Analysis of Financial Statements

Analysis of Financial
Statements
Pak Suzuki Motors Company
SUBMITTED TO: SIR AHMED ARIF
SUBMITTED BY:
 NIMRA
(2010-BPA-020)
 ZAHRA RAUF
(2010-BPA-030)
SUBMISSION DATE:
24TH JANUARY 2014

FATIMA JINNAH WOMEN UNIVERSITY

EXECUTIVE SUMMARY
This project is about the Financial Analysis of Pak Suzuki Motor Company. During the
project, we have done the detailed study of Pak Suzuki Motor Company Limited like
their company financial statements, mission, and vision and industry values. With the
help of profitability, solvency, liquidity ratios and vertical, horizontal analysis, we have
conducted the analysis. In addition, the study about environmental policy and the
Automobiles industry of Pakistan .Then we had prepare financial Analysis of Pak Suzuki
Motors, we have learned that they are doing well in the Pakistani market and are leading
market shareholder. They are producing Cars at affordable prices for the low income to
middle-income people. However, they are unable to compete with Corolla and Honda in
Luxury and semi-luxury cars. They are making its space in marketing slowly but
continuously. The financial improvement of the company is gradually but continuously
increasing. The company is increasing its investments and current investment and the
creditor loan issuers have a high trust over lending loans to the company. The company
will raise its position very effectively and efficiently.

Content

1. Introduction................................................................................................................................5
1.1 History..................................................................................................................................5
1.2 Board of Directors................................................................................................................6
1.3 Audit committee....................................................................................................................7
1.4

Human resource department:..........................................................................................7

1.5

LEGAL ADVISORS:......................................................................................................7

1.6 Environmental policy:...........................................................................................................7
1.7 Benchmarks:.........................................................................................................................8
1.7.1 For the year 2002:..........................................................................................................8
1.7.2 For the year 2003:..........................................................................................................8
1.7.3 For the year 2004:..........................................................................................................8
1.7.4 For the year 2005:..........................................................................................................8
1.7.5 For the year 2006:..........................................................................................................9
1.7.6 For the year 2007:..........................................................................................................9
1.7.7 For the year 2009:..........................................................................................................9
1.7.8 For the year 2010:..........................................................................................................9
1.7.9 For the year 2011:..........................................................................................................9
1.7.10 For the year 2012:........................................................................................................9
1.8 Integrated Management Policy.............................................................................................9
2. External audit firm (Ernst & Young Ford Rhodes Sidat Hyder)................................................10
2.1 History:...............................................................................................................................10
2.2 Global Structure:.................................................................................................................10
2.2.1 Americas:.....................................................................................................................11

2.2.2 Europe, Middle East, India and Africa (EMEIA):........................................................11
2.2.3 Asia-Pacific:.................................................................................................................11
2.2.4 Japan:...........................................................................................................................11
3. Automobile industry:................................................................................................................12
3.1 Introduction:.......................................................................................................................12
3.2 Backgrounds:......................................................................................................................13
3.2 major companies:................................................................................................................14
3.3 Sales of major companies:..................................................................................................14
4. Financial statements and analysis:............................................................................................15
4.1 Income Statement:..............................................................................................................15
4.2 Balance Sheet......................................................................................................................19
4.3 Cash Flow Statement:.........................................................................................................29
4.4 Liquidity, Debt paying, and Profitability Ratios:................................................................31
4.4.1 Liquidity Ratios Analysis:............................................................................................31
4.4.2 Long-Term Debt Paying ability Ratios.........................................................................36
4.4.3 Profitability Ratios:......................................................................................................38
5. Comprehensive analysis:..........................................................................................................43
5.1 Horizontal and vertical analysis:.........................................................................................43
5.1.1 Horizontal analysis:.....................................................................................................43
5.1.2 Vertical Analysis:.........................................................................................................44
5.2 Ratios Analysis:..................................................................................................................45
5.2.1 Liquidity Ratios Analysis.............................................................................................45
5.2.2 Long-Term Debt Paying ability Ratios Analysis..........................................................46
5.2.3 Profitability Ratios analysis.........................................................................................46
6. Recommendations ……………………………………………………………...………… 47

1. Introduction
1.1 History
Pak Suzuki Motor Company Limited (PSMCL) is a public limited company and
its shares quoted on Karachi & Lahore Stock Exchanges in Pakistan with code PSMC.
With the terms of a joint venture, agreement between Pakistan Automobile Corporation
Limited (representing Government of Pakistan) and Suzuki Motor Corporation (SMC)
Japan the Company was formulate in August 1983. PMSC started its production in
January 1984 with the objective of progressive manufacturing, assembling and marketing
of automobiles in Pakistan. By early 1990, on completion of first phase of this plant, inhouse assembly of all the Suzuki engines started. In 1992, the plant was completed and
production of the Margalla Car commenced. Under the Government’s privatization
policy, PSMC was privatize and placed under Japanese management by September 1992.
At the time of privatization, SMC increased its equity from 25% to 40%. Subsequently,
SMC progressively increased its equity to 73.09% by purchasing remaining shares from
PACO (pak Suzuki Annual Report, 2012).
After privatization PSMC expand its existing plant capacity to 50000 P.A and was
complete in July 1994. Because of economic recession, the capacity remains underutilized until 2002. PSMC increases their capacity in phases after realizing growth in
demand as follows (pak Suzuki Annual Report, 2012).


PSMC completed its first phase in January 2005 by enhancing their vehicles



capacity to 80,000 vehicles.
Then its second phase was complete in January 2006 by enhancing their capacity



to 120,000 vehicles.
Its third phase was completed on 6th February 2007, by enhancing their capacity
to150, 000 vehicles and Prime Minister of Pakistan, Mr. Shaukat Aziz,
inaugurated this.
PSMC held 41% and 43% shares in SMPL respectively. PSMC issued and allot its
ordinary shares (1,233,300) of Rs.10/- each to the qualifying shareholders of
SMPL on the date of final book closure i.e. 29th October 2007 the shares trade
ceased as well. By July 2011, PSMC start effectively, operationalizes its setup.

The Company continues to be making its place in automobile industry of
Pakistan. With passing time, PSMC has developed an effective and
comprehensive network countrywide.

