D.G Khan Cement Company Limited Income Statement

D.
G Khan Cement Company Limited

Income Statement
INCOME STATEMENT
PRO-FORMA STATEMENT
Sales-net
Cost of sales
2006
7,955,665
3,992,822
(Amount in '000')
2007
2008
2009
6,419,625
12,445,996 18,038,209
4,387,640
10,530,723 12,358,479
Gross Profit
3,962,843
2,031,985
1,915,273
5,679,730
2,705,360
4,251,958
4,669,755
5,128,604
Administrative expenses
Selling and distribution expenses
Other operating expenses
121,953
34,352
191,850
348,155
104,169
65,122
139,721
309,012
111,658
561,465
581,913
1,255,036
141,852
1,871,517
795,854
2,809,223
172,436
994,418
189,015
1,355,869
195,087
983,588
555,245
1,733,920
214,256
1,080,235
609,804
1,904,295
235,309
1,186,378
669,723
2,091,410
Other operating income

Impairment on investment
294,114
-
479,420
-
847,344
-
770,137
257,386
911,672
-
1,079,053
0
1,144,193
0
1,213,266
0
3,908,802
2,202,393
1,507,581
3,383,258
2,261,163
3,597,091
3,909,653
4,250,460
1,749,837
(8,674)
2,606,358
-
1,902,760
-
2,093,036
0
2,302,340
0
2,532,574
0
(250,930)
776,900
358,403
1,504,055
1,607,314
1,717,886
197,700
251,319
125,381
526,419
562,560
601,260
977,636
1,044,754
1,116,626
Profit from operation

financial Cost
Share of loss of associated companies
450,696
(9,573)
467,759
(14,163)
2010
16,275,354
13,569,994
(Loss) /profit before tax
3,448,533
1,720,471
Taxation
1,030,078
98,000
(Loss)/Profit for the year
2,418,455
1,622,471
(53,230)
525,581
233,022
10.37
6.43
(0.21)
1.63
0.72
Earnings per share -basic and dilluted
(Amount in '000')
2011
2012
2013
17,874,567
19,630,917 21,559,847
13,622,608
14,961,163 16,431,243
2.68
2.86
3.06
Growth Rate Differnece in Inflation effect
0.043
0.05
1.043
1.053
UNIVERSITY OF MANAGEMENT AND TECHNOLOGY (UMT)
D.G KHAN CEMENT COMPANY LIMITED

BALANCE SHEET
Balance Sheet
2006
Pro-Forma Balance Sheet

2007
2008
2009
2010
2011
(Amount in '000')
EQUITY AND LIABILITIES
2012
2013
(Amount in '000')
CAPITAL AND RESERVES

Authorised Capital
Ordinary shares of Rs 10 each
Preference shares of Rs 10 each
Issued subscribed and paid up capital

Share deposite money
Reserves
Accumulated profit
2,500,000
500,000
3,000,000
9,500,000
500,000
10,000,000
9,500,000
500,000
10,000,000
9,500,000
500,000
10,000,000
9,500,000
500,000
10,000,000
9,500,000
500,000
10,000,000
9,500,000
500,000
10,000,000
9,500,000
500,000
10,000,000
1,843,937
8,351
15,085,354
2,330,558
19,268,200
2,535,412
0
29,630,084
1,757,689
33,923,185
2,535,412
0
27,595,698
-50,853
30,080,257
3,042,494
0
17,401,220
474,728
20,918,442
3,650,993
0
22,160,477
707,750
26,519,220
3,650,993
0
22,160,477
1,685,386
27,496,856
3,650,993
0
22,160,477
2,730,140
28,541,610
3,650,993
0
22,160,477
3,846,766
29,658,236
7,372,468
28,886
33,814
26,572
1,559,000
9,020,740
8,686,447
1,141
79,467
39,862
1,624,000
10,430,917
8,411,051
0
73,890
54,018
1,319,000
9,857,959
4,375,837
0
73,765
78,622
1,441,576
5,969,800
5,089,507
0
81,138
104,029
1,465,960
6,740,634
5,089,507
0
81,138
104,029
1,465,960
6,740,634
5,089,507
0
81,138
104,029
1,465,960
6,740,634
5,089,507
0
81,138
104,029
1,465,960
6,740,634
1,406,869
340,757
2,613,695
1,619,025
35,090
6,015,436
1,027,274
342,612
3,942,972
2,042,281
35,090
7,390,229
1,370,336
364,664
7,597,020
2,687,608
35,090
12,054,718
1,435,420
531,772
9,068,575
4,763,942
35,090
15,834,799
1,679,749
346,425
9,585,642
2,139,283
35,090
13,786,189
2,023,884
596,272
10,350,777
4,154,131
55,352
17,180,417
2,222,751
654,862
11,367,842
4,562,315
60,791
18,868,561
2,441,158
719,208
12,484,844
5,010,608
66,764
20,722,581
34,304,376
51,744,331
51,992,934
42,723,041
47,046,043
51,417,907
54,150,805
57,121,451
NON -CURRENT LIABILITIES

