INTERNSHIP REPORT

Bachelor of Accounting and Finance

Name: SAWERA ABID

Registration no: CIIT/FA18-BAF-001/WAH

Specialization: ACCOUNTING AND FINANCE

Contact Number:

E-mail: m

COMSATS University Islamabad, Wah campus.

Company Name: WAH NOBEL GROUP OF COMPANIES

Contact Number: (92-51)4535863, (92-51)4545243-6, (92-51)5568760

Email: gmmkt@wahnobel.com

Address: GT Road Wah Cantt Pakistan

Supervisor Name: Sir Saqib Basheer Butt

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 SAWERA ABID

Completed internship at

WAH NOBEL GROUP OF COMPANIES

Internship report submitted for the final evaluation in partial fulfillment of the requirements
for the degree of

BACHELOR OF ACCOUNTING & FINANCE

It is certified that, the internship report and the work contained in it conforms to all the
standard set by the institute for the evaluation of any such work.

1. _________________________

2. _________________________

3. _________________________

4. _________________________

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 Faculty Supervisor Internship Approval

This is to certify that Miss Sawera Abid Registration No. CIIT/FA18-BAF-001/WAH has

completed his/her Internship Report on WAH NOBEL GROUP OF COMPANIES under my

supervision. The report is complete in all aspects.

Dated: November 29, 2021

Signature of Supervisor

_____________________________

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 IN THE NAME OF ALLAH, THE MOST GRACIOUS AND
BENEFICIENT WHO’S HELP AND GUIADANCE I ALWAYS SOLICIT
AT EVERY STEP, AT EVERY MOMENT.

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 DEDICATION

I devote this report to my respected parents and honorable professors who have constantly
given me moral help. Without their assistance and support it would not be feasible for me to
entire this task in a particular time restrict. They always have been a source of
encouragement. May Allah Almighty bless them with lots of happiness and provide them
power to inform me in my life ahead.
AMEEN

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 ACKNOWLEDGEMENT

First of-all I am very thankful to Almighty Allah, the most Beneficent, the Merciful, for giving
me too much knowledge and potential to do my report and compile it with accurate way.
Here I would like to thankful to my parents who always support me in a single step of my life
and their support gave me more strength and faith for success in all activities of life. Now I
would like to thankful to universities teaches and especially thanks to Sir Saqib Basheer Butt
who will guide me to complete my report.
At-last but not least I am very thankful to my sir of WAH NOBEL, who gave me such a great
useful information and my colleague who help me in various problems; she gave me
suggestions and encourage me.

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TABLE OF CONTENTS:

CAP. DESCRIPTION PAGE

NO. NO.
Executive Summary
.01 INTRODUCTION OF CHEMICAL INDUSTRY
In Global Scenario
In Pakistan
.02 OVERVIEW OF ORGANIZATION
Wah Nobel Group at a Glance
Vision Statement
Mission Statement
Our Ambition
Core Values
Certifications
Board of Directors
Main office
Employees Detail
Competitors of WNCL
.03 INTRODUCTION OF DEPARTMENTS OF WNCL
Marketing Department
IT Department
Purchase Department
Admin Department
Accounts and Finance Department
Duties and responsibilities of members of
finance department
Comments on the Organizational structure

.04 ANALYSIS
SWOT ANALYSIS
Weak Areas of Organization
FINANCIAL ANALYSIS
Significance of Financial Analysis
Ratio Analysis:
Liquidity Ratios
Solvency Ratios
Profitability Ratios (Based on sales)
Profitability Ratios (Based on investment)
Turnover/Activity Ratios
Dupont Analysis

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 Vertical Analysis
Horizontal Analysis
Competitor Internal Analysis
External Analysis
.05 CRITICAL ANALYSIS
Learning through observations
Evaluate your gains in understanding and completing tasks
Reflection on your learning during internship
Compare and contrast with theory (course concept)
.06 CONCLUSION
.07 RECOMMENDATIONS
.08 REFERENCES
.09 APPENDICES

EXECUTIVE SUMMERY:
This is an internship file regarding the distinctive products of WNC. It begins with an
introduction about WAH NOBEL GROUP followed by the way of the introduction of WAH
NOBEL CHEMICAL LTD--. It offers a briefing about all its products. This file additionally
consists of the different points of these merchandise alongside with the strength and
weaknesses of the corporation.
This document indicates an internal structure of the working of the WNC enterprise. It
gives a detail about the supportive department that has helped the business in their everyday
working. Also, it discusses the objectives, policies of the corporation. There are also some
suggestions/recommendations for WAH NOBEL.
This is an internship file regarding the introduction of WNCL and their merchandise
and my understanding throughout my internship program. A brief introduction of all
departments in which I carried out remarks on WNCL shape as given at the cease of this area.
In the later phase I describe about my studying in my internship mastering session and
a brief introduction of my area of internship. It provides distinctive statistics about the work

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which are assigned to me, my performance and my learnings in my internship mastering
session.
The ratio analysis of recent five years of company is given in this 2 nd last part of
report. The ratios and their formulas along with the bar charts are carried out and give
comments about the performance of the organization in latest five calendar years. In the give
up, I quickly consider the corporation according to my learnings and concluded my views
about the enterprise, the closing phase of last section tells us about some guidelines and hints.

CHAPTER # 1

INTRODUCTION OF CHEMICAL INDUSTRY

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1.1. IN GLOBAL SCENARIO:
The global chemical enterprise types the cloth of the present-day world. It
converts fundamental raw materials into greater than 70,000 exceptional
merchandises on longer only for industry, but also for all the consumer items that
people count number on in their everyday lifestyles. Aside from this the chemical
quarter contributes in quite a few different fields like agriculture, pharmaceutical,
material, energy, surroundings, communications, transport, infrastructure, housing
as properly as covers thousands of industrial merchandise like paper, paint, plastic
merchandise, soap/detergents, perfumes/fragrances, varnishes, pharmaceutical, dyes
and so on in order to emphasize the significance of the chemical industry in assembly
the key challenges for the future, the United countries business enterprise proclaimed
2011 as the “International Year of Chemistry”. The chemical industry for their
outputs/inputs of products (Export/Import) is predominantly primarily based on the
availability of feedstock of simple chemical substances in their country. To tackle
environmental issues chemical groups are increasingly working towards decreasing

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 electricity intensity of their operations, minimizing effluent discharge and air
pollution growing the share of recyclable products in their portfolio and diversifying
their uncooked fabrics base to consist of feedstock. Over the ultimate 10 years, the
share of Asia in international chemical sales has expanded through about 14%.

1.2. IN PAKISTAN:
In Pakistan, the chemical industry is one of the oldest, which concerned the
production of primary chemical products to cater for the home wishes. With the
liberalization in 1990s, Pakistan’s basic chemical enterprise used to be exposed to
international competition, decreased roles of authorities, insulation of high tariffs,
import substitution policies, guidelines, protection legal guidelines, intellectual
property rights, patents and so on. As nicely as gradual moving of enterprise from
manufacturing of primary chemical compounds to petrochemicals, prescription,
drugs area of expertise chemical substances, construction chemical substances,
dyestuffs, paints and agrochemicals and so forth. Over the years, some standard
sectors have developed, however the Chemical Industry in Pakistan is nevertheless at
a very nascent stage. In early 50’s, Pakistan Industrial Development Council (PIDC)
was once set up with the aid of Government, for industrialization of the country. As a
result, a massive chemical estate comprising Pak American Fertilizers, Maple Leaf
Cement, Antibiotics (Penicillin) and Pak Dyes and 1 World Chemical Outlook 2011
(UNEP) 7 Chemicals was once hooked up at Iskandar bad (Daud Khel), district

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Mianwali. This property performed an essential role and served as a nucleus for
chemical industry in Pakistan.

CHAPTER # 2

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 OVERVIEW OF ORGANIZATION

2.1. WAH NOBEL GROUP AT A GALANCE:

Founded in 1962, Wah Nobel is a joint challenge of Celsius category of Sweden,
ALMASHAL group of Saudi Arabia and Pakistan ordinance Factory Pakistan. For more
than three a long time Wah Nobel has stood as an image of safety, reliability, service, and
commitment. Wah Nobel’s products reveal in the best reputation in Pakistan and abroad.
This has been executive via innovation, experience, state-of-the artwork technology and
imagination and prescient for the future. Wah Nobel is absolutely dedicated to a fine Policy
that consequences in production of quality products conforming to stringent requirement of
customers. The hallmark of the Company’s Policy is to consistently supply quality products
and services at competitive prices.

As a sequel following agencies have been set up:

 Wah Nobel (Pvt) Ltd.
 Wah Nobel Chemicals Limited- 1982
 Wah Nobel Baluchistan Explosives (Pvt) Ltd- 1993

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  Wah Nobel Acetates Limited-1998
 Wah Nobel Gilgit-Baltistan (Pvt) Ltd-2014
 Wah Nobel Energy Ltd-2014

All the organizations are being run on sound business tracks and experience a solid
popularity in the market. As Wah Nobel Group merchandise are manufactured by exercising
stringent quality manipulate, under exacting international standards. Hence, have received
the believe of home as nicely as foreign customers.
Wah Nobel Group of companies is thoroughly committed to a coverage that ensures a
steady supply of fantastic merchandise and offerings at competitive costs. Wah merchandise
is the result of combine efforts of all branches as mentioned bellow. Nobel Group of
Companies create fee and attain Competitive benefit by using imparting fantastic products,
Quality:
 Manufacturing department
 Marketing/ Advertising department
 Sales/ Income department

 Accounts department
 Finance department
 IT department
 HR department
 Logistic department
 Procurement department
 Business/ Enterprise department

2.1.1. WAH NOBEL (PVT) LTD:

Wan Nobel (Pvt) Ltd are the pioneers in the manufacture of business
explosives and blasting add-ons in Pakistan. Its products have made precious contribution in
the country wide improvement initiative like TARBELA and MANGLA Dams, Kara Kurram
Highway, Islamabad Lahore motorway and distinct initiatives involving tunneling, mining
and quarrying and so on. Commercial explosives produced include WABOX, WABOFITE

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and WABONITE. The present-day explosives through Wah Nobel is emulated which is
emulsion explosives. its advantages encompass absence of headache, protection, rock
breaking traits (due to big extent of electricity produced on initiation), stability in bloodless
and its resistance to water.

2.1.2. WAH NOBEL DETONATORS (PVT) LIMITED:

WND (Pvt) Ltd is a thoroughly owned subsidiary of WAN NOBEL (Pvt) Ltd & has
been set up for the manufacture of industrial detonators. The manufacturing facility is
located in S.D.A, Industrial Estate, Hatter (N.W.F.P).
The industrial gadgets compose of sophisticated machinery and equipment for
beneath taking manufacturing of initiatory explosives and plain detonators strictly to
international standards in the initial section.
By institution of production facilities of commercial detonators W. N has taken a
jump ahead in reaching self-sufficiency in manufacture of business explosives and
accessories.

2.1.3. WAH NOBEL ACETATES LTD:

Wah Nobel Acetates Limited is manufacturing Glacial Acetic Acid, Ethyl Acetate and
Butyl Acetate. Technical understanding for the unit has been acquired from China. The
science chosen is primarily based on Ethanol air oxidation technique and has the crucial
attribute of main consumption of indigenous uncooked fabric. The annual manufacturing
ability of the plant is 5000 ton for Acetic Acid and 4000 ton for Ethyl/Butyl acetate. This
capacity is ample to meet the complete domestic demand, thus keeping off dependence upon
imports of these merchandise and in the end saving huge quantity of treasured overseas
exchange for the employer.

2.1.4. WAH NOBEL CHEMICAL LIMITED:

Wah Nobel Chemicals Ltd, are a subsidiary agency of Wah Nobel (Pvt) Ltd. It used to
be proposed in May 1982 to set up a urea formaldehyde plant of 6000 M/Tons. At that time

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there was once no neighborhood manufacture of formaldehyde in small plant of 800 M/Tons
capability. There were few other even smaller similar gadgets in unorganized area. In 1983
govt sectioned this plant having estimated value of 68 million.
The plant was once commissions in May 1985 was once formally inaugurated
through the president of Pakistan on 21st July 1986. The industrial unit of WNCL comprises
of two plants life one for the manufacture of formaldehyde & the second one for the
manufacturing of urea & phenol formaldehyde liquid resins. The company was set up to
caster in primarily for wooden industry engaged in the production of plywood, chipboard,
flush doors, it additionally offers fabulous slues for other industries against their precise
necessities.
Formaldehyde unit is based on the license and technical knowledge of supplied by
way of Messrs. PERSTORP A.B. of Sweden who are the producers of broad range of
merchandise based on formaldehyde for variety of trades and functions. PERSTORP
formaldehyde technique is the most contemporary and sophisticated and is a direct route in
obtaining high range/fantastic formaldehyde from methanol. The resultant product has low
methanol and formic acid contents and can be manufactured to strength as excessive as 56%
answer in water. PERSTORP have so a long way licensed a giant number of Flora in
Europe. Asia and America and these plants are giving the reliable yield of excessive high-
quality product. Our Formaldehyde plant is based on their ultra-modern manufacturing
strategies.

