a.

a.Using appropriate ratios, conduct profitability analysis to assess performance of the firm in this regard. Give implications and the limitations of each ratio separately, and then the overall inference that could be drawn from these ratios

b. Comparing a firms financial indicators with its own past performance or with a competitors performance or even with the industry average is prone to many glitches due to inflationary effects, firm size, and many other factors. Suggest measures to control these factors to help make the analysis meaningful and reliable

c. Last year, the top management of the firm was not satisfied with the short-term as well as long-term indicators of liquidity/ solvency and the task for improvement was entrusted to a newly employed team. Since a year has elapsed, performance appraisal of the team is due. You are required to conduct your analysis and give your recommendations in respect of the following. (your recommendations must be accompanied by proper justifications). a) Whether current years indicators of liquidity/solvency show any considerable improvement to recommend additional reward for the team? b) Should the company approach a bank for financing, to pursue its expansion program?

Actuarial gaivoss) on defined benefit plans Deferred to on actuarial gain/loss) on defined benefit plans 35,235 110.218) (1483061 43,020 25,017 (105,326) Total comprehensive income for the year 518,084 49.510 Page 4 of 5 STATEMENT OF CASH FLOWS For the year ended December 31, 2020 December 31, December 31 2020 2019 - Rupees in '000 - CASH FLOWS FROM OPERATING ACTIVITIES 915,636 (61,762) (381) 1275,668) Cash generated from operations Finance costs paid Interest on lease ability paid Income tax paid Retirement benefits paid Long-term loans.net Net cash generated from/used in operating activities CASH FLOWS FROM INVESTING ACTIVITIES 503,710 59,387) (442) (388,471) (107 298) 830 31.058) (181,199) 1.623 398,249 (392,009 Pred capital expenditure Deferred by Sale proceeds from disposal of operating ed assets Interest received Net cash used in investing activities (485,373) 36,000 54,665 5 (394,703) 41.040 18 (350.951) CASH FLOWS FROM FINANCING ACTIVITIES 288,170) Dividends paid Proceeds from long-term financing Repayment of lease abilities Net cash generated from/used in francing activities NET INCREASE/ (DECREASE IN CASH AND CASH EQUIVALENTS () CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 177,017) 328,428 (17,781) 233,630 (1.243) 289,413 237,176 1671,422) (416,774 254848 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 1179,598) (416,774 --End of Paper- Page 5 of 5/5 .. Page 3 of 5 STATEMENT OF PROFIT OR LOSS For the year ended December 31, 2020 December 31, December 31 2020 2019 Rupees in '000 - NET SALES 14,107,802 14.500.678 Cost of sales (10,303,005) (10.775.718 GROSS PROFIT 3,804,797 3,724,960 Distribution and marketing costs Administrative expenses Other expenses Other income (1,978,071) (573,212 (365,032) 49,675 12,866,640) 12,328,707) (519,540 (350,404) 92442 13.106.209 618.751 OPERATING PROFIT 938,157 Finance costs 158,305 12,372 PROFIT BEFORE TAXATION 879,852 546,379 (391,543) Taxation PROFIT AFTER TAXATION EARNINGS PER SHARE - basic and diluted (Rupees) (386,785) 493,067 154.836 51.12 16.05 STATEMENT OF OTHER COMPREHENSIVE INCOME For the year ended December 31, 2020 December 31, December 31 2020 2019 - Rupees in '000 - Prott after taxation 493,067 154,838 Other comprehensive income items that will not be reclassified to profit or loss in subsequent periods: Actuarial gairfoss) an defined benefit plers Deferred tax on actuarial galloss) on defined benefit plans 35,235 (10,218) (148,345 43,020 25,017 (106,326) Total comprehensive income for the year 518,084 49.510 Page 4 of 5 STATEMENT OF CASH FLOWS For the year ended December 31, 2020 December 31, December 31, 2020 2019 Page 2 of 5 STATEMENT OF FINANCIAL POSITION As at December 31, 2020 December 31 December 31 2019 -Rupees in 000 '--- ASSETS NON-CURRENT ASSETS Fixed assets Property, plant and equipment 1,741,560 1.850,113 Right-of- 21,790 2828 Intangibles 3.504 5.6.46 1,766,977 1,658387 Long-term loans 3.119 4.742 Long-term depot 13.643 13.643 Deferred taxation.net 123 773 108,183 1,907,512 1786.155 CURRENT ASSETS Stores and 48,273 62,105 Stockade.net 3,210.363 2.544,186 Trade debts-net 5:38.646 091 325 Loans and advances 88,694 119.103 Trade deposits and storm prepayments 427 861 330,674 Other recolvables et 966,953 583918 Taxation.net 1.411,809 1.546.734 Cash and bank balances 53.235 20 6,746.834 5.10.84 TOTAL ASSETS 8,653,346 7.698.00 EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Share capital 96.448 96 448 Reserve 4,465,650 3993 004 456208 40B NON-CURRENT LIABILITIES Long-term financing 163,622 Deferred obis 42.274 Le abilities 1340 207236 1.592 72.42 3.054 420 CURRENT LIABILITIES Contractos Trade and other payable Current maturity of long-term francing Current maturity offered as Curtert maturity of selbites Accrued mark-up Undaimed dividend Short-term borrowings CONTINGENCIES AND COMMITMENTS TOTAL EQUITY AND LIABILITIES 57,921 3,396,136 143.750 16.340 22.140 5.599 9.279 232833 3,884,012 1,407 12 RR 447563 37604096 8.661346 76 Page 3 of 5 STATEMENT OF PROFIT OR LOSS For the year ended December 31, 2020 NET SALES Cost of sales GROSS PROFIT December 31, December 31, 2020 2019 Rupees in '000.