FINAL PROJECT

On Financial Analysis of PAKISTAN REFINERY LIMITED

Submitted by
Dr. Sehrish Illyas
DEPARTMENT OF MANAGEMENT SCIENCES
BBA-6th
2021-25
LAHORE COLLEGE FOR WOMEN UNIVERSITY, LAHORE
----------------------------------------------------------------------------------------------------

Prepared by
Khadija Khalid (40)
Sammar Nasir (59)
Jayesha Khan (37)
Laiba Nawaz (41)
Executive summary

This comprehensive project report presents a detailed analysis of Pakistan

Refinery Limited's financial performance over the past 4 years, utilizing various
ratio analysis techniques. This study aimed to assess the company's financial
health, identify areas for improvement, and provide recommendations for
enhancing its overall economic performance.
The Refinery is situated on the coastal belt of Karachi, Pakistan. PRL is a hydro-
skimming refinery designed to process various imported and local crude oil to
meet the country's strategic and domestic fuel requirements. The company's
financial statements (balance sheet and income statement) were analyzed using
various ratio analysis techniques to evaluate its financial performance. The study
employed various ratio analysis techniques, including; Liquidity ratios, Activity
ratios, Debt ratios, Profitability ratios, and Market ratios. We also did the vertical
and horizontal analysis of balance sheet and income statement.
Overview of the Company
Pakistan Refinery Limited (PRL) was incorporated in Pakistan as a Public Limited
Company in May 1960 and is quoted on the Pakistan Stock Exchange. The
Refinery is situated on the coastal belt of Karachi, Pakistan. PRL is a hydro
skimming refinery designed to process various imported and local crude oil to
meet the strategic and domestic fuel requirements of the country. The Refinery has
a capacity of processing approximately 50,000 barrels per day of crude oil into a
variety of distilled petroleum products such as Motor Gasoline, High Speed Diesel,
Furnace Oil, Jet Fuels, Kerosene Oil and Naphtha.
The Refinery is operating at two locations – the main processing facility is located
at Korangi Creek with supporting crude berthing and storage facility at Keamari.
PRL since inception has been the principal manufacturer and supplier of petroleum
products to the domestic market and Pakistan defense forces. It continues to serve
the energy needs of the country with professional excellence and high degree of
commitment. PRL takes pride in the edge it enjoys over its competitors in respect
of efficiency, lower operating cost, high quality human resources, reliability and
introduction of newer generation technologies.
The operations of the Company are managed by the Refinery Leadership Team
which is led by the Managing Director and Chief Executive Officer of the
Company and is responsible for ensuring that the policies and strategies as
approved by the Board are implemented whilst maintaining a culture of openness,
integrity, accountability and commitment to the Company’s Principles.
Vision
To be the Refinery of first choice for all stakeholders.
Our vision at PRL is to become the most trusted and preferred oil refinery in
Pakistan. We aim to create value for all stakeholders while contributing
significantly to the nation's energy security.
Mission
PRL is committed to remaining a leader in the oil refining business of Pakistan by
providing value-added products that are environmentally friendly, and by
protecting the interest of all stakeholders in a competitive market through
sustainable development and quality human resources.
Business Philosophy -Core Values:
At PRL, our core values revolve around integrity, excellence, innovation, and
sustainability. We believe in upholding ethical standards, striving for excellence,
fostering innovation, and ensuring sustainable practices in all our operations.
The core values of Pakistan Refinery Limited (PRL) are:
1. Safety: Prioritizing the safety and well-being of employees, contractors, and the
community.
2. Integrity: Conducting business with transparency, honesty, and ethical
principles.
3. Teamwork: Fostering collaboration, mutual respect, and open communication
among employees.
4. Excellence: Striving for exceptional performance, innovation, and continuous
improvement.
5. Customer Satisfaction: Delivering high-quality products and services that meet
customer needs.
6. Social Responsibility: Embracing environmental and social responsibilities,
contributing to sustainable development.
7. Respect: Valuing diversity, inclusivity, and the dignity of all individuals.
8. Accountability: Taking ownership and responsibility for actions, decisions, and
outcomes.
Code of conduct
The code of conduct of Pakistan Refinery Limited (PRL) outlines the ethical
standards and principles that guide the behavior of its employees, directors, and
contractors. The code encompasses:
1. Compliance with laws and regulations: Adhering to all applicable laws,
regulations, and industry standards.
2. Ethical business practices: Conducting business with integrity, honesty, and
transparency.
3. Confidentiality and data privacy: Protecting sensitive information and
maintaining confidentiality.
4. Conflict of interest: Avoiding conflicts of interest and disclosing potential
conflicts.
5. Gifts and gratuities: Refraining from offering or accepting gifts or gratuities
that may influence decisions.
6. Harassment and discrimination: Promoting a workplace free from harassment
and discrimination.
7. Health, safety, and environment: Prioritizing health, safety, and environmental
protection.
8. Intellectual property: Respecting and protecting intellectual property rights.
9. Reporting violations: Encouraging reporting of code violations and ensuring
whistleblower protection.
10. Accountability: Holding employees and contractors accountable for adhering
to the code.
The code of conduct is a public commitment by PRL to uphold ethical standards
and ensure responsible business practices.
Market Standing
PRL holds a prominent market position in the oil refining industry in Pakistan.
With a solid credit rating and a track record of operational excellence, we have
been honored with various awards for our unwavering commitment to quality,
safety, and environmental sustainability.
Market Position
Pakistan Refinery Limited (PRL) maintains a strong market position in the oil
refining industry in Pakistan. As one of the leading players in the sector, PRL plays
a crucial role in meeting the nation's energy needs. The company's strategic
location, operational efficiency, and commitment to quality products contribute to
its prominent standing in the market. PRL's established presence and reputation
make it a key player in the oil refining landscape of Pakistan.
Credit Rating
Pakistan Refinery Limited boasts a solid credit rating, indicating its financial
strength and stability. A strong credit rating reflects the company's ability to meet
its financial obligations and signals confidence to investors and stakeholders.
PRL's consistent performance, prudent financial management, and adherence to
industry best practices contribute to its favorable credit rating. This rating
underscores PRL's reliability and credibility in the financial market.

