LUCKY CEMENT

Final Project Report on:

Financial Statement Analysis

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 Table of Contents

1.ANALYSIS TO FINANCIAL STATEMENT

Company Information
Cement Sector
Strong Prices
Falling Coal Prices
Government Spending
Company: Lucky Cement Ltd.

2. ANALYSIS OF BALANCE SHEET

Types Of Analysis
Horizontal Analysis (In Amount)
Horizontal Analysis (In Percentage)
Vertical Analysis (In Percentage)
Analysis of Profit or Loss

3.FINANCIAL PERFORMANCE ANALYSIS

Ratio Analysis with Graphs
Liquidity Analysis
Asset Ratios
Profitability Analysis
Debt Equity Analysis

4. COMMENTS

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 ANALYSIS TO FINANCIAL STATEMENT

COMPANY INFORMATION & PROFILE

BOARD OF DIRECTORS

Muhammad Yunus Tabba –Chairman

Mariam Tabba Khan

Muhammad Ali Tabba Manzoor Ahmed

Muhammad Sohail Tabba

Mohammad Javed Iqbal

Jawed Yunus Tabba

MANAGEMENT TEAM

Chief Executive Officer Muhammad Ali Tabba

Executive Director Noman Hasan

Director Finance & Chief Financial Officer Irfan Chawala

Chief Operating Officer Amin Ganny

Chief Operating Officer - International Businesses Adnan Ahmed

Company Secretary Faisal Mahmood

REGISTERED OFFICE

Main Indus Highway, Pezu, District Lakki Marwat, Khyber Pakhtunkhwa,

Pakistan

HEAD OFFICE

6-A, Muhammad Ali Housing Society, A.Aziz Hashim Tabba Street, Karachi –
75350

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UAN: (021) 111-786-555

Website: www.lucky-cement.com

Email: info@lucky-cement.com

PRODUCTION FACILITIES SHARE REGISTRAR/TRANSFER AGENT

1. Main Indus Highway, Pezu, District Lakki Marwat, Khyber Pakhtunkhwa
Pakistan
2. 58 Kilometers on Main Super Highway, Gadap Town, Main Shahra-e-Faisal,
Karachi, Pakistan
SHARE REGISTRAR/TRANSFER AGENT
Central Depository Company of Pakistan Limited, CDC House, 99-B, Block-B,
S.M.C.H.S
Karachi, Pakistan (Toll Free): 0800 23275
Cement Sector
Pakistan Cement sector has been one of the leading performing segments
throughout 2017-2018. Underneath are a few of the noteworthy reasons for this
dynamic development.
Strong Prices
Solid estimating within the residential showcase has been the driving figure the
sector’s wages turnaround. After a bounce of 19% in FY17, cement costs
enhanced by an advance of 7% in FY18, averaging PKR 442/bag in FY18.
Falling Coal Prices
Cement division has been the major recipient of falling coal prices in FY17,
which found the middle value of around USD 85/ton in FY18, a huge 20% drop.
Government Spending
Solid framework investing due to the coming of races brought about in most
noteworthy ever residential request of 24mn tons in FY17, a 9% YoY
increment, which is anticipated to hop by another 6% YoY in FY18, 24mn tons
in FY17, a 9% YoY increment, which is anticipated to hop by another 6% YoY
in FY18.

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Company: Lucky Cement Ltd.
Lucky cement Fortunate concrete restricted is Pakistan's greatest creator and
driving exporter of value bond with the age limit of 7.75 million tons for every
annum. The organization is recorded on Karachi, Lahore, Islamabad and
London Stock Exchanges. Over quite a while, the Company has grown
extensively and is expanding its business tasks with age workplaces at key
regions in Karachi to supply toward the Southern regions, Pezu and Khyber
Pakhtunkhwa to convey the Northern scopes of the country. Fortunate Cement
is Pakistan's in the first place organization to exchange a lot of free concrete
being the so to speak bond maker to have it's have stacking and limit destructive
at Karachi Harbor.
Lucky Cement is an ISO 9001:2008 and 14001:2004 gifted organization
moreover has various other global affirmations just as Bureau of Indian
Standards, Sri Lankan Standard Organization, Standards Organization of
Nigeria, Kenya Bureau of Standards and South African Bureau of Standards.
TYPES OF ANALYSIS