- 14,107,302 14,500,678 (10,303,005) 10.775.718 3,804,797 3.724,900 (1,978,071) 2.328,707) (573,212 1519,540) (365,032) 350.404 49,675 92442 12,868,640) 108,2091 Distribution and marketing costs Administrative expenses Other expenses Other income Actuarial gaivoss) on defined benefit plans Deferred to on actuarial gain/loss) on defined benefit plans 35,235 110.218) (1483061 43,020 25,017 (105,326) Total comprehensive income for the year 518,084 49.510 Page 4 of 5 STATEMENT OF CASH FLOWS For the year ended December 31, 2020 December 31, December 31 2020 2019 - Rupees in '000 - CASH FLOWS FROM OPERATING ACTIVITIES 915,636 (61,762) (381) 1275,668) Cash generated from operations Finance costs paid Interest on lease ability paid Income tax paid Retirement benefits paid Long-term loans.net Net cash generated from/used in operating activities CASH FLOWS FROM INVESTING ACTIVITIES 503,710 59,387) (442) (388,471) (107 298) 830 31.058) (181,199) 1.623 398,249 (392,009 Pred capital expenditure Deferred by Sale proceeds from disposal of operating ed assets Interest received Net cash used in investing activities (485,373) 36,000 54,665 5 (394,703) 41.040 18 (350.951) CASH FLOWS FROM FINANCING ACTIVITIES 288,170) Dividends paid Proceeds from long-term financing Repayment of lease abilities Net cash generated from/used in francing activities NET INCREASE/ (DECREASE IN CASH AND CASH EQUIVALENTS () CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 177,017) 328,428 (17,781) 233,630 (1.243) 289,413 237,176 1671,422) (416,774 254848 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 1179,598) (416,774 --End of Paper- Page 5 of 5/5 .. Page 3 of 5 STATEMENT OF PROFIT OR LOSS For the year ended December 31, 2020 December 31, December 31 2020 2019 Rupees in '000 - NET SALES 14,107,802 14.500.678 Cost of sales (10,303,005) (10.775.718 GROSS PROFIT 3,804,797 3,724,960 Distribution and marketing costs Administrative expenses Other expenses Other income (1,978,071) (573,212 (365,032) 49,675 12,866,640) 12,328,707) (519,540 (350,404) 92442 13.106.209 618.751 OPERATING PROFIT 938,157 Finance costs 158,305 12,372 PROFIT BEFORE TAXATION 879,852 546,379 (391,543) Taxation PROFIT AFTER TAXATION EARNINGS PER SHARE - basic and diluted (Rupees) (386,785) 493,067 154.836 51.12 16.05 STATEMENT OF OTHER COMPREHENSIVE INCOME For the year ended December 31, 2020 December 31, December 31 2020 2019 - Rupees in '000 - Prott after taxation 493,067 154,838 Other comprehensive income items that will not be reclassified to profit or loss in subsequent periods: Actuarial gairfoss) an defined benefit plers Deferred tax on actuarial galloss) on defined benefit plans 35,235 (10,218) (148,345 43,020 25,017 (106,326) Total comprehensive income for the year 518,084 49.510 Page 4 of 5 STATEMENT OF CASH FLOWS For the year ended December 31, 2020 December 31, December 31, 2020 2019 Page 2 of 5 STATEMENT OF FINANCIAL POSITION As at December 31, 2020 December 31 December 31 2019 -Rupees in 000 '--- ASSETS NON-CURRENT ASSETS Fixed assets Property, plant and equipment 1,741,560 1.850,113 Right-of- 21,790 2828 Intangibles 3.504 5.6.46 1,766,977 1,658387 Long-term loans 3.119 4.742 Long-term depot 13.643 13.643 Deferred taxation.net 123 773 108,183 1,907,512 1786.155 CURRENT ASSETS Stores and 48,273 62,105 Stockade.net 3,210.363 2.544,186 Trade debts-net 5:38.646 091 325 Loans and advances 88,694 119.103 Trade deposits and storm prepayments 427 861 330,674 Other recolvables et 966,953 583918 Taxation.net 1.411,809 1.546.734 Cash and bank balances 53.235 20 6,746.834 5.10.84 TOTAL ASSETS 8,653,346 7.698.00 EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Share capital 96.448 96 448 Reserve 4,465,650 3993 004 456208 40B NON-CURRENT LIABILITIES Long-term financing 163,622 Deferred obis 42.274 Le abilities 1340 207236 1.592 72.42 3.054 420 CURRENT LIABILITIES Contractos Trade and other payable Current maturity of long-term francing Current maturity offered as Curtert maturity of selbites Accrued mark-up Undaimed dividend Short-term borrowings CONTINGENCIES AND COMMITMENTS TOTAL EQUITY AND LIABILITIES 57,921 3,396,136 143.750 16.340 22.140 5.599 9.279 232833 3,884,012 1,407 12 RR 447563 37604096 8.661346 76 Page 3 of 5 STATEMENT OF PROFIT OR LOSS For the year ended December 31, 2020 NET SALES Cost of sales GROSS PROFIT December 31, December 31, 2020 2019 Rupees in '000.- 14,107,302 14,500,678 (10,303,005) 10.775.718 3,804,797 3.724,900 (1,978,071) 2.328,707) (573,212 1519,540) (365,032) 350.404 49,675 92442 12,868,640) 108,2091 Distribution and marketing costs Administrative expenses Other expenses Other income