Awards and Recognition

Pakistan Refinery Limited has garnered numerous awards and recognition for its
outstanding performance and commitment to excellence. These accolades highlight
PRL's dedication to quality, safety, and environmental sustainability in its
operations. Awards such as "Best Refinery Award" or "Excellence in
Environmental Stewardship" showcase PRL's continuous efforts to achieve
operational excellence while upholding the highest standards of safety and
environmental responsibility. The recognition received by PRL underscores its
position as a top-tier player in the oil refining industry, setting it apart for its
exceptional performance and contributions to the sector.
 Horizontal Analysis
Horizontal Analysis of Balance Sheet

2023 vs 2022 2022 vs 2021 2021 vs 2020

ASSETS
Non-current
assets
Property,plant
and equipment -1.84% 41.97% -3.74%
Right-of-use-asset -12.12% -10.81% -9.76%
Intangible assets 100.00% 0.00% 0.00%
Investment accounted for using the
equity method -17.40% -5.80% -9.75%
Long-term
deposits and loans -8.66% 13.43% 4.99%
Employee benefit
prepayments -41.37% 27.38% -15.46%
Deferred tax asset 100.00% 0.00% 0.00%
-1.39% 41.40% -3.81%
Current Assets 0.00% 0.00% 0.00%
Inventories 47.40% 130.97% 30.77%
Trade receivables 76.12% 71.59% 79.67%
Trade deposits, loans, advances, and short-
term prepayments -23.75% 203.59% 52.60%
Other receivables 264.67% -15.87% 46769.46%
Taxation- payment less
provisions 0.00% -100.00% 15.94%
Cash and bank
balances -50.42% 32286.63% -96.68%
24.19% 203.71% 45.57%
15.97% 121.85% 15.63%
EQUITY AND
LIABILITIES 0.00% 0.00% 0.00%
EQUITY 0.00% 0.00% 0.00%
Share capital 0.00% 0.00% 100.00%
Subscription money against
rights issue 0.00% 0.00% -100.00%
Accumulated loss -0.20% 0.55% -0.97%
Special reserve 11.31% 448.58% 43.08%
Revaluation surplus on property, plant and
equipment 0.00% 82.31% 0.00%
Other reserves 0.00% 0.00% 0.00%
-57.86% 2839.31% -1270.70%
LIABILITIES 0.00% 0.00% 0.00%
Non-current
liabilities 0.00% 0.00% 0.00%
Long-term
borrowings 100.00% -100.00% -93.03%
Long-term lease
liability -6.13% -4.38% -2.76%
Deferred tax
liabilities -100.00% 5699.98% -50.59%
Employee benefit
obligations 8.48% 55.41% -16.16%
173.45% 22.82% -82.92%
Current liabilities 0.00% 0.00% 0.00%
Trade and other
payables 0.29% 125.74% 13.71%
Short-term
borrowings 57.84% 7.56% 39.48%
Unearned
revenue -100.00% -57.14% -89.27%
Current portion of long-term lease
liability 35.03% 40.86% 36.08%
Taxation- provision less
payments -5.10% 100.00% -100.00%
Unclaimed
dividend 0.00% 0.00% 100.00%
16.59% 74.01% 23.78%
18.95% 72.93% 9.32%
Contingencies and
commitments 0.00% 0.00% 0.00%
-17.29% 211.06% 15.63%

Interpretation
Non- current assets show a growth according to trend except the right-of-use assets
which are showing the negative growth i.e., -12.12% and in all other years as well
but intangible assets shown a good performance in 2023.This intangible asset is
goodwill of company which are not much reduced. Current assets shown a good
performance accept short-term prepayments which is not a good signal but it
shows a increase in the receivable in large amount it means that assets is inventory
is converting to cash and this is positive sign because the company its receivables
this year. As a whole if we see our balance sheet than it shown that our assets our
increasing very fast and due to which receivable are increases. Total equity amount
is much more in 2022 as compared to all other years but decreased by almost 45%
which is not a good signal. Non-current liabilities show a decline means company
pay off their liabilities so that’s why company is showing a negative growth in
non-current liabilities current liabilities are in positive percentage but are less as
compare to previous year it means company pay off many current liabilities during
2022 to 2023. Total equity and liabilities show a positive growth but less then
previous year because last year liabilities are in positive growth so they increase
the percentage of total equity and liabilities and in this year, liabilities increase so
the percentage also increase which shows a not much good sign for company.
 Horizontal Analysis of Income Statement
2023 vs 2022 vs 2021 vs
2022 2021 2020
Revenue from contracts with customers 36.87% 107.76% 1.72%
Cost of sales 48.83% 92.52% -6.38%
Gross Profit/(Loss) -63.99% 525.50% -174.19%
Distribution cost -100.00% 20.65% 29.20%
Selling Expenses 100.00% 0.00% 0.00%
Administration expenses 76.62% 15.32% 4.14%
1281.75
Other operating expenses 0.42% % 309.11%
Other income 660.34% -16.03% 288.61%
Operating Profit/(Loss) -57.44% 491.89% -160.18%
Finance cost 157.45% 20.43% -34.27%
Share of loss/income of associate-accounted for using the equity method 182.79% -46.32% 95.33%
Profit/ (Loss) before income tax -78.82% 871.62% -123.74%
Taxation -53.73% 376.55% 2.37%
1242.39
Profit/loss for the period -85.49% % -112.35%