Horizontal Analysis

In Amount

Flat examination, in addition known as pattern investigation, could be a fiscal

report examination methodology that appears to the progressions inside the
wholes of comparing budget summary pieces done in timeframe. It might be
important instrument to survey the pattern conditions. The clarifications for at
least two periods are used as the flat investigation. The most reliable period is
normally used as the base time frame and the things on the announcements for
all a while later periods are related with things on the announcements of the
base time frame. The progressions are generally seemed both in dollars and rate.

Dollar changes are computed by using the following formulas:

Dollar Change = Amount of item in comparison year – Amount of item in base

year

Both the amount and percentage trend analysis of final five years of Lucky
cement limited display are changes taking abode in individual headers of

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balance sheet and income statement. Percentage conversion in trend analysis is
calculated using the following formula:

Percentage Change = Dollar Change X 100

Amount of item in base year
In both the examination it is seen that in Balance Sheet there has been an
abatement inside the impalpable resources of the organization by approx. 202%
in FY18. This decline is since the organization has sold a couple of present day
program for the predominant organization of its tasks. The long haul advances
of the organization have in addition extended by 8% in FY18. This expansion is
since the organization has made reserve funds in LCL Investment Holding
Limited, a completely had strengthening of the organization, coordinated and
domiciled in Mauritius. LCL Investment Holding Limited during the time has
been completing joint endeavors with the local organizations in Iran and Congo
for the formation of Cement lattice unit and Incorporated Cement fabricating
Unit.
Vertical Analysis
In Percentage
The most preferred position of using vertical investigation of fiscal reports is
that monetary records of organizations of different measurements can be looked
at. Examination of by and large entireties of organizations of different sizes
does not give important ends nearly their money related execution and
budgetary position. As a rule the vertical examination is performed for a solitary
bookkeeping period to see the near degrees of disparate record adjusts.
However, it is moreover significant to achieve vertical examination over various
periods to recognize changes in accounts over time. It can offer assistance to
recognize unfamiliar changes within the behavior of accounts.

Balance Sheet:
Unique this technique on the asset report, the majority of the three noteworthy
classes accounts for example resources, liabilities, and value, are contrasted
with the all-out resources. The majority of the monetary record things are
displayed as an extent of the complete resources. These rates are appeared
alongside the supreme money sums.
Following formula is used for vertical Analysis:
Percentage of Base = Amount of Individual Item x 100

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 Lucky Cement
Balance Sheet

Financial Position (PKR in

2014 2015 2016 2017 2018
million)
Assets Employed
Property, plant and
31,937 35,019 33,887 37,488 40,913
equipment
Intangible Assets 28 42 127 80 55
Long term investments 8,158 10,925 12,422 13,314 24,981
Long term advance 72 79 76 85 91
Long term deposit 3 3 3 3 3
Current assets 19,672 27,018 39,395 46,368 42,956
Total Assets 59,870 73,086 85,909 97,337 108,999
Financed By
Shareholders' Equity 49,792 59,259 69,323 79,785 86,367
Long-term liabilities
Long term finance - - - - -
Current portion of long
127 - - - -
term finance
127 - - - -
Long term deposits and
5,521 6,396 6,969 7,209 7,395
deferred liabilities
Current liabilities 4,556 7,431 9,618 10,344 15,237
Current portion of long
(127) - - - -
term finance
4,428 7,431 9,618 10,344 15,237
Total Funds Invested 59,870 73,086 85,900 97,337 108,999

Turnover & Profit

Turnover – Net 43,083 44,761 45,135 45,687 47,542

Gross Profit 18,690 20,183 21,746 21,298 16,952
Operating Profit 14,548 16,138 18,620 18,573 13,870
Profit before taxation 14,456 15,912 18,400 18,778 15,119
Profit after taxation 11,344 12,432 12,944 13,692 12,197
Total comprehensive income 11,344 12,377 12,974 13,696 12,079
Cash Dividends 2,587 2,910 2,910 3,234 5,497

