ABDUL RAUF

VU ID
mc100201252
M.B.A.
Finance
Session 2010-2011

Internship Report by Abdul Rauf

on
Asia Poultry Feeds (Pvt.) Ltd.

Brief Introduction of the Asia

Poultry Feeds (Pvt.) Ltd.
Asia Poultry Feeds (Pvt.) Ltd introduced itself in 1993 as a
quality producer of poultry feed in Pakistan. Location
of production plants are Multan and Lahore, but its
market is all Pakistan. It is one of the top poultry feed
producer in Pakistan.
It formulate the product by balancing all the amino acids
in relation to each other and also to the Metabolizable
Energy (ME) plus necessary vitamins, minerals,
antioxidants, growth promoters and coccidiostats are
being added.

Internship Training Program

FINANCE DEPARTMENT
1 Daily and Monthly Bank Reconciliation
2 Reports (control) on inflow and outflow of funds
3 Markup calculation on loan capital
4 Documentation for applying for loan from Bank
5 Cash Budget
ACCOUNTS DEPARTMENT
1 Understanding regarding Accounting cycle
2 Understanding Chart of Accounts
3
All types of voucher entries
4 Stock taking (Stock Verification and Recording)
5 Final Accounts (Financial Reports Monthly & Annual)

Asia Poultry Feeds (Pvt.) Limited

Ratio
Analysis

Formula
Year 2011

Current
Ratio

1,136,058,710/
1,049,088,731
=1.08 times

Year 2010

Year 2009

1,015,414,772 /
1,027,310,153
= 0.99 times

379,637,668 /
403,956,310
= 0.94 times

Asia Poultry Feeds (Pvt.) Limited

Ratio
Analysis

Formula
Year 2011

Acid
Test
Ratio

562,719,386/
1,049,088,731
= 0.536 times

Year 2010

Year 2009

508,109,865 /
1,027,310,153
= 0.50 times

177,507,713 /
403,956,310
= 0.44 times

Asia Poultry Feeds (Pvt.) Limited

Ratio
Analysis

Formula
Year 2011

Net
Working
Capital

1,136,058,7101,049,088,731
=Rs 86,969,979

Year 2010

Year 2009

10154147721,027,310,153
=Rs - 11,895,381

379,117,668403,956,310
=Rs 24,838,642

Asia Poultry Feeds (Pvt.) Limited

Ratio
Analysis

Formula
Year 2011

Times
Interest
Earned

123,178,975/
59,846,813
= 2.06 Time

Year 2010

Year 2009

80,097,066/
53,751,809
=1.49 Time

44,740,300/
24,933,255
= 1.794 Time

Asia Poultry Feeds (Pvt.) Limited

Ratio
Analysis

Formula
Year 2011

Debt
Ratio

1,070,606,039/
1,406,008,090
= 0.76 Time

Year 2010

Year 2009

1,058,402,358/
1,278,476,619
=0.83 Time

413,655,275/
502,105,451
= 0.82 Time

Asia Poultry Feeds (Pvt.) Limited

Ratio
Analysis

Formula
Year 2011

Debt
Equity
Ratio

1,070,606,039/
335,402,051
= 3.192 Time

Year 2010

Year 2009

1,058,402,358/
220,074,261
=4.81 Time

413,655,275/
62,450,176
= 6.62 Time

Asia Poultry Feeds (Pvt.) Limited

Ratio
Analysis

Net
Profit
Margin

Formula
Year 2011

Year 2010

Year 2009

117,194,362 *100/
1,504,584,908
= 7.79 %

21,753,147*100/
1,500,557,120
=1.45 %

16,323,919*100/
696,466,163
= 2.344 %

Asia Poultry Feeds (Pvt.) Limited

Ratio
Analysis

Gross
Profit
Ratio

Formula
Year 2011

Year 2010

Year 2009

153,591,665 *100/
1,504,584,908
= 10.21 %

103,821,141*100/
1,500,557,120
=6.92 %

70,764,349*100/
696,466,163
= 10.16 %

Asia Poultry Feeds (Pvt.) Limited

Ratio
Analysis

Return
on
Assets

Formula
Year 2011

Year 2010

Year 2009

115,327,780 *100/
1,406,008,090
= 8.20 %

20,795,926*100/
1,278,476,619
=5.63 %

16,323,919*100/
502,105,451
= 3.25 %

Asia Poultry Feeds (Pvt.) Limited

Ratio
Analysis

Operating
Profit
Margin

Formula
Year 2011

Year 2010

Year 2009

123,178,975 *100/
1,504,584,908
= 8.187 %

80,097,066*100/
1,500,557,120
=5.336 %

44,740,300*100/
696,466,163
= 6.424 %

Asia Poultry Feeds (Pvt.) Limited

Ratio
Analysis

Return on
Total
Equity

Formula
Year 2011

Year 2010

Year 2009

117,194,362 *100/
335,402,051
= 34.94 %

26,345,257*100/
220,074,261
=11.97 %

19,807,045*100/
62,450,176
= 31.71 %

Asia Poultry Feeds (Pvt.) Limited

Ratio
Analysis

Formula
Year 2011

Total
Assets
Turnover
Ratio

1,504,584,908/
1,406,008,090
= 1.07 Time

Year 2010

Year 2009

1500557120/
1,278,476,619
= 1.17 Time

696,466,163/
502105451
= 1.39 %

Asia Poultry Feeds (Pvt.) Limited

Ratio
Analysis

Formula
Year 2011

Earning
Per Share

151,397,685/
1,000,000
= Rs 151.4

Year 2010

Year 2009

34,203,323/
1,000,000
= Rs 34.2

12,450,176/ 500,000
= Rs 24.9

Asia Poultry Feeds (Pvt.) Limited

Ratio
Analysis

Debt to
Total
Assets
Ratio

Formula
Year 2011

Year 2010

Year 2009

1,070,606,049*100/
1,406,008,090
= 83 %

1,058,402,358*100/
1,278,476,619
= 83 %

413,655,275*100/
502,105,451
= 82 %

CONCLUSION
Asia Poultry Feed (Pvt.) Limited is slow growing firm.
Current, Quick and Debt Ratio shows Company is
week in respect of solvency.
Net Profit Ratio, GP Ratio and Return on Assets
shows that profitability position is also not good.
Assets Turnover Ratio describes Company is not
utilizing its assets effectively and efficiently.
Analysis of financial statements of the company revels
that Aggregate position of the company is not
satisfactory

RECOMMENDATIONS
o Company required to reduce investment in
Inventory, Debtors and Short term borrowing to
make current and quick ratio better
o Review its operating cycle and production process to
utilize its assets efficiently.
o Review financial policy ( Equity & Lone structure)
o Review Market force
o Review its working capital structure with operating
cycle
o Review its cost flows (cost analysis and cut in cost)
o Hard need to review business process

Questions & Answers

Thank You