DG KHAN CEMENT FINANCIAL STATEMENTS

Statement Of Profit & Loss

2020 2019 2018
Rs38,033,12 Rs40,516,52 Rs30,668,42
Sales-Net 4 5 8
Rs36,447,21 Rs35,154,08 Rs21,928,20
Cost of Sales 8 6 7
Gross Profit Rs1,585,906 Rs5,362,439 Rs8,740,221
Administrative Expenses Rs658,874 Rs628,517 Rs624,725
Selling & Distrubtion
Expenses Rs1,783,422 Rs1,305,695 Rs898,156
Other Operating Expenses Rs146,477 Rs22,343 Rs2,354,656
Other Income Rs2,429,575 Rs538,207 Rs3,026,661
Operational Profit Rs2,427,266 Rs7,889,345
Finance Cost Rs4,653,286 Rs3,304,102 Rs519,267
Profit/Loss Before Tax Rs3,756,188 Rs1,990,841 Rs7,370,078
Taxation Rs1,597,527 Rs381,082 Rs1,467,530
Profit After Tax Rs2,158,661 Rs1,609,759 Rs8,837,608

Balance Sheet
2020 2019 2018
Cash & Short Term Investments 13,816 15,179 16,518
Cash Only 689 1,050 499
Short-Term Investments 13,126 14,129 16,019

Cash & Short Term Investments Growth -8.98% -8.10% -5.58%

10.97
Cash & ST Investments / Total Assets 9.62% % 13.02%
Total Accounts Receivable 9,003 6,370 5,179
Accounts Receivables, Net 3,163 1,842 520
Accounts Receivables, Gross 3,392 1,913 525

Bad Debt/Doubtful Accounts -229 -70 -5

Other Receivables 5,840 4,527 4,659
41.34 22.99 135.69
Accounts Receivable Growth % % %
Accounts Receivable Turnover 4.62 6.85 6.46
Inventories 14,051 15,096 8,765
Finished Goods 470 494 535
Work in Progress 3,362 2,802 493
Raw Materials 1,289 1,904 1,399
Progress Payments & Other 8,930 9,895 6,337
Other Current Assets 749 1,101 815
Prepaid Expenses 7 22 16
Miscellaneous Current Assets 742 1,079 799
Total Current Assets 37,618 37,745 31,277
Net Property, Plant & Equipment 88,056 84,664 81,219
121,85 114,53
Property, Plant & Equipment - Gross 0 8 107,372
Buildings 26,728 26,622 24,646
Land & Improvements 2,196 2,179 2,125
Machinery & Equipment 71,791 73,360 65,956
Construction in Progress 6,562 3,053 3,073
Leases 263 263 63
Transportation Equipment 1,325 1,296 1,091
Other Property, Plant & Equipment 12,985 7,765 10,418
Accumulated Depreciation 33,794 29,874 26,153
Buildings 7,802 6,744 5,787
Machinery & Equipment 20,818 20,747 17,060
Transportation Equipment 770 673 597
Other Property, Plant & Equipment 4,371 1,685 2,688
Total Investments and Advances 9,574 10,030 13,860
LT Investment - Affiliate Companies 5,651 - 12,028
Other Long-Term Investments 3,923 10,030 1,832
Long-Term Note Receivable 5 0 1
Other Assets 58 61 60
Tangible Other Assets 58 61 60
143,56 138,39
Total Assets 3 8 126,879
Assets - Total - Growth 3.73% 9.08% 14.13%
Asset Turnover 0.3 - -

Return On Average Assets -1.57% - -

Liabilities & Shareholders' Equity
All values PKR Millions. 2020 2019 2018
ST Debt & Current Portion LT Debt 27,899 28,154 15,953
Short Term Debt 25,850 22,938 13,615
Current Portion of Long Term Debt 2,049 5,216 2,338
Accounts Payable 4,186 3,555 3,606

