AFS

ASSIGNMENT
ANALYSIS OF FINANCIAL STATEMENT
MEHRAN SUGAR MILLS LIMITED

MIRPURKHAS SUGAR MILLS LIMITED
MIRZA SUGAR MILLS LIMITED
Management Science
Submitted by:
Ali Zahoor
MBA-5 (A)
31366
Supervised by:
Sir Danish Iqbal
TABLE OF CONTENT
MEHRAN SUGAR MILLS LIMITED
-
Introduction..3
Income statement5
Balance sheet..6
Horizontal analysis
Income statement...7
Balance sheet.8
Vertical analysis
Income statement9
Balance sheet10
Ratio analysis12
Interpretation.13
Notes of financial statement17

-
Introduction....26
Income statement.27
Balance sheet28
Horizontal analysis
Income statement.30
Balance sheet31
Vertical analysis
Income statement.33
Balance sheet34
Ratio analysis35
Interpretation.36
Notes of financial statement41
MIRZA SUGAR MILLS LIMITED

- Introduction50
- Income statement.51
- Balance sheet52
- Horizontal analysis
Income statement.54
Balance sheet55
- Vertical analysis
Income statement.56
Balance sheet57
-
Ratio analysis59
Interpretation.60
Notes of financial statement...64
History
Mehran has a long, rich heritage with Haji Hasham and his son Usman's vision to set up one of
Pakistan's first sugar factories. Haji Hasham started his business career by trading in commodities
in the 1930's in the Indo Subcontinent.
Mehran sugar has grown to become a leading and diversified company today.
Key dates in our history
1965
The Company is incorporated as a public limited company.
1968
Shares of the Company are listed on the Karachi Stock Exchange.
1968
Plant commences trial production with a crushing capacity of 1,500 TCD. Complete plant is procured
from M/s. Mitsubishi Japan.
1978
Steady re-engineering increased the crushing capacity to 3,500 TCD.
1983
Recognized by the Karachi Stock Exchange as one of the Top 25 Companies for the first time.
1986
Recognized by the Karachi Stock Exchange for its Top 25 Company Award.
1994
Second parallel milling unit commenced production, increasing crushing capacity to 7,000 TCD.
1998
The Company is awarded ISO-9002 QMS Certification.
2001
Company touched billion Rupees in sales.
2006
The Company crosses the Rs. 2.0 Billion turnover sales milestone.
2007
The joint venture distillery-Unicol Limited commenced commercial production of Ethanol.
2010
The Company crosses the Rs. 4.0 Billion sales milestone.
2013
Crushing Capacity increased to 10,000 M. Tons Record highest sugar production,
turnover and profits.
Vision
Focusing on customers and shareholders satisfaction with challenging spirit and flexibility, we are
dedicated to have eminent position in manufacturing and supplying quality white refined sugar and
allied products and thereby play a vital role in the social economic development of Pakistan.
Mission
we the management of Enterprise, have set forth our belief as to the purpose for which the Company
is established and the principles under which it should operate.
We pledge our efforts to the accomplishment of the purpose within the agreed principles.
Sustainability
At Mehran we always work towards ensuring we run a sustainable business.
Our core cane procurement area is one of the richest and most densely populated cane zones in
Pakistan. The quality of land and vast irrigation network in our vicinity allows our farmer to have a
higher farm yield than the countries average. It also allows Mehran to have one of the highest factory
yields in the country. This allows us to be a competitive sugar producer.
Our sugar processing facility is also one of the most efficient in Pakistan. Our crushing capacity is
above the average size of mills in the country thus allowing us economies of scale. Our investment in
energy and plant efficiency also makes us a low cost and long term player.
Our final product, sugar, continues to remain a necessity without any competing alternative. Also, a
growing population in Pakistan and the subsequent consumption growth continues to ensure that
demand for sugar remains strong.
Our investments in ethanol, farming and other blue chip local companies listed on the KSE allows us
to have a diversified balance sheet which can sustain any cyclical downturn in our core business.
We follow recognised high standards, work with industry leading service providers, and engage in
credible initiatives in our pursuit of sustainability. Our credibility and goodwill with our investors,
suppliers and creditors allows us to continue to remain a sustainable business.
We actively monitor, mitigate and exploit the market, regulatory and economic issues related to and
arising from sustainability.
Mehran Sugar Mills Limited

Profit & Loss Account
For the year ended September 30, 2013 to 2009
2013
2012
2011
2010
2009
Turnover
5,797,469,558
4,150,108,933
4,355,038,305
3,841,344,807
2,387,445,858
Cost of sales
5,215,459,529
3,771,972,032
3,773,642,501
3,366,565,888
1,994,378,239
582,010,029
378,136,901
581,395,804
474,778,919
93,923,771
27,576,075
5,163,852
5,442,782
5,367,298
Administrative expenses
Other operating
expenses
132,299,256
102,127,246
103,333,544
81,953,859
61,592,846
15,704,414
14,010,238
43,544,444
33,377,182
77,240,035
Other operating income
149,200,939
63,865,561
80,259,085
39,076,640
22,536,783
Finance cost
Share of Profit from an
associate
186,842,345
116,319,761
133,757,171
73,800,473
65,333,093
128,580,477
171,666,322
40,640,865
1,848,209
39,621,871
Profit before tax
431,021,659
353,635,464
416,496,743
321,129,472
245,693,001
33,522,605
81,079,316
93,640,144
79,143,207
69,780,223
397,499,054
272,556,148
322,856,599
241,986,265
175,912,778
Gross profit
Distribution costs
Taxation
Profit after taxation
Basic & diluted earnings
per share
Number of Shares
Market Price
393,067,619
15.70
13.02
18.66
16.90
14.89
25,321,143
69.99
20,926,565
42.30
17,294,682
54.78
14,293,125
52.70
11,812,500
55.00
Meharn Sugar Mills Limited

Balance Sheet
As at September 30, 2013 to 2009
ASSETS
NON-CURRENT
ASSETS
Property, plant &
equipment
Long term investment
Long term deposits
Total Fixed Assets
2013
2012
2011
1,509,202,543
1,388,678,801
1,088,780,908
847,953,503
512,174,648
376,834,660
216,718,336
176,077,471
174,229,262
4,640,900
8,545,735
3,992,400
1,770,154,361
1,314,044,979
1,028,023,374
505,415,137
2,803,650
2,017,421,330
2010
2009
1,992,400
688,396,310
CURRENT ASSETS
Biological assets
56,295,200
57,424,050
43,315,568
13,347,530
8,748,440
Stores & spare parts
67,024,769
73,198,231
77,795,462
56,961,715
60,310,523
1,095,298,026
1,458,570,403
253,836,976
141,296,744
9,963,768
73,171,715
4,683,163
90,560,989
112,101,426
75,491,524
33,539,996
31,029,412
84,487,408
41,702,799
15,985,845
20,359,105
14,669,595
2,382,059
1,313,826
3,297,801
1,545,595
472,171
83,505,783
63,760,617
162,988,889
91,480,776
39,053,176
292,503,684
204,396,724
23,219,053
Cash & bank balances
6,114,516
144,769,742
11,943,333
113,747,245
1,341,095
Total Current Assets
1,298,614,450
1,767,463,801
1,805,467,996
707,367,775
430,048,325
TOTAL ASSETS
3,316,035,780
3,537,618,162
3,119,512,975
1,735,391,149
253,211,430
209,265,650
172,946,820
142,931,250
118,125,000
1,132,337,395
829,037,028
619,891,757
379,483,109
215,556,120
1,385,548,825
1,038,302,678
792,838,577
522,414,359
333,681,120
454,241,072
380,312,500
175,000,000
203,750,000
85,714,000
16,068,494
12,267,661
14,058,991
16,221,811
4,917,252
7,564,191
6,438,840
5,681,987
5,742,073
4,867,802
Stock-in-trade
Trade debts - unsecured
Loans & advances unsecured
Trade deposits & short
term prepayments
Other receivables
Short term investment
Advance income tax
688,431,560
563,077
961,243
1,118,444,635
EQUITY & LIABILITIES

SHARES CAPITAL &
RESERVES
Issued, subscribed &
paid-up capital
Reserves
Total Shareholder
Equity
NON-CURRENT
LIABILITIES
Long-term financing secured
Liabilities against assets
subject to finance leases
Deffered liabilities
deffered taxation
240,536,912
230,902,814
158,054,830
116,249,988
87,812,369
Provision
Total Long term
Liabilities
119,290,919
119,290,919
119,290,919
119,290,919
119,290,919
837,701,588
749,212,734
472,086,727
461,254,791
302,602,342
CURRENT LIABILITIES
Trade & other payables
455,497,657
Accrued mark-up
Short term borrowings secured
Current maturity of
liabilities againts assets
Current portion of long
term financing
Provision for market
committee fee
Income tax paybles
Sales tax / excise duty
payble
1,169,363,442
1,634,127,427
606,527,976
310,757,518
22,003,620
14,060,321
9,627,061
10,806,928
10,261,788
397,176,948
325,428,839
29,998,978
70,522,403
126,071,428
147,187,500
6,349,843
7,374,302
1,081,538
12,269,035
7,119,185
128,750,000
40,000,000
36,428,800
59,155,823
49,999,163
42,777,959
32,700,000
32,700,000
20,695,628
14,824,491
36,944,300
12,259,753
9,489,324
20,610,856
20,409,126
Total Current Liabilities
1,092,785,367
1,750,102,750
1,854,587,671
751,721,999
482,161,173
Total Liabilities
1,930,486,955
2,499,315,484
2,326,674,398
1,212,976,790
784,763,515
TOTAL EQUITY &

LIABILITIES
3,316,035,780
3,537,618,162
3,119,512,975
1,735,391,149
1,118,444,635
2012
2011
2010
Profit & loss Account

