ibf project report kohinoor sugar mills ltd

Serial no.

Particulars Pages no.

1. Acknowledgement 52. Preface 8-93. Cross Sectional Analysis 11-294. Time Series Analysis 31-415. Graphical Representation 43-446. Common Size Statement 46-487. Internal and Sustainable

Growth Rate49

8. Performa Income Statement and Balance

Sheet

51-52

9. Plug Variable 5310. Conclusion 5411. Recommendations 55-56

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First of all I would like to thanks to the mighty ALLAH that he courage me to complete this project. Secondly I would like to thanks to my dear teacher Mr. Asif Nagi that he has assigned me to write this report. I have putted my best to complete this report. It is honor for me to write a final report

of Kohinoor Sugar Mills Ltd.

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About Student;

Name : Syed Owais AliID : SP07-BB-0135

Project Report on a Financial Statement

Analysis of a Company

Financial statement analysis:

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It is a set of four related accounting reports which shows the position and results of operations of an entity during a particular period of time.It includes;

Income statement Balance sheet Statement of cash flows Statement of retained earning

Types of Analysis;

1. Cross sectional analysis2. Time series analysis

Cross sectional analysis:

Financial results of the firm are compared with the result of industry.

Time series analysis:

Evaluation of the firm financial performance over time (using financial ratio analysis) is known as Time series analysis.

We do this analysis to;

Know the strengths and weakness Know the historical performance Know the current financial position of firm

About a company;

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The company which is being selected for this report is

Kohinoor Sugar Mills Ltd. FAROOQ AHMED is a company secretary. Its registered office is in 29 – G, GULBERG – II, LAHORE and mills are in JAUHARABAD,DISTRICT KHUSHAB.

STATEMENT OF ETHICS AND BUSINESS PRACTICE

Code of ethics is a pre-requisite for all directors and employees of Kohinoor Sugar Mills Limited. We endeavor to have fully groomed employees committed to carry out honestly activities assigned to them. Our aim is to have high standard of excellence for the products and for all those involved with our Company.

VISION STATEMENT

To become a market leader in the Industry setting out high quality standards for the Company and others to follow.

MISSION STATEMENT

To produce/manufacture quality sugar and molasses by maintaining a high standard of efficiency and staying competitive to ensure customer satisfaction and to provide a comfortable level of return to all stakeholders.

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Current Ratio:

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Current Ratio = Current Assets Current liabilities = 390,666,841 457,793,528Current Ratio = 0.85

Interpretation:

Current ratio measures a firm’s ability to meet its short term obligations.

Company’s Result:

In this company current ratio is 0.85. It means current assets are 0.85 times more than that of its current liabilities.

Company vs. Industry:

If we compare the result of this company with the result of industry, it is showing “negative result”, because current ratio of a company is ‘less than’ that of industry’s ratio.

Quick Ratio:

Quick Ratio = Current Assets – Inventory – Prepaid Expenses

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Current Liabilities = 390,666,841 – 218,956,788 – 369,790 457,793,528Quick Ratio = 0.374

Interpretation:

Quick Ratio measures the firm ability to meet its short term obligations.

Company’s Result:

In this company quick ratio is 0.374. It means quick assets are 0.374 times more than that of its current liabilities.


If we compare the result of this company with the result of industry, it is showing “negative result”, because quick ratio of a company is ‘less than’ that of industry’s ratio.

Cash Ratio:

Cash Ratio = Cash Current Liabilities = 9,553,415

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457,793,528Cash Ratio = 0.021

Interpretation:

Cash Ratio measures the firm ability to meet its short term obligations.

Company’s Result:

In this company cash ratio is 0.021. It means quick assets are 0.021 times more than that of its current liabilities.


If we compare the result of this company with the result of industry, it is showing “negative result”, because cash ratio of a company is ‘less than’ that of industry’s ratio.

Working Capital:

Working Capital = Current Assets – Current Liabilities = 390,666,841 – 457,793,528Working Capital = (67,126,687)

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Interpretation:

Working Capital measures the firm ability to meet its short term obligations.

