ratio analysis on ftl

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Acknowledgement By the grace of Allah, the Almighty who enabled me to complete this very project by bestowing that zeal and commitment that was ever needed. I express my deepest gratitude to our Mr. Faisal Aziz, for his invaluable guidance and blessings. I am again appreciative to Mr. Faisal Aziz for providing me with an environment to complete my project successfully. I would like to thank my entire Supporter who supported to me during the entire course of this project work. The report entitled “RATIO ANALYSIS” is an outcome of hard work put in to the task assigned to me. I am student of MBA (Morning) were assigned an interesting yet constructive task. After that, we had to prepare Ratio analysis my selves, explain the Ratios and explore their marketing Position. Finally, I were asked to present the entire work in form of a report to convey what and how i accomplished the task and what I learnt from it. There has been a detailed research undertaken to put it to the form now available. This is only a compendium of facts, but only the area that we are considered were approached and explained in the easiest manner. 1

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Ratio's Analysis on Fateh Textile Pvt. Ltd analysis on threes years Ratos....

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Page 1: Ratio Analysis on FTL

Acknowledgement

By the grace of Allah, the Almighty who enabled me to complete this very project by bestowing that zeal and commitment that was ever needed.

I express my deepest gratitude to our Mr. Faisal Aziz, for his invaluable guidance and blessings. I am again appreciative to Mr. Faisal Aziz for providing me with an environment to complete my project successfully.

I would like to thank my entire Supporter who supported to me during the entire course of this project work.

The report entitled “RATIO ANALYSIS” is an outcome of hard work put in to the task assigned to me. I am student of MBA (Morning) were assigned an interesting yet constructive task. After that, we had to prepare Ratio analysis my selves, explain the Ratios and explore their marketing Position. Finally, I were asked to present the entire work in form of a report to convey what and how i accomplished the task and what I learnt from it.

There has been a detailed research undertaken to put it to the form now available. This is only a compendium of facts, but only the area that we are considered were approached and explained in the easiest manner.

I have tried to avoid any error but nevertheless, some may have occurred. Who would point out any mistake in this message or give any suggestion for the improvements in the next Report.

1

Page 2: Ratio Analysis on FTL

Company Information

Board of Directors:- Share Registrar:-Mr. Gohar Ullah Chairman M/s Progressive Management Services (Pvt.) Ltd.Mr. Asad Ullah Barkat 10th Floor, Mehdi Towers, A-115, S.M.C.H.S.Mr. Humayun Barkat Chief Executive Shahrah-e-Faisal, Karachi.Mr. Maqsood Ahmed Khan Tel: 021-34526983,Mr. Muhammad Saleem Fax: 021-34526985Mr. Muhammad Ayub NIT Nominee Email: [email protected]. Soofi Taj Muhammad Web: www.ftml.com.pk

Chief Financial Officer:-Mr. Muhammad Saleem

Company Secretary:-Mr. Muhammad Nadeem Aqeel

Audit Committee:-Mr. Gohar Ullah ChairmanMr. Maqsood Ahmed Khan MemberMr. Soofi Taj Muhammad Member

External Auditor:- M/s. Rahim Jan & Co.Chartered Accountants,Karachi.

Legal Advisor:-Ansari & Ansari, Advocates.

Bankers:- Allied Bank LimitedAskari Bank LimitedDeutsche BankHabib Bank LimitedMeezan Bank LimitedMetropolitan Bank LimitedMCB Bank LimitedNational Bank of Pakistan Standard Chartered Bank

Registered Office:-A/4, Hali Road, S.I.T.E., Hyderabad-Sindh.Phone No.: 022-3880463-66Fax No.: 022-3880042 & 514

Liaison Office:-114-A, S.M.C.H.S., Near Mehdi Tower,Shahra-e-Faisal, Karachi

Mills:-Hali Road S.I.T.E., Hyderabad-Sindh,Pakistan.

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Page 3: Ratio Analysis on FTL

Company’s Vision & Mission Statement

Vision

Fateh to be the first choice of customers in international

Textile market and to make the Fateh brand globally known

For quality products with innovative design capabilities.

Mission

To be a market leader in textile specially in bed wear items.

His mission is to exceed their customer’s expectations by

Reducing quality products employing state-of-art/latest

Technology, international best practices and an integrated

Approach to manufacturing technology, contributing to the

Economic growth of the nation by increasing exports and

Earning foreign exchange for our country.

