WELCOME

Class of AFS-2010 by Zain Javed, CFA

TOPIC ANALYSIS OF FINANCIAL

STATEMENTS OF OGDCL, POL & PPL

(2008-2010)Group Members

•M Ali Khan Shamsher•Sufyan Faridi•Zeeshan Iqbal•M Wasiu•Zubair•Mohsin

Class of AFS-2010 by Zain Javed,CFA

Benchmark: OGDCL MARKET CAPITILIZATION & BALANCESHEET SIZE

OGDCL (Mil) ₨ 578,087.8 ₨ 228,867.7 PPL (Mil) ₨ 253,311. ₨ 107,579.6

POL (Mil) ₨ 78,107.5 ₨ 41,835.4

LAYOUT

Vertical Analysis RATIO Analysis Cash Flow Analysis DuPont Analysis SWOT Analysis Recommendation

Class of AFS-2010 by Zain Javed,CFA

Profit & Loss Account Items 2007-08 2008-09 2009-10

Sales 100 100 100

Field expenditure 23.38 21.37 30.48

Royalties 12.07 12.12 11.8Share of profit in Bolan Mining Enterprises -0.12 -0.11 -0.1Other operating income -6.64 -6.63 -4.3

Finance costs 0.15 0.15 0.26Other operating expenses 4.56 5.04 4.28

Taxation 23.49 23.07 18.69

Profit after taxation 43.11 44.99 38.89

  100 100 100

Vertical Analysis 2007-08 2008-09 2009-10Balance Sheet Items  Property, plant and equipment 34.72 41.93 38.75Intangible assets 0.3 0.25 0.35Long-term investments 2.92 2.24 1.68Long-term deposit   0.74 0.59Long-term receivable   0.03 0.01Long-term loans - staff 0.02 0.01 0.01Stores and spares 2.63 2.26 1.92Trade debts 21.68 33.5 28.64Loans and advances 0.93 0.5 0.14Trade deposits and short-term prepayments 0.29 0.39 0.3Accrued financial income 0.35 0.37 0.17Current maturity of long-term investments - 0.37 0.03 0.21Current maturity of long-term receivable 0 0.02 0.02Other receivables 0.01 0.12 0.1Short-term investments 33.99 15.94 25.37Cash and bank balances 1.79 1.67 1.74Total 100 100 100Share capital 12.37 10.01 9.25Reserves 59.17 66.04 65.02Provision for decommissioning obligations 4.61 4.79 5.12Liabilities against assets subject to finance leases 0.13 0.12 0.08Deferred liabilities 1.41 1.19 1.06Deferred Income   0.01 Deferred taxation 0.06 0.17 1.13Trade and other payables 20.06 16.25 16.93subject to finance leases 0.07 0.06 1.13Taxation 2.12 1.36 0.19Total Shareholders' Equity and Liabilities 100 100 100

Balance Sheet Items 2007-08 2008-09 2009-10 Property, plant and equipment 216 355 426 Intangible assets 194 222 401 Long-term investments 1,302 1,355 1,319 Long-term deposit   100 102 Long-term receivable     21 Long-term loans - staff 96 81 75 Stores and spares 142 166 183 Trade debts 344 723 802 Loans and advances 315 231 84 Trade deposits and short-term prepayments 61 110 111 Accrued financial income 4,174 6,039 3,613 Current maturity of long-term investments 66 7 66 Current maturity of long-term receivable - 4 4 Other receivables 22 250 259 Short-term investments 508 324 669 Cash and bank balances 43 54 73 Total Assets 241 327 425 Share capital 110 121 145 Reserves 393 596 761 Provision for decommissioning obligations 168 238 336 Liabilities against assets subject to finance leases 118 152 134 Deferred liabilities 179 206 236 Deferred income   100 55 Deferred taxation 100 354 3,113 Trade and other payables 273 301 407 subject to finance leases 163 1,674 4,394 Current maturity of deferred income - 100 271 Taxation 234 204 36 Total Shareholders Liabilities 241 327 425

Profit & Loss Account Items 2007-08 2008-09 2009-10

Sales - net 259 349 339

Field expenditure 171 210 292

Royalties 282 382 362 Share of profit in Bolan Mining Enterprises 202 250 216 Other operating income 1,791 2,407 1,521