Horizontal Analysis
2013
Turnover
39.69
(4.71)
13.37
60.90
Cost of sales
38.27
(0.04)
12.09
68.80
Gross profit
53.92
(34.96)
22.46
20.79
240.60
434.02
(5.12)
1.41
29.54
(1.17)
26.09
33.06
12.09
(67.83)
30.46
(56.79)
133.62
(20.43)
105.39
73.39
60.63
(13.04)
81.24
12.96
(25.10)
322.40
2,098.93
(95.34)
21.88
(15.09)
29.70
30.70
(58.65)
(13.41)
18.32
13.42
45.84
(15.58)
33.42
37.56
Distribution costs
Administrative
expenses
Other operating
expenses
Other operating
income
Finance cost
associate
Profit before tax
Taxation
Balance Sheet
Horizontal Analysis
2013
ASSETS
NON-CURRENT
ASSETS
Property, plant &
equipment
2012
2011
2010
8.68
27.54
28.40
65.56
34.12
73.88
23.08
1.06
(39.59)
(45.69)
114.05
100.38
13.97
34.71
27.82
49.34
Biological assets
(1.97)
32.57
224.52
52.57
(8.43)
(5.91)
36.57
(5.55)
Stock-in-trade
(37.15)
(24.91)
474.61
79.65

term prepayments
(86.38)
1,462.44
(94.83)
(19.22)
125.08
8.09
(63.27)
102.59
(21.48)
38.78
515.84
81.31
Other receivables
113.37
227.34
(16.14)
(41.42)
30.97
(60.88)
78.17
134.25
Advance income tax
43.11
(95.78)
1,112.14
(89.50)
8,381.67
(26.53)
(2.10)
155.24
64.49
TOTAL ASSETS
(6.26)
13.40
79.76
55.16

Long term deposits
Total Fixed Assets
CURRENT ASSETS

SHARES CAPITAL &
RESERVES
paid-up capital
Reserves
Total Shareholder
Equity
21.00
36.58
21.00
33.74
21.00
63.35
21.00
76.05
33.44
30.96
51.76
56.56
19.44
117.32
(14.11)
137.71
30.98
(12.74)
(13.33)
229.90
17.48
13.32
(1.05)
17.96
deffered taxation
4.17
46.09
35.96
32.38
Total Long term

Liabilities
11.81
58.70
2.35
52.43
NON-CURRENT
LIABILITIES
CURRENT LIABILITIES
(61.05)
(28.44)
169.42
95.18
Accrued mark-up
Current maturity of
term financing
committee fee
payble
56.49
46.05
(10.92)
5.31
22.05
(57.46)
(14.35)
2,217.97
(13.89)
581.83
72.34
(94.47)
221.88
9.80
18.31
16.88
30.82
(44.21)
201.35
29.20
(53.50)
(37.56)
(5.63)
146.71
55.91
Total Liabilities
(22.76)
7.42
91.82
54.57
(6.26)
13.40
79.76
55.16
TOTAL EQUITY &

LIABILITIES
Profit & loss

Account
Vertical Analysis
2013
2012
2011
2010
2009
Turnover
100.00
100.00
100.00
100.00
100.00
Cost of sales
(89.96)
(90.89)
(86.65)
(87.64)
(83.54)
Gross profit
10.04
9.11
13.35
12.36
16.46
Distribution costs
(1.62)
(0.66)
(0.12)
(0.14)
(0.22)
(2.28)
(2.46)
(2.37)
(2.13)
(2.58)
Other operating expenses
(0.27)
(0.34)
(1.00)
(0.87)
(3.24)
2.57
1.54
1.84
1.02
0.94
(3.22)
(2.80)
(3.07)
(1.92)
(2.74)
2.22
4.14
0.93
0.05
1.66
7.43
8.52
9.56
8.36
10.29
(0.58)
(1.95)
(2.15)
(2.06)
(2.92)
6.86
6.57
7.41
6.30
7.37

Finance cost
associate
Profit before tax
Taxation
Balance Sheet
Vertical Analysis
2013
ASSETS
NON-CURRENT
ASSETS
Property, plant &
equipment
Long term deposits
Total Fixed Assets
CURRENT ASSETS
Biological assets
Stock-in-trade
term prepayments
Other receivables
Advance income tax
TOTAL ASSETS
2012
2011
2010
2009
45.51
15.24
0.08
39.25
10.65
0.13
34.90
6.95
0.27
48.86
10.15
0.23
45.79
15.58
0.18
1.70
2.02
20.76
0.30
1.62
2.07
30.96
2.07
1.39
2.49
46.76
0.15
0.77
3.28
14.63
5.22
0.78
5.39
12.63
10.02
2.28
0.95
0.99
4.87
3.73
0.48
0.10
2.52
8.82
0.18
39.16
0.58
0.04
1.80
5.78
4.09
49.96
0.47
0.02
5.22
0.14
0.03
5.27
100.00
0.38
57.88
6.55
40.76
0.12
0.09
3.49
2.08
0.12
38.45
100.00
100.00
100.00
100.00
7.64
34.15
5.92
23.43
5.54
19.87
8.24
21.87
10.56
19.27
41.78
29.35
25.42
30.10
29.83
13.70
10.75
5.61
11.74
7.66
0.48
0.23
7.25
3.60
0.35
0.18
6.53
3.37
0.45
0.18
5.07
3.82
0.93
0.33
6.70
6.87
0.44
0.44
7.85
10.67
25.26
21.18
15.13
26.58
27.06
13.74
0.66
33.06
0.40
52.38
0.31
34.95
0.62
27.78
0.92
11.98
9.20
1.73
6.31
3.80
4.16
0.20
0.42
0.10
0.37
0.20
4.13
2.30
3.26
1.78
-
1.41
-
1.37
0.66
1.88
0.85
2.92
-
0.62
32.95
1.04
49.47
0.39
59.45
0.55
43.32
1.82
43.11
58.22
70.65
74.58
69.90
70.17
100.00
100.00
100.00
100.00
100.00

SHARES CAPITAL &
RESERVES
paid-up capital
Reserves
Total Shareholder
Equity
NON-CURRENT
LIABILITIES
deffered taxation
Provision
Total Long term
Liabilities
CURRENT LIABILITIES
Accrued mark-up
Current maturity of
term financing
committee fee
Income tax paybles
payble
Total Liabilities
TOTAL EQUITY &
LIABILITIES
10
S.no
Formula's
Profibility Ratios
Assets Turnover
Total Net Sales/Total Assets *100
Rate of return on total assets
Net Profit After Tax/Total Assets *100
Rate of return on S.H.E
Net Profit/Total S.H.E *100
Equity Multiplier
Total Assets/Total S.H.E *100
Rate of return on capital employed
EBIT/Capital Employed *100
Net Profit Margin
Net Profit After Tax/Sales *100
Rate of cost of good sold
Cost of Good Sold/Total Net Sales *100
Rate of gross profit
Gross Profit/Total Net Sales *100
Rate of operating expense
Operating Expenses/Total Net Sales *100
10
Rate of net profit
Net Profit/Total Net Sales *100
Liquidtiy Ratos
11
Working Capital
Current Assets - Current Liabilities
12
Current Ratio
Current Assets/Current Liabilities
13
Quik Ratio
Quick Asstes/Current Liabilities
14
Inventory Turnover
Cost of Good Sold/Average Inventory
15
Days on Inventory
365/Times
16
A/C Receivable Turnover
Net Credit Sales/Average A/C Receivable
17
Days on A/C Receivables
365/Times
18
A/C Payable payment
Net Credit Purchases/Average A/C Payable
19
Days on A/C Payable
365/Times
20
Total Days
Debt & Gearing Ratios
(Inventory Days + A/R Days) - A/P Days
21
Debt Ratio
Total Liabilities/Total Assets
22
Debt to Equity Ratio
23
Gearing Ratio
Long term Debt/Total S.H.E *100

L.T.D + Preferred Share/L.T.D + S.H.E + Pref.
Share *100
24
Interest Cover
Invertor's Ratios
EBIT/Interest Expenses
25
Earning per share
Net Profit-Prefered Dividend/No. of Shares
26
Price earning ratio
Market Price/Earning per share
27
Dividend Yield
Dividend per share/ Market Price
28
Book Value Per Share
Total S.H.E/No. of share
11
Mehran Sugar Mills Limited