1.2 Board of Directors

Hirofumi Nagao Chairman & Chief
Executive
Hirofumi Nagao
- Chairman &
Chief Executive
Satoshi
Ina - Dy.
Managing
Director

Hidekazu
Terada Director

Chief Financial
Officer & Company
Secretary Abdul
Hamid Bhombal
Mumtaz
Ahmed
Shaikh Director

Jamil
Ahmed Director

Wazir Ali
Khoja Director

Kenichi
Ayukawa
- Director

Figure 1: Board of Directors

1.3 Audit committee
Audit
Committee
Hidekazu
Terada Chairman
Kenichi
Ayukawa Member
Figure 2: Audit committee

Wazir Ali Khoja
- Member

Obaid Rashid
Zuberi Secretary

1.4 Human resource department:
Human Resource and
Remuneration
(HR & PR) Committee
Wazir Ali Khoja - Chairman

Hirofumi Nagao Member

Satoshi Ina Member

Abdul Hamid
Bhombal - Secretary

Figure 3: Human resource department

1.5 LEGAL ADVISORS:
LEGAL
ADVISOR
Syed Qamaruddin
Hassan

Orr Dignam &
Company

Figure 4: LEGAL ADVISORS

1.6 Environmental policy:
As a general manufacturer of automobiles, motorcycles, outboard motors, etc.,
Suzuki addresses environmental conservation at all stages in its operations from
development to disposal. In product development, they took every effort to improve their
products that are reducing noise and exhaust emissions, clean energy vehicles (pak
Suzuki Annual Report, 2012).
In manufacturing, they took steps to reduce environmental risks and the use of
alternative energy. In distribution, they improve transportation efficiency. In marketing,
they improve environmental management and proper disposal of end-of-life products,
provide our employees with environmental education, and promote environmental
management at our dealers, social action programs in local communities (pak Suzuki
Annual Report, 2012).

1.7 Benchmarks:
1.7.1 For the year 2002:

Introduced New BALENO also CNG version of BALENO, ALTO and CULTUS
launched. The milestone of 250,000th vehicle from the new plant crossed.
1.7.2 For the year 2003:

PSMC received ISO 9001: 2000 certification from AibVincotte International
Limited Brussels, Belgium, 20th Anniversary Celebrations. Commencement of
Component export to Hungary, Sub-leasing of land to Vendors Industry of Pak Suzuki
adjacent to its assembly plant.
1.7.3 For the year 2004:

New Plastic Injection Molding Shop commenced production of Bumpers,
Instrument Panels Radiator Grills and Wheel Caps.
1.7.4 For the year 2005:

Inauguration of first phase of capacity expansion (80,000 vehicles) by the Federal
Minister for Production, Industries and Special Initiatives. Achieved milestone of
100,000 online factory fitted CNG Vehicles. The Company received ISO 14001: 2004
and OHSAS 18001: 1999 certification from AIB-VINCOTTE International Limited
Brussels, Belgium.
1.7.5 For the year 2006:

Second phase of capacity expansion (120,000 Vehicles) completed. Production of
locally manufactured LIANA Car. Production of 100,000 vehicles crossed in a calendar
year.
1.7.6 For the year 2007:

Suzuki Motorcycles Pakistan Ltd. merged with Pak Suzuki Motor Company.
1.7.7 For the year 2009:

The 1,000,000th vehicle rolled out from the Pak Suzuki Plant. Cargo Van was
introduced.

1.7.8 For the year 2010:

1300 cc locally manufactured car Swift was introduced.
1.7.9 For the year 2011:

Inauguration of new motorcycle plant at Bin Qasim.
1.7.10 For the year 2012:

Automatic version of Suzuki Swift 1300cc was introduced. New Suzuki
Motorcycle “Raider 110cc” was launch replacing “Shogun”. Complete range of Suzuki
products was upgrade to Euro II technology.

1.8 Integrated Management Policy
PSMC made its self-accountable for corporate citizenship by managing quality,
environmental, safety & occupational health matters as an essential part of their business.
PSMC have listed some fundamental principles for fulfilling its responsibility, which are
as follows:


To provide top quality products at competitive price to the satisfaction and



requirement for customers.
To conduct our operations in compliance with applicable environmental,



occupational health & safety laws and regulations.
To recognize the inter-relationship between energy and the environment, and



promotion of the efficient use of energy throughout system.
To ensure safe disposal of waste generated from facility and will minimize the
discharge of waste materials into the environment by utilizing responsible



pollution control practices.
To seek opportunities to improve adherence to these principles.

2. External audit firm (Ernst & Young Ford Rhodes Sidat Hyder)
2.1 History:
Its roots go back to the 19th century, contributions of many people around the
world; Founder of this company was Arthur young & alwin C Ernst. In 1906, he formed

an accounting firm, Arthur Young & Company, with his brother Stanley. They both were
innovator and Both Arthur Young, Ernst initiates an idea that accounting information can
be used to make decisions of businesses and can make a difference to clients’
organizations. He inspired people to provide better service to their clients. Young also
positioned himself as a business advisor.
In 1920, Ernst & Ernst’s operating philosophy stated, “The success of Ernst &
Ernst depends wholly upon the character, ability and industry of the men and women who
make up the organization.” Young supported the development of professionals. In 1924,
they allied with prominent British firms: Young with Broads Paterson & Co and Ernst
with Whiney Smith & Whiney. They associate with each other and start providing
services to clients. The new organization quickly positioned itself on the leading edge of
rapid globalization, new business technologies and continuous business change. EY a
global organization of 175,000 people built a better-globalized working world.

2.2 Global Structure:
Ernst & young comprised of the Executive and Regions. They supervise
our brand, business planning, global strategy, investments & priorities. Four
service lines are represented and enabled by the four functions of Markets,
Operations, People and Risk.
This structure allows us to make quick decisions, execute strategies and
provide services to our clients wherever they are doing business.
The Executive includes:
 Global leadership
 governance bodies
 Four geographic Areas.

The four geographic Areas are:
2.2.1 Americas:

Our Americas Area comprises 11 Regions and nearly 45,000 people. The
workplace culture of the Americas Area is regularly recognized by organizations such as
the Great Place to Work Institute and Universe, which frequently place EY near the top of
their lists for countries across the region.
2.2.2 Europe, Middle East, India and Africa (EMEIA):
Our EMEIA Area brings together more than 73,000 people from 12 Regions
across Europe, the Middle East, India and Africa. Creating EMEIA cemented our
reputation as the most globally integrated organization in our field.
2.2.3 Asia-Pacific:
Asia-Pacific brings together more than 27,000 people across five Regions. We
believe that much of our clients’ and our own future growth will come from the region
and Asia-Pacific Area will enable us to better serve clients looking to invest in or grow
across the region.
2.2.4 Japan:
Our Japan Area employs more than 6,500 professionals and works with many of
Japan’s best-known companies across the financial, manufacturing and electronics
sectors. It also acts as the hub for our Japan Business Services network — nearly 350
Japanese-speaking professionals based in 60 cities around the globe who serve Japanese
clients operating overseas.

