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ACKNOWLEDGEMENT
I WOULD START THIS REPORT BY SAYING THAT ALLAH ALMIGHTY HAS
GRACED ME WITH ENOUGH ENERGY TO WORK IN THIS PERIOD AND
COMPLETE THIS REPORT.
FIRST OF ALL I WOULD LIKE TO ACKNOWLEDGE OUT PARENTS WHO
ENCOURAGED ME TO-DO M.COM.
THEIR PRAYERS ENABLE ME TO COMPLETE THIS REPORT. I WOULD
REALLY LIKE TO ACKNOWLEDGE OUR TEACHER MR.FARUKH
NAVEED, WHO PROVIDED ME OPPORTUNITY TO WORK ON THIS
REPORT. HE REALLY ENCOURAGES ME TO COMPLETE THIS REPORT.HE PROVIDED US HELPFUL KNOWLEDGE REGARDING THIS REPORT
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INDUSTORY INTRODUCTION:
The automotive industry rightly prides itself on being recognized as the mother of allindustries.
In its folds it carries many different kinds of vehicles to provide mobility to people and goods. While
they may appear to be simple machines, their design andmanufacturing have much deeper roots in all
the known technologies. In-depthknowledge and skillful application of mechanical, electrical,
electronics, chemical andhost of other technologies culminate in achievement and improvement of
the manufacturing base of a country, by focusing on a single product the automobile. Thisthen
provides an opportunity to produce a large number of goods and services for consumption of the
entire community. Use of the word mother for automotive industryis therefore the most appropriate
description to define the nature and importance of theindustry.In recent years, wehave witnessed that
the industrialization of South East Asian countries greatly depend on the development of their
automotive industry. Similarly, automotive industry acted as a catalyst in the overall growth of the
industry in Japan and Korea and the consequent wellbeing of their citizens
COMPANY INTRODUCTION:
The company was incorporated in Pakistan as a public limited company in December 1989 and
started
Commercial production in May 1993. The shares of company are quoted on the stock exchanges ofPakistan i.e. Karachi, Lahore and Islamabad stock exchanges. The stock code for dealer in equity
shares of Indus Motor Company Limited at KSE, LSE and ISE is INDU. Toyota Motor Corporation
and Toyota Tsusho Corporation have 25 % stake in the company equity. The majority shareholder is
the House of Habib. Indus Motor Company (IMC) is a joint venture between the House of Habib,
Toyota Motor Corporation Japan (TMC), and Toyota Tsusho Corporation Japan (TTC) for
assembling, progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 01,
1990.IMC is engaged in sole distributorship of Toyota and Daihatsu Motor Company Ltd vehicles in
Pakistan through its dealership network. IMC's production facilities are located at Port Bin Qasim
Industrial Zone near Karachi in an area measuring over 105 acres. Indus Motor Companys plant is
the only manufacturing site in the world where both Toyota and Daihatsu brands are being
manufactured. Heavy investment was made to build its production facilities based on state of art
technologies. To ensure highest level of productivity world renowned Toyota Production Systems
areimplemented.IMC's Product line includes 6 variants of the newly introduced Toyota Corolla,
Toyota Hilux Single Cabin 4x2 and 4 versions of Daihatsu Cuore. We also have a wide range of
imported vehicles.
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VISION STATEMENT:
TO BE THE MOST RESPECTED AND SUCCESSFUL ENTERPRISE, DELIGHTING
CUSTOMERS WITH A WIDE RANGE OF PRODUCTS AND SOLUTIONS IN THE
AUTOMOBILE INDUSTRY WITH THE BEST PEOPLE AND THE BEST TECHNOLOGY".
MISSION STATEMENT:
TO PROVIDE SAFE & SOUND JOURNEY. TOYOTA IS DEVELOPING VARIOUS NEW
TECHNOLOGIES FROM THE PERSPECTIVE OF ENERGY SAVING AND DIVERSIFYING
ENERGY SOURCES. ENVIRONMENT HAS BEEN FIRST AND MOST IMPORTANT ISSUE IN
PRIORITIES OF TOYOTA AND WORKING TOWARD CREATING A PROSPEROUS SOCIETY
AND CLEAN WORLD.
History:
Indus Motor Company (IMC) is a joint venture between the House of Habib , Toyota Motor
Corporation Japan (TMC) , and Toyota Tsusho Corporation Japan (TTC) for assembling, progressive
manufacturing and marketing of Toyota vehicles in Pakistan since July 01, 1990. IMC is engaged in
sole distributorship of Toyota and Daihatsu Motor Company Ltd. vehicles in Pakistan through its
dealership network.
The company was incorporated in Pakistan as a public limited company in December 1989 and
started commercial production in May 1993. The shares of company are quoted on the stock
exchanges of Pakistan. Toyota Motor Corporation and Toyota Tsusho Corporation have 25 % stake
in the company equity. The majority shareholder is the House of Habib. IMC's production facilities
are located at Port Bin Qasim Industrial Zone near Karachi in an area measuring over 105 acres.
