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Common Size / Verticle Analysis

Kashmir Edible Oils Limited - Balance Sheet


Assets
Cash & Banks
Accounts Receivables
Invetory
Current Assets Others
Total Current Assets
Fixed Assets Net
Other Longterm Assets
Total Assets

2001
8,293,097
6,451,548
106,921,756
22,355,163
144,021,564
221,737,590
104,486
365,863,640

Regular (In Rupees)


2002
2003
100,587,785
7,805,161
2,786,257
205,569
127,277,389
119,282,984
42,387,978
54,802,297
273,039,409
182,096,011
214,199,365
212,592,290
507,185
578,685
487,745,959
395,266,986

2004
10,484,357
15,911,828
116,224,860
58,776,781
201,397,826
229,513,266
940,765
431,851,857

2005
10,870,942
1,692,232
20,092,443
44,576,828
77,232,445
230,539,794
668,285
308,440,524

2001
2.27
1.76
29.22
6.12
39.36
60.61
0.03
100.00

2002
20.62
0.57
26.10
8.69
55.98
43.92
0.10
100.00

Liabilities
Accounts & Bills Payables
Other Current Liabilities
Total Current Liabilities
Deffered Liabilities
Long Term Debts
Surplus on Revaluation
Total Liabilities
Share Capital
Accumulated Profit (Loss)
Total Shareholder`s Equity
Total Liabilities & Share Equity

2,755,301
89,398,088
92,153,389
1,874,600
190,461,989
52,233,851
336,723,829
80,000,000
(50,860,193)
29,139,807
365,863,636

153,788,300
55,222,133
209,010,433
1,711,997
183,039,281
51,758,367
445,520,078
80,000,000
(37,784,119)
42,215,881
487,735,959

73,427,723
76,683,284
150,111,007
31,806,028
15,000,000
26,264,622
223,181,657
80,000,000
128,670,200
208,670,200
431,851,857

1,754,359
62,821,243
64,575,602
32,139,635
24,333,281
121,048,518
80,000,000
107,692,006
187,692,006
308,740,524

0.75
24.44
25.19
0.51
52.06
14.28
92.04

31.53
11.31
42.85
0.35
37.53
10.61
91.34

0.66
29.74
30.40
7.95
40.05
7.00
85.40

17.00
17.76
34.76
7.37
3.47
6.08
51.68

7.96
100.00

8.66
100.00

14.60
100.00

48.32
100.00

2004
848,182,252
816,028,743
32,153,509
14,223,499
17,930,010
528,679
18,458,689
9,206,816
9,251,873
4,300,000
4,951,873
144,570,281
149,522,154

2005
396,373,489
407,751,591
(11,378,102)
11,715,487
(23,093,589)
57,423
(23,036,166)
7,046,755
(30,082,921)
2,082,185
(32,165,106)
9,255,571
(22,909,535)

2001
100.00
93.92
6.08
1.03
5.05
0.05
5.11
4.46
0.64
0.50
0.14
0.14

2002
100.00
92.90
7.10
1.82
5.28
0.20
5.48
3.17
2.31
0.50
1.81
1.81

2,599,349
117,556,759
120,156,108
31,408,931
158,289,281
27,671,252
337,525,572
80,000,000
(22,258,584)
57,741,416
395,266,988

Common Size %
2003
2004
1.97
2.43
0.05
3.68
30.18
26.91
13.87
13.61
46.07
46.63
53.78
53.15
0.15
0.22
100.00
100.00

Kashmir Edible Oils Limited - Income Statement

Sales
Cost of Sales
Gross Profit / (Loss)
Selling & Admin Expenses
Operating Profit
Other Income
Profit Before Interest & Taxes
Interest
Profit Before Taxes
Income Tax
Profit After Taxes
Profit from Extra-Ordinary Activities
Net Profit / (Loss)

2001
829,582,104
779,132,005
50,450,099
8,518,748
41,931,351
426,507
42,357,858
37,023,237
5,334,621
4,158,381
1,176,240
1,176,240

Regular (In Rupees)