Long term finances
Liabilities against assets subject to finance lease
Long term deposits
Retirement and other benefits
Deferred taxation
CURRENT LIABILITIES
Trade and other payables
Accrude markup
Short term borrowing -secured
Current portion of non -curredt liabilities
Provision for taxation
CONTINGENCIES AND COMMITMENTS
ASSETS
2006
2007
2008
2009
2010
2011
2012
2013
7,521,723
11,759,677
4,482,213
335,810
295,058
24,394,481
22,117,551
1,907,063
8,174,474
196,913
133,376
32,529,377
22,977,894
2,488,307
6,795,961
523,046
5,135
32,790,343
24,345,793
1,750,208
3,172,508
166,940
0
29,435,449
25,307,302
465,650
4,696,922
158,677
0
30,628,551
27,793,992
2,782,331
4,696,922
158,677
0
35,431,921
30,525,023
3,055,722
4,696,922
158,677
0
38,436,344
33,524,405
3,355,976
4,696,922
158,677
0
41,735,980
836,049
226,286
74,165
8,543,763
152,465
77,167
9,909,895
1,496,291
295,140
144,245
16,933,790
229,315
116,173
19,214,954
2,299,250
445,856
366,173
15,082,582
782,358
226,372
19,202,591
2,935,880
899,836
513,966
7,785,968
908,100
243,842
13,287,592
3,017,742
1,036,876
303,949
10,740,972
1,087,161
230,792
16,417,492
3,422,960
873,133
442,659
10,740,972
963,986
285,919
16,729,629
3,759,300
958,927
486,154
10,740,972
1,058,707
314,013
17,318,073
4,128,688
1,053,151
533,924
10,740,972
1,162,735
344,868
17,964,338
34,304,376
51,744,331
51,992,934
42,723,041
47,046,043
52,161,551
55,754,417
59,700,318
743,644
1,603,612
2,578,867
NON - CURRENT ASSETS

Property, plant and equipment
Capital work in progress
Investments
Long term loans,advances and deposits
Assets subject to finance lease
CURRENT ASSETS
Store,spares and loose tools
stock-in-trade
trade debts
Investments
Advances,dposits,prepayments and other receivables
Cash and bank balances
DG KHAN CEMENT COMPANY LIMITED
CASH FLOW STATEMENT

Amount in '000'
Amount in '000'
2006
2007
2008
2009
2010
2011
2012
2013
cash generated from operetions

Finance cost paid
Retirement and other benefits paid
Taxes paid
Net increase(decrese) in long term deposits
4,474,518
-250,029
-7,573
-31,604
5,140
997,019
-466,185
-43,067
-57,759
45,653
1,263,660
-1,727,177
-5,054
-135,780
-5,577
3,829,987
-2,439,250
-6,934
-235,684
-125
3,194,599
-2,088,107
-11,368
-260,492
7,373
3,194,599
-2,093,036
-11,368
-526,419
7,373
3,194,599
-2,302,340
-11,368
-562,560
7,373
3,194,599
-2,532,574
-11,368
-601,260
7,373
Net cash generated from opereting activities
4,190,452
475,611
-609,928
1,147,994
842,005
842,005
842,005
842,005
Capital expenditure including purchase of property,plant and equipment

-9,005,201
Purchase of investment
-167,039
Proceeds from sale of property,plant and equipment
0
Sale proceeds of investments
13,000
Investment -net
0
Net (increase)/ decrease in long term loans,advances and deposits 64,382
Sale proceeds of property,plant and equipment
13,030
Dividend recevied
265,882
Interest received
5,094
-5,095,269
-320,955
0
90
0
138,897
18,608
465,779
3,681
2,698,370
-188,339
0
0
0
-325,502
26,655
820,435
8,333
-1,995,630
38,878
0
0
0
356,106
4,076
707,242
42,205
-1,079,494
-249,445
0
0
0
8,489
16,785
766,398
2,555
-1,079,494
-249,445
0
0
0
8,489
16,785
766,398
2,555
-1,079,494
-249,445
0
0
0
8,489
16,785
766,398
2,555
-1,079,494
-249,445
0
0
0
8,489
16,785
766,398
2,555
Net cash used in investing activites
-8,939,616
-4,789,169
-2,359,788
-924,879
-534,712
-534,712
-534,712
-534,712
0
8,351
4,000,000
-556,883
1,602,666
0
3,332,548
-1,481,302
0
0
3,000,000
-3,178,083
1,014,164
0
300,000
-2,989,690
1,216,988
0
3,050,000
5,104,383
1,216,988
0
3,050,000
5,104,383
1,216,988
0
3,050,000
5,104,383
1,216,988
0
3,050,000
5,104,383
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities

Proceeds from issuance of share capital
Share capital deposit money received
proceeds from long term finances
Repayment of long term finances
DG KHAN CEMENT COMPANY LIMITED
Repayments of liabilities against assets subject to finance leease