Company’s Result:

In this company working capital is (67,126,687).


If we compare the result of this company with the result of industry, it is showing “negative result”, because working capital of a company is ‘less than’ that of industry’s ratio.

Debt Ratio:

Debt Ratio = Total Liabilities or Total Debts Total Assets = 884,122,802 1,238,530,181Debt Ratio = 0.714

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Interpretation:

Debt Ratio measures the firm ability to meet its long term obligations. The ratio shows the relationship between total liabilities and total assets.

Company’s Result:

In this company debt ratio is 0.714. It means that total liabilities of a company are 0.714 times of its total assets.


If we compare the result of this company with the result of industry, it is showing “negative result”, because debt ratio of a company is ‘more than’ that of industry’s debt ratio.

Debt to Equity Ratio:

Debt to Equity Ratio = Total Liabilities or Total Debts Total Shareholder’s Equity = 884,122,802 354,407,379Debt to Equity Ratio = 2.49

Interpretation:

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Debt to Equity Ratio measures the firm ability to meet its long term obligations. The ratio shows the relationship between total liabilities and total shareholder’s equity.

Company’s Result:

In this company debt to equity ratio is 2.49. It means that total liabilities are 2.49 times of total shareholder’s equity.


If we compare the result of this company with the result of industry, it is showing “negative result”, because company debt to equity ratio is ‘more than’ that of industry’s debt to equity ratio.

Time Interest Earned:

Time Interest Earned = Operating profit/EBIT Interest Expense = 86,517,309 39,414,193Time Interest Earned = 2.195 times

Interpretation:

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Time interest indicates that how many times a company can pay its interest expense from its operating profit.

Company’s Result:

In this company time interest earned is 2.195 times. It means that company can pay its interest expenses 2.195 times from its operating profit.


If we compare the result of this company with the result of industry, company is showing “negative result”, because time interest earned of a company is ‘less than’ that of industry’s time interest earned.

Account Receivable Turnover:

Account Receivable Turnover = Net Credit Sales Average Account Receivable = 913,370,379 18,490,064Account Receivable Turnover = 48.71 times

Interpretation:

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Account Receivable Turnover indicates that how many times a company converts its receivable into cash during a year.

Company’s Result:

In this company account receivable turnover is 48.71 times. It means that company converts its receivable into cash 48.71 times in a year.


If we compare the result of this company with the result of industry, company is showing “positive result” because company result is ‘greater than’ that of industry.

Average Collection Period:

Average Collection Period = 365 Account Receivable Turnover = 365 48.71Average Collection Period = 7.5 days

Interpretation:

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Average Collection Period indicates that in how many days a company converts its receivable into cash.

Company’s Result:

In this company average collection period is 7.5 days. It means that the company converts its receivable into cash after every 7.5 days.


If we compare the result of this company with the result of industry, company is showing “positive result” because company result is ‘less than’ that of industry.

Inventory Turnover:

Inventory turnover = Cost of Goods Sold Average Inventory = 775,729,109 218,956,788 Inventory Turnover = 3.54 days

Interpretation:

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Inventory turnover indicates that how many times a company converts its inventory into sales or cash.

Company’s Result:

In this company inventory turnover is 3.54 days. It means that a company converts its inventory into cash or sales in 3.54 days in a year.


If we compare the result of this company with the result of industry, company is showing “positive result” because company result is ‘less than’ that of industry.

Fixed Assets Turnover:

Fixed Assets Turnover = Net Sales Fixed Assets = 913,370,379 1,303,161,767Fixed Assets Turnover = 0.701 times

Interpretation:

It indicates that how many times revenue is generated from fixed assets of its own worth.

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Company’s Result:

In this company fixed asset turnover is 0.701 times. It means that fixed assets of a company generate revenue 0.701 times of its own worth.


If we compare the result of this company with the result of industry, company is showing “negative result” because company fixed asset turnover is ‘less than’ that of industry.

Total Assets Turnover:

Total Assets Turnover = Net Sales Total Assets = 913,370,379 1,238,530,181Total Assets Turnover = 0.737 times

Interpretation:

It indicates that how many times revenue is generated from total assets of its own worth.

