FINAL PROJECT PRESENTATION

Of
Introduction to financial
accounting
Financial Statement Analysis
 Fauji Cement Company Limited was sponsored and
incorporated as a public limited company on 23
November 1992.

 It obtained the Certificate of Commencement of

Business on 22 May 1993.

 The project has been completely commissioned and

Sponsored by Fauji Foundation.
 Chairman:
Lt. Gen Khalid Nawaz Khan.
 Directors:
Qaiser Javed
Dr. Nadeem Inayat
 Mission and vision

“To stand above the competition and provide customers

with premium quality fertilizer products in a safe,
reliable, efficient and environmentally sound manner,
deliver exceptional services and unparalleled customer
support, produce predictable earnings for our
shareholders, and provide a dynamic and challenging
environment for employees.”
 Ordinary Portland cement

 Low alkali Portland cement

 Sulphate resistance cement

 IMS Certificates
Quality Management System
Environmental Management System
 FCCL is a proud winner of:
7th Environmental Excellence Awards 2010
5th National CSR Awards 2010
8th Environmental Excellence Awards 2011
6th National CSR Awards 2011
9th Environmental Excellence Awards 2012
6th CSR International Summit 2014
Annual Environment Excellence Awards 2014.
 Detailed analysis of year 2014 and 2015
 The difference in net income is RS 1131081 which
indicates increase in net income
 The percentage by which the income increased is
25.9%
 The total sale increased by 6.33%
 Better position of company in 2015
 Cost of sales from 65.2% to 62.3%
 Distribution cost from 0.71 to 0.75%
 Net income from 24.8 to 29.4%.
 Distribution cost is 0.8% which is lowest percentage of
total operating costs
 Administrative expenses are less in 2014 and it is 1.45% in
2015
Overall income increased from 24.8 to
29.8%
 FAUJI CEMENT COMPANY

Horizontal analysis of balance sheet

2015 2014 Amount %

ASSETS

Current assets:

Stores,spares and tools 1965411 2016336 (50925) 2.52

Stock in trade 888536 1469107 (580571) 39.5

Trade debts 566141 580214 (14073) 2.42

Advances 11190 50414 (39224) 77.8

Short term investment 375563 268545 107018 39.8

Interest accrued 3902 173 3729 21.5

Other receivables 6039 20585 (14546) 70.6

Cash and bank balance 2296603 842983 1453620 72.4

Financial assets 300211 -

NON-current

Property,plant and equipment 23880553 23881426 (873) 0.0036

Long term advance 900 1800 (900) 50

Long term deposits 233241 309749 (76508) 24.6

TOTAL 30528290 29381332 1146958 3.9

 Total current assets have decreased
 The comparative percentage indicates the slight
decrease in non current assets
 The comparative percentage of total assets is 3.9%
 Total liability have decreased by percentage of
27.3%
 2015 % 2014 %

LIABILITIES:
Current liabilities:

Trade and other 2055628 6.7 1725648 5.87

payables
Markup accrued 144013 0.47 163457 0.55

Short term borrowings 5758 0.01 42232 0.14

Current portion of long 2524978 8.27 2551169 8.68

term financing
Non-Current:

Long term financing 4000119 13.1 5362998 18.2

Differed liabilities 4378810 14.3 3747641 12.7

Share capital and

reserve
Share capital 13798150 45.1 13798150 46.9

Reserve 3620834 11.8 1990037 6.7

TOTAL 30528290 100 29381332 100

 Comparative analysis of year 2014 2015
 Decrease in stock in trade i.e 4.7 to 2.9%
 Increase in short term investments
 Decrease in current liabilities
 The interest accrued is decreased
 Gross profit: The percentage of year 2015 is
853.8% indicates far better position than last five
years
 Stockholder’s equity: The percentage is highest in 2015
 Fixed assets: the percentage of assets are same for two
years
 Net Sales : maximum in year 2015
 Financial charges :indicates the slight decrease.
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30 JUNE 2015

FCCL D G Khan
Turnover – net 100 100
Cost of sales 62.3 63.78
Gross profit 37.7 36.22
Distribution cost 0.8 1.81
Administrative expenses 1.5 2.86
Other operating expenses 2.3 2.79
Finance cost 3.8 8.89
Other income 1.0 _
Profit before taxation 30.5 36.57
Taxation 8.4 7.36
Profit for the year 22.1 29.21
 The financial statement of FCCL and D G khan is
compared.
 The cost of sales of FCCl is less than D G khan
 The overall profit of FCCl is less than that of D G
khan.
 D G khan is spending more on its administrative
expenses
 FCCL possess more current assets as compared to
D G khan
 FCCL possess less short term borrowings
 The deffered liabilities are less
 Current ratios
Fauji cement industry 2015 2014
Current assets/current 6413596 5188357
4730377 4482506
liabilities
Results 1.35 1.15

Favorable: 1.35
 The overall analysis of financial statements and ratios
of the company indicates that the company holds a
good position in year 2015 as compared to 2014.

 The trend analysis of last five years indicates that

company has adopted better strategies since last five
years