Interpretation
Horizontal analysis is used to measure the growth of items of financial statement.
The horizontal analysis of income statement shows that sales are growing with
good percentage but from 2022 to 2023 it is decreasing which means revenue is
decreasing it means the company is in a stable position to sell but have to improve
them. COGS also increases because when sales increase it shows that more units
were produced so more unit acquire more cost that’s why cost also increases with
the sales. Gross shows a decline in 2020 to 2021 but after that it shows growth
which is quite satisfactory but again decrease in them. After that all expenses also
rise because production increases cost and expenses also increase but operating
expenses are increasing year to year which means more outflow. company has a
negative net profit in 2020 to 2021 but again increases and again decreases which
is not a good signal.
 Vertical analysis
Vertical analysis of Balance Sheet
2020 2021 2022 2023

ASSETS
Non-current
assets
Property, plant and equipment 59.82% 49.80% 31.87% 26.97%
Right-of-use-
asset 0.46% 0.36% 0.14% 0.11%
Intangible
assets 0.00% 0.00% 0.00% 0.01%
Investment accounted for using the equity
method 0.18% 0.14% 0.06% 0.04%
Long-term deposits and
loans 0.07% 0.07% 0.03% 0.03%
Employee benefit prepayments 0.09% 0.06% 0.04% 0.02%
Deferred tax
asset 0.00% 0.00% 0.00% 0.15%
60.62% 50.43% 32.14% 27.33%
Current
Assets
Inventories 22.47% 25.41% 26.45% 33.62%
Trade
receivables 10.34% 16.07% 12.43% 18.88%
Trade deposits, loans, advances, and short-term
prepayments 0.14% 0.18% 0.25% 0.17%
Other
receivables 0.02% 7.50% 2.84% 8.94%
Taxation- payment less provisions 0.23% 0.23% 0.00% 0.00%
Cash and bank balances 6.18% 0.18% 25.88% 11.07%
39.38% 49.57% 67.86% 72.67%
100.00% 100.00% 100.00% 100.00%
Equity &
Liabilities
EQUITY
Share capital 8.89% 15.37% 4.94% 5.97%
Subscription money against rights
issue 5.48% 0.00% 0.00% 0.00%
Accumulated
loss 51.80% 44.36% 14.34% 17.30%
Special
reserve 5.48% 6.78% 11.96% 16.10%
Revaluation surplus on property, plant and equipment 31.45% 27.20% 15.94% 19.27%
Other
reserves 0.01% 0.00% 0.00% 0.00%
-0.49% 4.99% 47.18% 24.04%
LIABILITIES
Non-current liabilities
Long-term borrowings 11.89% 0.72% 0.00% 1.90%
Long-term lease liability 0.43% 0.36% 0.11% 0.13%
Deferred tax liabilities 0.03% 0.01% 0.22% 0.00%
Employee benefit
obligations 1.27% 0.92% 0.46% 0.60%
13.62% 2.01% 0.79% 2.63%
Current
liabilities
Trade and other
payables 50.87% 50.03% 36.31% 44.02%
Short-term borrowings 35.54% 42.87% 14.82% 28.29%
Unearned
revenue 0.40% 0.04% 0.01% 0.00%
Current portion of long-term lease liability 0.01% 0.01% 0.01% 0.01%
Taxation- provision less payments 0.06% 0.00% 0.87% 1.00%
Unclaimed dividend 0.00% 0.05% 0.02% 0.02%
86.88% 93.00% 52.02% 73.33%
100.49% 95.01% 52.82% 75.96%
Contingencies and commitments
100.00% 100.00% 100.00% 100.00%