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Page 4: Ratio Analysis on FTL

Balance Sheet Statement

Fateh Textile,Balance Sheet Statement,

For the year ended June, 2008-09-10 (Rs.)

2010 2009 2008Property & Assets

FIXED ASSETS – Tangible

Operating Fixed Assets 2,003,222,631 1,994,413,077 2,140,103,181 CAPITAL WORK IN PROGRESS 276,563,379 112,655,825 0

LONG TERM INVESTMENT 525,701,132 524,357,579 526,032,414

LONG TERM DEPOSIT 3,817,546 3,817,546 3,817,546

CURRENT ASSETS

Stores, Spares and loose Tools 29,488,600 29,368,562 30,127,609Stock-in-trade 1,303,098,761 1,761,621,326 2,125,628,131Trade Debts 5,655,316,029 4,949,818,505 3,848,163,811Advances, Deposits and Payments 35,778,121 40,525,638 51,861,477Other Receivables 230,822,111 190,906,763 155,281,029Cash and Bank Balances 13,412,062 11,005,163 12,598,265

7,267,915,683 6,983,245,958 6,223,660,322

Total Assets 10,077,220,370 9,619,589,985 8,893,613,464

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Page 5: Ratio Analysis on FTL

Balance Sheet Statement

2010 2009 2008CAPITAL & LIABILITIES

Share Capital & ReservesAuthorized Capital2,000,000 Ordinary Shares 20,000,000 20,000,000 20,000,000Of Rs. 10/= each

Issued, Subscribed and Paid up Capital 12,500,000 12,500,000 12,500,000General Reserve 1,481,000,000 1,481,000,000 1,481,000,000Investment Revaluation Reserve 1,763,733 420,180 2,095,014Unappropriated Profit Carried Forward 46,603,959 43,231,812 10,455,450

1,541,867,692 1,537,151,992 1,506,050,464

SURPLUS ON REVALUATIONOF FIXED ASSESTS 1,091,872,631 1,145,743,347 1,205,599,699

LOAN SUBORDINATE TOEQUITY 51,000,000 51,000,000 51,000,000

LONG TERM LOANS 1,235,000,000 1,235,000,000 1,390,786,692

LIABILITIES AGAINS ASSETSSUBJECT TO FINANCE LEASE 11,542,926 28,840,614 75,619,694

DEFERRED LIABILITIESGratuity and staff benefits 10,472,900 8,380,600 9,082,328Deferred Taxation 41,000,000 26,000,000 26,000,000

51,472,900 34,380,600 35,082,328

CURRENT LIABILITIES

Trade and Other payable 398,375,451 438,766,033 442,581,324Mark-up and Secured Finances 1,827,696,850 1,296,503,082 980,385,137Short Term Running Financing 3,152,781,660 3,153,938,733 2,708,582,466Current portion of long term liabilities 683,441,466 667,053,179 465,326,470Provision for Taxation 32,168,795 31,212,407 32,599,190

6,094,464,222 5,587,473,434 4,629,474,5875

Page 6: Ratio Analysis on FTL

Income StatementTotal Liabilities & Equities 10,077,220,370 9,619,589,985 8,893,613,464

Fateh Textile,Income Statement

For the year ended June, 2008-09-10 (Rs.)

2010 2009 2008

Sales 2,442,558,955 3,050,988,913 4,716,081,695

Less: Cost of Good Sold 2,423,990,825 2,971,848,461 4,272,302,110(2,423,990,825) (2,971,848,461) (4,272,302,110)

Gross Profit 18,568,130 79,140,452 443,779,585

Less: OPERATING EXPENSES Administration Expenses 60,216,029 61,659,552 60,112,331Selling Expenses 18,450,179 19,022,097 49,719,470

Total Operating Expenses (78,666,208) (80,681,649) (109,831,801)

Operating Loss/Income (60,098,078) (1,541,197) 333,947,784Other Income 655,745,201 504,247,664 113,287,516

Operating Profit 595,647,123 502,706,467 447,235,300

Less: Financial Expenses 561,196,888 428,825,845 390,108,507Other Charges 6,728,088 34,854,261 19,571,408Total Expenses (567,924,976) (463,680,106) (409,679,915)

Profit before Taxation 27,722,147 39,026,361 37,555,385

Less: Taxes 23,100,000 5,000,000 29,500,000

(23,100,000) (5,000,000) (29,500,000)

Profit after Taxation 4,622,147 34,026,361 8,055,385

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Page 7: Ratio Analysis on FTL

Financial Ratio AnalysisNet Income 4,622,147 34,026,361 8,055,385

Ratios Formula 2010 2009 2008 Industry Avg.

