Assignment:

Financial Administration

Annual Report

Submitted To:

Faiza Rahman

Submitted By:

Umaira Rafi

Roll # 16

(BSPA 6th semester)

 Gul Ahmad Textile industry
Company Overview

The tale of materials in the subcontinent is the narrative of Gul Ahmed. The gathering started
exchanging materials in the mid-1900s. The gathering entered in the field of assembling with the
foundation of the present notable name of Gul Ahmed Textile Mills Ltd in the year 1953. Since
its posting on the Karachi Stock Exchange in 1970, the organization has been gaining fast ground
and getting a charge out of a main situation in the realm of materials.

With an introduced limit of in excess of 51,840 axles, 300 cutting edge weaving machines and
most present-day yarn coloring, preparing and sewing units, Gul Ahmed is a composite unit –
making everything from cotton yarn to completed items. Gul Ahmed has its own hostage power
plant including gas motors, gas and steam turbines, and reinforcement diesel motors. Putting
stock in assuming its job in securing the earth, Gul Ahmed has likewise set up a waste water
treatment plant to treat 100% of its refluent, carrying it to NEQS levels.

Gul Ahmed is assuming an indispensable job as a material monster, yet has its solid nearness in
the retail business too. The opening of its leader store – Ideas by Gul Ahmed–denoted the
gathering's entrance into the retail business. Beginning from Karachi, Gul Ahmed now has a
broad chain of in excess of 40 retail locations the nation over, offering a differing scope of items
from home accomplices to form apparel. Over a long time since its initiation, the name Gul
Ahmed is still all inclusive equal ith quality, development and dependability.
Liquidity ratio
Current ratio
Currents assets / Current liabilities
28836418 / 23643992
1.2196
Industry ratio = 2.01
Industry ratio is stronger than liquidity ratio
Quick ratio
Current Assets – Inventories / current liabilities
28836418 – 16143933 / 23643992
28836418 – 0.68279219
28837
Industry ratio = 1.25
Quick ratio is stronger than industry ratio
Debt ratio
Total debt / Shareholders equal
30642718 / 3564955
8.596
Industry ratio = 0.82
Debt ratio is stronger than industry ratio
Debt to total assets
Total debt / total assets
30642718 / 43263445
0.709
Industry ratio = 0.47
Debt to total assets is stronger than industry ratio
Total capitalization
Total debt / total capitalization
30642718 / 19532596
1,569
Industry ratio = 0.62
Total capitalization is stronger than industry ratio
Interest coverage ratio

Ebit / interest charges

33154669 / 987076
33.589
Industry ratio = 4.66
interest coverage ratio is stronger than industry ratio
Receivable turnover
Net credit sale / receivable
45625872 / 5398565
8.452
Average collection period
Days in the year / receivable turnover
365 / 8.45148146
43.188
Industry ratio = 69.2
Industry ratio is stronger than average collection period
Payable turnover
Annual credit purchases / accounts payable
36049884 / 7008948
5.144
Payable turnover in the days
Days in the year / payable turnover
365 / 5.14340868
70.965
Industry ratio =48.5
Payable turnover in the days is stronger than industry ratio
Inventory turnover
Cost of goods sold / inventory
36049884 / 16143933
2.234
Industry ratio = 3.69
Industry ratio is stronger than inventory turnover
Total assets turnover ratio
Net sales / total assets
45625872 / 43263445
1.055
Industry ratio = 1.14
Industry ratio is stronger is than total assets turnover
Gross profit margin
Gross profit / net sales
9575988 / 45625872
0.209
Industry ratio = 27.6 industry ratio is stronger than gross profit margin
Return on investment
Net profit after taxes total assets / total assets
2074973 / 43263445
0.048
Industry ratio = 10.8
Industry ratio is stronger than return on investment
Net profit margin
Net profit after taxes / net sales
2074973 / 45625872
0.046
Industry ratio = 7.6
Industry ratio is stronger than net profit margin
Return on equity
Net profit after taxes / shareholder equity
2074973 / 12620727
0.165
Industry ratio = 20.4
Industry ratio is stronger than return on equity