Sapphire introduction:

Sapphire is the vast group of textile industry producers every time, producing 60 thousand tons

of yarn, 50 million meters of the fabric of Griege each year and 5 tons of yarn in the thinnering

plant and 10 tons of knitting per day, also includes some of the offshore businesses led by Mr

Mian Abdullah, by promoting his biggest worldwide brand name. The sapphire textile started its

business in Calcutta, India, the first ever spinning group and thus began to take over and take its

position as a leader in the industry. Sapphire Group is known for its history as a whole when

India and Pakistan were known as the sub-continent. It now comprises a total of nine factories

called STML- Textile Sapphire limited.

Dividend policy:

Investors benefit from steady revenue flows. However, the purpose of dividends and why they

are used by some companies, not others, is an important component missing in many of those

debates. Let us look at different arguments for and against dividends policy before describing the

different policies that businesses use to decide how much to pay their investors. The

redistribution shall be made pursuant to the relevant provisions of the Companies Act 2013, the

Rules of Procedure, the SEBI Rules, 2015 and other dividend laws and the Articles of

Association of the Sapphire textile as amended and in force. A dividend distribution policy ("the

Policy") was endorsed by the Board of Directors ("the Board of Directors"), which seeks to

increase the value of the stakeholders for their investors while at the same time ensuring the right

equilibrium seen between quantity of dividends paid and the amount maintained for different

commercial purposes.
Plan for expansion:

The growth-oriented decision of the Sapphire textile to keep cash in the Sapphire textile for the

future expansion plan would have an impact on shareholders' long-term expectations, which the

Board must consider to decide before the dividend is decided.

Cost of credit:

In view of the long-term or short-term projects proposed by the sapphire textile, the board will

examine the requirements for adequate funding. Dividend decision is influenced by the viability

of the options in terms of the cost of raising the funds required from foreign parties such as

bankers, lending institutions or by issuing debt securities or by ploughing its own funds.

The sapphire textile's operating cash flow

If the operating cash flow is insufficient, the sapphire textile may need to depend on external

funding to fulfill its financial obligations. Therefore, before deciding whether to declare a

dividend or retain its profits, the Board shall consider operating cash flows.

Return on capital invested

In deciding a dividend statement the effectiveness with which the Sapphire textile utilizes its

capital is affected.

Enterprise actions

The dividend decision and dividend quantum may also have an effect upon any corporate action

resulting in a sapphire textile dividend of capital for the Sapphire textile.

Use of recovered income

The Company's goal is to ensure the sustainable creation of wealth for its shareholders, which

will use both the retained profits of the Company and its stakeholders. The company seeks to

strike the correct balance between the shareholders' distribution of dividend payments and their

use to comply with special charges, including expansions. The Board will endeavor to keep the

company's profit after a standalone financial tax fair dividend payment (other than extraordinary

income).

Review Periodic

This policy should be subject to assessment in accordance with the guidelines issued on the

subject from time to time by the Ministry of Corporate Affairs, the Indian Securities Exchange

Board or other regulatory authority. The Board reserves the right to periodically review this

policy in light of different strengths and weaknesses.

Policy Divulgation

This policy is available on the website of the company and will also be published in the Annual

Report.
Financials:

The Board of Directors shall be responsible for complying with the Regulations. Our

responsibility is to assess the status of the Sapphire textile's compliance with and report if this

does not and to highlight non-compliance with the Regulations. The Commission is responsible

for assessing the status of the Sapphire textile's compliance. An examination of various sapphire

textile documents prepared for compliance with the Regulations is mainly limited to inquiries by

the sapphire textile. We have a responsibility to understand the accounting and internal control

systems as part of our audit of financial statements to plan an audit and implement an effective

audit approach. We do not have to consider whether the Statement of the Board of Directors on

internal inspection covers all of the risks and inspections or whether we need to express an

opinion on the effectiveness or corporate governance of such internal checks. The rules require

the Sapphire textile to submit its related party transactions before the Audit Committee and to

ensure compliance with section 208 of the Sapphire textile's Act of 2017 on the

recommendations of its audit Committee, to the Board of Directors for review and approval.

Sapphire Textile Mills Limited's earnings fell by 4 percent to PKR26.72B during the six months

expired on 31 December 2020. Net revenue was down to PKR2.75B by 16 percent. Healthcare

and financial a 66% reduction in the PKR2.32B segment of generation, a 46% decrease in the

PKR4.38B spinning segment. Net revenue also includes an increase in administrative costs of

7% toPKR429.8M (expense), an increase in other revenues of 6% to PKR 271.3M (income).

