Colony Mills

The Islamia University of Bahawalpur 1

REPORT ON ANALYSIS OF FINANCIAL STATEMENTS

COLONY MILLS LTD Subject statements” Name of company

“Analysis of financial “Colony mills ltd”

Submitted To;

Ma’am Sobia

Tehreem ) (118)

Submitted by; Hira Manzur

2

3

The amount of knowledge in the world had been doubled every ten years in last century , and in turn of 21st century , it will be doubling every five years. This report actually includes the complete knowledge of analysis of financial statements. The company which is selected by us for that purpose is Colony Textile Mills. This report actually a part of our MBA program, because it is actually related to practical knowledge, which will give

us

an

experience

of

analysis

of

financial

statements. We tried our best to prepare that report with the hope that we shall take our department to a new height, where it is rated as the best in all spheres of education sectors and everyone concerned feels proud of being its integral parts. HIRA MANZOOR

4

At first, I am very thankful to Almighty Allah, who make us sensible and gives us the ability to seek knowledge. After that, I am thankful to Prof. Dr. Bilal .A. Khan , Vice chancellor of Islamia University Bahawalpur , who tried his best to promote the concept of practical knowledge in the department of management sciences. After that , I am very thankful to Ma’m

Sobia Tehreem ,

because due to her strong efforts , we became able to complete that analysis of the financial statements of colony textile mills . Ma’m

Sobia Tehreem actually provided us a platform , which

will give us confidence , courage and capability in the current era of rapid changes.

5

Table of contents Sr. No

Description

1.

Table of Annexure

2.

Executive summary

3.

Overview of Industry

4.

Introduction of Company

5. 5.1

Summarized Income Statement Summarized Balance Sheet

6.

Statement of Cash Flow

7.

Ratio Analysis

7.1 7.2

Classification of Ratios Liquidity Ratio

7.3

Leverage Ratios

7.4

Profitability Ratio

7.5

Du-Pont Analysis

8.

Bankruptcy model

9.

SWOT Analysis

10.

Page numb er

Suggestions and Recommendation

6

Table of annexure Sr. No

Description

1.

Income Statement

2.

Summarized Income Statement

3.

Summarized Income Statement(Trend analysis)

4.

Summarized Income Statement(Horizontal analysis)

5.

Balance Sheet

6.

Summarized Balance Sheet

7.

Summarized Balance Sheet(Trend analysis)

8.

Summarized Balance Sheet(Horizontal analysis)

Page number

7

To excel in delivering highest standards quality yarn to customers in the local and international

markets

as

per

their

customized needs.

8

A

growth

oriented

company

to

provide

quality yarn to customers and expand sales through

good

governance,

explore

new

markets, quality control by developing a team for sustainable and equitable growth with a concept of ”one window solution” 9

10

EXECUTIVE SUMMARY Prior to the detail description we are starting the summary of our report. To review the executive summary the basic purpose is to give the clear idea about what report actually contains and efforts made behind the completion of report. It was assigned us to analyze the Financial Statement of the manufacturing Companies. We choose a well reputed company COLONY MILLS LTD. In this report we have to point out different factors that are necessary to make any investment decision. We start work in different phases that are recasting, trend analysis and ratios. We also take market views about COLONY MILLS Limited. . By working at this

company

we

find

so

many

useful

insights

about

manufacturing sector. Manufacturing Industry sector has a good impact economy of Pakistan. This is most growing industry of Pakistan. This sector contributes a major portion to our export and also the total Gross Domestic Product (GDP). This sector gives great employment to our population. Company is planning to diversify its business so to have more benefits to its stakeholders. SWOT analysis is also a part of this report. This shows company’s strengths, weaknesses, opportunities and threats.

11

12

INTRODUCTION OF COLONY MILLS Colony Mills Limited is a Pakistan-based company. The Company is principally engaged in the manufacturing and sal of yarn. It offers a variety of yarn including carded and combed, slab and core yarn, single and double yarn, made from 100% cotton and synthetic material, catering to the needs of knitting

and weaving consumers in domestic and

international markets. The Colony Group is one of Pakistan's oldest and the most revered business groups. The Group has grown phenomenally and has become a leading player in all the sectors in which it operates. The Group has set up different companies whose activities span various sectors like Textiles, Sugar and Distillery.

HISTORY OF COLONY MILLS The Colony Group was founded in 1986 with a focus on providing high net worth families and individuals with intelligent wealth

management

and

investment

guidance.

Since

its

founding, the firm has grown substantially, attracting corporate and institutional clients. Recognizing the importance and success of its investment

management

capabilities,

The

Colony

Group

established Colony Investment Management as a separate division, through which it has built an experienced, talented

13

team of Chartered Financial Analysts and other investment professionals dedicated to delivering out performance over full market cycles. Our proprietary, research-intensive approach is implemented through a defined, systematic, and repeatable investment process.

OFFICERS AND DIRECTORS Fareed M. Shiekh >

Chairman of the Board, Chief Executive

Mehboob Ahmad >

Chief Financial Officer

Waqar Ibn Zahoor Bandey >

Company Secretary

Najeeb Ullah Khan >

Head - Internal Audit

M. Akram Qureshi >

Director

Muhammad Farooq >

Director

Syed Arif Hussain >

Director

Muhammad

Director 14

Azam Barki > Malik Sohail Ahmed >

Director

ADDRESS. Ismail Aiwan-e-Science Bldg 205, Ferozepur Road Lahore, 54600 Pakistan.

15

Products of colony mills. Textile Sugar. COLONY TEXTILE MILLS LIMITED. Established as a textile manufacturing unit on 24th August, 1946, Colony Mills Limited is engaged in the production and manufacturing of different types of yarns of various counts. The company has a healthy portfolio of income generating assets that crossed total revenues of 7.0 billion rupees in the year ending June 2008.

Product Range 100% cotton carded and combed yarns, lycra/spandex core spun and slub yarns 100% polyester and 100% viscose yarns along with various blends, polyester viscose yarn, and yarns of polyester cotton and polyester viscose blends in the range of 6 to 80 Ne (Number English) Counts.

Future Ventures A state-of-the-art Open-End Spinning production facility is under construction. It will be the first of its kind facility in the country, with 2,880 rotors capable of producing 15,000 Metric Tons of yarn annually, including slub yarns.

16

Colony Sugar Mills Limited In a continued bid to diversify its portfolio, the Colony Group recently acquired two sugar plants in Phalia and Mian Chanu:

Colony Sugar Mills Limited (Mian Channu) Operations Conversion of Sugarcane into refined sugar

Crushing Capacity 4,500 Metric Tons per day of Sugarcane

Projected Annual Turnover Over Rs. 1.00 Billion or US$ 15 Million

Colony Sugar Mills Limited (Phalia) Operations Conversion of Sugarcane into refined sugar Production of Ethanol from the refined sugar waste

Crushing Capacity 7,500 Metric Tons per day of Sugarcane

Distillery Plant Capacity 125,000 liters per day of Ethanol.

17

SOCIAL RESPONSIBILITY OF COMPANY. At COLONY, we believe in business with integrity and social responsibility. One of our main corporate objectives is to pursue ethical growth in business.  Effective Waste Management Systems at all the production plants.  Awarded Oeko-Tex Standard-100 as recognition for our continued attention for environmental concerns Our policies are not restricted to environment only; therefore, we are engaged in a continuous effort to reduce under age employment from our production facilities.

INTERNAL STRUCTURE/COMMITIES OF COLONY MILLS LIMITED The different comities of colony mills are as follows.

Audit Committee. This is the most effective and prime committee of the board,it has the ital role in the compliance of the internal controls so as to safeguard he interests of company through monitoring of internal audit functions and risk management policies.

Executive Committee. This committee is responsible for setting overall corporate objectives

and

strategies,

Identification

of

opportunities

18

,monitoring the business strategies and plans and there after the successful implementations of those plans.

Human resource committee. This committee determines the compensation package for all cadres of the company s employee. The committee is also responsible

to

create

and

maintain

conductive

working

environment that instill trust & ensure respect, fair treatment and development opportunity.

Technical Committee. The technical committee acts in an advisory capacity to the CEO, Provides recommendations relating to technical affairs to the company, formulation of technical policies required under the code of corporate governance.

Finance committee. The role of finance committee is to review and recommend the financial

targets,

annual

and

quarterly

budgets,

approval

of

expenditures for amounts with in its limits, investment of the surplus funds of the company and financial policies.

Corporate Governance. 19

The management ensured that all requirements of the code of corporate governance were compiled with the statement of compliance with best practices of code of corporate governance is annexed.

Acknowledgment.

Our team of workers, supervisors and managers is greatly appreciated for their commitment, dedication and consistent hard work.