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Company’s Result:

In this company total asset turnover is 0.737 times. It means that total assets of a company generate revenue 0.737 times of its own worth.


If we compare the result of this company with the result of industry, company is showing “negative result” because company total asset turnover is ‘less than’ that of industry.

Gross Profit Margin:

Gross Profit Margin = Gross Profit Net Sales = 137,641,270 913,370,379Gross Profit Margin = 15.1%

Interpretation:

Gross Profit Margin shows the relationship between gross profit and net sales. It is a percentage of gross profit based on net sales.

Company’s Result:

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In this company gross profit margin is 15.1%. It means a company generates 15.1% gross profit based on its net sales.


If we compare the result of this company with the result of industry, company is showing “negative result” because company gross profit margin is ‘less than’ that of industry.

Operating Profit Margin:

Operating Profit Margin = Operating Profit Net Sales = 86,517,309 913,370,379Operating Profit Margin = 9.4%

Interpretation:

Operating Profit Margin shows the relationship between operating profit and net sales. It is a percentage of operating profit based on net sales.

Company’s Result:

In this company operating profit margin is 9.4%. It means a company generates 9.4% operating profit based on its net sales.

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If we compare the result of this company with the result of industry, company is showing “negative result” because company operating profit margin is ‘less than’ that of industry.

Net Profit Margin:

Net Profit Margin = Net Profit Net Sales = 8,141,611 913,370,379Net Profit Margin = 0.89%

Interpretation:

Net Profit Margin shows the relationship between net profit and net sales. It is a percentage of net profit based on net sales.

Company’s Result:

In this company net profit margin is 0.89%. It means a company generates 0.89% net profit based on its net sales.


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If we compare the result of this company with the result of industry, company is showing “negative result” because company net profit margin is ‘less than’ that of industry.

Return on Assets:

Return on Assets = Net Profit Total Assets = 8,141,611 1,238,530,181Return on Assets = 0.6%

Interpretation:

Return on Assets shows the relationship between net profit and total assets. It is a percentage of net profit based on total assets.

Company’s Result:

In this company return on assets is 0.6%. It means a company generates 0.6% of net profit based on total assets.


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If we compare the result of this company with the result of industry, company is showing “negative result” because company return on asset is much ‘less than’ that of industry.

Return on Equity:

Return on Equity = Net Profit Total Shareholder’s Equity = 8,141,611 354,407,379Return on Equity = 1.45%

Interpretation:

Return on Equity shows the relationship between net profit and total shareholder’s equity. It is a percentage of net profit based on total shareholder’s equity.

Company’s Result:

In this company return on equity is 1.45%. It means a company generates 1.45% of net profit based on total shareholder’s equity.


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If we compare the result of this company with the result of industry, company is showing “negative result” because company return on equity is much ‘less than’ that of industry.

Earning per Share:

Earning per Share = Net Profit after Tax – Preferred Dividend No. of Equity Shares or Common Stocks = 8,141,611 - 0 9,486,780Earning per Share = 0.86

Explanation:

Earning per Share shows the earning generated by a single share of a company.

Company’s Result:

The Earning per Share of this company is 0.86, which means it is earning 0.86 by a single share.

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Dividend per Share:

Dividend per Share = Dividend paid to Common Stock Holders No. of Equity Shares = 14,080,315 9,486,780Dividend per Share = 1.48

Explanation:

Dividend per Share shows the dividend paid against every share.

Company’s Result:

Dividend per Share of this company is 1.48, which means a company paid 1.48 against every share.

