FINAL PROJECT

Submitted to:

Ms. Noor Zahid

Submitted by:

Aveesha Vehra (23L-4073)

BBA-2B2

Date: April 29, 2024

Financial Accounting – AF1002

FAST School of Management

National University of Computer & Emerging Sciences

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 Introduction Of the Company............................................................................................3
Financial Analysis (2022-2023) ........................................................................................4
Pro tably Ratios ............................................................................................................4
Gross Pro t Margin ....................................................................................................4
Operating Pro t Margin ..............................................................................................5
ROCE (Return on Capital Employed) ........................................................................5
Net Asset Turnover ....................................................................................................6
Liquidity and Ef ciency Ratios ......................................................................................6
Current Ratio..............................................................................................................6
Quick Ratio ................................................................................................................7
Receivables Collection Period ...................................................................................8
Payables Payment Period..........................................................................................8
Financial Position Ratios ...............................................................................................9
Gearing Ratio .............................................................................................................9
Interest cover ...........................................................................................................10
Financial statement of TARIQ GLASS INDUSTRIES LTD ..............................................11
Graphs ............................................................................................................................16
References .....................................................................................................................19

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Introduction Of the Company
Company Name: Tariq Glass Industries Ltd

Tariq Glass Industries Limited (PSX: TGL) was first established in Pakistan as a private limited
business in 1978. In 1980, it was converted into a public limited company. This company has an
annual glass drawn production capacity of 375,229 M.Ton. It produces and sells dinnerware,
float glass, container ware, and opal glass. The greatest cutting-edge manufacturing facilities in
Pakistan are part of TGL's production facilities, which are situated at 33KM Lahore Sheikhupura
Road, Sheikhupura, Punjab. Tariq Glass Industries Ltd. has been a leader in the glass
manufacturing industry for the last thirty years. The top brands in Pakistan's market are Tariq
Glass Industries Ltd.'s Toyo Nasic, Omroc, and Nova, which are renowned for their diversity,
quality, and dependability. International markets in Europe, the Middle East, Africa, Asia, and the
Far East are now seeing this success. The foundation of Tariq Glass Industries Ltd.'s competitive
advantage is a group of skilled, seasoned, and committed individuals that have a strong technical
partnership with Toyo Glass of Japan and a track record of accomplishment.

The Company's sponsor director, Mr. Omer Baig, beneficially owns approximately 57% of the
shares. About 45% of the shares are directly held by him, and the remaining ~11.8% are held
through two associates, M/s M&M Glass (Private) Limited and M/s Omer Glass Industries
Limited. Consistency The company's stock structure hasn't changed significantly over time. The
sponsoring family is anticipated to maintain shareholding. Commercial Sense Son of the late Mr.
Tariq Baig, the founder of the company, Mr. Omer Baig, is the current MD/CEO and has been
involved in its operations from its founding. He has a well-established reputation in the glass
sector.

Mission statement: ‘’To be a world class and leading company continuously providing quality
glass tableware, containers and float by utilizing best blend of state-of-the-art technologies,
highly professional staff and synergistic organizational culture’’

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 Financial Analysis (2022-2023)

Pro tably Ratios

Interpretation:

Gross Pro t Margin

In 2023, the gross profit margin of the corporation dropped from 26.34% in 2022 to 20.17%.
This implies a decline in the percentage of sales revenue retained after deducting the cost of
products sold. This decrease is mainly due to either an increase in the cost of goods sold
(denominator) or a decrease in sales revenue (numerator). In 2022 the selling price was slightly
higher and the cost of Sales (purchase, production etc.) was slightly less than in 2023 which led
to a decrease in the gross profit percentage of 2023.
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Operating Pro t Margin
Operating efficiency declined in 2023 as evidenced by the operating profit margin, which
dropped from 21.31% in 2022 to 14.49% in 2023. This indicates poor business management in
2023. This decline can be due to either an increase in operating expenses (denominator) or a
decrease in sales revenue (numerator). In 2022 PBIT was double of that in 2023.

ROCE (Return on Capital Employed)

The return on capital employed detoriated significantly, from 41.59% in 2022 to 26.60% in 2023,
indicating a reduction in the company's profitability relative to its invested capital. This decline
is either to a decrease in operating profit (numerator) or an increase in capital employed
(denominator). As we analyzed earlier it is mainly due to a decrease in the operating profit in
2023.