Dividend paid
Net cash used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of year
Cash and cash equivalents at the end of year
-96,570
-275,478
-85,932
-344,743
-19,957
-379,093
-1,141
-533
0
-25
0
-25
0
-25
0
-25
3,079,420
3,023,237
-577,133
-1,677,200
-837,410
-837,410
-837,410
-837,410
-1,669,744
-1,290,271
-3,543,849
-1,454,085
-530,117
-530,117
-530,117
-530,117
-866,784
-2,536,528
-3,826,799
-7,370,648
-8,824,733
-8,824,733
-8,824,733
-8,824,733
-2,536,528
-3,826,799
-7,370,648
-8,824,733
-9,354,850
-9,354,850
-9,354,850
-9,354,850
D.G CEMENT COMPANY LIMITED
Sustainable Growth Rate

Amount in '000'
Formula
ROE
Dividend Pay out Ratio
Net Income
Total Equity
N.I / Total Equity
(1 - dividend-payout ratio)
ROE x (1 - dividend-payout ratio)
1 - (ROE x (1 - dividend-payout ratio))
Infation Rate of Pakistan

for 2009 =
Infation Rate of Pakistan
for 2010 =
Difference in Inflation
Rate
2008
2009
2010
(53,230)
525,581
233,022
19,268,200
12.55%
33,923,185
4.78%
30,080,257
-0.18%
20,918,442
2.51%
26,519,220
0.88%
1.63
0.72
10.37
6.43
(0.21)
275,478,000 344,743,000 379,093,000

533,000
25,000
184,393,569 253,541,157 253,541,157 304,249,388 365,099,266
1.49
1.36
1.50
0.0018
0.0001
0.14
0.21
-7.12
0.0011
0.0001
0.86
0.79
8.12
1.00
1.00
12.04%
3.92%
-1.42%
2.57%
0.89%
4.28%
Average Sustainable Growth Rate
Average Dividend Per Share
2007
1,622,471
Earning Per Share

Dividends
Total Ordinary Shares
Dividends Per Share
Sustainable Growth Rate
2006
2,418,455
0.87
15.48%
20.80%
5.32%
INCOME STATEMENT
TREND ANALYSIS
2007
0.68
2008
0.85
2009
0.69
2010
0.83
Average
0.76
0.02
0.01
0.02
0.01
0.05
0.05
0.01
0.10
0.04
0.01
0.06
0.01
0.01
0.06
0.03
Other operarting income

0.07
0
0.07
0
0.04
0
0.06
0
0.06
0.00
Financial Cost
Share of loss of associated
companies
0.04
2.74
0.49
-0.27
0.75
0.00
Taxation
0.35
0.35
0.35
0.35
0.35
Cost of Good Sold

The trend of finance cost is not in sequence so finance cost is increae by 10%
BALANCE SHEET
TREND ANALYSIS
CURRENT ASSETS
Store,spares and loose tools
stock-in-trade
trade debts
Investments
Advances,dposits,prepayments
and other receivables
Cash and bank balances
2007
2008
2009
2010
0.23
0.05
0.02
2.64
0.18
0.04
0.03
1.21
0.16
0.05
0.03
0.43
0.19
0.06
0.02
0.66
Average
0.19
0.05
0.02
1.24
0.04
0.06
0.05
0.07
0.05
0.02
0.02
0.01
0.01
0.02
2007
2008
2009
2010
0.16
0.05
0.61
0.32
0.01
0.11
0.03
0.61
0.22
0.00
0.08
0.03
0.50
0.26
0.00
0.10
0.02
0.59
0.13
0.00
Average
0.11
0.03
0.58
0.23
0.00
2007
2008
2009
2010
0.30
0.20
0.10
0.03
CURRENT LIABILITIES
Trade and other payables
Accrude markup
Short term borrowing -secured
Current portion of non -curredt liabilities
Provision for taxation
CURRENT ASSETS
Capital work in progress
Average
0.16
EFN
2011
2012
2013
TOTAL ASSETS
TOTAL LIABILITIES
EFN
52,161,551
51,417,907
55,754,417
54,150,805
59,700,318
57,121,451
743,644
1,603,612
2,578,867
EFN FOR PLANT AND EQUIP.
(2,486,690)
(2,731,031)
(2,999,382)
EFN (WE NEED MORE FINANCE)
(1,743,046)
(1,127,419)
(420,515)
BUSINESS VALUE
2006
2007
2008
2009
2010
2011
2012
BEFORE
2013
AFTER
TOTAL EQUITY
19,268,200,000
33,923,185,000
30,080,257,000
20,918,442,000
26,519,220,000
27,496,855,883
28,541,609,859
29,658,235,803
TOTAL SHARES
184,393,569
253,541,157
253,541,157
304,249,388
365,099,266
365,099,266
365,099,266
365,099,266
104.49
133.80
118.64
68.75
72.64
75.31
78.17
81.23
TOTAL EQUITY / TOTAL SHARES
2011
Capital Intensity ratio
Fixed assets requried in 2011