2002
2003
723,129,370
892,093,101
671,766,118
850,607,432
51,363,252
41,485,669
13,151,612
12,889,474
38,211,640
28,596,195
1,427,727
1,623,794
39,639,367
30,219,989
22,937,944
4,989,479
16,701,423
25,230,510
3,625,349
19,556,049
13,076,074
5,674,461
13,076,074
5,674,461

TABLE 3-1

Common Size %
2003
2004
100.00
100.00
95.35
96.21
4.65
3.79
1.44
1.68
3.21
2.11
0.18
0.06
3.39
2.18
0.56
1.09
2.83
1.09
2.19
0.51
0.64
0.58
17.04
0.64
17.63

Common Size %
2005
3.52
0.55
6.52
14.45
25.04
74.74
0.22
100.00
0.57
20.35
20.92
10.41
7.88
39.21

60.79
100.00
Common Size %
2005
100.00
102.87
(2.87)
2.96
(5.83)
0.01
(5.81)
1.78
(7.59)
0.53
(8.11)
2.34
(5.78)

Index / Horizontal Analysis


Kashmir Edible Oils Limited - Balance Sheet
Assets
Cash & Banks
Accounts Receivables
Invetory
Current Assets Others
Total Current Assets
Fixed Assets Net
Other Longterm Assets
Total Assets

2001
8,293,097
6,451,548
106,921,756
22,355,163
144,021,564
221,737,590
104,486
365,863,640

Regular (in Rupees)


2002
2003
100,587,785
7,805,161
2,786,257
205,569
127,277,389
119,282,984
42,387,978
54,802,297
273,039,409
182,096,011
214,199,365
212,592,290
507,185
578,685
487,745,959
395,266,986

2004
10,484,357
15,911,828
116,224,860
58,776,781
201,397,826
229,513,266
940,765
431,851,857

2005
10,870,942
1,692,232
20,092,443
44,576,828
77,232,445
230,539,794
668,285
308,440,524

2001
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

2002
1,212.91
43.19
119.04
189.61
189.58
96.60
485.41
133.31

Liabilities
Accounts & Bills Payables
Other Current Liabilities
Total Current Liabilities
Deffered Liabilities
Long Term Debts
Surplus on Revaluation
Total Liabilities
Share Capital
Accumulated Profit (Loss)
Total Shareholder`s Equity
Total Liabilities & Share Equity

2,755,301
89,398,088
92,153,389
1,874,600
190,461,989
52,233,851
336,723,829
80,000,000
(50,860,193)
29,139,807
365,863,636

153,788,300
55,222,133
209,010,433
1,711,997
183,039,281
51,758,367
445,520,078
80,000,000
(37,784,119)
42,215,881
487,735,959

73,427,723
76,683,284
150,111,007
31,806,028
15,000,000
26,264,622
223,181,657
80,000,000
128,670,200
208,670,200
431,851,857

1,754,359
62,821,243
64,575,602
32,139,635
24,333,281
121,048,518
80,000,000
107,692,006
187,692,006
308,740,524

100.00
100.00
100.00
100.00
100.00
100.00
100.00

5,581.54
61.77
226.81
91.33
96.10
99.09
132.31

94.34
131.50
130.39
1,675.50
83.11
52.98
100.24

2,664.96
85.78
162.89
1,696.68
7.88
50.28
66.28

100.00
100.00

144.87
133.31

198.15
108.04

716.10
118.04

2004
848,182,252
816,028,743
32,153,509
14,223,499
17,930,010
528,679
18,458,689
9,206,816
9,251,873
4,300,000
4,951,873
144,570,281
149,522,154

2005
396,373,489
407,751,591
(11,378,102)
11,715,487
(23,093,589)
57,423
(23,036,166)
7,046,755
(30,082,921)
2,082,185
(32,165,106)
9,255,571
(22,909,535)

2001
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

2002
87.17
86.22
101.81
154.38
91.13
334.75
93.58
61.96
313.08
87.18
1,111.68
1,111.68

2,599,349
117,556,759
120,156,108
31,408,931
158,289,281
27,671,252
337,525,572
80,000,000
(22,258,584)
57,741,416
395,266,988