Ratio Analysis
2013
2012
2011
2010
2009
Average
Industry
1.75
1.17
1.40
2.21
2.13
1.73
1.16
11.99
7.70
10.35
13.94
15.73
11.94
4.44
28.69
26.25
40.72
46.32
52.72
38.94
16.00
239.33
340.71
393.46
332.19
335.18
328.17
298.00
1.51
4.54
7.40
8.05
10.97
6.49
8.12
6.86
6.57
7.41
6.30
7.37
6.90
5.60
89.96
90.89
86.65
87.64
83.54
87.74
88.11
10.04
9.11
13.35
12.36
16.46
12.26
4.87
2.57
1.54
1.84
1.02
0.94
1.58
5.50
6.86
6.57
7.41
6.30
7.37
6.90
3.33
205,829,083
17,361,051
(49,119,675)
(44,354,224)
(52,112,848)
15,520,677
1.19
1.01
0.97
0.94
0.89
1.00
2.38
0.56
0.38
0.19
0.60
0.60
0.47
1.83
5.84
2.95
4.40
17.04
14.11
8.87
4.54
62.50
123.73
82.95
21.42
25.87
63.29
53.84
143.19
113.53
96.67
39.73
37.75
86.17
47.97
2.55
3.22
3.78
9.19
9.67
5.68
2.11
6.41
2.69
3.36
7.34
6.41
5.24
7.53
56.94
135.69
108.63
49.73
56.94
81.59
93.15
121.99
262.63
195.36
80.33
92.48
150.56
187.11
0.58
0.71
0.75
0.70
0.70
0.69
0.86
60.46
72.16
59.54
88.29
90.69
74.23
68.63
37.68
41.91
37.32
46.89
47.56
42.27
43.00
2.31
3.04
3.11
4.35
3.76
3.31
1.63
15.70
13.02
18.67
16.93
14.89
15.84
14.90
4.46
3.25
2.94
3.12
3.69
3.49
8.52
6.43
10.64
9.13
10.44
11.82
9.69
1.18
54.72
49.62
45.84
36.55
28.25
43.00
30.52
12
Interpretations:
Assets Turnover: This ratio measures how efficiently a firm uses its assets to generate
sales, so a higher ratio is always more favorable. Higher turnover ratios mean the
company is using its assets more efficiently. Lower ratios mean that the company isn't
using its assets efficiently and most likely have management or production problems,
company average assets turnover is 1.73 which shows us company in better position with
high ratio but when we compare with industry ratio than company is better than industry
1.16 ratios.
Rate of return on total assets: The return on assets ratio measures how effectively a
company can turn earn a return on its investment in assets. In other words, ROA shows
how efficiently a company can covert the money used to purchase assets into net income
or profits, company average rate of return on total assets is 11.94 which shows us
company in better position with high ratio but when we compare with industry ratio than
company is better than industry 4.44 ratio.
Rate of return on S.H.E: Return on equity measures how efficiently a firm can use the
money from shareholders to generate profits and grow the company. Unlike other return
on investment ratios, ROE is a profitability ratio from the investor's point of viewnot the
companies, company average rate of return on S.H.E is 38.94 which shows us company
in better position with high ratio but when we compare with industry ratio than company
are better than industry 16 ratios.
Equity Multiplier: The equity multiplier is a ratio used to analyze a company's debt and
equity financing strategy. A higher ratio means that more assets were funding by debt
than by equity. In other words, investors funded fewer assets than by creditors, company
average equity multiplier is 328.17 which shows us company in better position with high
ratio but when we compare with industry ratio than company is better than industry 298
ratio.
Rate of return on capital employed: The return on capital employed ratio shows how
much profit each dollar of employed capital generates. Obviously, a higher ratio would be
more favorable because it means that more dollars of profits are generated by each dollar
of capital employed, company average rate of return on capital employed is 6.49 which
show us company is not better position with high ratio but when we compare with industry
ratio 8.12 than industry is in better position because higher ratio would be more favorable.
Net profit margin: Net profit margin is a key financial indicator used to assets the
profitability of a company.Net profit margin measures how much of each dollar earned by
the company is translated into profits. A low profit margin indicates a low margin of safety:
higher risk that a decline in sales will erase profits and result in a net loss, company
average net profit margin is 6.9 which shows us company is not better position with high
ratio but when we compare with industry ratio 5.6 than industry is in better position with
high ratio.
13
Rate of gross profit: Gross margin ratio is a profitability ratio that measures how
profitable a company can sell its inventory. It only makes sense that higher ratios are
more favorable. Higher ratios mean the company is selling their inventory at a higher profit
percentage; company average rate of gross profit is 12.26 which show us company is in
better position but when we compare with industry ratio 4.87, than we analyze company is
in better position.
Rate of operating expense: The operating expense ratio also known as the OER is the
ratio between the total operating expenses and the effective gross income for an income
producing property. Operating expenses are costs associated with the operation
and maintenance of income producing properties, company average rate of operating
expense is 1.58 which shows us company is in better position but when we compare with
industry than industry 5.5 ratios.
Rate of net profit: Net profit margin measures how much of each dollar earned by the
company is translated into profits. A low profit margin indicates a low margin of safety:
average rate of net profit is 6.9 but when we compare with industry ratio 3.33 than
industry is better than company ratio.
Current ratio: Current Ratio is a liquidity ratio that measures company's ability to pay its
debt over the next 12 months or its business cycle. Current ratio is a financial ratio that
measures whether or not a company has enough resources to pay its debt over the next
business cycle (usually 12 months) by comparing firm's current assets to its current
liabilities, company average current ratio is 1 which is not better than industry 2.38 ratio.
Quick ratio: The acid test ratio measures the liquidity of a company by showing its ability
to pay off its current liabilities with quick assets. If a firm has enough quick assets to cover
its total current liabilities, the firm will be able to pay off its obligations without having to
sell off any long-term or capital assets, company average quick ratio is 0.47 which is not
better for company when we compare with industry than industry 1.83 ratio.
Inventory turnover: Inventory turnover is a measure of how efficiently a company can

control its merchandise, so it is important to have a high turn. This shows the company
does not overspend by buying too much inventory and wastes resources by storing nonsalable inventory. It also shows that the company can effectively sell the inventory it buys;
company average inventory turnover is 8.87 which show company is in better position
when we compare with industry ratio 4.54 than company is in good position.
Days on inventory: Days in Inventory measures the average number of days it takes a
company to turn its inventory into sales, a financial indicator of a company's performance.
Days in Inventory estimates also the number of days the average inventory balance will
be sufficient, company average days on inventory is 63.29 which is not good for company
than industry 53.84 ratios show better position.
14
A/C receivable turnover: The receivables turnover ratio measures a business' ability to
efficiently collect its receivables; it only makes sense that a higher ratio would be more
favorable. Higher ratios mean that companies are collecting their receivables more
frequently throughout the year; company average A/C receivable turnover is 86.17 which
is better than industry 47.97 ratio.
Days on A/C receivable: The days sales outstanding formula shows investors and
creditors how well companies' can collect cash from their customers. Obviously, sales
don't matter if cash is never collected. This ratio measures the number of days it takes a
company to convert its sales into cash, company average days on A/C receivable is 5.68
which is not better than industry 2.11 ratio.
Accounts payable turnover: Accounts payable turnover ratio is an accounting liquidity

metric that evaluates how fast a company pays off its creditors (suppliers). The ratio
shows how many times in a given period (typically 1 year) a company pays its average
accounts payable. An accounts payable turnover ratio measures the number of times a
company pays its suppliers during a specific accounting period, company average A/C
payables turnover is 5.24 which is better than industry 7.53 ratio.
Days on A/C payable: The days A/c payable formula shows investors and creditors how
well companies' can pay cash from their customers. Obviously, sales don't matter if cash
is never paid. This ratio measures the number of days it takes a company to convert its
sales into cash, company average days on A/C payable is 81.59 which is not better than
industry 93.15 ratio.
Total days: The cash conversion cycle measures how many days it takes a company to
receive cash from a customer from its initial cash outlay for inventory. For example, a
typical retailer buys inventory on credit from its vendors. When the inventory is purchased,
a payable is established, but cash isn't actually paid for some time, average total days of
company is 150.56 which is better than industry 187.11 ratio.
Debt ratio: The debt ratio is a fundamental solvency ratio because creditors are always
concerned about being repaid. When companies borrow more money, their ratio
increases creditors will no longer loan them money. Companies with higher debt ratios are
better off looking to equity financing to grow their operations, so company average debt
ratio is 0.69 which is better than industry 0.86 ratio.
Debt to equity ratio: It is also a measure of a company's ability to repay its obligations.
When examining the health of a company, it is critical to pay attention to the debt/equity
ratio. If the ratio is increasing, the company is being financed by creditors rather than from
its own financial sources which may be a dangerous trend. Lenders and investors usually
prefer low debt-to-equity ratios because their interests are better protected in the event of
a business decline. Thus, companies with high debt-to-equity ratios may not be able to
attract additional lending capital; in this case average debt to equity ratio is 74.23 which is
not better than industry 66.63 ratio.
15
Gearing ratio: The gearing ratio is the proportion of a company's debt to its equity. A high
gearing ratio represents a high proportion of debt to equity, and a low gearing ratio
represents a low proportion of debt to equity. The ratio indicates the financial risk to which
a business is subjected, in this case average gearing ratio is 42.27 which is better than
industry 43 ratio.
Interest cover: The interest coverage ratio (ICR) is a measure of a company's ability to
meet its interest payments. Interest coverage ratio is equal to earnings before interest and
taxes (EBIT) for a time period, often one year, divided by interest expenses for the same
time period. The interest coverage ratio is a measure of the number of times a company
could make the interest payments on its debt with its EBIT. It determines how easily a
company can pay interest expenses on outstanding debt; company average interest cover
is 3.31 which is better than industry 1.63 ratio.
Earnings per share: Earnings per share is the same as any profitability or market
prospect ratio. Higher earnings per share is always better than a lower ratio because this
means the company is more profitable and the company has more profits to distribute to
its shareholders, company average earning per share is 15.84 which is better than
Price earnings ratio: The price to earnings ratio indicates the expected price of a share
based on its earnings. As a company's earnings per share being to rise, so does their
market value per share. A company with a high P/E ratio usually indicated positive future
performance and investors are willing to pay more for this company's shares, company
average price earnings ratio is 3.49 which is not better than industry 8.52 ratio.
Dividend yield: A company with a high dividend yield pays its investors a large dividend
compared to the fair market value of the stock. This means the investors are getting highly
compensated for their investments compared with lower dividend yielding stocks. A high
or low dividend yield is relative to the industry of the company, company average dividend
yield is 9.69 which is better than industry 1.18 ratios.
Book value per share: Book value per share is often used to negotiate mergers,
acquisitions, and loan contracts. During a merger, the both companies need to calculate a
baseline price for the common and preferred shares of the business being absorbed.
Book value is a good starting point because it is objective and shows a selling price or
liquation value of the shares, company average book value per share is 43 which is better
than industry 30.52 ratio.
16
Notes to the Financial Statements

For the year ended September 30, 2013
2013
2012
Note --------------- Rupees --------------PROPERTY, PLANT AND EQUIPMENT
Operating fixed assets
Capital work-in-progress
5.1
5.2
1,424,307,615 1,172,730,789
84,894,928
215,948,012
1,509,202,543 1,388,678,801
2013
2012
Note --------------- Rupees --------------Depreciation charge for the year has been
allocated as follows:
Cost of sales
28 97,940,981 84,676,152
30 14,244,494 11,222,548
112,185,475
95,898,700
2013
2012
Note --------------- Rupees --------------Capital work-in-progress
Civil works
Advance against supply of plant and machinery 5.2.1
53,211,137
31,683,791
84,894,928
14,702,914
201,245,098
215,948,012
2013
2012
Note --------------- Rupees --------------LONG-TERM RECEIVABLE
Tender earnest money
Down payment
Other costs
Provision for doubtful receivable
6.1
1,000,000
33,125,000
8,385,996
42,510,996
(42,510,996)
1,000,000
33,125,000
8,385,996
42,510,996
(42,510,996)
2013
2012
Note --------------- Rupees --------------LONG TERM INVESTMENT in an associated company
Associated company unquoted
7.1
505,415,137
376,834,660
17
2013
2012
Note --------------- Rupees --------------Movement of investment
Opening balance
Dividend received during the year
Share of profit for the year net of tax
Prior year adjustment
7.2.1
376,834,660
376,834,660
129,206,196
(625,719)
128,580,477
505,415,137
216,718,336
(11,549,998)
205,168,338
167,355,908
4,310,414
171,666,322
376,834,660
2013
2012
Note --------------- Rupees --------------Aggregate amount of:
- Assets
- Liabilities
- Revenue
- Profit
3,926,004,401
2,409,649,999
2,595,817,661
387,618,632
1,800,206,000
671,579,000
2,137,306,000
500,190,000
BIOLOGICAL ASSETS at fair value