Interpretation
The vertical analysis of the balance sheet provides insight into the relative
proportion of each item on the balance sheet as a percentage of total assets or
liabilities and equity. This analysis is useful for understanding the composition of
the balance sheet and identifying trends in the financial position of the company.
Current assets represent the largest proportion of the company's assets and this
proportion has increased over the years to years. The largest component of current
assets is cash and cash equivalents which have increased as a percentage of total
assets. This could indicate that the company has been accumulating more cash,
possibly to find investment or to maintain liquidity. Accounts receivable and
inventory also represent a significant portion of current assets, but their proportion
has remained relatively stable over the years. Property, plant, and equipment
represent the largest portion of the noncurrent assets. The portion of this asset
fluctuated over the years 2022 to 2023.
Regarding liabilities, the proportion of current liabilities over the years 2020 to
2023 is a decrease from one year to year, indicating that the company has been
able to manage its short-term debt effectively but not much. However, the short-
term loans decreased significantly, which could indicate that the company has been
repaying its debt or refinancing it with long-term finance. The proportion of long-
term loans has decreased over the year 2020 to 2021 which shows good response
and the company has been able to manage short-term debt effectively. Overall, the
vertical analysis Shows that the company has been able to improve its financial
position by increasing its current assets, reducing short debt, and maintaining a
healthy proportion of long-term financing. This analysis also highlights the
importance of managing cash flow effectively and investing in fixed assets
prudently.
 Vertical analysis of income statement

2020 2021 2022 2023

Revenue from contracts with 100.00
customers 100.00% % 100.00% 100.00%
Cost of sales 104.83% 96.48% 89.40% 97.21%
Gross
Profit/(Loss) -4.83% 3.52% 10.60% 2.79%
Distribution
cost 0.23% 0.29% 0.17% 0.00%
Selling
Expenses 0.00% 0.00% 0.00% 0.19%
Administration expenses 0.51% 0.52% 0.29% 0.37%
Other operating
expenses 0.05% 0.19% 1.27% 0.93%
Other income 0.18% 0.69% 0.28% 1.55%
Operating Profit/(Loss) -5.43% 3.21% 9.15% 2.84%
Finance cost 2.20% 1.42% 0.83% 1.55%
Share of loss/income of associate-accounted for using the equity
method 0.00% 0.01% 0.00% 0.00%
Profit/ (Loss) before income tax -7.63% 1.78% 8.32% 1.29%
Taxation 0.76% 0.76% 1.75% 0.59%
Profit/loss for the period -8.39% 1.02% 6.58% 0.70%

Earnings/loss per share- basic and diluted 17.74 1.52 19.96 2.9

Interpretation
Vertical analysis is used to measure the relative change in accounts of the company
over the years 2019 to 2022. The Vertical analysis of the Income Statement shows
that sales are 100 percent. COGS is 97.21 % of this sales in 2023. The cost of
goods sold is 90% for all years but more in 2020, showing consistency in the
company's ability to manage its production cost. The gross profit margin first
increases and then decreases in 2023. Selling expenses fell to zero due to a change
in production strategy. Administrative expenses is 0.51% in the first two years but
due to changes in production strategy, they increased in 2022 and 2023. Operating
expenses increased but decreased over the years 2020 to 2023. It indicates that the
company has managed its operating expenses well, maintaining consistent
expenditure relative to its sales revenue. The income tax expense was 0.76% in the
first two years but increased in 2022 and then decreased in 2023. But the company
has positive growth in net profit but negative in 2020 which shows the company in
satisfactory condition.
 Ratio Analysis
1. Liquidity Analysis
Current ratio=Current Assets /Current Liabilities
2020 2021 2022 2023
Current Assets 13,959,688 20,320,752 61,715,187 76,645,664

