Submitted to:

Ms Qurat Ul Ain

Submitted by:

Ali Raza

Baleegh Ud Din

Ratio Analysis
of JDCW
Profile of Company

JDW Group is the progressive industrial house of the country. Sugar manufacturing is the core business
of the Group and is also renowned for support of innovative farming techniques which augment the core
business. The Group takes immense pride in social responsibility activities (social mobilization, women
enterprise development, support to technical and primary education, micro credit for the poor,
infrastructure development, livestock development etc.) all aimed at ameliorating social and economic
conditions of the poor people in rural areas.

JDW Sugar Mills Ltd.

The Sugar Division comprises of three sugar mills Units, JDW Unit-I , JDW Unit-II and JDW Unit-III in
the districts of Rahim Yar Khan, Punjab and Ghotki, Sindh. It is one of the largest group in the sugar
sector and contributes approximately 15-17% of countrys sugar production.

The Company has been successful in completing and commissioning its two high-pressure Co-Generation
plants at Unit-II (Sadiqabad) and Unit-III (Ghoki). The first 26.6 MW plant at Unit-II achieved
commercial operations on 12 June 2014 after clearing all testing, certification and trial run requirements.
The second 26.8 MW project at Unit-III achieved commercial operations on 03 October 2014 after
similarly completing all pre-commissioning formalities.

JDW is also managing Sugarcane Corporate Farms over the area of 24,000 Acres in the Provinces of
Punjab & Sindh. By using knowledge, experience together with modern tools and machinery and
distinctive agronomic strategies, JDW has been able to built highly efficient and eco-friendly farms with
higher yields. Companys unique farming techniques have also led to the capacity building of existing
farmers thereby resulting in improved and reliable cane supply to JDW. Corporate Information

Board of Directors
Mukhdoom Syed Ahmed Mahmud
Director / Chairman
Mr. Raheal Masud
Director / Chief Executive
Mr. Jahangir Khan Tareen
Director
Mrs. Samira Mahmud
Mr. Ijaz Ahmed
Mr. Asim Nisar Bajwa
Mr. Qasim Hussain Safdar

Chief Operating Officer

Rana Nasim Ahmed
Group Director (Finance), CFO & Company Secretary
Mr. Muhammad Rafique

Audit Committee

Mr. Asim Nisar Bajwa

Chairman / Member

Mr. Raheel Masud

Member

Mr. Qasim Hussain Safdar

Member

Web Presence
www.jdw-group.com

Company Registration No's

Reg. / Inc No. 0021835
NTN # 0711003-7

HR & R Committee

Mr. Ejaz Ahmed

Chairman / Member

Mr. Raheal Masud

Member

Mr. Qasim Hussain Safdar

Member

Auditors

KPMG Taseer Hadi & Co.

Chartered Accountants

Registrar

Corplink (Pvt.) Ltd.

Wings Arcade, I-K Commercial,
Model Town, Lahore.
Legal Advisor

Cornelius, Lane & Mufti

Bankers
MCB Bank Limited
Faysal Bank Limited
the Bank of Punjab
Allied Bank Limited
NIB Bank Limited
United Bank Limited
BankIslami (Pakistan) Limited
Habib Bank Limited
Askari Bank Limited
Standard Chartered Bank (Pakistan) Limited
Al-Meezan Bank Limited
Soneri Bank Limited
Habib Metropolitan Bank Limited
National Bank of Pakistan

Listing of Company in Stock Exchanges

Symbol of Company is "JDWS"

Pakistan Stock Exchange : www.psx.com.pk

Membership of Industry Associations

Pakistan Sugar Mills Association (PSMA)
Lahore Chamber of Commerce &
Industry (LCCI)
Pakistan Business Council (PBC)

Vision

Before bringing life to a vision we have to see it first. And for that we need people who specialize in
seeing the impossible. Here at JDW, we are proud of the visionary men we have who take up the
responsibility of creating opportunities for the future, not only for our company but for the whole
community we operate in.

