RATIO ANALYSIS, AGR, SGRFUWANG FOODS LTD-INCOME STATEMENTDetails20092010201120122013Turnover522,439,574539,554,916709,168,568758,459,050785,126,525Cost of Goods Sold434,969,289444,958,348530,277,616577,224,631605,396,108Gross Profit87,470,28594,596,568178,890,952181,234,419179730417OPERATING EXPENSES45,682,51248,455,74661,363,40067,133,87572,018,132Adminstrative expenses24,677,95026,323,63438,505,53443,353,52745,090,877Selling and distribution expenses21,004,56222,132,11222,857,86623,780,34826,927,255

Operating income before financial expenses41,787,77346,140,822117,527,552114100545107712285Financial expenses11,529,0378,476,8828,666,3725,213,60511,682,763Operating income30,258,73637,663,940108,861,180108,886,94096029522

Non-operating income1,000,0001,200,0001,200,000723,411

Net profit before tax and WPPF31,258,73638,863,940110,061,180108,886,94096752933Contribution to W.P. & Welfare Fund1,488,5111,850,6645,241,0095,185,0924607283Net Profit Before Tax29,770,22537,013,276104,820,171103,701,84792145650Provision For Income Tax8,186,81210,178,65125,942,99228,518,00830,421,496Net Profit After Tax21,583,41326,834,62578,877,17975,183,83961724154

Earnings Per Share(EPS)- Basic1.170.651.921.261.03

FUWANG FOODS LTD-BALANCE SHEETDetails20092010201120122013AssetsNon-current assets257102135284284230387920056475165649483426876Property, plant and equipment (net of accumulated dep.)257095135284277230387,913,056413,901,715450,840,954Capital work-in-progress61,256,93432,578,922Trade marks700070007,0007,0007000

Investment50,000,00050,000,00050,000,000

Current assets222835498258593052471814728474731242536,967,809Inventories6051039063978805100,367,939128,761,124141,512,216Trade and other Receivables5779468959343138100,067,414116,404,833134,991,873Advances, deposits and prepayments83972706109357268173,848,641219,428,454241,017,808Cash and cash equivalents205577132591384197,530,73410,136,83119,445,912

Total Assets4799376335428772829097347849998968911070394685

Equity and Liabilities

Shareholders' equity255776901282611526664603705739787545777765306Share capital184000000202400000445,280,000534,336,000598,456,320Tax holiday reserve182454701824547018,245,47018,245,47018,245,470Capital Reserve95,679,25090,895,28862,604,130Retained earnings5353143161966056105,398,98596,310,78798,459,386

Non- Current liabilitiesDeferred Tax Liability30,915,741

Current liabilities224160732260265756245131079260109346261713638Short term bank loans and others1094917427220478663,004,23366,497,12453,324,095Trade and other payables4099591110375784069,060,53752,787,66242,218,570Liabilities for expenses275731532087156,028,9025,269,1457,363,409Provision for income tax7091576481094415107,037,407135,555,415158,807,564

Total Equity and Liabilities4799376335428772829097347849998968911070394685FUWANG FOODS LTDRatio AnalysisFormula200920102011201220131. Current ratioCurrent assets / Current liabilities0.99408801890.99357309231.92474463021.82512181632.0517379725

2. Net working capital (NWC)Current assets - Current liabilities-1,325,234-1,672,704226,683,649214,621,896275,254,171

3. Quick Ratio(Current assets - Inventories) / Current liabilites0.72414604710.74775202851.51529863331.33009491321.5110240185

4. Working capital requirement (WCR) to sales(Accounts receivable + Inventory + Prepaids and other Current assets - Accounts Payable - Accruals and other Current liabilities) / Sales0.30343137640.23299325480.42189483360.53600468480.5960057432

5. Net liquid balance (NLB)Cash + Market Securities - Notes payable - Current maturities of long term debt (CMLTD)2055771325913841975307341013683119445912

6. Cash flow to total debt(Net income + Depreciation expense) / (Current liabilities - Accounts payable - Accrued expenses) + Long term debt0.18961062520.26704675390.54912593760.45677814030.3351694855

