appentix-ctml 2003
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COLONY TEXTILE MILL
MULTAN
G R O U P n o 3
M B A 2 nd N U M L
I F R E Y A Q O O B
I Q R A A M J A D
A N U M R A E E S
SUBMITEED TO: -
SIR RAO AKMAL ALI
analysis REPORT
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ACKNOWLEDGEMENT:
I express my whole hearted thanks to Almighty
ALLAH…
I feel utmost pride in acknowledging with sincere
gratitude for the valuable guidance I have received
from my respected teacher Sir. Rao Akmal Ali who
has been a constant source of enthusiastic
encouragement throughout my study. Due to his
guidance I would be able to complete this report. His
advice, criticism and remarks are of most value to
me.
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CONTENTS:
Company information 5-7
Vision 8
Mission Statement 8
Nature of the company 9
Human Resource Department 10
Composition of company equity 11-12
Debt Structure and the source of external financing 13
Summaries the company financial operations 14-15
Total Asset and Labilités ratios 16
Ratio analysis 17-19
Conclusion 20
Questionnaire 21
Formula Sheet 22
Formulas Used 23-24
Visit details 25
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COMPANY INFORMATION:
Board of directors: Mr.Fareed M.Sheikh
Mr.M.Akram Qureshi
Mr.M.Azam Barki
Mr.Malik Sohail Ahmed
Mr.Bilal Ahmed Khan Niazi
Mr.M Farooq
Mr.Syed Arif Hussain
Company Secretary:
Mr.M Abid
Board Committees:
Audit Committees: Mr.M Akram Qureshi (Chairman)
Mr.Malik Suhail Ahmed (Member)
Mr.Syed Arif Hussain (Member)
Executive Committee:
Mr.Fareed M.Sheikh (Chairman)
Mr.M.Azam Barki (Member)
Mr.Bilal Ahmed Khan (Member)
Ch. Financial Officer:
Mr.Mahboob Ahmed
Head of Internal Audit:
Mr. Najeeb ullah Khan
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Other Management Committee
Technical Committee:
Mr.Fareed M. Sheikh (Chairman)
Mr.Gulzar Ahmed (Technical Director Unit 2&5)
Mr.Salman Saif (G.M Unit 1)
Mr.M.Amin Shahid (G.M Unit 3)
Mr.Rashid Akhtar Malik (G.M Unit 4)
Mr.M. Tariq Sheikh (G.M Unit 6)
Finance committee:
Mr.Fareed M sheikh (Chairman)
Mr. Mahboob Ahmed (Chief Financial Officer)
Mr.Atta Mohyuddin Khan (Manager Accounts)
Mr.M.Faisal Naseem (Manager Finance)
H.R Committee:
Mr Fareed M.Sheikh (Chairman)
Mr.M Atta Ullah khan Niazi (Director H.R)
Mr.Abdul Hakeem Khan (Manager H.R)
Bankers:
Faisal Bank ltd
Habib Bank ltd
KASB Bank ltd
Meezan Bank ltd
National Bank Of Pakistan
Soneri Bank ltd
Standard Chartered Bank
Silk Bank ltd
The Bank of Punjab
United Bank ltd
Arif Habib Bank ltd
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Auditors:
Naveed Zafar Hussain Jaffery & co.
Chartered Accountants
Legal Advisors:
Imran Anjum Alvi (Advocate)
Imtiaz Saddique & Associates
Advocates & Solicitors
Corporate and Head office:
M Ismail Aiwan-i-Science Building
Shahrah-i-Jalaluddin-Roomi
(Ferozepur Road) Lahore-54600
Phone: 042-35758970-2
Fax: 042-35763247
Production Facility:
(Unit # 1-7, 186,576 Spindles & 2880 Rotors)
Ismailabad (Multan)
Phone: 061-6539021-3
Fax: 061-6539509
UAN: 111-265-669
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Vision statement
To be the largest Pakistani yarn supplier, fully equipped to cater
to all needs of ever evolving global markets. To explore and
create growth opportunities to maximize return to all stake
holders.