17.76 122.96
Accounts Payable Growth % -1.42% %
Income Tax Payable 35 35 35
Other Current Liabilities 8,338 6,027 4,821
Dividends Payable 34 33 28
Accrued Payroll 143 40 27
Miscellaneous Current Liabilities 8,161 5,954 4,766
Total Current Liabilities 40,459 37,771 24,415
Current Ratio 0.93 1 1.28
Quick Ratio 0.58 0.6 0.92
Cash Ratio 0.34 0.4 0.68
Long-Term Debt 22,679 16,659 18,330
Long-Term Debt excl. Capitalized Leases 22,679 16,659 18,330
Non-Convertible Debt 22,679 16,659 18,330
Provision for Risks & Charges 522 449 278
Deferred Taxes 2,723 4,340 4,300
Deferred Taxes - Credit 10,975 10,238 4,763
Deferred Taxes - Debit 8,252 5,898 463
Other Liabilities 254 242 110
Other Liabilities (excl. Deferred Income) 254 242 110
Total Liabilities 74,889 65,360 47,896
52.16 47.23
Total Liabilities / Total Assets % % 37.75%
Common Equity (Total) 66,657 70,999 76,988
Common Stock Par/Carry Value 4,381 4,381 4,381
Additional Paid-In Capital/Capital Surplus 4,557 4,557 4,557
Retained Earnings 35,105 37,744 37,884
Unrealized Gain/Loss Marketable
Securities 17,150 18,852 24,701
Other Appropriated Reserves 354 354 354
Unappropriated Reserves 5,111 5,111 5,111
46.43 51.30
Common Equity / Total Assets % % 60.68%
Total Shareholders' Equity 66,657 70,999 76,988
46.43 51.30
Total Shareholders' Equity / Total Assets % % 60.68%
Accumulated Minority Interest 2,016 2,040 1,995
Total Equity 68,674 73,039 78,983
143,56 138,39
Liabilities & Shareholders' Equity 3 8 126,879
 2020 2019 2018
Asset Turnover 29.36 32.17 25.16
Current Ratio 0.91 0.98 1.29
Effective Tax Rate -42.53 19.14 19.91
Interest Cover 0.19 1.6 15.19
Inventory Turnover 8.74 10.91 22.26
Quick Ratio 0.79 0.87 1.23
Times Interest Earned 0 0 0

Liquidity proportions estimates how rapidly assts are changed over into cash. Liquidity
proportions additionally gauges the capacity of an organization to take care of its transient
commitments.
CURRENT RATIOS: This proportion communicates current resources corresponding to
current liabilities.

The current proportion has decline from 1.29 in 2018 contrasted with 0.91 in 2020. There is
a critical change in the current proportions principally on the grounds that there is
exceptional expansion in the current liabilities of DG Khan concrete. The exchange payables
have ascended undeniably. This is because of the organization is taking additional time in
paying its providers, for example, its payable in

days are 108 days in 2020 contrasted and 65 days in 2018. Additionally, in 2019,

there had been impromptu acquiring by both private and public area including DG Khan
concrete organization that dispatched two tasks which add money cost too. This makes
organization to take additional time in settling up its banks.

Basic analysis RATIO: This proportion analyzes the organization's most transient liabilities
with current liabilities.

This basic analysis proportion has decline from 1.23 in 2018 to 0.79 in 2020. It has a similar
pattern like in current proportions. In the wake of taking away the stock, the current
resources contracted extraordinarily. The stock turnover has decreased from multiple times
to multiple times (2018-2020) as DG Khan organization's fare has tumbled from 31 % 2011-
12 to 13% in 2017.This shows the expansion stock because of lower interest from different
nations. The decrease in speedy proportions mirrors that organization is getting less fluid.

Money RATIO: The money proportion ordinarily addresses a solid proportion of a

substance's liquidity in an emergency circumstance.

This proportion is likewise diminishing as the proportion diminishes from 2.26 in 2018 to
1.17 in 2019 and 0.73 in 2020. DG Khan concrete organization decrease in productivity and
exorbitant costs because of development makes it left with little money.

