Ittehad Chemicals

Ittehad Chemicals Limited Income Statements CC 2

2006 2007 2008Sales 2,157,767 2,533,603 2,685,176Cost of sales -1,692,386 -1,911,635 -2,137,311Gross profit 465,381 621,968 547,865Selling and distribution expenses -102,217 -118,521 -139,213General and administrative expenses -56,422 -60,134 -72,261Other operating expenses -9,326 -12,547 -10,246Other operating income 11,355 6,879 16,308

-156,610 -184,323 -205,412

Operating Profit 308,771 437,645 342,453Financial charges -142,055 -207,791 -212,824Fair value loss/gain on investment property 0 4,941 -390Profit before Taxation 166,716 234,795 129,239Taxation -47,202 -97,482 -63,631Profit after Taxation 119,514 137,313 65,608

Earning per share - basic and diluted 3.98 3.81 1.82


2009 20103,568,352 3,081,288

-2,747,957 -2,469,963820,395 611,325

-204,213 -179,504-100,292 -106,351

-20,620 -12,89913,223 20,141

-311,902 -278,613

508,493 332,712-239,586 -204,179

7,750 3,550276,657 132,083

-107,481 8,723169,176 140,806

4.7 3.91


Ittehad Chemicals Limited Balance Sheets CC 3

2006

ASSETSNON CURRENT ASSETSOperating fixed assets 2510171Capital work in progress 24156

2534327Intangible Assets 0Investment Properties 0Long term investments 1817Deferred cost 1751Long term deposits 14658

2552553

CURRENT ASSETSStores, spares and loose tools 301796

Stock in trade 144617Trade debts 201342Loans and advances 21572Trade deposits and short term prepayments 5205Other receivables 2177Tax refunds due from Government 5974Taxation - net 67550Cash and bank balances 257713

1007946TOTAL ASSETS 3560499

EQUITY AND LIABILITIESSHARE CAPITAL AND RESERVESAuthorized share capital 75,000,000 (2005: 75,000,000) shares of Rs. 10/- each 750000Issued, subscribed and paid up capital 300000Reserves 326839

626839

SURPLUS ON REVALUATION OF FIXED ASSETS 638574

NON CURRENT LIABILITIESRedeemable capital 83266Long term financing 739251Long term diminishing musharaka 0Long term murabaha 261187Liabilities against assets sunject to finance lease 0

Deferred liabilities 1699211253625

CURRENT LIABILITIESTrade and other payables 21094Mark up accrued 28520Short term borrowings 431977Current portion of long term liabilities 359870Provision for taxation - net 0

1041461CONTINGENCIES AND COMMITMENTS 0

TOTAL EQUITY AND LIABILITIES 3560499

Ittehad Chemicals Limited Balance Sheets CC 3

2007 2008 2009 2010

2,359,749 2316478 2422693 229921147679 104377 32919 54380

2407428 2420855 2455612 23535911538 4141 3310 1462

82140 70950 78700 065542 65105 87786 82250

901 0 0 8740014205 11475 11321 21449

2571754 2572528 2636729 25461526 7 8 9

inv 144617 102285 144335 105732290006 315257 341790 437333 144617 123451 123310 125033.5 133658.5

102285 144335 105732 161585444614 297437 573001 473583

26163 34984 61151 489168195 22790 14120 4612

307 836 1404 16540439 439 45723 43570 net sales 2,157,767 2,533,603 2,685,176 3,568,352

60563 61446 0 7007 5993.797 7037.786 7458.822 9912.08929130 40859 26037 15132 0.363209 0.043622 0.112082 0.141645

961702 918383 1168958 1208278 0.363209 0.043622 0.112082 0.1416453533456 3490911 3805687 3754430

750000 750000 750000 750000360000 360000 360000 360000404477 415650 530505 616933764477 775650 890505 976933

643372 643372 749059 749059

0 0 0 0584158 50000 18750 172222

0 750000 583333 416666217438 350000 272222 194444

913 491 0 0 431977 442930 294969 130143

246640 294525 357528 316806 739251 584158 50000 187501049149 1445016 1231833 1100138 0 0 750000 583333

261187 217438 350000 272222190038 221291 445311 321693 1432415 1244526 1444969 1004448

51006 60191 72387 58724442930 294969 130143 262466 long term debt 2432853 2046122 2594969 1878753392484 50422 276193 285417

0 0 10256 01076458 626873 934290 928300

0 0 0 0

3533456 3490911 3805687 3754430

10161585 658554

3,081,2888559.1331.9324391.932439

262466

172222416666194444

1045798

1829130

Ittehad Chemicals Limited Statement of Cash flows CC 4

2006 2007 2008Cash flow from operating activitiesProfit before tax 166,716 234795 129239Adjustments for items not involving movement of funds:Depreciation 151,281 194701 181901Ammortization of intangible assets 0 167 655Provision for gratuity 451 523 1600Gain/ loss on sale of fixed assets -49 -361 53Gain on sale of investment 0 -4941 390Gain/Loss on foreign exchange 0 -47 -156Gain/Loss on sale of Shares 0 0 0Amortization of deferred cost 850 850 901Provision for diminution in value of investment 0 0 0Provision for doubtful advances and deposits 326 0 0Provision for doubtful debts 3108 757 1261Advances and deposits written off 0 0 0Bad debts written off 0 0 0Financial charges 142055 207791 212824Net cash flow before working capital changes 464738 634235 528668