Carrying value at beginning of the year
57,424,050
Addition due to cultivation
28,863,440
Gain arising from initial recognition of standing crop less
costs to sell
27,431,760
113,719,250
Reduction due to harvesting
(57,424,050)
Carrying value at the end of the year
56,295,200
Operations and principal activities at farms
The Company is principally engaged in sugar cane cultivation.
43,315,568
29,276,902
28,147,148
100,739,618
(43,315,568)
57,424,050
STORES AND SPARE PARTS

Stores
Spare parts
6,549,100
60,475,669
67,024,769
10,289,203
62,909,028
73,198,231
2,103,958
686,327,602
688,431,560
2,959,297
1,092,338,729
1,095,298,026
9,963,768
16,987,867
26,951,635
16,987,867
9,963,768
73,171,715
16,987,867
90,159,582
16,987,867
73,171,715
STOCK-IN-TRADE
Manufactured sugar
- Work-in-process
- Finished goods
TRADE DEBTS unsecured
Considered good
Considered doubtful
11.1
11.2
Less: Provision for doubtful debts
11.2
18
2013
2012
--------------- Rupees --------------The aging of trade debts at September 30 is as follows:
Neither past due nor impaired
6,251,497
Past due but not impaired
- Within 90 days
69,766,122
- 91 - 180 days
3,405,593
- Over 365 days
3,712,271
3,712,271
73,171,715
9,963,768
73,171,715
2013
2012
Note --------------- Rupees --------------LOANS AND ADVANCES unsecured, considered good
Loans to staff
12.1 3,497,123
4,298,554
Advances
- to suppliers
26,735,270
15,588,151
- to cane growers
21,994,312
12,848,246
- against expenses
1,126,819
805,045
- federal excise duty
22,138,000
71,994,401
29,241,442
75,491,524
33,539,996
2013
2012
Note --------------- Rupees --------------TRADE DEPOSITS AND SHORT-TERM PREPAYMENTS
Trade deposits
Considered good
Considered doubtful
13.1
Less: Provision for doubtful deposits

Short-term prepayments
Considered good
Considered doubtful
Less: Provision for doubtful prepayments
478,500
8,196,113
8,674,613
8,196,113
478,500
238,500
8,196,113
8,434,613
8,196,113
238,500
15,507,345
563,441
16,070,786
563,441
15,507,345
15,985,845
20,120,605
563,441
20,684,046
563,441
20,120,605
20,359,105
2013
2012
Note --------------- Rupees --------------OTHER RECEIVABLES
Due from related parties:
Pakistan Molasses Company (Private) Limited
Mogul Tobacco Company (Private) Limited
2,331,099
717,702
3,048,801
249,000
3,297,801
1,001,670
378,925
1,380,595
165,000
1,545,595
15.1
3,300,000
3,300,000
15.2
289,203,684
292,503,684
201,096,724
204,396,724
Others
SHORT-TERM INVESTMENTS
Held to maturity
Term deposit certificates
Available for sale
Equity securities
19
2013
2012
--------------- Rupees --------------CASH AND BANK BALANCES
In hand
Cash with banks in current accounts
174,742
5,939,774
6,114,516
155,434
144,614,308
144,769,742
SHARE CAPITAL
2013
2012
(Number of shares)
Authorized capital
50,000,000 50,000,000 Ordinary shares of Rs. 10/- each 500,000,000 500,000,000
Issued, subscribed and paid-up capital
Ordinary shares of Rs. 10/- each
5,968,750
5,968,750 Fully paid in cash
59,687,500 59,687,500
350,000
350,000 Issued for consideration other
than cash
3,500,000 3,500,000
19,002,393 14,607,815 Issued as fully paid bonus shares 190,023,930 146,078,150
25,321,143 20,926,565
253,211,430 209,265,650
2013
2012
Note --------------- Rupees --------------LONG TERM FINANCING secured
From banking companies
18.1
454,241,072
380,312,500
2013
2012
Note --------------- Rupees --------------DEFERRED LIABILITY
Staff gratuity
Staff gratuity
Opening balance
Expense for the year
Benefits paid during the year
Closing balance
Current service cost
Interest cost
Actuarial (gain) / loss recognized
20.1
20.2
7,564,191
6,438,840
6,438,840
1,550,959
7,989,799
(425,608)
7,564,191
5,681,987
1,440,195
7,122,182
(683,342)
6,438,840
715,494
809,385
26,080
1,550,959
732,103
708,092
1,440,195
2013
2012
--------------- Rupees --------------Principal actuarial assumptions
Discount rate
Expected rate of increase in salary level
Expected average remaining life of employees
11.5%
8.5%
24 years
13%
10%
30 years
20
2013
2012
--------------- Rupees --------------DEFERRED TAXATION
Credit balances arising due to:
Accelerated tax depreciation
Assets subject to finance lease
Debit balances arising due to:
Provision for gratuity
Provision for doubtful debts
Provision for doubtful deposits and prepayments
Provision for impairment on short-term investments
Provision for doubtful long-term receivable
Carryover of minimum tax
263,149,616
2,040,985
33,072,141
298,262,742
253,534,297
994,326
24,978,468
279,507,091
(2,571,825)
(3,670,483)
(2,978,248)
(120,360)
(14,453,739)
(33,931,175)
(57,725,830)
240,536,912
(2,253,594)
(3,778,438)
(3,065,844)
(123,900)
(14,878,849)
(24,503,652)
(48,604,277)
230,902,814
2013
2012
Note --------------- Rupees --------------TRADE AND OTHER PAYABLES
Creditors
Accrued expenses
Advances from customers
23.1
Workers Profits Participation Fund
23.2
Workers Welfare Fund
23.3
Unclaimed dividend
Deposits from employees against purchase of vehicles
Others
49,835,584
56,534,262
12,139,754
10,364,672
333,509,308
1,053,890,371
9,260,652
7,174,383
21,474,386
15,113,124
8,310,624
8,836,001
10,186,596
8,297,574
10,780,753
9,153,055
455,497,657
1,169,363,442
Include advances amounting to Rs. 32.3 million (2012: Nil) received from Unicol Limited, a related
party.
2013
2012
--------------- Rupees --------------Workers Profits Participation Fund
Balance at the beginning of the year
Allocation for the year
Interest on funds utilized in the Companys business
Amount paid to trustees of the fund
7,174,383
9,260,652
16,435,035
16,435,035
(7,174,383)
9,260,652
22,149,673
7,174,383
29,324,056
223,750
29,547,806
(22,373,423)
7,174,383
2013
2012
Note --------------- Rupees --------------SHORT- TERM BORROWINGS secured
Running finance under markup arrangements
Short term loans
24.1
24.2
122,176,948
275,000,000
397,176,948
38,832,978
286,595,861
325,428,839
21
2013
2012
Note --------------- Rupees --------------TURNOVER
Sales
- Sugar exports
- Sugar local
- Molasses
- Bagasse
Less:
- Sales tax
- Federal excise duty
COST OF SALES
Manufactured sugar:
Cost of sugarcane consumed
(including procurement and other expenses)
Market committee fee
Road cess on sugarcane
Salaries, wages and other benefits
Stores and spare parts consumed
Repairs and maintenance
Fuel, electricity and water charges
Vehicle running and maintenance expenses
Insurance
Depreciation
Other overheads
28.1
5.1.1
Opening stock of work-in-process

Closing stock of work-in-process
Cost of goods manufactured
Opening stock of finished goods
Closing stock of finished goods
1,829,209,183
3,760,042,126
346,289,785
16,503,153
5,952,044,247
516,520,354
3,612,514,844
279,385,495
10,854,124
4,419,274,817
2,589,480
151,985,209
154,574,689
5,797,469,558
1,659,212
267,506,672
269,165,884
4,150,108,933
4,279,022,978
9,156,660
5,723,047
138,705,489
184,310,640
40,925,629
15,884,628
6,091,779
8,790,384
97,940,981
22,040,848
4,808,593,063
2,959,297
(2,103,958)
855,339
4,809,448,402
1,092,338,729
(686,327,602)
406,011,127
5,215,459,529
2,975,479,545
7,221,204
4,513,378
111,025,315
133,127,359
46,775,418
14,351,765
6,685,979
6,730,459
84,676,152
18,113,081
3,408,699,655
3,763,964
(2,959,297)
804,667
3,409,504,322
1,454,806,439
(1,092,338,729)
362,467,710
3,771,972,032
Include gratuity expense of Rs. 1,550,959/- (2012: Rs. 1,440,195/-) and contribution to provident fund
of Rs. 3,237,005/- (2012: Rs. 2,988,409/-).
2013
2012
Note --------------- Rupees --------------DISTRIBUTION COSTS
Salaries and other benefits
Insurance
Stacking and loading
Export expenses
Selling expenses
29.1
1,940,658
20,000
9,434,199
80,691,661
1,837,253
93,923,771
1,499,492
18,800
6,639,717
19,178,898
239,168
27,576,075
Include contribution to provident fund of Rs. 70,713/- (2012: Rs. 73,806/-).
22
2013
2012
Note --------------- Rupees --------------ADMINISTRATIVE EXPENSES
Salaries and other benefits
Rent, rates and taxes
Electricity, telephone, fax and postage
Printing and stationery
Travelling and conveyance
Vehicle running and maintenance expenses
Ijarah rentals
Auditors remuneration
Legal and professional
Fees and subscription
Insurance
Repairs and maintenance
Advertising
Donations
Depreciation
Other expenses
30.1
71,124,688
55,268,301
2,374,456
3,456,773
6,042,950
5,583,417
2,146,591
2,276,453
6,872,475
5,669,054
8,563,308
6,762,367
1,737,685
503,430
30.2
1,430,200
1,236,625
3,308,977
1,302,737
2,576,832
1,971,789
166,400
176,720
3,742,115
4,015,725
279,312
997,296
30.3
6,978,200
1,252,267
5.1.1 14,244,494
11,222,548
710,573
431,744
132,299,256
102,127,246
Include contribution to provident fund of Rs. 1,801,034/- (2012: Rs. 1,462,540/-).
2013
2012
--------------- Rupees --------------Auditors remuneration
Statutory audit
Ernst & Young Ford Rhodes Sidat Hyder
Statutory audit fee
Review of half yearly financial statements and
Compliance with Code of Corporate Governance
Out of pocket expenses
Cost audit
Haroon Zakaria & Co.
Cost audit fee
Out of pocket expenses
825,000
410,600
79,600
1,315,200
115,000
115,000
15,000
1,430,200
1,236,625
2013
2012
Note --------------- Rupees ---------------
OTHER OPERATING EXPENSES