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General Reserve 7,871 8,433 9,467 9,741 8,199
Profit carried forward 11,344 12,377 12,974 13,696 12,079
Earnings per share (Rupees) 35.08 38.44 40.03 42.34 37.72
Cash Flow Summary
Net Cash from Operating
13,566 19,003 16,603 16,864 17,080
Activities
Net Cash used in Investing
(4,949) (8,130) (3,353) (6,688) (17,906)
Activities
Net Cash (Outflow) / Inflow
(2,833) (3,019) (2,889) (3,243) (5,477)
from Financing Activities
(Decrease) /Increase in Cash
5,785 7,854 10,361 6,933 (6,303)
and Bank Balance
Cash and Bank Balance at
2,806 8,591 16,445 26,806 33,738
beginning of the Year
Cash and Bank Balance at
8,591 16,445 26,806 33,738 27,435
end of the Year

Analysis of Balance Sheet

PKR in '000 2014 2015 2016 2017 2018
Share Capital & Reserves 49,792,183 59,258,770 69,322,838 79,784,981 86,366,82
2
Non-Current Liabilities 5,521,483 6,396,392 6,968,744 7,208,757 7,395,033
Current Liabilities 4,555,965 7,430,703 9,617,734 10,343,627 15,237,26
2
Total Equity & Liabilities 59,869,631 73,085,865 85,909,316 97,337,365 108,999,1
17
Non-Current Assets 40,198,033 46,067,916 46,514,689 50,969,440 66,043,44
0
Current Assets 19,671,598 27,017,949 39,394,627 46,367,925 42,955,67
7
Total Assets 59,869,631 73,085,865 85,909,316 97,337,365 108,999,1
17

Vertical Analysis - % 2014 2015 2016 2017 2018

Share Capital & Reserves 83.17 81.08 80.69 81.97 79.24
Non-Current Liabilities 9.22 8.75 8.11 7.41 6.78
Current Liabilities 7.61 10.17 11.20 10.62 13.98
Total Equity & Liabilities 100.00 100.00 100.00 100.00 100.00
Non-Current Assets 67.14 63.03 54.14 52.36 60.59
Current Assets 32.86 36.97 45.86 47.64 39.41
Total Assets 100.00 100.00 100.00 100.00 100.00

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Horizontal Analysis (i)
2014 2015 2016 2017 2018
Cumulative %
Share Capital & Reserves 21.34 44.41 68.93 94.43 110.47
Non-Current Liabilities 3.89 20.35 31.12 35.63 39.14
Current Liabilities 18.46 93.21 150.08 168.96 296.20
Total Equity & Liabilities 19.27 45.60 71.15 93.91 117.15
Non-current assets 8.09 23.87 25.07 37.05 77.59
Current assets 51.24 107.73 202.88 256.50 230.26
Total assets 19.27 45.60 71.15 93.91 117.5

Horizontal analysis (ii) year 2015 vs 2016 vs 2017 vs 2018 vs

On years% 2014 2015 2016 2017
Share capital and reserves 19.01 16.98 15.09 8.25
Non-current liabilities 15.85 8.95 3.44 2.58
Current liabilities 63.10 29.43 7.55 47.31
Total equity and liabilities 22.08 17.55 13.30 11.98
Non-current assets 14.60 0.97 9.58 29.57
Current assets 37.34 45.81 17.70 (7.36)
Total assets 22.08 17.55 13.30 11.98

ANALYSIS OF PROFIT AND LOSS ACCOUNT

PKR in ‘000 2014 2015 2016 2017 2018
Turnover 43,083,169 44,761,307 45,135,037 45,687,043 47,541,724
Cost of Sales 24,393,064 24,578,219 23,389,268 24,388,760 30,589,363
Gross Profit 18,690,105 20,183,088 21,745,769 21,298,283 16,952,361
Distribution Cost 3,382,156 3,127,018 2,018,376 1,703,785 1,992,454
Administrative Cost 760,269 943,385 1,107,527 1,021,694 1,089,446
Operating Profit 14,547,680 16,112,685 18,619,866 18,572,804 13,870,461
Finance Cost 34,225 - - - -
(Other Income)/Charges 57,090 200,891 219,644 (205,449) (1,248,194)
Profit before taxation 14,456,365 15,911,794 18,400,222 18,778,253 15,118,655
Taxation 3,111,962 3,480,196 5,456,037 5,086,004 2,921,565
Profit after taxation 11,344,403 12,431,598 12,944,185 13,692,249 12,197,090
Other Comprehensive Income (663) (54,636) 30,258 3,644 (117,874)
Total Comprehensive Income 11,343,740 12,376,962 12,974,443 13,695,893 12,079,216