Resin unit of WNC has been licensed by a very reputed firm of Spain namely
FORESA. FORESA is linked to TAFISA the set of industries, who are necessary producers of
several characteristics of fiberboard, plywood, and chipboard. As such FORESA is a
company, which has big journey around urea formaldehyde. Phenol formaldehyde and
Melamine formaldehyde resins used for utility in wood industries and laminates. Hence the
technical understand how furnished to us is backed through their long experience in this
area.
Formaldehyde, urea formaldehyde and phenol formaldehyde resins of Wah Nobel
Chemical are designed to go well with the specific requirement of plywood, chipboard fiber
board and other associated industries desirous of accomplishing global requirements of

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standard in their completed merchandise. In addition, warm tops and cold units have
attained specific importance in the industrial circles.
The corporation management have innovative thinking, it is planning to similarly
amplify the production on capacity of the agency by putting in new plant after the installation
of this plant the manufacturing capacity will be doubled will reach to 14,000 M/tons. Hence,
we can predict that the organization will prosper in future, promote greater more generate
increased revenues and contribution in country wide development and G.D.P.

2.2. VISION STATEMENT:

“The organization vision is to be the market chief and serves
the needs of clients with complete dedication, furnish
them the present day and except their future desires and create
price for customers, shareholders, personnel and the
community.”

2.3. MISSION STATEMENT:

 To meet the existing day wishes of its clients and depends on their future needs.
 To keep close and direct contacts with the clients to ensure their complete
satisfaction.
 Constantly improves the fine of all our things to do through operational
excellence.
 To supply fullest regard to the safety and fitness of employees and customers.
 To promote professionalism at all degrees via everyday education, training, and
improvement of human resources.

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  To defend the environment and the regional from pollution.
 To create a conductive work surroundings and encourage humans to function to
their fullest conceivable and to reward talent.

2.4. OUR AMBITION:

To be the first choice of customers, investors, shareholders,
employees and the vendor and be a respected member of
corporate society.

2.5. CORE VALUES:

Customer’s satisfaction Professional honesty Recognition
and rewarding of talent Safety and Corporate culture
team spirit.

2.6. CERTIFICATION:
The Wah Nobel Group of Companies is certified for ISO 9001-2000, 14001 &
OHSAS 18001.

2.7. BOARD OF DIRECTORS:

Lt. Gen. Ali Amir Awan, HI(M) Chairman
Mr. Tor Bjorn Saxmo Vice Chairman
Maj Gen Azhar Naveed Hayat Khan, HI(M) Director
Mr. Muhammad Arshad Director
Mr. Tariq M. Rangoon Wala Director
Mr. Shafiq Ahmed Siddiqui Director (N.I.T. Nominee)
Mr. Usman Ali Bhatti Director

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 Chief Executive Brig (R) Shiraz Ullah Choudhry, SI(M)

Audit committee
Mr. Tariq M. Rangoon Wala Chairman
Mr. Muhammad Arshad Member
Mr. Usman Ali Bhatti Member

Company Secretary and Chief Financial Officer

Mr. Tanveer Elahi, FCA

Human Resources &Remuneration (HR&R) committee

Mr. Muhammad Arshad Chairman
Mr. Tariq M. Rangoon Wala Member
Brig (R) Shiraz Ullah Choudhry Member
Legal advisors: The law firm of Basit Musher

Registered office G.T. Road, Wah Cantt.

2.8. MAIN OFFICE:

Wah Nobel Group of Companies have only one main office and that office was
located at G.T. Road, Wah Cantt. That main office will look after the affairs of the all the
companies of Wah Nobel and all those companies are also established at Wah Cantt as well.
The purpose behind the establishing the main office and its factories in Wah Cantt is that,
that there is POF is also established in Wah Cantt. Wah Nobel is also assisting POF, and
they also avail some assistance from them as well in their different works, due to which it is
easier for them to establish their Head Office in Wah.
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 One of the other reasons behind the establishment of the head office in Wah is the
geographical position, because if we talk about the Wah from the geographical point of view,
we found that this area is more green, covered with thick forest, and having an open
unconstructed area. So due to this aspect they can build it from time to time according to
their needs and can slowly and gradually extend the factories and their setup in a sound
place. Forests in these areas are given them a shelter to the Wah Nobel in the case of the
wars between the Pakistan and India will take place at any time. Other main support for
them in the Wah is the direct road link of the head office with the G.T. road due to which
24hrs they can carry out their transportation activities directly without passing from any
other link roads and can carry out their journey towards their destinations.
From the security point of view if we talk about the Wah, we come to know that Wah
is not so big enough that will be difficult for the law and order agencies and other security
organization to safeguard it from the other threats like the terrorism and other illegal
activities. Meanwhile POF is also establish and working here before Wah Nobel, so under
these circumstances management of Wah Nobel decide to build head office in Wah Cantt.

2.9. EMPLOYEES DETAIL:

Whole Group:
Total 603
Permanent Employees 407
Casual Employees 69
Contract Based Employees 41
Daily Wages Employees 36
Third Party Contract 24

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 Deputation Base 05
Management Trainees 21

Wah Nobel Chemicals Ltd Employees Details: -

Total 201
Permanent Employees 109
Casual Employees 54
Contract Based Employees 10
Daily Wages Employees 11
Third Party Contract 09
Management Trainees 08
Deputation Base 0

2.10. COMPETITORS OF WAH NOBEL CHEMICALS

LIMITED:
 Dyna Pakistan
 Super Chemical Karachi
 Kettle Producers
 Soleri Karachi

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These are the competitors working against the Wah Nobel Chemicals Ltd. The main
competitor is Dyna Pakistan who expending its business all around Pakistan at
competitive prices. Wah Nobel Chemicals overcome this competition by producing
quality products and building strong relationship with customers, suppliers, and
trade partners. In marketing department engaged to establish good reputation in the
market. Kettle producer is depended on Wah Nobel Chemicals for purchase of
formaldehyde. So, at the same time KATTLE Producer is a competitor and the
customer of Wah Nobel Chemicals.

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 CHAPTER # 3

INTRODUCTION OD DEPARTMENTS
OF WAH NOBEL CHAMICAL LIMITED

INTRODUCTION OF DEPARTMENTS OF WNC:

Following are the main departments:
1- Marketing department
2- IT department
3- Purchase department
4- Admin department

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 5- Accounts and finance department

3.1. MARKETING DEPARTMENT:

Marketing Department is served by three main personals senior general
managers and two sub-ordinates senior supervisor and marketing manager. they are
accountable for the fulfilment of sales objectives, budgeting, marketing forecasting,
advertising income promoting search for new clients devising pricing approach coordinate
with manufacturing debts and transport department for shipping of products accountable for
the success of income ambitions profitability visit customers for sale merchandising and
restoration of first-rate fee and a lot of different matters.

Functions of Marketing Department:

 To control all the marketing & selling activities which are underway in the
department.
 Daily performance report from sub ordinates.
 Make decision on policy matters.
 To look after plant activities
 To monitor timely production as per requirement of marketing department.
 Customer’s complaint conflict handling
 Arrange training programmed for office and staff
 To maintain office discipline.
 To monitor R/D of WNC for the development of new product as per
requirement.
 Promotion of customer co-ordination system and removal of barrier if any
one there.

 The price fluctuation decisions.

 Lower staff promotions timely rewards.

 To visit various customer and solve their problems regarding products, sales,
price, quality, and services.
 Telemarketing
 Recovery from customer against their credit facility, if any.
 To achieve revenue target.

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  Work for maximization of market share.
 Analyze market situation and feedback to the top management for corrective
actions.
 Co-ordination with sub ordinates.
 Constantly eye over competitors’ activities.
 Visit to customer telemarketing, faxes, and e-mail.
 Constantly overview of the Lahore region market.
 Collect information about competitor’s activities and feedback to DMM.
 Work to achieve the yearly revenue and recovery targets.
 Sales promotion.
 Work for relationship improvement.
 Maximization of market shares.
 Visit to customer telemarketing, faxes, and e-mail.
 Constantly evaluating of market activities.
 Collect information about competitor’s activities and feedback to DMM.
 Collect orders from customer and send to the marketing department for
dispatching the materials required by the customer.
 Visit to customer for recovery purpose.
 Search for new market.
 Keep in touch with production department for new product development
 Workout to maximize to market share.

3.2. IT DEPARTMENT:
IT department of Wah Nobel is dealing with following areas:
 Management information system
 Internet/ email facility
 Maintenance of Wah Nobel Website

COMPUTER CELL:

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IT STAFF:
1-Deputy manager programming
2-Junior officers
3-Data entry operators

HEAD OFFICE NETWORK:

The local area network comprises of following servers:
 Main server
 Backup server
 Internet proxy server

SOFTWARE DEVELOPMENT ENVIRONMENT:

 FoxPro
 Oracle

OPERATING SYSTEM IN USE:

 Unix
 Window 98

MANAGEMENT INFORMATION SYSTEM:

DATA PROCESSING SYSTEM:
 Accounts payables and receivables
 Inventory control system
 Payroll system
 General ledger

ACCOUNTS PAYABLES AND RECEIVABLES:

Transaction is fed on daily basis. Following documents are fed on daily basis after
internal audit and approval of concern officer
 Production voucher
 Delivery Note (finished goods)
 Receipts
 Account payable voucher

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  Cheques

INVENTORY:
Feeding of inventory is carried out in the first week of every month. Feeding will take
about two days.

PAYROLL:
Payroll is prepared in last week of every month. Provident fund and loan of
employees are also maintained.

GENERAL LEDGER:
Feeding of general ledger is performed after closing of all subsidiary’s ledgers. I.e.,
sales ledger, voucher register, bank ledger, inventory. Payroll. All the ledgers along with
summaries are checked by accounts department. After checking JVs are prepared for feeding
in GL. About two hours are required for feeding of all JVs. After feeding P/L a/c along with
details of accounts are available.

3.3. PURCHASE DEPARTMENT:

In purchase department purchasing and import procedure are as follows:

PURCHASING PROCEDURE:
Each time a department wants goods it initiates purchase requisition which shows full
description of raw material required. If full description can no longer be furnished, then P.R
should be supported with drawing/sketch or sample of raw material required. For domestic
purchase buy person branch should provoke P.R one month earlier than the date of goods
required and for imports it should be initiated 4 months before the date of goods required.
Purchase branch after receiving P.R calls for quotation from different suppliers and fees P.R
on the based totally of comparative announcement quotation, at least three vendors are
required for comparative declaration however if raw material required of such nature that
suppliers are very rare then even one quotation is acceptable/perfect. Priced P.R is audited
by internal auditor and accredit` ed by M.D. priced P.R shows bases for purchase i.e.,
Either in cash or savings. Buy order placed to the supplier whose offer is most reasonably
priced. Buy order shows the mode of fee, date of charge and date of shipping of raw

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material. PO is necessary in case of money buy. The person who obtained the raw material
from provider place the following remarks on the goods transport note presented by supplier.
“RECEIVED SUBJECT TO QUALITY APPROVAL”
Raw material received and dispatched to initiating branch along with items forwarding
word, where inspection branch inspects goods. Goods are saved in store if passed by
inspection branch. Inspection department issues inspection report after inspection and keep
issues a receipt voucher after taking goods on charge. Inspection report and receipt voucher
are sent to buy department for payment to supplier. Purchase branch sends the unique bill of
supplier along with inspection file receipt voucher, and authorized P.R to account
department where cheque is organized for fee to dealer.

