Table of Contents

COMPANY PROFILE ................................................................................................................................. 2 Key Dates of Atlas Battery .................................................................................................................. 3 VISION AND MISSION STATEMENTS OF ATLAS BATTERIES LTD. ............................................................. 4 Vision Statement ................................................................................................................................. 4 Mission Statement .............................................................................................................................. 4 COMPANY PRODUCTS ............................................................................................................................. 4 Automotive Batteries .......................................................................................................................... 4 CUSTOMERS FOR MEDIUM AND HEAVY BATTERIES............................................................................... 5 CUSTOMERS FOR LIGHT BATTERIES ........................................................................................................ 6 ANALYSIS OF ATLAS BATTERIES LIMITED ................................................................................................ 7 Income Statement .............................................................................................................................. 7 Balance Sheet...................................................................................................................................... 8 Tools of Analysis:................................................................................................................................. 9 Ratio Analysis .................................................................................................................................. 9 Types of Ratio Analysis.................................................................................................................... 9 Liquidity Ratio: .............................................................................................................................. 10 Leverage Ratio............................................................................................................................... 11 Coverage Ratio .............................................................................................................................. 12 Activity Ratio ................................................................................................................................. 12 Profitability Ratio.......................................................................................................................... 14 TREND ANALYSIS ................................................................................................................................... 17

COMPANY PROFILE
Atlas Battery Limited pioneered the manufacture of dry charged Hard Rubber batteries in Pakistan. Now the company manufactures a complete range of Polypropylene and hard rubber batteries that caters to the needs of passenger cars of varied capacities, trucks, tractors, heavy vehicles, construction and road building equipment, as well as host of stationary and industrial applications. Motorcycle batteries have also been added to this range. The company has always been at the vanguard of development in the automotive industry in Pakistan making great strides in the fields of research and development. The brand AGS has over the years, earned a solid reputation as a product of latest Japanese technology with consistently high levels of performance and reliability. The sustained and continued high level of quality is ensured by ABLs Quality Department with its exacting standards and state-of-the-art lab facilities manned by highly trained professionals monitoring the quality of batteries being produced .The entire process is overseen by a Technical Advisor from Japan Storage Battery Company Limited stationed at Karachi. He is attach to the factory, monitors, and guides the technical Division in ensuring and meeting the international standards of quality. The focal point of the companys philosophy is customer satisfaction through continued product excellence. Atlas Battery Limited aims at maintaining its lead in technology with the help of its in-house research and development program, interfacing with Japan Storage Battery Company Limited.

ABLs technological superiority is match by its vast national network of over 600 dealers and retail outlets ensuring availability and prompt delivery of its products. All our regional and zonal offices are equipped with service center and are staff with trained to provide technical
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personnel to provide an efficient service backup. The technical personnel also regularly tour their sales and territories monitoring service needs, problem and trouble-shooting. Our associates are ably support by a steady supply of instruments and equipment imported and supplied by us, to enable them to carry out testing and repairing services with prompt attention and efficient resolution of operational complaints.

Key Dates of Atlas Battery

1966 Established (Karachi- Pakistan) 1969 Technical Collaboration with Japan Storage battery Co. Ltd. Japan 1969 Automotive Battery Production Started 1974 Motorcycle Battery Production Started 1984 Plant Expansion 1986 Introduced PP Batteries 1994 PSI certification (Quality) for Automotive Batteries 1996 Export of Motor cycles Batteries 1998 PSI Certification (Quality) Motor cycle Batteries 1998 Export of Automotive Batteries 1999 2nd Plant Expansion with Automatic Assembly Line. 2000 ISO- 9002 Certification

VISION AND MISSION STATEMENTS OFATLAS BATTERIES LTD.

Vision Statement
A manufacturer and supplier of high quality lead acid automotive and motorcycle batteries in domestic and international market.

Mission Statement
To achieve market leadership through technological edge, distinguished by quality service and customers satisfaction, emphasis on employees long term welfare and ensure adequate return to shareholders. Be a good corporate citizen of the society and country through harmonized endeavor.