Decrease / (Increase) in current assetsStores, spares and loose tools -27003 11790 -25251Stock in trade -51858 42332 -42050Trade debts -32399 -239244 146026Loans and advances 97194 -2962 -8821Trade deposits and short term prepayments -1299 -2990 -14595Other recievables 6787 1870 -529Tax refunds due from Government 53471 0 0

44893 -189204 54780

Increase/Decrease in current liabilitiesTrade and other liabilities 34782 -38979 29766Cash generated from operations 544413 406052 613214Taxes paid -1696 -665 -17085Gratuity paid -421 -232 0Financial Charges paid 0 0 0Net cash inflow from operating activities 542296 405155 596129

CASH FLOW FROM INVESTING ACTIVITIESAdditions to operating fixed assets -1,336,357 -39690 -138911Transfer from leased to owned assets 0 0 0

Additions to intangible asstes 0 -1705 -3258transfer from capital work in progress -1,278,189 36414 24421transfer from investment properties 0 0 11190Additions to capital work in progress -495,011 -59937 -81120Additions to investment properties 0 -82140 0Proceeds from sale of fixed assets 90 570 228Long term investments -1,000 -63400 0Long term deposits 0 453 2730Net cash outflow from investing activities -554,089 -209435 -184720

CASH FLOW FROM FINANCING ACTIVITIESRepayment of redeemable capital -83,267 -83266 -83266Proceeds from long term financing 360,000 350000 750000Repayments of long term financing -166,649 -490288 -699253Repayment of long term diminishing musharaka 0 0 0Proceeds from long term murabaha 150,000 50000 350000Repayments of long term murabaha -12,500 -76312 -311188Liabilities against assets subject to finance lease 0 -85 -373Dividends paid 0 0 -54000Financial charges paid -131,489 -185305 -203639Short term borrowings 72,580 10953 -147961Net cash inflow/outflow from financing activities 188,675 -424303 -399680Net increase/decrease in cash and cash equivalents 176,882 -228583 11729

Cash and cash equivalents at the beginning of the year 80,831 257713 29130Cash and cash equivalents at the end of the year 257,713 29130 40859

Ittehad Chemicals Limited Statement of Cash flows CC 4

2009 2010

276657 132083

188094 1786821823 19981962 5307-394 1792

-7750 -3550-253 190

0 -4690 00 00 0

2955 31550 0

646 0239586 204179703326 532367

-26533 -9554338603 -55853

-278912 96073-25815 12235

8318 9508-568 -15136

0 0-284907 -48716

226927 -138870645346 344781-22422 -36556

-507 -608-227390 -217842395027 89775

-60167 -488280 0

-992 -1500 00 0

-57313 -1404100 0

710 101785-23000 477

154 -10128-140608 -97254

0 00 194444

-50000 -312500 -1666670 00 -77778

-415 -498-54000 -54000

0 0-164826 132323-269241 -3426

-14822 -10905

40859 2603726037 15132

Ittehad Chemicals Limited 5 year growth rates CC 5

Per share Years 6-10

Sales 4.44%Net Income -0.45%DividendsEquity 6.75

Ittehad Chemicals Limited Common Size Income Staments CC 6

2010 As % of Sales 2009Sales 3,081,288 100 3,568,352Cost of sales 2,469,963 80 2,747,957Gross profit 611,325 20 820,395Selling and distribution expenses 179,504 6 204,213General and administrative expenses 106,351 3 100,292Other operating expenses 12,899 0 20,620Other operating income 20,141 1 13,223

278,613 9 311,902

Operating Profit 332,712 11 508,493Financial charges 204,179 7 239,586Fair value loss/gain on investment property 3,550 0 7,750Profit before Taxation 132,083 4 276,657Taxation 8,723 0 107,481Profit after Taxation 140,806 5 169,176

Ittehad Chemicals Limited Common Size Income Staments CC 6

As % of Sales 2008 As % of Sales 2007 As % of Sales 2006100 2,685,176 100 2,533,603 100 2,157,767

77 2,137,311 80 1,911,635 75 1,692,38623 547,865 20 621,968 25 465,381

6 139,213 5 118,521 5 102,2173 72,261 3 60,134 2 56,4221 10,246 0 12,547 0 9,3260 16,308 1 6,879 0 11,3559 205,412 8 184,323 7 156,610

14 342,453 13 437,645 17 308,7717 212,824 8 207,791 8 142,0550 390 0 4,941 0 08 129,239 5 234,795 9 166,7163 63,631 2 97,482 4 47,2025 65,608 2 137,313 5 119,514

As % of Sales100

78.4322867121.567713294.7371657832.6148328340.4322060720.5262384687.257966222

14.309747076.583426292

07.7263207752.1875392485.538781527

Ittehad Chemicals Limited Common-Size Balance Sheets CC7

2006ASSETSNON CURRENT ASSETSOperating fixed assets 2510171Capital work in progress 24156

2534327Intangible Assets 0Investment Properties 0Long term investments 1817Deferred cost 1751Long term deposits 14658

2552553

CURRENT ASSETSStores, spares and loose tools 301796Stock in trade 144617Trade debts 201342Loans and advances 21572Trade deposits and short term prepayments 5205Other receivables 2177Tax refunds due from Government 5974Taxation - net 67550Cash and bank balances 257713

1007946TOTAL ASSETS 3560499

EQUITY AND LIABILITIESSHARE CAPITAL AND RESERVESAuthorized share capital 75,000,000 (2005: 75,000,000) shares of Rs. 10/- each 750000Issued, subscribed and paid up capital 300000Reserves 326839