We believe, life is about the betterment of the human condition; its about social awareness, and random
acts of kindness that weave the soul of humanity. Together, we all participate in weaving the social fabric;
we should all therefore be patching the fabric when it develops holes. The change has begun, here at
JDW, as we have started to unpack the challenges that encounter us, realizing that we each have a role
that requires us to change and become more responsible for shaping our community and creating magic
under JDWs vision. A vision in which everyone is benefited, be it our shareholders, the farmers or you.
Mission

To be the market leader and a world-class organization by meeting and proactively anticipating
customer needs.

To maximize the wealth of stakeholders by optimizing the long term returns and growth of the
business.

To be amongst the most efficient and lowest cost producers in the industry.

To ensure a safe, harmonious and challenging working environment for the employees.

Strategy

To grow our base business in sugar and build those related activities where there is opportunity to
smooth the impact of sugar price cycles.

To produce sugar which is of highest international standards.

To make investment in sugarcane crop to ensure regular supply of cane and profitability of
growers.

To offer equal and fair growth opportunities to all employees.

To undertake and support community development and welfare projects in order to fulfil social
commitments.
 RATIO ANALYSIS

Current ratio
=11,364,654,895/14,008,745,620

=0.81times

This ratio is not in the favor of the business because the assets are not enough to pay off the liabilities of
the organization.

Quick ratio

=11,364,654,895-1,126,498,627/14,008,745,620

=0.73times

This ratio is also not in the favor of the company it shows that if the debts are to be paid by the quick assets then
quick assets are not enough to pay off the liabilities.

Gross profit ratio

=Gross profit/net sales*100

= 6,454,482,154/ 40,122,718,008

=16%

GP ration is more than 2015 so this ratio shows that the selling price of the goods has gone up
without corresponding increase in the cost of goods sold.

Operating profit ratio

The operating profit margin ratio indicates how much profit a company makes after paying
for variable costs of production such as wages, raw materials, etc.
 =Operating profit/net sales*100

=3,979,121,722/40,122,718,008
=9.9%

On every income of 100 rupees only 9.9 rupees left after paying all the operating expenses.
Operating margin ratio9. 9% demonstrates 9.9% revenues are left over after all the variable or
operating costs have been paid.

Net profit ratio

= Net profit after tax/net sales*100

=2,033,931,988/40,122,718,008

=5 %

This ratio is in the favor of the company because last years this ratio was 4.3% which is now increases in
2016 which is a positive sign towards an organization.

Debt-equity ratio

=Total long term debts/shareholder fund

= 9,495,166,901/ 8,320,756,094

=1,.14

Companies with higher debt to equity ratio are considered more risky in investor point of view.
Lower these ratio shows that company is stable.

Capital gearing ratio

=8,320,756,094/ 125,798,019

=66.14
The company having high geared value would be considered more risky with respect to investors
because such a company has to pay more interest on loans and dividend on preferred stock and,
therefore, may have to face problems in maintaining a good level of dividend for common
stockholders during the period of low profits.

Proprietary ratio/equity ratio

= Stockholder funds/total assets*100

=8,320,756,094/ 34,146,052,998

=0.24

The proprietary ratio shows the contribution of stockholders in total capital of the
company. A high proprietary ratio, therefore, indicates a strong financial position of the
company and greater security for creditors. A low ratio indicates that the company is
already heavily depending on debts for its operations.

Earnings per share

Earnings per share is a calculation that shows how profitable a company is on a shareholder basis.

=Net profit after tax and interest/number of equity share

=34.03

Fixed asset turnover

The fixed asset turnover ratio is an efficiency ratio that measures a companys return on
their investment in property, plant, and equipment by comparing net sales with fixed
assets.

=net sales/fixed assets

=40,122,718,008/22,781,398,103

=1.76times

This ratio is very low so it depicts that assets are not used efficiently and maximum
production level is not attained.
 Debtor turnover ratio
The accounts receivable turnover ratio measures how many times a business can collect its
average accounts receivable during the year.

=credit sales/account receivable

= 40,122,718,008/ 1,126,498,627

=36.4times

This ratio shows that company is efficient to collects it debts as higher ratio show the
companys strength to collects its debts and lower ration shows that company is not enough
efficient in collecting its receivable.

Dividend Yield Ratio

The dividend yield is a financial ratio that measures the amount of cash dividends distributed to
common shareholders relative to the market value per share

= Dividend per share/market value per share