Actual Fixed Assets in 2011
EFN
2013
1.55
27,793,992
25,307,302
2,486,690

EFN
1.55
33,524,405
30,525,023
2,999,382
2012

EFN
1.55
30,525,023
27,793,992
2,731,031

SENSITIVITY ANALYSIS
2010
Base Year
16,275,354
13,569,994
Sales-net
Cost of sales
Gross Profit

financial Cost
Taxation
sensitivity Analysis
Change in Net Income

Change in Sale
Sensitivity Analysis Result =
CHANGE IN SALE
30%
15%
(Amount in '000')
21,157,960
18,716,657
13,569,994
13,569,994
-30%
-15%
11,392,748
13,569,994
13,834,051
13,569,994
2,705,360
172,436
994,418
189,015
1,355,869
911,672
-
7,587,966
172,436
994,418
189,015
1,355,869
911,672
-
5,146,663
172,436
994,418
189,015
1,355,869
911,672
-
(2,177,246)
172,436
994,418
189,015
1,355,869
911,672
-
264,057
172,436
994,418
189,015
1,355,869
911,672
-
2,261,163
1,902,760
-
7,143,769
1,902,760
-
4,702,466
1,902,760
-
(2,621,443)
1,902,760
-
(180,140)
1,902,760
-
358,403
125,381
233,022
5,241,009
1,834,353
3,406,656
2,799,706
979,897
1,819,809
(4,524,203)
1,583,471
(2,940,732)
(2,082,900)
729,015
(1,353,885)
(3,173,754)
(4,882,606)
65%
(1,586,907)
(2,441,303)
65%
3,173,634
1,586,787
4,882,606
2,441,303
65%
65%
This result shows that 1% Change in Sale will change Net Income by 65%.

CHANGE IN COST OF GOOD SOLD (CGS)
2010
30%
Sales-net
Cost of sales
(1,365,638)
172,436
994,418
189,015
1,355,869
911,672
(1,809,835)
1,902,760
-
669,861
172,436
994,418
189,015
1,355,869
911,672
225,664
1,902,760
-
6,776,358
172,436
994,418
189,015
1,355,869
911,672
6,332,161
1,902,760
-
4,740,859
172,436
994,418
189,015
1,355,869
911,672
4,296,662
1,902,760
-
358,403
(3,712,595)
(1,677,096)
4,429,401
2,393,902
125,381
233,022
1,299,408
(2,413,187)
586,984
(1,090,112)
1,550,290
2,879,111
837,866
1,556,036
2,705,360
172,436
994,418
189,015
1,355,869
911,672
2,261,163
1,902,760
-

Taxation

Change in CGS
-15%
16,275,354
11,534,495
16,275,354
17,640,992

financial Cost
-30%
16,275,354
9,498,996
16,275,354
13,569,994
Gross Profit
15%
(Amount in '000')
16,275,354
15,605,493
Base Year
(2,646,209)
(1,323,134)
2,646,089
4,070,998
2,035,499
(4,070,998)
-65%
-65%
-65%
This result shows that 1% Change in Cost of Good Sold will change Net Income by 65%.
1,323,014
(2,035,499)
-65%

CHANGE IN EXPENSES
2010
30%
15%
-30%
-15%
16,275,354
13,569,994
16,275,354
13,569,994
(Amount in '000')
16,275,354
13,569,994
16,275,354
13,569,994
16,275,354
13,569,994

2,705,360
172,436
994,418
189,015
1,355,869
911,672
-
2,705,360
224,167
1,292,743
245,720
1,762,630
911,672
-
2,705,360
198,301
1,143,581
217,367
1,559,249
911,672
-
2,705,360
120,705
696,093
132,311
949,108
911,672
-
2,705,360
146,571
845,255
160,663
1,152,489
911,672
-

financial Cost
2,261,163
1,902,760
-
1,854,402
1,902,760
-
2,057,783
1,902,760
-
2,667,924
1,902,760
-
2,464,543
1,902,760
-
155,023
54,258
100,765
765,164
267,807
497,356
561,783
196,624
365,159
Base Year
Sales-net
Cost of sales
Gross Profit

Taxation
358,403
125,381
233,022

Change in Expenses
(48,358)
16,925
(31,433)
(264,455)
(132,257)
264,334
406,761
203,380
(406,761)
-65%
-65%
-65%
This result shows that 1% Change in Expenses will change Net Income by 65%.
132,137
(203,380)
-65%

CHANGE IN FINANCIAL COST
2010
30%
15%
-30%
-15%
Sales-net
Cost of sales
16,275,354
13,569,994
16,275,354
13,569,994
(Amount in '000')
16,275,354
13,569,994
16,275,354
13,569,994
16,275,354
13,569,994
Gross Profit
2,705,360
2,705,360
2,705,360
2,705,360
2,705,360
172,436
994,418
189,015
1,355,869
172,436
994,418
189,015
1,355,869
172,436
994,418
189,015
1,355,869
172,436
994,418
189,015
1,355,869
172,436
994,418
189,015
1,355,869
911,672
-
911,672
-
911,672
-
911,672
-
911,672
-
2,261,163
1,902,760
-
2,261,163
2,473,588
-
2,261,163
2,188,174
-
2,261,163
1,331,932
-
2,261,163
1,617,346
-
Base Year

financial Cost
358,403
(212,425)
72,989
929,231
643,817
Taxation
125,381
233,022
74,349
(138,076)
25,546
47,443
325,231
604,000
225,336
418,481
Net Income
Finance Cost
(371,098)
(185,579)
370,978
570,828
285,414
(570,828)
-65%
-65%
-65%
This result shows that 1% Change in Finance Cost will change Net Income by 65%.
185,459
(285,414)
-65%
BREAK EVEN ANALYSIS