Valuation
P/E Ratio (TTM)  3.94
P/E Ratio (including extraordinary items)   4.07
Price to Sales Ratio  0.33
Price to Book Ratio  0.79
Price to Cash Flow Ratio  2.3
Enterprise Value to EBITDA  4.97
Enterprise Value to Sales  1.66
Total Debt to Enterprise Value  0.8
Total Debt to EBITDA  4
EPS (recurring)  242.85
EPS (basic)  245.36
EPS (diluted)  245.36
Efficiency
Revenue/Employee  5,009,532
Income Per Employee  502,060
Receivables Turnover  4.29
Total Asset Turnover  0.49

Liquidity
Current Ratio  1.6
Quick Ratio  1.05
Cash Ratio  0.41

Profitability
Gross Margin  29.88
Operating Margin  24.48
Pretax Margin  14.98
Net Margin  10.02
Return on Assets  4.93
Return on Equity  25.93
Return on Total Capital  13.03
Return on Invested Capital  6.9

Capital Structure

Total Debt to Total Equity  313.03

Total Debt to Total Capital  75.79
Total Debt to Total Assets  63.91
Interest Coverage  2.17
Long-Term Debt to Equity  249.94
Long-Term Debt to Total Capital  60.51
Profit per share - fundamental and diluted

The Group provides its ordinary shares with basic and diluted earnings per share (EPS). The

Basic EPS is computed in the weighted average share number that remains outstanding

throughout the year by splitting the pro daily or losses attributable to the ordinary shareholders of

the Group. The dilute EPS shall be calculated by adjusting the income/loss attributable to

common shareholders and the weighted average number of normal stocks not held in accordance

with all the effects of all ordinary dilutive potentials

Dividend and reserve appropriation

Dividend and reserves appropriation are accepted as non-adjusting post-balance sheet events by

the consolidated financial statements during the time in which they are agreed upon by the

shareholders.

ROAE

With ROAE at 4.57 in 2016, the ability of the Bank to earn a return on its average shareholder

stock was down significantly from what it was in 2020. This is one of the most troubling

indicators for a sapphire textile, given that most shareholders and equity owners expect their

sapphire textile to be better at delivering and returning their investments. In terms of its

averaging return on equity, which represents the shareholders' satisfaction with its financial

performance, the Sapphire textile looked toward 2019 as a similar ratio. This ratio also fell

significantly due to COVID-19 and the decline in commercial sapphire textileing activities.
NIM:

Unfortunately, during 2016-2020, the sapphire textile lost its ability to generate its income from

interest on its earnings. The sapphire textile kept a consistent 1 ratio for the next few years with a

ratio of 0.96 in 2016. Because of a decrease in financial performance, the ratio fell significantly

until 2020, with lower investing sources and lower sales. Because Barclays regularly invests in

various sports activities, the sapphire textile has generated lower interest rates on its earnings

compared to the past, because of the reduced global economic activity.

This is a comparative analysis of the company's financial status and performance. The

comparison will be based on the statements of the Sapphire textile by the electronic data

collection, analysis and recovery system (about 10,000 largest publicly traded companies). The

comparison is carried out with the 11 main financial ratios (see table above). The financial ratios

of companies are compared with the ratios of the medium-sized values and quartiles of all

businesses and enterprises within the same sector. The values of each ratio vary from -2 to +2,

depending on the position of each ratio. Each ratio value is given a score from -2 to +2 according

to the quartile position (-2 – below the first trim; -1 - between the first trim and second trim; +1 -

the second to the third trim; +2 – the third trim; 0 – the median value is not more than 5 per cent

different from the median value; and the quartile closes at least one trim. The results are also
weighted to achieve an overall score ranging from -2 to +2, in order to draw a conclusion from

the analysis.

Introduction:

The bank I selected for this analysis is Barclays Plc, one of the country's leading banks. This is

because of its links and its support for a number of the world's top-paid athletes, since it is a field

for research. As Barclays Plc is a major sponsor of international sports events, the bank makes an

enormous amount of money and returns from advertising. This analysis would also provide a

basis for understanding the bank's commercial relationship that is outside its fundamental

banking operations. The bank's ability to repay debt is one of the most important aspects of

performance and profitability, financial soundness, return on investments. Profitability, liquidity

and a bank's economic stability could therefore become a topic for any financial analysis. The

method chosen for evaluating the performance of Barclays Plc is its profitability, however, for

this report. The returns on a bank, the difference between revenues and expenditures, and its

ability to control its annual expenditure measure profitability.

