Financial Analysis for

Nishat Mills Ltd.

&
Gul Ahmed Textile

Final Report for Finance for Managers

Summer- 2018

ASIF HUSSAIN
WAQAR HASAN
SYED ALI ABBAS
QADDAFI
Submitting to:

Dr. Sheheryar Malik

Content
Finance For Managers- Project Report-2018

1. Company introduction
a. Nishat Mills Limited
b. Gul Ahmed Textile Mills

2. Business & Product

a. Nishat Mills Limited
b. Gul Ahmed Textile Mills

3. Financial data of company

a. Balance Sheet
b. Income Statement
C. Cash Flow

4. Ratio Analysis between two companies

5. Performance analysis of last five years between two companies

6. Conclusion

a. Results:

Company Introduction
Finance For Managers- Project Report-2018

Nishat Mills Limited

 The Nishat group was founded in March 1951 with a vision to be provider of innovation textile
solution worldwide.

 It is one of the most modern, largest vertically integrated textile companies in Pakistan.

 Nishat Mills Limited has 227,640 spindles, 805 Toyota air jet looms.

 The Company also has the most modern textile dyeing and processing units, 2 stitching units for
home textile, two stitching units for garments and Power Generation facilities with a capacity of
120 MW.

 Nishat Mills Limited into a modern and dynamic yarn, cloth and processed cloth and finished
product manufacturing Company that is fully equipped to play a meaningful role on sustainable
basis in the economy of Pakistan.

 Nishat Mills Limited Provide quality products to customers and explore new markets to
promote/expand sales of the Company through good governance and foster a sound and
dynamic team.

 Nishat Mills Limited achieves optimum prices of products of the Company for sustainable and
equitable growth and prosperity of the Company.

 The production capacity of fabric processing facility is one of the largest and most modern
factories of Pakistan. With an array of custom-made machinery, it has the capacity to produce
104 million meters of fabric per annum. 

 Nishat Mills Weaving division has 805 modern Air Jet looms which produce approximate 11.3
million meters of fabric per month and makes it the largest weaving facility of Pakistan catering
to home textile and apparel fabrics.

 They are maintaining a record of service quality and on-time delivery.

 The product line is customized to manufacture products of various styles and sizes according to
the requirements of our customers, wholesalers, retailers and contract textile business.

 Nishat Mills has established state of the art, modern, highly reliable and extremely efficient
captive co-generation power plants to cater in house energy requirements at all its spinning,
weaving, processing, stitching and apparel units. 

Gul Ahmed Textile Mills

Finance For Managers- Project Report-2018

 The group began trading in textile in early 1990s.

 Today Gul Ahmed has an iconic in textile market local and international market.

 The installed capacity of the manufacturing more than 130,000 spindle, 300 state of the art
weaving machines and most modern yarn dyeing, process & stitching units.

 Gul Ahmed is playing a vital role not only textile market, but has its strong presence in the textile
retail business across the Pakistan.

 There are following subsidiary companies.

o Gul Ahmed international limited (FZC-UAE)

o GTM Europe limited-UK
o GTM USA Corp-USA
o Sky Home Corp- USA

 Gul Ahmed has more the 40 retail store operate across the Pakistan. They are provide the
variety of product and sell to customer.

 Gul Ahmed has also set up a waste water treatment plant to treat 100% of its effluent bringing it
to NEQs Level.

 It has own captive power plant comprising of gas engine, gas & Steam turbine and backup diesel
engines.

 Gul Ahmed has more than 50 years since its inception.

 Gul Ahmed offering a diverse range of products to the market.

o Home accessories.
o Fashion Clothing
o Formal Clothing

 The name of Gul Ahmed is still globally synonymous in the quality & innovative products and
reliability of product.

 Gul Ahmed textile mills focusing continuous improvement and increase the productivity.

Business & Products

Finance For Managers- Project Report-2018

Nishat Mills Limited

 Spinning (Spinning production capacity for both Cotton and Blended Yarns is 200 Tons / day)
 Yarn dyeing (Installed production capacity of 5.0 tons per day).
 Weaving (Produce approximate 11.3 million meters of fabric per month).
o Lahore Capacity: Approximate 3.5 Million Meters per month. 
o Sheikhupura Capacity: 8.46 Million Meters per Month.