Indus Motor company's plant is the only manufacturing site in the world where both Toyota and
Daihatsu brands are being manufactured. Heavy investment was made to build its production
facilities based on state of art technologies. To ensure highest level of productivity world-renowned
Toyota Production Systems are implemented. IMC's Product line includes 6 variants of the newly
introduced Toyota Corolla, Toyota Hilux Single Cabin 4x2 and 4 versions of Daihatsu Cuore. We
also have a wide range of imported vehicle
COMPANY INFORMATION:
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COMPANY REGISTRATION NUMBER 0020742
NATIONAL TAX NUMBER (NTN) 0676546-7
STATUS OF THE COMPANY
Listed on
Karachi Stock Exchange (Guarantee) Ltd
Lahore Stock Exchange (Guarantee) Ltd
Islamabad Stock Exchange (Guarantee) Ltd
BANKERS
ari Bank Limited
k Alfalah Limited
clays Bank PLC Pakistan
k Al-Habib Limited
bank N.A.
ib Bank Limited
ib Metropolitan Bank Limited
BC Bank Middle East Limited
B Bank Limitedonal Bank of Pakistan
Bank Limited
eri Bank Limited
ndard Chartered Bank (Pakistan) Limited
Bank of Tokyo-Mitsubishi UFJ, Limited
ted Bank Limited
AUDITORS
. Ferguson & Co.rtered Accountants
e Life Building No. 1-C,
Chundrigar Road,
achi.
LEGAL ADVISOR
K. Brohi & Company
nsoor Ahmed Khan & Co.
Indus Motor Financial Analysis The Islamia University Of Bahawalpur
http://www.kse.com.pk/http://www.lse.com.pk/http://www.isb.com.pk/http://www.kse.com.pk/http://www.lse.com.pk/http://www.isb.com.pk/7/30/2019 Indus Report.doc 32
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hmud & Co.
eed & Sayeed Co.
SHARE REGISTRAR
ble Computer Services (Pvt.) Ltd.,t Floor, House of Habib Building,
diqsons Tower), 3 Jinnah Cooperative Housing Society,
n Shahrah-e-Faisal
achi-75350.
BX: (92-21) 34325482-87, Fax (92-21) 34325442
ail: [email protected]
ADDRESS OF HEAD OFFICE / REGISTERED OFFICE / FACTORY
No. N.W.Z/1/P-1, Port Qasim Authority,
Qasim, Karachi.
ne: (PABX) (92-21) 34720041-48
AN) (92-21) 111-TOYOTA (869-682)
: (92-21) 34720056
ail: [email protected]
MEMBERSHIPS
istan Automotive Manufacturers Association (PAMA)
Overseas Investors Chamber of Commerce & Industry (OICCI)
achi Chamber of Commerce & Industry (KCCI)
istan Business Council (PBC)
ASSOCIATED COMPANIES
ota Motor Corporation, Japan
ota Tsusho Corporation, Japan
l Limited
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ib Insurance Co. Limited
bbir Tiles & Ceramics Ltd.
kro-Habib Pakistan Ltd.
ib Metropolitan Bank Limite
Board of Directors
ALI S. HABIB
Parvez Ghias
Mr. Raza Ansari
FARHAD ZULFICAR
Mr. MohamedAli R. Habib
Mr. Koji Hyodo
Mr. Mitoshi Okimoto
HIROYUKI NIWA
TAKAHIRO IWASE
MANAGEMENT TEAM:
Mr. Ali S. Habib
Chairman
Mr. K Hyodo
Vice Chairman
Mr. Parvez Ghias
Chief Executive Officer
INFORMATION TECHNOLOGY
Mr. Adnan Qazi
Chief Information Officer
FINANCE
Mr. Muhammad Faisal
Chief Financial Officer
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Mr. Muhammad Faisal
Company Secretary
HUMAN RESOURCE
Mr. Salim Azhar
Director
LOGISTICS, ADMINISTRATION & COMMERCIAL
Mr. Salim Azhar
Director
MANUFACTURING
Mr. M. Okimoto
Director
SALES & MARKETING
Mr. Raza Ansari
Director
INTERNAL AUDIT
Mr. Ahmed Waseem Khan
Chief of Internal Audit
CUSTOMER RELATIONS
Mr. Adnan Qazi
Head of Customer Relat
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PRODUCTS
Corolla
COURE
HILUX
LAND CRUISER PRADO
Current Ratio:
Current Asset / Current Liabilities Ratio
2007 13,560,329/7,410,926
1.82
2008 9,664,784/3,779,631
2.56
2009 16,715,319/9,884,850
1.69
2010 23791253/14224866
1.67
2011 22587737/12260958
1.84
Comments: As we know Current ratio determines short-term debt paying abilitygenerally the higher of current ratio the more liquid the firm is considered to be.
As there is a fluctuation in the current ratio of Indus motor that indicate the
company having fluctuation in short term debt paying ability.