Principal analysis:

This part of the report discusses three ratios chosen, names, relevance, reasoning and ability to

represent the financial performance of any bank. The following are explained in detail by each of

the ratios:

Average asset repayment:

This ratio calculates and describes the profits of any business, also known as the return on assets.

This ratio is particularly used by banks and shows the capacity of a bank to generate revenue

over its existing assets.

ROAA

The bank has lost the capacity to produce returns on its average asset with a ROAA of 0.35 in

2016 and the same rate of 0.23 in the first quarter of 2020. The COVID-19, where the world

economy has decreased catastrophically, has been one of the most important reasons for this

decline. This means the Bank's ratio has fallen considerably because of the decline in

commercial banking operations across the world.

ROAA= TOTAL ASSETS NET INCOME/AVERAGE (Kenton, 2020).

This ratio shows how a financial institution will use its current assets and generate revenues in a

financial year. For every bank, their assets consist of public reserves, investments, derivatives

and money invested by branches of the bank. The margin of profitability relies heavily on the

quality of services and the ability of banks to use their existing assets, though nominal duties are

charged for their services.

Average Equity Return

This ratio also reflects the profitability of a financial institution in terms of using the

shareholder's equity to generate revenue. This ratio gives the shareholders satisfaction that the

financial institution was in a position to generate revenue from its equity. Therefore, the better

for the shareholders the higher the ratio.

Margin of Net Interest

Since lending, loan loans and the reserves they hold in their accounts is a vital factor in the

majority of any bank's income. The net interest margin reflects the ability of banks or financial
institutions to generate interest on their financial products/services on the market. In other words,

a bank's income over its clients' government, company or hybrid loan. While expenses and

income are calculated over one of the products of the bank, the proportion is calculated by

combining all components and by dividing them by the average income assets.

Conclusion:

Sapphire is one of Pakistan's leading textile company. The following report investigates why

Sapphire is advancing so much faster despite having comparable operations and organizational

structures. Culture is an important part of an organization because it defines the values shared by

the employees and, to a large extent, it represents the management style and attitude toward the

employees. It also aids in determining the level of motivation among employees, as high morale

motivates employees to work harder, resulting in increased productivity. While there may be

positive returns for any financial institution over a quarter of two, coherence is what matters to

its stakeholders. This means that banks must constantly outperform their rivals, sell more and

more financial products annually and keep their average balance regularly. While Barclays Plc's

financial performance improved in 2016 and 2017, this report significantly decreased in 2020.

This decline represents a substantial decrease in the profitability of the bank over time and is

alarming and troubling for the management of the bank. Both of these leading organisations have

a hierarchical organizational structure, which means that the levels of authority within the

companies are clearly defined. Both companies have a well-known name both locally and

internationally, which means they will ultimately prosper in terms of sales and profits. They both

positively contribute to the environment and society, demonstrating their high regard for

individuals and/or their stakeholders. However, there are some areas where all of these

companies have different strategies, such as how workers are handled. The Value comes because
the Chairman and the various Directors provide advice in the management of its internal and

external affairs. Because the Textile Industry is so complex, it requires adequate, effective, and

efficient planning within the company, which is a responsibility that the Directors have taken on.

Furthermore, with new production lines, advancements in marketing, sales, and supply chain

management, and an annual turnover of over US $8 billion, the company has experienced

tremendous growth.
 References:

Annual Reports – Sapphire Textile Mills. (n.d.). Retrieved March 23, 2021, from

http://sapphiretextiles.com.pk/annual-reports/

Financial Information | Gul Ahmed. (n.d.). Gulahmed.com. https://gulahmed.com/investor-

relations/financial-information/

Sapphire Textile Mills Ltd (SAPT) Stock Forums. (n.d.). Investing.com. Retrieved March 23,

2021, from https://www.investing.com/equities/saphire-textil-commentary

SAPT.PK | Sapphire Textile Mills Ltd. Annual Balance Sheet - WSJ. (n.d.). Www.wsj.com.

Retrieved March 23, 2021, from

https://www.wsj.com/market-data/quotes/PK/XKAR/SAPT/financials/annual/balance-

sheet

Bloomenthal, A., 2020. Net Interest Margin. [Online]

Available at: https://www.investopedia.com/terms/n/netinterestmargin.asp

Kenton, W., 2020. Return on Average Assets – ROAA Definition. [Online]

Available at: https://www.investopedia.com/terms/r/roaa.asp

Kindness, D., 2020. Return On Average Equity (ROAE). [Online]

Available at: https://www.investopedia.com/terms/r/roae.asp

 ThisMatter, 2018. Bank Profitability. [Online]

Available at: https://thismatter.com/money/banking/bank-profits.htm