3. Automobile industry:
3.1 Introduction:
The automobile industry of Pakistan is fastest growing industry of Pakistan. It is
estimated that the industry is grown up by 32% in 2009-2010 and contributed US$ 3.6
billion to the GDP of Pakistan (muhammad Emmad, 2011).
The sector is currently employing 19200 people of Pakistan. During year 2011
with the increase of 8.7 % 221147 vehicles were produced while the sales of new vehicle
were 215732 (muhammad Emmad, 2011).
High ends cars or 1300cc dominated the Pakistani famous yet again as Toyota
corolla managed to be most famous car among people. Pak Suzuki has a monopoly on
small cars production and is biggest local dealer having a market share of 53%.
(muhammad Emmad, 2011).
A few reasons affect the Pakistani automobile industry significantly, which are as
follows:





Unstable economic and political situation
Higher interest rate for financing and leasing.
Depreciation of Pak Rupee against Japanese Yen and US dollar
High import tariffs and increases in the prices of raw material.

3.2 Backgrounds:
Automobile industry in Pakistan started in 1950 and has gone through different
phases; Pakistan was the First Islamic Country in the world, which manufactured its own:
 A 4 Wheel Drive Jeep of its own in late 60's called NAYA DAUR in collaboration
with WILLIS jeep.
 Motorcycles in early 70's with the collaboration of JAVA motorcycle
 Prototype Diesel Engines by the Lahore based company called BECO (Battala
Engineering Company).
 A Motor Car of its own in early 70's with the collaboration of SKODA Motors and
named SKOPAK.
After effects of 1971 war lead to an economic shock, All the industries were
Nationalized and by then the production of NAYA DAUR jeeps, motorcycles was stopped
as their production in the country was not cost effective by then. The BECO was
nationalized and converted into PECO (Pakistan Engineering Company) which instead of
making Diesel Engines was put on manufacturing PECO Bicycles. In 1980s another
Pakistani company tried to break into Pakistan's Automobile Market, which is dominated
by foreign companies, and has no room for Home grown talent. a roadside mechanic, late
Khalil-ur-Rahman, in the early eighties was said to be successful but lacked any support
from any quarter and instead it was reported that the government then introduced a policy
of concessionary rate on CBU of Suzuki pickups, same capacity as the one that was
conceived locally and to put the last nail in the coffin the late mechanic though he would
get attention in the capital and thus shifted his garage there but could not succeed.
Later in 2005, a Pakistani company called "TMC" manufactured an auto-rickshaw
alternative called TMC Alif. It was priced between 150-200,000 PRs at the time and had
a single cylinder, 200ccEngine. The concept was very good, but rigid competition by
existing foreign companies and lack of government support killed the project. Industry
operates under franchise and technical cooperation union with Japan, Europe, Korea, and
China. There are more than 800 vendors in the country with a total investment of over 8
billion PRs. They are engaged in the manufacturing of original components for the
assembly operation under the deletion program as well as producing reconditioned and
original components for sale in the local market.

They manufacture and supply the local car assemblers with auto parts such as pistons,
engine valves, gaskets, camshafts, shock-absorbers, struts, steering mechanism, cylinder
head, wheel hubs, brake drums, wheels, bumpers, instruments and instrument panels,
gears of all types, radiators, cylinder liners, blinkers, lights, doors and door locks as well
as auto air conditioners.

3.2 major companies:
The major automobiles companies of Pakistan are




Pak Suzuki
Indus Motor
Honda Atlas etc.

3.3 Sales of major companies:

Figure 5: major Automobiles in Pakistan www.slideshare.net/.../overview-of-pak-suzuki-motor

4. Financial statements and analysis:
4.1 Income Statement:
Table 1: Income Statement

PAK SUZUKI MOTOR COMPANY LIMITED
INCOME STATEMENT

For Year Ended
Descriptions:
Turnover - net
Cost of sales
Gross profit
Distribution costs
Administrative expenses
Other operating income
EBIT
Finance costs

2012
58,531,137
56,185,397
2,345,740
356,960
860,753
493,985
1,622,012
11,100
1,610,912
111,152
1,499,760
521,738

2011
52,718,563
50,849,153
1,869,410
263,651
735,935
620,390
1,490,214
17,845
1,472,369
107,072
1,365,297
570,876

2010
42,642,762
41,638,975
1,003,787
197,361
636,332
575,078
745,172
21,349
723,823
55,808
668,015
456,872

2009
26,234,061
25,664,762
569,299
214,550
495,200
619,572
479,121
12,564
466,557
38,714
427,843
172,624

2008
39,669,730
39,079,124
590,606
309,458
504,617
1,342,913
1,119,444
53,470
1,065,974
73,798
992,176
367,391

N.I
Unrealized gain/loss on derivative financial

978,022

794,421

211,143

255,219

624,785

instrument - net of tax
Net Income Final
Earnings per share

329,353
648,669
11.88

41,847
836,268
9.65

2,322
213,465
2.56

255,219
3.10

624,785
7.59

Other operating expenses
EBT
Taxation

Table 2: income statement horizontal analysis

PAK SUZUKI MOTOR COMPANY LIMITED
INCOME STATEMENT
For Year Ended
Descriptions:
2012
Turnover - net
0.475461
Cost of sales
0.437734
Gross profit
2.971751
Distribution costs
0.153501
Administrative expenses
0.705755
Other operating income
-0.63215
EBIT
0.448944
Finance costs
-0.79241
0.511211
Other operating expenses
0.506165
EBT
0.511587
Taxation
0.420116
N.I
0.565374
Net Income Final
0.038228
Earnings per share
0.565217

2011
0.328937
0.301185
2.16524
-0.14802
0.458403
-0.53803
0.331209
-0.66626
0.381243
0.450879
0.376063
0.553865
0.271511
0.338489
0.27141

2010
0.074945
0.065504
0.699588
-0.36224
0.26102
-0.57177
-0.33434
-0.60073
-0.32097
-0.24377
-0.32672
0.243558
-0.66205
-0.65834
-0.66271

2009
-0.33869
-0.34326
-0.03608
-0.30669
-0.01866
-0.53864
-0.572
-0.76503
-0.56232
-0.47541
-0.56878
-0.53014
-0.59151
-0.59151
-0.59157

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

EBIT
0.6
0.4
0.2
Axis Title

0
2012
-0.2

2011

2010

2009

2008

2010

2009

2008

-0.4
-0.6
-0.8

Figure 6: EBIT Horizontal Analysis

EBT
0.6
0.4
0.2
Axis Title

0
2012
-0.2
-0.4
-0.6
-0.8

Figure 7: EBT Horizontal Analysis

2011

N.I
0.8
0.6
0.4
0.2
Axis Title

0
2012
-0.2

2011

2010

2009

2008

-0.4
-0.6
-0.8

Figure 8: Net Income horizontal Analysis

Table 3: income statement Vertical Analysis

PAK SUZUKI MOTOR COMPANY LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED
Description
2012
Turnover – net
9023.267
Cost of sales
-8661.64
Gross profit
361.6236
Distribution costs
-55.0296
Administrative expenses
-132.695
Other operating income
76.15363
Finance costs
-1.7112
Other operating expenses
-17.1354
Profit before taxation
231.2057
Taxation
-80.4321
Profit after taxation
100