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Vertical Analysis - % 2014 2015 2016 2017 2018
Turnover 100.00 100.00 100.00 100.00 100.00
Cost of Sales 56.62 54.91 51.82 53.38 64.34
Gross Profit 43.38 45.09 48.18 46.62 35.66
Distribution Cost 7.85 6.99 4.47 3.73 4.19
Administrative Cost 1.76 2.11 2.45 2.24 2.29
Operating Profit 33.77 36.00 41.25 40.65 29.18
Finance Cost 0.08 - - - -
(Other Income)/Charges 0.13 0.45 0.49 (0.45) (2.63)
Profit before taxation 33.55 35.55 40.77 41.10 31.80
Taxation 7.22 7.78 12.09 11.13 6.15
Profit after taxation 26.33 27.77 28.68 29.97 25.66
Other Comprehensive Income - (0.12) 0.07 0.01 (0.25)
Total Comprehensive Income 26.33 27.65 28.75 29.98 25.41

Horizontal Analysis (i)

2014 2015 2016 2017 2018
Cumulative - %
Turnover 13.95 18.38 19.37 20.83 25.74
Cost of Sales 15.86 16.74 11.09 15.84 45.29
Gross Profit 11.54 20.45 29.78 27.11 1.17
Distribution Cost (7.69) (14.66) (44.91) (53.50) (45.62)
Administrative Cost 11.75 38.66 62.79 50.17 60.13
Operating Profit 17.21 29.82 50.01 49.64 11.75
Finance Cost (54.87) (100.00) (100.00) (100.00) (100.00)
(Other Income)/Charges (90.33) (65.97) (62.79) (134.80) (311.44)
Profit before taxation 23.08 35.47 56.65 59.87 28.71
Taxation 55.82 74.26 173.20 154.67 46.29
Profit after taxation 16.37 27.52 32.78 40.45 25.11
Other Comprehensive Income (98.10) 56.94 (186.91) (110.47) 238.58
Total Comprehensive Income 16.78 27.41 33.57 40.99 24.35

Horizontal Analysis (ii) Year vs 2015 vs 2016 vs 2017 vs 2018 vs

Year - % 2014 2015 2016 2017
Turnover 3.90 0.83 1.22 4.06
Cost of Sales 0.76 (4.84) 4.27 25.42
Gross Profit 7.99 7.74 (2.06) (20.41)
Distribution Cost (7.54) (35.45) (15.59) 16.94
Administrative Cost 24.09 17.40 (7.75) 6.63

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Operating Profit 10.76 15.56 (0.25) (25.32)
Finance Cost (100.00) - - -
(Other Income)/Charges 251.88 9.33 (193.54) 507.54
Profit before taxation 10.07 15.64 2.05 (19.49)
Taxation 11.83 56.77 (6.78) (42.56)
Profit after taxation 9.58 4.12 5.78 (10.92)
Other Comprehensive Income 8,140.72 (155.38) (87.96) (3,334.74)
Total Comprehensive Income 9.11 4.83 5.56 (11.80)

FINANCIAL PERFORMANCE

Ratio Analysis
Ratio analysis could be a Quantitative analysis of data contained in a company’s
financial statements. Ratio analysis is based on line things in financial
statements like the balance sheet, income statement and cash flow statement; the
proportions of one piece or a combination of pieces to another piece or
arrangement are at that point considered. Ratio analysis is utilized to assess
numerous perspectives of a company’s working and financial performance such
as its efficiency, liquidity, profitability and solvency. A detail ratio analysis of
Lucky Cement is carried out to have a clear picture of the company’s financial
strength.
1. Liquidity Analysis