Workers Profits Participation Fund
23.2
Workers Welfare Fund
Provision for impairment on short-term investments
Exchange loss
Zakat
OTHER OPERATING INCOME
Income from financial assets
Interest on term deposit receipts
Gain on disposal of short term investments
Exchange gain
Dividend income
Income from non financial assets
Net farm income
Scrap sales
Gain on disposal of fixed assets
750,000
292,500
64,125
1,106,625
9,260,652
6,361,262
82,500
15,704,414
7,174,383
3,860,072
1,583,222
1,310,061
82,500
14,010,238
1,495,813
79,275,183
7,275,311
17,348,099
105,394,406
1,093,848
12,746,078
12,789,414
26,629,340
36,226,772
3,618,534
3,961,227
43,806,533
149,200,939
23,980,452
11,622,090
1,633,679
37,236,221
63,865,561
23
2013
2012
--------------- Rupees --------------FINANCE COSTS
Mark-up on:
Long-term financing
Short-term borrowings
Lease finance
Bank charges
TAXATION
Current
Prior year
Deferred
57,824,932
124,420,409
2,217,176
184,462,517
2,379,828
186,842,345
49,988,901
61,541,200
2,876,070
114,406,171
1,913,590
116,319,761
25,047,394
(1,158,887)
23,888,507
9,634,098
33,522,605
8,127,749
103,583
8,231,332
72,847,984
81,079,316
During the year, provision for current tax is based on minimum tax. Accordingly, tax reconciliation is
not presented in the financial statements.
Income tax assessments of the Company have been completed upto the tax year 2013 (accounting
year ended September 30, 2012).
BASIC AND DILUTED EARNING PER SHARE

There is no dilutive effect on the basic earnings per share of the Company, which is based on:
Profit after taxation attributable to ordinary shares (Rupees)

(Restated)
Weighted average number of ordinary shares
(Restated)
Earnings per share (Rupees)
2013
397,499,054
2012
272,556,148
25,321,143
25,321,143
5.70
10.76
2013
2012
--------------- Rupees --------------WORKING CAPITAL CHANGES
(Increase) / decrease in current assets
Biological assets
Stores and spare parts
Stock-in-trade
Trade debts
Loans and advances
Trade deposits and short-term prepayments
Other receivables
Increase / (decrease) in current liabilities
Trade and other payables
Sales tax and federal excise duty payable
1,128,850
6,173,462
406,866,466
63,207,947
(41,951,528)
4,373,260
(1,752,206)
438,046,251
(14,108,482)
4,597,231
363,272,377
(68,488,552)
(2,510,584)
(5,689,510)
(1,073,424)
275,999,056
(713,340,408)
(16,333,444)
(729,673,852)
(291,627,601)
(466,230,864)
24,684,547
(441,546,317)
(165,547,261)
24
2013
2012
--------------- Rupees --------------Associates
Sales
Expenses shared
Insurance premium
Donations
Retirement benefit plans
Provident fund contribution
Trade debts
Investments held to maturity
Loans and advances
Deposits
Other receivables
Bank balances
356,106,346
1,355,073
10,758,055
6,450,000
285,268,393
1,257,256
9,423,640
500,000
5,108,752
4,524,755
2013
2012
--------------- Rupees --------------9,963,768
73,171,715
3,300,000
3,300,000
75,491,524
33,539,996
478,500
238,500
3,297,801
1,545,595
5,939,774
144,614,308
98,471,367
256,410,114
2013
2012
--------------- Rupees ---------------
Trade debts
Customers with no defaults in the past one year
Bank balances
With external credit rating
A1
A1+
9,963,768
73,171,715
1,243,886
4,695,888
5,939,774
101,449,026
43,165,282
144,614,308
25

Company profile
The company was established in 1964 and is located in the city of Mirpurkhas, some 300 km
from the part city of Karachi. Mirpurkhas Sugar Mills is a public limited company and its
shares are listed on the Karachi Stock Exchange. It has attained the distinction of being
ranked amongst the top ten companies in Pakistan for the years 1982, 1983 and 1986.
The original plant was supplied by Fletcher Smith, UK (formerly known as Fletcher &
Stewart). The original plant had a crushing capacity of 500 TDC (tons per day capacity) and
has progressed to 5000 TDC.
The company is involved in the development of higher yield sugar cane varieties on its 300
acre experimental form and provides support to local cultivators in term of fertilizers, agro
chemicals and the latest farming techniques.
CORE VALUES
To strive for excellence and build on our core competencies.

To continuously maintain technological advancements and update ourselves in the
field of sugar technology.
To meet and exceed the expectations of our stakeholders.
To inculcate efficient, ethical and time tested business practices in our management.
To work as a team and support each other.
To strive to place the invest of the company before that of the individual.
VISION & MISSION

We aim to be a leading producer and supplier of high quality sugar in Pakistan. We aspire to
be known for the superior quality of our product. We intend to play a pivotal role in the
economic and social development of Pakistan there by, improving the quality of life of its
people.
As a leading producer of quality sugar in Pakistan, we shall build on our core competencies
and achieve excellence in performance. In doing so, we aim to meet and exceed the
expectations of our stakeholders. In striving to serve better, our goal is not to attain
technological advancement in the field of sugar technology, but also to inculcate the most
efficient, ethical and time tested business practices in our management. We shall continue to
look for innovative approaches to introduce alternate uses of sugar in order to broaden our
customer base.
26
Mirpurkhas Sugar Mills Limited

2013
2012
2011
2010
2009
Turnover [Sales]
3,454,478
2,541,537
2,739,671
2,823,671
1,803,234
Cost of sales
3,224,179
2,368,501
2,375,297
2,477,780
1,471,620
Gross profit
230,299
173,036
364,374
345,891
331,614
4,985
2,571
5,940
Distribution costs
42,925
27,257
94,618
76,083
79,833
79,108
52,647
2,858
859
12,806
11,854
14,091
2,074
5,973
4,983
35,248
5,723
Opereating profit
125,146
74,560
270,778
252,018
268,278
Finance costs
135,271
133,720
145,310
103,958
86,594
Share of Profit from an associate
129,742
168,856
42,826
8,286
32,534
Profit before tax
119,117
109,696
168,294
156,346
214,218
Taxation
22,061
8,568
30,580
72,047
88,778
97,056
101,128
137,714
84,299
125,440
Earnings per share basic (Rupees)
12.66
9.07
14.20
10.00
17.85
Number of Shares
11,152,928
9,698,198
8,433,215
2,911,150
2,646,500
Market Price
69.80
43.26
53.88
58.19
71.00
27

Balance Sheet
2013
2012
2011
2010
2009
ASSETS
NON-CURRENT ASSETS
Property, plant & equipment
1,280,879
1,263,593
967,920
809,430
584,948
505,451
376,209
218,903
176,077
167,791
Long term deposits
995
732
732
732
738
Total Fixed Assets
1,787,325
1,640,534
1,187,555
986,239
753,477
147,052
147,147
151,795
111,144
120,192
Stock-in-trade
108,687
630,144
886,781
125,715
203,171
Biological assets
47,084
13,595
9,766
13,481
90,979
84,050
Loans & advances - unsecured

Trade deposits & short term
prepayments
56,919
81,425
112,852
77,412
22,511
1,137
1,514
1,251
1,380
2,771
Other receivables
61,512
23,034
26,062
6,803
19,953
226,968
170,188
58,180
56,616
63,828
CURRENT ASSETS
Tax refinds due from the Government
41,764
8,118
1,059
8,146
11,494
16,477
15,651
31,152
35,036
716,212
1,087,813
1,267,112
501,201
559,658
TOTAL ASSETS
2,503,537
2,728,347
2,454,667
1,487,440
1,313,135
Share capital
111,529
96,982
84,332
70,277
63,888
Reserves
776,576
603,420
411,367
311,318
256,592
888,105
700,402
495,699
381,595
320,480
SURPLUS ON REVALUATION OF
FIXED ASSETS
282,552
282,552
173,056
173,056
129,056
Total Shareholder Equity
1,170,657
982,954
668,755
554,651
449,536

SHARES CAPITAL & RESERVES
28
NON-CURRENT LIABILITIES
Long-term financing - secured
490,000
439,999
344,445
88,890
133,334
245,956
735,956
247,090
687,089
248,340
592,785
249,341
338,231
205,752
339,086
241,200
744,798
641,342
365,993
291,740
Accrued mark-up
14,278
22,456
32,309
14,843
18,089
Short term borrowings - secured
191,446
186,605
475,032
161,878
170,240
Current portion of long term financing
150,000
104,445
44,444
44,444
44,444
596,924
1,058,304
1,193,127
594,558
524,513
Total Liabilities
1,332,880
1,745,393
1,785,912
932,789
863,599
TOTAL EQUITY & LIABILITIES
2,503,537
2,728,347
2,454,667
1,487,440
1,313,135
2012
2011
2010
Total Long term Liabilities