2011
6304.027
-6080.49
223.542
-31.5271
-88.0023
74.18555
-2.13389
-12.8036
163.2607
68.26472
100

2010
19976.47
-19506.2
470.2349
-92.4559
-298.097
269.4015
-10.0012
-26.1439
312.9389
214.0267
100

2009
10279.04
-10056
223.0629
-84.0651
-194.029
242.7609
-4.92283
-15.1689
167.6376
67.6376
100

2008
6349.341
6254.811
94.52948
-49.5303
-80.7665
214.94
8.558144
11.81174
158.8028
58.80279
100

Profit before taxation
350
300
250
200
Axis Title

150
100
50
0
2012

2011

2010

2009

2008

Figure 9: Profit Before Taxation

4.2 Balance Sheet
Table 4: Balance Sheet

PAK SUZUKI MOTOR COMPANY LIMITED
BALANCE SHEET
As on Year Ended
Descriptions
2012
Assets
Cash and bank balances
1417430
Stores, spares and loose tools
83095
Stock-in-trade
10562194
Trade debts
588042
Current portion of long-term

2011

2010

2009

2008

1139480
64467
12922396
322677

2917186
63916
8748031
240719

3545621
41749
6879729
376508

2,499,142
94468
7,732,518
286,697

installments sales receivables
Loans, advances and others
Interest accrued
Trade deposits and short-term

353077
195491
_

303951
216586
_

251254
134963
_

205680
226388
_

340,951
128,080
29,432

prepayments
Accrued markup-income
Other receivables
Sales tax and excise duty adjustable

38918
5664
169622
970176

83271
6145
163731
1023399

43466
8652
107779
389453

31738
7837
76685
255609

51,480
_
98,667
111,754

Income tax refundable-net
Total Current Assets

2676742
17060451

2362674
18608777

1407713
14313132

780089
12427633

434,423
11,807,612

for sale
Non-Current Assets
Long term investments
Long-term loans
Long-term deposits, prepayments and

5463

_

_

_

_

4545
1409

4190
1523

5413
1114

4449
3162

4,449
11,078

receivables
Long-term installments sales

63451

20487

28499

34609

24,683

receivables
Deferred taxation

162650
_
232055

185829
_
212029

169864
_
204890

153478
_
195698

146,077
_
186,287

3738867
312028
4050895
21348864

4200317
303777
4504094
23324900

4226582
505760
4732342
19250364

4684671
347732
5032403
17655734

4,578,436
383,808
4,962,244
16,956,143

_
2694625
1143746
_
1486406
84728

_
3211174
3065406
75000
1436833
81197

_
3080351
327031
50000
1067839
88753

1512
1853034
441781
80000
723554
86778

sales tax
Total Current Liabilities
Deferred taxation
Equity
Share Capital and Reserves
Authorized shares capital
Issued, subscribed and paid-up share

138475
5547980
_

138475
8008085
_

138475
4752449
_

138475
3325134
5000

143,286
2,657,462
146,000

1500000

1500000

1500000

1500000

1,500,000

capital
Reserves
Total Share and Reserves
Total Equity and Liabilities

822999
14977885
15800884
21348864

822999
14493816
15316815
23324900

822999
13674916
14497915
19250364

822999
13502601
14325600
17655734

823,000
13,329,681
14,152,681
16,956,143

Non-current assets classified as held

Fixed Assets
Property, Plant and equipment
Intangible assets
Total Non-Current Assets
Total Assets
Liabilities + Equity
Current Liabilities
Accrued markup
Trade and other payables
Advances
Short-term borrowing
Deposits against display of vehicles
Security deposits
Provisions for custom duties and

1,315,584
371,596
742,718
84278

Table 5: BALANCE SHEET VERTICAL ANALYSIS

PAK SUZUKI MOTOR COMPANY LIMITED
BALANCE SHEET
VERTICAL ANALYSIS
Descriptions
2012
Assets
Cash and bank balances
6.63937
Stores, spares and loose tools
0.389224
Stock-in-trade
49.47427
Trade debts
2.754442
Current portion of long-term installments

2011

2010

2009

2008

4.885251
0.276387
55.40172
1.383401

15.15393
0.332025
45.44346
1.250465

20.08198
0.236461
38.96598
2.132497

14.73886
0.557131
45.60305
1.690815

sales receivables
Loans, advances and others
Interest accrued
Trade deposits and short-term prepayments
Accrued markup-income
Other receivables
Sales tax and excise duty adjustable
Income tax refundable-net
Total current assets
Non-current assets classified as held for sale
Non-current assets
Long term investments
Long-term loans
Long-term deposits, prepayments and

1.653844
0.915697
_
0.182295
0.026531
0.794525
4.544392
12.5381
79.91269
0.025589
_
0.021289
0.0066

1.303118
0.928561
_
0.357005
0.026345
0.701958
4.387582
10.12941
79.78074
_
_
0.017964
0.00653

1.305191
0.701093
_
0.225793
0.044945
0.55988
2.023094
7.312657
74.35253
_
_
0.028119
0.005787

1.164947
1.282235
_
0.17976
0.044388
0.434335
1.447739
4.418332
70.38865
_
_
0.025199
0.017909

2.010782
0.75536
0.173577
0.303607

receivables
Long-term installments sales receivables
Deferred taxation
Total non-current assets
Fixed assets
Property, Plant and equipment
Intangible assets
Total fixed assets
Total assets
Liabilities +equity

0.29721
0.761867
_
1.086967
_
17.51319
1.461567
20.06172
100

0.087833
0.796698
_
0.909024
_
18.00787
1.302372
19.31024
100

0.148044
0.882394
_
1.064344
_
21.95585
2.627275
24.58313
100

0.196021
0.869281
_
1.10841
_
26.53343
1.969513
28.50294
100

0.14557
0.861499
_
1.09864
_
27.00164
2.263534
29.26517
100

0.581895
0.659077
2.562039
69.63619
_
_
0.026238
0.065333

Current liabilities
Accrued markup
Trade and other payables
Advances
Short-term borrowing
Deposits against display of vehicles
Security deposits
Provisions for custom duties and sales tax
Total non-current liabilities
Deferred taxation
Equity
Share capital and reserves
Authorized shares capital
Issued, subscribed and paid-up share capital
Reserves
Total Share and reserves
Total equity and liabilities