20

COLONY MILLS LTD INCOME STATEMENT AS ON 30,june, 200__ Colony mills limited Summarized Balance Sheet As On 30,june,200___ ASSETS CURRENT ASSETS Cash & Bank Balance Short Term Investment Trade Debts Loans & Advances Short Term Deposits Other Receivable Stores & Spares Tax Refunds due from Government Stock in Trade Raw Material Working in Process Finish Goods Assets held for disposal Real etate property held for trading Total Current Assets FIXED ASSETS Work in Progress Plant & Machinery at cost Less: Depreciation Other Total Fix Assets Long Term Security Deposit Long Term Investment

Total Assets

2005

2006

2007

2008

Rs.(000)

Rs.(000)

Rs.(000)

Rs.(000)

65352792 146685782 192852005 126920420 479330738 12082974 29631906

4419673 812209813 166085822

4414338 433627562 305086776

32066725 466030145 331929726

174612533 64802911

504451730 73473064

793984464 120827747

11560127

42140864

83795404

122130069

610612647

869248471

1092423524

1606823241

71558000

80378369

89887439

87496286

308959531

284348296 318422562

210140198 484322562

265973244 491215801

2055546922

2816669314

3281622597

4318477448

415822597 2829766453 471957286 2357809167 471957286 3245589050

281606595 2565266237 471957286 2093308951 2578278895 4953194441

267457672 3946861781 775926523 3170935258 2385825526 5824218456

1284218441 4705633505 926890172 3778743333 2463964046 7526925820

16716122 3133116

2451716 18111122

18576122 4525998

787243175 18576123

5320985210

7790426593

9128943173

12651222566

LIABILITIES & EQUITY

21

CURRENT LIABILITIES Trade & Other Payables Creditor Bills Payable Advance Payments Other Total Trade & other Payables Accured Interest & Mark Up Short Term Borrowing Tax Current Portion of Non Current Liabilities Provision against contingent liabilities Total Current Liabilities

55732274 721273762

203703650 155321385

557745562 606225694

1965521987

7709133

27891258

2211614

19486443

87102659

85230590

95733842

113093543

871817828

472146883

1261916712

2098101973

68832214 799537736 64786639

88489407 1866403904 48290819

96132098 1592203909 28999380

167589397 2264788587 35907313

208404027

291884397

262529592

539916788

31417382 2013378444

2798632792

3241781691

5106304058

45454920 12099318 1089550531 912529335 2059634104

44019429 1974621760 340051740 2358692929

74154515 2415894313 248050727 2738099555

132569317 4179440783 326557758 4638567858

250000000 157738584 338622672

2441763000 191337872

2441763000 707298927

2441763000 464587650

Total Equity Surplus on Fix Asset

746361256 501611406

2633100872

3149061927

2906350650

Total Liabilities & Equity

5320985210

7790426593

9128943173

12651222566

NON CURRENT LIABILITIES Loan from related parities Liabilities against asset Long term financing other STOCK HOLDER EQUITY Issued Capital Capital Reserve unappreciated profit

22

23

RATIO ANALYSIS Ratio analysis is a widely used tool of financial analysis. It is defined as the systematic use of ratio to interpret the financial statements so that the strengths and weaknesses of a firm, as well as its historical performance and current financial condition can be determined. A complete ratio analysis shows a whole snap of the whole activities of the company during the year. A ratio becomes meaning full when compared with other standard and the ratio of the other years. So for this purpose we have calculated the ratio of COLONY MILLS and compare it with the previous year and brief them according to our knowledge.

PURPOSES: The recommendation of ratio analysis depends upon the stake holder’s position and relation to the company for which the analysis is done. The following paragraph briefly explains the purpose of ratio analysis stage by stage.

MANAGEMENT: Would like to know the operational efficiency during the year and would think of such ratios as return on investment, turnover of fixed assets and net profit to sales etc.

24

CREDITORS: Would like to know the ability of the company to meet its current obligations and, therefore, would think of current and liquid ratios, turnover of receivables, coverage of interest by the level of earnings, etc

INVESTORS: Will be interested in such ratios as earnings per share, book value per share and dividends per share etc.

25

CLASSIFICATION OF RATIOS Ratios may be classified in a number of ways keeping in view the

particular

purpose.

To

achieve

the

above

purposes

effectively ratios may be classified as: 1. Liquidity ratios:  Working Capital  Current Ratio  Account Receivable Turnover  Accounts Receivable Turnover in days  Inventory Turnover  Inventory Turnover in day  Sales to Working Capital  Operating Cycle  Acid -Test Ratio 2. Leverage /Solvency Ratios.  Debt ratio  Debt Equity Ratio  Time Interest Earned Ratio  Fixed Coverage Ratio 3. Profitability ratios.  Gross Profit Margin  Operating Profit Margin  Net Profit Margin

26

 Total Asset Turnover  Return on Assets  Operating Asset Turnover  Return on Operating Assets  Sales to Fixed Assets  Return on Total Equity  Return On investment

27

28

CURRENT RATIO=CURRENTASSETS/CURRENT LIABILITIES CUURRENT ASSETS CURRENT LIABILITIES CURRENT RATIO QUICK ACID RATIO=QUICK ASSETS/CURRENT LIABILITIES QUICK ASSETS CURRENT LIABILITIES QUICK RATIO WORKING CAPITAL=CURRENT ASSETS-CURRENT LIABILITIES CUURRENT ASSETS CURRENT LIABILITIES WORKING CAPITAL CASH RATIO=CASH+MRK SECURITIES/CURRENT LIABILITIES CASH MRK SECURITIES CURRENT LIABILITIES CASH RATIO A/R TURNOVER=ANNUAL CREDIT SALES/AVG A/R ANNUAL CREDIT SALES AVG A/R A/R TURNOVER AVG COLLECTION PERIOD=360/A/R TURNOVER A/R TURNOVER AVG COLLECTION PERIOD INVENTORY TURNOVER=CGS/AVG INVENTORY CGS AVG INVENTORY INVENTORY TURNOVER AVG OF INVENTORY=360/INVENTORY TURNOVER INVENTORY TURNOVER AVG OF INVENTORY SALES TO WORKING CAPITAL=SALES/WORKING CAPITAL SALES WORKING CAPITAL

2005 205554692 2 201337844 4 1.02094413 9

2006 281666931 4 279863279 2 1.0064447 62

2007

106441674 4 201337844 4 0.52867196 8

158269417 8 279863279 2 0.5655240 6

205554692 2 201337844 4

281666931 4 279863279 2

42168478

18036522

39840906

3281622597 3241781691 1.01228981 8

1889171436 3241781691 0.58275714 3

3281622597 3241781691

2008 431847744 8 510630405 8 0.8457149 04 235818467 7 510630405 8 0.4618183 03 431847744 8 510630405 8 -78782661 0

65352792

4419673

4414338

32066725

146685782 201337844 4 0.10531481 3

812209813 279863279 2 0.2917958 68

1336742

466030145 510630405 8 0.0975454 78

334940675 2 150073976 22.3183715 2

205588069 4 239850875 8.5714954 93

22.3183715 2 16.1302091 3

8.5714954 9 41.999672 1

297926922 0 3.00820089 6

177610450 3 111255265 7 1.5964228 68

3.00820089 6 119.672858 4

1.5964228 7 225.50416 11

334940675 2

205588069 4

5784505405

42168478

18036522

39840906

990382399

3241781691 0.00177404 9 578505405 575118430 1.00588917 8 1.00588918 357.892307 8

702072954 2 979371758 7.1686052 66 7.1686052 7 50.218973 77

3.84275303 4

602650480 7 167637196 6 3.5949687 36

3.84275303

3.5949687

93.6828355 1

100.13995 39

5046353813 1313213149

702072954 2 -78782661 0

29

SALES TO WORKING CAPITAL OPERATING CYCLE=A/R Turnover in days + Inventory Turnover in days A/R Turnover in days Inventory Turnover in days OPERATING CYCLE

79.4291591 9

113.98431 99

145.190107

-8.9115161 29

16.1302091 3 119.672858 4 135.803067 5

41.999672 1 225.50416 11 267.50383 32

357.892307 8 93.6828355 1 451.575143 3

50.218973 77 100.13995 39 150.35892 77

30

 Current Ratio: Current Ratio = 2005 1.02094413 9

2006 1.006444 76

2007 1.01228981 8

2008 0.845714 9

CURRENT RATIO 1.2 1

TIMES

0.8 0.6 0.4 0.2 0 2005

2006

2007

2008

YEARS

INTERPRETATION: The current ratio is the ratio of total current assets and total current liabilities. The current ratio of a firm measures its shortterm solvency, i.e. its ability to meet short-term obligations. As a measure of short term/current financial liquidity, it indicates the rupees of current assets available for each rupee of current liability / obligation. The higher the current ratio, the large the amount of rupees available per rupee of current liability, the more the firm’s ability to meet current obligations and the greater the safety of funds of short term creditors .And in Colony Textile mills ltd the current ratio is decreasing from 2005 to 2008.it shows that co has poor short term debt paying ability. 31

 Acid -Test Ratio Acid -Test Ratio= 2005 0.52867196 8

2006 0.565524 06

2007 0.58275714 3

2008 0.461818 3

QUICK ACID RATIO 0.7 0.6

TIMES

0.5 0.4 0.3 0.2 0.1 0 2005

2006

2007

2008

YEARS

INTERPRETATION: The term quick assets refers to current assets which can be converted into cash immediately or at a short notice without dimension of value. Thus, the quick assets = current assets -inventory. This ratio is used to check that how much inventory is unsold and includes in current assets. Because current assets may include inventory in large amount which would increase the current assets. This ratio shows a minor increase from 2005 to 2006 and 2007, but in 2008 it decreases.

32



Working capital: Working Capital =Current Assets –Current Liabilities 2005

2006 1803652 2

42168478

2007 39840906

2008 7878266 10

working capital 200000000 0

Rs

-200000000

2005

2006

2007

2008

-400000000 -600000000 -800000000 -1000000000 years

INTERPRETATION: Working capital indicates the short run solvency position of the business. As shown above the net working capital decreases from 2005 to 2006 but improves in 2007, but goes – tive in 2008 which gives a warning to company.

