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TABLE OF CONTENTS

Section 1 : Company Profile

Mission and Vision Statement.....6

Success Story.......6

Statement of Ethics and Business Practices.7

Nature of Business...8

Future Prospects...8

Section 2 : Financial Statement Analysis

Ratio Analysis......9

Time Series Analysis.10

Interpretation.........11

Graphical Representation........15

Cross Sectional....30

Interpretation.31

Section 3 : Financial Planning

Growth Variable.................34

Pro forma Income Statement..........35

Pro forma Balance sheet............................36

Common Size Balance Sheet.37

Common Size Income Statement...38

Trend Analysis...39

Section 4: Stock exchange Analysis

Table..................40

Interpretation..............................40

Section 5: SWOT Analysis

Strength of company as compared to market.............41

Weakness of company as compared to market..............41Opportunity of company as compared to market...............41

Threats of company as compared to market..............41

Section 6: Recommendations....42

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Acknowledgement

I am very thankful to almightyALLAHwho give me such power,knowledge and ability to accomplish my goals. Without his kindhelp I would not be able to prepare this report. I pay my humblethanks to myALLAHwho provided me opportunity to be herein Mohammad Ali Jinnah University.

I would like to thank the President and management of theuniversity for initiating such practical learning procedure. Thisallows the students to come through the business related workand problems occurring in the organizations.

I wish to pay special thanks to our honorable teacher Mr. Muhammad Saleem who gave me the opportunity to

prepare this report which is related to a very important field of ourlife Finance. This provides me confidence and enable me to provemyself.

April 10,2008

Mr. Muhammad SaleemLecturer of Introduction to Business FinanceMohammad Ali Jinnah University

Karachi

Respected Sir,

Following is the Term Report you had requested. The company which I have chosen is

Dawood Lawrencepur Limited which belongs to the textile sector of Pakistan.Thiscompany is popularly known for manufacturing high quality textile products.

All financial data used is authentic and real as on Dec 31, 2007. All issues that wererelevant to the topic have been covered in great detail. This report has proved to be a

great experience. For this, I would like to thank our course instructor Mr. MuhammadSaleem for providing me this opportunity, as well as his guidance in the light of his vast

experience.

For further details or queries about the report please feel free to contact.

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Sincerely,

MISSION AND VISION

STATEMENT

Dawood Lawrencepur Limited has been at the forefront in manufacturing high quality textile products for

more than half a century. Although the textile products in Pakistan are facing tough competition,

nevertheless we intend to strive for our corporate objectives.

To remain the pioneers in textile industry by producing quality products at competitive prices to the entire

satisfaction of our customers without compromising on our principles of ethics, integrity and professional

standards.

1. Maintain the reputation of a reliable manufacturer and supplier of high quality textile products through

technology and effective resource management while maintaining high ethical and professional standards.

2. Have sustainable growth in this era of competition in quality of products and its prices.

3. Achieve high returns on investment through a continuous process of improvement for the benefit of the

stakeholders.

4. Strive for excellence through commitment, integrity, honesty and teamwork.

5. Provide excellent working atmosphere and growth potential to talented professionals and develop long

term relationships with its employees.

6. Be a good corporate citizen.

SUCCESS STORY

Lawrencepur, the producer of premier worsted fabrics, is situated in North West Frontier Province (NWFP)

of Pakistan. Pakistan is situated at a crossroads of history

where cultural diversities of Central Asia, Greece and South Asia fuse into one another.

The mysterious beauty and power of the Indian Subcontinents resources attracted Aryans and Moguls fromCentral Asia to Alexander the Great from Macedon, Greece. They all entered through the Khyber Pass and

left their cultural impact in these areas.

A fabric piece woven around 3000 BC was unearthed from Taxila, which is a testimony to he skills and

craftsmanship of these areas. Lawrencepur fabrics area tribute to the aesthetic and creative spirit of these

people.

