

CALCULATION
YEAR
WORKING ANSWER
S
Form Declared dividend / ordinary
ula shares
580, 212,81
2009 408,000 6,100 2.73
580, 193,46
2008 408,000 9,200 3.00
425, 168,23
2007 632,000 4,000 2.53

Earning per Share

Under this ratio we measure what is what a ordinary share get against net
income. In Engro it was highest in 2008 and lowest in 2009.

Earnings Per Share

DATA

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78
YEARS Net Income Ordinary Issued Share Rough Working
Paid Up capital/10
3,957,250,0 297,942,6
2009 00.0 00 2979426000/10
4,240,430,0 212,816,1
2008 00.0 00 2128161000/10
3,154,583,0 193,469,2
2007 00.0 00 1934692000/10

CALCULATION
YEARS WORKING ANSWER
Formula Net Income / ordinary shares
3,957,250,00 297,942,6
2009 0 00 13.28
4,240,430,00 212,816,1
2008 0 00 19.93
3,154,583,00 193,469,2
2007 0 00 16.31

Price/Earnings Ratio

By dividing market price to EPS we get this ratio which show the high earning in future
if this ratio is high. In our target firm it is average but highest in 2008 and lowest in 2009.

Earnings Per Share

DATA

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79
 YEARS Market Price EPS Rough Working

2009 121.0 13.28

2008 273.0 19.93
2007 179.0 16.31

CALCULATION
YEARS WORKING ANSWER
Formula Market price / EPS
2009 121 13 9.11
2008 273 20 13.70
2007 179 16 10.97

Percentage of Earnings Retained

How much amount company keep in his hand in order to invest in new project and
gaining opportunity is called retain earning. In our target firm it is increasing with the passage of
time.

Percentage of Earning Retain

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 DATA
YEAR Retain Earning at
S beginning
net income dividend

4, 4,240, 58
2008 102,366.0 430.00 0,408.00
2, 3,154, 42
2007 190,148.0 583.00 5,632.00
1, 2,647, 50
2006 416,926.0 326.00 4,702.00

CALCULATION
YEAR
WORKING ANSWER
S
Retain earning at
Form
beginning +net income-
ula
dividend
4102366+4240430- 7,762
2008 580408 ,387.0
2190148+3154583- 4,919
2007 425632 ,098.0
1416926+2647326- 3,559
2006 504702 ,549.0

• Dividend Payout

This ratio shows what percentage form its net income a company pay dividend. Engro is paying
nominal amount as dividend but real focus on increasing market value of shares.

Dividend Pay Out

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 DATA
YEAR Rough
Net Income Dividend
S Working

4 580,
2008 ,240,429.0 408.00
3 425,
2007 ,154,582.0 632.00
2 504,
2006 ,647,326.0 702.00

CALCULATION
YEAR
WORKING ANSWER
S
Form
Dividend/Net Income
ula
58 4,24
2008 0,408 0,429 13.69%
42 3,15
2007 5,632 4,582 18.40%
50 2,64
2006 4,702 7,326 16.08%

Dividend yield.

Dividend yield

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82
 DATA
YEAR Annual dividend per
S share
Price per share Rough Working

27
2008 13.78% 3.00
17
2007 18.40% 9.00
18
2006 16.08% 2.00

CALCULATION
YEAR
WORKING ANSWER
S
Annual dividend per
Form
share / price per
ula
share
13.7
2008 8% 273 0.05%
18.4
2007 0% 179 0.10%
16.0
2006 8% 182 0.09%

Book Value per Share.

Shareholder equity- preferred stock / outstanding shares.

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And we get book value of shares. In our target firm it is over the face value since 2007.

Book value per share

DATA
YEAR share holder equity - outstanding Rough
S preferred stock share Working

26,888 297,942,6
2009 ,238,000.0 00.00 26888238-0
21,053 212,816,1
2008 ,606,000.0 00.00 21053606-0
15,740 193,469,2
2007 ,651,000.0 00.00 15740651-0

CALCULATION
YEAR
WORKING ANSWER
S
share holder equity -
Form
preferred stock /
ula
outstanding shares.
26,888,238, 297,942,
2009 000.0 600 90.25
21,053,606, 212,816,
2008 000.0 100 98.93
15,740,651, 193,469,
2007 000.0 200 81.36
Statements of Cash Flow

Cash flow ratios indicate liquidity, borrowing capacity and profitability.