2006
2007
2009
2010
809,558
91
181
8,939
872,533
94
140
18,766
2,286,853
136
150
158,261
3,002,946
208
253
65,412
2,843,213
128
149
135,974
FIXED COST
DEPRICIATION
Variable cost per unit
Sale price per unit
809,558
349,525
91
181
872,533
479,526
94
140
2,286,853
1,359,595
136
150
3,002,946
1,368,865
208
253
2,843,213
1,392,564
128
149
(FC+DEP)
SP/UNIT-VC/UNIT
12,798
29,080
252,351
95,229
202,571
809,558
2,178,929
91
181
872,533
983,723
94
140
2,286,853
(232,382)
136
150
3,002,946
650,800
208
253
2,843,213
127,773
128
149
32,997
39,924
142,179
79,588
142,084
CASH BREAK EVEN ANALYSIS

FIXED COST
Sale price per unit
FC
SP/UNIT-VC/UNIT
2008
AMOUNT IN '000'
ACCOUNTING BREAK EVEN ANALYSIS
FINANCIAL BREAK EVEN ANALYSIS

FIXED COST
OPERATING CASH FLOW
Sale price per unit
FC+OCF
SP/UNIT-VC/UNIT
UNIVERSITY OF MANAGMENT AND TECHNOLOGY (UMT)
COST OF GOOD SOLD
2010
2009
ADMINISTRATIVE COST
AMOUNT IN '000'
Raw and packing materials consumed

Salaries, wages and other benefits
Electricity and gas
Furnace oil and coal
Stores and spares consumed
Repair and maintenance
Insurance
Depreciation on property, plant and equipment
Depreciation on assets subject to finance lease Royalty
Excise duty
Vehicle running
Postage, telephone and telegram
Printing and stationery
Legal and professional charges
Traveling and conveyance
Estate development
Rent, rates and taxes
Freight charges
Other expenses
Work in Progress
Finished Goods
less own cosumption
TOTAL
1,912,808
695,739
1,991,243
6,100,305
1,096,570
165,951
52,727
1,379,750
185,052
34,839
21,041
4,829
4,821
2,079
8,652
12,514
1,492
4,924
19,834
(150,095)
30,551
(5,632)
1,527,430
641,408
1,427,631
6,603,908
879,772
131,911
45,573
1,354,851
80
86,514
30,023
18,208
4,188
8,149
2,856
6,297
10,285
7,731
5,600
16,150
(269,152)
(171,547)
(9,387)
13,569,994
12,358,479
2010
2009
AMOUNT IN '000'

Electricity, gas and water
Insurance
Depreciation on property, plant and equipment
Depreciation on assets subject to finance lease Vehicle running
Entertainment
School expenses
Fee and subscription
Other expenses
TOTAL
91,633
3,868
6,052
1,596
11,538
5,252
9,568
5,716
8,478
4,983
1,480
1,492
11,292
4,948
4,540
73,858
3,482
6,753
1,707
12,679
9
4,259
3,353
3,423
8,014
5,289
185
1,441
9,790
3,818
3,792
172,436
141,852
SELLING AND DISTRIBUTION EXPENSES
2010
2009
OTHER OPERATING EXPENSES
AMOUNT IN '000'

54,149
Electricity, gas and water
1,100
557
Insurance
238
Depreciation on property, plant and equipment 14.2
1,276
Vehicle running
2,736
2,400
2,240
3,520
16
2,079
Entertainment
578
Advertisement and sales promotion
5,271
Freight charges -local
70
Freight and handling charges -export
916,975
Other expenses
1,213
49,946
1,064
366
294
1,335
2,414
932
1,614
3,030
263
3,328
393
1,657
64
1,802,298
2,519
TOTAL
994,418
1,871,517
2010
2009
FINANCE COST
TOTAL
731,659
1,088,143
2,051
28,470
29,843
22,594
1,902,760
2009
Workers' profit participation fund

Donations
Worker welfare fund
Exchange loss
20,251
351
26,353
142,060
41,724
7,387
15,855
730,888
TOTAL
189,015
795,854
LEGAL AND PROFESSIONAL CHARGES

Legal and professional charges include the following
in respect of auditors' services for:
Statutory audit
Half yearly review
Certification and sundry services
Out of pocket expenses
2010
2009
1,100
250
50
100
1,000
225
20
75
TOTAL
1,500
1,320
AMOUNT IN '000'
Interest and mark-up on:

..Long term loans
..Short term borrowings
Finance lease
..Workers' profit participation fund
Loss on derivative financial instruments
Guarantee commission
Bank charges
2010
AMOUNT IN '000'
1,210,330
1,066,099
10
261,519
34,381
34,019
2,606,358
TOTAL COST
COST OF GOOD SOLD
ADMINISTRATIVE COST
SELLING AND DISTRIBUTION EXPENSES
OTHER OPERATING EXPENSES
FINANCE COST
TOTAL
TOTAL VARIABLE COST

