financial analysis of colony textile mills limited multan
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financial analysis of colony mills limitedTRANSCRIPT
Financial Analysis of Colony Textile Mills Limited MultanContents: Company information Vision Mission Statement Nature of the company Human Resource Department Composition of company equity Debt Structure and the source of external financing Summaries the company financial operations Total Assets and Liabilities ratios Ratio analysis Conclusion Questionnaire Formula Sheet Formulas Used
Company Information:Board of directors: Mr.Fareed M.SheikhMr.M.Akram QureshiMr.M.Azam Barki
Mr.Malik Sohail AhmedMr.Bilal Ahmed Khan NiaziMr.M FarooqMr.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
Other Management CommitteeTechnical 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 ltdHabib Bank ltd
KASB Bank ltdMeezan Bank ltdNational Bank Of PakistanSoneri Bank ltdStandard Chartered BankSilk Bank ltdThe Bank of PunjabUnited Bank ltdArif Habib Bank ltd
Auditors:Naveed Zafar Hussain Jaffery & co.Chartered Accountants
Legal Advisors: Imran Anjum Alvi (Advocate)Imtiaz Saddique & AssociatesAdvocates & Solicitors
Corporate and Head office: M Ismail Aiwan-i-Science BuildingShahrah-i-Jalaluddin-Roomi(Ferozepur Road) Lahore-54600Phone: 042-35758970-2Fax: 042-35763247
Production Facility:(Unit # 1-7, 186,576 Spindles & 2880 Rotors)Ismailabad (Multan)Phone: 061-6539021-3Fax: 061-6539509UAN: 111-265-669
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.
Nature of the Organization:The Colony Textile Mill is related to corporate sector and its core business is to produce and supply of spun yarn to local and international customers’ with best quantity standards and efficient services. Their employment and HR polices developed individuals without race, religion, gender or any discrimination factor. They provide equal opportunities to all the employees under a team based working environment. They believe in community development. They contribute their resources, both financial 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 corporate governance principles and comply with the regulatory obligations enforced by regulatory agencies foot improving corporate performance. There are marketing polices are customer focused. They believe in One Window Solution and customer satisfaction. Their marketing policy is only based on these two parameters 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 as follows:Ø Human resource departmentØ Marketing departmentØ Finance departmentØ Accounts departmentØ Admin departmentØ Production department
Human Resource DepartmentAlongside 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 its work 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.
Composition of company equity
Debt Structure and the source of external financing
Summaries the company financial operations
Total assets and liabilities
Ratio analysis
ConclusionFrom 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. QuestionnaireI 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.
Formula Sheet:
Formulas Used:
1. Growth Trend
1. Gross Profit Margin
1. Return on Capital Employed
1. Net Profit
1. Return on Equity
1. Receivable Turnover Period
1. Inventory Turnover Period
1. Asset Turnover
1. Current Ratio
1. Quick Ratio
1. Interest Cover
1. Earnings Per Share
1. Price to Earnings Ratio