Cross Sectional

Liquidity 

Current ratioCurrent assets

Current liabilities1.19% 1.25% 1.34% 1.85% 1.55%

Quick (acid-test) ratioCurrent assets – Inventory

Current liabilities0.97 0.93 0.88 1.05 0.92

Activity

Inventory turnoverCost of goods sold

Inventory1.86 1.68 2.00 8.60 9.21

Average collection period

Accounts receivableAverage sales per day

845 Days

592.16 Days

297.83Days

35.5Days

36.9Days

Average payment period

Accounts payableAverage purchases per day

88.61 Days

65.69 Days

42.63Days

46.4Days

61.6Days

Total asset turnoverSales

Total assets0.24 0.31 0.53 0.74 0.80

Debt

Debt ratioTotal liabilities

Total assets0.84% 0.84% 0.83% 0.30% 0.20%

Times interest earned ratio

Earnings before interest and taxesInterest

1.06 1.17 1.14 8.0 7.3

Fixed-payment coverage ratio

Earnings before interest and taxes + Lease paymentsInterest – Lease Payments

1.13 1.48 1.78 4.2 4.2

Profitability

Gross profit marginGross profits

Sales0.76% 2.59% 9.4% 0.25% 0.27%

Operating profit marginOperating profits

Sales(2.46%) (0.05%) 7.08% 0.10% 0.12%

Net profit marginEarnings available for common stockholders

Sales0.19% 1.11% 0.17% 0.05% 0.062%

Earnings per share (EPS)

Earnings available for common stockholdersNumber of shares of common stock outstanding

3.70 27.22 6.44 1.50 2.20

Return on total assets (ROA)

Earnings available for common stockholdersTotal assets

0.04% 0.35% 0.09% 0.04% 0.05%

Return on common equity (ROE)

Earnings available for common stockholdersCommon stock equity

0.38% 2.21% 0.53% 0.06% 0.06%

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Page 8: Ratio Analysis on FTL

Graphical Representation Ratios

MarketsPrice/earnings (P/E)

ratioMarket price per share of common stock

Earnings per share30.54 4.15 17.52 11.2 10.5

Market/book (M/B) ratio

Market price per share of common stockBook value per share of common stock

11.3 11.3 11.3 1.16 1.08

8

2010

20092008

0.8

0.85

0.9

0.95

1

Ratios

1

Year

Quick Ratio

2010 2009 2008

2010

2009

2008

1.1

1.15

1.2

1.25

1.3

1.35

Ratios

1

Year

Current Ratio

2010 2009 2008

2010

2009

2008

0

0.5

1

1.5

2

2.5

Ratios

1

Year

Inventory Turnover

2010 2009 2008

2010

2009

2008

0

200

400

600

800

1000

Collection Days

1

Year

Average Collection Period

2010 2009 2008

2010

20092008

0

20

40

60

80

100

Payment Days

1

Year

Average Payment Period

2010 2009 2008

20102009

2008

00.10.20.30.40.50.6

Ratios

1

Year

Total Asset Turnover

2010 2009 2008

2010

2009

2008

0.820.8250.830.8350.840.8450.85

Ratios

1

Year

Debt Ratio

2010 2009 2008

2010

2009 2008

1

1.05

1.1

1.15

1.2

Ratios

1

Year

Time Interest Earned Ratio

2010 2009 2008

20102009

2008

0

0.5

1

1.5

2

Ratios

1

Year

Fixed Payment Coverage Ratio

2010 2009 2008

20102009

2008

0

2

4

6

8

10

Ratios

1

Year

Gross Profit Margin

2010 2009 2008

2010

2009

2008

-4-202468

Ratios

1

Year

Operating Profit Margin

2010 2009 2008

2010

2009

2008

00.20.40.60.81

1.2

Ratios

1

Year

Net Profit Margin

2010 2009 2008

Page 9: Ratio Analysis on FTL

Graphical Representation Ratios

9

2010

2009

2008

00.51

1.52

2.5

Ratios

1

Year

Return On Common Equity (ROE)