CURRENT LIABILITIES
Taxation
7,400

Horizontal Analysis
2013
Turnover [Sales]
35.92
(7.23)
(2.97)
56.59
Cost of sales
36.13
(0.29)
(4.14)
68.37
Gross profit
33.09
(52.51)
5.34
4.31
Distribution costs
57.48
358.87
19.16
93.89
24.36
(4.70)
0.92
50.26
232.71
(93.29)
8.03
(15.88)
515.90
14.85
140.26
(65.28)
Operating profit
67.85
(72.46)
7.44
(6.06)
Finance costs
1.16
(7.98)
9.78
20.05
(23.16)
294.28
416.85
(74.53)
Profit before tax
8.59
(34.82)
7.64
(27.02)
Taxation
157.48
(71.98)
(57.56)
(18.85)
(4.03)
(26.57)
63.36
(32.80)
29
Balance Sheet
Horizontal Analysis
2013
2012
2011
2010
ASSETS
NON-CURRENT ASSETS
1.37
30.55
19.58
38.38
34.35
71.86
24.32
4.94
Long term deposits
35.93
Total Fixed Assets
8.95
38.14
20.41
30.89
(0.06)
(3.06)
36.58
(7.53)
Stock-in-trade
(82.75)
(28.94)
605.39
(38.12)
39.21
(27.56)
(85.18)
8.24

prepayments
(30.10)
(27.85)
45.78
243.89
(24.90)
21.02
(9.35)
(50.20)
Other receivables
167.05
(11.62)
283.10
(65.90)
33.36
192.52
2.76
(11.30)
414.46
666.57
(30.24)
5.28
(49.76)
(11.09)
(34.16)
(14.15)
152.82
(10.45)
TOTAL ASSETS
(8.24)
11.15
65.03
13.27
Share capital
15.00
15.00
20.00
10.00
Reserves
28.70
46.69
32.14
21.33
26.80
41.30
29.90
19.07
FIXED ASSETS
63.27
19.10
46.98
(0.81)
CURRENT ASSETS
Biological assets

20.57
34.09
23.38
30
11.36
27.74
287.50
(33.33)
(0.46)
(0.50)
(0.40)
21.19
7.11
15.91
75.26
(0.25)
(67.62)
16.13
75.23
25.45
Accrued mark-up
(36.42)
(30.50)
117.67
(17.94)
2.59
(60.72)
193.45
(4.91)
43.62
135.00
(43.60)
(11.30)
100.67
13.35
Total Liabilities
(23.63)
(2.27)
91.46
8.01
(8.24)
11.15
65.03
13.27
2012
2011
2010
2009
CURRENT LIABILITIES
Taxation

Vertical Analysis
2013
Turnover [Sales]
100.00
100.00
100.00
100.00
100.00
Cost of sales
93.33
93.19
86.70
87.75
81.61
Gross profit
6.67
6.81
13.30
12.25
18.39
Distribution costs
1.24
1.07
0.22
0.18
0.14
2.74
2.99
2.91
2.80
2.92
0.08
0.03
0.47
0.42
0.78
1.02
0.23
0.18
0.07
0.33
Opereating profit
3.62
2.93
9.88
8.93
14.88
Finance costs
3.92
5.26
5.30
3.68
4.80
3.76
6.64
1.56
0.29
1.80
Profit before tax
3.45
4.32
6.14
5.54
11.88
Taxation
0.64
0.34
1.12
2.55
4.92
2.81
3.98
5.03
2.99
6.96
31
Balance Sheet
Vertical Analysis
2013
2012
2011
2010
2009
ASSETS
NON-CURRENT ASSETS
51.16
46.31
39.43
54.42
44.55
20.19
13.79
8.92
11.84
12.78
Long term deposits
0.04
0.03
0.03
0.05
0.06
Total Fixed Assets
71.39
60.13
48.38
66.30
57.38
5.87
5.39
6.18
7.47
9.15
Stock-in-trade
4.34
23.10
36.13
8.45
15.47
Biological assets
1.88
0.54
0.36
6.12
6.40

prepayments
2.27
2.98
5.20
1.71
0.05
0.06
0.05
0.09
0.21
Other receivables
2.46
0.84
1.06
0.46
1.52
9.07
6.24
2.37
3.81
4.86
1.67
0.30
0.04
0.62
0.46
0.60
0.64
2.09
2.67
28.61
39.87
33.70
42.62
TOTAL ASSETS
100.00
100.00
100.00
100.00
100.00
Share capital
4.45
3.55
3.44
4.72
4.87
Reserves
31.02
22.12
16.76
20.93
19.54
FIXED ASSETS
11.29
10.36
7.05
11.63
9.83
46.76
36.03
27.24
37.29
34.23
CURRENT ASSETS
0.55
4.60
51.62

32
19.57
16.13
14.03
5.98
10.15
9.82
9.06
10.12
16.76
15.67
29.40
25.18
24.15
22.74
25.82
9.63
27.30
26.13
24.61
22.22
Accrued mark-up
0.57
0.82
1.32
1.00
1.38
7.65
6.84
19.35
10.88
12.96
5.99
3.83
1.81
2.99
3.38
CURRENT LIABILITIES
Taxation
23.84
38.79
48.61
39.97
39.94
Total Liabilities
53.24
63.97
72.76
62.71
65.77
100.00
100.00
100.00
100.00
100.00
33
S.no
Formula's
1
2
3
4
5
6
7
8
9
10
Profibility Ratios
Assets Turnover
Equity Multiplier
Net Profit Margin
Rate of net profit

Cost of Good Sold/Total Net Sales *100
11
12
13
14
15
16
17
18
19
20
Liquidtiy Ratos
Working Capital
Current Ratio
Quik Ratio
Inventory Turnover
Days on Inventory
A/C Payable payment
Days on A/C Payable
Total Days

Quick Asstes/Current Liabilities
Cost of Good Sold/Average Inventory
365/Times
365/Times
365/Times
21
22

Debt Ratio
23
24
Gearing Ratio
Interest Cover

L.T.D + Preferred Share/L.T.D + S.H.E + Pref. Share
*100
25
26
27
Invertor's Ratios
Earning per share
Price earning ratio
Dividend Yield
Net Profit-Prefered Dividend/No. of Shares

Market Price/Earning per share
28
34

Ratio Analysis
2013
2012
2011
2010
2009
Average
Industry
137.32
9.55
27.90
292.11
27.16
6.96
81.61
18.39
14.88
6.96
133.98
5.68
16.45
283.75
14.17
4.35
88.52
11.48
8.05
4.35
(93,357)
0.84
0.44
15.07
24.22
28.88
12.64
6.77
53.91
(17.05)
35,145
1.07
0.45
4.67
78.16
17.34
21.05
5.04
72.36
26.85
32,914
1.04
0.48
11.68
71.37
47.80
10.32
6.41
73.38
8.31
0.73
0.63
0.66
0.64
0.86
69.90
41.14
0.65
88.64
46.99
3.93
60.98
37.88
18.87
75.43
43.00
6.58
71.56
41.52
6.19
68.63
43.00
1.63
10.43
4.77
3.47
85.79
14.20
3.79
4.64
78.96
8.69
5.82
6.01
72.13
12.93
3.98
4.93
65.30
11.39
4.77
4.26
78.96
14.90
8.52
1.18
30.52
137.98
3.88
8.29
213.86
6.25
2.81
93.33
6.67
3.62
2.81
93.15
3.71
10.29
277.57
6.57
3.98
93.19
6.81
2.93
3.98
111.61
5.61
20.59
367.05
13.34
5.03
86.70
13.30
9.88
5.03
189.83
5.67
15.20
268.18
17.51
2.99
87.75
12.25
8.93
2.99
119,288
1.20
1.02
31.78
11.49
45.99
7.94
13.37
27.31
(7.88)
29,509
1.03
0.29
2.21
165.16
77.49
4.71
3.18
114.78
55.09
73,985
1.06
0.19
4.69
77.83
69.28
5.27
3.70
98.55
(15.46)
0.53
0.64
62.87
38.60
0.92
10.68
5.51
2.27
92.62
1.16
4.44
16.00
298.00
8.12
5.60
88.11
4.87
5.50
3.33
2.38
1.83
4.54
53.84
47.97
2.11
7.53
93.15
187.11
35
Interpretation:
company average assets turnover is 133.98 which is not better than industry 160.31 ratio.
company can turn earns a return on its investment in assets. In other words, ROA shows
or profits, company average rate of return on total assets is 5.68 which is better than
company, company average rate of return on S.H.E is 16.45 which is better than industry
16 ratio.
than by equity. In other words, investors funded fewer assets than by creditors; company
average equity multiplier is 283.75 which are not better than industry 298 ratio.
of capital employed, company average rate of return on capital employed is 14.17 which
are better than industry 8.12 ratio.
average net profit margin is 4.35 which is better than industry 5.6 ratios.
36
more favorable. Higher ratios mean the company is selling their inventory at a higher
profit percentage; company average rate of gross profit is 11.48 which are better than
industry 4.87 ratios.
expense is 8.05 which are not better than industry 5.5 ratios.
average rate of net profit is 4.35 which is not better than industry 3.33 ratios.
liabilities, company average current ratio is 1.04 which is not better than industry 2.38
ratio.
better than industry 1.83 ratio.

does not overspend by buying too much inventory and wastes resources by storing nonsalable inventory. It also shows that the company can effectively sell the inventory it buys,
company average inventory turnover is 11.68 which are better than industry 4.54 ratio.
37
be sufficient, company average days on inventory is 71.37 which is not better than
industry 53.84 ratios.
frequently throughout the year; company average A/C receivable turnover is 47.80 which
is not better than industry 47.97 ratio.

payables turnover is 6.41 which is better than industry 7.53 ratio.
company is 8.31 which is better than industry 187.11 ratio.
38
increases creditors will no longer loan them money. Companies with higher debt ratios
are better off looking to equity financing to grow their operations, company average debt
ratio is 0.64 which is better than industry 0.86 ratio.
attract additional lending capital; in this case average debt to equity ratio is 71.56 which
are not better than industry 66.63 ratio.
a business is subjected, in this case average gearing ratio is 41.52 which is better than
industry 43 ratio.
company can pay interest expenses on outstanding debt, company average interest cover
is 6.19 which are better than industry 1.63 ratios.
Earnings per share: Earnings per share is the same as any profitability or market
its shareholders, company average earning per share is 11.39 which is not better than
39
average price earnings ratio is 4.77 which are not better than industry 8.52 ratio.
compared to the fair market value of the stock. This means the investors are getting
highly compensated for their investments compared with lower dividend yielding stocks. A
high or low dividend yield is relative to the industry of the company, company average
dividend yield is 4.26 which is better than industry 1.18 ratio.
liquation value of the shares, company average book value per share is 78.96 which are
better than industry 30.52 ratios.
40

41
42
43
44
45
46
47
48
49
50
Mirza Sugar Mills Limited

2013
Turnover [Sales]
Cost of sales
Gross profit
Distribution costs
Operating Profit or loss
Finance costs
Other income
Other charges
Profit before tax
Taxation
Earning per share