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Net Asset Turnover

Relative to 2022, the net asset turnover dropped from 1.75 to 1.56, suggesting a decline in sales
per unit of capital used. This decrease indicates either a decrease in sales revenue (numerator) or
an increase in capital employed (denominator). This is a slight decrease as sales revenue was
slightly less while capital employed was slightly more in 2022 than in 2023.

Liquidity and Ef ciency Ratios

Interpretation:

Current Ratio

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From 1.41 in 2022 to 1.86 in 2023, the current ratio increased, demonstrating increased liquidity
and the company's capacity to fulfil short-term obligations.
This improvement suggests either an increase in current assets (numerator) or a decrease in
current liabilities (denominator). According to the balance sheet the as the current liabilities
decreases from 6,230,474,142 in 2022 to 4,629,932,574 in 2023 which causes an increase in the
current ratio.

Quick Ratio

The Quick ratio increased from 0.73 to 0.87 times between 2022 and 2023, indicating better
liquidity without the need for inventory. This improvement can be attributed to either a decrease
in inventory (numerator) or a decrease in current liabilities (denominator). Quick Ratio is also
known as acid test Ratio. These ratios suggest normal levels.

Inventory Turnover Period

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The inventory turnover period increased slightly from 71.11 days (about 2 and a half months) in
2022 to 74.12 days (about 2 and a half months) in 2023, indicating a slightly slower rate of
inventory turnover. This increase indicates either a decrease in the cost of goods sold
(denominator) or an increase in inventory (numerator). In this case there is a slight increase in
the inventory in 2023 from that in 2022.

Receivables Collection Period

The receivables collection duration grew from 21.36 days (about 3 weeks) in 2022 to 25.14 days
(about 3 and a half weeks) in 2023, showing that it takes longer to collect receivables from
consumers. This shows a decrease in efficiency. This increase means either an increase in trade
receivables (numerator) or a decrease in credit sales (denominator). As the trade receivables
increase from 1,721,746,863 in 2022 to 1,957,898,325 in 2023 and the credit sales (sales)
decreased slightly, the receivables collection period increased.

Payables Payment Period

The payment period decreased from 43.75 days (about 1 and a half months) in 2022 to 36.55
days (about 1 month 6 days) in 2023, indicating that the company is taking less time to pay its
suppliers. This decrease indicates either a decrease in trade payables (numerator) or an increase
in credit purchases (denominator). In 2023 trade payables decresed to 2,252,864,195 from
2,835,013,545 in 2022.

Cash Cycle

As cash cycle period increased from 48.72 in 2022 to 62.71 in 2023 this indicates that it took
longer for the company to convert its investments in inventory and accounts receivable into cash.

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The inventory turnover period and receivable collection period increased while the payables
payment period decreased in 2023.

Financial Position Ratios

Interpretation:

Gearing Ratio

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The gearing ratio decreased from 21.51% in 2022 to 12.44% in 2023, suggesting a decrease in
the company's reliance on long-term debt to finance its operations. This decrease suggests either
a decrease in long-term debt (numerator) or an increase in equity (denominator). Long term debt
decreases from 2,815,462,174 in 2022 to 1,907,003,607 in 2023 while equity increases from
13,088,295,909 in 2022 to 15,331,959,487 In 2023.

Interest cover

The interest cover ratio decreased significantly from 20.09 in 2022 to 8.26 in 2023, indicating a
decrease in the company's ability to cover its interest expenses with its earnings before interest
and taxes (PBIT). This decrease indicates either a decrease in PBIT (numerator) or an increase in
interest payable (denominator). Interest payables increase form 312,031,681 in 2022 to
4982,97,218 in 2023 hence the decrease in the interest coverage in 2023 and the PBIT decreased
from 6,268,093,301 in 2022 to 4,118,161,875 In 2023.

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Financial statement of TARIQ GLASS INDUSTRIES
LTD

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Ratio Analysis

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Graphs

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References
Annual_Report_2023.pdf

Tariq glass.pdf

Annual_Report_2023.pdf

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