_
_
12.62187
5.357409

_
_
16.00152
1.69883
0.259735
5.547111
0.461046
0.719337
24.68758

_
0.008564
10.49537
2.502196
0.453111
4.098125
0.4915
0.784306
18.83317
0.028319

_
_
7.758746
2.191513

6.962459
0.396874
0.648629
25.98724

_
_
13.76715
13.1422
0.321545
6.160082
0.348113
0.593679
34.33277

3.855001
70.15776
74.01276
100

3.528414
62.13881
65.66723
100

4.275239
71.03718
75.31242
100

4.66137
76.47714
81.13851
100

4.853698
78.6127
83.46639
100

Total Current Assets as % of Total Assets
82
80
78
76
74
Axis Title 72
70
68
66
64

2012

2011

Figure 10: Total Current Assets as % of Total Assets

2010

2009

2008

4.38023
0.497035
0.845039
15.67256
0.861045

Total Non-Current Assets as % of total Assets
1.2
1
0.8
Axis Title 0.6
0.4
0.2
0

2012

2011

2010

2009

2008

Figure 11: Total Non-Current Assets as % of total Assets

Total Fixed Assets as % of Total Assets
35
30
25
20
Axis Title

15
10
5
0

2012

2011

Figure 12: Total Fixed Assets as % of Total Assets

2010

2009

2008

Total Non-Current Liabilities as % of Total Assets
40
35
30
25
Axis Title

20
15
10
5
0

2012

2011

2010

2009

2008

Figure 13: Total Non-Current Liabilities as % of Total Assets

Total Equity and Reserves as % of Total Assets
90
80
70
60
50
Axis Title

40
30
20
10
0

2012

2011

2010

2009

Figure 14: Total Equity and Reserves as % of Total Assets
Table 6: BALANCE SHEET HORIZONTAL ANALYSIS USING 2008 AS BASE YEAR

PAK SUZUKI MOTOR COMPANY LIMITED

2008

BALANCE SHEET
HORIZONTAL ANALYSIS USING 2008 AS BASE YEAR
Descriptions

2012

2011

2010

2009

2008

Cash and bank balances

-43.2833

-54.4052

16.7275

41.87353

0

Stores, spares and loose tools

-12.039

-31.7578

-32.3411

-55.8062

0

Stock-in-trade

36.5945

67.11757

13.13302

-11.0286

0

Trade debts
Current portion of long-term installments

105.1092

12.54983

-16.0371

31.3261

0

sales receivables

3.556523

-10.852

-26.3079

-39.6746

0

Loans, advances and others

52.63195

69.10212

5.373985

76.75515

0

Assets

Interest accrued
Trade deposits and short-term prepayments

0
-24.4017

61.75408

-15.5672

-38.3489

0

Other receivables

71.91361

65.94302

9.235104

-22.279

0

Sales tax and excise duty adjustable

768.1354

815.7605

248.4913

128.7247

0

Income tax refundable-net

516.1603

443.8649

224.042

79.56899

0

Total current assets

44.48689

57.59983

21.21953

5.251028

0

Long term investments

2.157788

-5.82153

21.66779

0

0

Long-term loans
Long-term deposits, prepayments and

-87.2811

-86.252

-89.944

-71.4569

0

receivables

157.0636

-16.9996

15.46003

40.21391

0

Long-term installments sales receivables

11.34539

27.21305

16.28388

5.066506

0

24.56854

13.81846

9.986204

5.051882

0

Property, Plant and equipment

-18.3375

-8.25869

-7.68503

2.320334

0

Intangible assets

-18.7021

-20.8518

31.77422

-9.39949

0

Total fixed assets

-18.3657

-9.23272

-4.63302

1.413856

0

Total assets

25.90637

37.56018

13.53032

4.125885

0

Trade and other payables

104.8235

144.0873

134.1432

40.85258

0

Advances

207.7929

724.9298

-11.9929

18.88745

0

Accrued markup-income

Non-current assets classified as held for sale
Non-current assets

Deferred taxation
Total non-current assets
Fixed assets

Liabilities + equity
Current liabilities
Accrued markup

Short-term borrowing

Deposits against display of vehicles

100.1306

93.45606

43.77449

-2.58025

0

Security deposits

0.533947

-3.65576

5.309808

2.966373

0

Provisions for custom duties and sales tax

-3.35762

-3.35762

-3.35762

-3.35762

0

Total non-current liabilities

108.7699

201.3433

78.83413

25.12442

0

-96.5753

0

Deferred taxation
Equity
Share capital and reserves
Authorized shares capital

0

Issued, subscribed and paid-up share capital

-0.00012

-0.00012

-0.00012

-0.00012

0

Reserves

12.36492

8.733405

2.589972

1.297255

0

Total equity

11.64587

8.225537

2.439354

1.221811

0

Total equity and liabilities

25.90637

37.56018

13.53032

4.125885

0

Changes in Total Current Assets from 2008
70
60
50
40
Axis Title

30
20
10
0
2012

2011

Figure 15: Changes in Total Current Assets from 2008

2010

2009

2008

Changes in Total Non-Current Assets from 2008
30
25
20
Axis Title

15
10
5
0
2012

2011

2010

2009

2008

Figure 16: Changes in Total Non-Current Assets from 2008

Changes in Total Fixed Assets from 2008
5
0
2012

2011

-5
Axis Title
-10
-15
-20
Figure 17: Changes in Total Fixed Assets from 2008

2010

2009

2008

Changes in Total Non-Current Liabilities from 2008
250

200

150
Axis Title
100

50

0
2012

2011

2010

2009

2008

Figure 18: Changes in Total Non-Current Liabilities from 2008

Changes in Total Equity from 2008
14
12
10
8
Axis Title

6
4
2
0
2012

2011

Figure 19 Changes in Total Equity from 2008

2010

2009

2008

4.3 Cash Flow Statement:
Table 7: cash flow statement

PAK SUZUKI MOTOR COMPANY LIMITED
CASH FLOW STATEMENT
FOR THE YEAR ENDED
DESCRIPTION
2012
2011
CASH FLOWS FROM

2010

2009

2008

OPERATING ACTIVITIES
1,568,44
Cash generated from operations

2

Net cash generated from / (used
in) operating activities

701,849

2,653,87

1,439,74

255,178
-

948,561

6

4
-

1,296,88

-

1,969,42

2,151,36

7

165,729

0

0

CASH FLOWS FROM
INVESTING ACTIVITIES
Net cash used in investing
activities
CASH FLOWS FROM