Current 30,799,362 38,122,408 66,337,719 77,345,091

liabilities
Current ratio 0.453246 0.53304 0.930318 0.990957

Current ratio
1.2

0.8

0.6

0.4

0.2

0
2020 2021 2022 2023

Series1 Series2

Interpretation
 The Current Ratio of 2020 = 0.453, 2021: Current Ratio = 0.533, 2022: Current Ratio =
0.930 2023: Current Ratio = 0.991
 The current rate of PRL from 2020 year to 2023 year are 0.453, 0.533, 0.930, 0.991
 Trend: Positive improvement in liquidity from 2020 to 2023.
 Current State: Still slightly below ideal liquidity, indicating some risk, but much better
than previous years. Continued focus on improving liquidity is recommended.
Quick ratio = current assets - inventory / current liabilities
2020 2021 2022 2023
Numerator 5,995,296 9,905,345 37,658,272 41,184,780
Denominator 30,799,362 38,122,408 66,337,719 77,345,091

Quick ratio 0.194656 0.25983 0.567675 0.532481

Quick ratio
0.6

0.5

0.4

0.3

0.2

0.1

0
2020 2021 2022 2023

Interpretation
 The quick ratio of 2020 is 0.195 2021: Quick Ratio = 0.260 2022: Quick Ratio = 0.568
2023: Quick Ratio = 0.532
 The quick rate of PRL from 2020 year to 2023 year are 0.195, 0.260 0.568, 0.532
 Trend: Gradual improvement in liquidity from 2020 to 2023.
 Current State: Ratios are below 1.0, indicating some liquidity risk remains.
 Implications: The company needs to continue improving liquidity to ensure it can meet
short-term liabilities without relying on inventory.
 2. Activity Ratios
Inventory turnover = COGS /Inventory
2020 2021 2022 2023
Numerator 94,892,607 88,843,085 171,043,647 254,559,762

Denominator 7,964,392 10,415,407 24,056,915 35,460,884

Inventory 11.91461 8.529968 7.109958 7.178607

turnover

Inventory turnover
12

10

0
2020 2021 2022 2023

Interpretation
 The Inventory turnover of 2020 = 11.915, 2021: Inventory turnover = 8.530, 2022:
Inventory turnover= 7.2110, 2023: Inventory turnover= 7.179
 The inventory turnover of PRL from 2020 year to 2023 year are 11.915, 8.530, 7.2110,
7.179
 Trend: Declining inventory turnover from 2020 to 2023 suggests worsening efficiency in
managing inventory.
 Current State: Slower turnover could imply excess inventory or decreasing sales
efficiency.
 Implications: The company should focus on improving inventory management to increase
turnover and reduce holding costs.

Average collection period=Account receivable/ average sales per day

 2020 2021 2022 2023
Numerator 3,723,049 9,736,968 14,119,667 29,514,173
Denominator 248,011.7 252,285.18 524,153.6 717425.7
Average 15.01159 38.59509 26.93803 41.139
collection
period

Average collection period

45
40
35
30
25
20
15
10
5
0
2020 2021 2022 2023

Interpretation
 The average collection period of 2020 = 15.012, 2021: average collection period =
38.595, 2022: average collection period = 26.938, 2023: average collection period =
41.139
 The average collection period of PRL from 2020 year to 2023 year are 15.012, 38.595,
26.938, 41.139
 Trend: Inconsistent collection periods over the years.
 Current State: Fluctuations may impact cash flow and liquidity.
 Implications: Review of credit policies and collection procedures recommended to
maintain healthy cash flow.
Average payment period=account payable/average purchases per day
2020 2021 2022 2023
Numerator 18,036,132 20,509,338 46,297,714 46,432,882

Denominator 243,417.5 240,116.8 482,997.1 690,987.8

Average 74.09546 85.41401 95.85506 67.19783
payment period

Average payment period

120

100

80

60

40

20

0
2020 2021 2022 2023

Interpretation
 The average payment period of 2020 = 74.095, 2021: average payment period = 85.414,
2022: average payment period = 95.855, 2023: average payment period = 67.198
 The average payment period of PRL from 2020 year to 2023 year are 74.095, 85.414,
95.855, 67.198
 Trend: Payment periods fluctuate over the years.
 Current State: Variability may impact vendor relationships and cash flow.
 Implications: Optimization of payment processes recommended for maintaining healthy
supplier relationships