33

 CASH RATIO : CASH RATIO= CASH+MRK SECURITIES/CURRENT LIABILITIES

2005 0.10531481 3

2006 0.291795 87

2007 0.00177404 9

2008 0.097545 48

CASH RATIO 0.35 0.3

TIMES

0.25 0.2 0.15 0.1 0.05 0 2005

2006

2007

2008

YEARS

INTERPRETATION: Cash ratio indicates that how much mot liquid assets a company have to fulfill its current liabilities. Increasing trend is favorable and vive versa. In Colony textile this ratio increases from year 2005 to 2006 but it’s a minor increase and in 2007 it shows a minor decrease and it increases in 2008.

34

 Accounts Receivable Turnover: Account Receivable Turnover = 2005 22.3183715 2

2006 8.571495 49

2007 1.00588917 8

2008 7.168605 27

A/R TURNOVER 25 20

TIMES

15 #REF! 10 5 0 2005

2006

2007

2008

YEARS

INTERPRETATION: This ratio shows the proportion of sales to receivable. It means that how many times in a year our receivables are collected. It shows the credit management and collection management ability that how much they are efficient to collect the receivables. There is a decrease in A/R Turnover from year 2005 to 2007 but in 2008 it improves and increases.

35

 Accounts Receivable Turnover in days: Accounts Receivable Turnover in days = 2005 16.1302091 3

2006 41.99967 21

2007 357.892307 8

2008 50.21897 38

AVG COLLECTION PERIOD 400 350

DAYS

300 250 200

#REF!

150 100 50 0 2005

2006

2007

2008

YEARS

INTERPRETATION: This ratio indicates that how many days’ receivables are collected. It shows credit collection management ability that how much they capable to get receivables. In Colony Textile in increases from 2005 to 2007 but it decreases in 2008.

36

 Inventory Turnover: Inventory Turnover = 2005 3.00820089 6

2006 1.596422 87

2007 3.84275303 4

2008 3.594968 74

INVENTORY TURNOVER 5 4 TIMES

3 2 1 0 2005

2006

2007

2008

YEARS

INTERPRETATION: This ratio reveals the number of times finished stock is turned over during a given accounting period. In other words this ratio 37

indicates that how many times in a year inventory can be converted into sales. High inventory turnover ratio is better than

a

low

ratio.

A

high

ratio

implies

good

inventory

management. In Colony textile inv turnover decreases from year 2005 to 2006 but in 2007 it improves and in 2008 there is a minor decrease in inv turnover.

38

 Inventory Turnover in days:  Inventory Turnover in days = 2005 119.672858 4

2006 225.5041 61

2007 93.6828355 1

2008 100.1399 54

AVG OF INVENTORY 250 200 DAYS

150 100 50 0 2005

2006

2007

2008

YEARS

INTERPRETATION: This ratio shows us that for how many days the inventory remains with the company after its conversion from raw material and work in process to finished goods. The lower the ratio better it is.

This is calculated by dividing the 365 by 39

inventory turnover. The standard of day inventory in stock is that lower the days the higher the performance. In Colony textile the inventory turnover in days first increases from 2005 to 2006 but it decreases in 2007, and in 2008 it again shows an increase.

40

 :

Sales to working Capital : sales WorkingCapital

Sales to working Capital = 2005 79.4291591 9

2006 113.9843 2

2007 145.190107

2008 8.911516 1

sales to working capital

times

200 100 0 -100

2005

2006

2007

2008

years

INTEPRETATION: Sales to working give an indication of the turnover in working capital per year. A low working capital turnover ratio indicates an unprofitable use of working capital. In other words sales are not adequate in relation to the available working capital. In Colony textile this ratio shows a rapid increasing trend from year 2005 to 2007 but shows a sharp decrease in 2008 even it goes to –tive.

41

 Operating Cycle: Operating Cycle = A/R Turnover in days + Inventory Turnover in days 2005 135.803067 5

2006 267.5038 33

2007 451.575143 3

2008 150.3589 28

operating cycle

times

600 400 200 0 2005

2006

2007

2008

years

INTEPETATION: The operating cycle represents the period of time elapsing between the acquisition of goods and the final sash realization resulting from sales and sub sequent collections. The operating cycle should be helpful when comparing a firm from period to period. In the company this ratio first shows increase from 2005 to 2007 but it decreases in 2008.

42

 Current Ratio: Current Ratio = 2005 1.02094413 9

2006 1.006444 76

2007 1.01228981 8

2008 0.845714 9

CURRENT RATIO 1.2 1

TIMES

0.8 0.6 0.4 0.2 0 2005

2006

2007

2008

YEARS

INTERPRETATION: The current ratio is the ratio of total current assets and total current liabilities. The current ratio of a firm measures its shortterm solvency, i.e. its ability to meet short-term obligations. As a measure of short term/current financial liquidity, it indicates the rupees of current assets available for each rupee of current liability / obligation. The higher the current ratio, the large the amount of rupees available per rupee of current liability, the more the firm’s ability to meet current obligations and the greater the safety of funds of short term creditors .And in Colony Textile mills ltd the current ratio is decreasing from 2005 to 2008.it shows that co has poor short term debt paying ability.

43

 Acid -Test Ratio Acid -Test Ratio= 2005 0.52867196 8

2006 0.565524 06

2007 0.58275714 3

2008 0.461818 3

QUICK ACID RATIO 0.7 0.6

TIMES

0.5 0.4 0.3 0.2 0.1 0 2005

2006

2007

2008

YEARS

INTEPETATION: The term quick assets refers to current assets which can be converted into cash immediately or at a short notice without dimension of value. Thus, the quick assets = current assets -inventory. This ratio is used to check that how much inventory is unsold and includes in current assets. Because current assets may include inventory in large amount which would increase the current assets. This ratio shows a minor increase from 2005 to 2006 and 2007, but in 2008 it decreases.

44



Working capital: Working Capital =Current Assets –Current Liabilities

2005

2006 1803652 2

42168478

2007 39840906

2008 7878266 10

working capital 200000000 0

Rs

-200000000

2005

2006

2007

2008

-400000000 -600000000 -800000000 -1000000000 years

INTERPRETATION: Working capital indicates the short run solvency position of the business. As shown above the net working capital decreases from 2005 to 2006 but improves in 2007, but goes – tive in 2008 which gives a warning to company.

45

 CASH RATIO : CASH RATIO= CASH+MRK SECURITIES/CURRENT LIABILITIES 2005 0.10531481 3

2006 0.291795 87

2007 0.00177404 9

2008 0.097545 48

CASH RATIO 0.35 0.3 0.25 TIMES

0.2 0.15 0.1 0.05 0 2005

2006

2007

2008

YEARS

INTERPRETATION: Cash ratio indicates that how much mot liquid assets a company have to fulfill its current liabilities. Increasing trend is favorable and vive versa. In Colony textile this ratio increases from year 2005 to 2006 but it’s a minor increase and in 2007 it shows a minor decrease and it increases in 2008.

46

 Accounts Receivable Turnover: Account Receivable Turnover = 2005 22.3183715 2

2006 8.571495 49

2007 1.00588917 8

2008 7.168605 27

A/R TURNOVER 25 20

TIMES

15 #REF! 10 5 0 2005

2006

2007

2008

YEARS

INTERPRETATION:

47

This ratio shows the proportion of sales to receivable. It means that how many times in a year our receivables are collected. It shows the credit management and collection management ability that how much they are efficient to collect the receivables. There is a decrease in A/R Turnover from year 2005 to 2007 but in 2008 it improves and increases.

48

 Accounts Receivable Turnover in days: Accounts Receivable Turnover in days = 2005 16.1302091 3

2006 41.99967 21

2007 357.892307 8

2008 50.21897 38

AVG COLLECTION PERIOD 400 350 300

DAYS

250 200

#REF!

150 100 50 0 2005

2006

2007

2008

YEARS

INTERPRETATION: This ratio indicates that how many days’ receivables are collected. It shows credit collection management ability that how much they capable to get receivables. In Colony Textile in increases from 2005 to 2007 but it decreases in 2008.

49

 Inventory Turnover: Inventory Turnover =

2005 3.00820089 6

2006 1.596422 87

2007 3.84275303 4

2008 3.594968 74

INVENTORY TURNOVER 5 4 TIMES

3 2 1 0 2005

2006

2007

2008

YEARS

INTERPRETATION: This ratio reveals the number of times finished stock is turned over during a given accounting period. In other words this ratio

50

indicates that how many times in a year inventory can be converted into sales. High inventory turnover ratio is better than

a

low

ratio.

A

high

ratio

implies

good

inventory

management. In Colony textile inv turnover decreases from year 2005 to 2006 but in 2007 it improves and in 2008 there is a minor decrease in inv turnover.

51

 Inventory Turnover in days: Inventory Turnover in days = 2005 119.672858 4

2006 225.5041 61

2007 93.6828355 1

2008 100.1399 54

AVG OF INVENTORY 250 200 DAYS

150 100 50 0 2005

2006

2007

2008

YEARS

INTERPRETATION: This ratio shows us that for how many days the inventory remains with the company after its conversion from raw material and work in process to finished goods. The lower the ratio better it is.

This is calculated by dividing the 365 by

52

inventory turnover. The standard of day inventory in stock is that lower the days the higher the performance. In Colony textile the inventory turnover in days first increases from 2005 to 2006 but it decreases in 2007, and in 2008 it again shows an increase.