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Ratios 2006 2005 2004Short Term Solvency Ratios

Current Ratio 0.853 1.082 0.777

Quick Ratio 0.236 0.550 0.341

Cash Ratio 0.021 0.014 0.004

Working Capital (67,126,687) 17,219,191 (65,722,452)

Long Term Solvency Ratios/Stability RatiosDebt Ratio 0.714 0.502 0.637

Debt to Equity Ratio 2.494 1.011 1.759

Time Interest Earned 2.195 1.043 1.743

Assets Utilization RatiosAccount Receivable

Turnover48.71 times 58.13 times 174.8 times

Average Collection Period

7.5 days 6.27 days 2.1 days

Inventory Turnover 3.54 days 10.8 days 7.49 days

Fixed Assets Turnover 0.701 times 1.233 times 1.219 times

Total Assets Turnover 0.737 times 1.202 times 1.341 times

Profitability RatiosGross Profit Margin 15.1% 15.8% 12.1%

Operating Profit Margin 9.4% 10.8% 7.3%

Net Profit Margin 0.89% 6.3% 3.5%

Return on Assets 0.6% 7.6% 4.7%

Return on Equity 1.4% 15.3% 13.0%

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Explanation and Comparison of Ratios of 2004, 2005 and 2006

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Current Ratio:

Explanation:

Current ratio measures a firm’s ability to meet its short term obligations.

Comparison:

In 2004 company current ratio is 0.777, in 2005 it become 1.082 and in 2006 it is 0.853, as the current ratio is increasing in 2005 but it is decreasing in 2006 therefore it is not good for a company.

Quick Ratio:

Explanation:

Quick Ratio measures the firm ability to meet its short term obligations.

Comparison:

In 2004 company quick ratio is 0.341, in 2005 it become 0.550 and in 2006 it is 0.236, as the quick ratio is increasing in 2005 but it is decreasing in 2006 therefore it is not good for a company.

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Cash Ratio:

Explanation:

Cash Ratio measures the firm ability to meet its short term obligations.

Comparison:

In 2004 company cash ratio is 0.004, in 2005 it become 0.014 and in 2006 it is 0.021, as the cash ratio is increasing in 2005 and also in 2006 therefore it is good for a company.

Working Capital:

Explanation:

Working Capital measures the firm ability to meet its short term obligations.

Comparison:

In 2004 company working capital is (65,722,452), in 2005 it become 17,219,191 and in 2006 it is (67,126,687), as the working capital is increasing in 2005 but again it is decreasing in 2006 therefore it is not good for a company.

Debt Ratio:

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Explanation:

Debt Ratio measures the firm ability to meet its long term obligations. The ratio shows the relationship between total liabilities and total assets.

Comparison:

In 2004 company debt ratio is 0.637, in 2005 it become 0.502 and in 2006 it is 0.714, as the debt ratio is decreasing in 2005 but it is increasing in 2006 therefore it is not good for a company.

Debt to Equity Ratio:

Explanation:

Debt to Equity Ratio measures the firm ability to meet its long term obligations. The ratio shows the relationship between total liabilities and total shareholder’s equity.

Comparison:

In 2004 company debt to equity ratio is 1.759, in 2005 it become 1.011 and in 2006 it is 2.494, as the debt to equity ratio is decreasing in 2005 but it is increasing in 2006 therefore it is not good for a company.

Time Interest Earned:

Explanation:

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Time interest indicates that how many times a company can pay its interest expense from its operating profit.

Comparison:

In 2004 company time interest earned is 1.743, in 2005 it become 1.043 and in 2006 it is 2.195, as the time interest earned is decreasing in 2005 but it is increasing in 2006 and it is good for a company.

Account Receivable Turnover:

Explanation:

Account Receivable Turnover indicates that how many times a company converts its receivable into cash during a year.

Comparison:

In 2004 company account receivable turnover is 174.8 times, in 2005 it become 58.13 times and in 2006 it is 48.71 times, as the account receivable turnover is decreasing in 2005 and also in 2006 therefore it is not good for a company.

Average Collection Period:

Explanation:

Average Collection Period indicates that in how many days a company converts its receivable into cash.

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Comparison:

In 2004 company average collection period is 2.1 days, in 2005 it become 6.27 days and in 2006 it is 7.5 days, as the average collection period is increasing in 2005 and also in 2006 therefore it is not good for a company.

Inventory Turnover:

Explanation:

Inventory turnover indicates that how many times a company converts its inventory into sales or cash.

