Security Paper limited

Balance sheet
As at 30 june
Note 2013
Assets
Non-current assets
Property, Plant and Equiqment 4 1,958,464
Long-term deposit 5 14,359
Long-term invesments 6 582,209
Total 255,032
Current assets
Store, spare and loose tools 7 112,101
Stock-in-trade 8 408,215
Trade debts- considered good 9 272,925
Advances, deposits,prepayments and other receivables 10 11,596
Accrued mark-up 11 31,258
Investment 12 136,020
Cash and bank balances 13 37,245
Total 22,403,360
Total Assets 4,795,392

Liabilities
Current liabilities
Trade and other payables 14 411,856
Accured mark-up 5,181
Current marturity of long term loan 16 161,214
Current portion of liabilities against asset subject to finance lease 17 3,939
Taxtation-net 75,413
Total 657,603
Non-current liabilties
Long term loan 16 323,541
Liabilities against aseest subject to finance lease 17 8,092
Deffered taxation -net 18 3,344,454
Total 665,997
Total liabilities 1,323,600
Contingencies and commitments 19
Net assets 3,471,792
Financed By:
Authorised share
capital70000000(2012:7000
0000) ordinary share of Rs
10 each 700,000
Issued, subscribed and paid-up capital 19 411,499
General reserve
Capital reserve 6,098
Revenue reserve 3,054,195
Unappropriated profit
Surplus on re-measurement of investments classifedd as 'available for sale'
SHAREHOLDER'S EQUITY 3,471,792

Market Price Per Share 86Rs At 10:15 am 3-04-2019

 2014 2015 2016 2017

19,297,336 1,847,614 1,710,120 1,591,021

144,561 15,048 15,514 15,997
1,510,331 1,461,009 774,229 779,176
3,395,328 3,323,761 2,499,863 2,386,194

115,715 108,855 108,025 138,633

336,654 366,127 487,006 548,554
284,402 252,764 310,892 631,879
144,193 76,711 34,973 63,757
75,514 73,341 75,523 47,648
596,276 834,660 1,608,966 1,832,612
83,213 114,543 147,365 29,930
1,505,967 1,827,001 2,772,750 3,293,013
4,901,295 5,150,762 5,272,613 5,679,207

482,556 538,105 552,525 690,876

3,686 1,474 325 82
1,612,144 120,988 4,440,037 1,212
4,549 3,791 4,685 5,538
94,828 123,714 135,322 152,774
746,833 788,072 732,894 850,482

162,237 41,249 1,212

10,626 10,678 13,990 11,908
311,641 290,593 275,028 216,360
4,844,504 342,520 290,230 228,268
1,231,337 1,130,592 1,023,124 1,078,750
20
3,669,958 4,020,170 4,249,489 4,600,457

700,000 700,000 700,000 700,000

493,799 592,559 592,559 592,559
2,873,119 3,023,489 3,209,919
 22,563
3,153,596
500,140 631,815 944,451
54,352 1,626 (146,472)
3,669,958 4,020,170 4,249,489 4,600,457
Security Paper Limited
Income Statement
For the year ended 30 June
Note 2,013 2,014 2,015
Sales-net 21 1,856,926 2,236,019 2,140,951
Cost of sales 22 (1,310,772) (1,575,208) (1,465,235)
Gross profit 546,154 660,811 675,716
Adminstration and general expences 23 162,313 (164,818) (170,417)
Other income 25 200,437 213,579 282,092
Other operating charges 26 (55,165) 56,406 57,326
Operating profit before finance cost 529,113
Finance cost 27 (61,033) (42,495) (26,764)
Profit before taxation 468,080 610,671 703,301
Taxation-net 28 (147,848) (198,814) (197,387)
Profit after taxation 320,232 411,857 505,914
Rupees Rupees Rupees
Earning per share 29 8 8 9
EBIT 328,676 439,587 447,973
 2,016 2,017
2,583,566 2,842,085
(1,706,946) (1,753,679)
876,620 1,088,406
(180,286) (197,459)
300,600 520,700
72,272 103,392

(11,244) (4,129)
913,418 1,304,126
(181,547) (366,473)
603,871 973,653
Rupees Rupees
11 16
624,062 787,555
Security Paper Limited
Ratio Analysis
Liquidity Ratio 2013 2014 2015 2016 2017
Current Ratio=Current Assets/Current Liabilities Quick Ratio=Current A
3.41:1 2.02:1 2.32:1 3.78:1 3.87:1