These include:

• Operating Cash Flow/Current Maturities of Long Term Debt and Current

Notes Payable

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84
• Operating Cash Flow/Total Debt

• Operating Cash Flow per Share

• Operating Cash Flow/Cash Dividends

Calculation

OPERATING CASH FLOW/CURRNT MATURTY OF LONG TERM

DEBT AND NOTES PAYABLE

DATA
YEAR CURRNT MATURTY OF Rough
OPERATION CASH FLOW LONG TERM DEBT AND
S NOTES PAYABLE Working
CURRNT MATURTY
OF LONG TERM
DEBT AND NOTES
PAYABLE

8
2009 6,088,724.00 10,100.00 810100+0

2008 (117,379.00) 76,600.00 76600+0

1,30
2007 1,815,239.00 0,000.00 1300000+0

CALCULATION
YEAR
WORKING ANSWER
S
Form OPERATING CASH FLOW/CURRNT PORTION
ula OF LONG TERM DEBT+NOTE PAYABLE

8
2009 6,088,724 10,100 7.52

2008 (117,379) 76,600 -1.53

1,30
2007 1,815,239 0,000 1.40

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Operating Cash Flow to Debt ratio.
This ratio shows how much a company generate operating cash flow form the money of debt.
This company generate a nominal but in 2008 operating cash flow was in negative.

OPERATING CASH FLOW/ TOTAL DEBT

DATA
YEAR Rough
OPERATION CASH FLOW TOTAL DEBT
S Working

66,8
2009 6,088,724.00 21,200.0
36,1
2008 (117,379.00) 11,133.0
22,6
2007 1,815,239.00 74,734.0

CALCULATION
YEAR
WORKING ANSWER
S
Form OPERATING CASH FLOW/ TOTAL DEBT
ula
66,8
2009 6,088,724 21,200 0.09
36,1
2008 (117,379) 11,133 0.00
22,6
2007 1,815,239 74,734 0.08

Operating Cash Flow per Share.

How much a cash which is generate form operating activities is against every share outstanding.
In engro it is quite healthy in year 2009 and negative in 2008 and good in 2007.

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 OPERATING CASH FLOW PER SHARE
DATA
YEAR OPERATION CASH
S FLOW share outstanding Rough Working
OPERATING CASH FLOW-
PERFORD DIVIDENT
297,942,600
2009 6,088,724,000.00 .00 6088724-0
212,816,100
2008 -117,379,000.00 .00 -117,379.00
193,469,200
2007 1,815,239,000.00 .00 1815239-0

CALCULATION
YEAR
S WORKING ANSWER
Form OPERATING CASH FLOW/
ula TOTAL DEBT
6,088,7 297,942,6
2009 24 00 20.44
- 87,183,90
2008 117,379 0 (0.55)
1,815,2 106,530,8 9.38
2007 39 00

Operating Cash Flow/Cash Dividends.

OPERATING CASH FLOW / CASH DIVIDEND

DATA
YEAR CASH
S
OPERATION CASH FLOW
DIVIDEND
Rough Working

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87
 580
2008 (117,380.00) ,408.00
425
2007 1,815,238.00 ,632.00
504
2006 1,379,979.00 ,702.00

CALCULATION
YEAR
WORKING ANSWER
S
Form OPERATING CASH FLOW/ CASH
ula DIVIDEND

(1 58
2008 17,380) 0,408 -0.20
1,8 42
2007 15,238 5,632 4.26
1,3 50
2006 79,979 4,702 2.73

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Horizontal Analysis.

Horizontal analysis is done by the company while taking a year as base.

In horizontal analysis we measure the percentage decrease or increase in items with respect to
base year. It is very helpful for us to understand the company growth.

