Financial Statement Analysis of Suzuki Motors

Financial Statement analysis of Pak Suzuki

Presented To: Sir ZIA

ULLAH

Presented By:Aasim MushtaqYaser Ali Hassan

Sajid Ali

Company Information

Pioneer in Pakistan Automobile Industry Largest Dealership Network Highest Market Share Has Become a Household name The vehicles produced include cars, small vans, Pickups,

Cargo vans and Motorcycle. Pak Suzuki holds more than 50% Market Share.

Company Registration number

0010695

Company Profile:

Location : Downstream Industrial Estate of Pakistan Steel Karachi

Total Area : 259,200 m2 (64 acres)

Facilities : Press Shop, Welding Shop, Paint Shop, Plastic Shop, Engine and Transmission Assembly Shop, Final Assembly & Hi-Tech Inspection Shop. The Company has also established a modern Waste Water Treatment Plant as its contribution to the environment.

Cost: Rs. 12.130 billion

Production Capacity (double shift):Car Plant: 150,000 units per annumMotorcycles Plant: 37,000 units per annum

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.

Company’s Products in Pakistan

Suzuki Swift 1300 cc

CULTUS 1000 cc

LIANA 1300 cc

MEHRAN 800 cc

ALTO 1000 cc

Reasons for Analysis

Investment decisions*Credit decisions*Performance MeasurementValuation (investment)Making of policiesEvaluation of managementGoing concern decisions

Objective

The objective is to take the investment decision in “Pak Suzuki motors limited”

Analysis

Balance SheetAs at December 31, 2011

2013 __ (Rs 000)

NON-CURRENT ASSETS (Fixed assets) Property, plant and equipment -------------------------------------------------------------------------- 4,200,317 Intangible assets ------------------------------------------------------------------------- 303,777

Total 4,504,094 Long-term investments ------------------------------------------------------------------------- 4,190 Long-term loans ----------------------------------------------------------------------- 1,523 Long-term deposits and prepayments ------------------------------------------------------------------------- 20,487 Long-term installment sales receivables ----------------------------------------------------------------------- 185,829 4,716,123 CURRENT ASSETT Stores, spares and loose tools 64,467 Stock-in-trade 12,922,396 Trade debts 322,677 Current portion of long-term installment sales receivables 303,951 Loans, advances and others 216,586 Trade deposits and short-term prepayments 83,271 Accrued mark-up income 6,145 Other receivables 139,948 Sales tax and excise duty adjustable 1,023,399 Income tax refundable – net 2,362,674 Cash and bank balances 1,139,480 TOTAL ASSETS 23,301,117

Balance SheetAs at December 31, 2011

EQUITY AND LIABILITIES 2013 __ (Rs 000)

SHARE CAPITAL AND RESERVES Authorized share capital 150,000,000 (2010: 150,000,000) ordinary shares of Rs.10/- each 1,500,000 Issued, subscribed and paid-up share capital 822,999 Reserves 14,470,033 __________ 15,293,032 CURRENT LIABILITIES Trade and other payables 3,211,174 Advances from customers 3,065,406 Short-term borrowing 75,000 Deposits against display of vehicles 1,436,833 Security deposits 81,197 Provision for custom duties and sales tax 138,475 ___________

TOTAL EQUITY AND LIABILITIES 23,301,117

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

Earnings per share

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

Auditors’ Report

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 2013 and of the profit, its comprehensive income, cash flows and changes in equity for the year then ended.

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, 2013

Breakup / Book Value of share Rs. 185.82

Conclusion

The purpose of our analysis is that whether should we invest or not to invest in the Company. So our conclusion regarding my objective is that we 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.