626839

SURPLUS ON REVALUATION OF FIXED ASSETS 638574

NON CURRENT LIABILITIESRedeemable capital 83266Long term financing 739251Long term diminishing musharaka 0Long term murabaha 261187Liabilities against assets sunject to finance lease 0

Deferred liabilities 1699211253625

CURRENT LIABILITIESTrade and other payables 21094Mark up accrued 28520Short term borrowings 431977Current portion of long term liabilities 359870Provision for taxation - net 0

1041461CONTINGENCIES AND COMMITMENTS 0

TOTAL EQUITY AND LIABILITIES 3560499

Ittehad Chemicals Limited Common-Size Balance Sheets CC7

As % of TA 2007 As % of TA 2008 As % of TA 2009 As % of TA 2010

70.500539391 2,359,749 66.78303055 2316478 66.3574064 2422693 63.65980702 22992110.6784442293 47679 1.349358815 104377 2.98996451 32919 0.86499494 54380

71.17898362 2407428 68.13238937 2420855 69.3473709 2455612 64.52480196 23535910 1538 0.043526791 4141 0.11862233 3310 0.086975098 14620 82140 2.324636277 70950 2.03242076 78700 2.06795777 0

0.0510321727 65542 1.854897868 65105 1.86498596 87786 2.306705728 822500.0491785 901 0.025499115 0 0 0 0 87400

0.4116838679 14205 0.402014345 11475 0.32871076 11321 0.297475857 2144971.690878161 2571754 72.78296376 2572528 73.692168 2636729 69.28391641 2546152

8.4762276299 290006 8.207432044 315257 9.03079454 341790 8.98103286 4373334.0617059575 102285 2.894757993 144335 4.13459409 105732 2.778263162 1615855.6548815208 444614 12.58297825 297437 8.52032607 573001 15.05644053 4735830.6058701322 26163 0.740436558 34984 1.00214529 61151 1.606832091 489160.1461873743 8195 0.23192591 22790 0.65283818 14120 0.371023681 46120.0611431151 307 0.008688378 836 0.0239479 1404 0.036892156 165400.1677854705 439 0.012424097 439 0.01257551 45723 1.201438794 435701.8972059815 60563 1.713987665 61446 1.76017091 0 0 70077.2381146575 29130 0.824405341 40859 1.17043946 26037 0.684160311 1513228.309121839 961702 27.21703624 918383 26.307832 1168958 30.71608359 1208278

100 3533456 100 3490911 100 3805687 100 3754430

21.064463155 750000 21.2256782 750000 21.4843633 750000 19.7073485 7500008.4257852621 360000 10.18832554 360000 10.3124944 360000 9.459527281 3600009.1795840976 404477 11.44706486 415650 11.9066341 530505 13.93979589 616933

17.60536936 764477 21.63539039 775650 22.2191285 890505 23.39932317 976933

17.934957993 643372 18.20800938 643372 18.429917 749059 19.68262235 749059

2.3386047855 0 0 0 0 0 0 020.762567269 584158 16.53219964 50000 1.43229088 18750 0.492683713 172222

0 0 0 750000 21.4843633 583333 15.32792897 4166667.3356852509 217438 6.153692023 350000 10.0260362 272222 7.153031765 194444

0 913 0.025838726 491 0.0140651 0 0 0

4.7723928584 246640 6.980135029 294525 8.43690945 357528 9.39457186 31680635.209250164 1049149 29.69186541 1445016 41.3936649 1231833 32.3682163 1100138

0.5924450477 190038 5.378247246 221291 6.33906164 445311 11.70119876 3216930.8010113189 51006 1.443515923 60191 1.72422041 72387 1.902074448 5872412.132484801 442930 12.53531953 294969 8.44962819 130143 3.419697942 26246610.107291141 392484 11.10765211 50422 1.44437942 276193 7.257375607 285417

0 0 0 0 0 10256 0.269491422 029.250422483 1076458 30.46473481 626873 17.9572897 934290 24.54983818 928300

0 0 0 0 0 0 0 0

100 3533456 100 3490911 100 3805687 100 3754430

As % of TA

61.239948541.448422264

62.68837080.038940665

02.1907453332.3279166210.57129843967.81727186

11.648452634.30384905312.613978691.302887522

0.122841550.4405462351.1604957340.1866328580.40304387132.18272814

100

19.976401219.58867258116.4321348426.02080742

19.95133749

04.58716769311.097982925.179055143

0

8.43819168329.30239743

8.5683579131.56412558

6.9908348277.602139339

024.72545766

0

100

Ittehad Chemicals Limited Trend Index Of Selected Accounts (Year 2006 = 100%) CC 8

2010 As % of 06 2009 As % of 06

Cash and bank balances 257713 1703.0994 29130 192.50594766Other receivables 2177 13.162031 307 1.8561064087Stores, spares and loose tools 301796 69.008284 290006 66.312398104Totall Current Assets 1007946 83.420041 961702 79.592775835Total Current Liabilities 1041461 112.19013 1076458 115.9601422Operating fixed assets 2510171 109.17532 2,359,749 102.63299019Long-term debt (total non-current liabilities) 1253625 113.95161 1049149 95.365217818Total Liabilities 2933660 105.62244 2768979 99.693321001Shareholder's Equity 626839 64.16397 764477 78.25275633Sales 3,081,288 142.79985 3,568,352 165.3724429Cost of sales -2,469,963 145.94561 -2,747,957 162.37176389Selling and distribution expenses -179,504 175.61071 -204,213 199.7837933General and administrative expenses -106,351 188.49208 -100,292 177.75335862Total costs & expenses -258,472 177.94362 -298,679 205.62390279Earnigs Before Taxes 132,083 79.226349 276,657 165.94508026Net Income 140,806 117.81549 169,176 141.55329083