2010 2009 2008

2010

2009

2008

0

0.1

0.2

0.3

0.4

Ratios

1

Year

Return On Total Asset (ROA)

2010 2009 2008

2010

2009

2008

05101520253035

Ratios

1

Year

Price/Earnings (P/E) Ratio

2010 2009 2008

2010 2009

2008

0.09050.0910.09150.0920.09250.0930.09350.094

Ratios

1

Year

Market/Book (M/B) Ratio

2010 2009 2008

2010

2009

2008

051015202530

Ratios

1

Year

Earning Per Share (EPS)

2010 2009 2008

Page 10: Ratio Analysis on FTL

Time Series Interpretation

Liquidity Ratios:-Liquidity ratio, expresses a company's ability to repay short-term creditors out of its total cash. This is done by comparing a company's most liquid assets (or, those that can be easily converted to cash), its short-term liabilities. The ratios that we'll look at are the current, quick and cash ratios and we will also go over the cash conversion cycle, which goes into how the company turns its inventory into cash.

Current Ratio: The current Ratio of Fateh Textile is continuously declining. In the year 2008 it has a Current Ratio 1.34, in the year 2009 It has a decline of (0.09 %) and became 1.25 and in 2010 it has a declined again (0.06 %) and it become 1.19 this fall in Current Ratio is due to the recession and most of the textile mills faced decrease in Current Ratio due to the recession.

Quick Ratio: The quick Ratio increase from 0.88 to 0.93 and in the year 2010, it become 0.97 & this improvement is due to that in the recessionary phase it has used their money not in inventory but in another assets. Also due to economic crund in international market. They were getting less export orders therefore their stock in trade was less as compared to previous years.

Activity Ratios:-Companies will typically try to turn their production into cash or sales as fast as possible because this will generally lead to higher revenues.

Inventory Turnover: inventory turnover was 2.00 in 2008 and 1.68 in 2009.It has a decline of (0.32) and it become 1.86 and in 2010 it has a increase of 0.18 and it become 1.68. This increase is due to increasing price of raw material. Which increase its cost of sales.

Average Collection Period: Fateh Textile takes approximately 297.83 days in 2008 to convert its accounts receivables into cash. Like this gradually increase its accounts receivable convert into cash 592.16 days in 2009 and 845 days in 2010. If Compare this to their Terms of Net 180 days or 6 months. This means buyer payment duration is very slow rather than term & condition of account receivable. This company is not efficient on collection of payment.

Average Payment period: Fateh Textile payments period is very fast than collection period. The payment period of 2008 in 42.63 days, and increase payment time in 2009 in 65.69 Days thus again increase in payment timing in 2010 in 88.61 days payments timing continuously increasing during these years because of late receivable payments collecting. If company keep payment timing terms of net 30 Days then 2008 is very suitable year for payment.

Total Assets Turn Over: In 2008 the Total Asset turn over was 0.53, in 2009. It become 0.31 and in 2010 it has become 0.24 and this decrease in total assets turn over is due to that their sales are continuously. Decreasing and their assets are increasing in 2009 their sales were about 3.05 billion and total assets. Were 9.6 billion and in 2010 their sale decline and it become 2.44 billion and assets were increase and they. Become 10.077 billion.

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Page 11: Ratio Analysis on FTL

Time Series Interpretation

Debt Ratio:-The ratio measures how the company is leveraging its debt against the capital employed by its owners. If the liabilities exceed the net worth then in that case the creditors have more stake than the shareowners.

Debt Ratio: The total liabilities of the company are very much high as compared to the industry Avg. which is 40% i.e, 40% of assets are financed with liabilities and 60% are financed with equities in the year 2009 & 2010 their debt ratio was held. Constant i.e, 84% in both years. And in 2008 their debt ratio was 83% that are increase by 1% on next year and maintained its ratio.

Profitability:-Profitability Ratios show how successful a company is in terms of generating returns or profits on the Investment that it has made in the business. If a business is liquid and efficient it should also be Profitable.

Gross Profit Margin: The cost of goods sold is increasing day by day be the G.P Margin is decreasing every year in the year of 2008 their G.P Margin was 9.4% in 2009 it has a decline of (6.81%) and it because 2.59% and in 2010 it became 0.76% and decline with in (1.83%) because of some recession factors decreasing in continuously in profit.

