MAHNOOR TAUSEEF

SIR SIKANDAR IQBAL

63633
CHAIRMAN’S REVIEW..................................................................................

DIRECTORS REPORT.....................................................................................

LOADS LIMITED.............................................................................................

EXECUTIVE SUMMARY...............................................................................

FORECASTING FOR THE YEAR 2020-2022................................................

GRAPHICAL REPRESENTATION.............................................................

HORIZONTAL ANALYSIS (BALANCE SHEET).........................................

SHARE PRICE OF THE COMPANY ON 30 JUNE 2023...............................

Average Growth Rates Loads Ltd..................................................................

Ownership Loads Ltd...................................................................................

RATIO ANALYSIS OF THE YEAR 2020-2022.............................................

COMMENTS ON RATIO ANALYSIS........................................................

Z-SCORE OF THE YEAR 2020-2022..............................................................

COMMENTS ON Z-SCORE........................................................................
CHAIRMAN’S REVIEW
DIRECTORS REPORT
LOADS LIMITED

For the automotive industry, Loads Ltd. produces exhaust systems, radiators, and sheet metal

components. Mufflers, exhaust systems, and radiators are some of its offerings. The company's

headquarters are in Karachi, Pakistan, and it was established on January 1st, 1979.

The Management Committee, which is made up of senior management and is led by the Chief

Executive Officer (CEO), sees to it that an adequate system is created and put in place

throughout the Company so that decisions may be made quickly and effectively. It serves as the

CEO's operating-level advisor, making suggestions regarding business and other corporate

affairs. It is tasked for overseeing company strategies, developing capital and spending budgets,

and assessing and forwarding long-term plans. The Committee, which is made up functionally,

meets every month to assess how each function is doing in relation to predetermined goals. The

CEO also makes sure that all decisions and instructions from the Board are effectively

communicated and carried out.

EXECUTIVE SUMMARY

There is a separate Internal Audit department at Loads Group. The Board Audit Committee

(BAC) is the functional reporting entity for the Head of Internal Audit. Plans for annual internal

audits are created based on risk assessments and submitted to BAC for approval. The Internal

Audit role serves as a managerial control and value-adding mechanism for all departments inside

the company. It is an impartial assessment activity that continuously reviews operations with a

focus on accounting, financial, and operational implications.

The objectives of internal audit procedures are operational efficiency, the protection of

profitability, and the interests of the company. These procedures are guided by the principles of

independence, objectivity, and value addition. The Human Resource ("HR") department of the

company focuses its efforts on developing future talent. The HR division works hard to find,

cultivate, inspire, and keep the most talented and devoted workers who are committed to

ensuring the company's success. The department is in charge of handling employee relations,

payroll, benefits, and training in addition to managing the varied demands of Company

employees.

Through workforce planning, training & development, employee compensation & benefits, and

HR administration, the HR department helps the company run as efficiently as possible.

FORECASTING FOR THE YEAR 2020-2022

2020 2021 2022

Revenue - net 2,778,630,637 4,717,228,398 7,791,955,309

Cost of revenue -2,726,360,719 - -6,844,515,665

4,218,274,392

Gross profit 52,269,918 498,954,006 947,439,644

Administrative, selling and general -239,016,127 -256,180,587 -306,958,075

expenses

Reversal / (impairment loss) on trade -12,347,172 12,347,172 .

receivables

-199,093,381 255,120,591 640,481,569

Other expenses -3,044,586 -38,095,825 -46,401,555

Other income 15,905,563 49,191,548 84,734,309

12,860,977 11,095,723 38,332,754

Operating profit / (loss) -186,232,404 266,216,314 678,814,323

Finance costs -235,609,302 -340,314,043 -492,756,160

Share of profit / (loss) in associate - net -172,850,982 26,197,334 -8,370,342

Provision for reversal / (Impairment) -122,991,403 138,198,148 -21,888,597

against associate

Profit / (loss) before taxation -717,684,091 90,297,753 155,799,224

Taxation 70,955,369 -93,855,526 -242,054,431

Loss for the year -646,728,722 -3,557,773 -86,255,207

Profit / (loss) attributable to:Owners of -576,081,019 58,155,269 1,194,471

the Parent Company

Non-controlling interests -70,647,703 -61,713,042 -87,449,678

-646,728,722 -3,557,773 -86,255,207

Earning / (loss) per share - basic and -3 0.29 0.005

diluted
GRAPHICAL REPRESENTATION

Revenue - net
9,000,000,000
8,000,000,000
7,000,000,000
6,000,000,000
5,000,000,000
4,000,000,000
3,000,000,000
2,000,000,000
1,000,000,000
0
2019.5 2020 2020.5 2021 2021.5 2022 2022.5