-259,751

FINANCING ACTIVITIES
Dividends paid
net cash used in financing
activities

-164,148

Net increase or decrease in cash/

-439,469

421,646

-841,184

-423,418

-41,350

-41,060

-81,757

-410,132

-

-

1,777,70

-

1,046,47

2,984,91

-

-

cash equivalents
cash/cash equivalents at the

277950
1,139,48

6
2,917,18

628,435
3,545,6

9
2,499,14

0
5,484,05

beginning of the year
cash/cash equivalents at the end of

0
1,417,43

6
1,139,48

21
2,917,1

2
3,545,62

2
2,499,14

the year

0

0

86

1

2

2010

2009

2008

Table 8: cash flow Statement vertical analysis

PAK SUZUKI MOTOR COMPANY LIMITED
CASH FLOW STATEMENT
FOR THE YEAR ENDED
2012
2011

DESCRIPTION
CASH FLOWS FROM
OPERATING ACTIVITIES
Cash generated from operations
Net cash generated from / (used

564.2893

-14.3543

-150.94
-

253.6005

48.23408

in) operating activities

252.5091

72.95284

4.67419

78.80385

-39.2294

-80.3823

14.18529

CASH FLOWS FROM
INVESTING ACTIVITIES
67.0946
Net cash used in investing activities

-93.4524

24.72113

1

CASH FLOWS FROM
FINANCING ACTIVITIES
6.53369
Dividends paid
net cash used in financing

2.326031

1

-7.81258

13.74018

activities
Net increase or decrease in cash/

-59.0567

cash equivalents
cash/cash equivalents at the

100

100

100
-

100

100

beginning of the year
cash/cash equivalents at the end of

409.9586

-164.098

564.199
-

238.8143

-183.726

the year

509.9586

-64.0983

464.199

338.8143

-83.7259

4.4 Liquidity, Debt paying, and Profitability Ratios:
4.4.1 Liquidity Ratios Analysis:
Table 9: Liquidity Ratios

Ratios:

2012

2011

2010

2009

2008

Day sales in receivables

1.057762

1.133601

0.922533

1.066935

0.907832

Account receivables turnover

232.7397

242.25

291.8309

208.1763

335.1616

Account receivables turnover in

2.078788

1.879815

1.578916

2.439709

0.907832

days
Day sales in inventory

68.61571

92.75817

76.68372

97.84237

72.22191

Inventory turnover

3.300482

2.939867

3.41642

2.388311

3.171099

Inventory turnover in days

110.5899

124.1553

106.837

152.8277

115.1021

Work in capital

11512471

10600692

9560683

9102499

9150150

Current ratio

3.075074

2.323749

3.011738

3.737483

4.443191

Acid test ratio

1.171283

0.71008

1.170996

1.668475

1.533453

Sales to work in capital

4.880394

4.796777

4.35523

2.819529

4.270872

DAY SALES IN RECEIVABLES
1.2
1
0.8
Axis Title

0.6
0.4
0.2
0
2012

Figure 20: Day Sales in Receivables

2011

2010

2009

2008

ACCOUNT RECEIVABLES TURNOVER
400
350
300
250
Axis Title

200
150
100
50
0
2012

2011

2010

2009

2008

Figure 21: Account Receivables Turnover

ACCOUNT RECEIVABLES TURNOVER IN DAYS
3
2.5
2
Axis Title

1.5
1
0.5
0
2012

2011

Figure 22: Account Receivables Turnover in Days

2010

2009

2008

DAY SALES IN INVENTORY
120
100
80
Axis Title

60
40
20
0
2012

2011

2010

2009

2008

Figure 23: Day Sales in Inventory

INVENTORY TURNOVER
4
3.5
3
2.5
Axis Title

2
1.5
1
0.5
0
2012

Figure 24: Inventory Turnover

2011

2010

2009

2008

INVENTORY TURN OVER IN DAYS
180
160
140
120
100
Axis Title

80
60
40
20
0
2012

2011

2010

2009

2008

Figure 25: Inventory Turn Over in Days

Work in Capital
14000000
12000000
10000000
8000000
Axis Title

6000000
4000000
2000000
0
2012

Figure 26: Work in Capital

2011

2010

2009

2008

CURRENT RATIO

Axis Title

5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
2012

2011

2010

2009

2008

2009

2008

Figure 27: Current Ratio

ACID TEST RATIO
1.8
1.6
1.4
1.2
1
Axis Title

0.8
0.6
0.4
0.2
0
2012

Figure 28: Acid Test Ratio

2011

2010

SALES TO WORK IN CAPITAL
6
5
4
Axis Title

3
2
1
0
2012

2011

2010

2009

2008

Figure 29: Sales to Work In Capital

4.4.2 Long-Term Debt Paying ability Ratios
Table 10: Long-Term Debt Paying ability Ratios

Ratios:
Times interest earned
Debt ratio %
Debt to equity ratio
Debt to tangible net worth

2012
146.1272
25.98724
0.061897
10.85772

2011
83.50877
34.33277
0.051866
15.42324

2010
34.9043
24.68758
0.014564
14.98066

2009
38.13443
18.83317
0.017816
6.996349

2008
20.93593
15.67256
0.044146
6.050798

TIMES INTREST EARNED
160
140
120
100
Axis Title

80
60
40
20
0
2012

2011

2010

2009

2008

2009

2008

Figure 30: Times Interest Earned

DEBT RATIO %
40
35
30
25
Axis Title

20
15
10
5
0
2012

Figure 31: Debt Ratio

2011

2010

DEBT TO TANGIBLE NET WORTH
18
16
14
12
10
Axis Title

8
6
4
2
0
2012

2011

2010

2009

2008

Figure 32: Debt to Tangible net Worth

4.4.3 Profitability Ratios:
Table 11: Profitability Ratios

Ratios:
Net profit margin
Total assets turn over
Return on assets
Due point return on assets
Operating income margin
Return on operating assets
Operating assets turn over
Sales to fixed assets
Return on investment

2012
0.017407
2.631775
0.045811
0.061522
0.028869
0.095074
2.131073
13.86987
0.094916

2011
0.015623
2.180037
0.034059
0.057838
0.029307
0.080081
1.973548
11.28954
0.089137

2010
0.005071
2.163023
0.010968
0.036302
0.017896
0.052062
2.028503
8.798809
0.046077

2009
0.009944
1.453622
0.014455
0.026137
0.018668
0.038553
1.400041
5.099902
0.029866

2008
0.015988
2.304718
0.036847
0.05621
0.028646
0.094807
1.96226
7.875293
0.070105

