Annual Report 2011
Audit Committee
The Board of Directors in compliance to the Code of Corporate Governance has
established an Audit Committee and the following non-executive directors are its
members:
Mr. Kemal Shoaib, Chairman
Mr. Shahid Nazir Ahmed, Member
Mr. Omer Ehtisham, Member
Auditors
The present auditors, KPMG Taseer Hadi & Co., Chartered Accountants are due to retire
and being eligible, offer themselves for reappointment for the year 2011-12.
The following information is attached with this report: -
Directors statement
-
Statement in compliance of the Code of Corporate
Governance - Meetings of the Board of Directors
- Outstanding Statutory Payments
- Pattern of Shareholding
- Key operating and financial results for last six years.
Acknowledgements
The Directors would like to express their gratitude to the shareholders, distributors &
bankers
for their continued support and encouragement and also place on record their
appreciation
of the valuable services rendered by the officers, staff and field force of the Company.
For and on behalf of the Board
Mrs. Feriel Ali Mehdi
Karachi: August 10, 2011
Chief Executive Officer
34
Annual Report 2011
Vertical Analysis Of Financial Statements
Statement of Financial Position (Balance Sheet)
2011
Rs. In '000
2010
%
Rs. In '000
Non-Current Assets
Current Assets
349,202
516,410
40.34
59.66
296,943
465,717
38.94
61.06
Total Assets
865,612
100
762,660
100
Equity
403,089
46.57
386,381
50.66
Non-Current Liabilities
Current Liabilities
103,122
359,401
11.91
41.52
90,164
286,115
11.82
37.52
Total Equity and Liabilities
865,612
100
762,660
100
Profit and Loss Account
2011
Rs. In '000
Net sales
Cost of sales
2010
%
1,566,091 100.00
(1,226,184) (78.30)
Gross Profit
Rs. In '000
1,289,891
(951,249)
100.00
(73.75)
339,907
21.70
338,642
26.25
(224,017)
(77,149)
(14.30)
(4.93)
(243,349)
(49,554)
(18.87)
(3.84)
38,741
2.47
45,739
3.55
4,440
(5,388)
0.28
(0.34)
12,973
(9,786)
1.01
(0.76)
37,793
2.41
48,926
3.79
(4,715)
(0.30)
(696)
(0.05)
Profit before tax
Taxation
33,078
(12,655)
2.11
(0.81)
48,230
(17,144)
3.74
(1.33)
Profit for the year
20,423
1.30
31,086
2.41
Selling and distribution expenses
Administrative expenses
Other operating income
Other operating expense
Financial expenses
35
Annual Report 2011
2009
Rs. In '000
2008
%
2007
Rs. In '000 %
2006
Rs. In '000
Rs. In '000
293,088
433,764
40.32
59.68
298,330
345,882
46.31
53.69
302,011
256,995
54.03
45.97
215,190
266,140
44.71
55.29
726,852
100
644,212
100
559,006
100
481,330
100
366,547
50.43
319,703
49.63
307,239
54.96
244,392
50.77
86,865
273,440
11.95
37.62
85,625
238,884
13.29
37.08
90,730
161,037
16.23
28.81
63,716
173,222
13.24
35.99
726,852
100
644,212
100
559,006
100
481,330
100
2009
Rs. In '000
2008
2007
2006
Rs. In '000 %
Rs. In '000
1,350,144
(990,889)
100.00
(73.39)
1,105,489 100.00
(819,745) (74.15)
920,597
(654,019)
100.00
(71.04)
912,698
(638,651)
100.00
(69.97)
359,255
26.61
285,744
25.85
266,578
28.96
274,047
30.03
(223,607)
(38,897)
(16.56)
(2.88)
(197,146)
(38,667)
(17.83)
(3.50)
(169,875)
(34,294)
(18.45)
(3.73)
(151,740)
(30,042)
(16.63)
(3.29)
96,751
7.17
49,931
4.52
62,409
6.78
92,265
10.11
6,751
(16,494)
0.50
(1.22)
4,574
(13,744)
0.41
(1.24)
6,604
(5,021)
0.72
(0.55)
6,699
(6,294)
0.73
(0.69)
87,008
6.44
40,761
3.69
63,992
6.95
92,670
10.15
(6,682)
(0.49)
(3,882)
(0.35)
(1,870)
(0.20)
(3,158)
(0.35)
80,326
(29,082)
5.95
(2.15)
36,879