Number of Shares
Market Price
2012
2011
2010
2009
217,644,919
774,360,704
1,465,477,806
1,328,623,472
649,456,562
290,201,877
829,673,359
1,355,198,764
1,107,581,793
556,161,162
(72,556,958)
(55,312,655)
110,279,042
221,041,679
93,295,400
48,353,265
58,782,738
57,944,915
43,780,352
37,727,646
537,005
1,006,346
1,347,106
1,009,983
834,753
(121,447,228)
(115,101,739)
50,987,021
176,251,344
54,733,001
(1,173,366)
(2,897,005)
9,000,428
12,825,951
6,822,048
2,433,925
286,882,015
6,700,150
357,264
140,054,686
(9,733,635)
9,352,101
11,301,003
21,169,984
(120,186,669)
159,149,636
39,334,642
152,481,654
166,795,655
(1,493,835)
(40,276,519)
(14,721,779)
(121,680,504)
118,873,117
24,612,863
(8.63)
23,681,361
39.47
8.43
24,561,987
43.26
(13,286,250)
139,195,404
(4,711,230)
162,084,425
1.75
9.87
2.89
28,433,215
22,911,150
22,646,500
53.88
58.19
71
51

Balance Sheet
2013
2012
2011
2010
2009
ASSETS
NON-CURRENT ASSETS
159,149,292
175,726,018
194,570,041
206,455,303
214,422,967
1,426,886
1,426,886
194,570,041
207,882,189
215,849,853
Long term deposits

Total Fixed Assets
159,149,292
175,726,018
CURRENT ASSETS

Stock-in-trade
Loans, advances & other
receivable
TOTAL ASSETS
24,534,334
26,372,886
28,486,958
23,621,522
13,998,988
22,900,294
87,209,660
140,826,612
77,649,506
65,590,242
26,259,168
26,951,149
36,010,130
1,749,262
9,079,600
19,550,550
40,839,877
50,240,744
18,273,855
2,233,385
2,315,569
14,195,373
18,275,800
2,487,587
85,006,781
162,399,814
260,358,950
171,536,834
100,350,672
244,156,073
338,125,832
454,928,991
379,419,023
316,200,525
150,000,000
150,000,000
150,000,000
150,000,000
150,000,000
141,000,000
141,000,000
141,000,000
141,000,000
141,000,000
622,019,257
500,335,753
619,208,870
637,961,903
777,157,307
(481,019,257)
(359,335,753)
(478,208,870)
(496,961,903)
(636,157,307)
16,788,482
16,788,482
16,788,482
64,109,934
143,773,187
121,920,553
120,426,718
386,698,201
386,698,201
386,698,201
138,709,035
137,215,200
403,486,683
450,808,135
530,471,388

SHARES CAPITAL &
RESERVES
Authorized Capital
15000000 (2012:
15000000) Odinary shares
of Rs. 10/- each.
paid-up capital
14100000 (2012:
14100000) Odinary shares
of Rs. 10/- each fully paid in
cash
Accumulated loss
Total Share Holder Equity
NON-CURRENT
LIABILITIES
52
CURRENT LIABILITIES
Current portion of long term
financing
Accrued mark-up
Provision taxation
Total Liabilities
TOTAL EQUITY &
LIABILITIES
342,487,991
342,487,992
359,692,308
331,354,806
291,438,725
204,178,450
176,830,407
143,128,407
58,639,808
108,155,792
18,991,927
18,991,927
18,991,927
18,991,927
18,991,927
20,804,927
21,936,059
7,838,536
16,586,250
3,300,000
586,463,295
560,246,385
529,651,178
425,572,791
421,886,444
725,172,330
697,461,585
933,137,861
876,380,926
952,357,832
244,156,073
338,125,832
454,928,991
379,419,023
316,200,525
Profit & loss

Account
Horizontal Analysis
2013
Turnover [Sales]
Cost of sales
Gross profit
Distribution costs
Finance costs
Other income
Other charges
Profit before tax
Taxation
(71.89)
(65.02)
31.18
(17.74)
(46.64)
5.51
(59.50)
(99.15)
2012
(47.16)
(38.78)
(150.16)
1.45
(25.30)
(325.75)
(132.19)
4,181.73
2011
2010
10.30
104.57
22.36
99.15
(50.11)
136.93
32.35
16.04
33.38
20.99
(71.07)
222.02
(29.83)
88.01
1,775.41
(99.74)
(17.25)
(46.62)
(204.08)
(175.52)
304.60
(74.20)
(8.58)
(96.29)
173.58
10.80
182.01
(202.36)
382.97
(82.32)
(14.12)
53
Balance Sheet
Horizontal Analysis
2013
2012
2011
2010
ASSETS
NON-CURRENT ASSETS
Property, plant &
equipment
(9.43)
Long term deposits
Total Fixed Assets
(9.43)
(9.68)
(9.68)
(5.76)
(3.72)
-
(100.00)
(6.40)
(3.69)
20.60
68.74
81.36
18.39
CURRENT ASSETS

Stock-in-trade
Loans, advances &
other receivable
TOTAL ASSETS
(6.97)
(73.74)
(2.57)
(53.56)
(3.55)
(47.66)
(27.79)
(7.42)
(38.07)
(25.16)
(52.13)
(83.69)
(37.62)
(25.68)
1,958.59
(18.71)
174.93
(22.33)
634.68
51.78
70.94
19.90
19.99
(2.94)
(17.91)
(3.77)
(21.88)

SHARES CAPITAL &
RESERVES
Authorized Capital
15000000 (2012:
15000000) Odinary
shares of Rs. 10/- each.
paid-up capital
14100000 (2012:
14100000) Odinary
shares of Rs. 10/- each
fully paid in cash
Accumulated loss
Total Share Holder
Equity
24.32
33.86
(19.20)
(24.86)
NON-CURRENT
LIABILITIES
Total Long term
Liabilities
1.24
1.09
(73.81)
(68.86)
(65.99)
(55.41)
-
(10.50)
(15.02)
54
CURRENT LIABILITIES
term financing
(0.00)
15.47
Accrued mark-up
Provision taxation
(4.78)
23.55
8.55
13.70
144.08
(45.78)
(5.16)
179.85
Total Current
Liabilities
4.68
5.78
Total Liabilities
3.97
(25.26)
TOTAL EQUITY &

LIABILITIES
(27.79)
(25.68)
(52.74)
402.61
24.46
0.87
6.48
(7.98)
19.90
19.99
2011
2010
2009
Profit & loss

Account
Vertical Analysis
2013
2012
Turnover [Sales]
100.00
100.00
100.00
100.00
100.00
Cost of sales
133.34
107.14
92.47
83.36
85.63
Gross profit
(33.34)
(7.14)
7.53
16.64
14.37
22.22
7.59
3.95
3.30
5.81
Distribution costs
0.25
0.13
0.09
0.08
0.13
(55.80)
(14.86)
3.48
13.27
8.43
(0.54)
(0.37)
0.61
0.97
1.05
1.12
37.05
0.46
0.03
21.56
(1.26)
0.64
0.85
3.26
(55.22)
20.55
2.68
11.48
25.68
(0.69)
(5.20)
(1.00)
(1.00)
(0.73)
(55.91)
15.35
1.68
10.48
24.96

Finance costs
Other income
Other charges
Profit before tax
Taxation
55
Profit & loss

Account
Vertical Analysis
2013
2012
2011
2010
2009
ASSETS
NON-CURRENT ASSETS
Property, plant &
equipment
Long term deposits
Total Fixed Assets
65.18
51.97
42.77
54.41
67.81
0.38
0.45
65.18
51.97
42.77
54.79
68.26
10.05
7.80
6.26
6.23
4.43
9.38
25.79
30.96
20.47
20.74
10.76
7.97
7.92
0.46
3.72
5.78
8.98
13.24
5.78
0.91
0.68
3.12
4.82
0.79
34.82
48.03
57.23
45.21
31.74
100.00
100.00
100.00
100.00
100.00
61.44
44.36
32.97
39.53
47.44
57.75
41.70
30.99
37.16
44.59
254.76
147.97
136.11
168.14
245.78
(197.01)
(106.27)
(105.12)
6.88
4.97
3.69
16.90
45.47
49.94
35.62
85.00
101.92
122.30
56.81
40.58
88.69
118.82
167.76
CURRENT ASSETS

Stock-in-trade
Loans, advances &
other receivable
TOTAL ASSETS

SHARES CAPITAL &
RESERVES
Authorized Capital
15000000 (2012:
15000000) Odinary
shares of Rs. 10/- each.
paid-up capital
14100000 (2012:
14100000) Odinary
shares of Rs. 10/- each
fully paid in cash
Accumulated loss
Total Share Holder
Equity
(130.98)
(201.19)
NON-CURRENT
LIABILITIES
Total Long term
Liabilities
56
CURRENT LIABILITIES
term financing
Accrued mark-up
Provision taxation
Total Current
Liabilities
Total Liabilities
TOTAL EQUITY &
LIABILITIES
140.27
101.29
79.07
87.33
92.17
83.63
52.30
31.46
15.46
34.20
7.78
5.62
4.17
5.01
6.01
8.52
6.49
1.72
4.37
1.04
240.20
165.69
116.43
112.16
133.42
297.01
206.27
205.12
230.98
301.19
100.00
100.00
100.00
100.00
100.00
57
S.no
Formula's
1
2
3
4
5
6
7
8
9
10
Profibility Ratios
Assets Turnover
Equity Multiplier
Net Profit Margin
Rate of net profit

Cost of Goods Sold/Total Net Sales *100
11
12
13
14
15
16
17
18
19
20
Liquidity Ratios
Working Capital
Current Ratio
Quick Ratio
Inventory Turnover
Days on Inventory
A/C Payable payment
Days on A/C Payable
Total Days

Quick Assets/Current Liabilities
Cost of Goods Sold/Average Inventory
365/Times
365/Times
365/Times
21
22

Debt Ratio
23
24
Gearing Ratio
Interest Cover

L.T.D + Preferred Share/L.T.D + S.H.E + Pref. Share
*100
25
26
27
Invertor's Ratios
Earnings per share
Price earnings ratio
Dividend Yield
Net Profit-Preferred Dividend/No. of Shares