Ittehad Chemicals Limited Trend Index Of Selected Accounts (Year 2006 = 100%) CC 8

2008 As % of 06 2007 As % of 06 2006 = 100%

40859 270.0171821 26037 172.0658208 15132836 5.054413543 1404 8.488512696 16540

315257 72.08625921 341790 78.15326079 437333918383 76.00759097 1168958 96.74578201 1208278626873 67.52913929 934290 100.6452655 928300

2316478 100.7509968 2422693 105.370625 22992111445016 131.3486126 1231833 111.9707709 11001382715261 97.75927751 2915182 104.9571611 2777497

775650 79.39643763 890505 91.15312923 9769332,685,176 124.4423517 2,533,603 117.4178213 2,157,767

-2,137,311 126.2898062 -1,911,635 112.9550233 -1,692,386-139,213 136.1935882 -118,521 115.9503801 -102,217

-72,261 128.0723831 -60,134 106.578994 -56,422-189,104 130.1876011 -177,444 122.1603387 -145,255129,239 77.52045395 234,795 140.8353127 166,716

65,608 54.89566076 137,313 114.8928159 119,514

Ittehad Chemical limited Per Share Results CC 9

2006 2007 2008Sales 7.192557 7.037786 7.458822Net Income 0.39838 0.381425 0.182244Dividends 0 0 0Book Value per share 2.089463 2.123547 2.154583Average Shares outstanding 300000 360000 360000

Ittehad Chemical limited Per Share Results CC 9

2009 20109.912089 8.5591330.469933 0.391128

0 02.473625 2.713703

360000 360000

Ittehad Chemicals Limited Common-Size Statement of Cash flows CC 10

2006 As % of Inflows 2007

CASH FLOW FROM OPERATING ACTIVITIESProfit before tax 166,716 9.34 234795Adjustments for items not involving movement of funds:Depreciation 151,281 8.48 194701Ammortization of intangible assets 0 0.00 167Provision for gratuity 451 0.03 523Gain/ loss on sale of fixed assets -49 0.00 -361Gain on sale of investment 0 0.00 -4941Gain/Loss on foreign exchange 0 0.00 -47Gain/Loss on sale of Shares 0 0.00 0Amortization of deferred cost 850 0.05 850Provision for diminution in value of investment 0 0.00 0Provision for doubtful advances and deposits 326 0.02 0Provision for doubtful debts 3108 0.17 757Advances and deposits written off 0 0.00 0Bad debts written off 0 0.00 0Financial charges 142055 7.96 207791Net cash flow before working capital changes 464738 26.05 634235

Decrease / (Increase) in current assetsStores, spares and loose tools -27003 -1.51 11790Stock in trade -51858 -2.91 42332Trade debts -32399 -1.82 -239244Loans and advances 97194 5.45 -2962Trade deposits and short term prepayments -1299 -0.07 -2990Other recievables 6787 0.38 1870Tax refunds due from Government 53471 3.00 0

44893 2.52 -189204

Increase/Decrease in current liabilitiesTrade and other liabilities 34782 1.95 -38979Cash generated from operations 544413 30.51 406052Taxes paid -1696 -0.10 -665Gratuity paid -421 -0.02 -232Financial Charges paid 0 0.00 0Net cash inflow from operating activities 542296 30.40 405155

CASH FLOW FROM INVESTING ACTIVITIESAdditions to operating fixed assets -1,336,357 -74.90 -39690Transfer from leased to owned assets 0 0.00 0

Additions to intangible asstes 0 0.00 -1705transfer from capital work in progress -1,278,189 -71.64 36414transfer from investment properties 0 0.00 0Additions to capital work in progress -495,011 -27.75 -59937Additions to investment properties 0 0.00 -82140Proceeds from sale of fixed assets 90 0.01 570Long term investments -1,000 -0.06 -63400Long term deposits 0 0.00 453Net cash outflow from investing activities -554,089 -31.06 -209435

CASH FLOW FROM FINANCING ACTIVITIESRepayment of redeemable capital -83,267 -4.67 -83266Proceeds from long term financing 360,000 20.18 350000Repayments of long term financing -166,649 -9.34 -490288Repayment of long term diminishing musharaka 0 0.00 0Proceeds from long term murabaha 150,000 8.41 50000Repayments of long term murabaha -12,500 -0.70 -76312Liabilities against assets subject to finance lease 0 0.00 -85Dividends paid 0 0.00 0Financial charges paid -131,489 -7.37 -185305Short term borrowings 72,580 4.07 10953Net cash inflow/outflow from financing activities 188,675 10.58 -424303Net increase/decrease in cash and cash equivalents 176,882 9.91 -228583Cash and cash equivalents at the beginning of the year 80,831 4.53 257713Cash and cash equivalents at the end of the year 257,713 14.44 29130


As % of Inflows 2008 As % of Inflows 2009 As % of Inflows 2010 As % of Inflows

15.148 129239 5.2613 276657 16.954 132083 9.308

12.561 181901 7.4052 188094 11.527 178682 12.5920.011 655 0.0267 1823 0.112 1998 0.1410.034 1600 0.0651 1962 0.120 5307 0.374