IMPORT PROCEDURE:
After receiving the purchase requisition, buy branch invites quotations from international
suppliers and prepares comparative statements of their offers. Most cost-effective dealer is
asked to ship Performa bill which suggests the supplier’s terms and conditions. If suppliers’
term and condition are standard, then latter of credit is established with bank.
To establish latter of credit following documents are required.
 L/C opening form
 Performa invoice of supplier
 Form I duly filled and stamped
Opening bank transmits the L/C files to advising financial institution and beneficiary
confirms the receipts of L/C documents. Then before cargo beneficiary sends a copy of non-
negotiable files to the buyer.

Non-negotiable documents are as follows

 Commercial invoice
 Bill of lading
 Weight and packing list
 Certificate of origin
These files are dispatched to our clearing agent who manages clearance of shipment. These
files must be accurate advocated in prefer of clearing agent so that there would be no chance
of any problem in the clearance of shipment. When these non-negotiable documents are

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introduced to shipping company. The shipment is then transported to its last destination. If
goods are in precise and applicable condition, then they are bought on expenses by
store/user department. If good are broken, then claim for insurance is lodged.

3.4. ADMIN DEPARTMENT:

 To maintain employees’ personal files, data, records
 Induction of manpower, recruitment, and retirement of employee.
 Warning letters are issued for maintenance of discipline.
 Transfer of employees, dismissal, and charge sheets.
 Daily attendance and maintenance and of leave records.
 Arrangement of functions
 Details of abroad visits and documentation
 Issue of security passes.
 Implementation of rules and regulations
 Allocation of job description and evaluation of employee performance
 Training of employees.
 Dealing with personnel legal matters.

3.5. ACCOUNTS AND FINANCE DEPARTMENT:

Accounts are maintained in the Accounts and finance department. The department is headed
by G.M (Finance and Accounts) who is accountable to M.D. and Board of Director. He is
the most powerful and important person after M.D. After him second in command is Deputy
General Manager (Accounts & Finance).

FUNCTION OF DEPARTMENT:
 Regulation of Finance and provision of management Information System to the
executives and competent authority.
 Collection of funds and settlement of liabilities.
 Utility of funds of company for maximum benefits of corporation.
 Preparation of annual development program and annual budget.
 Production and finalization of office expenditure.
 Monitoring of expenditure budget and preparation of various statements.

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  Preparation of management accounts with a view to regulate and monitor funds made
available by government.
 Introduction and implementation of stock and cost control techniques along with
stock verification and cost pricing policies.
 Liaison with external auditors and ensuring timely and satisfactory completion of
Audit.
 Keeping efficient banking system.
 Negotiation of loans and advance with Banks.
 Keeping and settlement of CPF (Contribution Provident Fund) including advances
and their recoveries.
 To maintain a system, appropriate checking and reduction of errors,
misappropriation of funds and embezzlement.
 Keeping and maintenance of books and records of company as assets of corporation.
 Preparation of Annual Accounts and Reports as necessary in the law.

EXTERNAL AUDIT
The auditors are appointed by the shareholders and their remuneration is fixed at the
annual General meeting each year.
 The powers wasted to these external auditors are as under:
 Right of access “at all times “to the books of accounts and Vouchers.
 Right to require form the directors and Officers of the corporation such information
and explanation as may be necessary for the performance of their duties.
 Right to receive notice of and to attend any general meetings of the company at which
any accounts reported upon by them have been laid before the shareholders.
SIGNIFICANT ACCOUNTING POLICES

Accounting Convention:
The accounts have been prepared under the historical cost convention without any
adjustment for the effects of inflation or current values.
Taxation:
Provision for current taxation has been provided based on taxable income at
applicable rates.

30
 Provision for deferred taxation arises out of timing difference due to accelerated tax
depreciation allowance and gratuity has been made in the accounts on liability method.
Fixed assets:
These are stated at cost less depreciation amortization except capital work in
progress, which is valued at cost.
Depreciation of fixed assets except leasehold land, which is amortized over the period
of lease, is charged to income.
Deferred Costs:
Deferred costs comprise of preliminary expenses, share issue expenses,
commission/brokerage on issue of share and underwriter’s commission. These costs are
being written off over a period of five years.
Stores, Spares, Loose Tools:
These are valued at average cost.
Revenue recognition:
Revenue from sales is recognized on delivery of goods to customers and in respect of
erection and civil contracts on percentage of completion method.

3.6. DUTIES AND RESPONSIBILITIES OF MEMBERS OF

FINANCE DEPARTMENT:
AM FINANCE Mr. ASIF FARUQI:
His duties and responsibilities include:
1- Supervision is dealings with banks and financial institutions.
2- Supervision of loan documents for availing financing facilities from banks / financial
institutions.
3- Supervision of running finance facilities.

4- Supervisions of daily bank position of company’s bank account.

5- Supervision of bank reconciliation statement.
6- Supervision of payments made to suppliers, contractors and employees.
7- Supervision of various kinds of vouchers relating to bank accounts, accounts payable.
Etc...

31
 JUNIOR OFFICER FINANCE Mr. SAJID NADEEM:
He is working for the accounts and finance of WAH NOBEL CHEMICALS AND WAH
NOBEL ACETATES LIMITED. His job assignments include:
1- Correspondence / dealings with banks & financial institutions for operating &
monitoring of company’s bank accounts.
2- Preparation of loan documents for availing financing facilities from banks / financial
institutions.
3- Monitoring running finance facilities and maintaining of records thereof.
4- Preparation of daily bank position of company’s bank accounts.
5- Preparation of bank reconciliation statement.
6- Verifying debit and credit advice received from banks.
7- Payments made to supplier’s contractors and employees.
8- Handling sale proceeds from customers.
9- Preparing petty cash voucher and maintenance of cashbook.
10- Preparing of various kinds of vouchers relating to bank accounts, accounts payable
etc.…

JUNIOR OFFICER FINANCE Mr. ZIA ULLAH:

He is working for the accounts and finance of WAH NOBEL (Pvt) LIMITEDAND WAH
NOBEL DETONATORS (Pvt) LIMITED. His job assignments are like Mr. Sajid Nadeem.

3.7. COMMENT ON THE ORGANIZATONAL STRUCTURE:

Wah Nobel has a matrix organizational structure by which every employee
can record to managers. Chairman of Wah Nobel has all authorities to make any changes
and take any choice at any time. He has the final/closing authority to make final/last
decision. CEO of Wah Nobel reports to Chairman immediately at any time.

32
 All the General Managers of Wah Nobel has the authority to implement the final
decision made by the Chairman or CEO to their subordinates like GM, Managers and other
J.O. All the managers should record immediately to the G.M of their respective branch.
By this way most of their grievances settle down in time, secondly in this way most of
the assets can be used successfully. Their managers can assist them with expert competencies
and give them proper recommendations. They have connection with many humans, with the
sharing details they can without difficulty do their assignment. They rely on every different
statistic.
I assume the adopted organizational shape fulfills the requirements of the companies.
Wah Nobel is divided into specific departments on the basic of their functions carried out.
Each department has a hierarchy structure followed through their personnel. They have
excellent communication float between them. Every lower-level staff can easily communicate
to their GM or Managers and GM or Managers reported to CEO. As a result, each
department is functional in nature. They are doing their task assigned to them.
But one thing that I have found, some of the low-level managers and staff are directly
report to CEO in accordance to my factor of view, I think they have directly involved with
CEO with respect to their work, however its seen odd if we overview the above chart.

33
 CHAPTER # 4

ANALYSIS

4.1. SWOT ANALYSIS:

SWOT analysis is a framework that is quite beneficial and simple for checking the
weaknesses, strengths, threats, and opportunities/chances of an enterprise. It has the
capability to direct about the matters that individuals can do successfully, show the gaps,
information in danger mitigation and to take the benefits of the success.

34
 Environmental and enterprise evaluation presents the statistics to discover key
possibilities and threats in the company’s exterior surroundings. Here with a unique
reference to Wah Nobel Group of Companies sources, ability, or other benefit relative to
opposition and the desires of markets a firm serves or anticipates serving.

4.1.1 STRENGTHS:
Strength is a distinctive competence that gives the firm a competitive
advantage in the marketplace. Some major resources are image, market share or
leadership and buyer/seller relationship. Following are the strengths of Wah
Nobel:
 There is a strong chain of command in the hierarchical structure of the
organization for which reason there is a violation of the prescribed
policies/rules.
 Every new appointee particularly involving management and technical
jobs, is given orientation training, specialized training in relevant
skills and is kept on probation unless he has successfully completed
the prescribed training. On-the-job training is also given to the new
appointees besides retraining of the old workers/employees. The
managers and supervisors assess the coaching needs and
qualifications of each worker and review their assessment on annual
basis. If required further coaching is imparted to the old workers. Wah
Nobel has also many a times sent its workers for foreign trainings in
Sweden, China, and Japan. Each worker is required to attend the
quality system coaching session. This coaching begins with an
orientation to the products developed and manufactured by the WNGC
with emphasis on critical quality characteristics. The course also
contains an overview of the quality system, the company’s quality
policy, the quality elements and how they affect their jobs and their
responsibilities for maintaining and improving the quality system.
 Wah Nobel imported its machine from China and other countries. For
better results and outputs.
 Wah Nobel has prescribed rules for the appointment, guiding, and
recruitment of their workers. Demands for new recruitments are not

35
 accepted unless the concerned departments have given full
justification the objectives and targets assigned to them.
 Vacancies are advertised, qualifications of prospective candidates are
duty spelled out, written tests are taken followed by interview and
appointments are finalized purely on merit basis and after police
verifications/security clearance.
 Wah Nobel is the only manufacturer of ethyl alcohol, urea
formaldehyde in Pakistan.

4.1.2 WEAKNESSES:
The weakness of a firm is anything that inhibits the firm from achieving its
goals and objectives. Similarly, the weakness emerges from inside the
organization from its functional areas.
 The subsidy scheme of supply of food items including cloth and
medical facilitation across the board undertaken by Wah Nobel needs
to be reviewed to include these fringe components within the salary of
its employees. This will eliminate the extra administrative expenditures
currently being incurred on the said provisions.
 Market lag policies in which employees are getting much less pay
according to market pay rates which tend tom de motivate employees.
 Promotion duration after 7 years so, employees must wait a long time
to stay in same position for long time, which is also main reason for
employee’s dissatisfaction, so long promotion duration another
weakness.

 However, the top reason is low compensation and inadequate benefits.

Lack of appreciation and feeling that the employer values the
employees’ contributions also ranks high. Organizational structure is
traditional, bureaucratic i.e., all decisions are made by top level with
little involvement of low-level employees, low level employees are not

36
 encouraged in decision making, which causes frustration in
employees. So, lack of control and frustration among employees is
major weakness. Decision making power is weak, most of decisions
are not taken in time.
 Lack of co-ordination among different departments. So, they cannot
communicate with each other easily.
 Decision making power is not strong, most of the decisions are not
done on time.

4.1.3 OPPORTUNITIES:
WNPL and WNDPL:
 Subsequent make bigger in production of cement manufacturing
facility to meet the requirements of Kala Bagh and Bhasha dam.
 Extension of Sandiak project.
 Anticipated development of Kala Bagh and Bhasha dam.
 Possibilities to seize new clients on countrywide and international
stage.

WNCL:
 Coming into movement new chipboards factory in the country.
 Enlarge demand of urea formaldehyde resins by fertilizer factories for
making free flowing prills of urea.

WNAL:
 Enlarge demand of acetic acid for textiles for export.
 Make bigger demand of ester for making rubber shoes for
Afghanistan.

4.1.4 THREATS:

37
 A threat is an important unfavorable scenario is the firm’s cutting-edge
environment. It is a key impediment to the company’s present or desire future
function. The entrance of a new competitor, shoe market growth, increased
accelerated market energy of the key buyers and suppliers, important technical
changes all of them together current most important threats for a firm. Some
threats of Wah Nobel are as given:

WNPL and WNDPL:

 Manufacturing of substandard low-priced protection fuse by
unauthorized persons.
 Coming into stream a new factory for making detonators, Shona
industry.
 Cutthroat competition by BIAFO industry.
 Smuggled cheap detonators from China.

WNCL:
 Currently the demand for formaldehyde is 50% than its installed
capacity yet new formaldehyde industry coming up.

WNAL:
 New manufacturing facility Midas Pvt. Ltd that will manufacture
acetic acid will begins its manufacturing throughout subsequent year.
 Dumping methods adopted by far eastern exporters of acetic acid, who
are selling their products in Pakistani market below their cost.