Liquidity ratios are used to decide a company’s capacity to meet its short-term
debt commitments.
Current Ratio
This ratio is primarily utilized to contribute knowledge of the company's
capacity to pay back its short-term liabilities are debt and payables with its
short-term assets are cash, stock, and receivables. The higher the current ratio,
the more proficient the company is of paying its commitments.
Current Ratio is calculated using the following formula:
Current Ratio = Current Assets/ Current Liabilities
Current Ratio of Lucky Cement from the year 2014 to 2018 is as follows:
Liquidity Ratio Formula 2018 2017 2016 2015 2014
Current Ratio C.Asset/C.Liabilities 2.82 4.48 4.10 3.64 4.32

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 Current Ratio
4.48
4.5 4.32
4.1
4 3.64
3.5
2.82
3
2.5
2
1.5
1
0.5
0
2018 2017 2016 2015 2014

 REASON:
This extent has decreased over the period. Current extent of Fortunate
concrete in FY18 is 2.82 as repudiate to 4.48 in FY17. This lessen is
basically due to decrease in current assets of organization. Inside the
present assets money and bank modify has reduced and different
receivables have lessened fundamentally. This reduce is since of the
arrival for the arrangements of overabundance control.

Quick Ratio
Quick ratio is the degree of cash and other current resources that
are promptly convertible into cash in comparison to
the brief term commitments of an organization. A fast proportion of 0.5
would propose that a company is able to settle half of its current
liabilities momentarily. Quick proportion contrasts from current proportion in
that those current resources that are not promptly convertible into cash
are avoided from the calculation such as stock and conceded charge credits
since transformation of such resources into cash may take significant time.
Quick ratio may therefore alternatively be calculated as follows:
Quick Ratio = (Current Assets - Inventory - Advances –
Prepayments)
Current Liabilities
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 Liquidity
Formula 2018 2017 2016 2015 2014
Ratio
Quick Ratio (Cash+Rec.+S.t
2.12 3.67 3.31 2.75 2.62
investment)/C.Liabilities

Quick Ratio
4 3.67
3.5 3.31

3 2.75 2.62
2.5 2.12
2

1.5

0.5

0
2018 2017 2016 2015 2014

 REASON:
 This proportion has diminished over the
period. Fast proportion of Fortunate cement in FY18 is 2.12 as restrict to
3.67 in FY17. This diminish is primarily due
to diminish in fast resources of company. Inside the
current resources cash and bank adjust has diminished enormously.
This diminish is since of tall positive cash streams from
the deals of power of 20MW per hour.
Cash Ratio
Cash Ratio is a marker of company's short-term liquidity. It measures
the capacity to utilize its cash and cash counterparts to pay its current money
related commitments
Cash Ratio is calculated by utilizing the taking after equation:

Cash Ratio = (Cash and Cash Equivalent)

Current Liabilities

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Cash ratio measures the quick sum of cash accessible to fulfill short-term
liabilities. A cash proportion of 0.5:1 or higher is favored. Cash ratio is the
foremost preservationist see at a company's liquidity since is taking within the
thought as it were money and cash reciprocals.

Liquidity
Formula 2018 2017 2016 2015 2014
Ratio
Cash (Cash+S.t 1.80 3.26 2.79 2.21 1.89
Ratio investment)/C.Liabilities

Cash Ratio
3.5 3.26

3 2.79

2.5 2.21
1.8 1.89
2

1.5

0.5

0
2018 2017 2016 2015 2014

 REASON:
 This proportion has diminished over the period. Cash proportion of
Fortunate cement in FY18 is 1.80 as restrict to 3.26 in FY17. This
diminish is primarily due to diminish in company’s cash streams, due to
their productive operations conjointly since of the deal of overflow
power.
2. Asset management Ratios
Movement proportions degree a firm's capacity to change
over distinctive accounts inside its adjust sheets into cash or deals.
Receivable Turnover Ratio
Receivables turnover proportion measures company's proficiency in collecting
its deals on credit and collection arrangements. This proportion takes in thought

