FINANCIAL MANAGEMENT PROJECT

PRESENTED BY :
Asif Khan 02-111181-189
Daniya Ahmed 02-112192-055
Reeba Nizam 02-112192-048
Muhammad Bin Subhan 02-210201-001
Adil Ashfaq 02-111182-251
 AGENDA

 Executive Summary
 Introduction of the company
 Liquidity Ratio
 Efficiency Ratio
 Market Value Ratio
 Ratio Analysis
 Conclusion
 EXECUTIVE SUMMARY

•  THIS REPORT COMPRISES OF FISCAL SUMMARIES WHICH ARE INCOME

STATEMENT AND BALANCE SHEET FOR THE YEAR ENDED 2018,2019 AND 2020 .
• IT ALSO CONSISTS OF RATIOS WHICH WOULD BE USEFUL FOR INTERNAL AND
EXTERNAL STAKEHOLDERS.
• THIS REPORT WILL HELP IN DECISION MAKING.
• THE ORGANIZATION CAN OVERSEE SPENDING PLAN APPROPRIATELY FOR
FUTURE AND TAKE ASTUTE CHOICES.
 INTRODUCTION
National Foods Limited 
– National Foods Limited is a Pakistani multinational food products  company founded in
1970, which started out as a spice company and now is a major food products company
in Pakistan.
– National Foods Ltd. (Pakistan) is a multi category food company, which is engaged in
manufacturing and distributing food products.
– In 1988, National Foods became the certified vendor of Mc Cornick , United States .
– In the same year, National Foods, then a Private Limited company was converted into a
Public Limited company, traded on all the three stock exchanges of Pakistan . 
– With a range of over 250 food products in over 10 major categories, National Foods is
one of the prominent food companies in Pakistan.
   Shezan International was integrate on May 13, 1964; regarded as a joint venture by
the Shahnawaz Group, Pakistan and Alliance Industrial Development Corporation,
United States in 1964.
 Shezan remains amongst Pakistan's largest food processing units, having developed
and installed the capacity to meet the country's domestic as well as export needs.
INTRODUCTION  In 1971, Shahnawaz Group purchased all the share s of Alliance Industrial
OF SHEZAN Development Corporation with the permission of the Govt of Pakistan.

LIMITED
 In 1980–81, a separate unit was installed in Karachi, which now caters for
Karachi, and also encounters the export demand.
 In England, Nuovo Foods Limited is the authorized distributor for all Shezan
products. They conduct all the import and distribution of juices, jams, pickles,
chutneys, sauces, syrups and squashes.
 RATIO ANALYSIS

Financial Ratios NFL NFL NFL SHEZAN SHEZAN SHEZAN

  2020 2019 2018 2020 2019 2018

Profitability Ratios % % % % % %
Gross Profit Ratio 29 29 31 15 19.8 22
Net Profit before Tax to Sales 8 7.1 5.4 -4.5 2.5 3

Net Profit after Tax to Sales 5.7 5.7 4.8 -3.2 1.4 2

Return on Equity 30 30 28 -13 5.6 17.09

Return on Assets 12 11 10 -4.9 2.35 9.3
 LIQUIDITY RATIO

NFL NFL NFL SHEZAN SHEZAN SHEZAN

Liquidity Ratios  

2020 2019 2018 2020 2019 2018

Current Ratio Times 1.2 1.1 0.9 1.09 1.32 1.52

Quick / Acid Test Ratio Times 0.5 0.3 0.3 0.42 0.49 0.54

Working Capital Turnover Times 31 -131 -79 26 20 -60

 EFFICIENCY RATIOS
NFL NFL NFL SHEZAN SHEZAN SHEZAN

Efficiency Ratios   2020 2019 2018 2020 2019 2018

No. of Days in Inventory Days 90 91 87 96.7 104.74 124.6

No. of Days in Receivables Days 16 17 21 7.82 6.47 5.65

No. of Days in Payables Days 24 26 21 28 23 20

Asset Turnover Times 2 2 2.1 1.53 1.6 2

Inventory Turnover Times 4 4 4.2 3.92 3.75 4

Receivables Turnover Times 23 21 17 30 26 23

Payables Turnover Times 15 14 18 18 14 20

 Investment / Market Ratios

NFL NFL NFL SHEZAN SHEZAN SHEZAN

Investment / Market Ratios   2020 2019 2018 2020 2019 2018

Earnings Per Share Rs. 9.9 8.7 6.8 -27 2.9 5

Price Earnings Ratio Times 25 21 47 7.97 15 20

Dividend Yield Ratio % 2 2.2 1.2 0.9 1.4 2.2

Cash Dividend Per Share Rs. 5 4 3.8 3 2.5 4
Stock Dividend % 25 20 20 18 15 20
Market Value Per Share at the end of Rs. 250 184 319 220 245 238
the year
 VERTICAL ANALYSIS

NATIONAL FOODS LIMITED

2020 2019 2018
 
INCOME STATEMENT % % %

Sales 100.00% 100.00% 100.00%

Cost of Sales 70.86% 71.20% 68.95%

Gross Profit 29.14% 28.80% 31.05%

NATIONAL FOODS LIMITED

2020 2019 2018

 
BALANCE SHEET % % %

Total Equity 42.26% 44.29% 90.53%

Current Assets 100.41% 116.87% 128.86%

Current Liabilities & Provisions 83.20% -109.93% 147.15%

 VERTICAL ANALYSIS
SHEZAN INTERNATIONAL LTD.

Regular (millions)   Common size (%)  

INCOME STATEMENT
2020 2019 2018 2020 2019 2018

Sales/Revenue 7,313,042 7,704,097 7,503,273 100% 100% 100%

COGS 6,213,833 6,172,758 5,405,841 85% 80% 72%

Gross Income 1,099,209 1,531,339 2,097,432 15% 20% 28%

Shezan International Ltd.

BALANCE SHEET Common size (%)

ASSETS 2020 2019 2018
Total current assets 56.40% 58.88% 60.7%
Total non-current 43.60% 41.12% 39.81%
assets
Current liabilities 51.81% 44.71% 44.21%
 Item not included in financial statement which is important to an investor for considering
whether to invest or not in whole foods are:

– 1. CSR is non-financial item and important to many investors for making an investment decision because it gives
assurance in quantity and qualitative aspects, it represents fact and trend of firm.
 
– 2. Goodwill: goodwill fair market value is not included in financial statement but it is important for the investor to
know the goodwill of whole food company because increase the company value, goodwill decide the business
expectation for the future benefit.
 
– 3. Market force: market force represents the technological change in which the company will decide future
investment and future benefits. It is important to investor to know market forces because it will decide the company
will be able or not able to earn in future the actions of buyers and sellers that cause the prices of goods and services
to change without being controlled by the government. the economic forces of supply and demand
The value of these commodities is determined by market forces.
 
 CONCLUSION

◦ After comparing all the financial statement of both companies, we have concluded that if we are making
decision to invest in any company we would like to invest on National Foods.
◦ If we compare both companies and look carefully, we easily concluded that current ratio of National
Food is more than Shezan we easily say that company has enough assets to cover their liabilities .
◦ they are earning more revenue by using their assets hence it has efficiency that they have more sale
which decrease inventory and decrease their cost .
THANKYOU