Financial Statement analysis of Pak Suzuki

Prepared By: Syed Arslan

Amjad

Presented To: Sir Abdul Mannan

Contents

• Company Information– Vision & Mission

• Reasons for Analysis• Objective• Analysis• Summary• Conclusion

Company Information• Pak Suzuki Motor Company Limited was formed as a joint venture

between Pakistan Automobile Corporation and Suzuki Motor Corporation (SMC) - Japan. The Company was incorporated as a public limited company in August 1983 and started commercial operations in January 1984

• The vehicles produced include cars, small vans, Pickups, Cargo vans and Motorcycle. Pak Suzuki holds more than 50% Market Share.

• Company Registration number

0010695

Vision & Mission

• Vision:– Excellence in all respects

Our Mission:• Our mission to realize this vision is:• To provide automobile of international quality at

competitive price.• To improve skills of valued employees by imparting

training and inculcating in them a sense of• participation. Etc.

Reasons for Analysis

• Investment decisions*• Credit decisions*• Performance Measurement• Valuation (investment)• Making of policies• Evaluation of management• Going concern decisions

Objective

• The objective is to take the investment decision in “Pak Suzuki motors limited”– I consider Myself as a “Investor”

Analysis

Balance Sheet

• Total Assets of Pak Suzuki 2011 2010 (Rs 000) Total Assets 23,301,117 19250364

• Equity And LiabilitiesAuthorized Share capital150,000,000 ord.share of Rs.10/-each 1500,000 1500,000

Total equity and Liabilities 23,301,117 19250364

Profit and loss A/c • Pak Suzuki Sale Revenue

Pak Suzuki Production Volume

Profit and loss A/c

Profit Before Tax And After Tax

Profit and loss A/c

• Earning per share

Auditors’ Report

c) in our opinion and to the best of our information and according to the explanations given to us, the balance sheet, profit and loss account, statement of comprehensive income, cash flow statement and statement of changes in equity together with the notes forming part thereof, conform with approved accounting standards as applicable in Pakistan, and, give the information required by the Companies Ordinance, 1984, in the manner so required and respectively give a true and fair view of the state of the Company’s affairs as at 31 December 2011 and of the profit, its comprehensive

income, cash flows and changes in equity for the year then ended.

Ratio Analysis

• Liquidity & leverage Ratio– Liquidity Ratios shows the extent to which the firm

can meet its financial obligations

Profitability Ratio Analysis• Profitability Ratios relates profits to sales and assets.

Equity Ratios Analysis

Summary

• Company Information– Company Registration number

0010695

• Earnings Per Share– Rs. 9.70

• Price Earnings Ratio (P/E Ratio)– 8.26– Based on market value as on Dec 30, 2011

• Breakup / Book Value of share– Rs. 185.82

Conclusion

The purpose of my analysis is that whether should I invest or not to invest in the Company. So my conclusion regarding my objective is that I should invest in this company or buy shares of the company. Because the company economic condition of this year is very good as compared to previous year. The company overall performance like their Sale Revenue, profit margin, profitability and liquidity Ratios etc is so good.