53



Sales to working Capital :

Sales to working Capital = 2005 79.4291591 9

sales WorkingCapital

2006 113.9843 2

2007 145.190107

2008 8.911516 1

TIMES

SALES TO WORKING CAPITAL 200 150 100 50 0 -50

2005

2006 2007 YEARS

2008

INTEPRPETATION: Sales to working give an indication of the turnover in working capital per year. A low working capital turnover ratio indicates an unprofitable use of working capital. In other words sales are not adequate in relation to the available working capital. In Colony textile this ratio shows a rapid increasing trend from year 2005 to 2007 but shows a sharp decrease in 2008 even it goes to –tive.

54

 Operating Cycle: Operating Cycle = A/R Turnover in days + Inventory Turnover in days 2005 135.803067 5

2006 267.5038 33

2007 451.575143 3

2008 150.3589 28

operating cycle 500 times

400 300 200 100 0 2005

2006

2007

2008

years

INTEPETATION:

55

The operating cycle represents the period of time elapsing between the acquisition of goods and the final sash realization resulting from sales and sub sequent collections. The operating cycle should be helpful when comparing a firm from period to period. In the company this ratio first shows increase from 2005 to 2007 but it decreases in 2008.

56

57

Debt ratio=Total liabilities/Total assets Total liabilities Total assets Debt ratio

2 005

2 006

2007 2008 515732572 4073012548 1 779042659 5320958210 3 0.662008 0.765465991 127

597988124 6 912894317 3 0.655046 387

974487191 6 126512225 66 0.7702711 63

515732572 1 263310087 2 1.958651 025

597988124 6 314906192 7 1.898940 505

974487191 6 290635065 0 3.3529580 87

515732572 1 263310087 2

597988124 6 314906192 7

974487191 6 290635065 0

0 1.958651 025

0 1.898940 505

0 3.3529580 87

279863279 2 263310087 2 1.062865 772

324178169 1 314906192 7 1.029443 614

510630405 8 290635065 0 1.7569470 01

235869292 9 263310087 2 0.472514 095

273809955 5 314906192 7 0.465096 73

463856785 8 290635065 0 0.6147936 33

4.348549746

495319444 1 263310087 2 1.881125 973

582421845 6 314906192 7 1.849509 026

752692582 0 290635065 0 2.5898202 68

2646676555

212720950

530687771

674774732

129235123 20.47954529

178660925 1.190640 595

371807572 1.427318 352

491568948 1.3726960 07

2646676555

212720950

530687771

674774732

23443822

18219485

34889562

36416568

40%

40%

40%

40%

Debt to equity ratio=Total liabilities/Shareholder's equity Total liabilities Shareholder's equity Debt to Equity ratio

4073012548 746361256 5.457159673

Debt to tangible net worth ratio=T.liabilities/O.EIntangible assets Total liabilities Shareholder's equity

4073012548 746361256

Intangible assets Debt to tangible net worth ratio

0 5.457159673

current debt to net worth ratio=current liabilities/O.E Current liabilities Shareholder's equity Current debt to net worth ratio

2013378444 746361256 2.697592389

Total capitilization ratio=LTD/LTD+equity LTD Equity Total capitalization ratio

2059634104 746361256 0.734011942

Fixed asset to equity ratio=Fixed asset/Shareholder's equity Fixed assets Shareholder's equity Fixed asset to equity ratio

3245589050 746361256

Time interest earned ratio=EBIT/Interest EBIT Interest Time interest earned ratio FIXED CHARGE COVERAGE RATIO EBIT Lease Pmt Tax rate

58

Principle intrest Preferred dividened Fixed charge coverage ratio T.ASSET TURNOVER RATIO=NET SALES/T.ASSETS

0

0

0

0

129235123

178660925

371807572

491568948

0

0 0.703799 129

0 0.834395 848

0 0.8081941 02

205588069 4 779042659 3 0.2638983 46

578450540 5 912894317 3 0.6336445 85

702072954 2 126512225 66

10.49307897

net sales

3349406752

total assets

5320985210

TOTAL ASSET TURNOVER RATIO

0.629471164

0.55494475

59

 Debt Ratio: Debt Ratio = 2005 0.765465991

2006 0.6620081 27

2007 0.6550463 87

2008 0.770271 16

times

debt ratio 0.8 0.75 0.7 0.65 0.6 0.55 2005

2006

2007

2008

years

INTERPRETATION: Debit ratio is calculated to check the total asset financed by the firm creditors. This ratio shows relation between total assets and total liabilities. In Colony textile this ratio shows a minor decrease from 2005 to 2006, and in 2007 it also decreases, but in 2008 it improves or increases.

60

 Debt To Equity Ratio: Debt Equity Ratio = 2005 5.457159673

long term liabilties Equity

2006 1.9586510 25

2007 1.8989405 05

2008 3.352958 09

debt to equity ratio

times

6 4 2 0 2005

2006

2007

2008

years

INTERPRETATION: The debt equity ratio indicates the relationship between the long-term funds provided by creditors and those provided by the firm’s owners. The standard debt equity ratio is 60:40. The lower the debt equity ratio that is preferable. This ratio decreases from year 2005 to 2007 but it improves/increases in 2008.

61

 Debt to tangible net worth ratio Debt to tangible net worth ratio=Total liabilities/Shareholder's equityIntangible assets 2005 5.457159673

2006 1.9586510 25

2007 1.8989405 05

2008 3.352958 09

debt to tangible net worth

times

6 4 2 0 2005

2006

2007

2008

years

INTERPRETATION: This ratio tells that how much the equity portion contributes to total liabilities. In Colony textile it decreases from 2005 to 2007, but further it does not decrease but shows an increase in 2008.

62

 current debt to net worth ratio Current debt to net worth ratio=current liabilities/shareholder's equity 2005 2.697592389

2006 1.0628657 72

2007 1.0294436 14

2008 1.756947

current debt to net worth ratio

times

3 2 1 0 2005

2006

2007

2008

years

INTERPRETATION: This ratio shows that how much contribution of shareholder’s equity is in the current portion of liabilities. In this company it shows a gradual decrease from year 2005 to 2007 but it improves in minor in 2008.

63

 Total capitalization ratio Total capitalization ratio=LTD/LTD+equity 2005 0.734011942

2006 0.4725140 95

2007 0.465096 73

2008 0.614793 63

times

total capitalization ratio 0.8 0.6 0.4 0.2 0 2005

2006

2007

2008

years

INTERPRETATION: LTD represents a company’s huge investment so through this ratio we check that whether company’s capital is capable of paying the interest on long term debts. In Colony textile shows a decrease from 2005 to 2006 and in 2007 it minor decreases and in 2008 it improves/increases.

64

 Fixed asset to equity ratio Fixed asset to equity ratio=Fixed asset/Shareholder's equity 2005 4.348549746

2006 1.8811259 73

2007 1.8495090 26

2008 2.589820 27

fixed asset to equity ratio

times

6 4 2 0 2005

2006

2007

2008

years

INTERPRETATION: It shows that in fixed assets how much contributed or owned by the shareholders equity and remaining by creditors. And in Colony textile this ratio decreases from year 2005 to 2007, but a minor increase also comes in 2008.

65

 Time Interest Earned Ratio: Time interest Earned Ratio = 2005 20.47954529

2006 1.1906405 95

2007 1.4273183 52

2008 1.372696 01

time interest earned ratio

times

30 20 10 0 2005

2006

2007

2008

years

INTERPRETATION: This ratio measures the firm’s ability to make contractual payments this ratio is also calculated to know about long- term solvency position of the business. This ratio indicates the company’s ability to pay interest this company this ratio shows a rapid decrease from 2005 to 2006 and a minor increase in 2007, and in 2008 it also decreases.

66

 FIXED CHARGE COVERAGE RATIO FIXED CHARGE COVERAGE RATIO=EBIT+Lease Pmt/Interest+Lease Pmt+ (Principle+Preferrd dividend)*(1/1-T) 2005 10.49307897

2006 0.7037991 29

2007 0.8343958 48

2008 0.808194 1

fixed charge coverage ratio

times

15 10 5 0 2005

2006

2007

2008

years

INTERPRETATION: This ratio shows a major decrease in 2006 but it improves in 2007, and in 2008 it again decreases.

67

 Total Assets Turnover ratio: Total Assets Turnover Ratio = 2005 0.629471164

2006 0.2638983 46

NetSales TotalAssets 2007 0.6336445 85

2008 0.554944 75

times

total asset turnover ratio 0.8 0.6 0.4 0.2 0 2005

2006

2007

2008

years

INTERPRETATION: This ratio is based on the relationship between the sales and assets of a firm indicate that how much is contributed by assets towards our sales. The higher the turnover ratio, the more efficient the management and utilization of the assets while low turnover ratios are indicate of under utilization of available resources and presence of idle capacity. If turn over increases it means that assets are properly used to generate sales and company’s position is very good. In Colony textile ratio decreases from year 2005 to 2006 but improves in 2007 and also shows decreases in 2008. 68

69

Financial leverage= EBIT/EBT EBIT EBT Financial leverage EPS=net income-Preferred dividened/No.of C/S Outstanding Net income Preferred dividened weighted average

C/S outstanding

EPS

2005

2006

2007

2008

310183157 180948234 1.71420936 3

291991853 119330928 2.44690842 4

830067779 458269207 1.81131039 6

854941799 363372851 2.3527949 2

106792352

104917000

513886773

281497826

0

0

0

0

10410959

135653589

244176300

245000000

10.2576863 5

0.77341853 4

2.10457269 2

1.1489707 2

Note There is no dilutive effect on the basic EPS of a company. Price earning ratio=