Cost of revenue
0
2019.5 2020 2020.5 2021 2021.5 2022 2022.5
-500,000,000
-1,000,000,000
-1,500,000,000
-2,000,000,000
-2,500,000,000
-3,000,000,000
-3,500,000,000
-4,000,000,000
-4,500,000,000

GROSS PROFIT
12

10

0
0 2 4 6 8 10 12
 Administrati ve, selling and
general expenses
0
2019.5 2020 2020.5 2021 2021.5 2022 2022.5
-50,000,000
-100,000,000
-150,000,000
-200,000,000
-250,000,000
-300,000,000
-350,000,000

Reversal / (impairment loss) on

trade receivables
15,000,000
10,000,000
5,000,000
0
2019.5 2020 2020.5 2021 2021.5 2022 2022.5
-5,000,000
-10,000,000
-15,000,000

The 5 graphs including net revenue, cost of revenue, gross profit, administrative selling and

general expenses and reversal (impairment loss) on trade receivables fluctuates every year like

revenue goes from 4,717,228,398 to 7,791,955,309 in the last two years which means that the

company has the ability to improve or to grow better but at the same time the cost of revenue is

in loss of -6,844,515,665 in the year 2022.

If we take a look on the gross profit graph it will propose the profitable aspect of the business

with values of

2020 2021 2022

52,269,918 498,954,006 947,439,644

 Other Expenses & Other Income
100,000,000

80,000,000

60,000,000

40,000,000

20,000,000

0
2019.5 2020 2020.5 2021 2021.5 2022 2022.5
-20,000,000

-40,000,000

-60,000,000

Other expenses Other income Series6

Other expenses -3,044,586 -38,095,825 -46,401,555

Other income 15,905,563 49,191,548 84,734,309

These values shows us that the 2020-2022 the company spend more on expenses in every year

and the income is stable as the graph goes up from x-axis to y-axis.

Operati ng profi t/loss-Finance cost- Share

profi t / loss in associate net
800,000,000

600,000,000

400,000,000

200,000,000

0
2019.5 2020 2020.5 2021 2021.5 2022 2022.5
-200,000,000

-400,000,000

-600,000,000

Operating profit / (loss) Finance costs

Share of profit / (loss) in associate - net
 Operating profit / -186,232,404 266,216,314 678,814,323
(loss)
Finance costs -235,609,302 -340,314,043 -492,756,160
Share of profit / -172,850,982 26,197,334 -8,370,342
(loss) in associate -
net
In the graph operating profit/loss shows that the company recover from the losses they bare from

2020-2022. The finance cost is still in huge loss for the last three years and Share of profit / (loss)

in associate – net is performing better by recovering but still in loss.

Profi t/loss before taxati on-Taxati on-Loss

for the year
400,000,000

200,000,000

0
2019.5 2020 2020.5 2021 2021.5 2022 2022.5
-200,000,000

-400,000,000

-600,000,000

-800,000,000

Profit / (loss) before taxation Taxation

Loss for the year

Profit / (loss) -717,684,091 90,297,753 155,799,224

before taxation
Taxation 70,955,369 -93,855,526 -242,054,431
Loss for the year -646,728,722 -3,557,773 -86,255,207

The company recover loss before taxation by doing profitable business in the year 2022 but the

high tax values bring loss to the company and then loss per year decreases from -646,728,722 to

-86255207 which is not a stable position for business.

