Financial Analysis

1. Acknowledgement I find no words at my command to express my deepest sense of gratitude to the Almighty ALLAH, the most Gracious, the most Merciful and the most Beneficent, who gives me the talent to complete this task successful, He is the one who gave me courage to do this. I am much obliged to my loving Parents whose prayers have enabled me to reach this stage. At this occasion, I can’t forget my parents for their guidance at the crucial moments of my life. Next, I owe my bottomless thanks to our esteemed resource person Mr.

Syed Asad who directed me well and was always available to clear my doubts and misunderstandings throughout this project. It is also a matter of immense pleasure for me to express my gratitude to the Faculty of Preston Institute of Management Science and Technology for giving us their precious time and tried their best as helpful as possible. I wish to thanks all my Friends and Classmates who really helped me by giving suggestions and critical review of the manuscript. Obviously this achievement was not possible without all of you. 2.. Disclaimer

The purpose of the project is to introduce the subject matters and provide a general idea and financial information about the Indus Motors Company Limited. All the material included in this document is based on data/information gathered from various sources and is based on certain assumptions. Although, due care, diligence and reasonable efforts has been taken to compile this project, the contained information may vary due to any change in any of concerned factors and the actual results may differ substantially from the presented information.

Project does not assume any liability for any financial or other loss resulting from this document in consequence of undertaking this activity. Therefore the content of this document should not be relied upon for making any decision, investment or otherwise. The content of the information does not bind “PROJECT MAKER” in any legal or other form. Project does not also assume any rectifications, errors, omission and misprinting between the electronic and printed version of document. Financial Analysis of IMC does not accept any responsibility for the validity and correctness of the information published on its project.

3.. Reason for Choosing the Organization When I was informed that I would have to do the financial analysis of last three years of any listed company than the primary challenge for me was to choose the organization on which I can start my working. It was bit difficult and confusing for me to select the organization. I started brainstorming and came up with many well-known organizations having large operations, both in Pakistan and worldwide. After gathering data and relevant information, I ended with three business sectors, Automobile industry, Textile industry and Tobacco industry.

I choose best companies in their respective class, but after applying hindsight, I decided to go with Automobile industry and the organization I selected was “Indus Motor Company Limited” 3. 1 Aims and Objectives of the Project The main objectives and aims of this project are to analyze and evaluate the overall performance of the company by applying different conceptual models and discuss the liquidity, cash flow situation and produce informative report usable by the users of the statements assessing the financial position, performance and adaptability of the organization.

The performance evaluation is based on historic and current available data about the operations of the company. Under the constantly increasing competition in the business market, these analyses portray a very clear and informative picture to the investors, shareholders, regulators and other players in the stock market. Finally, the project draws conclusions based on my analysis about the current situation and the prospects of the Indus Motor Company Limited. 4.. Executive Summary Indus Motor Company is one of the Automobile Companies, which formed with the help of house of Habib, Toyota Motor Corporation, Toyota Tsusho Corporation.

It manufactures and imports cars and enjoys a healthy share in the market. It is competing with the Honda, Nissan, Suzuki and Mitsubishi. To sustain its lead IMC must maintain strategic competitive advantage, which is its production strength, ability to produce quality cars with respect to low cost and research and development in hybrid and bio fuel cars. But recently company is in stabilization mode trying to improve its functional area, consolidation of resources and maintaining SCA. In my opinion, it is the best move made by IMC to survive the financial holocaust.

Indus Motors is the country's second largest auto manufacturer, after the Pak Suzuki Motors, located near Bin Qasim Karachi, having an assembling capacity of 55,000 units per annum. Its core business is to manufacture and market cars. In addition, the company also sells auto parts and accessories. Its product line includes 9 variants of Toyota Corolla, 8 variants of Daihatsu Cuore and 2 variants of Toyota Hilux. The company also offers six different imported vehicles namely Toyota Camry, Prado, Land Cruiser, RAV, Hilux and Hiace. Major contributor to the revenue is Corolla, having a contribution of 66. 5% in company's sales.