-0.023 53 0.0022 -394 -0.024 1792 0.126-0.319 390 0.0159 -7750 -0.475 -3550 -0.250-0.003 -156 -0.0064 -253 -0.016 190 0.0130.000 0 0.0000 0 0.000 -469 -0.0330.055 901 0.0367 0 0.000 0 0.0000.000 0 0.0000 0 0.000 0 0.0000.000 0 0.0000 0 0.000 0 0.0000.049 1261 0.0513 2955 0.181 3155 0.2220.000 0 0.0000 0 0.000 0 0.0000.000 0 0.0000 646 0.040 0 0.000

13.406 212824 8.6641 239586 14.682 204179 14.38940.918 528668 21.5221 703326 43.102 532367 37.517

0.761 -25251 -1.0280 -26533 -1.626 -95543 -6.7332.731 -42050 -1.7119 38603 2.366 -55853 -3.936

-15.435 146026 5.9447 -278912 -17.092 96073 6.770-0.191 -8821 -0.3591 -25815 -1.582 12235 0.862-0.193 -14595 -0.5942 8318 0.510 9508 0.6700.121 -529 -0.0215 -568 -0.035 -15136 -1.0670.000 0 0.0000 0 0.000 0 0.000

-12.207 54780 2.2301 -284907 -17.460 -48716 -3.433

-2.515 29766 1.2118 226927 13.907 -138870 -9.78626.197 613214 24.9639 645346 39.549 344781 24.297-0.043 -17085 -0.6955 -22422 -1.374 -36556 -2.576-0.015 0 0.0000 -507 -0.031 -608 -0.0430.000 0 0.0000 -227390 -13.935 -217842 -15.352

26.139 596129 24.2684 395027 24.208 89775 6.327

-2.561 -138911 -5.6551 -60167 -3.687 -48828 -3.4410.000 0 0.0000 0 0.000 0 0.000

-0.110 -3258 -0.1326 -992 -0.061 -150 -0.0112.349 24421 0.9942 0 0.000 0 0.0000.000 11190 0.4555 0 0.000 0 0.000

-3.867 -81120 -3.3024 -57313 -3.512 -140410 -9.895-5.299 0 0.0000 0 0.000 0 0.0000.037 228 0.0093 710 0.044 101785 7.173

-4.090 0 0.0000 -23000 -1.410 477 0.0340.029 2730 0.1111 154 0.009 -10128 -0.714

-13.512 -184720 -7.5200 -140608 -8.617 -97254 -6.854

-5.372 -83266 -3.3898 0 0.000 0 0.00022.580 750000 30.5325 0 0.000 194444 13.703

-31.631 -699253 -28.4666 -50000 -3.064 -31250 -2.2020.000 0 0.0000 0 0.000 -166667 -11.7453.226 350000 14.2485 0 0.000 0 0.000

-4.923 -311188 -12.6685 0 0.000 -77778 -5.481-0.005 -373 -0.0152 -415 -0.025 -498 -0.0350.000 -54000 -2.1983 -54000 -3.309 -54000 -3.805

-11.955 -203639 -8.2901 0 0.000 0 0.0000.707 -147961 -6.0235 -164826 -10.101 132323 9.325

-27.374 -399680 -16.2710 -269241 -16.500 -3426 -0.241-14.747 11729 0.4775 -14822 -0.908 -10905 -0.76816.626 29130 1.1859 40859 2.504 26037 1.835

1.879 40859 1.6634 26037 1.596 15132 1.066


Ittehad Chemicals Limited Analysis of Cash Flow Ratios CC 11

cash flow adequacy ratio = 6 year sum of sources from casf operations / 6 year sum of capital expenditures, inventory additions & cash dividends

2028382 / (1623953 + 833791 ) + (54000 + 54000 + 54000) + (-658554)2028382 / 1961190 = 1.034

Cash flow adequacy ratio provides insight into whether Ittehad Chemicals generates sufficient cash from operations to cover the capital expenditures, investment in inventories and cash dividends.Ittehad Chemicals cash flow adequacy ratio for the five years, starting from 2006 to 2010, is 1.034. It implies that funds generated from operations are sufficent to cover these items.

cash reinvestment ratio = (Cash provided by operations - Dividends) / (Total Assets + Accumulated Depriciation - Current Liabilities)

Year 10 (89775 - 54000) / (3754430 + 178682 - 928300) = 1.19%

Year 9 (395027 - 54000) / (3805687 + 188094 - 1231833) = 12.347%

Year 8 (596129 - 54000 ) / (3490911 + 181901 - 626873) = 17.79%

Year 7 405155 / (3533456 + 194701 - 1076458) = 15.27%

Year 6

Year 2006 to 2010 Average = 13.379%

Cash reinvestment ratio provides insight into the amount of cash retained and reinvested into the company for both asset replacement & growth.Ittehad Chemicals recent five year average is 13.379% which is a satisfactory reinvestment rate. Year 2010 is an exception beacause there is considerable decrease in the reinvestment ratio of this year.This is mainly due to the decrease in cash provided by the operations in year 2010

542296 / (3560499 + 151281 - 1041461) = 20.30%

Ittehad Chemicals Limited Analysis of Cash Flow Ratios CC 11

cash flow adequacy ratio = 6 year sum of sources from casf operations / 6 year sum of capital expenditures, inventory additions & cash dividends