It is also helpful to see the decrese in a particular item in income statement and balance sheet as
well

The formula is

Current year / base year x 100

Normally this analysis is done for income statement

And balance sheet

It quite interesting to see such a quick and unexpected trend in income statement we see some
items are increase in 2008 and decrease in 2009 and some are against but in 2008 finance cost
increase by 182% and still profit is high in respect to 2007 whereas sale is almost equal to 2007.

Horizontal analysis of Engro Food Supply chain.

Income statement
All amounts are in thousands
Description 2009 2008 2007
30,171,520. 23,317,198. 23,183,222.
net sale 00 00 00
130.14% 100.58% 100%
23,240,176. 17,120,635. 18,262,793.
cost of goods sold 00 00 00
135.74% 93.75% 100%

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 6,931,344 6,196,563. 4,920,429.
gross profit .00 00 00
111.86% 125.94% 100%
selling and distribution 1,945,176 1,657,815. 1,641,724.
expenses .00 00 00
117.33% 100.98% 100%
1,973,467 2,754,330. 1,831,260.
other operating income .00 00 00
71.65% 150.41% 100%
424,110 579,556 339,430.
other operating expenses .00 .00 00
73.18% 170.74% 100%
1,320,579 1,508,948. 535,023.
finance cost .00 00 00
87.52% 282.03% 100%
5,214,946 5,204,574. 4,235,512.
profit before tax .00 00 00
100.20% 122.88% 100%
1,257,696 964,144 1,080,939.
taxation .00 .00 00
130.45% 89.20% 100%
3,957,250 4,240,430. 3,154,583.
profit after tax .00 00 00
93.32% 134.42% 100%

Horizontal analysis of balance sheet liabilities. side.

Liabilities side is also un expected trend as income statement which show some items are
increasing very fast and other are decreasing but still quite health growth. In many items.

Horizontal analysis of Engro Food Supply chain.

Balance sheet liabilities side.
All amounts are in thousands
Description 2009 2008 2007
10,550,06 7,152,72 3,963,97
share premium 1.00 2.00 7.00
266.15% 180.44% 100%

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90
 288,2 305,0 272,99
employee share option 58.00 52.00 0.00
105.59% 111.74% 100%
609,7 127,3 1,037,38
hedging reserves 19.00 07.00 6.00
58.77% 12.27% 100%
4,429,2 4,429,24 4,429,24
general reserve 40.00 0.00 0.00
100.00% 100.00% 100%
9,250,9 6,911,1 4,102,36
Un appropriated profit 72.00 24.00 6.00
225.50% 168.47% 100%
58,565,35 27,756,71 15,422,52
long term finance 4.00 4.00 0.00
379.74% 179.98% 100%
988,1 1,319,43 1,948,98
deferred taxation 69.00 2.00 0.00
50.70% 67.70% 100%
retirement and other 47,5 44,2 38,56
benefits 81.00 65.00 0.00
123.39% 114.80% 100%
810,1 76,6 1,300,00
current portion 00.00 00.00 0.00
of long term finance 62.32% 5.89% 100%
20,6 18,3 18,66
other service benefits 00.00 34.00 2.00
90.59% 101.79% 100%
trade and other 740,0 155,1 3,752,94
payables 43.00 60.00 5.00
19.72% 4.13% 100%
102,0 318,3 193,06
unclaimed dividends. 99.00 20.00 7.00
52.88% 164.88% 100%

Balance sheet assets side

Assets side shows 400 % increase in 2009 as compare to 2007 and store and spare parts increase
by 900% in 2008 as compare to 2007 and again come back at normal stage in2009.