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as it were the credit deals. On the off chance that money deals are included, the
proportion will be influenced and may lose its noteworthiness. It is best to
utilize normal accounts receivable to dodge regularity impacts. Taking after
equation is utilized for the calculation:
Receivable Turnover Ratio (DSO) = Annual Credit Sales
(Beginning Rec. Balance – Ending
Rec. Balance)/2
Activity
Formula 2018 2017 2016 2015 2014
Ratios
Receivable 57.3897
Cr. Sales/Avg.Receivable 23.72 69.654 71.14612 70.672
Turnover 9

Receivable Turnover
80
69.65 71.15 70.67
70
57.39
60

50

40

30 23.72

20

10

0
2018 2017 2016 2015 2014

 REASON:
 At Lucky cement the company has collection proficiency in FY18. In
FY17 Accounts receivable turnover of the company was 23.72 times
with diminished to 69.65 in FY17. The days of accounts receivable
have moreover moved forward from 72.4 days to 64 days to 51
days individually in year 2015, 2016 and 2017.
Inventory Turnover Ratio
A ratio appearing how numerous times a company's stock is sold
and supplanted over a period. The days within the period can at that
point be separated by the stock turnover equation to calculate the days it takes
to offer the stock on hand or "stock turnover days." A moo turnover
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 implies destitute deals and, so, overabundance stock.
A tall proportion suggests either solid deals or ineffectual buying. Equation:
Inventory Turnover Ratio (DIO) = Cost of Goods Sold
Average Inventory

Activity Ratios Formula 2018 2017 2016 2015 2014

Inventory COGS/Avg.Inventory
11.53 28.52 34.21 15.27 15.89
Turnover

Inventory Turnover
34.21
35

30 28.52

25

20
15.27 15.89
15 11.53

10

0
2018 2017 2016 2015 2014

REASON:
Benefit extents difference pay verbalization records and arrangements
with show up an association's capacity to make benefits by its exercises.
Productivity degrees center on an association's landing on hypothesis in
stock and various resources. These degrees fundamentally show up how
well associations can accomplish benefits by their undertakings.

Payable Turnover Ratio

A short-term liquidity degree utilized to measure the rate at which a company

pays off its providers. Accounts payable turnover proportion is calculated by
taking the full buys made from providers and isolating it by the normal accounts
payable sum amid the same period. The degree appears financial
specialists how numerous times per period the company pays
its normal payable sum. Underneath equation is applied:

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 Payable Turnover (DPO) = Total Purchases
Average Payables
Activity
Formula 2018 2017 2016 2015 2014
Ratios
Payable 8.48528
Cr. Purchases/Avg.Payable 2.771 9.80689 10.9907 11.13224
Turnover 1

Payable Turnover
12 10.99 11.13
9.81
10
8.49
8

4 2.77

0
2018 2017 2016 2015 2014

 REASON:
The records payable extent of Fortunate Cement is decreasing since 2016
to 2018. In FY16 the payable turnover was 10.9 which reduced to 2.771
in FY18. Days to payable have extended from 69 days to 74 days from
FY16 to FY17. T1'he augmentation of payable days give the idea that by
and by the organization has money close by for progressively
conspicuous number of days.
Days Sales of Inventory: 360 / ITO

Activity Ratios Formula 2018 2017 2016 2015 2014

Days sales of
Inventory 360 / ITO 31.2 12.623 10.523 23.576 22.656

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 Days sales of Inventory
35 31.2
30
23.58 22.66
25

20

15 12.62
10.52
10

0
2018 2017 2016 2015 2014

Days Sales Outstanding: 360 / RTO

Activity Ratios Formula 2018 2017 2016 2015 2014
Days sales
360 / RTO 15.117 5.168 5.06 6.273 5.0939
Outstanding

Days sales Outstanding

16 15.12

14

12

10

8 6.27
5.17 5.06 5.09
6

0
2018 2017 2016 2015 2014

Days Payables Outstanding: 360 / PTO

Activity Ratios Formula 2018 2017 2016 2015 2014
Days Payables
360 / PTO 129.91 36.697 32.75 42.423 32.345
Outstanding