During the late 19th century these areas came under British rule. Sir John Lawrence, the military

commander of the frontier province established a military garrison, christened Lawrence, to protect British

India borders from fierce Afghans. Two years after independence from the British in 1947, this garrison

became the Lawrencepur Woolen and Textile Mills and became operational in 1954.

Lawrencepur, the largest and the most established worsted textile mills in Pakistan, is a fully integrated unit

with in house facilities to handle anything from raw wool to finished fabrics. Initially, Lawrencepur

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produced yarn for hand knotted carpets, blankets for the armed forces, woolen over coatings, tweed andworsted for the local consumer market. In 1960, however, Dawood Group took over the Mills and it was

incorporated as public limited company.

Lawrencepur mills consist of five units - Top making, Dying, Spinning, Weaving and Finishing. From 1949

to date with the mills have undergone evolutionary changes and now prestigious fabrics like

Wool/Cashmere, Wool/Silk, Super 100s, Super 70s, Cool wool, Wool/Cotton and other blends are being

produced , which are designed by a famous Italian designer.

STATEMENT OF ETHICS

AND

BUSINESS PRACTICES

Dawood Lawrencepur Limited exists on sound principles of development and growth. It makes no

compromises in any aspect of good business practices. The Company takes pride in adherence to its

principles and continues to serve its customers, stakeholders and society on the

Following guidelines:

1. The Company strongly believes in free and fair business practices and open competitive markets.

Developing any association within the segment, industry or with competitors to distort the pricing and

availability is contradictory to our business code of conduct.

2. The Company's financial policies for conducting business are transparency, integrity and following the

principles of accounting and finance as approved by regulations and contemporary accounting codes.

3. The Company believes in uprightness of performance and expects it to be a fundamental responsibility of

our employees to act in Company's best interest while holding confidential information. We expect ouremployees neither to solicit internal information from others nor to disclose Company's figures, data or any

material information to any unauthorized person/body.

4. The Company believes in encouraging him individuals respect and growth. Our employment and HR

policies develop individuals without any discrimination on the basis of race, religion, gender or any other

factor.

5. The Company as a responsible corporate citizen strongly adheres to the principles of corporate

governance and complies with regulatory obligations enforced by regulatory bodies for improving

corporate performance.

6. The Company anticipates integrity and honesty of employees in doing business for the Company. Any

unfair or corrupt practices either to solicit business for the Company or for personal gains of the employeeis fundamentally inconsistent with business codes of the Company.

7. The Company believes in community development without political affiliations with any person or group

of persons working for gains. We contribute our resources for a better environment with an unprejudiced

approach. Within our mills our policies gear towards unbiased and impartial employees betterment.

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NATURE OF BUSINESS

Dawood Lawrencepur Limited Formerly known as Dawood Cotton Mills Limited. The Company's

principal activity is to manufacture and sell yarn and fabrics made from natural and man-made fibers and

blends thereof. The operations of the Company are textile and polyester staple fiber. The Company is anintegrated company of the Dawood Group.

Dawood Lawrencepur mainly consists of units engaged in wool scouring, synthetic fiber textile

manufacturing, cotton textile manufacturing, wool textile manufacturing and textile finishing. Wool

scouring refers to scouring, carbonizing, carding, combing of wool, or manufacturing unsung wool tops.

Synthetic fiber textile manufacturing refers to the manufacture of continuous fiber filaments, fiber staple or

yarns, tire cord yarn, fabric or woven fabrics from those yarns, mixed yarns predominantly of manufacturedfibers or household textile goods from synthetic fabrics woven at the same units. It also includes the

manufacturing of elastic or electrometric yarns, threads or fabrics. Cotton textile manufacturing refers tothe manufacture of yarns or woven fabrics, wholly or predominantly of cotton, flax or silk, sewing threads

or household textile goods from fabrics wholly or predominantly of cotton, flax or silk, woven at the same

units. Wool textile manufacturing refers to the manufacture of yarns coloring or woven fabrics wholly or

predominantly of wool, or household textile goods from fabrics woven at the same units. Textile finishing

refers to bleaching, dyeing, printing, pleating or other finishing of yarns, threads, fabrics or other textiles on

a fee or commission basis using client supplied materials or materials which are purchased or transferred in

from other units.