NET PROFIT MARGING
0.02
0.02
0.02
0.01
0.01
Axis Title

0.01
0.01
0.01
0
0
0
2012

2011

2010

2009

2008

Figure 33: Net Profit Marging

total assets turn over
3
2.5
2
Axis Title

1.5
1
0.5
0
2012

Figure 34: Total Assets Turnover

2011

2010

2009

2008

RETURN ON ASSETS

Axis Title

0.05
0.05
0.04
0.04
0.03
0.03
0.02
0.02
0.01
0.01
0
2012

2011

2010

2009

2008

Figure 35: Return on Assets

due point return on assets
0.07
0.06
0.05
0.04
Axis Title

0.03
0.02
0.01
0
2012

Figure 36: Duo Pont Return on Assets

2011

2010

2009

2008

operating income margin
0.04
0.03
0.03
0.02
Axis Title

0.02
0.01
0.01
0
2012

2011

2010

2009

2008

Figure 37: Operating Income Margin

return on operating assets
0.1
0.09
0.08
0.07
0.06
Axis Title

0.05
0.04
0.03
0.02
0.01
0
2012

Figure 38: Return on Operating Assets

2011

2010

2009

2008

sales to fixed assets
16
14
12
10
Axis Title

8
6
4
2
0
2012

2011

2010

2009

2008

Figure 39: Sales to Fixed Assets

return on investment
0.1
0.09
0.08
0.07
0.06
Axis Title

0.05
0.04
0.03
0.02
0.01
0
2012

Figure 40: Return on Investment

2011

2010

2009

2008

5. Comprehensive analysis:
We have reviewed the income statement, cash flow statement, and balance sheet
of Pak Suzuki Motor Company Limited for the five years 2012, 2011, 2010, 2009 and
2008 respectively. As our review, their Management is responsible for the preparation and
presentation of this financial information with following the accounting standards
reporting system. Pak Suzuki Company is a vehicle production and selling industry for
which it should have strong liquidity as well as high range of fixed assets like machinery,
land, equipment, franchises etc.

5.1 Horizontal and vertical analysis:
5.1.1 Horizontal analysis:

The horizontal analysis based on following 2008 as base year for all other years.
The total non-current assets are increased 44.48%, 57.6%, 21.22, 5.25% from the year
2008. the portions of non-current assets showed following trends as the cash balance and
bank balance decreased by the 43.28 % and 54.41% in the years 2012 and 2011 while in
other years increase of 16.78 and 41.87 showed that 2009 and 2010 was less liquid then
those of 2012 and 2011. The store and the spare and loose tools of the company had
started decrease from the 2008 may be due to the having more spare parts sales. The
spare and loose tools are 12.04%, 31.76%, 32.34% and 55.81% less than in 2008.
Receivables are increasing yearly then from the 2008 which means the company
made majors sales on credit to company but it is not good for the company that it bare
much risk of debtors. The long-term investment of the company during the years
remained unusual as it remained constant in the 2009 and then in the year 2010, it
showed high increase of 21.67% then it showed decrease of 5.82% than year 2008, in
year 2012 again investments had increase of 2.16 than of 2008. The fixed assets overall
decreased 18.37%, 9.23%, 4.63%, in which the property plants and equipment also the
intangible assets both decreased 18.7% but in year 2011 intangibles decrease 16%, more
than property plant and equipment other companies have trust in company for issuing

loans supplies on credit as the liabilities increased 108.77%, 201.34%, 78.83%, and
25.12%.
5.1.2 Vertical Analysis:

During the year 2012, 2011, 2010, 2009, 2008 the current assets were 79.91%,
79.78%, 74.35%, 70.38%, and 69.63% respectively of the total assets. The company fully
understand their need to have current assets more the fixed assets their major part of
investment are related to the current assets and the total current assets yearly increases as
the company increased investments. From year, 2012 the portions of the current assets are
increased approximately 45% percent, which shows a good investment by investor in
company. In addition, the company has opened some new franchises. In current assets the
major part was of stock in trade, which is good sign for that, the company is investing its
cash and utilizing it to earn more. During the year 2011, the stock in trade was 55 % of
total current assets but in 2012, 2010 and 2008 was 49 %, 45%, and 45% but in year 2009
the major stock was reduced to 38% and liquidity position of company was not as good
as it was in 2011.
During year 2012, 2011, 2010, 2009, 2008 the company had 6.6 %, 4.88%,
15.15%, 20.08%, and 14.73% cash and bank balances which shows in year 2011 and
2012 the company was investing its major part in stock in trade. The company had
minimum ratio of receivables as total part of current assets which shows company have
great collection powers of debt. The company during year 2012, 2011, 2010, 2009, and
2008 had 1.09%, 0.91%, 1.06%, 1.11%, and 1.10% of non-current assets as portion of
total assets. The major part of the non-current assets are long-term installments sales
receivables and then of long-term deposits, prepayments and long-term receivables. The
second major part of investments during were of the fixed assets which were counted to
be 20.06 %, 19.31%, 24.58%, 28.50%, and 29.27 respectively. During year, 2010
company sold its some property plant and equipment from 26.53% to 21.95% then in
2011,company sold more and had decreased to 18.08 % now the property plant and
equipment are 17.51% of fixed assets.

Total non-current Liabilities of years 2012, 2011, 2010, 2009, 2008 are 25.99%,
34.33%, 24.69%, 18.83%, and 15.67% respectively. If we see the liability portions the
major parts of the liability are trade payables which are 12.62%, 13.77%, 16.00%,
10.50%, and 7.76% percent while the years this shows that the company have less
liabilities and randomly payoff its liabilities. The sales are increasing yearly like for years
2012, 2011, 2010, 2009, 2008 sales were 9023.27%, 6304.03%, 19976.47%, 10279.04%,
and

6349.34% of the profit, which is showing high productivity. The sales of company

are very high then previous year.

5.2 Ratios Analysis:
5.2.1 Liquidity Ratios Analysis

The sales as on the receivables are 1.05, 1.13, 0.92, 1.07, 0.91 which shows that a
minimum part of the sales are made on receivables Since it is profitable to convert sales
into cash quickly. Lower values of Days Sales receivables are favorable however, it is
more meaningful to create monthly or weekly trend. Any significant increase in the trend
is unfavorable and indicates inefficiency in credit sales collection. The collection periods
of the receivables are as 232.73, 242.25, 291.83, 208.18, and 335.16 for the respective
years 2012, 2011, 2010, 2009, and 2008. The high value of collection period is favorable
and shows no indicate inefficiency in collecting outstanding sales. This Increase in
accounts receivable turnover overtime generally indicates improvement in the process of
cash collection on credit sales but very high values of this ratio may not be favorable, if
achieved by extremely strict credit terms since such policies may repel potential buyers.
After realizing this company had making effort to lessen them as it shows a 100
number decrease in collection period in the 2012 than in the year 2008. The day sales in
inventory show figures of 68.62, 92.75, 76.68, 97.84, and 72.22, which mostly means that
lower values of are generally favorable and higher values, are unfavorable for Business
which sell perishable goods such as fruits and vegetables must have very low values of
days' sales in inventory. Whereas companies selling non-perishable goods such as cars
have high values of days of inventory like the Pak Suzuki shows a higher values of the
inventory.