38
4.1.5 Weak Areas that need to be Improved:
Wah Nobel Group of Companies head office is a such base of unity in which
the employee and the executives’ level all the people were working in a friendly
way, that everyone who is doing serving over their will have a sort of comfortable
environment and place along with the friendly and collaborated colleagues.
Although the overall set and structure of the company head office is very well
setup, furnished and maintained, but there are some aspects which to my point of
view are not much impress and those areas were bit weak and need some
attention from the higher authorities in them. So that those areas might be
improved and can contribute more to the process and prosperity of the company
more affectively then past. During my internship in the head office, I have
observed the multiple aspects in the environment of the Wah Nobel head office or
which I can say that if they were be bit updated or they may be modified, then will
enhance the better output in the company. Those were as under:
 Inter departments relations need some focus from the desired
department’s head on their employees.
 Low Mutual Corporation among the employees.
 Low motivational level in the employees especially in the finance
department.
 Shortage of a proper informer and guider about the any information about
the company is unavailable.
 Need for the provision of the new printing apparatus and photocopy
apparatus.
 Role of HRM is weak in the company from the employee’s point of view.
 Pays and incentives must be revised.
 No rules are made for the any case of miss conduct or any other such sort
of critical event happened in the company.
 Workload is more on the employees, due to which they are very quickly or
often found in the finance department most of the employees, were
unsatisfied with their tasks. (Low satisfaction level in them).

39
 4.2. FINANCIAL ANALYSIS:
Financial analysis is done to find out the value of investment, financial worth
and position of business and the creditworthiness of the firm. Basically, it’s the
procedure of calculating the ventures, budgets and further the finance related units to
define their appropriate for investment. Financial analysis is done to evaluate
whether the firm is steady, solvent, liquid or lucrative abundant to be financed in.

FINANCIAL STATEMENTS:
They are the formal records of all the business transactions to determine the
financial activities and position of firm in the market. All the relevant financial
information is provided in an understandable and structured form. Its mandatory that
all information provided in the financial statements must be understandable by all the
entities that used it. Balance sheet is also known as the statement of financial position
that explains the company’s shareholder’s equity, liabilities and assets at the specific
time and provide basis to determine its financial worth at that time. The income
statement explains the revenues earned and expenses incurred during the period
specified.

4.2.1. RATIO ANALYSIS:

Ratio analysis is a process of determining and interpreting relationships
between the items of financial statements to provide a meaningful
understanding of the performance and financial position of an enterprise.
Ratio analysis is an accounting tool to present accounting variables in a
simple, concise, intelligible, and understandable form.

OBJECTIVES OF FINANCIAL RATIO ANALYSIS:

The objective of financial ratio analysis is to judge the earning capacity,

financial soundness, and operating efficiency of a business organization. The
use of ratio in accounting and financial management analysis helps the
management to know the profitability, financial position, and operating
efficiency of an enterprise.

40
A- LIQUIDITY RATIO:
i- Current ratio:
Current ratio = Current Assets
Current liabilities

YEARS CALCULATIONS
2016 = 701,974,868 = 2.29 times
306,079,886
2017 = 835,026,801 = 2.40 times
347,571,782
2018 = 1,020,091,547 = 2.21 times
460,536,865
2019 = 1,526,566,644 = 1.68 times
908,501,967
2020 = 1,499,436,468 = 1.93 times
776,747,761

CURRENT RATIO
3.00

2.50

2.00

1.50

1.00

0.50

0.00
2016 2017 2018 2019 2020

INTERPRETATION:
Through current ratio the ability of the company is measures that how the
company performs to pay the short-term debts. So, here we can easily compare
current ratio in different years that seems good because all the ratios of these years

41
are more than 1 which indicates that the organization can pay its current liabilities
easily. There is no chance of lack of liquidity. As the current ratio in 2016 is 2.29
which means that the current assets are 2.29 times of its current liabilities or
company have double of its current assets to meet short term debt. In 2017, the ratio
slightly increases that is 2.40 and in 2018 the ratio slightly decreases that is 2.21
which is comparatively equal to the current ratio of 2016. But in 2019, there is a huge
decrease in ratio that is 1.68 which means that the current assets are 1.68 times of its
current liabilities, in this year the company is still capable to pay its current liability.
In this year there is too much increase in liability, company take loan for financing.
But in 2020, company show a little bit improvement that is 1.93, current assets are
1.93 times of its current liabilities. Overall current ratio of a company shows a
decreasing trend which means that company is losing its ability to pay its short-term
liability.

ii- Quick ratio:

Quick ratio = Cash and bank balances+ Other receivables+ Advances+ Trade debts
Current Liabilities
YEARS CALCULATIONS
2016 = 7,795,339+2,582,666+11,325,545+396,261,226
306,079,886
= 1.36 times
2017 = 4,384,163+2,690,788+43,135,895+423,456,278
347,571,782
= 1.36 times
2018 = 19,063,993+2,679,516+65,290,709+442,532,051
460,536,865
= 1.14 times
2019 = 20,660,594+2,678,133+28,646,464+819,312,359
908,501,967
= 0.95 times
2020 = 24,608,858+2,818,979+32,805,001+845,019,571
776,747,761
= 1.16 times

42
 QUICK RATIO
1.60

1.40

1.20

1.00

0.80

0.60

0.40

0.20

0.00
2016 2017 2018 2019 2020

INTERPRETATION:
Acid test ratio/Quick ratio determines that how much a company have cash or
most liquid assets to meet it short-term liabilities. In the case of WNC, the quick ratio
is 2016 is 1.36 which means that the quick assets are 1.36 times of its current
liabilities. In 2017, the quick ratio is same means the company is maintaining its high
liquid assets so that it can easily pay its current liability. But in 2018, it decreases that
is 1.14 and in 2019 there is a huge decrease in quick ratio that is 0.95. That was the
alarming situation for the organization that they do not have enough ability to pay all
its debt easily. But in the next year 2020, the quick ratio of the company increases that
is 1.16, it means that the company focus on quick asset in this year, so that it should be
enough to meet the short-term obligations which reflect the good financial healthy and
the liquidity of the company.

B- SOLVENCY RATIO:
i- Debt to Equity ratio:
Debt to equity ratio = Total Debt
Total Equity

YEARS CALCULATIONS

43
 2016 = 306,079,886 = 0.54 times
561,763,701
2017 = 353,016,753 = 0.70 times
658,610,780
2018 = 549,325,576 = 0.53 times
778,380,033
2019 = 971,676,322 = 1.09 times
887,645,175
2020 = 823,786,187 = 0.83 times
983,631,806

DEBT TO EQUITY RATIO

1.20

1.00

0.80

0.60

0.40

0.20

0.00
2016 2017 2018 2019 2020

INTERPRETATION:
Total Debt to Equity ratio shows how much is provided by the creditors/dets
and how much from shareholders equity. It demonstrates that how much a company
must pay its debt means if one rupee is provided by equity then how much is provided
by debt in investment. In 2016, the debt-to-equity ratio of WNC is 0.54 it illustrates
that debt is 0.54 time of equity. It means for everyone rupee of company held by the
stockholders the company owns just rupees 0.54 from the creditors. As it decreases in
2017 that is 0.53 due to increase in equity portion. In 2018 and 2019, the ratio to

44
many increases that is 0.70 and 1.09. in 2018 the debt is 0.75 times of equity and in
2019 the debt is 1.09 times of its equity. The ratio increases due to increase in its debt
and that is not a good signal for a company because it finances their huge portion
through debt and is not having equal amount of their capital is less than its liability
and at the end it faces difficulty to pay its huge amount of debt in 2019. In 2020, the
ratio decreases that is 0.83 due to decrease in its debts and increase in its equity. The
overall company is not in a good position.

ii- Debt to Asset ratio:

Asset to debt ratio = Total Debt
Total Asset

YEARS CALCULATIONS
2016 = 306,079,886 = 0.35 times
873,338,638
2017 = 353,016,753 = 0.348 times
1,011,627,533
2018 = 549,325,576 = 0.413 times
1,327,705,608
2019 = 971,676,322 = 0.522 times
1,859,321,497
2020 = 823,786,187 = 0.455 times
1,807,417,993

DEBT TO ASSET RATIO

0.6

0.5

0.4

0.3

0.2

0.1

0
2016 2017 2018 2019 2020

45
INTERPRETATION:
The debt to asset ratio is an indicator of company’s financial leverage and
explain how much the company’s total assets are financing by using debt. In 2016,
the debt to asset ratio of is 0.35, it illustrates that 35% of company finance its assets
through debts. In 2017, the ratio slightly decreases up to 34%. But in the next two
years 2018 and 2019, the ratio increases that is 0.41 and 0.52, which means that in
2018 41% of debt is used to finance the company assets and in 2019 52% of debt is
used in financing, that is not good for company health. In 2020, the ratio decreases
up to 0.45. Overall, it represents that company finance mostly half portion of their
assets through debts, and it is the indication of more financial risk and leverage or
huge amount of fixed interest payments. Thus, the company should focus on their
equity for investment so that it can’t bear any financial risk. Overall, the increase in
debt-to-asset ratio is not a good sign for company.

iii- Interest coverage ratio:

Interest coverage ratio = Earnings before interest and taxes
Interest on long term loan/ debentures

YEARS CALCULATIONS
2016 = 150,532,768 = 10.05 times
14,675,505
2017 = 208,167,815 = 27.24 times
7,641,174
2018 = 271,765,696 = 39.07 times
6,980,403
2019 = 329,880,370 = 6.77 times
48,691,364

46
 2020 = 304,012,051 = 3.94 times
77,191,614

INTEREST COVERAGE RATIO

45

40

35

30

25

20

15

10

0
2016 2017 2018 2019 2020

INTERPRETATION:
The interest coverage ratio measures how well a company can pay its interest
payment on pre-tax basis. Large ratio indicates the higher capability of firm to pay
the interest payment. In 2016, the interest coverage ratio of WNC is 10.05, it
illustrates
that company is 10.05times capable to pay its interest. In 2017 and 2018, the interest
coverage ratio increases, this increase is may be due to decrease in interest on loan,
the company is highly capable to pay off its interest on loan. But in the next year 2019
it too much decreases up to 6.77 this decrease is due to increase in interest on loans,
it means that in this year company take too much loan in this year due to which the
interest increases. In 2020 it more decreases up to 3.94, this decrease is may be
decrease in EBIT through which we pay interest or increase in the rate of interest.
The company is still capable to pay its interest on loans, but it decreases as compared
to previous years. Overall, the company performance is not good, the company
should focus on its equity side and take less loan so that company pay less interest on
loans.

C- PROFITABILITY RATIO:
Based on sales:
i- Gross profit margin:

47
 Gross profit margin = Gross profit *100
Net sales

YEARS CALCULATIONS
2016 = 236,346,412 *100 = 20.0036%
1,181,517,750
2017 = 270,451,830 *100 = 21.62%
1,250,740,289
2018 = 336,226,066 *100 = 20.0024%
1,680,925,403
2019 = 354,874,349 *100 = 15.68%
2,262,829,003
2020 = 325,993,672 *100 = 16.71%
1,950,049,489

GROSS PROFIT RATIO

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
2016 2017 2018 2019 2020

INTERPRETATION:
The gross profit margin is the profitability ratio and explains the percentage
of revenue earned that exceeds from its cost of goods sold. Without the healthy gross
profit margin, a company is unable to pay its operating expenses because it tells us
about the money left over from its sale revenue by paying out its cost of goods sold.
The figure shows that in 2016 the ratio is 20.0036% means that company gain
20% profit on its sales whereas in 2017 there is a slightly increase in the ratio that is
21.62% due to increase in its sales by charging low cost of sales and in 2018 it
slightly decreases up to 20.0024%. But in 2019 there is a huge decrease in ratio up to
15.68% and in 2020 there is slightly increase in ratio up to 16.71%. The gross profit

48
is very low as compared to 2016, 2017 and 2018, it is due to decrease on gross profit
or highly non-productive cost. Overall figure shows that WNC is more efficient in
production and effectively manage to convert revenue in gross profit.

ii- Net profit margin:

Net profit margin= Net profit *100
Net sales

YEARS CALCULATIONS
2016 = 78,469,253 *100 = 6.64%
1,181,517,750
2017 = 131,104,686 *100 = 10.48%
1,250,740,289
2018 = 174,101,914 *100 = 10.35%
1,680,925,403
2019 = 176,492,457 *100 = 7.79%
2,262,829,003
2020 = 130,307,348 *100 = 6.68%
1,950,049,489