(12,829)
3.34
(1.16)
62,122
(21,503)
6.75
(2.34)
89,512
(31,175)
9.81
(3.42)
51,244
3.80
24,050
2.18
40,619
4.41
58,337
6.39
36
Rs. In '000
Annual Report 2011
Horizontal Analysis Of Financial Statements
Statement of Financial Position (Balance Sheet)
2011
2010
2009
Rupees in '000
2008
Non-Current Assets
Current Assets
349,202
516,410
296,943
465,717
293,088
433,764
298,330
345,882
Total Assets
865,612
762,660
726,852
644,212
Equity
403,089
386,381
366,547
319,703
Non-Current Liabilities
Current Liabilities
103,122
359,401
90,164
286,115
86,865
273,440
85,625
238,884
Total Equity and Liabilities
865,612
762,660
726,852
644,212
Net sales
Cost of sales
1,566,091
(1,226,184)
1,289,891
(951,249)
1,350,144
(990,889)
1,105,489
(819,745)
Gross Profit
339,907
338,642
359,255
285,744
(224,017)
(77,149)
(243,349)
(49,554)
(223,607)
(38,897)
(197,146)
(38,667)
38,741
45,739
96,751
49,931
Other operating income
Other operating expense
4,440
(5,388)
37,793
12,973
(9,786)
48,926
6,751
(16,494)
87,008
4,574
(13,744)
40,761
Financial expenses
(4,715)
(696)
(6,682)
(3,882)
Profit before tax
Taxation
33,078
(12,655)
48,230
(17,144)
80,326
(29,082)
36,879
(12,829)
Profit for the year
20,423
31,086
51,244
24,050
Summary of Cash Flows
2011
2010
2009
Rupees in '000
Profit and Loss Account
Selling and distribution expenses
Administrative expenses
2008
Net cash flows from operating activities
(67,768)
(5,657)
139,130
(18,416)
Net cash flows from investing activities
(51,666)
(21,412)
(19,370)
5,450
Net cash flows from financing activities
61,487
(19,258)
(4,348)
(11,940)
Net change in cash and cash equivalents (57,947)
(46,327)
115,412
(24,906)
37
Annual Report 2011
2007
2006
2011
302,011
256,995
215,190
266,140
17.60
10.88
1.32
7.37
(1.76)
25.41
(1.22)
34.59
40.35
(3.44)
7.55
22.30
559,006
481,330
13.50
4.93
12.83
15.24
16.14
15.23
307,239
244,392
4.32
5.41
14.65
4.06
25.72
22.16
90,730
161,037
63,716
173,222
14.37
25.61
3.80
4.64
1.45
14.47
(5.63)
48.34
42.40
(7.03)
(19.38)
24.97
559,006
481,330
13.50
4.93
12.83
15.24
16.14
15.23
920,597 912,698
(654,019) (638,651)
21.41
28.90
(4.46)
(4.00)
22.13
20.88
20.08
25.34
0.87
2.41
7.99
(5.27)
274,047
0.37
(5.74)
25.73
7.19
(2.73)
60.27
(169,875) (151,740)
(34,294) (30,042)
(7.94)
55.68
8.83
27.40
13.42
0.59
16.05
12.75
11.95
14.15
70.77
43.47
266,578
2010
2009
2008
2007
% increase/ (decrease) over preceeding year
2006
62,409
92,265
(15.29)
(52.73)
93.77
(19.99)
(32.36)
50.78
6,604
(5,021)
63,992
6,699
(6,294)
92,670
(65.77)
(44.94)
(22.75)
92.16
(40.67)
(43.77)
47.60
20.01
113.46
(30.74)
243.86
(36.30)
(1.42)
(36.50)
(30.95)
(45.71)
40.93
34.17
(1,870)
(3,158)
577.44
(89.58)
72.13
107.59
(40.79)
(38.92)
62,122
(21,503)
89,512
(31,175)
(31.41)
(26.16)
(39.96)
(41.05)
117.81
126.69
(40.63)
(40.34)
(30.60)
(31.02)
40.09
43.23
40,619
58,337
(34.30)
(39.34)
113.07
(40.79)
(30.37)
38.46
2007
2006
2011
2010
2009
2008
2007
% increase/ (decrease) over preceeding year
2006
88,088
112,704
1,098
(104)
(855)
(121)
(22)
655
(35,634)
(57,401)
141
11
(455)
(115)
(38)
505
(41,124)
(31,297)
(419)
343
(64)
(71)
31
35
11,330
24,006
25
(140)
(563)
(320)
(53)
(235)
38
Annual Report 2011
Stakeholder Information
Financial Ratios
Unit
2011
Rate of return
Return on assets
Return on equity
Return on capital employed
Interest cover
%
%
%
Times
2.36
5.07
7.47
8.02
Profitability
Gross profit margin
Net profit to sales
EBITDA
EBITDA Margin to net sales
%
%
Rs.
