ICI Pakistan Limited was set up as a public limited company in

Pakistan in 1952. ICI Pakistan Limited is a 75.8% owned

subsidiary of ICI Omicron B.V., however on 2 January 2008,
AkzoNobel’s formal offer for the acquisition of ICI Plc, the
parent company of ICI Omicron B.V., was approved by the
shareholders of both companies as well as regulatory
authorities, and the take-over process was completed,
making AkzoNobel the ultimate holding company of ICI
Pakistan Limited. AkzoNobel, a Fortune 500 company based
in Amsterdam, is the world’s largest global producer of paints
and coatings as well as one of the major manufacturers and
suppliers of specialty chemicals. AkzoNobel is Chemicals
industry leader on the Dow Jones Sustainability Indexes as
well as being included on the FTSE4Good Index, and employs
60,000 people in locations spread over 80 countries.
ICI Pakistan now operates as an independent business unit
within AkzoNobel and as a part of its specialty chemicals
portfolio.
ICI Pakistan has, and continues to develop, a portfolio of
businesses that are major players within their respective
industries, bringing together outstanding knowledge of
customer needs with leading edge technology platforms to
provide superior products to its customers. Through these
attributes, it aims to create superior value for ICI
customers and shareholders, without compromising its
commitment to safety, health, environment and the
communities in which it operates.
Mission Statement:
To be the partner of first choice for customers
and suppliers, ensuring sustained leadership position in the
markets where we compete, delivering long-term business
value through a high performance culture, innovation,
ethics and responsible care.

Vision Statement:
Business vision is to further strengthen its
position as the leading paint company in Pakistan and drive
its operations to world class standards with a relentless
commitment to Safety, Security, Health & environment and
Business Excellence.
 Give highest priority to Safety, Health, Environment and Ethical
matters.

 Ensure our product offer delivers maximum value to customers

by maintaining dependable supply, consistent quality, and
reliability.

 Uphold excellent service levels to foster long-term relationships

with customers and suppliers.

 Achieve the highest possible operating efficiencies and costs,

and expand the business through selective capacity increase
and new product launches.

 Develop and retain a team of highly capable people dedicated to

delivering the mission.
 The Company completed the year without any injury to the
Company employees, supervised or other contractors.

 Net sales income and gross profit up by 18% each.

 Operating result up by 20%.

 Profit before and after tax at Rs 2,768.5 million and Rs

1,784.8 million up by 31% and 23% respectively.

 Earnings per share increased by 23%.

 The Company declared a total dividend (interim and final)

of 60% i.e. Rs 6 per share for the year ended 2007.
Company’s operating result at Rs 2,971.4 million for the year
ended 31 December 2007 was 20% higher than 2006.
Selling & administration expenses increased compared to
last year to support business development and growth in
the Paints, Life Sciences and Chemicals Businesses
whereas in Soda Ash, the increase was due to outward
freight expenses on account of higher sales and fuel cost.

Financial charges for the year at Rs 146.4 million were 54%

lower than last year mainly due to buyout of the Fayzan
Manufacturing Modaraba’s plant in September 2006. With
higher operating result and lower financial charges, profit
before tax at Rs 2,768.5 million and profit after tax at Rs
1,784.8 million were higher than last year by 31% and
23% respectively. Earnings per share at Rs 12.86 increased
by 23% over 2006.
The procedure which we have adopted
To analysis the final report 2007 of ICI company
was as fallows:
 Ratio Analysis

 Comparison Analysis

 Income Statement (Percentage Analysis)

 Common Size Statement Analysis

 Cross Sectional Analysis


Dupont Analysis
 Ratio
Current Ratio
Quick Ratio
Inventory Turnover (Times)
Average Collection Period (Days)
Total Assets Turnover
Debt Equity Ratio
Gross profit margin
Net profit margin
EPS (Earning per share)
ROA (Return on total asset)
ROE (Return on common equity)
Price/earning Ratio
Formulas
Current Assets/Current Liabilities
Current Assets-Inventory/Current
Liabilities
Cost of goods sold/Inventory
Account receivable /Average sales per
day
Sales/Total asset
Total liability/Total asset
Gross profit/Sales
Net profit / Sales
Net profit / No of shares
Net profit / Total asset
Net profit / Common stock equity
Market price per share of common
Stock/Earning per share
 Ratios 2007 2006