Dawood Lawrencepur constantly revamping and reworking our systems, modes and methods to better

ourselves. Often, this requires a great deal of introspection and self-analysis, which in turn, fosters an

environment that fuels a great deal of brainstorming.

FUTURE PROSPECTS

As explained above, the cotton textile operations having become unviable, your Board is of the considered

view that their continuation will result in a further erosion of stakeholder value. In order to achieve

sustainable and profitable business growth over the coming years, the Board recommends that your

company should pursue opportunities in the energy field. Necessary recommendations in this regard arebeing made to the shareholders for their consideration and approval.

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RATIO ANALYSIS

Highlights

Particulars Formulas Units 2007

A. Liquidity

Current Ratio Current Assets / Current Liabilities Ratio 2.679

Quick Ratio Quick Assets / Current Liabilities Ratio 0.782

B. Profitability

Gross Profit Margin Gross profit / Net sale % 4.985

Operating profit / loss Margin Operating profit / Net sale % -3.197Net Profit Margin Net profit / Net sale % 13.012

Return On Assets Net Profit / Total Assets % 4.224

Return On Equity Net Profit / Total S H Equity % 4.741

C. Financial Leverage

Debt to total assets ratio Total Debt / Total Assets % 10.88

Debt to equity ratio Total Debt / Total S H Equities % 12.22

Interest coverage ratio EBIT / Interest Expenses % 6.56

D. Activity

Receivable turnover Net Sale / Account Receivable Times 6.632

Collection Period 360 / Receivable turnover Days 54

Payable Turnover Accrual Purchases / Account Payable Times 9.761

Payment Period 360 / Payable Turnover Days 37

Inventory Turnover CGS / Inventory Times 3.172

Inventory Turnover days 360 / Inventory Turnover Days 114

Operating Cycle Collection Period + Inventory Turnover days Days 168

Cash Cycle Operating Cycle - Payment Period Days 131

Total assets turnover Net Sale / Total Assets Ratio 0.324

E. Market

Earning per share Net Income / No. of shares outstanding Rs. 3.74

Price earning ratio Market price per share / Earning per share % 21.925

Book value per share Comm. S H Equity / No. of common stock issued Rs. 78.89

Market to book value Market Price per share / Book Value per share Rs. 1.038

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TIME SERIES ANALYSISHighlights

Particulars Units 2004 2005 2006 2007

A. Liquidity

Current Ratio Ratio 2.043 1.762 1.922 2.679

Quick Ratio Ratio 0.509 0.399 0.516 0.782

B. Profitability

Gross Profit Margin % 9.049 10.432 5.384 4.985

Operating profit / loss Margin % 1.272 1.985 -1.935 -3.197

Net Profit Margin % 9.697 39.869 12.224 13.012

Return On Assets % 3.507 10.092 3.284 4.224

Return On Equity % 11.097 25.698 12.124 4.741

C. Financial Leverage

Debt to total assets ratio % 23.501 22.448 12.694 10.88

Debt to equity ratio % 74.372 57.159 46.867 12.22

Interest coverage ratio % 0.015 0.855 -3.460 6.56

D. Activity

Receivable turnover Times 5.500 4.277 5.683 6.632

Collection Period Days 65 84 63 54

Payable Turnover Times 25.789 22.264 24.893 9.761

Payment Period Days 14 16 14 37

Inventory Turnover Times 19.290 11.864 16.954 3.172

Inventory Turnover days Days 19 30 21 114

Operating Cycle Days 84 115 85 168

Cash Cycle Days 70 98 70 131

Total assets turnover Ratio 0.362 0.253 0.269 0.324

E. Market

Earning per share Rs. 4.453 13.878 5.897 3.74

Price earning ratio % 19.314 5.116 13.041 21.925

Book value per share Rs. 40.125 54.003 48.640 78.89

Market to book value Rs. 2.143 1.315 1.581 1.038

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TIME SERIES ANALYSISInterpretations

A. Liquidity

1. Current Ratio

Current Ratio measures a firms ability to meet its short term obligations.