(TOTAL COST - FIXED COST)
Percentage of fixed cost

Percentage of variable cost
2006
2007
2008
2009
2010
3,992,822
121,953
34,352
191,850
4,387,640
104,169
65,122
139,721
10,530,723
111,658
561,465
581,913
12,358,479
141,852
1,871,517
795,854
13,569,994
172,436
994,418
189,015
450,696
467,759
1,749,837
2,606,358
1,902,760
4,791,673
5,164,411
13,535,596
17,774,060
16,828,623
2010
2009
14,090,399
14,660,227
2011
2012
2013
13,622,608 14,961,163
195,087
214,256
983,588 1,080,235
555,245
609,804
16,431,243
235,309
1,186,378
669,723
2,302,340
2,532,574
17,449,564 19,167,797
21,055,227
2010
2009

Insurance
Advertisement and sales promotion
Auditor's Remuneration
Finance Cost
841,521
54,561
10,557
5,271
5,012
1,500
1,819,802
765,212
47,574
10,870
1,657
10,761
1,320
2,276,439
TOTAL
2,738,224
3,113,833
FIXED COST
2010
16.27%
83.73%
2009
17.52%
82.48%
100.00%
100.00%
Average
16.90%
83.10%
100.00%
2,093,036
Total Unit Produced

variable cost
variable cost per unit (v.c/units)
Sale Price
sale price per unit
OPERATING CASH FLOW
SALE
TOTAL COST
Depriciation
Tax Rate
(Sale-Total Cost)(1-Tax Rate)+(Dep. X Tax Rate)
OCF
2006
43,873,740
2008
82,855,280
2009
71,165,872
2010
109,514,109
4,291,878,480 11,248,743,212
14,771,114,384
13,985,409,932
90.76
93.78
135.76
0
0
0
7,955,665,000 6,419,625,000 12,445,996,000
207.56
0
18,038,209,000
127.70
0
16,275,354,000
3,982,114,946
2007
45,763,400
181.33
140.28
150.21
253.47
148.61
2006
2007
2008
2009
2010
7,955,665
4,791,673
349,525
35%
6,419,625
5,164,411
479,526
35%
12,445,996
13,535,596
1,359,595
35%
18,038,209
17,774,060
1,368,865
35%
16,275,354
16,828,623
1,392,564
35%
2,178,929
983,723
(232,382)
650,800
127,773
LEVERAGES
DEGREE OF OPERATING LEVERAGE:
TOTAL SALE
EBIT
EPS
% CHANGE IN EBIT
% CHANGE IS SALE
DOL =
2008
TOTAL SALE
EBIT
EPS
% CHANGE IN EBIT
% CHANGE IS EPS
(0.44)
(0.19)
2007
2010
2007
2012
2013
(0.33)
(0.10)
0.59
0.10
0.09
0.10
0.09
0.10
(0.34)
2.77
3.39
6.01
0.88
0.89
2009
2010
2011
2012
17,874,567 19,630,917 21,559,847

5,439,960 6,200,534 7,065,163
2.68
2.86
3.06
1.24
(8.76)
(0.33)
(0.56)
1.41
2.72
0.14
0.07
0.14
0.07
3.27
(7.04)
1.68
1.93
0.49
0.49
2009
2010
2.27
2013
(0.32)
(1.03)
2008
AVERAGE
17,874,567 19,630,917 21,559,847

3,597,091 3,909,653 4,250,460
2.68
2.86
3.06
1.24
0.45
6,419,625 12,445,996 18,038,209 16,275,354

2,202,393 1,507,581 3,383,258 2,261,163
6.43
(0.21)
1.63
0.72
(0.44)
(0.38)
2011
(0.32)
0.94
2008
% Change in EPS/% Change in EBIT0.87
TOTAL LEVERAGE:
2009
6,419,625 12,445,996 18,038,209 16,275,354

2,202,393 1,507,581 3,383,258 2,261,163
6.43
(0.21)
1.63
0.72
% Change in EBIT/% Change in Sale2.26
DEGREE OF FINANCIAL LEVERAGE:
DFL =
2007
2011
2012
2013
DOL
2.26
(0.34)
2.77
3.39
6.01
0.88
0.89
DFL
0.87
3.27
(7.04)
1.68
1.93
0.49
0.49
TOTAL LEVERAGE = DOL X DFL
1.97
(1.10)
(19.50)
5.71
11.63
0.43
0.44
0.24
(0.06)