Total assets turnover= sales/Total asset

 2020 2021 2022 2023
Numerator 90,524,260 92,084,090 191,316,055 261,860,404

Denominator 35,452,348 40,994,020 90,946,926 105,471,931

Total asset 2.553407 2.246281 2.103601 2.48275

turnover

Total assets turnover

3

2.5

1.5

0.5

0
2020 2021 2022 2023

Interpretation
 3. Debt ratios
Debt ratio=Total liabilities/Total assets
2020 2021 2022 2023
Numerator 35,627,201 38,947,022 67,350,528 80,114,663

Denominator 35,452,348 40,994,020 90,946,926 105,471,931

Debt ratio 1.004932 0.950066 0.740548 0.759583

Debt ratio
1.2

0.8

0.6

0.4

0.2

0
2020 2021 2022 2023
Time Interest Earned Ratio = EBIT / Interest
2020 2021 2022 2023
Numerator (4,913,347) 2,956,772 17,500,927 7,448,177

Denominator 1,995,012 1,311,384 1,579,332 4,065,998

Time interest -2.46282 2.254696 11.08122 1.83182

earned ratio

Times interest earned ratio

12

10

0
2020 2021 2022 2023
-2

-4
Fixed payment coverage ratio = EBIT + lease payment /Int. + Lease Pay. (Prin. + Pref.
Div.) * (1/(1-T)
The fixed payment coverage ratio is zero as we have not given the value of preferred dividend in
the financial report.

4. Profitability ratios
Gross profit margin= Gross profits / Sales
2020 2021 2022 2023
Numerator (4,368,347) 3,241,005 20,272,408 7,300,642

Denominator 90,524,260 92,084,090 191,316,055 261,860,404

Gross profit -5% 4% 11% 3%

margin

Gross profit margin

12%

10%

8%

6%

4%

2%

0%
2020 2021 2022 2023
-2%

-4%

-6%
Operating profit margin = operating profit / sales
2020 2021 2022 2023
Numerator (4,913,347) 2,956,772 17,500,927 7,448,177

Denominator 90,524,260 92,084,090 191,316,055 261,860,404

Operating -5% 3% 9% 3%
profit margin

Operating profit margin

12%
10%
8%
6%
4%
2%
0%
2020 2021 2022 2023
-2%
-4%
-6%
-8%
Net profit margin = earning available for common stock holders / sales
2020 2021 2022 2023
Numerator (7,590,726) 937,156 12,580,282 1,824,967

Denominator 90,524,260 92,084,090 191,316,055 261,860,404

Net profit -8% 1% 7% 1%

margin

Net profit margin

8%

6%

4%

2%

0%
2020 2021 2022 2023
-2%

-4%

-6%

-8%

-10%
Earning per share = earning available for common stock holders/number of shares
outstanding
2020 2021 2022 2023
Numerator (7,590,726,000) 937,156,000 12,580,282,000 1,824,967,000

Denominator 315,000,000 630,000,000 630,000,000 630,000,000

Earning per -24.0975 1.487549 19.9687 2.896773
share

Earnings per share(EPS)

30

20

10

0
2020 2021 2022 2023

-10

-20

-30
Return on total asset = earning available for common stock holders / total assets
2020 2021 2022 2023
Numerator (7,590,726,000) 937,156,000 12,580,282,000 1,824,967,000

Denominator 35,452,348 40,994,020 90,946,926 105,471,931

ROA -0.21411 0.022861 0.138326 0.017303

Return on total assets(ROA)

0.2

0.15

0.1

0.05

0
2020 2021 2022 2023
-0.05

-0.1

-0.15

-0.2

-0.25
Return on equity = earning available for common stockholder / common stock equity
2020 2021 2022 2023
Numerator (7,590,726,000) 937,156,000 12,580,282,000 1,824,967,000