7. Cash flow from operations (CFFO)Net income + Non-cash charges + Change in operating current liabilities - Change in current assets440686958512154413,702,56510,978,87858,918,216

8. Cash conversion period or, Cash cycle(Days inventory held + Days sales outstanding) - Days payables outstanding56.75336715717.513851861273.0528895843104.059300305122.6220426557

9. Cash turnover365 / Cash Cycle6.431336470148.57694917924.99638004843.5076153592.9766263234

10. Cash conversion effeciencyCash flow form operations / Sales8.44%15.78%1.93%1.45%7.50%

11. Defensive interval(Cash + Short-term investments) / Daily operating expenses164.2546549323195.1998007625580.129489402555.112911551798.5551510833

12. Days inventory heldInventory / (Cost of goods sold / 365)50.77667069552.481909666369.085129429681.420313229885.3192780024

13. Days sales outstandingAccounts receivables / (Sales / 365)40.377993044240.144653913251.503419297156.018533953862.7568068026

14. Days payables outstandingAccounts payable / (Cost of goods sold / 365)34.401296582185.112711718447.535659142433.379546878725.4540421492

15. Total asset turnoverNet sales / Total assets1.08855721680.99388007910.77953331070.7585372620.7334925481

16. Total fixed asset turnoverNet sales / Total fixed assets2.03203125481.89794177471.82813071161.59619924461.624085387

17. Inventory turnoverCost of goods sold / Inventory7.18834053136.95477741425.28333670384.48291078144.2780483912

18. Total liabilities to total assets or, Debt ratioTotal liabilities / Total assets46.71%47.94%26.95%26.01%27.34%

19. Times interest earnedEBIT / Interest expense3.62456751595.443136049313.561332469921.88515336329.2197611986

20. Long term debt to capitalLong-term debt / (Long-term debt + Equity)0.00%0.00%0.00%0.00%3.82%

21. Gross profit marginGross profit / Sales16.74%17.53%25.23%23.90%22.89%

22. Net Profit MarginNet Profit/ Sales4.13%4.97%11.12%9.91%7.86%

23. Return on AssetsNet Profit/ Total Assets4.50%4.94%8.67%7.52%5.77%

24. Return on EquityNet Profit/ Total Equity8.44%9.50%11.87%10.16%7.94%

25. Operating Profit MarginOperating Profit/ Sales5.79%6.98%15.35%14.36%12.23%

Sustainable Growth Rate

2010201120122013m= After Tax Profit/Sales0.04131274520.04973474280.11122486610.0991270906d= Dividends Paid/After Tax Profit0.85250650581.50849881451.12904646350.8528471125D/E= Total Debt/Total Equity0.87639161760.92093114420.36883796640.3516000611A/S= Total Asset/Total Sales1.10338280231.22006314621.71558209621.7322491753

Sustainable Growth Rate= (m*(1-d)*(1+(D/E)))/((A/S)-(m*(1-d)*(1+(D/E))))1.05%-3.83%-1.13%1.15%Actual Growth Rate2010201120122013Actual Growth Rate= (Current Sales-Old Sales)/Old Sales3.28%31.44%6.95%3.52%

GRAPHS

CR-REGRESSIONSUMMARY OUTPUTy = -0.00255 + 0.050427x

Regression StatisticsMultiple R0.8668685237R Square0.7514610374Adjusted R Square0.6686147166Standard Error0.0174501433Observations5ANOVAdfSSMSFSignificance FRegression10.00276204810.00276204819.07054205530.0571329236Residual30.00091352250.0003045075Total40.0036755706

CoefficientsStandard Errort StatP-valueLower 95%Upper 95%Lower 95.0%Upper 95.0%Intercept-0.00255390720.0272261049-0.09380362160.9311789485-0.08919952430.0840917098-0.08919952430.0840917098X Variable 10.05042655220.01674336153.01173406120.0571329236-0.00285829680.1037114013-0.00285829680.1037114013