COMPANY PRODUCTS
Automotive Batteries Motorcycle Batteries

Automotive Batteries

There are three types of batteries produced by Atlas Batteries Ltd. Light Batteries Medium Batteries Heavy Batteries

CUSTOMERS FOR MEDIUM AND HEAVY BATTERIES

1. Honda Atlas Cars (Pakistan) Ltd

2. Pak Suzuki Motor Company Ltd.

3. Indus Motor Company Ltd.

4. DewanFarooque Motors Ltd.

5. Sigma Motors (Pvt.) Ltd

6. Ghandhara Nissan Ltd.

7. Master Motor Corporation Ltd.

CUSTOMERS FOR LIGHT BATTERIES

1. Atlas Honda Ltd.

2. Dawood Yamaha Ltd.

3. Delta Innovations Ltd.

4. Fateh Motors Ltd.

5. Sindh Engineering (Pvt.) Ltd

6. Super Asia Motors Ltd.

7. D.S. Motors

8. N.J. Auto Industries (Pvt.) Ltd.

ANALYSIS OF ATLAS BATTERIES LIMITED

Atlas Batteries Limited

Income Statement
For the year ended 31st December 2009 Rupees. In 000 2009 2008

Sales Cost of Goods Sold Gross Profit Distribution Cost Administrative Expense Other Operating Income Other Operating Expense Profit from Operation Finance cost Profit Before Tax Taxation Profit After Taxation

3,156,807 (2,626,740) 530,067 (124,359) (70,549) 2,149 (20,891) 316,417 (43,537) 272,880 (95,202) 177,678

2,628,820 (2,241,937) 386,883 (114,957) (55,957) 1929 (12,231) 205,667 (41,536) 164,131 (57,335) 106,796

Atlas Batteries Limited

Balance Sheet
As at 31st December 2009 (Rupees in 000) 2010 2009

Assets Current Assets: Stores, spare parts lose tools Stock-in-trade Trade debts Loans and advances Deposit, short term prepayment Investment at fair value profit & loss Accrued Interest Other Receivable Cash at Bank Balance Sales Tax Advance Tax Non Current Assets: Fixed assets Property, plant and equipment Investments Long-Term Deposits Long-Term Loan Total Assets Liabilities Current Liabilities: Trade and other payables Accrued Mark-up Short Term Borrowing Provision for Taxation Non Current Liabilities: Deferred Liability Owner Equity: Share Capital and Reserves

22,413 531,597 100,396 2,350 5,928 26,224 195 29,869 31,050 6,792 756,814

14,122 434,594 88,521 2,381 7,025 6,132 14 1,952 28,892 5,064 588,698

756,339 517 270 1,513,940

635,294 2,439 1,226,431

368,911 1,245 174,598 544,754 111,246

329,326 1,603 103,616 927 435,472 85,627

Share Capital General Reserve Inappropriate Profit Total Equity and Liability

83,911 375,500 224,743 684,154 1,513,940

69,926 282,500 179,120 531,546 1,226,431

Tools of Analysis:
Ratio Analysis Trend Analysis
Ratio Analysis

An index that relates two accounting number and is obtained by dividing one number by other
Types of Ratio Analysis

Liquidity Ratio Leverage Ratio Coverage Ratio Activity Ratio Profitability Ratio

Liquidity Ratio:

Current Ratio Current Ratio is the relationship between current asset and current liability. This ratio also knows as working capital ratio.

Current Ratio

Current Asset / Current Liability

Atlas Current Ratio 2010 =756,814 / 544,754 =1.4:1 Times

Atlas Current Ratio in 2009 =662,423/509,197 =1.3:1 Times

Acid Test Ratio: It is the ratio of Liquid Asset to Current Liability, True liquidity refer to the ability of a firm to pay its short-term obligation as when they become due.