Current ratio measures a firms ability to meet its short term obligation or

commitment. Dawood Lawrencepur Limited has current assets 2.043 times in

2004, 1.762 times in 2005, 1.922 times in 2006, and 2.679 in 2007, If we

compare 2006 with 2005, the ratio of 2006 is more then 2005 and 2007 ismore then 2006 It means that company is in good position.

2. Quick Ratio

Quick Ratio measures a firms ability to meet its short term obligations.

Quick ratio means firms ability to meet its short term obligation or

commitment. Dawood Lawrencepur Limited has quick assets 0.509 times in

2004, 0.399 times in 2005, 0.516 times in 2006, 0.782 in 2007. If we compare2006 with 2005 quick ratio of 2006 is more then 2005 and 2007 in more then

2006 which mean that company is in good position.

B. Profitability

1. Gross Profit Margin

It show percentage in gross profit based on its net sales. Dawood

Lawrencepur Limited percentage change in gross profit is 9.049 in 2004,10.432 IN 2005, and 5.384 in 2006. 4.985 in 2007 if we compare the ratio of

2006 with 2005, 2006 in less and 2007 is more less which means that

company is not in good position.

2. Operating Profit Margin

It indicates percentage change of operating profit based on net sale. DawoodLawrencepur Limited percentage change of operating is 1.272 in 2004,

1.985 in 2005, and -1.935 in 2006. -3.197 in 2007. If we compare 2005 with

2006 the ratio of 2006 is less then 2005 and 2007 in more less then 2006 itmeans that company is in worse position.

3. Net Profit margin

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It shows percentage change of net profit based on net sale. DawoodLawrencepur Limited percentage change is 9.697 in 2004, 39.869 in 2005,

and -0.940 2006. 13.012 in 2007 If we compare 2005 with 2006 the ratio of

2006 is very less then 2005 which is worse but in 2007 is a bit greater whichis good.

.

4. Return on Assets or Investments

It shows the relation between the total assets and net sales, it is a percentageof net profit based on total assets.Return on assets is an indicator of howprofitable a company is relative to its total assets. Return on assets gives an

idea as to how efficient management is at using its assets to generateearnings.

If we compare the results of the years 2005 & 2006 the comparison showsthat the firms return on assets in the year 2006 is more than the return on

assets of the firm in the year 2005, if we compare the results of the fiscal

years 2006 & 2007 the firms return on assets in 2007 is less than the returnon assets of the firm in the year 2006.

5. Return On Equity

It indicates overall record of management of in producing profit. Dawood

Lawrencepur Limited net profit in 2004 is 11.097, 25.698 in 2005, and

-0.932 in 2006. 4.741 in 2007 if we compare 2005 and 2006 the ratio ismuch less in 2006 but bit higher n 2007 company is in good position.

C. Financial Leverage

1. Debt to total Assets

Debt ratio measures a firms ability to meet its long term obligation or

commitment. Dawood Lawrencepur Limited has total liabilities 23.501times in 2004, 22.448 times in 2005, 12.694 times in 2006, 10.88In 2007. If

we compare the results of 2006 with the 2005, the ratio of 2006 is less then

2005, and 2007 is more less then 2006 it means the company is in good

position.

2. Debt to Equity

Debt ratio measures a firms ability to meet its long term obligation or

commitment. Dawood Lawrencepur Limited has total liabilities 74.372

times in 2004, 57.159 times in 2005, and 46.867 times in 2006, 12.22 In2007 if we compare the results of 2006 with the 2005, the ratio of 2006 is

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less then 2005, 2007 is more less then 2006 it means the company is in goodposition.