Denominator (174,853) 2,046,998 60,167,516 25,357,268

ROE 43.41204 0.45782 0.209088 0.07197

Return on equity(ROE)
50
45
40
35
30
25
20
15
10
5
0
2020 2021 2022 2023
 5. Market ratios
Price/earning ratio = market price per share of common stock /EPS
2020 2021 2022 2023
P/E ratio 0 16.2 0.9 4.7

Price/earnings(P/E) ratio
18
16
14
12
10
8
6
4
2
0
2020 2021 2022 2023
Market / book ratio= market price per share of common stock/book value per share
2020 2021 2022 2023
Numerator 11.4 24.7 17.9 13.6
Denominator 65.36 33.1 45.27 44.1
M/B ratio 0.174 0.75 0.4 0.31

Market/book(M/B) ratio
0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
2020 2021 2022 2023

Appendix

Income statement
 Balance Sheet
2020 2021 2022 2023
(Rupees in thousand)
ASSETS
Non-
current
assets

Property, plant and 21,208,08 20,414,35

equipment 8 3 28,981,489 28,449,521
Right-of-
use-asset 163,075 147,165 131,255 115,345
Intangible
assets - 0 0 6,736
Investment accounted for using the equity
method 65,294 58,930 55,514 45,854
Long-term deposits and
loans 25,946 27,240 30,897 28,222
Employee benefit
prepayments 30,257 25,580 32,584 19,105
Deferred
tax asset 0 0 161,484
Total non-current 21,492,66 20,673,26
assets 0 8 29,231,739 28,826,267
Current
Assets
10,415,40
Inventories 7,964,392 7 24,056,915 35,460,884
Trade
receivables 3,667,153 6,588,913 11,305,849 19,912,335
Trade deposits, loans, advances, and short-
term prepayments 49,340 75,293 228,579 174,300
Other
receivables 6,556 3,072,762 2,585,239 9,427,538
Taxation- payment less
provisions 82,540 95,697 0 0
Cash and bank
balances 2,189,707 72,680 23,538,605 11,670,607
13,959,68 20,320,75
Total current assets 8 2 61,715,187 76,645,664
35,452,34 40,994,02 105,471,93
Total assets 8 0 90,946,926 1
EQUITY
AND
LIABILITIES
EQUITY
Share
capital 3,150,000 6,300,000 6,300,000 6,300,000
Subscription money against
rights issue 1,943,175 0 0 0
Accumulate 18,184,86 18,285,559 18,249,656
 18,362,73
d loss 9 9
Special
reserve 1,943,476 2,780,632 15,254,082 16,979,049

Revaluation surplus on property, plant and 11,149,28 11,149,28

equipment 8 8 20,325,928 20,325,928
Other
reserves 1,947 1,947 1,947 1,947
Total equity (174,853) 2,046,998 60,167,516 25,357,268
LIABILITIES
Non-current
liabilities
Long-term
borrowings 4,215,146 293,924 0 2,000,000
Long-term lease
liability 152,448 148,237 141,745 133,054
Deferred tax
liabilities 9,922 4,902 284,315 0
Employee benefit
obligations 450,323 377,551 586,749 636,518
Total non-current
liabilities 4,827,839 824,614 1012809 2,769,572
Current
liabilities

Trade and other 18,036,13 20,509,33

payables 2 8 46,297,714 46,432,882

Short-term 12,599,46 17,573,54

borrowings 9 8 18,901,244 29,834,030
Unearned
revenue 140,525 15,084 6,465 0
Current portion of long-term lease
liability 3,370 4,586 6,460 8,723
Taxation- provision less
payments 19,866 0 1,105,984 1,049,604

Unclaimed dividend - 19,852 19,852 19,852

Total current 30,799,36 38,122,40
liabilities 2 8 66,337,719 77,345,091
35,627,20 38,947,02
1 2 67,350,528 80,114,663
Contingencies and
commitments
35,452,34 40,994,02 127,518,04 105,471,93
8 0 4 1