Mission statement
To take the company to a new height where it is rated as the
best in all spheres of business and everyone concerned feels
proud of being its integral part.
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Nature of the Organization:
The Colony Textile Mill is related to corporate sector and its core business is toproduce and supply of spun yarn to local and international customers’ with bestquantity standards and efficient services. Their employment and HR policesdeveloped individuals without race, religion, gender or any discriminationfactor. They provide equal opportunities to all the employees under a teambased working environment.
They believe in community development. They contribute their resources, bothfinancial and ethical in supporting all the deserving individuals of the society.Their rash management policies are geared to enhance shareholders worth,improve credit worthiness and minimize credit risk while diversifying income,along with suppliers and customer base.
They are as a responsible corporate citizen strongly adheres to the corporategovernance principles and comply with the regulatory obligations enforced byregulatory agencies foot improving corporate performance. There aremarketing polices are customer focused. They believe in One Window Solutionand customer satisfaction. Their marketing policy is only based on these twoparameters and to achieve this. They ensure best quality and efficient
response to the customers.
Main Departments:
The departments which are efficiently used in the colony textile mill are asfollows:
Human resource department
Marketing department
Finance department
Accounts department
Admin department
Production department
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Human Resource Department
Alongside the development of its physical facilities, CTML is deeply conscious of the pivotal role
that human resources play in the success of an organization. As a matter of fact, human resource
development has been identified as an area of key importance. While strengthening the ranks of itswork force with quality professionals at various levels of management, the company also undertakes
several initiatives for improving productivity and efficiency at all levels of services. Through
computer training, various courses, sponsorships of staff for studies at professional institutions and
seminars, the company is providing its employees on going opportunities for continuous self-
improvement and learning.
Recruitment:-
Their recruitment process is to collect CVs firstly than chose specific number of CVs. Next step is to
conduct preliminary interview of the applicants than written test. After this there is background
investigation of the applicants.
Selection:-
Their selection criteria are different according to different job specifications.
Training:-
There are special training programs those are indoor and outdoor both. Those training enhance the
skills n knowledge of the employees.
Compensation:-
They are fully compensating their employees and give them rewards in different shapes. They provide
services of accommodation and 1400 houses are adjacent to the mill.
There is also education facility for the children of employees. The school building is also in the
boundary of the mill. There are also medical services working for the betterment of the employees so
that they can give maximum productivity.
Career management:-
In the colony textile mills there are high growth opportunities for the employees. The CTML gives
importance to their employees as much as they are focusing on customers. Because they know that if
employees are satisfied they give their maximum output. The promotion of employees is based on
their performance.
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Composition of company equity
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Debt Structure and the source of
external financing
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NON CURRENT LIABILITIES
Loan from related paritiLiabilities against asset
Long term financing
other
STOCK HOLDER EQUITY
Issued Capital
Capital Reserveunappreciated profit
Surplus on Fix Asset
COLONY M ILLS LTD.