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 Days Payables Outstanding
140 129.91

120

100

80

60
42.42
36.7 32.75 32.35
40

20

0
2018 2017 2016 2015 2014

Fixed Asset Turnover ratio: Sales / Avg. Net fixed assets

Activity Ratios Formula 2018 2017 2016 2015 2014
Fixed Asset Sales / Avg. Net
.7198 .8963 .970 .971 1.07
Turnover fixed assets

Fixed Asset Turnover

1.2
1.07
0.97 0.97
1 0.9

0.8 0.72

0.6

0.4

0.2

0
2018 2017 2016 2015 2014

Total assets turnover ratio: Sales / Avg. Total assets

Activity Ratios Formula 2018 2017 2016 2015 2014

Fixed Asset Sales / Avg. Total
.436 .469 .525 .612 .719
Turnover assets

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 Fixed Asset Turnover
0.8
0.72
0.7
0.61
0.6 0.53
0.47
0.5 0.44

0.4

0.3

0.2

0.1

0
2018 2017 2016 2015 2014

3. Profitability Ratios
 Net Profit Margin
The net revenue extent, also called the arrival on arrangements extent or net
advantage extent, could be an efficiency extent that estimates the total of net
pay earned with every dollar of arrangements made by contrasting the net
pay and net arrangements of an organization. At the end of the day, the
advantage edge extent shows up what pace of arrangements are gotten out
over after all expenses are paid by the exchange. Banks and monetary
authorities use this extent to degree how reasonably an organization can
change over deals into net pay. Theorists need to frame sure advantages are
tall adequate to pass on benefits though leasers need to make without
question the organization has adequate advantages to pay back its credits. At
the end of the day, outside customers need to realize that the organization is
running proficiently. An extraordinarily moo advantage edge demonstrate
the expenses are too tall and the organization should spending plan and cut
expenses.
Return on deals proportion is regularly utilized by inner administration to set
execution objectives for long-standing time.
Net Profit Margin = Net Income/ Sales

Profitability
Formula 2018 2017 2016 2015 2014
Ratios
Net Profit Margin Net Profit/Total Revenue 18% 20% 19% 28% 26%

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 Net Profit Margin
30% 28%
26%
25%
20%
19%
20% 18%

15%

10%

5%

0%
2018 2017 2016 2015 2014

 REASON:
 Net salary to deals proportion of company is enormously expanding since
2014. The most reason for this increment is sweet administration of the
company. Besides the company has picked up advantage due to the
increasing prices of cement Gainfulness proportions contrast pay
verbalization records and classifications with show up an organization's
ability to make profits by its activities. Efficiency extents focus on an
organization's arrival on theory in stock and different assets. These
extents basically show up how well organizations can achieve profits by
their tasks, and diminishing costs of coal within the showcase. Gigantic
scale development activities by the government have too expanded the
request of cement division. Finally company’s net edges have expanded
since of; their speculation in ICI and deal of excess electricity. Net
Benefit expanded from PKR 9.7 billion in 2014 to 12.1 billion in 2018
with an increment of 24.4%. Usually primarily inferable to expanded
deals volumes as well as nonstop execution enhancement and fetched
lessening initiatives.
Gross Margin
A cash related measurement used to assess an association's fiscal
prosperity by revealing the degree of money got out over from livelihoods in the
wake of accounting for the caused significant damage of items sold. Net
advantage edge fills in as the hotspot for paying additional expenses and future
speculation reserves. Determined as:

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Gross Margin = Gross Profit/Sales
The net budget is isn't a correct assess of the company's estimating procedure
but it does provide a great sign of monetary wellbeing. Without a satisfactory
net edge, a company will be incapable to pay its working and other costs and
build for long-standing time.

Profitability Ratios Formula 2018 2017 2016 2015 2014

Gross Profit Margin Gross Profit/Sales 35% 33% 34% 45% 43%

Gross Profit Margin

45%
45% 43%

40%
35% 34%
35% 33%

30%
25%
20%
15%
10%
5%
0%
2018 2017 2016 2015 2014

 REASON: Net benefit edge of the company is progressing over the final
five a long time. This change is since of a few reasons, Firstly, the
company is diminishing its operational fetched by moving to elective fuel
choices. Furthermore, neighborhood and universal cement costs are
expanding and coal pricings are diminishing.