SCENARIO ANALYSIS
Sales-net
Cost of sales
WORST CASE
-20%
13,020,283
10,855,995
2010
Base Year
16,275,354
13,569,994
BEST CASE
20%
19,530,425
16,283,993
WORST CASE
-20%
14,299,653
10,898,087
Gross Profit
2,164,288
2,705,360
3,246,432
3,401,567
Selling and distribution Exp.
137,949
795,534
151,212
1,084,695
172,436
994,418
189,015
1,355,869
206,923
1,193,302
226,818
1,627,043
156,070
786,870
444,196
1,387,136
729,338
911,672
-
1,094,006
863,242
2,261,163
2,713,396
1,902,760
2,283,312

financial Cost
companies
Taxation
1,808,930
1,522,208
286,722
100,353
186,370
2,877,673
1,674,429
358,403
430,084
125,381
150,529
233,022
279,554
1,203,244
421,135
782,109
2011
Base Year
17,874,567
13,622,608
4,251,958
195,087
983,588
555,245
1,733,920
1,079,053
3,597,091
2,093,036
1,504,055
526,419
977,636
BEST CASE
20%
21,449,480
16,347,130
5,102,350
234,105
1,180,305
666,294
2,080,704
1,294,864
4,316,509
2,511,643
1,804,866
631,703
1,173,163

SCENARIO ANALYSIS
Sales-net
Cost of sales
WORST CASE
-20%
15,704,734
11,968,930
Gross Profit
3,735,804
Selling and distribution Exp.
171,405
864,188
487,843
1,523,436

financial Cost
915,355
3,127,723
1,841,872

companies
Taxation
1,285,851
450,048
835,803
2012
Base Year
19,630,917
14,961,163
4,669,755
214,256
1,080,235
609,804
1,904,295
1,144,193
3,909,653
2,302,340
1,607,314
562,560
1,044,754
BEST CASE
20%
23,557,101
17,953,395
WORST CASE
-20%
17,247,878
13,144,994
5,603,706
4,102,883
257,108
1,296,282
731,764
2,285,154
188,247
949,103
535,778
1,673,128
1,373,032
970,613
4,691,584
2,762,808
3,400,368
2,026,059
1,928,777
675,072
1,253,705
1,374,309
481,008
893,301
2013
Base Year
21,559,847
16,431,243
5,128,604
235,309
1,186,378
669,723
2,091,410
1,213,266
4,250,460
2,532,574
1,717,886
601,260
1,116,626
BEST CASE
20%
25,871,816
19,717,492
6,154,325
282,371
1,423,654
803,667
2,509,692
1,455,919
5,100,552
3,039,088
2,061,463
721,512
1,339,951
WEIGHTED AVERAGE COST OF CAPITAL (WACC)

Date
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Stock Price Index

Expected Return Change in Stock
36.35
7721
0.08
(0.11)
33.56
8676
(0.03)
(0.07)
34.48
9350
0.19
0.02
29.04
9159
0.03
(0.01)
28.14
9206
(0.14)
(0.02)
32.56
9387
0.06
(0.02)
30.6
9614
0.07
(0.00)
28.59
9658
(0.09)
(0.05)
31.39
10178
0.16
(0.02)
26.96
10428
0.26
0.12
21.41
9326
(0.09)
(0.04)
23.62
9722
(0.16)
(0.08)
27.97
10519
0.15
0.07
24.38
9813
0.02
(0.02)
23.92
10013
(0.12)
(0.06)
27.33
10598
(0.03)
(0.06)
28.25
11235
(0.06)
(0.05)
29.94
11858
STANDARD DEVIATION =
VARAIANCE
=
COEFFICIENT OF VARIANCE =
Beta
=
WACC = Wd * Kd + Ws * Ks
Ws = Total Equity / Total Assets
Wd = Total Debt / Total Assets
Ks = Cost of Equity (Capital Asset Pricing Model)
Kd = [Interest / Total Debt] (1-Tax)
Ws
Wd
Kd
Ks
TOTAL EQUITY
TOTAL ASSETS
TOTAL DEBT
INTEREST
Risk Free Rate
RM
Total Equity / Total Assts
Total Debt / Total Assets
Cost of Debt
CAPM
WACC
or
940.55
884639.78
(1266.78)
1.51
0.17
17%
2010
26,519,220
47,046,043
20,526,823
1,819,802
0.14
0.22
0.56
0.44
0.06
0.26