Market Price/Earnings per share
28
58

Ratio Analysis
2013
2012
2011
2010
2009
Average
Industry
89.14
229.02
322.13
350.17
205.39
239.17
1.16
(49.84)
35.16
5.41
36.69
51.26
15.74
4.44
16
25.30
(33.08)
(5.15)
(28.01)
(25.48)
(13.28)
(50.76)
(94.10)
(95.13)
(76.35)
(49.70)
(73.21)
298
35.11
(71.65)
(52.64)
(330.38)
(157.82)
(115.48)
8.12
15.35
1.68
10.48
24.96
107.14
92.47
83.36
85.63
(55.91)
133.34
(0.69)
5.60
100.39
88.11
(33.34)
(7.14)
7.53
16.64
14.37
(0.39)
4.87
(55.80)
(14.86)
3.48
13.27
8.43
(9.10)
5.50
(55.91)
15.35
1.68
10.48
24.96
(0.69)
3.33
(501,456,514)
(397,846,571)
(269,292,228)
(254,035,957)
(321,535,772) (348,833,408)
0.14
0.29
0.49
0.40
0.24
0.31
2.38
0.05
0.05
0.09
0.05
0.01
0.05
1.83
12.67
9.51
9.62
14.26
8.48
10.91
4.54
28.80
38.37
37.93
25.59
43.05
34.75
53.84
23.97
39.61
35.88
26.45
35.54
32.29
47.97
15.23
9.22
10.17
13.80
10.27
11.74
2.11
1.42
4.69
9.47
18.89
5.14
7.92
7.53
256.80
77.79
38.55
19.32
70.98
92.69
93.15
(212.77)
(30.21)
9.55
20.07
(17.67)
(46.21)
187.11
2.97
2.06
2.05
2.31
3.01
2.48
0.86
(28.84)
(38.19)
(84.37)
(90.71)
(83.39)
(65.10)
68.63
43.00
1.85
1.63
(16.35)
4.21
13.49
7.88
(8.63)
8.43
1.75
9.87
2.89
2.86
14.90
(4.57)
5.13
30.79
5.90
24.57
12.36
8.52
2.27
3.47
4.64
6.01
4.93
4.26
1.18
3.57
3.49
2.35
4.85
5.50
3.95
30.52
59
Interpretation:
company average assets turnover is 239.17 which are not better than industry 1.16 ratios.
company can turn earns a return on its investment in assets. In other words, ROA shows
or profits, company average rate of return on total assets is 15.74 which is better than
company, company average rate of return on S.H.E is (13.28) which is not better than
industry 16 ratio.
than by equity. In other words, investors funded fewer assets than by creditors; company
average equity multiplier is (73.21) which are better than industry 298 ratio.
of capital employed, company average rate of return on capital employed is (115.48)
average net profit margin is (0.69) which is better than industry 5.6 ratio.
more favorable. Higher ratios mean the company is selling their inventory at a higher profit
percentage; company average rate of gross profit is (0.39) which is not better than
60
expense is (9.10) which is not better than industry 5.5 ratio.
average rate of net profit is (0.69) which is better than industry 3.33 ratio.
liabilities, company average current ratio is 0.31 which is not better than industry 2.38
ratio.
better than industry 1.83 ratio.

does not overspend by buying too much inventory and wastes resources by storing nonsalable inventory. It also shows that the company can effectively sell the inventory it buys;
company average inventory turnover is 10.91 which are better than industry 4.54 ratio.
be sufficient, company average days on inventory is 34.75 which is better than industry
53.84 ratio.
frequently throughout the year, company average A/C receivable turnover is 32.29 which
are not better than industry 47.97 ratios.
61

payables turnover is 7.92 which is not better than industry 7.53 ratio.
company are (46.21) which is better than industry 187.11 ratios.
increases creditors will no longer loan them money. Companies with higher debt ratios are
better off looking to equity financing to grow their operations, company average debt ratio
is 2.84 which is better not than industry 0.86 ratio.
attract additional lending capital; in this case average debt to equity ratio is (65.10) which
is better than industry 66.63 ratio.
a business is subjected, in this case average gearing ratio is not calculated than industry
is better position 43 ratios.
62
company can pay interest expenses on outstanding debt, company average interest cover
is 1.85 which is better than industry 1.63 ratios.
Earnings per share: Earnings per share are the same as any profitability or market
its shareholders, company average earning per share is 2.86 which is not better than
average price earnings ratio is 12.36 which are better than industry 8.52 ratio.
compared to the fair market value of the stock. This means the investors are getting highly
compensated for their investments compared with lower dividend yielding stocks. A high
or low dividend yield is relative to the industry of the company, company average dividend
yield is 4.26 which are better than industry 1.18 ratios.
liquation value of the shares, company average book value per share is 3.95 which are
not better than industry 30.52 ratios.
63

Stores, spare & loose tools
2013
2012
Note __________Rupees__________
Stores
Spares
Loose tools
14,689,134
11,970,581
335,072
26,994,787
(2,460,453)
24,534,334
Less: Provision for slow moving stores
Stock in trade
Finished sugar
Sugar in process
15,022,946
13,436,648
373,745
28833,339
(2,460,453)
26,372,886
2013
2012
Note __________Rupees__________
20,952,798
85,337,759
1947496
1871901
22900294
87209660
2013
2012
Note __________Rupees__________
Loans, prepayments & advances

Unsecured &
Considered good advances
To supplier
To contractors
Advance against expense
To growers
1991135
460360
239290
4472960
7163745
1915855
9079600
5197266
471361
641373
9251605
15561605
3988944
19550550
2013
2012
_________Rupees___________
Cash in hand
Cash at banks in current accounts
55133
2178252
223385
Note
Deferred liability
Quality premium
Deferred tax liability
10.1
10.2
172105
2143464
2315569
2013
2012
_______Rupees__________
100877138
21043415
121920553
199877138
19549580
120426718
64
2013
2012
_________Rupees___________
Deferred taxation
Taxable temporary difference
On property, plant & equipment
Deductable temporary difference
Brought forward losses
Other deductable difference
21904573
22877300
861158
(861158)
21043415
3327720
(3327720)
19549580
152954293
2660814
155615107
146240238
2257864
148498102
14051817
1496604
15548421
1496604
11323464
10714752
1257077
836648
727673
42877
9375178
1357338
908912
7794467
33014922
204178450
5692
565302
561104
28309
11142064
1357338
908912
2440119
17008840
176830407
11142064
1113920
1113920
(2880806)
9375178
2446929
8376297
318838
8695135
11142064
21936059
(1131132)
20804927
7838536
20346650
380289
(6629416)
21936059

Creditors
For sugarcane
For stores & spares
Accrued liabilities
Accrued expenses
Road cess
Other liabilities
Advance from customers against sales
Employees provident fund
Federal excise duty payable
Income tax withheld payable
Retention money
Workers profits participation fund
Workers welfare fund
Dividend payable
Others
Workers profits participation fund

Opening balance
Allocated during the year
Interest accrued during the year
Paid during the year
Closing balance
Provision for taxation
Opening liability
Prior year tax expense
Less: Advance tax for the year
Provision for the year
65
Note
Sales Net
Sugar
Molasses
Brokerage
Direct levies
Cost of sales
Raw material consumed
Manufacturing expenses
Opening stock:
Finished stock sugar
Sugar in process
Closing stock:
Finished stock sugar
Sugar in process
2013
2012
_______Rupees__________
221598150
13285248
234883398
(280650)
(16957829)
(17238479)
217644919
780164500
52946636
833111136
(924500)
(57825932)
(58750432)
774360704
157585878
68306633
225892511
656586290
119470117
776056407
85337759
1871901
87209660
313102171
138967362
1859250
140826612
916883019
(20952798)
(1947496)
(22900294)
290201877
(85337759)
(1871901)
(87209660)
829673359
2355672
1114634
9299128
1409785
25096416
624857
5576505
623294
15536735
1664196
68306633
7666387
2853183
26937984
6586199
40949249
1247240
6796923
1742432
17128873
2529289
119470117
83820
441885
11300
537005
63500
942846
1006346
(121680503)
14100000
(8.63)
118873117
14100000
(8.43)
Manufacturing expense
Chemicals
Oil & lubricants
Stores & spares consumed
Packing material consumed
Salaries & allowances
Repair & maintenance
Fuel & power
Handling
Depreciation
Others
Distribution cost:
Advertisement
Loading & stacking
Others
Earning per share
Weighted average number of ordinary shares
Earnings per shares
66

AFS

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

AFS

Uploaded by

Copyright:

Available Formats

ASSIGNMENT

ANALYSIS OF FINANCIAL STATEMENT

MEHRAN SUGAR MILLS LIMITED

Sir Danish Iqbal

MIRPURKHAS SUGAR MILLS LIMITED

MIRZA SUGAR MILLS LIMITED

Mehran Sugar Mills Limited

Other operating income

Profit before tax

Meharn Sugar Mills Limited

Stores & spare parts

Cash & bank balances

Total Current Assets

EQUITY & LIABILITIES

Total Current Liabilities

TOTAL EQUITY &

Profit & loss Account

Stores & spare parts

Trade debts - unsecured

Short term investment

Advance income tax

Cash & bank balances

Total Current Assets

Long term investment

EQUITY & LIABILITIES

Total Long term

Total Current Liabilities

TOTAL EQUITY &

Profit & loss

Other operating expenses

Other operating income

EQUITY & LIABILITIES

Total Net Sales/Total Assets *100

Rate of return on total assets

Net Profit After Tax/Total Assets *100

Rate of return on S.H.E

Net Profit/Total S.H.E *100

Total Assets/Total S.H.E *100

Rate of return on capital employed

EBIT/Capital Employed *100

Net Profit Margin

Net Profit After Tax/Sales *100

Rate of cost of good sold

Cost of Good Sold/Total Net Sales *100

Rate of gross profit

Gross Profit/Total Net Sales *100

Rate of operating expense

Operating Expenses/Total Net Sales *100

Rate of net profit

Net Profit/Total Net Sales *100

Current Assets - Current Liabilities

Current Assets/Current Liabilities

Quick Asstes/Current Liabilities

Cost of Good Sold/Average Inventory

A/C Receivable Turnover

Net Credit Sales/Average A/C Receivable

Days on A/C Receivables

A/C Payable payment

Net Credit Purchases/Average A/C Payable

Days on A/C Payable

(Inventory Days + A/R Days) - A/P Days

Total Liabilities/Total Assets