The current ratio of company during years were 3.08, 2.32, 3.01, 3.74, and 4.44
and the quick ratio are as 1.17, 0.71, 1.17, 1.67, 1.53, these figures shows that the most
liquid assets of a PSMC are equal to its total debts and the PSMC will just manage to pay
all its debts by using its quick assets. As showing the value in 2008 quick ratio which is
quite high, say 4.44, is not favorable to a company this means that the company has idle
current assets and is inefficient. The current ratios of the company means the company
will be able to pay all its current liabilities in immediate short term and creditors usually
prefer high cash ratio. The company has its major part of investments working and
increases yearly than 2008.
5.2.2 Long-Term Debt Paying ability Ratios Analysis:

Times interest earned during the years 2012, 2011, 2010, 2009 and 2008 was
146.13, 83.51, 34.90, 38.13, 20.94, which shows greater ability of a business to repay its
interest and debt. With the year, the ability to repay its loans increases which attract
lending companies. Furthermore increase in values of debt ratio in future will mean
higher risk in operation since the business would find it difficult to obtain loans for new
projects claim debt ratio 25.98, 34.33, 24.68, 18.83, and 15.67 respectively mean that this
much assets are claimed but liabilities. Debts to equity ratio are 0.06, 0.05, 0.01, 0.02,
and 0.04 means a favorable efficient ratio indicating less risk. Debt to tangible net worth
shows higher debt included in the capital employed means higher risk of insolvency
10.85, 15.42, 14.98, 6.99, 6.05 as for years 2012, 2011, 2010, 2009, and 2008.
5.2.3 Profitability Ratios analysis:

Net profit margin of 0.02, 0.02, 0.01, 0.01, and 0.02 shows a constant 20% return
on sales however company is not earning efficient but it is not going in loss it is
maintaining its productivity. Return on assets for the respective years are 0.045811,
0.034059, 0.010968, 0.014455, and 0.036847 and Return on operating assets 0.095074,
0.080081, 0.052062, 0.038553, 0.094807 these lower turnover ratio tells that the
company is not using its assets optimally. Due point return on assets 0.062, 0.058, 0.036,
0.026, 0.056 provides that company's strength lies and where there is a room for
improvement. Operating income margin 0.03, 0.03, 0.02, 0.02, 0.03 a higher value of
operating margin ratio is favorable and indicates that more proportion of revenue is going

to operating income. An increase in operating margin ratio overtime means that the
profitability is improving. Lower value of return on investments indicates lower
profitability but company has fluctuating returns like 0.094916, 0.089137, 0.046077,
0.029866, and 0.070105.

Recommendations:

The company should work on its productivity capacity; it should try to generate
more from its operating assets.
The operating income will make a significant change in their financial positions.
The company is decreasing its investments and it should try to invest its idle cash in
investing activities.
Company should maintain its localization in order to reduce the cost of products
and keep the prices competitive besides saving of foreign exchange as per great
fluctuations in Currency of Pakistan.
Moreover, company has good financial positions and great impact on lender. It
should try to maintain debt ratio figure to maintain the lenders trust on it is as the debt
ratio is increasing gradually.

Table of figures:
Figure 1: Board of Directors................................................................................................6
Figure 2: Audit committee...................................................................................................7
Figure 3: Human resource department................................................................................7
Figure 4: LEGAL ADVISORS............................................................................................7
Figure 5: Major Automobiles in Pakistan .........................................................................14
Figure 6: EBIT Horizontal Analysis..................................................................................16
Figure 7: EBT Horizontal Analysis...................................................................................17
Figure 8: Net Income horizontal Analysis.........................................................................17
Figure 9: Profit Before Taxation........................................................................................18
Figure 10: Total Current Assets as % of Total Assets........................................................23
Figure 11: Total Non-Current Assets as % of total Assets.................................................23
Figure 12: Total Fixed Assets as % of Total Assets...........................................................24
Figure 13: Total Non-Current Liabilities as % of Total Assets..........................................24
Figure 14: Total Equity and Reserves as % of Total Assets...............................................25
Figure 15: Changes in Total Current Assets from 2008.....................................................27
Figure 16: Changes in Total Non-Current Assets from 2008............................................27
Figure 17: Changes in Total Fixed Assets from 2008........................................................28
Figure 18: Changes in Total Non-Current Liabilities from 2008......................................28
Figure 19 Changes in Total Equity from 2008..................................................................29
Figure 20: Day Sales in Receivables.................................................................................32
Figure 21: Account Receivables Turnover........................................................................32
Figure 22: Account Receivables Turnover in Days...........................................................33
Figure 23: Day Sales in Inventory.....................................................................................33
Figure 24: Inventory Turnover...........................................................................................34
Figure 25: Inventory Turn Over in Days...........................................................................34
Figure 26: Work in Capital................................................................................................35
Figure 27: Current Ratio....................................................................................................35
Figure 28: Acid Test Ratio.................................................................................................36
Figure 29: Sales to Work In Capital...................................................................................36

Figure 30: Times Interest Earned.......................................................................................37
Figure 31: Debt Ratio........................................................................................................37
Figure 32: Debt to Tangible net Worth..............................................................................38
Figure 33: Net Profit Marging...........................................................................................39
Figure 34: Total Assets Turnover.......................................................................................39
Figure 35: Return on Assets...............................................................................................40
Figure 36: Duo Pont Return on Assets..............................................................................40
Figure 37: Operating Income Margin................................................................................41
Figure 38: Return on Operating Assets..............................................................................41
Figure 39: Sales to Fixed Assets........................................................................................42
Figure 40: Return on Investment.......................................................................................42

Table of Tables
Table 1: Income Statement................................................................................................15
Table 2: income statement horizontal analysis..................................................................15
Table 3: income statement Vertical Analysis.....................................................................18
Table 4: Balance Sheet.......................................................................................................19
Table 5: Balance Sheet Vertical Analysis...........................................................................21
Table 6: Balance Sheet Horizontal Analysis Using 2008 As Base Year............................25
Table 7: Cash flow Statement............................................................................................29
Table 8: Cash flow Statement vertical analysis.................................................................30
Table 9: Liquidity Ratios...................................................................................................31
Table 10: Long-Term Debt Paying ability Ratios..............................................................36
Table 11: Profitability Ratios.............................................................................................38

References:
pak Suzuki Annual Report. (2012).
pak Suzuki Annual Report. (2011).
pak Suzuki Annual Report. (2010)
pak Suzuki Annual Report. (2009)
pak Suzuki Annual Report. (2008)
www.paksuzuki.com
muhammad Emmad, N. B. (2011, dec 20). where do we see pak suzuki in the future.