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 Horizontal analysis of Engro Food Supply chain.
Balance sheet assets side.
All amounts are in thousands
Description 2009 2008 2007
property plant and 69,517,512 33,552,912 13,818,674
equipment .00 .00 .00
503.07% 242.81% 100%
intangible assets 122,704.00 122,858.00 133,867.00
91.66% 91.78% 100%
12,988,657 11,091,857 7,764,482.
long term investment .00 .00 00
167.28% 142.85% 100%
deferred employee
compensation 2,787.00 96,078.00 171,529.00
1.62% 56.01% 100%
long term loans and 218,820.0
advances 328,907.00 0 841,498.00
39.09% 26.00% 100%
8,000,091.
store and spare parts 961,117.00 00 740,873.00
129.73% 1079.82% 100%
4,680,896. 2,690,153.
stock in trade 422,607.00 00 00
15.71% 174.00% 100%
2,514,425. 1,408,885.
trade debts 00 261,508.00 00
178.47% 18.56% 100%
Deffer employee
compensation 87,278.00 93,213.00 72,537.00
120.32% 128.50% 100%
1,469,155. 1,899,124.
loans advances and deposits 00 00 889,621.00
165.14% 213.48% 100%
1,568,418.
other receivables 275,714.00 452,168.00 00
17.58% 28.83% 100%
tax recoverable 536,167.00 618,746.00 543,376.00
101.34% 87.82% 100%
6,153,948.
short term investments 450,857.00 67,811.00 00
7.33% 1.10% 100%
3,955,342. 1,687,038. 1,617,524.
cash and bank balance 00 00 00
244.53% 104.30% 100%

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Vertical analysis of engor corporation.

In vertical analysis we take an item as 100 % and measure all other item with it respect in the
same year.

It is help full for us to measure the how much amount is contain in a statement. Like

And in our target firm we find that in income statement near amount 80 % expenses are CGS
with is not easy to control.

vertical analysis of Engro Food Supply chain.

Income statement
All amounts are in thousands
Description 2009 2008 2007
30,171,520. 23,317,198. 23,183,222.
net sale 00 00 00
100.00% 100.00% 100%
23,240,176. 17,120,635. 18,262,793.
cost of goods sold 00 00 00
77.03% 73.42% 79%
selling and distribution 1,945,176. 1,657,815. 1,641,724.
expenses 00 00 00
6.45% 7.11% 7%
1,973,467. 2,754,330. 1,831,260.
other operating income 00 00 00
6.54% 11.81% 8%
424,110 579,556 339,430.
other operating expenses .00 .00 00
1.41% 2.49% 1%

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93
 1,320,579. 1,508,948. 535,023.
finance cost 00 00 00
4.38% 6.47% 2%
1,257,696. 964,144 1,080,939.
taxation 00 .00 00
4.17% 4.13% 5%
3,957,250. 4,240,430. 3,154,583.
profit after tax 00 00 00
13.12% 18.19% 14%

Vertical analysis of liabilities side.

In the analysis we see and equity is near about 1/3 of total liabilities and 70 % liabilities is debt
in 2009 whereas it was 40 to 60 % respectively in 2007 which mean company is increasing its
investment through debt. Long term finance is about 60 % to total debt.

Vertical analysis of Engro Food Supply chain.

Balance sheet liabilities side.
All amounts are in thousands
Description 2009 2008 2007
2,979,426. 2,128,161. 1,934,692.
share capital 00 00 00
3.18% 3.72% 5.04%
10,550,061. 7,152,722. 3,963,977.
share premium 00 00 00
11.26% 12.51% 10.32%
288,258. 305,052. 272,990.
employee share option 00 00 00
0.31% 0.53% 0.71%
609,719. 127,307. 1,037,386.
hedging reserves 00 00 00
0.65% 0.22% 2.70%
4,429,240. 4,429,240. 4,429,240.
general reserve 00 00 00
4.73% 7.75% 11.53%
9,250,972. 6,911,124. 4,102,366.
Un appropriated profit 00 00 00
9.87% 12.09% 10.68%
total equity. 26,888,238. 21,053,606. 15,740,651.