 Profi t/loss att ribute-Non controlling in-
terests
100,000,000
0
2019.5 2020 2020.5 2021 2021.5 2022 2022.5
-100,000,000
-200,000,000
-300,000,000
-400,000,000
-500,000,000
-600,000,000
-700,000,000

Profit / (loss) attributable to:Owners of the Parent Company

Non-controlling interests
Series6

Profit / (loss) -576,081,019 58,155,269 1,194,471

attributable
to:Owners of the
Parent Company
Non-controlling -70,647,703 -61,713,042 -87,449,678
interests
-646,728,722 -3,557,773 -86,255,207
Due to increasing interest rate the company lose its stakeholders but the owners of the company

are in profit with the value of 1,194,471.

 Earning / (loss) per share - basic and
diluted
2

0
2019.5 2020 2020.5 2021 2021.5 2022 2022.5

-2

-4

Earning / (loss) per share -3 0.29 0.005

- basic and diluted

According to the graph company got minor profitable perspectives in the year 2022 as compare

to the year 2020 and 2021.

HORIZONTAL ANALYSIS (BALANCE SHEET)

2020 2021 2022

Non-current assets

Property, plant and equipment 4,932,529,642 5,255,653,540 5,270,345,813

Intangible assets 344,797 . 2,879,505

Long-term Investments 158,738,930 -327,621,735 149,238,235

Long-term loans 7,261,530 8,303,878 7,644,157

Deferred tax assets 9,501,130 .

5,108,376,029 -5,591,579,153 5,430,107,710

Current assets

Stores, spares and loose tools 76,560,562 70,811,900 55,063,066

Stock-in-trade 1,381,183,851 1,3,87,034,758 1,618,931,498

Trade debts - net 328,704,079 476,303,736 909,494,124

Loans and advances 67,822,902 132,827,429 253,365,717

Due from related party 1,150,380 1,150,380 1,150,380

Deposits, prepayments and other 575,981,421 512,011,961 495,687,252

receivables

Taxation - net 163,120,742 206,232,180 317,350,627

Short-term Investments 9,001,861 925,552 922,502

Cash and bank balances 95,281,712 25,171,42 30,371,640

 2,698,807,510 2,812,469,318 3,682,336,806

Total assets 7,807,183,539 8,404,048,471 9,112,444,516

EQUITY AND LIABILITIES

Share capital and reserves

Authorised capital 400,000,000 4,000,000,000 4,000,000,000 4,000,000,000

ordinary shares of Rs.10 each

Issued, subscribed and paid up 1,512,500,000 2,512,500,000 2,512,500,000

capital

Share premium 1,095,352,578 1,070,065,433 1,070,065,433

Fair value reserve -1,815,876 -1,819,906 -1,818,044

Unappropriated profit 231,917,852 288,483,538 269,956,095

Equity attributable to owners of the 2,837,954,554 3,869,229,065 3,850,703,484

Parent Company

Non controlling Interests 259,467,794 197,754,752 110,305,074

3,097,422,348 4,066,983,817 3,961,008,558

LIABILITIES

Non-current liabilities

Lease liabilities 663,416 910,322 23,828,164

Defined benefit obligation - net 16,149,322 4,535,710 35,100,894

Long term loans 1,730,349,971 1,301,462,356 1,229,817,007

Deferred tax liabilities - 17,053,867 24,389,285

Deferred grant 2,646,769 424,227 .

Gas Infrastructure Development - 1,668,081 47239

Cess

1,749,809,478 1,326,054,563 1,313,182,589

Current liabilities

Current maturity of lease liabilities 1,077,125 839,504 6,500,095

Current portion of long-term loans 43,170,962 543,658,900 433,625,552

Current portion of deferred grant 4,829,455 5,770,074 424,227

Short-term borrowings 2,088,194,296 1,844,976,781 2,226,407,411

Trade and other payables 491,985,880 513,330,155 1,064,498,286

Due to related party 162,803,871 22,048,871 22,048,871

Unclaimed dividend 3,526,379 3,527,781 4,000,000

Accrued mark-up on short-term 164,363,745 76,858,025 3,527,781

financing

77,221,146
 2,959,951,713 3,011,010,091 3,838,253,369

Total equity and liabilities 7,807,183,539 8,404,048,471 9,112,444,516

CONTINGENCIES AND

COMMITMENTS
SHARE PRICE OF THE COMPANY ON 30 JUNE 2023

The share price for the shares of loads limited on the year end June 2023 will be 5.06 rupees