49
 NET PROFIT MARGIN
12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
2016 2017 2018 2019 2020

INTERPRETATION:
The net profit margin is also considered as net margin which show how much
revenue is left after paying all its expenses from its sales. This is the profit a company
earned after paying its interest and tax expenses.
The above figure shows that in 2016 the net profit ratio is 6.64% (means every
1-rupee company earned just only 0.0664 praises of its sales). In the next two years
2017 and 2018 the net profit margin increases up to 10.48% and 10.35% means that
in these years our expenses decrease due to which profit increases. Thus, the
management is working on the improvement on growth of net income. But in last two
years 2019 and 2020 the ratio decreases up to 7.79% and 6.68% it illustrates that
company faces some issues due to which direct and indirect expenditures increases.
Due to which net profit for the last two years decreases. Overall, profitability of this
company is good, and company needs to lower their expenses and cost pf sales to
increase its profitability for future.

iii- 0perating profit margin:

Operating profit margin = operating profit *100
Net sales

50
 YEARS CALCULATIONS
2016 = 150,532,768 *100 = 12.7406%
1,181,517,750
2017 = 208,167,815 *100 = 16.6435%
1,250,740,289
2018 = 272,765,695 *100 = 16.2271%
1,680,925,403
2019 = 329,880,370 *100 = 14.5782%
2,262,829,003
2020 = 304,012,051 *100 = 15.5899%
1,950,049,489

OPERATION PROFIT MARGIN

18.00%

16.00%

14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
2016 2017 2018 2019 2020

INTERPRETATION:
The operating profit margin indicates that how much company has profit after
paying their variable cost of production. The above figure shows that in 2016 the
ratio is 12.74% means that after paying our variable expense we have 12% operating
profit on our sales. In 2017, it increases up to 16.64% and in 2018 it is 16.22% which
means that there is an increase in operating profit ratio over time means that the
profitability is improving. But in the next year (2019) it decreases up to 14.57%, it
indicates that in this year company is not efficient to convert the revenue into
operating profit, either the revenues are higher, but the costs are very high of
expenses. In 2020 it slightly increases up to 15.58%, it increases means the company
is now improving it operating profit. Overall, the company is in good position in to
converting their sales into earnings and its earning position is good.

51
PROFITABILITY RATIO:
Based on investment:
i- RETURN ON ASSET RATIO:
Return on asset = Net income *100
Average total assets

YEARS CALCULATIONS
2016 = 120,084,799 *100 = 13.80%
(873,338,638+867,020,112)/2
2017 = 131,104,686 *100 = 13.91%
(1,011,627,533+873,338,638)/2
2018 = 174,101,914 *100 = 14.884%
(1,327,705,608+1,011,627,533)/2
2019 = 176,492,457 *100 = 11.075%
(1,859,321,497+1,327,705,608)/2
2020 = 130,307,348 *100 = 7.10%
(1,807,417,993+1,859,321,497)/2

RETURN ON ASSETS RATIO

16.00%

14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
2016 2017 2018 2019 2020

INTERPRETATION:
The return on asset measures how efficiently and effectively a company is
utilizing its assets to earn profits during a specific period. It shows how efficiently a

52
company converts the money that is used to purchase assets into net income or profit.
It explains how much a company is squeezing profits from its assets.
In 2016 the return on asset is 13.80% which means that the company is
proper utilizing its assets and earn 13% profit from its assets. In 2017 and 2018, it
increases up to 13.91% and 14.88% means with the passage of time the ratio
increases which means that the company is utilizing its economic resources properly.
But in 2019 and 2020, it too much decreases up to 11.07% and 7.10% which means
that the company does not perform well in these years. The whole scenario shows that
currently company performance is too much bad, it produced less production, and it
is un-efficiently utilizing its economic resources with the passage of time.

ii- RETURN ON CAPITAL EMPLOYED RATIO:

Return on capital employed ratio = EBIT *100
Total capital employed

YEARS CALCULATIONS
2016 = 150,532,768 *100 = 26.79%
561,763,701+ 0
2017 = 208,167,815 *100 = 31.60%
658,610,780+ 0
2018 = 272,765,695 *100 = 31.69%
778,380,033+82,285,714
2019 = 329,880,370 *100 = 35.00%
887,645,175+54,857,143
2020 = 304,012,051 *100 = 29.69%
983,631,806+40,036,569

53
 RETURN ON CAPITAL EMPLOYED
40.00%

35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
2016 2017 2018 2019 2020

INTERPRETATION:
The return on capital employed is a profitability ratio that calculates the
profits of an investment as a percentage of original cost. In 2016 the ratio is 26.79%,
in 2017, 2018, and 2019, the ratio increases up to 31.60%, 31.69% and 35%. The
figure shows the increasing trend in the ratio which means that the company is
generating profit for the organization on yearly basics. But in 2020, there is a huge
decrease up to 29.69%, which means that in 2020 company is less capable to
generate profit as compared to previous years. Thus, facing some issues due to which
it profits decreases.

iii- RETURN ON EQUITY RATIO:

Return on equity = Net income *100
Average equity fund

YEARS CALCULATIONS
2016 = 120,084,799 *100 = 22.78%
(561,763,701+492,460,086)/2
2017 = 131,104,686 *100 = 21.48%
(658,610,780+561,763,701)/2
2018 = 174,101,914 *100 = 24.23%
(778,380,033+658,610,780)/2
2019 = 176,492,457 *100 = 21.18%
(887,645,175+778,380,033)/2
2020 = 130,307,348 *100 = 13.92%
(983,631,806+887,645,175)/2

54
 RETURN ON EQUITY RATIO
30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
2016 2017 2018 2019 2020

INTERPRETATION:
The return on equity measures the ability of firm to generate profit from its
shareholders equity. In 2016 the ratio is 22.78% which means that company is
generating 22% profit from its shareholders equity. The return of equity ratio in 2017
slightly decrease up to 21.48% and in the next year 2018 it increases up to 24.23%
but in 2019 it decreases up to 21.18% and in 2020 it too much decreases up to
13.917%. This decrease is basically due to decrease in the profit that the
shareholders earned. Thus, there is a decrease trend shown.

D- TURNOVER/ ACTIVITY RATIO:

i- TOTAL ASSETS TURNOVER RATIO:
Total assets turnover ratio= Net sales
Average total assets

YEARS CALCULATIONS
2016 = 1,181,517,750 = 2.47 times
(873,338,638+867,020,112)/2
2017 = 1,250,740,289 = 2.27 times
(1,011,627,533+873,338,638)/2
2018 = 1,680,925,403 = 1.43 times
(1,327,705,608+1,011,627,533)/2
2019 = 2,262,829,003 = 1.42 times
(1,859,321,497+1,327,705,608)/2
2020 = 1,950,049,489 = 1.06 times

55
 (1,807,417,993+1,859,321,497)/2

TOTAL ASSETS TURNOVER RATIO

3

2.5

1.5

0.5

0
2016 2017 2018 2019 2020

INTERPRETATION:
The total asset turnover ratio measures the ability of its assets to generate
each dollar sales. A high ratio suggests the efficient utilization of assets to increase
sales while the low ratio is the indication that company is not efficient in using its
total assets to generate sales.
In 2016, the assets turnover ratio is 2.47 which means that on every 1-rupee
firm generated 2.47 times a sale of its assets that the company owns. In 2017 the ratio
little decreases up to 2.27. But in 2018, 2019, and 2020 the ratio to much decreases
up to 1.43, 1.42 and 1.06, this decrease may be occur due to increase in assets.
Overall, the above figure shows that with the passage of time the asset turnover ratio
decreases yearly. It means that the company is not properly utilizing its total assets to
generate the revenue for the organization. Its working efficiency is too much slow.

ii- WORKING CAPITAL TURNOVER RATIO:

Working capital turnover ratio= Net sales
Net working capital

56
 YEARS CALCULATIONS
2016 = 1,181,517,750 = 2.98 times
701,974,868-306,079,886
2017 = 1,250,740,289 = 2.56 times
835,026,801-347,571,782
2018 = 1,680,925,403 = 3.00 times
1,020,091,547-460,536,865
2019 = 2,262,829,003 = 3.66 times
1,526,566,644-908,501,967
2020 = 1,950,049,489 = 2.69 times
1,499,436,468-778,747,761

WORKING CAPITAL TURNOVER

4

3.5

2.5

1.5

0.5

0
2016 2017 2018 2019 2020

INTERPRETATION:
The working capital ratio measures how efficiently a firm is utilizing its assets
to produce sales. Normally a higher ratio is an indication of efficiently in utilizing the
working capital for each additional sale. In 2016, the ratio is 2.98 which illustrate
that working capital is 2.98 times of its sales. The ratio little decreases in 2017 up to
2.56 and increase in 2018 and 2019 up to 3.0 and 3.66 but in 2020 it decreases up to
2.69. So, the whole figure shows ups and downs in working capital turnover ratio but

57
overall, the company performance is good because it properly converts its working
capital into sales in all years
.
iii- INVENTORY/ STOCK TURNOVER RATIO:
Inventory turnover ratio= Cost of Goods sold
Average inventories/ stock

YEARS CALCULATIONS
2016 = 945,171,338 .
(39,734,694,112,713,920+46,845,169+105,116,514)/2
= 6.20 times
2017 = 980,288,459 .
(44,516,967+187,227,753+39,734,694,112,713,920)/2
= 5.10 times
2018 = 1,344,699,337 .
(49,875,402+281,257,806+44,516,967+187,227,753)/2
= 4.77 times
2019 = 1,907,954,654 .
(50771,164+377,656,323+49,875,402+281,257,806)/2
= 5.02 times
2020 = 1,624,055,817 .
(52,368,690+306,618,215+50771,164+377,656,323)/2
= 4.12 times

INVENTORY TURNOVER RATIO

7.00

6.00

5.00

4.00

3.00

2.00

1.00

0.00
2016 2017 2018 2019 2020

58
 INTERPRETATION:
This ratio depicts that how efficiently or effectively a firm is managing its
inventory or how quick they convert into sales. The company ratio is declining from
2016 to 2018, In 2016 the ratio is 6.20, in 2017 is 5.10 and in 2018 is 4.77 and then
in 2019 it increases up to 5.02 but in 2020 it again decreases up to 4.12. The overall
figure shows that there is a decrease trend is shown which means that there is
decrease in sales of inventory or may be increased in the value of cost of good. Also,
there contribution is not more on selling now. Thus, the company must focus on the
amount of cash available so that they can pay their current liabilities maximum.

4.2.2. DUPONT ANALYSIS:

DuPont analysis is the process in which the return on equity divides into three
drivers. This analysis support for analysing the main factors that significantly affects
the ROE results.

ROE = Net Income * Net Sales * Total Assets

Net Sales Total Assets Average Total Equity

Years 2016 2017 2018 2019 2020

Net Income 120,084,799 131,104,686 174,101,914 175,737,349 131,986,631

Net Sales 1,181,517,75 1.250,740,28 1,680,925,40 2,262,829,00 1,950,049,48

0 9 3 3 9

Total Assets 873,338,638 1.011,627,53 1,327,705,60 1,859,321,49 1,807,417,99

3 8 2 3

Average Total 527,111,893. 610,187,240. 718,495,406. 833,012,604 935,638,490.

Equity 5 5 5 5

ROE 0.227 0.214 0.243 0.211 0.141

Percentage 22.7% 21.4% 24.3% 21.1% 14.1%

59
 DUPONT ANALYSIS
30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
2016 2017 2018 2019 2020

4.2.3. VE

It’s a method of evaluating the financial information and it displays each item of
financial statement as a percentage of some base figure rather than some absolute figure.