Operating Profit Margin: The Operating Expense of the company are very high therefore, the operating of the company is in negative. The operating expense of the company in 2010 is less than the operating expense of 2009, but the gross profit of 2009 was very much higher than 2010. In 2008 operating profit was 7.08% and In 2009, they has operating loss of (1,541,197) i.e, operating margin (0.05%) and in 2010 their operating loss of (60,098,078) i.e, operating margin (2.46%).

Net Profit Margin: The firm’s operating Profit is in Negative in the year 2009 & 2010, but the firm operating income is positive and is 1.11% & 0.19% and it is due to other income the other income enable the firm to realize net profit. And its in 2008 net profit margin was 0.17%.

Earning per Share: Due to decrease in profits, their EPS also decline in the year. Their EPS was very good and it was Rs. 27.22 and in the year 2009 due to decrease in profits their EPS also decline.

Dupont Analysis:-DuPont analysis tells us that ROE is affected by three things: 1- Operating efficiency, which is measured by profit margin. 2- Asset use efficiency, which is measured by total asset turnover. 3- Financial leverage, which is measured by the equity multiplier.

Return on Total Asset (ROA): The earning available for common stock holders is decreasing year after year and the total assets are increasing. In the year 2009 the earning for common stock holders was Rs. 34,026,361 and their total assets were 9,619,589,985 therefore their ROA was 0.35% in 2010 their earning for common stock holders was Rs. 4,622,147 and in 2010, their total assets become 10,077,220,370 therefore their Total

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Page 12: Ratio Analysis on FTL

Cross-Sectional Interpretation

Asset were 0.046% declined by (0.31%) in 2009 and increased by 0.26% in 2009 by 2008. its mean 2009 is better for generates ROA its operation.

Retrun on common equity (ROE): The Company generates a 0.53% return on the capital invested by the owners of the company in 2008 and 2.21% in 2009. Which are increased by 1.68% than 2008 and then decreased in 1.83% in 2010 means 2010 capital invested was 0.38%.

Liquidity Ratios:-

Liquidity ratio is better of the company than the other Industry because of the company current ratio on 2010 was 1.19% and the cross-sectional analysis assumes the rate to be 1.85% that are increased by 0.66%. Although the quick ratio for 2010 was 0.97 and account to the cross sectional analysis. It must be 1.05 & it is due to the company invested a huge amount on their inventory.

Activity Ratio:-

The inventory turnover of the company is very poor than the cross-sectional turnover. And collection payment period is also not good than the cross-sectional. The credit history of the company is very poor they pay their creditors after about 88 Days which must be about 46 Days. The company sales are very must less as compared to their total asset. Their total asset turnover is 0.24 which must be 0.74.

Debt Ratio:-

Their total liabilities are very much high as compared to their total assets. Their debt ratio is very much poor the debt ratio is ought to be 0.3%. The time interest earn ratio of 2010 was 1.06 and the cross-sectional is 8.0 which shows that the company pays.

Profitability Ratio:-

The gross profit margin is very good which is 0.76 % which is ought to be 0.25 % this is due to their lower cost of production. The company Operating profit margin is ought to be 0.10 % but the company is bearing loss of (2.46 %) and this is due to their very high operating expense. The company net profit margin is 0.19 % the company becomes profitable after a loss of (2.46 %) in the operating profit margin due to the investment in other company and other financial instructs. All the income which it has got from investment distributed to its. Show holders to maintain Earning per share higher than the EPS prevailing in market which is 1.50. The company maintained their ROA due to EPS and their ROA is 0.04 which is a good sign. ROE since their number of shares are less and EPS are very high therefore their ROE is greater.

Market Ratio:-

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Page 13: Ratio Analysis on FTL

Industry Average Interpretation

The earning ratio is very high than the cross-sectional analysis ratio which is 30.54 of the company ratio and 11.2 is cross-sectional ratio. Their market ratio is very less which is 0.092 as compared with the cross-sectional analysis which is 1.16 because of high amount of General Reserve but no detail mention about the reserve.

Liquidity Ratio:-

The industry’s average current ratio is 1.55 % and the current ratio of the company is 1.19 % which is below the industry average and it is due to that their current liabilities are much more then the current liabilities of other company. Quick ratio of the company 0.97 and the quick ratio of industry is 0.92 which is a good sign shows that they are investing a small amount to their inventory.