2028382 / (1623953 + 833791 ) + (54000 + 54000 + 54000) + (-658554)

Cash flow adequacy ratio provides insight into whether Ittehad Chemicals generates sufficient cash from operations to cover the capital expenditures, investment in inventories and cash dividends.Ittehad Chemicals cash flow adequacy ratio for the five years, starting from 2006 to 2010, is 1.034. It implies that funds generated from operations are sufficent to cover these items.

cash reinvestment ratio = (Cash provided by operations - Dividends) / (Total Assets + Accumulated Depriciation - Current Liabilities)

(89775 - 54000) / (3754430 + 178682 - 928300) = 1.19%

(395027 - 54000) / (3805687 + 188094 - 1231833) = 12.347%

(596129 - 54000 ) / (3490911 + 181901 - 626873) = 17.79%

405155 / (3533456 + 194701 - 1076458) = 15.27%

Year 2006 to 2010 Average = 13.379%

Cash reinvestment ratio provides insight into the amount of cash retained and reinvested into the company for both asset replacement & growth.Ittehad Chemicals recent five year average is 13.379% which is a satisfactory reinvestment rate. Year 2010 is an exception beacause there is considerable decrease in the reinvestment ratio of this year.

542296 / (3560499 + 151281 - 1041461) = 20.30%

Ittehad Chemicals Limited Short Term Liquidity Analysis CC 12

Measures Years 2006 2007Current ratio 0.967819 0.893395Acid test ratio 0.249544 0.027346Accounts Receivable turnover 991.1654 2039.938Inventory turnover 11.702 15.4847Days' sales in receivables 0.363209 0.043622Days' sales in inventory 30.76 19.26Approximate conversion period 31.1232 19.3036Cash to current assets 0.072381 0.008244Cash to current liabilties 0.112289 0.013704Working capital -33515 -114756Days' purchases in accounts payable 4.487 35.788Average net trade cycle 26.63621 16.4844Cash provided by operations to average currrent liabilities 0.520707 0.382597


2008 2009 20101.465022 1.251173 1.3016030.066513 0.029371 0.0341184698.471 3186.029 343.4338

17.3328 21.977 18.4790.112082 0.141645 1.932439

24.311 13.8515 23.5524.42308 13.99315 25.482440.011704 0.006842 0.004030.019721 0.01202 0.00746

291510 234668 27997837.27336 58.3386 46.88713

12.8503 44.3455 21.40470.699957 0.506068 0.096398

Ittehad Chemicals Limited Common-Size Analysis of Current Assets and Current Liabilities CC 13

2006 As % of TCA 2007 As % of TCACURRENT ASSETSStores, spares and loose tools 301796 29.9416833838 290006 30.1554951534Stock in trade 144617 14.3476932296 102285 10.6358310579Trade debts 201342 19.9754748766 444614 46.2319928627Loans and advances 21572 2.14019401833 26163 2.72048929918Trade deposits and short term prepayments 5205 0.51639671173 8195 0.85213506887Other receivables 2177 0.21598379278 307 0.03192257061Tax refunds due from Government 5974 0.59269048143 439 0.04564823615Taxation - net 67550 6.7017479111 60563 6.29748092444Cash and bank balances 257713 25.5681355946 29130 3.02900482686Total Current assets 1007946 100 961702 100

CURRENT LIABILITIES 2006 As % of TCL 2007 As % of TCLTrade and other payables 21094 2.02542389969 190038 17.6540097245Mark up accrued 28520 2.73846068168 51006 4.73831770492Short term borrowings 431977 41.4779814127 442930 41.1469839046Current portion of long term liabilities 359870 34.5543424094 392484 36.460688666Provision for taxation - net 0 0 0 0Total Current Liabilities 1041461 100 1076458 100

Ittehad Chemicals Limited Common-Size Analysis of Current Assets and Current Liabilities CC 13

2008 As % of TCA 2009 As % of TCA 2010 As % of TCA

315257 34.327399353 341790 29.238860592 437333 36.19473333144335 15.716209904 105732 9.0449785193 161585 13.37316412297437 32.387032425 573001 49.01809988 473583 39.19487072

34984 3.8093039614 61151 5.2312401301 48916 4.04840607922790 2.4815354814 14120 1.2079133724 4612 0.381700238

836 0.0910295596 1404 0.1201069671 16540 1.368890272439 0.0478014075 45723 3.9114322328 43570 3.605958231

61446 6.6906726279 0 0 7007 0.57991621140859 4.4490152801 26037 2.2273683058 15132 1.252360798

918383 100 1168958 100 1208278 100

2008 As % of TCL 2009 As % of TCL 2010 As % of TCL221291 35.300770651 445311 47.663038243 321693 34.65399117

60191 9.6017853696 72387 7.7478084963 58724 6.325972207294969 47.054028487 130143 13.929615002 262466 28.27383389

50422 8.0434154925 276193 29.561806291 285417 30.746202740 0 10256 1.0977319676 0 0

626873 100 934290 100 928300 100

Ittehad Chemicals Limited Analysis of Capital Structure CC 16

2006 2007 2008 2009 2010

Redeemable capital 83266 0 0 0 0Long term financing 739251 584158 50000 18750 172222Long term diminishing musharaka 0 0 750000 583333 416666Long term murabaha 261187 217438 350000 272222 194444Liabilities against assets sunject to finance lease 0 913 491 0 0Deferred liabilities 169921 246640 294525 357528 316806Total Long term Liabilities 1253625 1049149 1445016 1231833 1100138Current Liabilities 1041461 1076458 626873 934290 928300Total liabilities 2295086 2125607 2071889 2166123 2028438