Finance costs 365 513 848 Other operating expenses 368 548 453

Profit before taxation 336 462 381

Taxation 439 581 458

Profit after taxation 298 419 352

Ratios OGDCL POL PPL

Liquidity: 2008 2009 2010 2008 2009 2010 2008 2009 2010

Current Ratio 3.7x 4.0x 3.3x 4.2x 3.5x 3.7x 2.8x 3.1x 3.2x

Quick Ratio 0.79 0.38 0.47 0.46 0.48 0.43 0.42 0.39 0.34

Leverage:                  

Debt Ratio 27% 29% 31% 22% 24% 25% 28% 24% 26%

Debt to Equity Ratio 6% 9% 8% 9% 10% 11% 7% 6% 7%

Debt to Total Asset

Interest Coverage Ratio

Profitability:                  

Gross Profit Margin 80% 79% 80% 68% 65% 66% 64% 66% 57%

Net Profit Margin 41% 48% 47% 49% 39% 44% 43% 45% 39%

Operating Profit Margin 68% 67% 67% 52% 41% 48% 60% 61% 53%

Return on Asset 29% 31% 26% 24% 15% 19% 32% 33% 22%

Return on Equity 40% 44% 38% 31% 21% 26% 45% 44% 30%

Efficiency:                  

Total Asset Turnover 0.7x 0.7x 0.6x 0.5x 0.4x 0.4x 0.7x 0.7x 0.55x

Fixed Asset Turnover 1.5x 1.3x 1.2x 0.8x 0.5x 0.6x 1.9x 1.6x 1.3x

Ratios

Valuation Ratios2008 2009 2010 2008 2009 2010 2008 2009 2010

Earning Per Share 11.54 12.91 13.76 69.28 19.67 36.76 1.86 1.45 7.52

Market Price Per Share 124.56 78.64 142.00 97.85 88.5 101.1 40 38.84 18.53Price Earning Ratio 12.06 6.09 10.32 1.41 4.50 2.75 21.51 26.79 2.46Price to Book Value 0.14 0.88 0.72 0.26 0.30 0.30 0.80 0.89 0.33

Dividend per Share 9.50 8.25 5.50 0.75 0 1.5 1 0 1.25

OGDCL POL PPL

Class of AFS-2010 by Zain Javed

DuPont Analysis

PPL 2010 2009 2008NP 39% 45% 43%TAT 0.55 0.7 0.7EQM 1.35 1.31 1.40

DuPont Analysis 0.29 0.41 0.42

Cash Flow Statement For the year ended June 30, 2010 2010 2009CASH FLOWS FROM OPERATING ACTIVITIES Rs (000) Rs (000) Cash receipts from customers 74,179,219 63 246,960 Receipts of other income 114,082 926,632 Cash paid to suppliers / service providers and employees (14,624,320) (11,698,474)Payment of indirect taxes and Government levies including royalty (22,100,357) (24,893,580)Income tax paid (11,054,806) (14,271,868)Finance costs paid (55,732) (19,944)Long-term loans - staff 1,797 3,548 Net cash generated from operating activities 26,459,883 13,293,274 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditure (7,862,534) (14,804,293)(Purchases) / redemption of long-term investments (net) (75,000) 184,249 (Purchases) / redemption of short-term investments (net) (1,174,442) 3,430,304 Long-term deposit (15,000) (615,000)Long-term receivables 18,443 (10,230)Share of profit received from Bolan Mining Enterprises - - 25,000 Financial income received 2,457,642 2,982,609 Proceeds on sale of property, plant and equipment 138,215 39,615 Net cash used in investing activities (6,512,676) (8,768,719)CASH FLOWS FROM FINANCING ACTIVITIES Payment of liabilities against assets subject to finance leases (139,962) (55,087)Dividends paid (6,472,844) (8,298,505)Net cash used in financing activities (6,612,806) (8,353,592)Net increase / (decrease) in cash and cash equivalents 13,334,401 (3,829,037)Cash and cash equivalents at beginning of the year 14,352,153 18,181,190 Cash and cash equivalents at end of the year 27,686,554 14,352,153

SWOT AnalysisStrengths:

Current Ratio is Comparatively equal with other companies

Weaknesses:

Less Utilization of Asset

Opportunities:

Expansion of new fields

Threats:

Decreasing Net profit MarginHigh Field Expenses

Recommendations

We recommend that PPL should utilize its assets more Effectively in order to generate sales and increased profit margin

It should also cut down its Filed expenses.

Cost of sales is very high comparative to industry, so that it is recommended that company should cut down its cost of sales