 Home Textile Product:

o Quilt Covers
o Quilted Throw-over
o Flat Sheet
o Fitted Sheet
o Pillow Cases
o Cushions
o Valances
o Curtains
o Baby Sets
o Table Linen
o Embroidery

 Man & Women Garments

Gul Ahmed Textile Mills

 Home Textile: Gul Ahmed also deal globally through the home textile in the business market.
o Bedding
o Home Accessories
o Table Linen
o Towels
 Apparels: Gul Ahmed also emerging in the apparels and start to put step on apparels market.
 Cotton Fabric: Gul Ahmed directly produce the fabric from cotton first they made yarn and then
fabric that’s why there cotton is pure.
 Fashion Industries: After get the huge success on cotton fabric and home textile then Gul
Ahmed start to take a grab on the fashion industries.
Finance For Managers- Project Report-2018

Financial data of company

Nishat Mills Limited

A. Balance Sheet for five years:

B. Income Statement for Five Years:

C. Cash Flow Statement

Finance For Managers- Project Report-2018

Gul Ahmed Textile Mills

A. Balance Sheet for five years:

Finance For Managers- Project Report-2018

B. Income Sheet for five Years:

C. Cash Flow Statement

Finance For Managers- Project Report-2018

Ratio Analysis between two companies

Nishat Mills Limited
Finance For Managers- Project Report-2018

Gul Ahmed Textile Mills

Finance For Managers- Project Report-2018

Performance analysis of last five years between two

companies

 Ratio analysis is very important while measuring the performance of the business. These ratios
are carried out from the Income statement and balance sheet. Many parties i n c l u d i n g
m a n a g e m e n t , i n v e s t o r s a n d G o v e r n m e n t a r e i n t e r e s t e d i n t h e s e r a ti o s .
T h e  purpose of analysis is to measure the performance of the company and financial health
of the organization.

 Current Rati o clears the extent to which the claim of short term creditors can be
met  b y a s s e t s t h a t a r e t o b e c o m e c a s h w i t h i n a y e a r . T h e b e s t s t a n d a r d
r a ti o i s 2 : 1 s o , G u l A h m e d t e x ti l e m i l l s ability to pay short-term and long-term
obligations is less than as compare to Nishat textile mills.

 The quick ratio is a measure of how well a company can meet its short-term financial
liabilities.so G u l A h m e d t e x ti l e m i l l s can less meet its short-term financial liabilities a s
c o m p a r e t o Nishat textile mills.

 A leverage ratio is any one of several financial measurements that look at how much capital
comes in the form of debt (loans), or assesses the ability of a company to meet its financial
obligations. On the above table we have analysis the financial leverage ratio of Nishat textile
mills is better than as compare to G u l A h m e d t e x ti l e m i l l s
Finance For Managers- Project Report-2018

 Asset turnover ratio measures the value of a company's sales or revenues generated relative to
the value of its assets. so G u l A h m e d t e x ti l e m i l l s a s s e t t u r n o v e r r a ti o i s g r e a t e r
t h a n a s c o m p a r e t o Nishat textile mills.

 Earnings per share or EPS is an important financial measure, which indicates the profitability of a
company. so Nishat textile mills E P S i s b e tt e r t h a n t h e G u l A h m e d t e x ti l e m i l l s
EPS.

 Net profit margin is the percentage of revenue left after all expenses have been deducted from
sales. The measurement reveals the amount of profit that a business can extract from its total
sales. On the above table we have analysis the Net Profit Margin so the G u l A h m e d t e x ti l e
m i l l s Net Profit Margin Better than as compare to Nishat textile mills.

Conclusion

The ensuring years appeared to be positive for NML, as the economy turns on to the road of recovery.
Rising local and international cotton prices will strain the profitability, but NML has considerable sources
to generate incomes from. NML has the plan to start the functioning of the Operational Product
Development. Development to help is better focus on clients. NML’s plans to harness the benefits from
increasing international demand for apparel and garments particularly in the western economics can
help maintain a healthy bottom line.

For the 5 years ended 31 December 2015, Gul Ahmed Textile Mills Limited revenues increased 13% to
PKR21.4B. Net income increased from PKR95.3M to PKR618.5M. Revenues reflect Processing segment
increase of 67% to PKR16.62B, weaving segment increase of 74% to PKR6.3B, Pakistan segment increase
from PKR3.49B to PKR8.83B, Germany segment increase from PKR1.37B to PKR3.4B. Net income
benefited from Other income increase of 54% to PKR155.1M (income).