CR-TABLEYearCurrent Ratio(x)Net Profit Margin(Y)20090.99408801890.0420100.99357309230.0520111.92474463020.1120121.82512181630.1020132.05173797250.08

NWC-REGRESSIONSUMMARY OUTPUTy = 0.048501+1.93x

Regression StatisticsMultiple R0.8492634751R Square0.7212484501Adjusted R Square0.6283312668Standard Error0.018480359Observations5ANOVAdfSSMSFSignificance FRegression10.00265099960.00265099967.76227199770.068641999Residual30.0010245710.0003415237Total40.0036755706

CoefficientsStandard Errort StatP-valueLower 95%Upper 95%Lower 95.0%Upper 95.0%Intercept0.04850102470.01287427283.76728265120.03272651990.00752934270.08947270670.00752934270.0894727067X Variable 10.00000000020.00000000012.78608542540.068641999-00.0000000004-00.0000000004

NWC-TABLEYearNet Working Capital(x)Net Profit Margin(Y)2009-1,325,2340.042010-1,672,7040.052011226,683,6490.112012214,621,8960.102013275,254,1710.08

QR-REGRESSIONSUMMARY OUTPUTy = -0.00312+0.067875x

Regression StatisticsMultiple R0.8943480582R Square0.7998584493Adjusted R Square0.7331445991Standard Error0.0156592295Observations5ANOVAdfSSMSFSignificance FRegression10.00293993620.002939936211.98939120540.0405643933Residual30.00073563440.0002452115Total40.0036755706

CoefficientsStandard Errort StatP-valueLower 95%Upper 95%Lower 95.0%Upper 95.0%Intercept-0.00311609060.0238989491-0.13038609380.9045127703-0.07917321290.0729410316-0.07917321290.0729410316X Variable 10.06787496530.01960248163.4625700290.04056439330.00549112020.13025881050.00549112020.1302588105

QR-TABLEYearQuick Ratio(x)Net Profit Margin(Y)20090.72414604710.0420100.74775202850.0520111.51529863330.1120121.33009491320.1020131.51102401850.08

CCP-REGRESSIONSUMMARY OUTPUTy = 0.047413+0.000393x

Regression StatisticsMultiple R0.5786284298R Square0.3348108597Adjusted R Square0.1130811463Standard Error0.0285479109Observations5ANOVAdfSSMSFSignificance FRegression10.0012306210.0012306211.50999545610.3067399751Residual30.00244494970.0008149832Total40.0036755706

CoefficientsStandard Errort StatP-valueLower 95%Upper 95%Lower 95.0%Upper 95.0%Intercept0.0474131940.02653897431.78654960210.1719831343-0.03704566680.1318720548-0.03704566680.1318720548X Variable 10.0003927190.00031959071.22881872390.3067399751-0.00062436120.0014097993-0.00062436120.0014097993

CCP-TABLEYearCash conversion period(x)Net Profit Margin(Y)200956.75336715710.0420107.51385186120.05201173.05288958430.112012104.0593003050.102013122.62204265570.08

DSO-REGRESSIONSUMMARY OUTPUTy = -0.02901+0.002093x

Regression StatisticsMultiple R0.6826350914R Square0.4659906681Adjusted R Square0.2879875574Standard Error0.0255785653Observations5ANOVAdfSSMSFSignificance FRegression10.00171278160.00171278162.61787935260.2040950465Residual30.0019627890.000654263Total40.0036755706

CoefficientsStandard Errort StatP-valueLower 95%Upper 95%Lower 95.0%Upper 95.0%Intercept-0.02900726840.0659023575-0.44015524540.6896069288-0.23873798260.1807234459-0.23873798260.1807234459X Variable 10.00209349950.0012938921.61798620280.2040950465-0.00202424250.0062112414-0.00202424250.0062112414

DSO TABLEYearDays sales outstanding(x)Net Profit Margin(Y)200940.37799304420.04201040.14465391320.05201151.50341929710.11201256.01853395380.10201362.75680680260.08