Liquid Asset =

Quick Asset / Current liability

Whereas quick asset are = Current asset Store & Spare Parts Stock in Trade

Atlas Quick Ratio 2010 =202,804/544,754 =0.3:1 Times

Atlas Quick Ratio 2009 =213,707 / 509,197 =0.4:1 Times

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Leverage Ratio

Debt to Equity Ratio Debt to equity ratio is the relationship between the external equities or the outsider fund and the internal shareholders funds. It calculated to access the extent to which is using borrowing money.

Debt to equity

total Debt / shareholder Equity

Atlas Debt to Equity Ratio 2010 There is no Debt to Equity ratio of Atlas in 2010

Atlas Current Ratio 2009 There is no Debt to Equity Ratio of Atlas in 2009

Debt to Total Asset It tells us how much portion of total Assets is debt. This ratio a serve the similar purpose to debt to equity ratio, it highlights relative importance of debt financing to the firm by showing the percentage of the firm that is supporting by debt fianc.

Debt to Total Asset

Total Debt/ Total Assets

Atlas Debt to Assets Ratio 2010 =545,271 / 1,513,940 =0.4:1 or 40%

Atlas Debt to Equity Ratio 2009 =664,862 / 1,300,156 =0.5:1 or 51%

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Coverage Ratio

Interest Coverage Ratio Interest Coverage ratio is designing to relate the financial charges of a firm to its ability of pay them from its earning.

Interest Coverage Ratio

Earning Before Interest & Taxes / Interest Expense

Atlas Interest Coverage Ratio 2010 =241,289 / 118,755 =2.0:1

Activity Ratio

Atlas Interest Coverage Ratio 2009 =272,880 / 95,202 =2.9:1

Receivable Turnover Ratio Debtor turnover ratio indicates the velocity of debts collection of a firm. In simple word, it indicates the number of times average debts are turn over during a year. Higher the value of debts turnover, more efficient is themanagement of debts or liquid the debtors are and vice versa. Debtor Turnover Atlas Debtor turnover Ratio 2010 =368,911 / 100,396 =3.6 = Annual Credit Sale / Trade Debtor Atlas Debtor turnover Ratio 2009 =329,326 / 88,521 =2.7

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 Average Collection Period Debtor turnover ratio when calculated in term of dayknows as receivable turnover in days. It represents theaverage number of days for which a firm has to wait before their debtors are converting in cash.

Average collection period turnover

No. of Days in Years/Receivable

Atlas Average Collection Ratio 2010 =365/3.6 =101 Days

Atlas Average Collection Ratio 2009 =365/3.7 =98 Days

Inventory Turnover Ratio Inventory Turnover ratio, also known as Stock Turnover, is the relationship between Cost of Goods Sold during the period and average inventories. It measures the velocity of conversion of stock into sales. Usually higher inventoryturnover, stock velocity, indicates efficient management because more frequently stocks are sold lesser the amount of money required to finance the inventory.

Inventory Turnover = Batas Inventory Turnover Ratio 2010 =3,433,222 / 531,597 =6.5 Times

C G S / Average Inventory Atlas Inventory Turnover Ratio 2009 =2,626,740 / 434,594 =6.0 Times

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 Inventory Turnover In Days This ratio is also a managerial ratio, which measures the number of days the inventories are held before it is turned into accounts receivables through cash. Usually lesser the number of days inventory held before it is turning into accounts receivable though sale is better for the company.

Inventory Turnover = ratio Atlas Inventory Turnover Ratio 2010 =365/6.5 =56 Days Profitability Ratio

No. of Days in Years / Inventory Turnover

Atlas Inventory Turnover Ratio 2009 =365/6.0 =61 Days

Gross Profit Margin Gross profit ratio, is also called Profitability in relation to sales, is the ratio of gross profit to new sales expressed as a percentage. This ratio tells us the profit of the firm relative to sales after we deduct the producing the goods. It measure of the efficiency of the firm operation. Higher the gross profit ratio better efficiency. Gross Profit Margin = Gross Profit / Net Sales x 100 Atlas Gross Profit Ratio 2009 =530,067 / 315,680 x 100 =16.8%

Atlas Gross Profit Ratio 2010 =591,200 / 4,024,422 x 100 =14.7%

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 Net Profit Margin The net profit margin is a measure of the firms profitability of sales after taking account of all expenses and income tax. This ratio also indicates performance during the financial year. Simply high the ratio better the firm performance and efficiency.