Comparison:

In 2004 company inventory turnover is 7.49 days, in 2005 it become 10.8 days and in 2006 it is 3.54 days, as the inventory turnover is increasing in 2005 but it is decreasing in 2006 therefore it is not good for a company.

Fixed Assets Turnover:Explanation:

It indicates that how many times revenue is generated from fixed assets of its own worth.

Comparison:

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In 2004 company fixed assets turnover is 1.219 times, in 2005 it become 1.233 times and in 2006 it is 0.701 times, as the fixed assets turnover is increasing in 2005 but it is decreasing in 2006 therefore it is not good for a company.

Total Assets Turnover:Explanation:

It indicates that how many times revenue is generated from total assets of its own worth.

Comparison:

In 2004 company total assets turnover is 1.341 times, in 2005 it become 1.202 times and in 2006 it is 0.737 times, as the total assets turnover is decreasing in 2005 and in 2006 therefore it is not good for a company.

Gross Profit Margin:Explanation:

Gross Profit Margin shows the relationship between gross profit and net sales. It is a percentage of gross profit based on net sales.

Comparison:

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In 2004 company gross profit margin is 12.1%, in 2005 it become 15.8% and in 2006 it is 15.1%, as the gross profit margin is increasing in 2005 but it is decreasing in 2006 therefore it is not good for a company.

Operating Profit Margin:Explanation:

Operating Profit Margin shows the relationship between operating profit and net sales. It is a percentage of operating profit based on net sales.

Comparison:

In 2004 company operating profit margin is 7.3%, in 2005 it become 10.8% and in 2006 it is 9.4%, as the operating profit margin is increasing in 2005 but it is decreasing in 2006 therefore it is not good for a company.

Net Profit Margin:Explanation:

Net Profit Margin shows the relationship between net profit and net sales. It is a percentage of net profit based on net sales.

Comparison:

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In 2004 company net profit margin is 3.5%, in 2005 it become 6.3% and in 2006 it is 0.89%, as the net profit margin is increasing in 2005 but it is decreasing in 2006 therefore it is not good for a company.

Return on Assets:

Explanation:

Return on Assets shows the relationship between net profit and total assets. It is a percentage of net profit based on total assets.

Comparison:

In 2004 company return on assets is 4.7%, in 2005 it become 7.6% and in 2006 it is 0.6%, as the return on assets is increasing in 2005 but it is decreasing in 2006 therefore it is not good for a company.

Return on equity:

Explanation:

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Return on Equity shows the relationship between net profit and total shareholder’s equity. It is a percentage of net profit based on total shareholder’s equity.

Comparison:

In 2004 company return on equity is 13.0%, in 2005 it become 15.3% and in 2006 it is 1.4%, as the return on equity is increasing in 2005 but it is decreasing in 2006 therefore it is not good for a company.

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Cross Sectional Graphical

Representation

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By seeing overall results of 2004, 2005 and 2006, in cross sectional analysis, company performance is better in 2005 then 2004 and 2006.

Time Series Graphical Representation

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By seeing overall results of 2004, 2005 and 2006, in time series analysis, company performance is better in 2005 then 2004 and 2006.

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Kohinoor Sugar Mills Ltd.Common Size Income Statement