Market price per share/EPS Market price per share EPS

P/E ratio % of earning retained=Net income-all divideneds/net income

Dividened payout ratio= Dividened per share/EPS

Net income All divideneds % earning retained

Dividened per share Earning per share Dividened payout ratio Dividened Yield=Dividened per share/ Market price of share Dividened per share Market price of share Book value=Total shareholder's equityPreferred equity Total NO.of common stock outstanding

Dividened yield

Total shareholder's equity Preferred equity common stock outstanding

12

13

12

14

10.25786 1.16983464 4

0.7734185 16.8084937 2

2.1045727 5.70187002 8

1.1489707

106792352 106792352

104917000 104917000

513886773 513886773

281497826 281497826

0

0

0

0

10.26

0.77

2.1045727

1.1489707

10.26

0.77

2.1045727

1.1489707

1

1

1

1

10.26

0.77

2.1045727

1.1489707

12.184819

12

13

12

14

0.855

0.05923076 9

0.17538105 8

0.0820693 4

746361256

263310087 2

314906192 7

290635065 0

0

0

0

0

10410959

135653589

244176300

245000000

71.6899620 9

19.4104770 2

12.8966731 3

11.862655 7

70

71

72

 FINANCIAL LEVERAGE Financial leverage= EBIT/EBT: 2005 1.714209

2006 2.446908

2007 1.81131

2008 2.352795

financial leverage

Times

3 2 1 0 1

2

3

4

Years

INERPETATION: This ratio tells that how much change comes in EBIT due to change in net income, as the interest increases or decreases he financial leverage increases and decreases with the same aspect. from year 2005 to 2006 this ratio increases but in 2007 it shows a decrease and it 2008 again improves.

73

 EARNING PER SHARE

EPS=net income-Preferred dividend / No. of common stock Outstanding 2005 2006 2007 10.257 0.773 2.104 6 4 5

2008 1.148

EPS

Rs.

15 10 5 0 2005

2006

2007

2008

Years

INERPETATION: IT tells that what a single share earns, it is a mandatory /compulsory part of I/S. this ratio is in a good position in 2005 but it goes to much down in 2006 and in 2007 it improves but again shows a decreasing trend in 2008.

74

 PRICE EARNING RATIO: Price earning ratio= Market price per share/EPS: 2005 2006 2007 2008 1.169 16.808 5.701 12.184 8 4 8 8 Price earning ratio 20

Rs.

15 10 5 0 2005

2006

2007

2008

Years

INERPETATION: THIS ratio basically tells about the increase or decrease in the market prices for good sign the market prices should increases from EPS this ratio first shows an increasing trend from year 2005 to 2006 but in 2007 it goes down and in 2008 it increases.

75

76

 Profitability ratios Gross Profit Ratio = *100 Years

2005

2006

2007

2008

.Gross profit margin

11.05083 8

13.60858 1

12.7608419 4

14.1612738 3

gross profit margin

%

15 10 5 0 Years

2005

2006

2007

2008

Years

INTERPRETATION: The gross profit ratio indicates the proportion of gross profit to sales. Gross profit is calculated by deducting the cost of good sold from sales. Higher the ratio, the better it is, and the lower the relative cost of merchandise sold and better would be the company’s position. A low ratio indicates unfavorable trends in the form of reduction in selling prices or increase in cost of production this ratio increases from year 2005 to 2006 but a minor decrease appeared in 2007 and in 2008 it also increases.

77

 Operating Profit Ratio Operating Profit Ratio =

Years Operating Income margin.

2005

*100

2006

2007

2008

7.90192635 10.3469501 9.17429812 9 2 7

9.61117684 4

operating profit margin

%

15 10 5 0 Years

2005

2006

2007

2008

Years

INTERPRETATION: This ratio measures the percentage of profit earned on sale after deducting operating expenses from the Gross Profit. This ratio indicates that how efficiently the expenses are being controlled by management. The higher the margin the lower would be the operating expenses and better would be management ability to control expenses this ratio increases from year 2005 to 2006 and in 2007 it decreases but recovered or increased in 2008.

78

 Net profit Ratio =

Years Net profit margin

*100

2005

2006

2007

3.18839603 5.10326305 6.96081736 3 9 4

2008 4.00952385 8

%

Net profit margin 8 6 4 2 0 Years

2005

2006

2007

2008

Years

Interpretation: The net profit margin shows the net % age of sales after payment of interest and taxes from operating profit this ratio increases from year 2005 to year 2006 and also increases in 2007 but in 2008 it decreases.

79

Net ⋅ Sales Total ⋅ Assets

Total Asset Turnover =

Years Total Assets turnover Ratio

2005

2006

2007

62.9471163 26.3898346 63.3644584 7 2 6

2008 55.4944750 1

%

Total asset turnover ratio 80 60 40 20 0 Years

2005

2006

2007

2008

Years

INTERPRETATION: Total asset turnover measures the activity of the assets and the ability of the firm to generate sales through the use of sales there is a decreasing trend from year 2005 to 2006 but in 2007 it increases and in 2008 it again shows a decreasing position.

80

Return on Assets = *100

Years

2005

2006

2007

2.00700336 1.34674268 4.41071472 1 2 8

ROA

2008 2.22506421 5

ROI 5 4

%

3 2 1 0 Years

2005

2006

2007

2008

Years

INTERPRETATION: The purpose of this ratio is to calculate the return that the business is providing on total assets.

This is important from

owner’s point of view that what the business is earning on its assets, how their funds are being utilized. This ratio also provides an indicator of overall effectiveness of management in generating profit with the available assets .If utilization of assets is productive the return would be high and position would be good this ratio from 2005 to 2006 decreases but in 2007 it improves and in 2008 it again shows a decrease.

81

Net ⋅ Sales  Operating Assets Turnover = Average ⋅ Operating ⋅ Assets Years Operating Assets Turnover

2005

2006

2007

2008

103.198732 2

67.489324 8

126.19572 7

11.885292 3

Operating assets turnover

%

150 100 50 0 2005

2006

2007

2008

Years

INTERPRETATION: This ratio measures the ability of operating assets to generate sales .If this ratio is high then it is in favor of company. It shows the effective use of assets. It goes down in 2006 but increment comes in 2007 but in 2008 it again goes down.

82

Return on Operating Assets = Years Return on operating assets

2005

Operating Income Average Operating Assets

2006

2007

2008

8.15468782 6.98308677 11.5775722 2 6 2

11.4232387 2

Return on operating assets

%

15 10 5 0 2005

2006

2007

2008

Years

INTERPRETATION: This ratio gives the operating efficiency of management. This ratio indicated how Operating assets are utilized. In other words how much assets are used in operating activities. High Return on Operating Asset ratio shows the efficient use of operating assets. This ratio shows a minor decrease in 2006 but improves in 2007 and in 2008 it again shows a minor decrease.

83

Net ⋅ Sales Average ⋅ Net ⋅ Fixed ⋅ Assets

 Sales to Fixed Assets= Years

2005

2006

2007

2008

Sales to fixed assets ratio

103.20

67.49

126.20

118.85

Sales ti fixed asset ratio

%

150 100 50 0 2005

2006

2007

2008

Years

INTERPRETATION: This ratio measures the firm’s ability to make productive use of its fixed assets to generate sales. High ratio is favorable for the Company than that of low ratio this ratio goes down from year 2005 to 2006 but increase comes in 2007 and in 2008 it also shows a minor decrease.

84



Return on Investment = Net income / LTD+Equity Years Return on Investment

2005 3.80586 3

2006 0.442840 2

2007 6.83948 7

2008 3.730959

ROI 8

%

6 4 2 0 Years

2005

2006

2007

2008

YEARS

INTERPRETATION The net profit margin ignores the utilization of assets and the total asset turnover ratio ignores profitability on sales. The return on investment ratio or earning power resolve these short come. Return investment measures the overall effectiveness In generating profits with available assets. It shows a decrease from year 2005 to 2006 but in 2007 it shows a good position and improves but in 2008 it again goes down.

85

86

Du-Pont Analysis RETUN ON EQUITY = (Net Profit Margin ×Total Asset Turnover) × (Financial Leverage Multiplier) We need following ratios to calculate the Return on Equity.

Net Profit Ratio =

Years Net profit margin

Net Pr ofitAfterTax NetSales

2005

2006

2007

3.18839603 5.10326305 6.96081736 3 9 4

2008 4.00952385 8

Net ⋅ Sales Total Asset Turnover = Total ⋅ Assets

Years Total Assets turnover Ratio

2005

2006

2007

62.9471163 26.3898346 63.3644584 7 2 6

2008 55.4944750 1

87

Total Assets Equity

Financial leverage Multiplier =

Years

Financial leverage Multiplier

2005

2006

2007

2008

7.12923556 2.95865102 2.89894050 4 5 5

4.35295808 5

RETURN ON EQUITY= (Net Profit Margin ×Total Asset Turnover) × (Financial Leverage Multiplier)

Years

2005 1430.8 4

2006 398.454 2

2007 1278.63 1

2008 968.5611

%

ROE 2000 1500 1000 500 0 2005

2006

2007

2008

Years

88

DU PONT ANALYSIS: One of the easiest way to calculate whether a company is in asset re-creator or cash consumer is to look at the Return On Equity (ROE). The Du Pont Analysis is a way that breaks down ROE into three parts. •

Profit Margin

•

Asset Turnover

•

Equity Multiplier

DUPONT MODEL: Sales -CGS Earning for -Operating expenses common -Interest expenses share holder/ -Taxes sales Preferred Dividend

Net profit margin (ROA) Return on Asset (ROE) Return on

Current Asset Total asset Fixed asset

Total Assets/ Equity Sales turnover *

Total Current liability liability Long term + Liability shareholder Equity

Total asset/ Common stock equity

Financial leverage multiplier

89

But the main analysis in it we focused on ROE and interpretation is also based on this. The value of return on equity is given below:

RETURN ON EQUITY: years

2004

2005

2006

2007

2008

values

34

27

9

0.3

0.7

Return on total equity 40

34 27

30 20

9

10 0 2004

2005

2006

0.3

0.7

2007

2008

years

Interpretation: Dupont analysis is used to evaluate the firm effectiveness. The ROE is decreased since 2004 to 2008 but there is a great decrease in 2006 the main reason of this decreasing trend is that in 2005 the company face the bank kruptacy and its efficiency tremendously decreased. In this analysis we see that firm’s working is not effective and they never use its asset effectively and their liabilities increased more as compared to assets.