3. Interest coverage ratio

It indicates that how many times a company can pay interest expense with

its operating profit. Dawood Lawrencepur Limited can pay its interest

expense 0.015 times in 2004, 0.855 times in 2005, and -3.460 times in 2006,6.56 in 2007

If we compare the 2006 with 2005, company can pay less then 2005, If we

compare the 2006 with 2007 company can pay more then 2006 which meansthat company is in good position.

D.Activity

1. Receivable turnover

It shows that how many times a company can convert its a/c receivable in tocash. Dawood Lawrencepur Limited can convert its a/c receivable 5.50

times in 2004, 4.277 times in 2005, and 5.683 times in 2006, 6.632 in2007.If we compare 2006 with 2005 the ratio of 2006 is greater then 2005

and 2007 in more greater then 200 it means that company is not in good

position.

2. Collection Period

It shows that how many times a company can convert its a/c receivable in to

cash in terms of days. Dawood Lawrencepur Limited can convert its a/c

receivable 65 days in 2004, 84 days in 2005, and 63 days in 2006, 54 days in2007 If we compare 2006 with 2005 the company takes less time in 2006and in 2007 more less then 2006 It means that company is in good position.

3. Inventory Turnover

It indicates that how many times a company can convert its inventory in tocash or sales. Dawood Lawrencepur Limited converts its inventory 19.290

times in 2004, 11.864 times in 2005, and 16.954 times in 2006, 3.172Days

in 2007 in to cash or sale. If we compare 2006 with 2005 the converts itsinventory in to cash more times in 2006,and much less in 2007, which

means that company, is not in good condition.

4. Total assets turnover

It shows that how many times a firm generates its sales by its total assets.Dawood Lawrencepur Limited has generated 0.362 times in 2004, 0.253

time in 2005, and 0.269 time in 2006, 0.324 times in 2007 if we compare

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2006 with 2005. The ratio of 2006 and 2005 are almost same, and more in2007 which means that company is good position.

E.Market

1. Earning per share

Its indicates that how many earning is generated by each share. DawoodLawrencepur Limited ratio in 2004 is 4.453, 13.878 in 2005, and 5.9 in 2006

per share, and 3.74 in 2007 The ratio in 2006 is lesser as compare to 2005

and 2007 in more lesser then 2006 Its means that company is not in goodposition.

2. Price earning ratio

Price earning ration indicates the relation between market price per shareand earning per share. Dawood Lawrencepur Limited price earning ratio in

2004 is 19.314, 5.116 in 2005, and 13.03 in 2006, 21.925 in 2007 if wecompare 2006 with 2005 the ratio of 2006 is greater then 2005, and 2007 ismore greater its means that company is in good condition.

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TIME SERIES ANALYSIS

Graphical Representation

A. Liquidity

B. Profitability

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C. Financial Leverage

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D. Activity

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E. Market

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CROSS SECTIONALAND COMPETITIOR ANALYSIS

Highlights

ParticularsUnit

s

IndustryAverage

s 2006 2007

A. Liquidity

Current Ratio Ratio 1.3 1.922 2.679

Quick Ratio Ratio 0.59 0.516 0.782

B. Profitability

Gross Profit Margin % 11.24 5.384 4.985Operating profit / loss Margin % 6.76 -1.935 -3.197