Index %
2003
94.12
3.19
111.56
245.14
126.44
95.88
553.84
108.04

2004
126.42
246.64
108.70
262.92
139.84
103.51
900.37
118.04

Kashmir Edible Oils Limited - Income Statement

Sales
Cost of Sales
Gross Profit / (Loss)
Selling & Admin Expenses
Operating Profit
Other Income
Profit Before Interest & Taxes
Interest
Profit Before Taxes
I. Tax
Profit After Taxes
Profit from Extra-Ordinary Activities
Net Profit / (Loss)

2001
829,582,104
779,132,005
50,450,099
8,518,748
41,931,351
426,507
42,357,858
37,023,237
5,334,621
4,158,381
1,176,240
1,176,240

Regular (In Rupees)


2002
2003
723,129,370
892,093,101
671,766,118
850,607,432
51,363,252
41,485,669
13,151,612
12,889,474
38,211,640
28,596,195
1,427,727
1,623,794
39,639,367
30,219,989
22,937,944
4,989,479
16,701,423
25,230,510
3,625,349
19,556,049
13,076,074
5,674,461
13,076,074
5,674,461

TABLE 2-1

Index %
2003
107.54
109.17
82.23
151.31
68.20
380.72
71.34
13.48
472.96
470.28
482.42
482.42

2004
102.24
104.74
63.73
166.97
42.76
123.96
43.58
24.87
173.43
103.41
420.99
12,711.87

Index %
2005
131.08
26.23
18.79
199.40
53.63
103.97
639.59
84.30
63.67
70.27
70.07
1,714.48
46.59
35.95

644.11
84.39

Index %
2005
47.78
52.33
(22.55)
137.53
(55.07)
13.46
(54.38)
19.03
(563.92)
50.07
(2,734.57)
(1,947.69)

Current Ratio =

Current Ratio

Acid Test Ratio

Current Assets
Current Liabilities
2005
92,532,445
64,575,602
1.43

2004
201,397,826
135,111,007
1.49

2003
182,096,011
120,156,106
1.52

Liquid (Quick) Assets*


Current Liabilities
*Note- Quick Assets = Current Assets - Inventories

Acid Test Ratio

Debt to Equity
Ratio

Debt to Equity Ratio

Debts to Total
Assets Ratio

Debt to Equity Ratio

Coverage Ratio

2005
72,440,002
64,575,602
1.12

2004
85,172,966
135,111,007
0.63

2003
62,813,027
120,156,106
0.52

Total Debts*
Shareholder`s Equity
*Note-

Total Debts =

2005
64,575,602
187,692,006
0.34

2004
165,111,007
208,670,200
0.79

Long Term Debts + Current Liabilities


2003
278,445,387
57,741,416
4.82

Total Debts
Total Assets
2005
64,575,602
323,740,524
0.20

2004
165,111,007
431,851,857
0.38

2003
278,445,387
395,266,986
0.70

Earning Before Interest and Taxes (EBIT)


Interest Expenses
2005
22,731,087

2004
155,273,533

2003
30,273,789

Coverage Ratio

Receivable Turn
over Ratio (RT)

7,351,834
3.09

9,423,329
16.48

5,079,279
5.96

Annual Net Credit Sales*


Receivables
*Note- We assume Net sales as Annual Net Credit Sales

Receiveable Turnover Ratio

Receivable Turn over


Ratio in Days(RTD)

2005
396,373,489
15,281,607
25.94

Payable Turn over


Ratio

Payable Turnover Ratio

2004

365
25.94
14.07

2005
353,488,748
1,754,359
201.49

365
7.76
47.04

365
7.87
46.38

2004
704,763,955
73,427,723
9.60

2003
794,989,522
2,599,349
305.84

Days in the Year


Payable Turnover
2005

Inventory Turnover
Ratio

2003

Annual Credit Purchases


Accounts Payables

Payable Turn over in


days (PTD)

PTD (Days)

2003
892,093,101
113,385,812
7.87

Days in the Year


Receivable Turnover(RT)
2005

RTD (Days)