Activity Ratio:-

The inventory turnover prevailing in the market is 9.21 but the ITO of the company is very bad which is 1.86Also their average payment period is very bad they pay their creditors almost in 88.61 Days and the industry’s average is 61.6 Days. The total asset turnover of the industry’s average is 0.80 and the total asset of the company 0.24 which shows that their sales are very much less than compared to the total asset.

Debt Ratio:-

The company Debt ratio is much high than the industry ratio because industry ratio is very better than the company. The time interest earn ratio of 2010 was 1.06 and the cross-sectional is 7.3 which shows that the company pays.

Profitability Ratio:-

The gross profit margin is very good which is 0.76 % which is ought to be 0.27 % this is due to their lower cost of production. The company Operating profit margin is ought to be 0.12 % but the company is bearing loss of (2.46 %) and this is due to their very high operating expense. The company net profit margin is 0.19 % the company becomes profitable after a loss of (2.46 %) in the operating profit margin due to the investment in other company and other financial instructs. All the income which it has got from investment distributed to its. Show holders to maintain Earning per share higher than the EPS prevailing in market which is 3.70. The company maintained their ROA due to EPS and their ROA is 0.05 which is a good sign. ROE since their number of shares are less and EPS are very high therefore their ROE is greater.

Market Ratio:-

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Page 14: Ratio Analysis on FTL

Recommendation

The earning ratio is very high than the industry Average ratio which is 30.54 of the company ratio and 10.5 is industry ratio. Their market ratio is very less which is 0.091 as compared with the industry average ratio which is 1.16 because of high amount of General Reserve but no detail mention about the reserve.

In my opinion, the financial position of the company is not good as compared to the other companies. The liquidity of the company is not good and their liquidity ratios are less then one the debt ratio are very poor. The company is technically default. Their operating profit margin is in negative and they are realizing profits by the investment in other company. Therefore it is not an investment friendly company, it is not able to pay all their debt by selling all their assets.

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Page 15: Ratio Analysis on FTL

Growth Rate

For Internal Growth Rate:

Internal Growth Rate = ROA x b ; Where b represent Retention = 1-Dividend payout 1-ROA x b ; = 1 - 0.15

; Where ROA = N.I/Total Asset

Internal Growth Rate of 2010:

Internal Growth Rate 2010 = 0.046 x 0.85 1 – 0.046 x 0.85

Internal Growth Rate 2010 = 0.0391 0.9609

Internal Growth Rate 2010 = 0.04 or 4 %

For Sustainable Growth Rate:

Sustainable Growth Rate = ROE x b ; Where b represent Retention =1-Dividend payout 1-ROE x b =1 – 0.15

; Where ROE = N.I/Total Equity

Sustainable Growth Rate of 2010:

Sustainable Growth Rate 2010= 0.387 x 0.85 1 – 0.387 x 0.85

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Page 16: Ratio Analysis on FTL

Pro forma Balance Sheet

Sustainable Growth Rate 2010= 0.3280.672

Sustainable Growth Rate 2010= 0.488 or 48.8 %

Fateh Textile,Pro forma Income Statement

For the year ended June, 2011 (Rs.)

2010 2011

Sales 2,442,558,955 2,467,961,568

Less: Cost of Good Sold 2,423,990,825 2,449,200,330(2,423,990,825) (2,449,200,330)

Gross Profit 18,568,130 18,761,239

Less: OPERATING EXPENSES Administration Expenses 60,216,029 60,842,276Selling Expenses 18,450,179 18,642,061Total Operating Expenses (78,666,208) (79,484,337)

Operating Loss/Income (60,098,078) (60,723,098)Other Income 655,745,201 662,564,951

Operating Profit 595,647,123 601,841,853

Less: Financial Expenses 561,196,888 567,033,336Other Charges 6,728,088 6,798,060Total Expenses (567,924,976) (573,831,396)

Profit before Taxation 27,722,147 28,010,457

Less: Taxes 23,100,000 23,340,240

(23,100,000) (23,340,240)

Profit after Taxation 4,622,147 4,670,217

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Page 17: Ratio Analysis on FTL

Pro forma Balance Sheet

Net Income 4,622,147 4,670,217

17