For the year ended September 30, 2006

2006 Percentage 2005 Percentage

SALES 913,370,379 100% 852,372,071 100%

COST OF SALES 775,729,109 84.9% 717,170,556 84.1%

GROSS PROFIT 137,641,270 15.1% 135,201, 515 15.9%

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OPERATING EXPENSES

Selling and Distribution cost 1,901,689 0.21% 1,656,656 0.2%

Administrative Expense 49,222,272 5.4% 40,712,566 4.7%

51,123,961 5.6% 42,369,222 4.9%

OPERATING PROFIT 86,517,309 9.5% 92,832,293 10.9%

FINANCE COST 51,801,936 5.7% 20,816,861 2.4%

OTHER INCOME/(EXPENSES) 4,698,820 0.51% 17,001,821 1.2%

39,414,193 4.3% 89,017,253 10.4%

WORKER’S PROFIT PARTICIPATION FUND

1,735,769 0.2% 4,238,917 0.5%

WORKER’S WELFARE FUND 738,793 0.1% -

PROFIT BEFORE TAXATION 36,936,631 4.0% 84,778,336 9.9%

PROVISION FOR TAXATION

Current 4,580,109 0.5% 13,612,568 1.6%

Deferred 24,217,911 2.6% 17,084,060 2.0%

28,798,020 3.2% 30,696,628 3.6%

PROFIT AFTER TAXATION 8,141,611 0.9% 54,081,708 6.3%

Kohinoor Sugar Mills Ltd.Common Size Balance Sheet


2006 Percentage 2005 PercentageFIXED ASSETSProperty, plant and equipment 894,236,931 72.2% 644,351.583 90.8%Capital work in progress 408,924,836 33.0% 46,634,018 6.5%

1,303,161,767 105.2% 690,985,601 97.4%LONG TERM DEPOSITS 2,495,101 0.2% 1,140,301 0.2%CURRENT ASSETSStores, spare parts and loose tools

84,466,516 6.8% 90,623,529 12.8%

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Stock in trade 218,956,788 17.7% 66,437,296 9.4%Trade Debts 4,168,000 0.3% - -Loans and Advance 33,899,374 2.7% 26,669,845 3.8%Short Term Deposits and Prepayments

369,790 0.03% 3,839,179 0.5%

Other Receivables 14,581,064 1.2% 14,662,764 2.1%Taxation 24,671,894 1.2% 22,031,178 3.1%Cash and Bank Balance 9,553,415 0.8% 2,909,458 0.4%

390,666,841 31.5% 227,173,249 32.0%CURRENT LIABILITIESTrade and Other Payables 71,639,821 5.7% 46,598,878 6.6%Accrued Mark-Up 23,025,566 1.9% 5,412,193 0.8%Short term borrowings-Secured 294,697,100 23.8% 112,112,231 15.8%Current portion of long term liabilities

63,850,932 5.2% 41,555,667 5.8%

Provision for Taxation 4,580,109 0.4% 4,275,089 0.6% 457,793,528 36.9% 209,954,058 29.6%

CURRENT ASSETS LESS CURRENT LIABILITIES

(67,126,687) (5.4%) 17,219,191 2.4%

TOTAL ASSETS LESS CURRENT LIABILITIES

1,238,530,181 100% 709,345,093 100%

CONTINGENCIES AND COMMITMENTS

- - - -

NON CURRENT LIABILITIES

Long Term Finances-Secured 326,317,346 42.4% 101,206,852 18.6%Liabilities against Assets subject to finance lease

12,049,439 1.2% 3,681,601 0.7%

Other loan-Unsecured 87,962,489 11.4% 41,816,509 7.7% 426,329,274 55.4% 146,704,962 26.9%

DEFERRED TAXATION 41,301,971 5.4% 17,084,060 3.1%OTHER LIABILITIES 1,309,000 0.2% 1,309,000 0.2%NET ASSETS 769,589,936 100% 544,247,071 100%REPRESENTED BY:Share Capital 94,867,800 12.3% 94,867,800 17.4%Capital Reserve-premium on 41,109,380 5.3% 41,109,380 7.6%

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right sharesRevenue ReserveGeneral Reserve 62,000,000 8.1% 62,000,000 11.4%Inappropriate profit 5,924,900 0.7% 12,013,459 2.2%

67,924,900 8.8% 74,013,459 13.6%TOTAL CAPITAL AND RESERVES

203,902,080 26.5% 209,990,639 38.6%

SUSPLUS ON REVALUATION OF LAND

565,687,856 73.5% 334,256,432 61.4%

769,589,936 100% 544,247,071 100%

Internal and Sustainable Growth

RateFirst we have to find Payout Rate and Retention Ratio;

Payout Rate: Payout ratio = Dividend paid x 100

Net profit after tax

= 14,080,315 x100 36,939,631

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Payout ratio = 38.1%

Retention Ratio: Retention ratio (b) = 1 - Payout ratio

= 1 – 0.38Retention ratio (b) = 0.62

Retention ratio indicates percentage change of net profit after tax retained by company. The retention ratio of company is 96%.