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 00 00 00
28.69% 36.83% 40.97%
58,565,354. 27,756,714. 15,422,520.
long term finance 00 00 00
62.50% 48.56% 40.15%
derivative financial 612,842. 918,050.
instruments 00 00 0
0.65% 1.61% 0.00%
988,169. 1,319,432. 1,948,980.
deferred taxation 00 00 00
1.05% 2.31% 100%
211,785. 73,319.
employee housing subsidy 00 00 0
0.23% 0.13% 0.00%
47,581. 44,265. 38,560.
retirement and other benefits 00 00 00
0.05% 0.08% 0.10%
60,425,731. 30,111,780. 17,410,060.
total fixed liabilities. 00 00 00
64.48% 52.68% 45.32%
3,160,852. 2,915,274.
trade and other payables 00 00 0
3.37% 5.10% 0.00%
1,366,022. 804,390.
accrued interest 00 00 0
1.46% 1.41% 0.00%
810,100. 76,600. 1,300,000.
current portion 00 00 00
of long term finance 0.86% 0.13% 3.38%
20,600. 18,334. 18,662.
other service benefits 00 00 00
0.02% 0.03% 0.05%
195,753. 1,711,275.
short term borrowing 00 00
0.21% 2.99% 0.00%
740,043. 155,160. 3,752,945.
trade and other payables 00 00 00
0.79% 0.27% 9.77%
102,099. 318,320. 193,067.
unclaimed dividends. 00 00 00
0.11% 0.56% 0.50%
6,395,469. 5,999,353. 5,264,674.
Total current liabilities. 00 00 00

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95
 6.82% 10.49% 13.70%
93,709,438. 57,164,739. 38,415,385.
total equity and liabilities. 00 00 00

Vertical analysis of Engro Food Supply chain.

Balance sheet assets side.
All amounts are in thousands
Description 2009 2008 2007
33,552,912.0
property plant and equipment 69,517,512.00 0 13,818,674.00
74.18% 58.70% 35.97%
intangible assets 122,704.00 122,858.00 133,867.00
0.13% 0.21% 0.35%
11,091,857.0
long term investment 12,988,657.00 0 7,764,482.00
13.86% 19.40% 20.21%
deferred employee
compensation 2,787.00 96,078.00 171,529.00
0.00% 0.17% 0.45%
Derivative financial 39,993
instruments. - .00 -
0.00% 0.07% 0.00%
long term loans and advances 328,907.00 218,820.00 841,498.00
0.35% 384.56% 100%
45,122,518.0
Total Fixed assets. 82,960,567.00 0 22,730,050.00
88.53% 78.93% 59.17%
961,117 800,091 740,873.
store and spare parts .00 .00 00
1.03% 1.40% 1.93%
422,607 4,680,896. 2,690,153.
stock in trade .00 00 00

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 0.45% 8.19% 7.00%
2,514,425 261,508 1,408,885.
trade debts .00 .00 00
2.68% 0.46% 3.67%
defferd employee 87,27 93,213 72,537.
compensation 8.00 .00 00
0.09% 0.16% 0.19%
1,469,155 1,899,124. 889,621.
loans advances and deposits .00 00 00
1.57% 3.32% 2.32%
275,714 452,168 1,568,418.
other receivables .00 .00 00
0.29% 0.79% 4.08%
Derivative financial 76,20 1,481,626.
instruments 9.00 00 -
0.08% 2.59% 0.00%
536,167 618,746 543,376.
tax recoverable .00 .00 00
0.57% 1.08% 1.41%
450,857 67,811 6,153,948.
short term investments .00 .00 00
0.48% 0.12% 16.02%
3,955,342 1,687,038. 1,617,524.
cash and bank balance .00 00 00
4.22% 2.95% 4.21%
10,748,871. 12,042,221. 15,685,335.
Total current assets. 00 00 00
93,709,438. 57,164,739. 38,415,385.
Total assets 00 00 00

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 Comparison.

We are comparing Engro with a very strong firm in the same field which is Fuji fertilizer Ltd.

Comparison show that all profitability ratios of FFC are almost double good as engro but in
current assets management Engro is conscious but FFC is very brave that its working capital is
negative and still get heavy investment form market.

We see that 66 % debt ratio is very high.

Activity ratios are also very much high as compare to Engro.

In the end we can say that FFC is good as compare to engro in almost all aspects.

But Engro is also very strong copetator of FFC in this market.

Comparison

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98
Ratios Engro FFC

current ratio
1.68 0.84

4,353,402. (2,937,118
working capital
00 0)

inventory
turnover 8.41 1.01

1
A/R turn over
1.41 8.04

Debt ratio
0.71 0.66

Debt / Equity
2.49 1.95

gross profit
22.97% 43.27%
margin

Net profit margin 13.12% 24.40%

1
EPR
4.00 3.00

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 Trend analysis:

Trend analysis is the method of time series(information sequence over

time) analysis involving comparison of the same item(such as monthly sales revenue figures)
over a significantly long period to (1) detect general pattern of a relationship between associated
factors or variables, and (2) project the future direction of this pattern.