2004
848,182,252
109,241,213
7.76

2004

365
201.49
2

2003
365
9.60
38

365
305.84
1

Cost of Goods Sold


Inventory
2005
407,751,591

2004
816,028,743

2003
850,607,432

Invertory TurnOver Ratio

15,281,607
26.68

2005

2004

365
26.68
14

Profitability Ratio in
Relation to Sales

Profitability Ratio - Sales

Net Profit Margin

Net Profit Margin

Profitability Ratio in
Relation to Investment

2003
365
7.47
49

365
7.50
49

Net Sales
Total Assets

Total Assets (or


Capital) TurnOver

Total Assets Turnover

113,385,812
7.50

Days in theYear
Inventory Turnover

Inventory Turnover
in Days

ITD (Days)

109,241,213
7.47

2005
396,373,489
323,740,524
1.22

2004
848,782,252
431,851,857
1.97

2003
892,093,101
395,266,986
2.26

Net Sales - Cost of Goods Sold (Gross Profit)


Net Sales
2005
(11,378,102)
396,373,489
-2.87%

2004
32,153,509
848,182,252
3.79%

2003
41,485,669
892,093,101
4.65%

Net Profit after Taxes


Net Sales
2005
(22,909,575)
396,373,489
-5.78%

2004
149,522,154
848,182,252
17.63%

2003
5,674,461
892,093,101
0.64%

Net Profit after Taxes


Total Assets
2005
(22,909,575)
323,740,524

2004
149,522,154
431,851,857

2003
5,674,461
395,266,896

Profit Ratio-Investment

Return on Equity

Return on Equity

-7.08%

34.62%

1.44%

Net Profit after Taxes


Shareholder`s Equity
2005
(22,909,575)
187,695,006
-12.21%

2004
149,522,154
208,670,200
71.65%

2003
5,674,461
57,741,416
9.83%

2002
273,039,409
209,020,433
1.31

2001
144,021,561
130,453,793
1.10

ent Assets - Inventories


2002
145,762,020
209,020,433
0.70

2001
37,099,808
130,453,793
0.28

g Term Debts + Current Liabilities


2002
392,059,714
42,215,881
9.29

2001
282,615,378
29,139,807
9.70

2002
392,059,714
487,039,409
0.80

2001
282,615,378
365,863,363
0.77

and Taxes (EBIT)


enses
2002
39,639,367

2001
42,357,858

22,937,944
1.73

37,023,237
1.14

as Annual Net Credit Sales


2002
723,129,370
2,786,257
259.53

2002

2001
829,582,104
6,451,548
128.59

2001

365
259.53
1.41

365
128.59
2.84

2002
649,065,255
153,798,300
4.22

2001
740,322,024
2,755,301
268.69

2002

2001
365
4.22
86

365
268.69
1

2002
671,766,118

2001
779,132,005

120,707,164
5.57

2002

99,301,000
7.85

2001
365
5.70
64

365
7.85
46

2002
723,129,370
487,745,959
1.48

2001
829,582,104
365,863,636
2.27

Sold (Gross Profit)


s
2002
51,363,252
723,129,370
7.10%

X 100
2001
50,450,049
829,582,104
6.08%

X 100
2002
13,076,074
723,129,370
1.81%

2001
1,176,240
829,582,104
0.14%

X 100
2002
13,076,074
487,745,959

2001
1,176,240
365,863,636

2.68%

2002
13,076,074
42,215,881
30.97%

0.32%

2001
1,176,240
29,139,807
4.04%

Current Ratio =

Current Ratio

Acid Test (Quick)


Ratio =

Current Assets
Current Liabilities
2001
144,021,561
130,453,793
1.10

2002
273,039,409
209,020,433
1.31

2003
182,096,011
120,156,106
1.52

2004
201,397,826
135,111,007
1.49

2005
92,532,445
64,575,602
1.43

Liquid (Quick) Assets*


Current Liabilities
*Note- Quick Assets = Current Assets - Inventories

Acid Test Ratio

Debt to Equity Ratio =

2001
37,099,808
130,453,793
0.28

2002
145,762,020
209,020,433
0.70

2003
62,813,027
120,156,106
0.52

2004
85,172,966
135,111,007
0.63

2005
72,440,002
64,575,602
1.12

Total Debts*
Shareholder`s Equity
*Note- Total Debts = Long Term Debts + Current Liabilities