Profitability Ratio
Net PROFIT: shows the level of income accessible to cover working and different costs and
to produce benefit. There has been a considerable decrease in the gross net revenue. The
rate diminishes structure 42% in 2018 to 28% in 2020.Hence this decline was somewhat
below the concrete business midpoints which 43.5% in 2020. The business comprise of
neighborhood and unfamiliar deals. It is accounted for that the unfamiliar deals have
significantly diminished as trades diminishes from 31% in 2011-12 to 13% in 2019.
Furthermore, the sends out fall because of vacillation in concrete costs. Then again, there
DG khan experienced significant expense of deals as coal costs increments quickly from 52$
in 2016 to 96$ in 2020.

Working PROFIT MARGIN: Operating benefit is determined as gross benefit less working
expenses.
The working overall revenue tumbles from 34% in 2018 to 31% in 2019 and afterward reach
to 16%. There is blend of components that cause a lessening in working overall revenue. DG
Khan sends out decreased because of extreme rivalry in African business sectors and
Afghanistan market is caught by Iranian concrete. In addition, the expense of deals
increments as there had been an inventory of LNG rather than gas which was similarly
costly. what's more, the organization was going through extensions which likewise raise up
costs of the organization.

PRE-TAX MARGIN: is the proportion of pretax pay to income. As other benefit proportions,
the pre-charge edge has likewise diminished from 42% in 2018 to 24% in 2020. The money
cost has incredibly ascended as the organization dispatched two tasks in 2019. Already,
during the time of 2018-2019, the public authority proceeded with the expansionary
financial arrangement. Afterward, the new government presents the contractionary
monetary strategy which prompts an increment in financing costs. As the organization took
advances from banks for these tasks, it needs to bear the hefty money cost.

NET PROFIT MARGIN: is determined as incomes less all costs.

The net overall revenue has somewhat decline from 29% to 28% (2018-20). Nonetheless, it
is as yet higher than industry normal for example 26% in 2020. The general productivity of
the organization has scaled down due to high fund costs because of extension ventures and
coal and LNG costs ascend. Be that as it may, shockingly, there had been a critical decrease
in tax collection as the organization is conceded a tax break because of its further extension
in the country.

RETURN ON ASSETS: gauges the return procured by an organization on its resources.

The profit from resources have additionally decreased from 11% to 7.6% (2018-20). In the
event that this proportion is contrasted and the business normal, it is low as the business
normal has expanded from 10% to 15%. The principle justification this abatement is the
decrease in productivity of the organization because of numerous variables clarified better
than as high account expenses and cost of deals. The resources of the organization have
expanded as the two tasks were dispatched.

RETURN ON EQUITY: This proportion shows what amount go with has procured on its value
capital.

The profit from value has diminished from 13% to 11% (2018-20). Nonetheless, the ROE of
concrete industry has increment from 15% to 21% (2018-2020). There is a decrease in
benefit which has caused extraordinary consequences for different proportions also.
Nonetheless, the return is additionally low due to xpansion projects going on. Along these
lines, the investors need to bear the significant expense as the organization has taken
advances and depreciation of money.

CONCLUSION
As indicated by the above determined proportions, it very well may be reasoned that DG
Khan concrete organization's benefits are narrowing because of money devaluation, broad
deterioration of new private enterprise, high coal costs, lower concrete costs, extension
projects and so on Nonetheless, the organization's productivity is still better compared to
different contenders. From the financial backer's point of view, productivity and EPS is
fundamental. Presently, the productivity isn't agreeable and EPS is 1.83 which is a lot of
lower than opponents, for example, Bestway concrete with EPS of 16.93. I would
recommend the financial backers should sit tight for the ideal time as the organization is
going through extension and all the more critically the monetary conditions are not steady
as it very well may be conceivable that the concrete area may succeed again if government
dispatch the advancement undertakings like development of dams, streets, 5,000,000
lodging units ,CPEC and so forth The financial backers should consider the to be term
productivity as the extension ventures would assist the organization with being more
proficient and investigate new business sectors.