90

91

Cash Flow / Total Debt Years

2005 0.0 3

Cash Flow / Total Debt

2006 0.0018 7

2007

2008

0.00161

0.00691

Net Income / Total Debt Years

Net Income / Total Debt

2005

2006

2007

2008

0.05

0.044

0.147

0.060

2005

2006

2007

2008

0.387

0.3027

0.299

0.366

Total Debt / Total Assets Years

Total Debt / Total Assets

92

Multivariate Model Z= X1+X2+X3+X4+X5 Where

X1= Working Capital / Total Assets Years Working Capital / Total Assets

2005

2006

2007

2008

0.72

0.231

0.436

-6.22

X2= Retained Earning / Total Assets Years Retained Earning / Total Assets

2005 0.2964

2006

2007

0.3779

2008

0.3494

0.2297

X3= EBIT /Total Assets Years

2005

2006

2007

2008

EBIT /Total Assets

0.0497

0.0273

0.0581

0.053

X4= Market value of equity / book value of Total Debt

Years

Market value of equity / book value of Total Debt

2005

2006

2007

2008

0.362

1.11

1.15

0.626

X5=Sales / Total

Assets Years

2005

2006

2007

Sales / Total Assets

0.629

0.263

0.633

2008 0.55

93

Z – Score 2005

2006

2007

2008

X₁×.012

0.00864

0.002772 0.005232 -0.07464

X₂×.014

0.00415

0.005291 0.004892 0.003216

X₃×.033

0.00164

0.000901 0.001917 0.001749

X₄×.006

0.002172

0.00666

0.0069

0.003756

0.00629

0.00263

0.00633

0.0055

X₅×.01 Z

0.018742

0.018254 0.025271 -0.06042

The formula for Z score is Z= 0.012*x1+0.014*x2+0.033*x3+0.006*x4+0.010*x5 Z=0.018742

Standard: If the ‘Z’ is 2.675 that company is at cut off point. If it is greater than 2.675 than the position of the company is strong and if it is less than 2.675 that the position of the company is weak.

94

95

SWOT ANALYSIS: Each organization existing in the market analyzed though external and

internal

environment

has

some

Strengths,

Weaknesses,

Opportunities and Threats called SWOT analysis. SWOT analysis gives the overall competitive position of industry. The basic purpose of this analysis is to identify the current strategies of the organization and its potentials of competing in the competitive market and capability of dealing with those changes, which are taking place in the business environment sharply. It gives the scenario regarding weaknesses and threats to the company and offers the company that these should be eliminated or reduced at least as compared to other competitors.

96

STRENGTHS:  Colony mills have a very stable yarn market with good brand

image in the eyes of customers.  colony has a strong dealer ship network and a large sales force to cater to its needs  Certified by ISO.  WIDE production range.  Top player of TEXTILE business with max. Production capacity.  Having a strong good will.  Significant contribution towards the economic development of the country.  Excellent environmental & working conditions.  Safety measures of international standards are exercised.  Sales growth is very high.  Export sales especially show a tremendous boost as it increased

from RS 744 MILLION last year to 2.40 BILLION.  Company maintained its position against its competitors very successfully.  Company has strong resources to get the raw material.

97

WEAKNESSES:  H u g e v o l u m e o f p ro d u c t i o n w h i c h m a y b e d i f f i c u l t t o h a n d l e i n f u t u re .  M o n e t a r y s e n s i t i v e n e s s t o f o re i g n exc h a n g e m a r ke t .  I t h a s b e c o m e m o re c h a l l e n g i n g f o r t h e c o m p a n y t o m a i n t a i n c o m p e t i t i v e e d g e d u e t o W T O re g i m e .  L i m i t a t i o n s i n m e e t i n g u p t h e d e m a n d o f t ex t i l e . To o m u c h c e n t r a l i z a t i o n b u re a u c r a t i c c o n t ro l e f f e c t s timely decision making.  N o t s t ro n g m a r ke t i n g o r a d v e r t i s e m e n t .  C o m p a n y c a n n o t c o n v er t a c c o u n t re c e i v a b l e s i n t o c a s h q u i c k l y. M o s t l y s a l e s a re o n c re d i t b a s i s .  L a c k o f l o n g t erm p l a n n i n g .  Colony mills has no proper framework and policy for the recruitment of employees which result inefficiency. All the Directors and audit committee of the Company are close relative of the Chief Executive  Le n g t h y p ro c e d u re s i n d o c u m e n t a t i o n s .

98

OPPORTUNITIES:  A gas plant is establishing to overcome the shortage of electricity.  Yarn and sugar is exported.  I m p ro v e m e n t i n t h e q u a l i t y o f t ex t i l e a n d s u g a r.  Expansion

of

plants

to

meet

the

demand

m o re

efficiently.  Trying

to

get

opportunities

for

joint

ventures

with

other

international companies.  Expanding the business for globalization.  Having two sugar producing plants .  . Delegation of authority so that decisions can be m a d e a t t h e s p o t w i t h o u t a n y d e l a y.  M a y d i v e r s i fy t h e b u s i n e s s i n a l l i e d s er v i c e s . m a y b e cost

l e a d er s

by

cutting

down

the

unnecessary

ex p e n d i t u re s .  Adding the new and fresh staff in the company to encourage the work.  After textile and sugar now moving towards paper making industry.  Company is focused on reducing cost to maintain and enhance its local as well as its global position.

99

THREATS:  Wa t e r c r i s i s i s g o n e u p i n t h e c o u n t r y w h i c h m a y re s u l t i n t h e s e r i o u s p ro b l e m o f l o w g ro w t h i n c o t t o n , y a rn a n d s u g a r c a n e .  A f re e t r a d e p o l i c y o f WT O i s a m a j o r t h re a t t o t h e c o m p a n y.  M a i n t a i n i n g i t s l e a d e r s h i p i n f u t u re a ft e r i m p l e m e n t a t i o n o f f re e t r a d e z o n e s .  T h re a t o f e n t r y o f n ew c o m p e t i t o r s .  A trade free policy can be the threat of the company as new entry is easy.  T h re a t o f w a t e r a n d g a s c r i s i s i n i t h i g h c o n s u m p t i o n p o t e n t i a l m a r ke t .  N o w a d a y s e l e c t r i c i t y s h o r t a g e i s t h e b i g t h re a t t h a t c a n b e res u l t e d i n t h e l o w p ro d u c t i o n .  Due to political instability the bad condition of stock exchange is a threat of company that results in low share prices.  Due to high trade tariff export and cotton and yarn can be low..

100

Suggestions and Recommendations.  Jobs should be assigned according to their caliber to develop their interest in work, output and to enhance the efficiency of workers. It is also observed that in some cases more than one department maintains the same record. This is done all of over staffing and unbalanced distribution of work, which results in de-motivation of the employee and decrease in efficiency. 

In colony mills there is lot of documentation and lengthy procedure of paper work involved, which results in wastage of time and deficiency so each system should be computerized through intranet work.

 C o m p a n y m u s t t a ke i n i t i a t i v e s t e p s t o m a i n t a i n t h e h u g e o rd e r s .  Wo r ke r s

must be trained to follow the safety rules.

Management should take necessary action to implement the safety rules in the organization.  J o b v a r i e t y m u s t b e a d d e d t o c h a n g e t h e a t m o s p h ere ,

t o d e v e l o p t h e i n t ere s t t o e m p l o y e e s a n d t o i n c re a s e t h e i r p e r f o rm a n c e. . So proper analysis should be done and explore those employees who can do better work in the organization.  People working in one section or department from years are still with the same knowledge and style of doing job. There should be proper career planning of employee that not only sharpens the

101

skills of the employee & improve its efficiency but also results in better and improved output for the organization.  Proper advertisement must be planned to increase the sales, to stay in touch with customers. 

There should be delegation of authority up to certain extent that enables manager to take timely decisions at the spot with confidence. Involvement of top management and reaching at the final decisions is time consuming and some times result in heavy losses.

 C o l o n y m i l l s m u s t a d o p t t h e n e w t e c h n o l o g y.  Pro m o t i o n c a m p a i g n s a n d s a l e s p ro m o t i o n s m u s t b e f o r s u g a r m i l l s a l s o.