COMMON SIZE ANALYSIA OF BALANCE SHEET

2016 2017 2018 2019 2020
% % % % %
ASSETS
Property, plant, and 19.6216865 16.8680868 23.1688455 17.89657 16.4700254
equipment 4 6 4 3
Deferred tax assets 0 0.58900344 0 0 0.56983619
3 9
Non-current assets 19.6216865 17.4570903 23.1688455 17.89657 17.0398616
4 1 4 3
Stores, spares, and loose 4.54974648 4.40052939 3.75651060 2.730628 2.89743104
tools 7 9 7 6 3
Stock in trade 12.9060956 18.5075778 21.1837476 20.31151 16.9644330
5 3 9 3 3
Trade Debts 45.3731472 41.8589119 33.3305853 44.06512 46.7528581
3 2 6 6 8
Advances, deposits, and other 1.29681025 4.26400958 4.91755917 1.540694 1.81502016
receivables 3 8 9 5 3
Short-term investment 0.29572331 0.26598603 0.20181552 0.144038 0.15596718
8 9 2 2 7
Advance tax-net 15.0455552 12.8125177 12.0050762 12.20023 13.0128810
2 3 6 8
Cash and bank balances 0.89259064 0.43337719 1.43585994 1.11119 1.36154769
7 2 4 4
Current Assets 80.3783134 82.5429096 76.8311545 82.10342 82.9601383
6 9 6 7
TOTAL ASSETS 100 100 100 100 100

60
EQUITY
Share capital 10.3052809 8.89655501 6.77861112 4.840475 4.97947903
2 3 1 4 3
Capital reserves 0.10813720 0.09335491 0.07113052 0.050792 0.05225155
6 3 7 9 5
Revenue reserves 53.9102790 56.1141682 51.7762088 42.84900 49.3902022
7 6 9 6 4
TOTAL EQUITY 64.3236972 65.1040781 58.6259505 47.74027 54.4219328
8 4 4 2
LIABILITIES
Long-term financing 0 0 6.19758728 2.950385 2.21512506
9 5
Deferred liabilities 0.62920049 0.53823871 0.48979201 0.447325 0.38739555
1 2 1 1 7
Non-current liabilities 0.62920049 0.53823871 6.6873793 3.397710 2.60252062
1 2 1 2
Trade and other payables 17.2237999 11.8606015 16.7752542 14.16894 8.67634319
6 6 9 2 3
Due to parent company 0.20293388 0.45736527 0.09707799 0.052014 0.00409119
2 6 6 5
Unclaimed dividends 0.26484675 0.39933857 0.35449929 0.321571 0.35034480
8 3 8 3
Current portion of long-term 0 0 1.03293124 1.615995 1.88329285
financing 9
Loan from parent company 0 21.5463131 16.2967209 16.58264 17.0600624
3 5 2 9
Short-term borrowings 17.3555217 0.09406456 0.13018639 16.12085 15.0014120
2 1 2
Current liabilities 35.0471023 34.3576831 34.6866701 48.86201 42.9755465
1 1 6 6 5
TOTAL LIABILITIES 35.6763028 34.8959218 41.3740494 52.25972 45.5780671
2 6 6 8
TOTAL EQUITY AND 100 100 100 100 100
LIABILITIES

INTERPRETATION:
In the vertical analysis of the balance sheet, on assets side in 2016, firm’s
total assets are divided into 19.63% of non-current assets and 80.37% of current
assets. In the next year the current assets increase up to 82.54%, this increase is
caused by increasing in the value of stock in trades, Advances, deposits and other
receivables, and the non-current assets decreases up to 17.45%and this decrease is
due to decrease in property, plant, and equipment. But in 2018, the current asset
decreases up to 76.83% and non-current assets increases up to 23.17% means that in
this year company buy some plants and equipment’s for the good/effective production

61
 of material. In 2019 and 2020, the current ratio increases up to 82.10% and 82.96%
and this increase is caused by increase in trade debts. Overall, the current assets are
too much high then its non-current assets, which clearly indicates that a company
invested greater percentage of investment on current assets, and they have too much
liquid assets in every year to pay short-term liabilities.
On the other side of balance sheet in 2016, the portion of the liability is
35.67% and equity is 64.32% it means that the investment is more based on equity
portion than on liability. Similarly, there is slightly increase occur in equity in 2017
as 65.11% and liability decreases (34.89%). But in 2018, 2019, and 2020 the equity
portion decreases as compared to 2016 and liability increases. This increase in
liability is due to increase in long-term financing, current portion of long-term
financing and loan from apparent company. Overall, the whole figure shows the
higher amount of equity than liability which is the good signal for the company
position because the company increase its assets through equity financing.

COMMON SIZE ANALYSIA OF INCOME STATEMENT

2016 2017 2018 2019 2020
% % % % %
Revenue-net 100 100 100 100 100
Cost of sales 80 78.37 80 84.32 83.28
Gross profit 20 21.63 20 15.68 16.72
Administrative and general 3 2.51 2.16 0.65 0.62
expenses
Selling and distributive 4.37 2.46 1.61 0.45 0.50
expenses
Operating profit 12.63 16.64 16.22 14.57 15.58
Finance cost 1.26 0.61 0.41 2.15 3.95
Other expenses 0.84 1.16 1.12 0.83 0.70

62
Allowance for expected 0.68 0.11 0 0.76 1.82
credit losses
Other income 0.21 0.36 0.15 0.20 0.27
Profit before taxation 10.16 14.11 14.84 11.03 9.38
Income tax expense 3.52 4.63 4.48 3.23 2.69
Profit for the year 6.64 9.37 10.35 7.79 6.68

INTERPRETATION:
The vertical analysis of income statement in 2016, the gross profit is 20%
which means that after deducting cost of sales the company earn 20% profit on its
sales and after giving all expenses with interest and taxes company earn 6.64% profit
on its sales. In 2017 the gross profit slightly increases up to 21.63% because due to
decrease in cost of good and profit for the share increases, in 2018 the gross profit
slightly decreases up to 80% but the net profit increases this increase due to decrease
in operating expenses and finance cost. So, in these two years the profit of the
company increases as compared to its sale which means that the shareholders wealth
increases. So, this increase may be attractive for other investors to invest in the
projects of WNCL. But in 2019 and 2020, the gross profit as compared to sales too
many decreases and the net profit of 2019 and 2020 also decreases up to 7.79% and
6.68%. this decrease in gross profit is due to increase in the cost of sales/goods and
profit decrease due to too much increase in finance cost means in these two years
company take too much loan due to which they pay more interest. This decrease is
basically caused by COVID-19 as we all know that in these two years our country
faces very hard situation due to COVID-19. Overall, the company position is good
because in this situation the profit is slightly decrease, but company need to focus on
its profit to increase it in the coming years.
4.2.4. HORIZENTAL ANALYSIS/ INDEX NO TREND ANALYSIS:
In horizontal analysis, a year is selected, and each year performance is
analysed in percentage against this base year. Consider 2016 as a base year.

INDEX NO TREND ANALYSIS OF BALANCE SHEET

2016 2017 2018 2019 2020
ASSETS
Property, plant, and 100 99.5789314 179.5093916 194.1804 173.7136169
equipment 2
Deferred tax assets 100 5,958,521 100 100 10,299,322
Non-current assets 100 103.056049 179.5093916 194.1804 179.7238267

63
 7
Stores, spares, and loose tools 100 112.035509 125.5210421 127.7754 131.7958809
8
Stock in trade 100 166.108811 249.5324499 335.05739 272.0322521
6
Trade Debts 100 106.862910 111.676849 206.76067 213.248109
2
Advances, deposits, and other 100 380.872576 576.4906589 252.93674 289.6549438
receivables 1
Short-term investment 100 104.186449 103.750001 103.69645 109.1499636
2
Advance tax-net 100 98.6425354 121.3041943 172.63618 178.995111
9
Cash and bank balances 100 56.2408254 244.5563047 265.03779 315.6868226
5
Current Assets 100 118.953945 145.3173886 217.46742 213.6025856
4
TOTAL ASSETS 100 115.834510 152.0264363 212.89811 206.9550017
1
EQUITY
Share capital 100 100 100 100 100
Capital reserves 100 100 100 100 100
Revenue reserves 100 120.569904 146.0083802 169.21583 189.6029767
3
TOTAL EQUITY 100 117.239825 138.5600443 158.01042 175.0970745
LIABILITIES
Long-term financing 100 100 82,285,714 54,857,143 40,036,569
Deferred liabilities 100 99.0886344 118.3427779 151.35823 127.4211468
8
Non-current liabilities 100 99.0886344 1615.794103 1149.6591 856.0143664
8
Trade and other payables 100 79.7656135 148.0673332 175.13796 104.2518274
6
Due to parent company 100 261.063759 72.72527225 54.568583 4.172262032
Unclaimed dividends 100 174.656432 203.4884862 258.49675 273.7643909
4
Current portion of long-term 100 100 13,714,286 30,046,542 34,038,974
financing
Loan from parent company 100 217,968,436 216,372,478 308,324,631 308,346,639
Short-term borrowings 100 0.62780725 1.140373262 197.75254 178.8835449
Current liabilities 100 113.555904 150.4629628 296.81858 253.7728863
2
TOTAL LIABILITIES 100 113.300754 176.3060856 311.85959 264.3942401
TOTAL EQUITY AND 100 115.834510 152.0264363 212.89811 206.9550017
LIABILITIES 1

64
 INTERPRETATION:
According to the horizontal analysis of balance sheet, there is an increase
trend in the total assets is shown. This increase in assets is caused by increase in
property, plant, and equipment’s and too much increase in current assets. The
current assets increase due too much increase in cash and bank balances, advances,
deposits and other receivables and stock in trades. The increase in every item has a
positive impact on total assets, as increase in inventory have a positive impact on
assets but it is not a good signal for the company because the increase in the value of
inventory in warehouse means less sales of material which is not good for company
health
On the other hand of balance sheet, the equity portion slightly increases, this
increase in equity is caused by increase in revenue reserve means that company did
not pay retained earnings due to which it increases. But on liability portion, liability
too much increases. In non-current liability the company take too much loan for
investment and current liability increase due to increase in short-term borrowings,
current portion of short-term borrowing, unclaimed dividend, and loan from apparent
companies. Thus, the overall above all figures show an increasing trend in both
assets and equity side but the increasing trend in liability is not good for the company
financial position.

INDEX NO TREND ANALYSIS OF INCOME STATEMENT

2016 2017 2018 2019 2020
Revenue-net 100 105.8587811 142.2683157 191.51883 165.046144
2
Cost of sales 100 103.7154238 142.2704311 201.86336 171.826604
5
Gross profit 100 114.4302669 142.2598563 150.15009 137.930451
Administrative and 100 92.35346472 106.7186763 43.184971 35.5369519
general expenses 5
Selling and 100 59.53919901 52.33949604 19.853117 19.0717956
distributive expenses 5
Operating profit 100 138.2873761 181.2002122 219.1419 201.957391
1
Finance cost 100 51.02448298 46.61213762 325.14005 515.452493
9
Other expenses 100 146.3692883 190.275819 190.38635 138.430377
7
Allowance for 100 17.36631709 0 213.31832 439.825261
expected credit losses 6

65
Other income 100 176.2877972 102.3642834 179.62602 211.719298
4
Profit before taxation 100 157.4384498 207.7335375 207.85721 152.347004
4
Income tax expense 100 139.2627817 181.0729482 175.68548 126.486992
Profit for the year 100 167.0777695 221.872767 224.91924 166.061654
4

INTERPRETATION:
In the horizontal analysis of the income statement, the sales increases and
cost of cost of goods also increases. The gross profit increase with time but the
increase in gross profit is not same according to the increase in sales because the
value of cost of sales too much increases as compare to sales revenue, there is a
consistent increase in CGS. Similarly, operating profit also increases yearly. It is not
possible that when we subtract operating expenses from gross profit it increases,
according to the increase in sales the operating profit also increases but it decreases
it means that the company control their expense so that operating profit increase and
gives positive impact on the income statement. The profit before taxation also
increases yearly but in 2020 it decreases as compared to 2018 and 2019. This
decrease may occur due to too much increase in finance cost and allowance for
expected credit losses, allowances increase due to poorly performance in managing
trade debts and finance cost increase due to too much borrowing of loan. Hence it
also has a negative impact on net income in 2020, thus it decreases as compared to
2018 and 2019. Overall, the net profit show increase trend when we compare it with
2016. This is the good signal for the company that after paying its direct and indirect
expenses, taxes and interest, the net profit of the company does not decrease due to
which shareholders wealth increases.