Debt to Equity Ratio

Debts to Total Assets


Ratio =

Debt to Equity Ratio

Interest Coverage
Ratio =

Coverage Ratio

Receivable Turn
over Ratio (RT) =

2001
282,615,378
29,139,807
9.70

2002
392,059,714
42,215,881
9.29

2003
278,445,387
57,741,416
4.82

2004
165,111,007
208,670,200
0.79

2005
64,575,602
##########
0.34

2003
278,445,387
395,266,986
0.70

2004
165,111,007
431,851,857
0.38

2005
64,575,602
##########
0.20

Total Debts
Total Assets
2001
282,615,378
365,863,363
0.77

2002
392,059,714
487,039,409
0.80

Earning Before Interest and Taxes (EBIT)


Interest Expenses
2001
42,357,858
37,023,237
1.14

2002
39,639,367
22,937,944
1.73

2003
30,273,789
5,079,279
5.96

2004
155,273,533
9,423,329
16.48

2005
22,731,087
7,351,834
3.09

Annual Net Credit Sales*


Receivables
*Note- We assume Net sales as Annual Net Credit Sales

RT Ratio

2001
829,582,104
4,427,124
187.39

2002
723,129,370
4,618,903
156.56

2003
892,093,101
1,495,913
596.35

2004
848,182,252
8,058,699
105.25

2005
##########
16,452,030
24.09

Receivable Turn
over Ratio in =
Days(RTD)

Days in the Year


Receivable Turnover(RT)
2001

RTD (Days)

2001
625,980,838
36,398,665
17.20

2002

2004
704,849,065
38,013,536
18.54

2005
##########
37,591,041
9.40

2003
365
8.29
44

2004

365
10.17
36

365
18.54
20

2003
850,607,432
117,046,488
7.27

2004
816,028,743
111,313,513
7.33

2005
365
9.40
39

Cost of Goods Sold


Inventory
2001
779,132,005
126,943,145
6.14

2002
671,766,118
110,004,082
6.11

2005
##########
62,261,410
6.55

Days in theYear
Inventory Turnover
2001

2002
365
6.14
59

2003
365
6.11
60

2004
365
7.27
50

365
7.33
50

2003
892,093,101
395,266,986
2.26

2004
848,782,252
431,851,857
1.97

2005
365
6.55
56

Net Sales

Total Assets (or =


Capital) TurnOver

Gross Profit Margin =

2002
649,150,365
78,276,801
8.29

365
17.20
21

Inventory Turnover
in Days

Total Assets Turnover

2003
795,074,632
78,198,825
10.17

2005
365
24.09
15

Payable Turnover

Inventory Turnover
Ratio =

ITD (Days)

365
105.25
3

Days in the Year

2001

Invertory TurnOver Ratio

2004

365
596.35
1

Accounts Payables

Payable Turn over


in days (PTD) =

PTD (Days)

2003

365
156.56
2

Annual Credit Purchases

Payable Turn over


Ratio =

Payable Turnover Ratio

2002

365
187.39
2

Total Assets
2001
829,582,104
365,863,636
2.27

2002
723,129,370
487,745,959
1.48

Net Sales - Cost of Goods Sold (Gross Profit)