Net Profit Margin

Profit after Tax / Net Sale

Atlas Net Profit Ratio 2010 =222,534 / 4,024,422 x 100 =5.5%

Atlas Net Profit Ratio 2009 =177,678 / 3,156,807 x 100 =5.6%

Return on Investment Return on investment is one of the most important ratios considered by the proprietors and investors. It compares the net profit after tax with Total Assets investor is much concerned about this ratio. Higher the ratio of ROI moresecures the place considered for making investment. Return on Investment = Net Profit after Tax / Total Assets X 100

Atlas ROI Ratio 2010 =222,534 / 1,513,940x 100 =14.7% Return on Equity

Atlas ROI Ratio 2009 =177,678 / 1,300,156 x 100 =13.6%

Return on equity is another measure of overall firms performance. It compares net profit after tax to the equity that shareholders have invested in
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firm. This ratio tells the earning power on shareholders book value. High the return on equity often reflects the firms acceptance of strong investment opportunities and effective expense management. Return on Equity 100 Atlas ROE Ratio 2010 =222,534 / 684,154 x 100 =32.5% Atlas ROE Ratio 2009 =177,678 / 531,546 x 100 =33.4% = Net Profit after Tax /Shareholders Equity X

Total Assets Turnover Total Asset turns over shown the sale revenue per dollar of assets invested. This total asset turnover ratio tells us the relative efficiency with which firm utilizes its total assets to generate sale.

Total Assets Turnover Atlas Total Assets Turnover Ratio 2010 =4,024,422 / 1,513,940x 100 =265.8%

Net Sale / Total Assets X 100

AtlasTotal Assets Turnover Ratio 2008 =3,156,807 / 1,300,156 x 100 =242.8%

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TREND ANALYSIS
INDEXED ANALYSIS An analysis of percentage financial statements where all balance sheet or income statement figure for a base year equal 100.0 % and subsequent financial statements items are express as percentage age of their values in the base year.

Base Year:

2008 Regular in 000 Indexed in %age 2010 2008 2009 2010

Assets Current Assets Stores, spare parts Stock-in-trade Trade debts Loans and advances Deposit, short term payment Interest Accrued Investment Cash at bank balance Sales Tax Advance Taxes

2008

2009

14122 4345944 88521 2381 7025

14122 4345944 88521 2381 7025

22413 531597 100396 2350 5928

100.0 100.0 100.0 100.0 100.0

100.0 100.0 100.0 100.0 100.0

158.7 122.3 113.4 33.5 84.4

14 6132 28892 662423

14 6132 28892 5065 588698

195 26224 29869 31050 6792 756814

100.0 100.0 100.0 100.0

100.0 100.0 100.0 88.9

1392.9 427.7 103.4 114.2

Fixed Assets Property, plant and equip. Investment for sale Long-term loans and adv. Long -term deposits 517862 2439 520301 635294 2439 637733 756339 517 270 757126 100.0 100.0 100.0 122.6 100.0 122.6 146 21.2 145.5
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Total Assets Liability Current Liability Trade and other payables Accrued Mark-up Short Term Borrowing Provision for taxation

1206736

1226431

1513940

100.0

101.6

125.5

185267 7057 313002 59489 504815

329326 1603 103616 927 435472

368911 1245 174598 544754

100.0 100.0 100.0 100.0 100.0

177.8 33.1 33.1 1.6 86.3

198.9 17.6 55.8 108.0

Non Current Liability Deferred liabilityOwner Equity Share Capital General Reserve Inappropriate Profit 69926 228500 107886 406312 Total Liability 1206736 69926 282500 179120 531546 1226431 83911 375500 224743 684154 1513940 100.0 100.0 100.0 100.0 100.0 100.0 80.9 166.0 130.8 101.6 120.0 133.0 208.3 168.4 125.5 61823 85627 111246 100.0 138.5 180.0

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