Net Profit Margin % 3.47 12.224 13.012

Return On Assets or Investments % 1.17 3.284 4.224

Return On Equity % 2.05 12.124 4.741

C. Financial Leverage

Debt to total assets ratio % 54.13 12.694 10.88

Debt to equity ratio % 154.4 46.867 12.22

Interest coverage ratio % 1.74 -3.46 6.56

D. Activity

Receivable turnover Times 10.15 5.683 6.632

Collection Period Days 61.5 63 54

Payable Turnover Times 12.45 24.893 9.761

Payment Period Days 63.83 14 37

Inventory Turnover Times 3.29 16.954 3.172

Inventory Turnover days Days 122 21 114

Operating Cycle Days 183.25 85 168

Cash Cycle Days 129.33 70 131

Total assets turnover Ratio 0.269 0.324

E. Market

Earning per share Rs. 11.41 5.897 3.74

Price earning ratio % 33.835 13.041 21.925

Market to book value Rs. 1.14 1.581 1.038

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CROSS SECTIONALAND COMPETITIOR ANALYSIS

Interpretations

A. Liquidity

1.Current Ratio

Ratio measures firms ability to meet its short term obligation and commitments. . Current assets2.043 times in 2004, 1.762 times in 2005, and 1.922 times in 2006, 2.679 in 2007of its currentliabilities. If we compare company with industry the industry ration is less then the company itsmeans the company is in good position.

2.Quick Ratio

Quick ratio measures firms ability to meet its long term obligation.Dawood Lawrencepur Limited has quick assets 0.509 times of its current liabilities in 2004, 0.399

times in 2005, and 0.516 times in 2006. if we compare company with industry the industry ratio isgreater then company which shows that company is not in a good position.

B.Profitability

3. Gross Profit Margin

It shows that the percentage change of gross profit margin based on its net sales. DawoodLawrencepur Limited gross profit margin is 4.985 based on its net sales. If we compare it with theindustrys gross profit margin (30%), then it is greater then the company. It means that companyis in worst position.

4. Operating Profit Margin

It shows that percentage of operating profit based on its net sales.Dawood Lawrencepur Limited operating profit margin is -3.197 based on its net sales. If wecompare with the industry, the industrys operating profit margin is greater then company. Itmeans that company is in worst condition.

5. Net Profit margin

It shows that percentage change of net profit based on its net sales. Dawood LawrencepurLimited net profit margin is 13.012 If we compare with the industry, the companys net profitmargin is greater then the company, which shows that company, is in good position.

6. Return on Assets or Investments

Return on total assets ratio indicates record of management in producing profit. DawoodLawrencepur Limited return on total assets ratio is 4.224 of its share holder equity. If we compareit with the industry, the industrys ratio is less then the company. It shows that company is in goodposition.

7. Return On Equity

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Return on equity ratio indicates record of management in producing profit. Dawood LawrencepurLimited return on equity ratio is 4.741 of its share holder equity. If we compare it with the industry,the industrys ratio is less then the company. It shows that company is in good position.

C.Financial Leverage

8. Debt to total Assets

Debt ratio measures a firms ability to meet its long term obligation or commitment. DawoodLawrencepur Limited has total liabilities 23.501 times in 2004, 22.448 times in 2005, 12.694 timesin 2006, 10.88 In 2007. If we compare the results of 2006 with the 2005, the ratio of 2006 is lessthen 2005, and 2007 is more less then 2006 it means the company is in good position.

9. Debt to Equity

Debt ratio measures a firms ability to meet its long term obligation or commitment. DawoodLawrencepur Limited has total liabilities 74.372 times in 2004, 57.159 times in 2005, and 46.867times in 2006, 12.22 In 2007 if we compare the results of 2006 with the 2005, the ratio of 2006 isless then 2005, 2007 is more less then 2006 it means the company is in good position.

10. Interest coverage ratio

It indicates that how many times a company can pay its interest expense with its operating profit.Dawood Lawrencepur Limited can pay 6.56 times its interest expense with its operating profit. Ifwe compare company results with the industry ratio, it is greater then the company. It means thatcompany is not in a good position.

D.Activity

11. Receivable turnover

It indicates that how many times a company can convert its a/C receivable in to cash. DawoodLawrencepur Limited converts 6.632 times its a/C receivable in to cash. If we compare companyresults with the industry, the industry ratio is les then company. It means that company is in goodposition.

12. Collection Period

It indicates that how many times in terms of days a company can convert its A/C receivable in tocash. Dawood Lawrencepur Limited converts its receivable in to cash in 54 days. If we compare

company results with the industry, the industry ratio is greater then the company. It means thatcompany is in good position.