Income Statement
sales
Cost of Goods soldGross profit
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Total assets and liabilities
1%
11%
8%
18%
3%3%
37%
2% 6%
0%11%
Current Assets
Cash & Bank Balance
Short Term Investment
Trade Debts
Other Receivable
Stores & Spares
27%
0%2%
29%
2%
31%
1%
8%
0%
Current Liabilities
Creditor
Bills Payable
Advance payments
Other
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Ratio analysis
Colony Mills Limited
Profitability Ratios
Operating profit margin
Np margin
ROCE
Operating asset turoverAsset turnover
Colony Mills Limited
Current ratio
Quick ratio
Colony Mills Limited
Activity ratio
Receivable turnover (times)
Receivable days (days)
Inventory turnover (times)
Inventory days (days)Operating cycle (days)
Payable turnover (times)
Payable days (days)
Colony Mills Limited
Total debt to equity
Interest coverage
Colony Mills Limited
Basic EPS
Mrket Price per sharePrice/Earning Ratio 17
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0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%14.00%
16.00%
2008 2007 2006
P e r c e n t a g e
Years
Profitability ratios
Gp Margin
Operating profit margin
Np margin
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
2008 2007 2006
T i m e s
Years
Liquidity Ratios
Current ratio
Quick ratio
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0.00
50.00
100.00
150.00
200.00
250.00
300.00
2008 2007 2006
D a y s / t i m e s
Years
Activity RatiosReceivable turnover(times)
Receivable days (days)
Inventory turnover(times)
Inventory days (days)
Operatingcycle (days)
Payable turnover (times)
-
0.50
1.00
1.50
2.00
2.50
3.00
3.50
2008 2007 2006
T i m e s
Years
Solvency Ratios
Total debt to equity
Interest coverage
-
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
2008 2007 2006
R s / t i m e s
Years
Investor's Ratios
Basic EPS
Mrket Price per share
Price/Earning Ratio
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CONCLUSION
From the above analysis it is conclude that the company’s gross profit
margin in 2007 is 12.76% and in 2008 it is 14.16%. It’s clearly shows that
there is increasing trend in company profits. As well as the profit increase
the new investment is also increases that’s why the net profit margin is
almost same or decreasing. Their payables also decrease from previous
year. The overall view is the colony textile mill is going on profit
satisfying its shareholders. Its solvency ratio is on decreasing from 2007.
QUESTIONNAIRE
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I shall be thankful if you provide me a brief introduction of the company.
The Colony Group is one of Pakistan's oldest and the most revered business groups. The Group has grown phenomenally
and has become a leading player in all the sectors in which it operates. Colony Mills Limited is a Colony Group’s
company. The Company is principally engaged in the manufacturing of yarn.
What is the strategic goal of the company?
To excel in delivering highest standards quality yarn to customers in the local and international markets as per their
customized needs. And to provide quality yarn to customers and expand sales through good governance, explore new
markets, quality control by developing a team for sustainable and equitable growth with a concept of”one window
solution”
What is the importance of manufacturing sector in Pakistan?
Manufacturing Industry sector has a good impact economy of Pakistan. This is most growing industry of Pakistan. This
sector contributes a major portion to our export and also the total Gross Domestic Product (GDP). This sector gives great
employment to our population.
What are the future ventures of the company?
A state-of-the-art Open-End Spinning production facility is under construction. It will be the first of its kind facility in the
country, with 2,880 rotors capable of producing 15,000 Metric Tons of yarn annually, including slub yarns.
What has been the profitability of the company in comparison to its competitor?
By taking a glance of the profitability of one of the competitor it can be seen that the profitability of Colony Mills is much
better than its competitor. The gross profits of the Colony are high due to effective utilization of plant and labor force by
the management of the company.
What has been the liquidity position of the company in comparison to its competitor?
Colony Textile mills ltd’s current ratio is decreasing from 2005 to 2008. It shows that co has poor short term debt paying
ability. From the analysis of the liquidity position of the competitor of the Colony Mills it can be seen that the liquidity
position of the Company is much stronger than its competitor.
What has been the long term solvency position of the company in comparison to its competitor?
The lower the debt equity ratio that is preferable. This ratio decreases from year 2005 to 2007 but it improves/increases in
2008. By taking a glance of the solvency position of the competitor of Colony mills it can be seen that Colony mills is
more levered than its competitor which increases the risks of company but the return of Colony is also higher than its
competitor.
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FORMULA SHEET:
Colony M ills Lim ited
P ro f itab ility Rat io s
G p M arginO peratin g pro f it m argin
N p m argin
ROCE
O peratin g asset turo ver
A sset turn o ver
Colony M ills Lim ited
Cu rren t rat io
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FORMULAS USED:
1. Growth Trend
2. Gross Profit Margin
3. Return on Capital Employed
4. Net Profit
5. Return on Equity
6. Receivable Turnover Period
7. Inventory Turnover Period
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8. Asset Turnover
9. Current Ratio
10. Quick Ratio
11. Interest Cover
12. Earnings Per Share
13. Price to Earnings Ratio
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VISIT DETAILS
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