%
21.70
1.30
67,131
4.29
Liquidity
Current ratio
Quick ratio
Times
Times
1.44
0.40
Times
%
1.15
53.43
Days
Days
Days
Days
Times
Times
7
110
33
85
4.70
1.81
Rs.
Times
Rs.
%
%
Times
Rs.
Rs.
Rs.
Rs.
Rs.
Rs.
3.84
15.41
2.00
3.38
52.08
1.92
75.71
58.07
59.19
68.07
35.19
52.82
Financial gearing
Debt-Equity ratio
Debt to Assets
Capital Efficiency
Debtor turnover/ No. of days in receivables
Inventory turnover/ No. of days in inventory
Creditor turnover/ No. of days in payables
Operating cycle
Fixed assets turnover ratio
Total asset turnover
Investment measures per ordinary share
Earnings
Price earning ratio
Cash dividend
Dividend yield
Dividend payout
Dividend cover
Breakup value including surplus on revaluation
Breakup value excluding surplus on revaluation
Market value - year end
Market value - high
Market value - low
Market value - average
39
Annual Report 2011
2010
2009
2008
2007
2006
4.08
12.48
10.27
70.30
7.05
21.91
19.19
13.02
3.73
11.54
10.06
10.50
7.27
20.22
16.08
34.22
12.12
36.63
30.08
29.34
26.25
2.41
75,236
5.83
26.61
3.80
113,661
8.42
25.85
2.18
67,596
6.11
28.96
4.41
87,548
9.51
30.03
6.39
111,767
12.25
1.63
0.64
1.59
0.84
1.45
0.59
1.60
0.76
1.54
0.83
0.97
49.34
0.98
49.57
1.02
50.37
0.82
45.04
0.97
49.23
6
108
53
61
4.74
1.69
7
75
40
42
5.04
1.86
4
115
47
72
4.04
1.72
2
75
36
41
3.33
1.65
3
70
26
47
4.32
1.90
5.84
6.87
3.50
8.72
59.93
1.67
72.57
56.93
40.13
76.59
40.13
57.80
9.63
6.57
4.00
6.32
41.54
2.65
75.73
59.43
63.30
153.00
63.30
116.82
5.47
27.42
1.00
0.67
18.28
5.47
72.66
53.80
150.00
160.10
134.55
146.81
9.23
16.25
3.00
2.00
32.50
3.38
76.81
54.93
150.00
150.00
105.00
138.78
14.58
9.60
5.00
3.57
34.29
2.92
61.10
49.21
140.00
154.00
130.00
142.02
40
Annual Report 2011
Graphs
Net Sales, Cost of Sales & Gross Profit
1800000
1600000
1400000
1200000
1000000
800000
600000
400000
200000
2006
2007
2008
2009
2010
2011
Profitability
35%
30%
25%
20%
15%
10%
5%
2006
2007
Gross profit margin
2008
2009
Net profit margin
41
2010
2011
EBITDA margin to net sales
Annual Report 2011
Rate of Return
40%
35%
30%
25%
20%
15%
10%
5%
0%
2006
2007
2008
Return on assets
2009
Return on equity
2010
2011
Return on capital employed
Liquidity
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2006
2007
2008
2009
Current ratio
2010
2011
Quick ratio
Non-Current Assets & Liabilities
400000
350000
300000
250000
200000
150000
100000
50000
0
2006
2007
2008
Non-Current Assets
2009
Non-Current Liabilities
42
2010
2011
Annual Report 2011
Asset Management
140
1.95%
120
1.9%
1.85%
100
1.8%
80
1.75%
60
1.7%
1.65%
40
1.6%
20
0
1.55%
2006
2007
2008
Debtor turnover/ No. of days in receivables
Creditor turnover/ No. of days in payables
1.5%
2009
2010
2011
Inventory turnover/ No. of days in inventory
Operating cycle
Total asset turnover
Debt Management
80
56%
70
54%
60
52%
50
50%
40
48%
30
46%
20
44%
10
52%
40%
2006
2007
Interest cover
2008
2009
Debt to Equity
43
2010
Debt to Assets
2011