13. Inventory Turnover

It indicates that how many times a company converts it inventory in to cash or sales. DawoodLawrencepur Limited converts 3.172 times its inventory in to cash or sales. If we compare

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company results with the industry ratio, which is greater then the company. It means thatcompany is in worst position.

14. Total assets turnover

It indicates that how many times sales are generated by total assets. Dawood Lawrencepur

Limited has generated sales revenue 0.324 time by total assets. If we compare company resultswith the industry ratio, then it is not a good sign for the company. Because industry ratio is greaterthen company.

E.Market

15. Earning per share

Its indicates that how many earning is generated by each share. Dawood Lawrencepur Limitedratio in 2004 is 4.453, 13.878 in 2005, and 5.9 in 2006 per share, and 3.74 in 2007 The ratio in2006 is lesser as compare to 2005 and 2007 in more lesser then 2006 Its means that company isnot in good position.

FINANCIAL PLANNING

Growth Variable

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Sustainable Growth Rate:

Dividend Payout Ratio = Dividend Paid

Net Profit after Tax

DPR = 0.50

Retention Ratio = 1 dividend payout ratio

Retention Ratio = 1- 0.50Retention Ratio = 0.50

Sustainable Growth Rate =

Return On Equity x Retention Ratio x 100

[1-(Return On Equity x Retention Ratio)]

SGR = 0.0474 x 0.50 x 100

[1- (0.0474 x 0.50)]

SGR = 2.436%

FINANCIAL PLANNING

Pro Forma Income Statement

For 2008

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Sales 1251073133

Less: Cost of goods sold(1188644584

)

Gross Profit 62428549Less: Operating Expenses (102374063)

Operating Profit (39945514)

Add: Other income 60728029Less: Financial and other charges (591740)Add: Share of profit from associate 228903986

Profit Before Taxation 249094761Less: Taxation (5927495)

Profit After Taxation 243167266

FINANCIAL PLANNINGPro Forma Balance Sheet

For 2008

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ASSETS

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Net Fixed assets 543773450

Long Term Investments206225174

2Long Term Deposits 21329571Current Assets 827235811Assets of disposal group 385875389

Extra Financing Needed 50577560

Total Assets389104352

3

SHARE CAPITAL AND RESERVES

Share Capital335238128

8Retain Earnings 121583633

LIABLITIES

Non Current LiabilitiesLiabilities against assets subject to finance lease 23520113Deferred Liabilities 82735535

Current Liabilities 310822954

TOTAL CONTINGENCIES AND COMMITMENTS389104352

3

Common Size Balance SheetDawood Lawrencepur Limited

Regular Years

Commonsize (in

%)

2007 2006 2007 200

Non Current Assets

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Fixed Assets: %

Property, plant and equipment 543766550 801001492 14.45 16

Intangible asset 6900 6900 0.00018 0.0

543773450 801008392 14.45 16.7

Long Term Investments 2013209948 2567083797 53.51 53.

Long Term Deposits 20822339 27391294 0.55 0.5

Current Assets Stores and spares 94339565 103880512 2.5 2.1

Stock-in-trade 365792225 723624248 9.72 15.

Trade debtors 184145547 327523203 4.89 6.8

Short term investments 5252445 5292540 0.13 0.1

Loans and advances 3924264 9240159 0.1 0.1

Deposits and other receivables 111541740 163590453 2.96 3.4

Cash and bank balances 42567777 34441439 1.13 0.7

Total Assets 807563563 1367592554 21.43 28.

100% 100

Share Capital and Reserves

Share Capital

Authorized;

55000,000 (2006: 55000,000)

Ordinary shares of Rs. 10/each 550000000 550000000

% %

Issued, subscribed and paid up 424418680 385835160 11.28 8.

Reserves 3927962608 3497693147 77.82 73.