CASH RATIO:
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Current Asset - Current Liabilities Rupees
2007 13,560,329 - 7,410,926
6149403
2008 9,664,784 - 3,779,631
5885153
2009 16,715,319 - 9,884,850
6830469
2010 23791253 - 14224866
9566387
2011 22587737 - 12260958
10326779
Sales To Working Capital:
Net Sales / Working Capital Times
2007 39061226/6149403
6.35
008 41423843/5885153 7.03
2009 37,864,604/6830469
5.54
2010 60,093,139/9566387
6.28
2011 61702677/10326779
5.95
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Debt Ratio:
Total Liability / Total Asset Times
2007 7,410,926/15,665,050
0.47
2008 4,311,769/13,748,109
0.31
2009 10,388,550/20,685,523
0.50
2010 14550663/27138278
0.54
2011 12714970/26834618
0.47
Comments: The debt ratio indicates the percentages of assets financed by
creditors, and it help to determines how well creditors are protected in case of
insolvency we know that lower this ratio better the company position ,this ratio
is improving each year it means that the lower the proportion of assets that
have been financed by creditors. But there is a decrease in 2011 as compared to
2010.
Inventory turnover :
CGS / Inventory Times
2007 34,620,632/2,859,951
12.10
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2008 37,575,356/2,637,629
14.24
2009 35,540,418/4,088,858
8.69
2010 55236625/5198367
10.63
2011 57613542/5690052
10.13
Comments: Inventory Turnover ratio depicts how quickly the company is able to
sell off its inventory. There is decrease in the ratio which indicates the deficiency
of the company.
Inventory turnover in days:
365 / Inventory Turnover Days
2007 365/12.10 30.16
2008 365/14.24 25.63
2009 365/8.6 9
42.00
2010 365/10.63 34.33
2011 365/10.13 36.03
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Total asset Turnover Ratio:
Sales / Total Asset Times
2007 39,061,226/15,665,0502.49
2008 41,423,843/13,748,109
3.01
2009 37,864,604/20,685,523
1.83
2010 60,093,139/26834618 2.23
2011 61702677/27138278 2.27
Comments: This ratio measure the activity of assets and ability of firm to
generate sales through the use of assets .As we know that it is beneficial that
this ratio would be higher that show our assets efficiency. There is variation in
each year. This is due to the fact that the company has been investing in its
fixed assets, mainly in plant, machinery and infrastructure up gradation.
Total asset Turnover in days:
365 / Total Asset Turnover Days
2007 365/2.49 146.58
2008 365/3.01 121.26
2009 365/1.83 199.45
2010 365/2.23 163.67
2011 365/2.27 160.79
Return on Asset Ratio:
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Net Income / Average Total Asset Ratio
2007 2,745,701/15,665,050
0.17
2008 2290845/13748109
0.16
2009 1385102/20685523
0.06
2010 3443403/27138278
0.13
2011 2743384/26834618
0.10
Comments: Return on assets is decreasing year by year which indicating
utilization of assets to create profit is decreasing. Firm is not utilizing its assets
to create profits
Return on Equity:
Net Income / Shareholder`s Equity Ratio
2007 1,385,102/10,296,973
0.34
2008 2,290,845/9,436,340
0.24
2009 2,745,701/8,043,975
0.13
2010 3443403/12587615
0.27
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2011 2743384/14119648
0.19
Comments: Return on equity is also decreasing with the passage of years which
is not batter for Indus motors.
SALES TO FIXED ASSETS:
Net Sales / Fixed Assets Ratio
2007 39061226/20093852
1.94
2008 41423843/4033762
10.27
2009 37864604/3934473
9.62
2010 60093139/3324333
18.07
2011 61702677/4225710
14.60
Comments: There is a fluctuation in the sales to fix asset ratio of Indus motors.
Gross Profit Margin Ratio:
Gross Profit / Sales Ratio
2007 4,440,594/ 39,061,226
0.11
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2008 3,848,487/41,423,843
0.092
2009 2,324,186/37,864,604
0.06
2010 4856514/60093139
0.08
2011 4089135/61702677
0.07
Comments: Indus Motor gross profit is decreasing every year which indicates
that it sales are increasing but due to high cost there is decrease in gross profit.
Net Profit Margin Ratio:
Net Income / Sales Ratio
2007 2,745,701/39,061,226
0.07
2008 2,290,845/41,423,843
0.055
2009 1,385,102/37,864,604
0.036
2010 3443403/ 60093139
0.057
2011 2743384/ 61702677
0.044
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Comments: Indus Motor gross profit is decreasing every year which indicates
that Indus motor facing bad business and earns low income percentage to its
sales.
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REPORT
ON
FINANCIAL STATEMENT ANALYSIS
OF
INDUS MOTORS
SUBMITTED TO:
MR. FARUKH NAVEED
SUBMITTED BY:
ZEESHAN ALYAS
ROLL NO. 32
M.COM 4TH MORNING
SESSION 2010-2012
DEPARTMENT OF COMMERCE
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THE ISLAMIA UNIVERSITY OF BAHAWALPUR