per share
 Earnings Important Ratios
Latest EPS Upto 2023 Rs. 0.11 Gross Margin Upto 2022 10.41%
2Q      4Q    
EPS Last Quarter 2023 Rs. 0.16 Sales Growth (YoY) 2021 65.18%
2Q to 2022
Last Annual EPS Upto Rs. 1.06 Sales Growth (QoQ) 1Q 16.51%
2022 4Q     2023 to 2Q 2023
Price To Earning 6.09 x Enterprise Value Per Rs. 7.82
P/E Upto 2022 4Q Share Upto 2023 1Q     
Exp Price To Earning 29.36 x Book Value Per Rs. 16.94
P/E Upto 2023 2Q      Share Upto 2023 1Q     
Exp Earning -79.25% Debt to Equity Ratio Upto 65.94%
Gowth Upto 2023 2Q      0    
Price Earning -0.37 x xPrice Date Right: 66.11% 12-Jan-21
Growth Upto 2023 2Q

Average Growth Rates Loads Ltd.

Past Five YearsEnding 01/01/0001 (Fiscal Year)

Revenue+11.87% Net Income-19.85% Earnings Per Share-19.88%

Capital Spending-18.75% Gross Margin+10.95% Cash Flow-15.17%

Ownership Loads Ltd.

Mutual Funds that own LOADS

Name Shares Held % Change In % of As of Date

Share Shares Assets

s Out

First Habib Islamic 23800 0.02% 0 0.32% 12/31/19

Stock Fund
RATIO ANALYSIS OF THE YEAR 2020-2022

RATIO FORMULA 2020 2021 2022

CURRENT ROTIO CA/CL 0.91 0.93 0.95

QUICK RATIO CA-INVENTORY/CL 2.6 2.5 2.90

INVENTOTY TURNOVER COSG/INVENTORY -30.2 -12.8 -45.8

DOS A/C 0.003 0.0002 0.00030

RECEIVABLE/ANNUAL

SALES/360

FIXES ASSET TURNOVER SALES/NET FIXED ASSET 0.92 0.89 0.78

TOTAL ASSET SALES/ TOTAL ASSET 0.35 0.56 0.85

TURNOVER

DEDT TO TOTAL ASSET TL/TA 1.09 1.07 1.04

TIMES INTERSET EBIT/ INTEREST CHARGES 0.96 1.8 1.99

EARNED

NET PROFIT MARGIN NET PROFIT/ SALES 1.8 2.9 1.99

ROA NET INCOME/TOTAL 0.87 0.56 1.34

ASSET

ROE NET INCOME/COMMON 1.9 1.8 2.00

EQUITY

P/E MARKET PRICE PER 2.11 2.9 1.0

SHARE/EPS
COMMENTS ON RATIO ANALYSIS

1. The current ratio of loads limited for the year 2020-2022 shows us that the ratios for the

are increasing it shows the company performance of gaining its ability of paying current

liabilities, but their current assets are increasing as well.

2. The values for the quick ratio is greater than the current ratio of the loads limited it is

takes as a sign of gaining profit again which will be better for the company to get their

business position back and then the inventories of the loads limited are fulfilling the short

term aspects of the company.

3. The inventory turnover of loads limited decrease as per the data analysis of 2020-2022

which demonstrated that inventories performed by the organization were in better

position few years back.

4. The days of sales outstanding are known as the account receivables of the organization

which are not stable in any way for the last three years.

5. The fixed asset in the data analysis of loads limited are decreasing which means that the

company is not recovering their revenue per dollar for the fixed assets.

6. The total asset turnover of the company are also performing better with the increasing

values of turnover according to the data analysis for the years 2020-2022 and the

strategies are proposed on the basis of previous year’s performance.

7. The debt to total asset decreased for the years 2020-2022 which shows that operations are

effected due to shortage of finance.

8. For the last three years, the times interest earned ratio fluctuated with a notable rise in

2022. It implies that the company's capacity to pay its interest costs has greatly increased.
 9. For the years 2020-2022, the net profit margin has increased and decreased, showing that

the business can be more profitable.

10. The ROA has grown over time, demonstrating that the company is getting better at

profiting from its assets.

11. The ROE has significantly increased over time, demonstrating that the company is

getting better at maximizing shareholder equity profits.