Internal Growth Rate:

Internal growth rate = Return on assets (ROA) x b 1 – (ROA) x b

= 0.006 (0.62) x 100 1 – (0.006 x 0.62)

= 0.0037 x 100 Internal growth rate = 0.37%

Sustainable Growth Rate:

Sustainable growth rate = Return on equity x (b) x 100 1 – (ROE x b) = 0.014 (0.62) x 100 1 – (0.014x0.62) = 0.0087x100

Sustainable growth rate = 0.87%

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Performa Income Statement and Balance Sheet

Kohinoor Sugar Mills Ltd.Performa Income Statement


PARTICULARS AMOUNT

Sales (913,370,379x0.89) 812,899,637Cost of Sales ((75,729,109)x0.89) (690,398,907) GROSS PROFIT (137,641,270x0.89) 122,500,730OPERATING EXPENSESSelling and Distribution cost (1,901,689x0.89) 1,692,503Administrative Expenses (49,222,272x0.89) 43,807,822

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(51,123,961x0.89) 45,500,325 OPERATING PROFIT (86,517,309x0.89) 77,000,405Finance Cost (51,801,936x0.89) 46,103,723Other Income/(Expenses) (4,698,820x0.89) 4,181,950 (39,414,193x0.89) 35,078,632Workers’ Profit Participation Fund (1,735,769x0.89) 1,544,834Workers’ Welfare Fund (738,793x0.89) 657,526 PROFIT BEFORE TAXATATION (36,939,631x0.89) 32,876,272Provision for Taxation Current (4,580,109x0.89) 4,076,297 Deferred (24,217,911x0.89) 21,553,941 (28,798,020x089) 25,630,237 PROFIT AFTER TAXATATION (8,141,611x0.89) 7,246,034

Kohinoor Sugar Mills Ltd.Performa Balance Sheet

For the year ended September 30, 2006In Balance Sheet we multiply each with 0.89

Assets Equities and Liabilities

FIXED ASSETS SHARE CAPITAL and RESERVE

Property, plant and equipment 795,870,869 Share Capital 84,432,342Capital work in Progress 363,943,104 Capital reserves-premium on

right shares36,587,348

1,159,813,973 REVENUE RESERVE

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General Reserve 55,180,000In appropriated Profit 5,273,161

TOTAL CAPITAL and RESERVE

60,453,161

CURRENT ASSETS CURRENT LIABILITIESStores, spare parts and loose tools 75,175,199 Trade and other payables 63,759,441Stock in trade 194,871,541 Accrued mark-up 20,492,754Trade debts 3,709,520 Short term borrowings-Secured 262,280,419Loans and Advance 30,170,443 Current portion of long term

liabilities56,827,330

Short term deposits and Prepayments

329,113 Provision for Taxation 4,076,297

Other receivables 12,977,147 TOTAL 407,436,240Taxation 21,957,986Cash and Bank balances 8,502,539TOTAL 347,693,489

NON CURRENT LIABILITIESLong term finances-Secured 290,422,438Liabilities against assets subject to finance lease

107,240,001

Other loan-Secured 78,286,615TOTAL 379,433,054

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The company performance is good in 2005 but it is not as better in 2004 and in 2006. Comparing the data of industry with a company, company ratios are mostly in negative which is showing that company is not in good reputation. But company account receivable turnover is greater than that of company and also the average collection period of company is good than of industry.

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By seeing overall performance of a company is in good position in 2005, company should maintain its Current Ratio so that it can become able to meet its short term obligations, company should pay its liabilities in proper way so it can maintain its Debt Ratio. Company should decrease the average inventory so that it can maintain its Inventory Turnover; company should increase its net sales by taking good steps so that it can make more Revenue from its total assets.

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Considering these things the company can be able to maintain a good level.

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ibf project report kohinoor sugar mills ltd

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