1. Net Sale.
Net sale in increasing slowly. But positive trend.

Data

years Amount
30,17
2009 1,520.00
23,31
2008 7,198.00
23,18
2007 3,222.00

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100
2-FIXED ASSETS.
Fixed assets are increasing rapidly with positive trend.

Data

years Amount
82,96
2009 0,567.00
45,12
2008 2,518.00
22,73
2007 0,050.00

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3-GROSS PROFIT.
Gross profit is also increasing slowly but positive tend.

Data

years Amount

2009 6,931,344.00

2008 6,196,563.00

2007 4,920,429.00

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4-OPERATING PROFIT.
Operating profit also show positive trend.

Data

years Amount

2009 3,959,192.00

2008 2,939,275.00

2007 2,468,353.00

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5-EBT.

Earning before tax is almost equal in 2008 and 2009 but more as compare to 2007.

Data

years Amount

2009 5,214,946.0

2008 5,204,574.0

2007 4,235,512.0

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104
Page
105
6-NET ICOME.
Net income was highest in 2008 and come down in 2009 .positive
trend in 2008 and negative in 2009

Data

years Amount

2009 3,957,250,000.0

2008 4,240,430,000.0

2007 3,154,583,000.0

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106
8-CURRENT LIBILITIES.
Current liabilities are increasing slowly and with the growth of
company.

Data

years Amount

2009 6,395,469.00

2008 5,999,353.00

2007 5,264,674.00

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107
TOTAL ASSESTS

Data

years Amount

2009 93,709,438.00

2008 57,164,739.00

2007 38,415,385.00

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108
9-TOTAL LIBILITIES.
Total liabilities increase very rapidly
how show that company is increasing
its volume of business.

Data

years Amount

2009 66,821,200.00

2008 36,111,133.00

2007 5,999,353.00

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 12-Future prospects of organization.

Engro just separate its business into two groups

1-Engro fertilizer Ltd.

2-Engro foods Ltd.

In engro fertilizer company is adding worlds largest urea production plant which not only fulfill
Pakistan demand but in near future company is think to export the urea to other countries.

And in engro foods company is currently workin on Engro rice plant which is under construction
and will start production in April 2011.

After this company bought land for meat plant and soon after the completion of Rice Plant
working on that plant start.

Z & J hygienic Pvt. Ltd.

This company is also looking to increase its production capacity by taking lone from different
banks and negotiation is undergoing.

Company is also thinking to take some steps toward its advertisement Compain.

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 14-Conclusion.

Z & J hygienic Pvt. Ltd.

Z & J hygienic Pvt. Ltd. In which I do my internship is a medium level organization and
still under the phase of progress. It is run by single man but to take advantage of tax and limited
liabilities it is register as Pvt. Ltd. company. But I think if he proper use the funds and register it
into stock exchange they can earn more. This company is also very much conscious towards it
data and did not allow and internee to do even his analysis. But the product dippers and ladies
napkin have high demand in our country in near future as people get more and more education
about the benefits of this product. Owner has very strong business back ground and still earning
profit under stress law and order condition.

Engro Ltd.

Engro is very old player in the business field who is taking advantage of urea demand and
high foods items demand in Pakistan. Due to this reason they are adding more products in their
product line. Company’s future is very bright if law and order situation will become good in

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future. Company’s debt ratio is very high which mean company has full confidence on his
earning in future and they did not want to share this earning among so many share holders.

Adding more plants and more products into product line show company’s determination
towards profit earning. In the end I am surprised to see that how effectively company is taking
advantage of rising foods items prices in world.

15-Recommendations.

Z & J hygienic Pvt. Ltd.

For this company I recommend that they should take over the sath culture and adopt all
international modern rules. Company should pay some attention towards advertisement and
inventory should also manage effectively. Company should find new markets with Pakistan and
take some measure to increase the education about the product in rural areas.

Company should hire some professional employees in departments especially in

Production and HR.