Current Ratio shows our ability to meet current

obligation from current assets.In this company
this ratio is very high which indicates that our
company holding more current assets to meet
current obligations.I suggest that company
need to decrease stocks,investment and trade
debts.
 2013 2014 2015 2016 2017 2013 2014
Quick Ratio=Current Assets-Stocks-Prepaid Expence/Current Liabilites Cash Ratio=Marketable Securities+Cash in ha
2.61:1 1.40:1 1.71:1 2.97:1 3.06:1 0.06:1 0.61:1

Quick Ratio indicates our ability to meet current obligations Cash ratio indicates company's abil
from the liquid assets.From this analysis we came to know the cash.From the analysis of this r
this ratio is very high in first year and it decrease next year changes in every year in second yea
and than it again increase in every year means quick ratio is it is less it means company hold les
very high.This ratio indicate that company is holding more liquid obligation.I suggest that company h
assets than its need.I suggest that company need to decrease securities.
trade debts and investment.
 2015 2016 2017
le Securities+Cash in hand+Cash at bank/Current Liabilities
0.15:1 0.20:1 0.04:1

indicates company's ability to meet current obligation from

om the analysis of this ratio we came to know that cash ratio
every year in second year cash ratio is good in all other years
means company hold less amount of monay to meet its current
I suggest that company has to increase its cash or marketable
Security Paper Limited
Ratio Analysis
Activity Ratios 2013 2014 2015 2016 2017
Inventory Turnover Ratio=C.G.S/Average Inventory Assets Turnover Ratio=Sal
3.21 times 4.68 times 4 times 3.5 times 3.19 times

This ratio indicate the efficiency of company to convert This ratio indicate hoe efficie
inventory into sales.From this analysis we have come to Thia analysis shows that the
know the ratio is increase in 2nd year and then it decreases years than in third year it dec
in next years but this ratio is good when its value is higher increases.This indicate we ar
as much.This ratio indicates that we are not efficiently year its value is good.
convert our inventory into sales so company has to
decrease its inventory because according to my analysis
company holdin to much inventory or we should have
to increase our sales.
60%

50%

40%

30%

20%

10%

0%
1 2 3
 2013 2014 2015 2016 2017 2013 2014 2015
Assets Turnover Ratio=Sales/Assets Working Capital Turnover Ratio=C.G.S/Average worki
38% 45% 41% 48% 50% 84% 67% 81%

This ratio indicate hoe efficiently we utilize our assets or resources.
Thia analysis shows that the asset turnover ratio increase in first two
years than in third year it decrease and again in next years it reletively
increases.This indicate we are affeciently using our assets and in last
year its value is good.
This ratio indicates the afficiency of working capital mana
of company as it is higher shows we are affeciently utilizin
managing our working capital.It decrease in second year a
increases in next two years than decrease in last year.I sug
that in second and last year company's working capital der
but its cost of good sold increases in both years so compan
to effectively ulitize its working capital and maintain its C
year by year.

60% 120%
100%
50%
80%
40%
60%
R
30% 40%
Row 5
20% 20%

10% 0%
1 2 3 4
0%
1 2 3 4 5
 2016 2017
o=C.G.S/Average working Capital
110% 78%
of working capital management
we are affeciently utilizing or
ecrease in second year and
ecrease in last year.I suggest
any's working capital dereases
in both years so company has
apital and maintain its C.G.S.
Row 5
2 3 4 5
2013 2014 2015 2016 2017
Debitors Turnover Ratio=Credit Sales/Average Debitors
6.18 times 8.02 times 7.97 times 9.16 times 6.02 times
This ratio indicates our afficiency to recover the debts higher
amount of this ratio is good in second year it increases and in
next year it decline, in next year it again incease and decrease
in last year.This analysis shows debts collection department
of our company does not working properly so I suggest our
company has to incease the efficiency of debts collection
department.
 2013 2014 2015 2016 2017
Creditors Turnover Ratio=Credit Purchase/Average creditors
11.77 times 11.59 times 13.17 times 39.78 times 30.29 times

This ratio indicates our efficiency of paying debts.As this ratio is high indicates
our ability to paying debts means higher ratio is good. From this analysis we
came to know this ratio increase in start and decrease in last year means this
company has good ability to payout its debts.
Security Paper Limited
Ratio Analysis
Leverage Ratio 2013 2014 2015 2016 2017 2013