102

CONCLUSION We financially analyzed the four years annual reports of Colony Textile limited, by making following analysis  Short term liquidity analysis  Long term liquidity analysis  Profitability analysis  Investor’s analysis  Du Pont analysis

 Bankruptcy models

 By analyzed its short term liquidity, we concluded that the short

term liquidity position of this company is going down with the passage of time. Besides this, company short term ratios are less as compare to benchmark ratios. So as a short term creditor, we cannot make the decision to give short term loan to colony textile mills limited.  Company’s long term debt paying ability is also going down .It

means that company has no ability to pay its long term debts. So as a long term creditor, we cannot make the decision to give long term loan to colony textile mills limited.  Profitability ratios are improving day by day. Although this increase is not so much high, but increase in profitability ratios

103

tells us that company is earning good profits and utilizing its assets in an excellent way. So as an investor ,we can take decision to invest in colony textile mills limited.  After that we make the investor’s analysis in investor’s analysis degree of financial leverage is improving. It means that risk in the business is increasing. But when risk is increasing return will also go to increase. Because where there is risk, there is return. After that we observed that the earning per share of colony textile mills limited is going to improve day by day, and that is a positive sign. So we conclude that as an investor, we make investment in colony textile mills limited.

104

105

COLONY MILLS LIMITED SUMMARIZED INCOME STATEMENT VERTICAL ANALYSIS AS ON 2005 Rs.(00 0)

2006 Rs.(00 0)

2007 Rs.(00 0)

2008 Rs.(00 0)

100%

100%

100%

100%

63.45 7.22 18.21 88.87 -0.04

68.80 7.11 16.05 91.96 1.79

66.82 5.67 13.63 86.12 0.16

67.67 4.96 13.96 86.60 0.03

88.83

90.18

85.96

86.63

-0.12

-3.78

1.28

-0.80

Cost of Goods Sold

88.95

86.39

87.24

85.84

Gross Profit

11.05

13.61

12.76

14.16

0.10

0.17

0.11

0.15

0.04 1.56 0.19 1.88

0.05 1.40 0.54 2.16

0.05 2.05 0.14 2.35

0.05 3.01 0.33 3.54

0.58

0.59

0.63

0.40

0.08 0.27

0.14 0.37

0.09 0.52

0.11 0.50

Sales Cost of Good Sold Raw Material Salary Wages FOH Total Manufacurring Cost Less Excees Closing Cost W.I.P Cost of Goods Manufactured Others

Less Operating Expenses Distrubtion Cost Product Transport Salary & Wages Export Sales Expenses Others Total Distrubtion Cost Administrative Expences Salaries & Benefits Repair & Maintances Others

106

Total Adminstrative Expenses

100.00

100.00

100.00

100.00

Others Operating Expenses

0.34

0.00

0.00

0.00

Operating Profit (EBIT)

7.90

10.35

9.17

9.61

Intrest on Long Term Loan Intrest on Short Term Loan Bank Charges & Other Finance Cost

1.78 1.50

0.13 4.19

3.07 1.87

1.67 5.16

0.08

0.37

0.36

1.65

Other Expenses

0.49

4.01

1.14

-1.48

Other Income EBT Tax

1.36 5.40 2.21 3.19

4.15 5.80 0.70 5.10

5.18 7.92 0.96 6.96

2.57 5.18 1.17 4.01

Less Finance Cost

Net Profit

107

COLONY MILLS LIMITED SUMMARIZED INCOME STATEMENT HORIZONTAL ANALYSIS AS ON 2005 RS.(00 0)

2006

2007

2008

RS.(000)

RS.(000)

RS.(000)

100.0 0

61.3804 43

172.702 39

209.611 14

100.00 100.00 100.00

66.56 60.48 54.12

181.89 135.61 129.33

223.58 144.15 160.76

100.00

63.52

167.36

204.26

100.00

(3028.98 )

(783.78)

(197.09)

100.00

62.31

167.11

204.42

100.00

1987.02

(1895.03 )

1425.79

Cost of Goods Sold

100.00

59.62

169.38

202.28

Gross Profit

100.00

75.59

199.43

268.61

100.00

108.58

185.31

320.21

100.00

75.61

216.80

287.07

100.00

55.37

228.11

405.39

174.18

125.61

365.42

70.48

215.37

394.42

Sales Cost of Good Sold Raw Material Salary Wages FOH Total Manufacurring Cost Less Excees Closing Cost W.I.P Cost of Goods Manufactured Others

Less Operating Expenses Distrubtion Cost Product Transport Salary & Wages Export Sales Expenses Others Total

100.0 0 100.00

108

Distrubtion Cost Administrative Expences Salaries & Benefits Repair & Maintances Others Total Adminstrative Expenses

100.00

62.47

187.79

143.82

100.00

107.43

187.57

295.37

100.00

85.02

337.37

389.00

100.00

72.95

231.16

228.20

Others Operating Expenses

100.00

0.00

0.00

0.00

Operating Profit (EBIT)

100.00

80.37

200.51

254.95

Less Finance Cost Intrest on Long Term Loan Intrest on Short Term Loan Bank Charges & Other Finance Cost

100.00 100.00

4.32 171.02

297.04 214.65

196.08 719.36

100.00

275.11

742.82

4182.24

Other Expenses

100.00

502.18

400.85

(631.54)

Other Income EBT Tax Net Profit

100.00 100.00 100.00

187.34 65.95 19.44

657.77 253.26 75.00

395.91 200.83 110.45

100.00

98.24

377.04

263.59

109

COLONY MILLS LIMITED SUMMARIZED BALANCE SHEET VERTICAL ANALYSIS AS ON ASSET S CURRENT ASSETS Cash & Bank Balance Short Term Investment Trade Debts Loans & Advances Short Term Deposits Other Receivable Stores & Spares Tax Refunds due from Government Stock in Trade Raw Material Working in Process Finish Goods Assets held for disposal Real etate property held for trading Total Current Assets FIXED ASSETS Work in Progress Plant & Machinery Less: Depreciation Other Total Fix Assets

2005 Rs.(00 0)

2006 Rs.(00 0)

2007 Rs.(00 0)

2008 Rs.(0 0

1.23

0.06

0.05

0.25

2.76

10.43

4.75

3.68

3.62

2.13

3.34

2.62

2.39

0.00

0.00

0.00

9.01

0.00

0.00

0.00

0.23 0.56

2.24 0.83

5.53 0.80

6.28 0.96

0.22

0.54

0.92

0.97

0.00 11.48

0.00 11.16

0.00 11.97

0.00 12.70

1.34

1.03

0.98

0.69

5.81 0.00

3.65 4.09

2.30 5.31

2.10 0.00

0.00

0.00

0.00

3.88

38.63

36.16

35.95

34.13

0.00 0.00 7.81

0.00 0.00 3.61

0.00 0.00 2.93

0.00 0.00 10.15

53.18

32.93

43.23

37.20

8.87

6.06

8.50

7.33

44.31 8.87 61.00 0.00

26.87 33.10 63.58 0.00

34.73 26.13 63.80 0.00

29.87 19.48 59.50 0.00

110

Long Term Security Deposit Long Term Investment

Total Assets

0.31

0.03

0.20

6.22

0.06

0.23

0.05

0.15

0.00 0.00

0.00 0.00

0.00 0.00

100.00

100.00

100.00

0.00 0.00 100.0 0

1.05

2.61

6.11

15.54

13.56

1.99

6.64

0.00

0.14

0.36

0.02

0.15

1.64

1.09

1.05

0.89

16.38

6.06

13.82

16.58

1.29

1.14

1.05

1.32

15.03

23.96

17.44

17.90

1.22

0.62

0.32

0.28

3.92

3.75

2.88

4.27

0.00

0.40

0.00

0.00

37.84

35.92

35.51

40.36

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.85

0.00

0.00

0.00

0.23

0.57

0.81

1.05

20.48

25.35

26.46

33.04

17.15 38.71

4.36 30.28

2.72 29.99

2.58 36.66

4.70 2.96

31.34 2.46

26.75 7.75

19.30 3.67

6.36

0.00

0.00

0.00

0.00

0.00

0.00

0.00

LIABILITIES & EQUITY CURRENT LIABILITIES Trade & Other Payables Credito r Bills Payable Advance Payments Other Total Trade & other Payables Accured Interest & Mark Up Short Term Borrowing Tax Current Portion of Non Current Liabilities Provision against contingent liabilities Total Current Liabilities NON CURRENT LIABILITIES Loan from related parities Liabilities against asset Long term financing other STOCK HOLDER EQUITY Issued Capital Capital Reserve unapproriated profit

111

Total Equity Surplus on Fix Asset Total Liabilities & Equity

0.00 14.03

0.00 33.80

0.00 34.50

0.00 22.97

9.43

0.00

0.00

0.00

0.00

0.00

0.00

100.00

100.00

100.00

0.00 100.0 0

112

COLONY MILLS LIMITED SUMMARIZED BALANCE SHEET HORIZONTAL ANALYSIS AS ON 2005 Rs.(00 0)

2006 Rs.(00 0)

2007 Rs.(00 0)

2008 Rs.(00 0

100.00 100.00 100.00

6.76 553.71 86.12

6.75 295.62 158.20

49.07 317.71 172.12

100.00

0.00

0.00

0.00

100.00

0.00

0.00

0.00

100.00

1445.1 1 218.69

4174.9 0 247.95

100.00

364.54

724.87

6571.1 0 407.76 1056.4 8

100.00

142.36

178.91

263.15

100.00

112.33

125.61

122.27

100.00

92.03

68.02

86.09

100.00

137.03

159.65

210.09

100.00

67.72

64.32

308.84

100.00

90.65

139.48

166.29

100.00

100.00

164.41

196.39

100.00 100.00 100.00

88.78 546.29 152.61

134.49 505.52 179.45

160.27 522.07 231.91

100.00

14.67

111.13

100.00

578.05

144.46

ASSETS CURRENT ASSETS Cash & Bank Balance Short Term Investment Trade Debts Loans & Advances Short Term Deposits Other Receivable Stores & Spares Tax Refunds due from Government Stock in Trade Raw Material Working in Process Finish Goods Assets held for disposal Real etate property held for trading Total Current Assets FIXED ASSETS Work in Progress Plant & Machinery Less: Depreciation Other Total Fix Assets Long Term Security Deposit Long Term Investment