12. The P/E ratio has changed throughout time, with 2021 seeing a large increase. A low P/E

in 2020 indicates a loss for the company that year.

Z-SCORE OF THE YEAR 2020-2022

PARTICULAR 2020 2021 2022

Total Assets 7,807,183,539 8,404,048,471 9,112,444,516

Total Current Assets 2,698,807,510 2,812,469,318 3,682,336,806

Total Liabilities 2,959,951,713 3,011,010,091 3,838,253,369

Total Current Liabilities 7,807,183,539 8,404,048,471 9,112,444,516

Retained Earnings 344,797 . 2,879,505

Earning Before Interest & Tax 9,001,861 925,552 922,502

Interest Expense 67,822,902 132,827,429 253,365,717

Revenue 158,738,930 -327,621,735 149,238,235

Market Capitalization 7,261,530 8,303,878 7,644,157

Total Current Assets 2,698,807,510 2,812,469,318 3,682,336,806

Total Current Liabilities 7,807,183,539 8,404,048,471 9,112,444,516

Working Capital 4,000,000,000 4,000,000,000 4,000,000,000

Total Assets 7,807,183,539 8,404,048,471 9,112,444,516

A = Working Capital / Total 0.512 0.47 0.43

Assets

Retained Earnings 344,797 . 2,879,505

Total Assets 7,807,183,539 8,404,048,471 9,112,444,516

B = Retained Earnings / Total 0.0004 - 0.0003

Assets

 
Earning Before Interest & Tax 9,001,861 925,552 922,502

Total Assets 7,807,183,539 8,404,048,471 9,112,444,516

C = EBIT / Total Assets 0.001 0.0001 0.0001

Market Capitalization 7,261,530 8,303,878 7,644,157

Total Liabilities 2,959,951,713 3,011,010,091 3,838,253,369

D = Market Cap / Total 0.002 0.002 0.001

Liabilities

Revenue 158,738,930 -327,621,735 149,238,235

Total Assets 7,807,183,539 8,404,048,471 9,112,444,516

E = Revenue / Total Assets 0.02 -0.03 0.016

1.2A + 1.4B + 3.3C +

0.6D + 1.0E

A x 1.2 0.512 x 1.2 = 0.47 x1.2 = 416.4 0.43 x 1.2 =

0.6144 0.516

B x 1.4 0.0004 x 1.4 = - 0.0003 x 1.4 =

0.00056 0.00042

C x 3.3 0.001 x 3.3 = 0.0001 x 3.3 = 0.0001 x 3.3 =

0.0033 0.00033 0.00033

D x 0.6 0.002 x 0.6 = 0.002 x 0.6 = 0.001 x 0.6 =

 0.0012 0.0012 0.0012

E x 1.0 0.02 x 1.0 = -0.03 x 1.0 = - 0.016 x 1.0 =

0.002 0.03 0.016

0.62 4.13 0.53

COMMENTS ON Z-SCORE

The economic health and liquidation risk of a corporation are assessed using a financial metric

known as the Z-score. It incorporates a variety of financial indicators to provide a thorough

evaluation of the organization's stability.

Let's look at the Z-scores for Loads Limited for 2020, 2021, and 2022:

• 2020 Z-score: 0.62

• Z-score: 4.1 for 2021

• Z-score: 0.53 for 2022

A Z-score of 2.99 frequently indicates a company's financial stability and health, whereas a score

below 1.8 suggests a higher risk of financial distress.

According to the presented Z-scores, Loads Limited's financial status significantly improved

between 2020 and 2021. The Z-score significantly increased in 2020 at 4.13, then it decreased in

2020 and 2021 to 0.62 and 0.53 respectively.

However, the Z-score increased to 4.1 in 2021, showing weaker financial stability than in 2020.

It's important to remember that a Z-score is not considered to be particularly healthy and

indicates a significant likelihood of financial trouble.

The slight increase in 2022 emphasizes the importance of continuing to watch and study the

company's financial performance, but the general trend of rising Z-scores from 2020 to 2021

points to Loads Limited's stressed financial health. It is also essential to compare these ratings

with industry benchmarks and take other factors like market circumstances and competition into

account for a more full assessment of the company's financial position.