4. Debt Management ratios

Debt Equity Ratio
The obligation to value proportion may be a monetary, liquidity
proportion that compares a company's add up to obligation to add up to
value. The obligation to value proportion appears the rate of company
financing that comes from lenders and financial specialists. The next
obligation to value proportion demonstrates that more bank financing
(bank credits) is utilized than financial specialist financing shareholders,
Equation;
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 Debt Equity Ratio = Total Liabilities / Total Shareholder Equity
A lower obligation to value proportion as a rule suggests a
more monetarily steady trade. Companies with the
next obligation to value proportion are considered
more unsafe to leasers and financial specialists than companies with a
lower proportion. Not at all like value financing, must obligation
be reimbursed to the bank.
Since obligation financing too requires obligation overhauling or customary intr
igued installments, obligation can be a distant more costly frame of financing
than value financing. Companies leveraging expansive sums of debt might not
be able to form the installments.

Solvency Ratios Formula 2018 2017 2016 2015 2014

Debt-to-Equity Total Debt/Total
0.275 0.22 0.239264 0.23334 0.20239
Ratio Assets

Debt-to-Equity Ratio
0.3 0.28
0.24 0.23
0.25
0.22
0.2
0.2

0.15

0.1

0.05

0
2018 2017 2016 2015 2014

 REASON:
Obligation to-value extent of Fortunate Cement is decreasing. With time
the long haul commitment of organization is reducing quickly and worth
is growing since of tall advantages. The organization focuses to play
down its dependence on outside financing. At the present time the
organization in a manner of speaking has financing from related bank
which structures in a manner of speaking 1.39% of the general liabilities.

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 The real bundle of organization's Non-current hazard is yielded
commitment, which included staff tip and surrendered survey chance.

 COMMENTS ON FIVE YEAR FINANCIAL

STATEMENTS

 Incomes created from PKR 37.8 billion of every 2013 to PKR 47.5 billion
out of 2018 with an addition of 25.7%. This is frequently essentially due
to reach out in arrangements volumes.
 Cost stretched out from PKR 21.1 billion of every 2013 to PKR 30.6 in
2018 billion with an addition of 45.3%. Commonly fundamentally due to
stretch out in arrangements volumes, expenses of coal and different
forces.
 GP reached out from PKR 16.8 billion of every 2013 to PKR 16.9 billion
of every 2018 with an addition of 1.2%. Generally principally attributed
to use of profitable and brought viable elective vitality sources, as well as
utilization of Squander Warm Recovery which diminished control taken a
toll and lead to extend in GP.
 As of now there's no fund taken a toll as Company’s capital structure is
based on value fund
 Net Benefit expanded from PKR 9.7 billion in 2013 to 12.1billion in
2018 with an increment of 24.4%. Typically mainly inferable to expanded
deals volumes as well as nonstop execution enhancement and taken a toll
diminishment activities.

COMMENTS ON FINANCIAL POSITION ANALYSIS OF

FIVE YEARS
 The share capital remained the same in any case, saves expanded due to
extend in undistributed benefits for financing unused ventures &
ventures.
 There is an increment of 39.1% in NCL from 2013 to 2018 mainly since
of approved assess risk.
 There is an increment of 77.6% in NCA from 2013 to 2018 primarily due
to capital use on Capacity extension &improvement, elective vitality,
WHR, Vento etic Pressing Plant, Vertical Crushing Process and value
speculations in ICI, Kia Fortunate Engines, Fortunate Electric Control
and other seaward ventures in Iraq & Congo.

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 
COMMENTS ON CASH FLOW ANALYSIS
Lucky has influential cash stream framework. The liquidity of the Company
progressed significantly due to progressed edges, made impoverishments and
dependence on value financing in this way diminishing back fetched over the a
long time. The company has no borrowings as of 30th June 2018 and all the
Company’s ventures and speculations are essentially financed by inside created
cash streams.

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