RATIO ANALYSIS
LIQUIDITY RATIO
CURRENT RATIO
QUICK RATIO
ACID TEST RATIO
CASH RATIO
PROFITABILITY RATIO
NET PROFIT RATIO
GROSS MARGIN RATIO
OPERATING INCOME MARGIN
RETURN ON ASSET RATIO
RETURN ON INVESTMENT
RETURN ON EQUITY
FINANCIAL LEVERAGE RATIO
TOTAL DEBT TO TOTAL ASSETS
CAPITALIZATION RATIO
DEBT TO EQUITY RATIO
INTEREST COVERAGE RATIO
Long term Asset vs Long term debt
EFFICIENCY RATIO
CASH TURNOVER RATIO
TOTAL ASSETS TURNOVER
FIXED ASSET TURNOVER
2007
2008
2009
2010
2011
2012
2013
2.60
2.33
0.04
0.02
1.59
1.30
0.05
0.02
0.84
0.54
0.05
0.02
1.19
0.82
0.04
0.02
0.97
0.67
0.04
0.02
0.92
0.61
0.04
0.02
0.87
0.56
0.04
0.02
25.27%
31.65%
34.31%
3.14%
5.07%
4.78%
-0.43%
15.39%
12.11%
-0.10%
-0.83%
-0.18%
2.91%
31.49%
18.76%
1.23%
3.71%
2.51%
1.43%
16.62%
13.89%
0.50%
1.35%
0.88%
5.47%
23.79%
20.12%
1.87%
5.47%
3.56%
5.32%
23.79%
19.92%
1.87%
5.63%
3.66%
5.18%
23.79%
19.71%
1.87%
5.79%
3.76%
34.44%
23.52%
52.53%
367.81%
3.12
42.15%
24.68%
72.85%
-14.34%
3.33
51.04%
22.20%
104.24%
29.81%
4.93
43.63%
20.27%
77.40%
18.84%
4.54
45.86%
15.62%
87.00%
71.86%
5.26
45.93%
15.13%
89.73%
69.81%
5.70
46.00%
14.65%
92.60%
67.83%
6.19
0.018
0.12
0.20
0.018
0.24
0.38
0.014
0.42
0.61
0.014
0.35
0.53
0.016
0.34
0.50
0.016
0.35
0.51
0.016
0.36
0.52
UNIVERISTY OF MANAGEMENT AND TECHNOLOGY (UMT)
OPERATING CYCLE AND NET TRADE CYCLE

Debtor Turnover Ratio:
Sale
Opening Debtor
Closing Debtor
Average Debtor
Debtor Turnover Ratio:
Debtor Turnover in Days
Inventory Turnover Ratio:
Cost of Good Sold
Opening Inventory
Closing Inventory
Average inventory
2007
6,419,625
74,165
144,245
109,205
58.79
6
2007
4,387,640
1,062,335
1,791,431
1,426,883
2008
2009
2010
12,445,996 18,038,209 16,275,354
144,245
366,173
513,966
366,173
513,966
303,949
255,209
440,070
408,958
48.77
7
40.99
9
2011
2012
2013
17,874,567 19,630,917 21,559,847
303,949
442,659
486,154
442,659
486,154
533,924
373,304
464,407
510,039
39.80
9
2008
2009
2010
10,530,723 12,358,479 13,569,994
1,791,431
2,745,106
3,835,716
2,745,106
3,835,716
4,054,618
2,268,269
3,290,411
3,945,167
47.88
8
42.27
9
42.27
9
2011
2012
2013
13,622,608 14,961,163 16,431,243
4,054,618
4,296,094
4,718,227
4,296,094
4,718,227
5,181,839
4,175,356
4,507,160
4,950,033
Inventory Turnover Ratio:

Inventory Turnover in Days
3.07
119
4.64
79
3.76
97
3.44
106
3.26
112
3.32
110
3.32
110
OPERATING CYCLE
125
86
106
115
119
119
119
Payable Turnover Ratio:

Cost of Good Sold
Opening Payable
Closing Payable
Average Payable
Payable Turnover Ratio:
Payable Turnover in Days
NET TRADE CYCLE
2007
4,387,640
1,406,869
1,027,274
1,217,072
2008
2009
2010
10,530,723 12,358,479 13,569,994
1,027,274
1,370,336
1,435,420
1,370,336
1,435,420
1,679,749
1,198,805
1,402,878
1,557,585
2011
2012
2013
13,622,608 14,961,163 16,431,243
1,679,749
2,023,884
2,222,751
2,023,884
2,222,751
2,441,158
1,851,817
2,123,318
2,331,954
3.61
101
8.78
42
8.81
41
8.71
42
7.36
50
7.05
52
7.05
52
24
45
65
73
70
67
67
UNIVERISTY OF MANAGEMENT AND TECHNOLOGY (UMT)
DIVIDEND DISTRIBUTION POLICY
2007
Dividend per Share
2008
1.36
WORKING CAPITAL POLICY
2007
CURRENT ASSETS
2008
11,824,725
TREND OF RETENTION RATIO
2007
NET INCOME
2006
7,147,873 -2,547,207
2,631,303
2009
2010
-53,230
525,581
233,022
-572,869 -1,808,542
525,581
233,022
100.00%
100.00%
2009
2010
-35.31%
AVERAGE % TAX BRACKET
2010
2008
1,622,471
RETAINED EARNING
TAX
2009
0.0001
7,390,229 12,054,718 15,834,799 13,786,189
CA-CL
NET INCOME BEFORE TAX
0.002
2010
19,214,954 19,202,591 13,287,592 16,417,492
CURRENT LIABILITIES
TAX BRACKET
1.50
2009
3397.60%
2007
2008
3448533
1720471
-250930
776900
358403
1,030,078
98,000
197,700
251,319
125,381
30%
6%
79%
32%
35%
36.34%
UNIVERISTY OF MANAGEMENT AND TECHNOLOGY

D.G Khan Cement Company Limited Income Statement

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D.G Khan Cement Company Limited Income Statement

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D.

G Khan Cement Company Limited

Other operating income

Profit from operation

(Loss) /profit before tax

(Loss)/Profit for the year

Earnings per share -basic and dilluted

UNIVERSITY OF MANAGEMENT AND TECHNOLOGY (UMT)