Atlas Batteries (1)

8/3/2019 Atlas Batteries (1)

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Table of ContentsCOMPANY 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


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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


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VISION AND MISSION STATEMENTS OFATLAS BATTERIES LTD.

Vision StatementA 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


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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.


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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.


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ANALYSIS OF ATLAS BATTERIES LIMITED

Atlas Batteries Limited

Income Statement

For the year ended 31st

December 2009

Rupees. In 000

2009 2008

Sales 3,156,807 2,628,820

Cost of Goods Sold (2,626,740) (2,241,937)

Gross Profit 530,067 386,883

Distribution Cost (124,359) (114,957)

Administrative Expense (70,549) (55,957)

Other Operating Income 2,149 1929

Other Operating Expense (20,891) (12,231)

Profit from Operation 316,417 205,667

Finance cost (43,537) (41,536)

Profit Before Tax 272,880 164,131

Taxation (95,202) (57,335)

Profit After Taxation 177,678 106,796


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Atlas Batteries Limited

Balance Sheet

As at 31st

December 2009

(Rupees in 000)

Assets 2010 2009

Current Assets:

Stores, spare parts lose tools 22,413 14,122

Stock-in-trade 531,597 434,594

Trade debts 100,396 88,521

Loans and advances 2,350 2,381Deposit, short term prepayment 5,928 7,025

Investment at fair value profit & loss 26,224 6,132

Accrued Interest 195 14

Other Receivable - 1,952

Cash at Bank Balance 29,869 28,892

Sales Tax 31,050 5,064

Advance Tax 6,792

756,814 588,698

Non Current Assets:Fixed assets

Property, plant and equipment 756,339 635,294

Investments - -

Long-Term Deposits 517 2,439

Long-Term Loan 270 -

Total Assets 1,513,940 1,226,431

Liabilities

Current Liabilities:

Trade and other payables 368,911 329,326

Accrued Mark-up 1,245 1,603

Short Term Borrowing 174,598 103,616

Provision for Taxation - 927

544,754 435,472

Non Current Liabilities:

Deferred Liability 111,246 85,627

Owner Equity:

Share Capital and Reserves


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Share Capital 83,911 69,926

General Reserve 375,500 282,500

Inappropriate Profit 224,743 179,120

684,154 531,546

Total Equity and Liability 1,513,940 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


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Liquidity Ratio:

Current RatioCurrent 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 Atlas Current Ratio in 2009

=756,814 / 544,754 =662,423/509,197

=1.4:1 Times =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 assetStore & Spare PartsStock in

Trade

Atlas Quick Ratio 2010 Atlas Quick Ratio 2009

=202,804/544,754 =213,707 / 509,197

=0.3:1 Times =0.4:1 Times


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Leverage Ratio

Debt to Equity RatioDebt 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 Atlas Current Ratio 2009

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

Atlas in 2010 in 2009

Debt to Total AssetIt 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 Atlas Debt to Equity Ratio 2009

=545,271 / 1,513,940 =664,862 / 1,300,156

=0.4:1 or 40% =0.5:1 or 51%


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Coverage Ratio

Interest Coverage RatioInterest 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 Atlas Interest Coverage Ratio 2009

=241,289 / 118,755 =272,880 / 95,202

=2.0:1 =2.9:1

Activity Ratio

Receivable Turnover RatioDebtor 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 = Annual Credit Sale / Trade Debtor

Atlas Debtor turnover Ratio 2010 Atlas Debtor turnover Ratio 2009

=368,911 / 100,396 =329,326 / 88,521

=3.6 =2.7


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Average Collection PeriodDebtor 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 = No. of Days in Years/Receivable

turnover

Atlas Average Collection Ratio 2010 Atlas Average Collection Ratio 2009

=365/3.6 =365/3.7

=101 Days =98 Days

Inventory Turnover RatioInventory 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 = C G S / Average Inventory

Batas Inventory Turnover Ratio 2010 Atlas Inventory Turnover Ratio 2009

=3,433,222 / 531,597 =2,626,740 / 434,594

=6.5 Times =6.0 Times


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Inventory Turnover In DaysThis 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 = No. of Days in Years / Inventory Turnover

ratio

Atlas Inventory Turnover Ratio 2010 Atlas Inventory Turnover Ratio 2009

=365/6.5 =365/6.0

=56 Days =61 Days

Profitability Ratio

Gross Profit MarginGross 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 2010 Atlas Gross Profit Ratio 2009

=591,200 / 4,024,422 x 100 =530,067 / 315,680 x 100

=14.7% =16.8%


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Net Profit MarginThe 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 Atlas Net Profit Ratio 2009

=222,534 / 4,024,422 x 100 =177,678 / 3,156,807 x 100

=5.5% =5.6%

Return on InvestmentReturn 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 Atlas ROI Ratio 2009

=222,534 / 1,513,940x 100 =177,678 / 1,300,156 x 100

=14.7% =13.6%

Return on EquityReturn 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 = Net Profit after Tax /Shareholders Equity X

100

Atlas ROE Ratio 2010 Atlas ROE Ratio 2009

=222,534 / 684,154 x 100 =177,678 / 531,546 x 100

=32.5% =33.4%

Total Assets TurnoverTotal 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 = Net Sale / Total Assets X 100

Atlas Total Assets Turnover Ratio 2010 AtlasTotal Assets Turnover Ratio 2008

=4,024,422 / 1,513,940x 100 =3,156,807 / 1,300,156 x 100

=265.8% =242.8%


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TREND ANALYSIS

INDEXED ANALYSISAn 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

Assets 2008 2009 2010 2008 2009 2010

Current Assets

Stores, spare parts 14122 14122 22413 100.0 100.0 158.7

Stock-in-trade 4345944 4345944 531597 100.0 100.0 122.3

Trade debts 88521 88521 100396 100.0 100.0 113.4

Loans and advances 2381 2381 2350 100.0 100.0 33.5

Deposit, short term

payment

7025 7025 5928 100.0 100.0 84.4

Interest Accrued 14 14 195 100.0 100.0 1392.9

Investment 6132 6132 26224 100.0 100.0 427.7

Cash at bank balance 28892 28892 29869 100.0 100.0 103.4

Sales Tax - 5065 31050 - - -

Advance Taxes - - 6792 - - -

662423 588698 756814 100.0 88.9 114.2

Fixed Assets

Property, plant and equip. 517862 635294 756339 100.0 122.6 146

Investment for sale - - - - - -

Long-term loans and adv. 2439 2439 517 100.0 100.0 21.2

Long -term deposits - - 270 - - -

520301 637733 757126 100.0 122.6 145.5


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Total Assets 1206736 1226431 1513940 100.0 101.6 125.5

Liability

Current Liability

Trade and other payables 185267 329326 368911 100.0 177.8 198.9

Accrued Mark-up 7057 1603 1245 100.0 33.1 17.6

Short Term Borrowing 313002 103616 174598 100.0 33.1 55.8

Provision for taxation 59489 927 - 100.0 1.6 -

504815 435472 544754 100.0 86.3 108.0

Non Current Liability

Deferred liability- 61823 85627 111246 100.0 138.5 180.0

Owner Equity

Share Capital 69926 69926 83911 100.0 100.0 120.0

General Reserve 228500 282500 375500 100.0 80.9 133.0

Inappropriate Profit 107886 179120 224743 100.0 166.0 208.3

406312 531546 684154 100.0 130.8 168.4

Total Liability 1206736 1226431 1513940 100.0 101.6 125.5

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Atlas Batteries (1)