Total Equity Capital 1265413 1407849 1419022 1639564 1725992Total Liabilities & Equity Capital 3560499 3533456 3490911 3805687 3754430

g


2006 2007 2008 2009 2010

Measures

Total debt to equity 1.131974 0.883991 1.018285 0.612631 0.605911Total debt ratio 0.530951 0.469212 0.50453 0.379895 0.377301Long term Debt to equity 3698266 3454884 4014482 3518317 3555122Equity to total debt 0.883412 1.131233 0.982043 1.632304 1.650407Fixed assets to equity 1.9836 1.6761 1.63244 1.477645 1.33211Current Liabilities to total liabilities 0.453779 0.506424 0.302561 0.431319 0.457643Earnings to fixed charges 2.17360 2.10618 1.60909 2.12238 1.62951Cash flow to fixed charges


Ittehad Chemicals Return on Invested Capital Ratios CC 19

2006 2007 2008

Return on net operating assets - (RNOA) 7.545 10.528 7.511Return on common equity - (ROCE) 19.066 19.738 8.519Return on long term debt & equity 0.403 0.561 0.438Equity growth rate 19.066 19.738 1.507

Disaggregation of ROCERNOA 7.545 10.528 7.511LEV 5.68 5.098 4.56Spread ( (ROCE - RNOA) / LEV)) 2.028 1.807 0.221ROE {RNOA + (LEV * SPREAD)} 19.066 19.738 8.519

Disaggreagation of RNOANOPAT margin 8.585 10.364 7.65NOA turnover 0.8788 1.015 0.9816RNOA (margin * turnover) 7.544 10.519 7.509

2009 2010

10.042 6.51520.307 15.08

0.86 0.58313.825 9.296

10.042 6.5154.379 4.0482.344 2.116

20.307 15.08

8.55 6.471.174 1.005

10.038 6.502

Ittehad Chemicals Asset Utilization Ratios CC 20

Based on year end amounts 2006 2007 2008 2009 2010Sales to Cash and equivalents 8.373 86.976 65.718 137.049 203.627Sales to receivables 991.165 8252.8 3211.933 2541.561 186.293Sales to inventories 14.924 24.77 18.604 33.749 19.069Sales to working capital -64.382 -22.078 9.211 15.206 11.005Sales to fixed asstes 0.86 1.074 1.159 1.473 1.34Sales to other assets 89.326 19.288 14.962 31.048 55.179Sales to short-term liabilities 4.995 5.72 9.103 27.419 11.74

Ittehad Chemicals Analysis of Profir Margin Ratios CC 21

Profit Margins 2006 2007 2008 2009 2010Gross Profit margin 21.567 24.548 20.4 22.99 19.839Operating profit margin 14.309 17.273 12.753 14.25 10.797Net profit margin 5.538 5.419 2.443 4.741 4.569

cc11 formulae

6 7 8 9 10

cgs 1,692,386 1,911,635 2,137,311 2,747,957 2,469,963avg inv 144617 123451 123310 125033.5 133658.54th 11.70254 15.48497 17.33283 21.97777 18.47966

sales 2,157,767 2,533,603 2,685,176 3,568,352 3,081,288

cgs/360 4701.072 5310.097 5936.975 7633.214 6861.008

6th 30.76 19.26 24.311 13.8515 23.55

cash 257713 29130 40859 26037 15132

ar 2177 307 836 1404 16540

ta 3560499 3533456 3490911 3805687 3754430

8th 0.072381 0.008244 0.011704 0.006842 0.00403

Liabilities 2295086 2125607 2071889 2166123 2028438

9th 0.112289 0.013704 0.019721 0.01202 0.00746

ca 1007946 961702 918383 1168958 1208278cl 1041461 1076458 626873 934290 928300

working capital -33515 -114756 291510 234668 279978

ap 21094 190038 221291 445311 321693

11th 4.487 35.788 37.27336 58.3386 46.88713

12th 125700 -87446 -76120 -338175 -143568

13th

cash frm oprts 542296 405155 596129 395027 89775

avg lib 1041461 1058960 851665.5 780581.5 931295

13th 0.520707 0.382597 0.699957 0.506068 0.096398

CC20

sales 2,157,767 2,533,603 2,685,176 3,568,352 3,081,288cash & equivalents 257713 29130 40859 26037 15132receivables 2177 307 836 1404 16540inventories 144617 102285 144335 105732 161585working capital -33515 -114756 291510 234668 279978fixed asstes 2510171 2,359,749 2316478 2422693 2299211other asstes (intangible asstes + invest propts + cap 24156 131357 179468 114929 55842short term liabilities 431977 442930 294969 130143 262466

cash & equivalents 8.373 86.976 65.718 137.049 203.627receivables 991.165 8252.779 3211.933 2541.561 186.293inventories 14.921 24.770 18.604 33.749 19.069working capital -64.382 -22.078 9.211 15.206 11.005fixed asstes 0.860 1.074 1.159 1.473 1.340other asstes 89.326 19.288 14.962 31.048 55.179short term liabilities 4.995 5.720 9.103 27.419 11.740

cash & equivalents 8.373 86.976 65.718 137.049 203.627receivables 991.165 8252.779 3211.933 2541.561 186.293inventories 14.924 24.77 18.604 33.749 19.069working capital -64.382 -22.078 9.211 15.206 11.005fixed asstes 0.86 1.074 1.159 1.473 1.34other asstes 89.326 19.288 14.962 31.048 55.179short term liabilities 4.995 5.72 9.103 27.419 11.74

intangilble assets 0 1538 4141 3310 1462Investment Properties 0 82140 70950 78700 0Capital work in progress 24156 47679 104377 32919 54380