Company should also pay some attention towards labor training. Health and safety
environment is very poor and company should also do something for this department. Although
quality of product is good but and development should also need some attention.

Refresh course should also conduct and employees should aware new techniques in their
respective fields.

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112
 Engro.

While keeping in view ration analysis it is clear that company is highly leverage at
present and 70% of its assets are against debt. The other main point of focus is CGS expenses.
Company’s amount source of expense is Cost of goods sold which is near about 70% which is
very high. Company should take measure to control it. Weather should find a service business or
any business in which CGS may less. Company is at its expending stage and he should take more
attention toward research and development because in both fields they are facing some strong
competitors. Like FFC and Nestle Pakistan.

Activity ratios are also not good and company should take some measure to improve
them. Like inventory turn over Accounts payable turn over and account receivable turnover.

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113
 SWOT Analysis:

SWOT analysis is the analysis of company’s strengths weaknesses opportunities and threats form
four things two are internal and two are external.

It is power full tool for decision making in all kind of situations.

Unfortunately the company under consideration did not conduct any SWOT analysis in any time.

Strengths can be increase and weakness can be decreases by companies but two external factors
cannot be influenced but companies can get opportunities and avoid or neutralized threats.

Strengths

 Strong back ground

 Dedicating employees

 Local environment knowledge

 High demand with passage of time

 Not very large size so managing is easy

Weakness

 Poor advertisement

 Sath culture

 No proper deparmization

 No economic of scale advantage

 Management staff is almost nil

 No schedule training

 No safety rules applicable

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  No competitive knowledge

 No proper software for finance and accounting

 Very less information available about market

 Poor market and distribution channel

 No international market knowledge

Opportunity

 Awareness of product to general public

 Very low competitions

 Improving market and distribution channel

 Going towards exporting the product

 Trying to establish local raw material plant

 Increase the attention toward advertisement

 Increasing existing plant capacity

 Hiring most skill labor

 Targeting urban areas

Threats

 Low quality brands are available

 Economic condition of Pakistan

 Law and order situation

 Increasing interest rate of banks

 New VAT rules

 Family matters of directors

 Smuggling of product

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SWOT analysis of Engro
Strength.

1. Very long duration in this business.

2. Excellent management
3. Excellent reputation in Pakistan
4. Use of most advanced IT system and technology
5. Excellent safety standards
6. Good human resource capital
7. Decision on merit
8. Best portfolio of companies
9. Timely decision making
10. Fully applicable ISO standards
11. High market value
12. Continuous improvement
13. Dedicating management
14. Diversified portfolio
15. Very strong credit rating
16. Very good product research
17. World biggest urea plant
18. Economic of scale advantage
19. Confidence of investors.
20. Young people encouraged
21. Profit sharing with employees.

Weakness.

1. Highly depend on lone

2. Too much emphasis on non concerned issues.
3. High turnover of labor.
4. Very tight company policy causing key employees on less concerned issues.
5. Long working hours
6. Subscribed foods normally not shown in big companies.
7. Poor record management
8. Low advertisement
9. More investment in a particular reign of country
10. Much emphasis on foreign consultants.
11. Very high cost of administrative department.
12. Less emphasis on experience.
13. More priority of some particular universities.
14. Poor scrap sold management.
Opportunity

1. Investment in mining sector\

2. Investment in power sector
3. High labor force availability

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4. Investment in banking sector
5. Investment in services industry
6. Investment in I T industry
Threats.

1. Law and order

2. Corruption
3. Political instability
4. War aging terrorism
5. High inflation
6. High prices of inputs
7. High investment project
8. Bureaucracy involvement
9. Threat of take over
10. Very strong competitors
11. High imports from China and India.
12. Every day increasing interest rates.
13. Uncertainty

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Sources.

Mr. Qasim Finance Manager.

Mr. Farooq Ahmed. Manager of NIB Bank

www.wikepedia.com

http://www.businessballs.com/swotanalysisfreetemplate.htm

http://searchcrm.techtarget.com/definition/consumer-packaged-goods

http://www.investopedia.com/terms/a/acidtest.asp

http://www.businessdictionary.com/definition/working-capital-to-sales-ratio.html

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