3352381288 3883528307 89.1 81.Non Current Liabilities:

Liabilities against assets subject to financelease 23520113 45747722 0.62 0.9

Deferred Liabilities 82735535 122464970 2.19 2.5

Current Liabilities: Trade and other payable 124618976 177804675 3.31 3.7

Short term bank finances-secured 135253162 466819984 3.59 9.

Current portion of lease liabilities 22614052 38728065 0.6 0.8

Interest/markup on running finance 5945176 13719528 0.15 0.2

Provision for taxation 12958615 14262786 0.34 0.2

Liabilities directly associated with the assetsclassified as held for sale 301389981 711335038 7.99 14.

Contingencies and commitments 2041385 0.05

3762068302 4763076037 100% 100

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Other charges -50000 -12482869 0.40054894 100%

Operating loss -39055995 -48502120 80.52430492 100%

Financial charges -35115712 -75843080 46.30048252 100%

Other income 59283874 51105065 116.00391077 100%

Share of profit from associate 223460489 439155000 50.88419556 100%

Profit before tax 247628651 414416985 59.75349949 100%

Taxation -12958614 -14262786 90.85612026 100%

-Current -51378489 -124125000 41.39253897 100%

-Share of taxation from associates 14704844

-Deffered -49632259 -138387786 35.86462392 100%

Profit after tax from continuingoperations 158940397 227527079 69.85559596 100%

Discontinuing Operations

Loss after tax for the year fromdiscontinued operation

-74390570

Profit for the year 84549827 227527079 37.16033598 100%

STOCK EXCHANGE ANALYSIS

For the month of December 2007

Table

DATEOPENRATE

HIGHRATE

LOWRATE

CLOSINGRATE

TURNOVER

December 03, 2007 89.7 94.15 91.5 94.15 240,400

December 04, 2007 94.15 96.9 92.1 92.1 77,400

December 05, 2007 92.1 95.95 92.05 94.8 91,000

December 06, 2007 94.8 95 92 92.85 53,000

December 07, 2007 92.85 93.9 90.6 91.15 19,600December 10, 2007 91.15 95.7 91.5 93.6 122,500

December 11, 2007 93.6 95.5 92 92 56,100

December 12, 2007 92 93.9 91 91 48,600

December 13, 2007 91 95 91.95 93.4 64,300

December 14, 2007 93.4 94.95 92.5 93.75 17,400

December 17, 2007 93.75 94.9 93 93 6,900

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December 18, 2007 93 93.9 92 92.15 5,800

December 19, 2007 92.15 93.2 92 92 5,500

December 24, 2007 92 93.6 91.85 92 24,900

December 26, 2007 92 96.6 94.5 96.6 52,100

December 27, 2007 96.6 101.4 101.4 101.4 8,500

December 31, 2007 101.4 102.85 96.35 98.1 182,700

Total Turnover 1,076,700

STOCK EXCHANGE ANALYSISFor the month of December 2007

Interpretation

In the beginning of December 2007 company opening rates are lower then end of the

month. Compression of the opening and closing rate of December 2007 identify thatclosing rates are higher then opening rates. In the beginning of December 2007

company closing rates are lower then end of the month. In the beginning, middle and

end of the month turn over is too high.

SWOT ANALYSIS

Strengths:

Companys ability to meet its cash and short term obligations coming due

within the next year is very strong.

Net profit of the firm is high, as the other income of the company is too high.

Company management is efficient at using its assets to generate earnings.

Manager is using debt leverage for advantages.

Company ability to meet its long term obligations is good; firm is able to

full fill its current obligation.

Weakness:

Funds available to cover unallocated fixed costs are very low

Firm bear low profit margin that can be compensated for with a higher asset

turnover There is some financial risk associated with the firm.

There is lack of effective inventory management.

Opportunity:

Firm forecasted sale and assets for 2008 increased, due to this increment in total

forecasted asset for 2008 there is an Opportunity for the firm to increase its sale.

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Threats:

As forecasted sale increases, the companys Cost of good sold also increases and

if company wants to increase the profit margin so it has to reduce its cost or mayincrease product market price.

RECOMENDATIONS