2005
##########
##########
1.22

X 100

Gross Profit Margin =

Profitability Ratio - Sales

Net Profit Margin =

Net Profit Margin

Profitability Ratio in =
Relation to Investment

Profit Ratio-Investment

Return on Equity =

Return on Equity

X 100

Net Sales
2001
50,450,049
829,582,104
6.08%

2002
51,363,252
723,129,370
7.10%

Net Profit after Taxes


Net Sales
2001
1,176,240
829,582,104
0.14%

2004
32,153,509
848,182,252
3.79%

2005
(11,378,102)
##########
-2.87%

2004
149,522,154
848,182,252
17.63%

2005
(22,909,575)
##########
-5.78%

2003
5,674,461
395,266,896
1.44%

2004
149,522,154
431,851,857
34.62%

2005
(22,909,575)
##########
-7.08%

2003
5,674,461
57,741,416
9.83%

2004
149,522,154
208,670,200
71.65%

2005
(22,909,575)
##########
-12.21%

X 100

2002
13,076,074
723,129,370
1.81%

Net Profit after Taxes


Total Assets
2001
1,176,240
365,863,636
0.32%

2003
41,485,669
892,093,101
4.65%

2003
5,674,461
892,093,101
0.64%

X 100

2002
13,076,074
487,745,959
2.68%

Net Profit after Taxes


Shareholder`s Equity
2001
1,176,240
29,139,807
4.04%

2002
13,076,074
42,215,881
30.97%

SS Oil Mills Ltd & Punjab Oil Mills Ltd


Industry Median
Current Ratios

1.14

Acid Test Ratio

0.46

Debt to Equity Ratio

2.29

Debt to Total Assets

0.53

Interest Coverage Ratio

-0.07

Receivable Turnover Ratio

25.65

Receivable Turnover Days


Payable Turnover Ratio
Payable Turnover Days
Inventory Turnover Ratio
Inventory Turnover Days
Total Assets Turnover Days

14 Days
20.17
18 Days
6.64
55 Days
2.17

Gross Profit Ratio

2.93%

Net Profit Margin

-1.62%

Return on Investment

-3.51%

Return on Equity

-15.17%

Trend Analysis
Selected Financial Ratios of Kashmir Edible Oils Limited for Fiscal Years 2001 - 2005

2001

Kashmir Edible Oils Limited


2002
2003

2004

2005

Industry
Median
2005

Liquidity
Current Ratios
Acid Test Ratio

1.10
0.28

1.31
0.70

1.52
0.52

1.49
0.63

1.43
1.12

1.14
0.46

9.70
0.77

9.29
0.80

4.82
0.70

0.79
0.38

0.34
0.20

2.29
0.53

1.14

1.73

5.96

16.48

3.09

-0.07

2
21
59
2.27

2
44
60
1.48

1
36
50
2.26

3
20
50
1.97

15
39
56
1.22

6.08%
0.14%
0.32%
4.04%

7.10%
1.81%
2.68%
30.97%

4.65%
0.64%
1.44%
9.83%

3.79%
17.63%
34.62%
71.65%

-2.87%
-5.78%
-7.08%
-12.21%

Leverage
Debt to Equity Ratio
Debt to Total Assets

Coverage
Interest Coverage Ratio

Activity
Receivable Turnover Days
Payable Turnover Days
Inventory Turnover Days
Total Assets Turnover

14 Days
18 Days
55 Days
2.17

Profitability
Gross Profit Ratio
Net Profit Margin
Return on Investment
Return on Equity

TABLE 4-1

2.93%
-1.62%
-3.51%
-15.17%

Behaviour of Allocation of funds to different Assets


Kashmir Edible Oils Limited for Fiscal Years 2001 - 2005
Assets
2001

Year
2002

2003

2004

2005

Allocation in Amount
Fixed Assets
Long Term Investmetns
Current Assets

221,737,590
104,486
144,021,564

214,199,365
507,185
273,039,409

212,592,290
578,685
182,096,011

229,513,266
940,765
201,397,826

230,539,794
668,285
77,232,445

Total Assets

365,863,640

487,745,959

395,266,986

431,851,857

308,440,524

Year

Allocation in Percentage(%)
Fixed Assets
Current Assets
Long Term Investmetns

Total Assets

2001
60.61%
39.36%
0.03%

2002
43.92%
55.98%
0.10%

2003
53.78%
46.07%
0.15%

2004
53.15%
46.63%
0.22%

2005
74.74%
25.04%
0.22%

100.00%

100.00%

100.00%

100.00%

100.00%

Allocation of Funds to Different Assets

Percentage of Funds Allocation

80.00%
70.00%
60.00%
50.00%

Fixed Assets

40.00%

Current Assets

30.00%

Long Term Investmetns

20.00%
10.00%
0.00%
2001

2002

2003

2004

2005

Years

Allocation of Funds to Different Assets

80.00%
Percentage 60.00%

Percentage 60.00%
of Funds 40.00%
Allocation
20.00%
Allocation
of Funds

Fixed Assets

Current Assets

2005

2004

2003

Years

2002

2001

0.00%

Long Term Investmetns

erm Investmetns

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