Debt to equity Ratio=Total debt/Equity Total Debt Ratio=Total Debt/Tota

0.38:1 0.34:1 0.28:1 0.24:1 0.23:1 0.7:1

This ratio indicates the extent to which debt financing
has been used in business.1:1 is stisfactory value in debt
to equity ratio.From this analysis we come to know
the value of this ratio is very low means company more
relying on insider financing I suggest that company
has to use some sort of outsider financing.
This ratio indicate the solvency of t
we come to know that in start this r
it become very low which show tha
proper;y using its opportunities.So
to look after the way by which the c
company have to increse total debt
 2014 2015 2016 2017 2013 2014 2015 2016 2017

t Ratio=Total Debt/Total Assets Interest Coverage Ratio=EBDIT/Interest

0.78:1 0.19:1 0.19:1 0.03:1 5.57:1 14.97:1 24.35:1 74.39:1 240:01:00

ndicate the solvency of the firm.From this analysis This ratio is used to test he firm's debt servicing
o know that in start this ratio is satisfactory and then ability means how effectivily we are using and paying
very low which show that company does not our debts.
ing its opportunities.So I suggest that company has
er the way by which the company using its debt and
ave to increse total debt ratio.
Security Paper Limited
Ratio Analysis
Profitability Ratio
Profitability Ratio Base on Sale 2013 2014 2015 2016 2017
Gross Profit Ratio=(Gross Profit/Sales)*100
29.41% 29.55% 31.56% 33.93% 38.29%

This ratio indicates the company's efficiency to produce

and sell its products.From this analysis we come to
know this ratio is increasing years by year and it indicates
the good level of management.Isuggest that company has
to purchase raw material at low rates and effeciently
utilize its machinary to decrease cost of production.
 2013 2014 2015 2016 2017 2013 2014
Net Profit Ratio=(Net Profit After Tex/Sales)*100 Operating Expence Ratio=(Operating Expences/Sa
17.24% 18.41% 23.63% 23.37% 34.25% 11.71% 9.89%

This ratio indicates the overall management of This ratio indicates the expence that incu
manufacturig and selling products and it has its sales.Low operating expence ratio is g
direct relation with the return on ivestment. company and from this analysis we come
In this analysis we come to know this profit the value of operating expence ratio's val
is increasing year by year which indicates its changing in each year by increasing and
return on investment increasing year by year
for more increasing in this ratio company can
increse its selling price or decrease the price
of raw material.
 2015 2016 2017
Ratio=(Operating Expences/Sale)*100
10.63% 9.77% 10.58%

ndicates the expence that incured to operate

w operating expence ratio is good for
nd from this analysis we come to know that
f operating expence ratio's value is reletively
n each year by increasing and decreasing manners
Security paper Limited
Profitability Ratio
Profitability Ratio Base on Investment 2013 2014 2015 2016 2017
Return on Total Asset= (EBIT/Total Asset)*100

6.85% 8.96% 8.69% 11.83% 13.86%

This ratio is used to measure the overall

profitability of business high amount of ratio
indicates high profitability of te company.From this
analysis we come to know that company have low
amount of profitability. Because company has very
high amount of assets. So I suggest that company
has to decrease its cost of sale orhas to decrease its
current assetss.
 2013 2014 2015 2016 2017 2013
Return on Capital Employed= EBDIT/Capital Employed Return on Equity=(Net Profit Afte

0.07:1 0.10:1 0.10:1 0.13:1 0.16:1 0.77$

This ratio indicates the efficiency of busines before

 2014 2015 2016 2017 2013 2014
Equity=(Net Profit After tex-Prefrence Dividend)/Equity share refund
Earning Per Share=(Profit After Tex-Preferen
0.83$ 0.46$ 0.49$ 0.63$ 0.007$ 0.008$
 2015 2016 2017 2013 2014 2015

Profit After Tex-Preference Dividend)/No. of Equity Shares Dividend Per Share=Amount to be Distributed Among S
0.008$ 0.01$ 0.01$ 0.005$ 0.004$ 0.002$
 2016 2017 2013 2014 2015
Dividend Payout Ratio= (Dividend Per Share/Earning Pe
be Distributed Among Shareholder Fund/No. of Equity shares
0.005$ 0.006$ 71% 50% 25%
 2016 2017 2013 2014 2015 2016 2017
nd Per Share/Earning Per Share)*100 Dividend Yield Ratio= (Dividend Per Share/Marketing Price Per Share)*100

50% 60% 0.01% 0.00% 0.00% 0.01% 0.01%

 2013 2014 2015 2016 2017
Price Per Share)*100 Price Earning Ratio= Marketing Price Per Share/Earning Per Share

735times 10750times 10750times 8600times 8600times

 2013 2014 2015 2016 2017
Capital Gearing Ratio= (Prefrence Share Capital+Debenture+Long Term Loan)/(Equity Share Capital+

0.09:1 0.04:1 0.01:1 0.002:1 0:01

n)/(Equity Share Capital+Reserves)