24156 131357 179468 114929 5584224156 131357 179468 114929 55842

CC21

Net sales 2,157,767 2,533,603 2,685,176 3,568,352 3,081,288Cost of goods sold 1,692,386 1,911,635 2,137,311 2,747,957 2,469,963EBIT 308,771 437,645 342,453 508,493 332,712NI 119,514 137,313 65,608 169,176 140,806

GPm = ( (Sales-CGS) / Sales)Opm = (EBIT/sales) 14.30975 17.27362 12.75347 14.25008 10.79782

NPM = (NI / SAles) 5.538782 5.419673 2.443341 4.741012 4.569712

CC 18

total debt 1432415 1244526 1444969 1004448 1045798equity cap 1265413 1407849 1419022 1639564 1725992

1.131974 0.883991 1.018285 0.612631 0.605911total debt & equity 2697828 2652375 2863991 2644012 2771790

2nd 0.530951 0.469212 0.50453 0.379895 0.377301

long term debt 2432853 2047035 2595460 1878753 1829130

3rd 3698266 3454884 4014482 3518317 3555122

4th 0.883412 1.131233 0.982043 1.632304 1.650407

operating fixd assets 2510171 2,359,749 2316478 2422693 2299211

5th 1.9836 1.6761 1.63244 1.477645 1.33211

6th 0.453779 0.506424 0.302561 0.431319 0.457643

7th EBIT/ int exp

CC196 7 8 9 10

TA 3560499 3533456 3490911 3805687 3754430CL 1041461 1076458 626873 934290 928300PAYBLES 21094 190038 221291 445311 3216931/2 Deferred Income 84960.5 123320 147262.5 178764 158403CL-PAYBLES 1020367 886420 405582 488979 606607CL-PAYBLES + 1/2 Deferred 1105328 1009740 552844.5 667743 765010TA - (CL-PAYBLES + 1/2 Defe 2455172 2523716 2938067 3137944 2989420NOA 2455172 2532716 2938067 3137944 2989420

NOPAT = EBIT (1 - TAX)ebit 308,771 437,645 342,453 508,493 332,712ebit (.6) 185262.6 262587 205471.8 305095.8 199627.2NOPAT = EBIT (1 - TAX) 185262.6 262587 205471.8 305095.8 199627.2

Average NOA 2455172 2493944 2735392 3038006 3063682

RNOA = (nopat / avg noa)*1 7.545809 10.52899 7.511605 10.04263 6.5159247.545 10.528 7.511 10.042 6.515

NFE (nopat - Ni) 65749 125274 139864 135920 58821

SE (TA - TL) 1265413 1407849 1419022 1639564 1725992

equity 626839 764477 775650 890505 976933Avg common equity 626839 695658 770063.5 833077.5 933719

626839 695658 770063.5 833077.5 933719NI 119,514 137,313 65,608 169,176 140,806ROCE = (NI - P DIV) / avg CE 19.06614 19.73858 8.519817 20.30735 15.08013

19.066 19.738 8.519 20.307 15.0819.066 19.738 8.519 20.307 15.08

Interest expense (other exp -9,326 -12,547 -10,246 -20,620 -12,8999326 12547 10246 20260 12899

int exp (.6) 5595.6 7528.2 6147.6 12156 7739.45595.6 7528.2 6147.6 12156 7739.4

NI + int exp 14921.6 20075.2 16393.6 32416 20638.4

long term lib 2432853 2047035 2595460 1878753 1829130avg long term lib 2432853 2239944 2321248 2237107 1853942

2432853 2239944 2321248 2237107 1853942avg long term lib + avg equit 3698266 3576575 3734683 3766400 3536720

3698266 3576575 3734683 3766400 3536720

equity 1265413 1407849 1419022 1639564 1725992avg equity 1265413 1336631 1413436 1529293 1682778

1265413 1336631 1413436 1529293 1682778return on ltd and equity 0.403476 0.561297 0.438956 0.860663 0.583546return on ltd and equity 0.403 0.561 0.438 0.86 0.583

div paid 0 0 54000 54000 54000NI - Div paid 119,514 137,313 11,608 115,176 86,806Equity grwth rate 19.06614 19.73858 1.507408 13.82536 9.296801

19.066 19.738 1.507 13.825 9.296

TA 3560499 3533456 3490911 3805687 3754430avg TA 3560499 3546978 3512184 3648299 3780059LEV = (avg assets / avg com 5.680085 5.098737 4.560901 4.379303 4.04839

5.68 5.098 4.56 4.379 4.048

sales 2,157,767 2,533,603 2,685,176 3,568,352 3,081,288NOPAT MARGIN (nopat / sale8.585848 10.36417 7.652079 8.550048 6.478693

8.585 10.364 7.65 8.55 6.47

NOA turnover (sales / avg no 0.878866 1.015902 0.981642 1.174571 1.0057470.8788 1.015 0.9816 1.174 1.005

Ittehad Chemicals

Documents

loose tools

gratuity gain

financing

bad debts

foreign exchange

investment

investment

short term