66
 4.2.5. COMPETITOR (DYNEA PAKISTAN LTD) INTERNAL
ANALYSIS:

A. CURRENT RATIO:

Years 2017 2018 2019 2020

Current Assets 1,016,021,04 1,726,127,48 1,850,750,21 1,962,084
8 9 6
Current Liabilities 237,227,299 631,603,720 722,974,910 688,186
Current ratio 4.28 times 2.73 times 2.55 times 2.85 times

CURRENT RATIO
4.5

3.5

2.5

1.5

0.5

0
2017 2018 2019 2020

INTERPRETATION:
For Dynea Pakistan limited, the current ratio in 2017 is 4.28 which means that
the current assets are 4.28 times of its current liability or company have 4 times of its
current assets to meet short-term debt. In 2018, the ratio too much decreases up to

67
 2.73 and in 2019 the ratio again decreases up to 2.55. But in 2020 the company show
a little bit improvement that is 2.85, current assets are 2.85 times of its current
liabilities. Overall, the current ratio of a company shows a decreasing trend which
means that company is losing its ability to pay its current liability.

B. DEBT-TO-ASSET RATIO:

Years 2017 2018 2019 2020

Total Debt 237,227,299 1,000,644,80 981,944,527 863,108
0
Total Assets 1,292,327,62 2,275,142,08 2,360,672,29 2,449,608
5 7 7
Debt-to-asset ratio 0.18 times 0.43 times 0.41 times 0.35 times
DEBT-TO-ASSET RATIO
0.5

0.45

0.4

0.35

0.3

0.25

0.2

0.15

0.1

0.05

0
2017 2018 2019 2020

INTERPRETATION:
The debt to asset ratio of DPL in 2017 is 0.18, it illustrates that company
finance 18% of its assets through liabilities. In 2018 the ratio too much increases
up to 0.43 which means that company take too much loan for financing which is
not a good signal for company health. In 2019 the ratio slightly decreases up to
0.41 and in 2020 the ratio decreases to 0.35 means company use 35% of its
liability to financing in assets. Overall, the ratio is too much high in the last three
years as compared to 2016 which is not a good signal for company.

68
 C. NET PROFIT RATIO:

Years 2017 2018 2019 2020

Net Profit 176,977,729 294,886,613 226,901,474 253,349
Net Sales 2,497,540,20 3,858,317,86 5,140,029,77 4,492,455
6 8 9
Net Profit Ratio 7.08% 7.64% 4.41% 5.63%

NET PROFIT RATIO

9.00%

8.00%

7.00%

6.00%

5.00%

4.00%

3.00%

2.00%

1.00%

0.00%
2017 2018 2019 2020

INTERPRETATION:
The net profit margin of DPL for 2017 is 7.08% means that for every 1-rupee
company earned just only 0.0708 praises of its sales. In 2018, the ratio slightly
increases up to 7.64%. But in 2019 the ratio to much decreases up to 4.41% it
illustrate that company faces some issues due to which direct and indirect
expenditures increases, so the ratio decreases. In 2020 the ratio slightly increases up
to 5.63%. Overall, profitability of company is good.

69
 D. RETURN ON ASSET RATIO:

Years 2017 2018 2019 2020

Net Income 176,977,729 294,886,613 226,901,474 253,349
Average T. Asset 1,241,166,28 1,783,734,85 2,317,907,19 2,353,276
9 6 2
Return on Asset 14.25% 16.53% 9.76% 10.76%
ratio

RETURN ON ASSETS RATIO

18.00%

16.00%

14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
2017 2018 2019 2020

INTERPRETATION:
The return on asset ratio for DPL for 2017 is 14.25% which means that after
utilizing all assets company earn 14% profit from its assets. In 2018 the ratio
increases up to 16.53%. But in 2019 the ratio too much decreases up to 9.76%. In
2020 the ratio slightly increases up to 10.76%, currently company make improvement
in the ratio. Overall, it is un-efficient of utilizing its economic resources with time.

70
 E. RETURN ON EQUITY RATIO:

Years 2017 2018 2019 2020

Net Income 176,977,729 294,886,613 226,901,474 253,349
Average T. Equity 990,202,128 1,164,798,80 1,326,612,52 1,481,812
7 9
Return on Equity 17.87% 25.31% 17.10% 17.09%
ratio

RETURN ON EQUITY RATIO

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
2017 2018 2019 2020

INTERPRETATION:
In 2017, the return on equity ratio of DPL is 17.87%, which means that the
company is generating 18%profit from its shareholders equity. The return on equity
ratio for 2018 is 25.31% there is a huge increase arises, this increase is due to too
much increase in net income for this year. But in 2019 the ratio too much decreases
up to 17.10% and in 2020 the ratio is 17.09%, this decrease is due to too much

71
 decrease in net income and increase in average equity. Overall, the decrease trend is
shown.

F. TOTAL ASSETS TURNOVER RATIO:

Years 2017 2018 2019 2020

Net Sales 2,497,540,20 3,858,317,86 5,140,029,77 4,492,455
6 8 9
Average T. Asset 1,241,166,28 1,783,734,85 2,317,907,19 2,353,276
9 6 2
Total Asset 2.01 times 2.16 times 2.21 times 1.90 times
turnover ratio

TOTAL ASSETS TURNOVER RATIO

2.3

2.2

2.1

1.9

1.8

1.7
2017 2018 2019 2020

INTERPRETATION:
In 2017, the total assets turnover ratio of DPL is 2.10 which means that on every
1-rupee firm generate 2.10 times a sale of its assets that the company owns. In 2018
and 2019 the ratio increases up to 2.16 and 2.21. But in 2020 the ratio too much

72
 decreases up to 1.90, it means that in this year company is not utilizing its total assets
to generate the revenue for the organization, its working efficiency is slow in this year
as compare to previous years.

4.2.6. EXTERNAL ANALYSIS:

a. CURRENT RATIO:

Years 2017 2018 2019 2020

Company ratio 2.40 times 2.21 times 1.68 times 1.93 times
Competitor ratio 4.28 times 2.73 times 2.55 times 2.85 times
Performance Analysis Below Below Below Below

Current Ratio
4.5

3.5

2.5

1.5

0.5

0
2017 2018 2019 2020

Company ratio Competitor ratio

INTERPRETATION:
As compare to the competitor, the current ratio of WNCL in 2017 is 2.40 and the
current ratio of DPL is 4.28, so above figure shows that company have less ability to
pay its current liabilities through current assets in 2017. In 2018, the ratio of both
companies decreases, WNCL is 2.73 and DPL is 2.73, the ratio is again below the

73
competitor. In 2019 and 2020 the ratio is again decreases of both companies.
Overall, as compare to the competitor, the company current ratio are too low that is
the clear indication that WNCL performance is bad and it has not too much ability to
pay its current liabilities as compare to competitor.

b. DEBT-TO-ASSET RATIO:

Years 2017 2018 2019 2020

Company ratio 0.34 times 0.41 times 0.52 times 0.45 times
Competitor ratio 0.18 times 0.43 times 0.41 times 0.35 times
Performance Analysis Above Below Above Above
Debt-to-Asset ratio
0.6

0.5

0.4

0.3

0.2

0.1

0
2017 2018 2019 2020

Company ratio Competitor ratio

INTERPRETATION:
In 2017, the debt-to-asset ratio of WNCL is 0.34 and the ratio of competitor is
0.18 it illustrates that company finance 34% of its assets through debt which is not a
good signal because competitor invest 18% of its debt in assets. In 2018 the WNCL
ratio increases up to 0.41 but competitor ratio too much increases up to 0.43. In 2019
the ratio of WNCL increases up to o.52 but competitor ratio decreases up to 0.41. In
2020 both companies’ ratio decreases but competitor ratio is still less then WNCL.
Overall, the WNCL ratio is above than competitor which is not a goo signal. Thus,
company needs to focus on equity portion for financing, so that it has less financial
risk and leverage in future due to which it pays less amount of fixed interest.

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 c. NET PROFIT RATIO:

Years 2017 2018 2019 2020

Company ratio 10.48% 10.35% 7.79% 6.68%
Competitor ratio 7.08% 7.64% 4.41% 5.63%
Performance Analysis Above Above Above Above

Net Profit Ratio

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
2017 2018 2019 2020

Company ratio Competitor ratio

INTERPRETATION:
In 2017, the net profit margin of WNCL is 10.48% and DPL is 7.08%, it
illustrates that company 10% profit on its sales for the year which is greater than the
competitor profit (7%) for the year. In 2018, the ratio of WNCL slightly decreases up
to 10.35% and competitor ratio slightly increase as 7.64%. In 2019 the ratio of both
companies decreases but the ratio of competitor is still less than the company ratio.
In 2020, the company ratio decreases whereas competitor ratio increases. Overall, as
compare to the competitor, the company net profit ratios are high which is the clear
indication that WNCL is efficiently and effective perform for converting its sales to
actual profit as compare DPL.

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 d. RETURN ON ASSET RATIO:

Years 2017 2018 2019 2020

Company ratio 13.91% 14.88% 11.07% 7.10%
Competitor ratio 14.25% 16.53% 9.76% 10.76%
Performance Analysis Below Below Above Below

Return on Asset Ratio

18.00%

16.00%

14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
2017 2018 2019 2020

Company ratio Competitor ratio

INTERPRETATION:
In 2017, the return on asset ratio of WNCL is 13.91% which is less then
competitor ratio that is 14.25% that means that company is not proper utilizing its
assets to earn profit for this year. In 2018, the ratio of WNCL is 14.88% which is
again less than competitor ratio that is 16.53%. In 2019 the ratio of WNCL is 11.07%
which is greater than competitor ratio because in this year there is too much decrease
occurs that is 9.76%. In 2020, the ratio of WNCL is again less than DPL. Thus,
company show decreasing trend whereas competitors ration decreases increase
yearly. Overall, the company below return on assets ratio than competitor shows that
the company is less efficient in using its assets in an effective manner to generate its
income.

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 e. RETURN ON EQUITY RATIO:

Years 2017 2018 2019 2020

Company ratio 21.48% 24.23% 21.18% 13.92%
Competitor ratio 17.87% 25.31% 17.10% 17.09%
Performance Analysis Above Below Above Below

Return on Equity Ratio

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
2017 2018 2019 2020

Company ratio Competitor ratio

INTERPRETATION:
In 2017, the return on equity ratio of WNCL is 21.48% which is greater than
competitor ratio that is 17.87%, it illustrates that the firm is more efficiently using its
equity to generate profit than competitor. In 2018, the ratio of WNCL is 24.23%
which is less than competitor ratio that is 25.31%. In 2019 the ratio decreases up to
21.18% but it is greater than competitor ratio that is 17.10%. In 2020 the company
the company ratio too much decreases up to 13.92% and competitor ratio is still
same in this year, thus it is greater than then company ratio. There is up and down in
the ratio of both companies. Overall comparing both companies in last year 2020, the
competitor is more efficiently using its equity portion to generate its income than
WNCL.

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 f. TOTAL ASSETS TURNOVER RATIO:

Years 2017 2018 2019 2020

Company ratio 2.27 times 1.43 times 1.42 times 1.06 times
Competitor ratio 2.01 times 2.16 times 2.21 times 1.90 times
Performance Analysis Above Below Below Below

Total Asset Turnover Ratio

2.5

1.5

0.5

0
2017 2018 2019 2020

Company ratio Competitor ratio

INTERPRETATION:
In 2017, the total assets turnover ratio of the firm is 2.27 which is greater than the
competitor ratio that is 2.01, it illustrates that in 2017 company is highly efficient in
utilizing of assets to generate sales than DPL. But in 2018 the WNCL ratio too much
decreases that is 1.43 which is less than the competitor ratio that is 2.16. Again, the
ratio of WNL is less than DPL in 2019. In 2010 the ratio of WNCL decreases that is
1.06 which is still less than the ratio of DPL in 2020 is 1.90. Thus, the overall figure
shows that the company is not efficient in utilizing of assets in effective way to
generate the sales then PDPL in last three years.

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 CHAPTER # 5

CRITICAL ANALYSIS

79
4.1. Learning through observations:
The maximum data of the report extract from the secondary resources because the
institutes and the industrial sectors have some polices due to which they are not allowed to
share their company information with someone. At the beginning of this writing journey, I
face the challenges because I selected the Wah Nobel Group of Companies for this report
and the extraction of data from different resources was quiet challenging for me. Meanwhile,
the company share the limited data on the net that was quiet challenges but to overcome this
problem I consult with my internship supervisor that guide me that how to deals with the
entire report data and how to link the material and the theoretical concepts with the financial
data.
At that time, I was start taking the interest while successful accomplishment of this task and
concern with reliable resources that are authentic, and their data was matched with the
annual report of WNGC. The entire journey of doing this report was interesting because for
the very first time I keenly observe the company its departments and each and every aspect
that how companies practically involves in their operational activities to boost their dales, in
marketing for advertisement purpose and handle their production processes in an effective
and smooth manner while overcoming the upcoming challenges and hurdles and availing the
current opportunities. In the very beginning of the report the skimming the data was difficult
but when I went through and read it several time, I become fluent to extract data quickly.
Moreover, in observation I am the quick observer and deeply analyze and apply the financial
data and easily interpret it. From my surrounding I learn from my colleagues that work
under the supervision of our internship supervisor and through mutual collaboration and
sharing the effective knowledge with colleagues we learn more and successfully accomplish
this task.