Current Ratio 1.443 1.29

Quick Ratio 0.98 0.83

Inventory Turnover (Times) 6.25 5.074

Average Collection Period (Days) 25 21

Total Assets Turnover 1.381 1.3

Debt Ratio 0.018 0.017

Gross profit margin 0.2984 0.2941

Net profit margin 0.0687 0.066

EPS 12.86 10.49

ROA 0.095 0.086

ROE 0.1566 .01420

Price/earning Ratio 0.7776 0.9533

Current Ratio:- (2007)

= Current Assets/Current Liabilities

=9058107/ 6276103
=1.443

Quick Ratio: (2007)

=Current Assets-Inventory/Current Liabilities
= 9058107-2916816/ 6276103
=0.98
Interpretation:
 The liquidity position of the company is good because the assets
are more then liabilities.

 Company’s current assets are more then its current liabilities which
is not risky and company may not be insolvent in short term.

 There is upward trend in quick ratio which shows good

performance.

 1.0 Or greater quick ratio is consider acceptable and in 2007 is 0.98

which is greater then previous year and vary much close to 1.0.

 So 2007 year is considered best for both Current ratio and Quick
ratio.
Inventory Turnover: - (2007)

= Cost of goods sold/Inventory

=18223615/ 2916816
=6.25
Average Collection Period: - (2007)

= Account receivable /Average sales per day

=1707953/ (25973009/360)
=25 days
Total Assets Turnover: - (2007)

= Sales/Total asset
=25973009/18806291
=1.381
Interpretation:
 The inventory turnover of our company’s this
year is worse as compare to previous year
because our spending on manufacturing increases
and inventory almost constant.
 The time to realize receivable also going to
increase that mean we are collecting our amounts
late.
 Total assets turn over shows that company is
efficiently converting its assets into cash in 2007
as compare to previous years.
Debt Equity Ratio: - (2007)

=Total debts /Total equity

= 204867/ 11398450
=1.80%
Debt Asset Ratio: - (2007)

=Total debts /Total asset

= 204867/ 18806291
=1.10%
Interpretation:
 Company has low external debt.
 Low debt ratio shows that company

is low geared.
 Low gearing indicates that company

can borrow easily if required.

 Company is attractive to investors as

they see their funds save & company

less risky.
Gross profit margin: - (2007)
= Gross profit/Sales
= 4806120/25973009
=18.5%
Operating profit margin: - (2007)
= Operating profit / Sales
= 2768523/25973009
= 10.66%
Net profit margin: - (2007)
= Net profit / Sales
=1784800/25973009
=0.0687
Earning Per Share: -
(2007)
= 12.86
Return On Investment: -
(2007)
= Net profit / Total asset
=1784800/18806291
=0.95
Return On Equity: -
(2007)
= Net profit / Common stock equity
=1784800/11398450
=0.1566
 Ratios 2007 2006 Industry Avg Evaluation

Current Ratio 1.443 1.29 1.21  Good

Quick Ratio 0.98 0.83 0.80  Good

Inventory Turnover (Days) 58 71 35 Good 

Average Collection Period (Days) 25 21 23  OK

Total Assets Turnover 1.381 1.3 0.7   Poor

Debt Ratio 1.8% 1.7% 4.30%  Good

Gross profit margin 29.84% 29.41% 19.70%  Good

Net profit margin 6.87% 6.60% 6.90%  Poor

Earning Per Share 12.86 10.49 14.97  OK

Return on investment 9.5% 8.6% 5.05%  Poor

Return on equity 15.66% 14.20% 14.70%  OK

Price/earning Ratio 0.7776 0.9533 9.51  Poor

   Values   Evaluation

2007 Rs.`000 2006 Rs.`000 2007% 2006% 2005-2006

Sales 25973009 21947688 100.00% 100.00%Good

Less: Cost of sales 18223615 15492648 70.16% 70.59%Good

Gross profit 4806120 4081470 18.50% 26.34%Poor

Less: Operating Expense         

             Distribution Cost 1074549 876075 4.14% 3.99%OK

             Other expenses 760201 726201 2.93% 3.31%Good

      1834750 1602276 7.06% 7.30%Good

Add: Other Income 165919 129207 0.64% 0.59%Good

Operating Profit  222345 171127 0.86% 0.78%Good

Less: Finance Cost 146421 319301 0.56% 1.45%Good

Net profit before taxation 2768523 2117797 10.66% 9.65%Good

Less: Provision of taxation 983723 662169 3.79% 3.02%Ok

Net profit 1784800 1455628 6.87% 6.63%Good