100.00

4709.4 8 592.90

113

171.56

237.76

21.53

1000.7 6 84.05

3526.7 2 0.00

100.00

361.80

28.69

252.77

100.00

97.85

109.91

129.84

100.00

54.16

144.75

240.66

100.00 100.00 100.00

128.56 233.44 74.54

139.66 199.14 44.76

243.48 283.26 55.42

100.00

140.06

125.97

259.07

100.00

139.00

161.01

253.62

100.00

0.00

0.00

100.00

363.82

612.88

0.00 1095.6 8

100.00

181.23

221.73

383.59

100.00 100.00

37.26 114.52

27.18 132.94

35.79 225.21

100.00 100.00

976.71 121.30

976.71 448.40

976.71 294.53

100.00

0.00

0.00

0.00

Total Equity Surplus on Fix Asset

100.00 100.00

352.79 0.00

421.92 0.00

389.40 0.00

Total Liabilities & Equity

100.00

146.41

171.56

237.76

Total Assets

100.00

146.41

100.00

365.50

100.00

LIABILITIES & EQUITY CURRENT LIABILITIES Trade & Other Payables Credito r Bills Payable Advance Payments Other Total Trade & other Payables Accured Interest & Mark Up Short Term Borrowing Tax Current Portion of Non Current Liabilities Provision against contingent liabilities Total Current Liabilities NON CURRENT LIABILITIES Loan from related parities Liabilities against asset Long term financing other STOCK HOLDER EQUITY Issued Capital Capital Reserve unapproriated profit

114

PROFITABILITY RATIOS. Years

2005

2006

2007

2008

.G.P.M

11.050838

13.608581

12.7608419 4

14.16127383

Years

2005

2006

2007

2008

O.I.M

7.90192635 9

10.3469501 2

9.17429812 7

9.611176844

Years

2005

2006

2007

2008

Net profit margin

3.18839603 3

5.10326305 9

6.96081736 4

4.009523858

Years

2005

2006

2007

2008

T.A.T.R

62.94711637

26.3898346 2

Years

2005

2006

2007

2008

ROA

2.00700336 1

1.34674268 2

4.41071472 8

2.225064215

Years

2005

2006

2007

2008

R.O.A

8.15468782 2

6.98308677 6

11.5775722 2

11.42323872

63.3644584 55.49447501 6

115

Years

2005

2006

2007

2008

Operating Assets Turnover

103.198732 2

67.4893248

126.195727

11.8852923

Years

2005

2006

2007

2008

Sales to fixed assets ratio

103.20

67.49

126.20

118.85

Years

2005

2006

2007

2008

Return on Investment

3.805863

0.4428402

6.839487

3.730959

116

SHORT TERM DEBT PAYING ABILITY. CUURRENT ASSETS CURRENT LIABILITIES CURRENT RATIO

QUICK ASSETS CURRENT LIABILITIES QUICK RATIO

CUURRENT ASSETS CURRENT LIABILITIES WORKING CAPITAL

CASH MRK SECURITIES

2005 205554692 2 201337844 4 1.0209441 39

2006 28166693 14 27986327 92 1.0064447 6

2007 328162259 7 324178169 1 1.01228981 8

106441674 4 201337844 4 0.5286719 68

15826941 78 27986327 92 0.5655240 6

188917143 6 324178169 1 0.58275714 3

205554692 2 201337844 4

28166693 14 27986327 92

328162259 7 324178169 1

42168478

18036522

39840906

65352792

4419673 81220981 3 27986327 92 0.2917958 7

4414338

146685782

CASH RATIO

201337844 4 0.1053148 13

ANNUAL CREDIT SALES

334940675 2

CURRENT LIABILITIES

AVG A/R A/R TURNOVER

A/R TURNOVER AVG COLLECTION PERIOD

22.318371 52

20558806 94 23985087 5 8.5714954 9

22.318371 52 16.130209 13

8.571495 49 41.99967 21

150073976

1336742 324178169 1 0.00177404 9

578505405 575118430 1.00588917 8

1.00588918 357.892307 8

2008 43184774 48 51063040 58 0.8457149

23581846 77 51063040 58 0.4618183

43184774 48 51063040 58 -78782661 0

32066725 46603014 5 51063040 58 0.0975454 8

70207295 42 97937175 8 7.1686052 7

7.168605 27 50.21897 38

117

CGS AVG INVENTORY INVENTORY TURNOVER

INVENTORY TURNOVER AVG OF INVENTORY

SALES WORKING CAPITAL SALES TO WORKING CAPITAL

A/R Turnover in days Inventory Turnover in days OPERATING CYCLE

297926922 0 990382399 3.0082008 96

17761045 03 11125526 57 1.5964228 7

504635381 3 131321314 9 3.84275303 4

3.0082008 96 119.67285 84

1.596422 87 225.5041 61

334940675 2

20558806 94

578450540 5

42168478

18036522

39840906

79.429159 19

113.98432

145.190107

16.130209 13 119.67285 84 135.80306 75

41.99967 21 225.5041 61 267.5038 33

357.892307 8 93.6828355 1 451.575143 3

3.84275303 93.6828355 1

60265048 07 16763719 66 3.5949687 4

3.594968 7 100.1399 54

70207295 42 -78782661 0 -8.911516 1

50.21897 38 100.1399 54 150.3589 28

118

LONG TERM DEBT PAYING ABILITY. Total liabilities Total assets Debt ratio

407301254 8 532095821 0 0.765465 991

Total liabilities Shareholder' s equity Debt to Equity ratio

407301254 8

515732572 1 779042659 3 0.662008 127

597988124 6 912894317 3 0.655046 387

97448719 16 1.2651E+ 10 0.770271 16

515732572 1 263310087 2

597988124 6 314906192 7

97448719 16 29063506 50

5.457159 673

1.958651 025

1.898940 505

3.352958 09

Total liabilities Shareholder' s equity Intangible assets DEBT TO TENGIBLE NET WORTH RATIO

407301254 8

515732572 1 263310087 2

597988124 6 314906192 7

97448719 16 29063506 50

0

0

0

0

5.457159 673

1.958651 025

1.898940 505

3.352958 09

Current liabilities Shareholder' s equity Current debt to net worth ratio

201337844 4

279863279 2 263310087 2

324178169 1 314906192 7

51063040 58 29063506 50

2.697592 389

1.062865 772

1.029443 614

1.756947

205963410 4

235869292 9 263310087 2

273809955 5 314906192 7

46385678 58 29063506 50

LTD Equity

746361256

746361256

746361256

746361256

119

Total capitalizati on ratio

Fixed assets Shareholder' s equity Fixed asset to equity ratio

EBIT Interest Time interest earned ratio

EBIT Lease Pmt Tax rate Principle intrest Preferred dividened Fixed charge coverage ratio

0.734011 94

0.472514 09

0.465096 73

0.614793 63

324558905 0

495319444 1 263310087 2

582421845 6 314906192 7

75269258 20 29063506 50

4.348549 746

1.881125 973

1.849509 026

2.589820 27

264667655 5

212720950

530687771

129235123

178660925

371807572

20.47954 529

1.190640 595

1.427318 352

264667655 5

212720950

530687771

23443822

18219485

34889562

40% 0

40% 0

40% 0

129235123

178660925

371807572

0

0

0

0

10.49307 897

0.703799 129

0.834395 848

0.80819 41

746361256

67477473 2 49156894 8 1.372696 01

6747747 32 3641656 8 40% 0 4915689 48

120

Investor’s Analysis 2005

2006

2007

310183157

291991853

830067779

180948234

119330928

458269207

1.7142093 63

2.4469084 24

1.8113103 96

106792352

104917000

513886773

28149782 6

0

0

0

0

10410959

135653589

244176300

10.257686 35

0.7734185 34

2.1045726 92

Financial leverage= EBIT/EBT EBIT EBT Financial leverage EPS=net income-Preferred dividened/No.of C/S Outstanding Net income Preferred dividened weighted average

C/S outstanding

EPS

2008 85494179 9 36337285 1 2.3527949 2

24500000 0 1.1489707 2

Note There is no dilutive effect on the basic EPS of a company. Price earning ratio=

Market price per share/EPS Market price per share EPS

P/E ratio % of earning retained=Net income-all divideneds/net income Net income

Dividened payout ratio= Dividened per share/EPS

All divideneds % earning retained

Dividened per share Earning per share Dividened payout ratio Dividened Yield=Dividened per share/ Market price of share Dividened per share Market price of share Dividened yield

12

13

12

14

10.25786 1.1698346 44

0.7734185 16.808493 72

2.1045727 5.7018700 28

1.1489707

106792352

104917000

513886773

106792352

104917000

513886773

0

0

0

0

10.26

0.77

2.1045727

1.1489707

10.26

0.77

2.1045727

1.1489707

1

1

1

1

10.26

0.77

2.1045727

1.1489707

12.184819

28149782 6 28149782 6

12

13

12

14

0.855

0.0592307 69

0.1753810 58

0.0820693 4

121

Book value=Total shareholder' s equityPreferred equity

Total NO.of common stock outstanding Total shareholder's equity Preferred equity common stock outstanding

746361256

263310087 2

314906192 7

29063506 50

0

0

0

0

10410959

135653589

244176300

71.689962 09

19.410477 02

12.896673 13

24500000 0 11.862655 7

122