4.2. Evaluation your gains in understanding and completing tasks:

Through this report I understand that how companies practically involve maintaining
and managing its inventory, how companies set the strategies and the other policies for
the management process, cash management, treasury activities and corporate budgetary
system. As finance internee of this virtual report, I understand deeply about the
responsibilities and the duties that involves the audits assisting about company finance,
entering data into different accounts and finance divisions, preparing the financial
statements and the meetings that are particularly conducts for meeting the organizational

80
goals. The common understanding that builds after the accomplishment of this report is
that my communication skills become enhance along with my searching skills. Moreover, I
am now capable enough to focus on the relevant data, extract it and write it in concise
manner. In this report I analyze and explore the skills that I never observe before and use
in the entire life.

4.3. Reflection on your learning during internship report:

There are various things that I took away with me are that first I enhance my
search skills. But the main thing beneficial for me in the present and near future is that I
learn the knowledge of entire course journey on this report and I realize that my teachers
are my mentors that facilitates and transfer such the value able knowledge that not only
support me to get the good grades and for the successful accomplishment of this report but
it has the long lasting benefits because through this knowledge I will show my field skills
and knowledge to other person and feel pride to be the student of Comsats Wah and the
entire staff. To sum it up, the beneficial thing for me is to apply the theoretical knowledge
to report through which I recall my all-previous semester knowledge that was more
interesting for me during the entire journey of report completion.

4.4. Compare and contrast with theory (course concept) to work

experience:
Although the finance is my major subject but for the accomplishment of this report
each course play their crucial role for which I am thankful to my entire staff that deliver
such a value able and informative knowledge through which today I am capable enough to
accomplish this task in an effective and efficient manner. The report starts with the
company introduction that I had cover in my marketing and management subjects so, it
was easy for me to use course knowledge about the company vision, mission,
organizational hierarchy, and the competitors of Wah Nobel Group of Companies in a
systematic and effective manner. In the second chapter of the report there is the operation
analysis of the company and this chapter easily done by me because we had covered the
business management subject in the second semester in which sir Haroon teach use about
the in-depth knowledge about the operational activities of the companies on departmental
level. In this way I extract the data from reliable resources from different sites and write it
in company perspective while using my theoretical knowledge about business operations.

81
 The more value able and the beneficial exposure is the chapter three of this report
because it was purely related with finance concepts and formulas based on which I draw
the interpretation of each term. In the beginning of financial portion, I spend the day first
on the balance sheet and income statement this knowledge come from the first and the
second semester from financial management and business management subjects that was
teach by Sir Shahab and Dr Majid Jamal khan. It was an effective and value able
exposure because I learned about the proper format of balance and income sheet that I
utilize in this report and done successfully. On the same side before this great exposure, I
always think that I forget the financial ratios but during working on my report I
practically applies these ratios while extracting the values from different financial sites
i.e. investing.com etc. In this way I successfully accomplish the financial portion while
applying my theoretical data to draw the financial analysis to analyze the company
current performance in a systematic way.

82
CHAPTER # 6

CONCLUSION

83
CONCLUSION:
In the last, I would like to say that it was once a first-class ride for me to have an
internship with such a satisfactory enterprise and their personnel and management team. It
was friendly environment for me to learn the new matters from them and watch them and
attain and share their thoughts and approaches of working on a specific seat. From the
realistic point of view, it was my first journey to have a wonderful interaction with the any
company and their group of employees along with the higher-level management
understanding. In the internship even though I have discovered very low from the company
and their departments point of view, however that additionally assist me a lot to recognize
the new things and additionally study the practical form of the theoretical concepts and
knowledge in the organization.

84
 CHAPTER # 7

RECOMMENDATIONS

85
RECOMMENDATIONS/SUGGESTIONS:
Now I would like to give some suggestions for those points which I have discussed in
the previous heading, that how the company can overcome those issues and can turn them
into their most reliable and active players of the departments.
 Every department must have to build up the more friendly relations among their
employees and the employees of the other departments too.
 HRM department of the company must make it more active and try to develop the
strategies and plans by which they can enhance the mutual understanding, friendship,
and motivation along with the inspiration of the work in the employees.
 Management will have to look after the departments who have any issue regarding
the equipment; they must entertain them to get there on time.
 A sort of any information unit will be established within the company which will
guide the employees and new internees about the company and its different
achievements will increase the knowledge and motivation as well as towards the
work.
 Task in the departments and the posts were assigned to the employees on the bases of
the skills and work practices, in order to finish the work on time.
 Strong need to build the proper laws and policies of salaries and pensions were
revised, to take out the employees from that problem and gain their maximum efforts
on the performance in the different sectors which they were serving.
 Strong need for the incentives and for the motivation of the work is needed for the
employees, so that they main remain to their work.
 Short time promotions, incentives on the performance, bonuses, appreciation in front
of others etc., needs to be introducing in the company for the any better output from
the employees.
 More training programs should be design or arrange for their employees.
 Communication gap must be eliminated between management and staff through
counseling or establishing Human Resource Department.
 Maximum employee should be involved in decision-making.

86
 Motivate and compensate employees as per their requirement. See where they exist in
Maslow Hierarchy. If you will not do so, employees will not be able to move ahead.
 Communicate goals because if goals are communicated to employees, then they will
be more motivated because they will be aware that on what basis they will be
evaluated.
 Resin and Maudling should ideally be considered as separate entity. Because the
demand of glue/formaldehyde is going to increase by the end of every year plus they
have developed some in house production facilities which are consuming a
reasonable portion of their total production of formaldehyde. So, there is a dire need
that they enhance their production capacity soon so that they can deal with any sort
of threats well before time.

87
 CHAPTER # 8

BIBLIOGRAPHT

88
REFERENCES & SOURCES USED:
I have used multiple sources to gather information about the contents of my
internship report, those include:
From web references
www.accountingexplained.com
www.wahnobel.com
www.wahnobel.com/index.php/companies/wah-nobel-chemicals
www.wahnobel.com/index.php/investor-information
www.wikipedia.org

Sources:
From company point of view, I have interacted with the multiple departments in order
to gai data and information about my questions and the points of the table of contents of the
internship report, in this regard I have an interaction with the departments those includes.
 Accounts and finance department employees
 Administration and HRM department employees
 Transportation department
 Marketing department

Besides that, I have consulted with five years financial reports and audit reports for the
collection of some relevant data for my report.

89
CHAPTER # 9

APPENDICES

90
 APPENDIX-1
WAH NOBEL CHEMICAL LIMITED
BALANCE SHEET
2016 2017 2018 2019 2020
(RUPEES) (RUPEES) (RUPEES) (RUPEES) (RUPEES)
ASSETS
Property, plant and 171,363,770 170,642,211 307,614,061 332,754,853 297,682,203
equipment
Deffered tax assets 0 5,958,521 0 0 10,299,322
Non-current assets 171,363,770 176,600,732 307,614,061 332,754,853 307,981,525
Stores, spares and loose 39,734,694 44,516,967 49,875,402 50,771,164 52,368,690
tools
Stock in trade 112,713,920 187,227,753 281,257,806 377,656,323 306,618,215
Trade Debts 396,261,226 423,456,278 442,532,051 819,312,359 845,019,571
Advances, deposits and 11,325,545 43,135,895 65,290,709 28,646,464 32,805,001
other receivables
Short-term investment 2,582,666 2,690,788 2,679,516 2,678,133 2,818,979
Advance tax-net 131,398,647 129,614,957 159,392,070 226,841,607 235,197,154
Cash and bank balances 7,795,339 4,384,163 19,063,993 20,660,594 24,608,858
Current Assets 701,974,868 835,026,801 1,020,091,547 1,526,566,644 1,499,436,46
8
TOTAL ASSETS 873,338,638 1,011,627,53 1,327,705,608 1,859,321,497 1,807,417,99
3 3
EQUITY
Share capital 90,000,000 90,000,000 90,000,000 90,000,000 90,000,000
Capital reserves 944,404 944,404 944,404 944,404 944,404
Revenue reserves 470,819,297 567,666,376 687,435,629 796,700,771 892,687,402
TOTAL EQUITY 561,763,701 658,610,780 778,380,033 887,645,175 983,631,806
LIABILITIES
Long-term financing 0 0 82,285,714 54,857,143 40,036,569
Deferred liabilities 5,495,051 5,444,971 6,502,996 8,317,212 7,001,857
Non-current liabilities 5,495,051 5,444,971 88,788,710 63,174,355 47,038,426
Trade and other payables 150,422,100 119,985,111 222,725,992 263,446,193 156,817,788
Due to parent company 1,772,300 4,626,833 1,288,910 967,119 73,945
Unclaimed dividends 2,313,009 4,039,819 4,706,707 5,979,053 6,332,195
Current portion of long-term 0 0 13,714,286 30,046,542 34,038,974
financing
Loan from parent company 0 217,968,436 216,372,478 308,324,631 308,346,639

91
 Short-term borrowings 151,572,477 951,583 1,728,492 299,738,429 271,138,220
Current liabilities 306,079,886 347,571,782 460,536,865 908,501,967 776,747,761
TOTAL LIABILITIES 311,574,937 353,016,753 549,325,575 971,676,322 823,786,187
TOTAL EQUITY AND 873,338,638 1,011,627,53 1,327,705,608 1,859,321,497 1,807,417,99
LIABILITIES 3 3

APPENDIX-2
WAH NOBEL CHEMICAL LIMITED
INCOME STATEMENT
2016 2017 2018 2019 2020
(RUPEES) (RUPEES) (RUPEES) (RUPEES) (RUPEES)
Revenue-net 1,181,517,75 1,250,740,28 1,680,925,40 2,262,829,00 1,950,049,48
0 9 3 3 9
Cost of sales 945,171,338 980,288,459 1,344,699,33 1,907,954,65 1,624,055,81
7 4 7
Gross profit 236,346,412 270,451,830 336,226,066 354,874,349 325,993,672
Administrative and general 34,104,858 31,497,018 36,396,253 14,728,173 12,119,827
expenses
Selling and distributive 51,708,786 30,786,997 27,064,118 10,265,806 9,861,794
expenses
Operating profit 150,532,768 208,167,815 272,765,695 329,880,370 304,012,051
Finance cost 14,975,505 7,641,174 6,980,403 48,691,364 77,191,614
Other expenses 9,958,268 14,575,846 18,948,176 18,959,183 13,785,268
Allowance for expected credit 8,072,984 1,401,980 0 17,221,154 35,507,023
losses
Other income 2,558,788 4,510,831 2,619,285 4,596,249 5,417,448
Profit before taxation 120,084,799 189,059,646 249,456,401 249,604,918 182,945,594
Income tax expense 41,615,541 57,954,960 75,354,487 73,112,461 52,638,246
Profit for the year 78,469,258 131,104,686 174,101,914 176,492,457 130,307,348

92
APPENDIX-3

APPENDIX-4

APPENDIX-5

93
PLAGIARISM REPORT:

94
 INTERNSHIP (FACULTY SUPERVISOR FEEDBACK FORM)
MANAGEMENT SCIENCES
COMSATS University Islamabad Wah campus
Note: Student will attach this filled form with internship report
Student Name: Sawera Abid Registration No:
Program: Specialization:
BBS/BS(BA)/MBA
Cell No: Email ID:
Note: Filled by faculty supervisor
Checklist for Internship Total Marks Obtained Marks
Weekly reports countersigned from Faculty supervisory 5
Binding and front-page Requirements 5
CD pack of report and concerned documents 5
Contents and components 15
Executive summary
Company background
Business operations
Organization structures
Marketing analysis
HRM strategic analysis
Financial analysis
Competitive strategy
SWOT analysis
Other analysis if required
Work description (elaboration of work) 10
Usefulness of internship (must be the part of report) 5
Suggestions (must be part of report) 5
Total Marks 50

Faculty supervisor In-charge internship Head of

Department

95