toyota indus

8/2/2019 toyota indus

1/28

Group Members

Qazi Muhammad Ahmed

Hussain Raza

Nabiha Bashir

Nida Ali

Nofil Nadeem


2/28

Most important industry in the world.

USA is at the top due to consistentpolicies.

France, 3,376 Germany, 5,469

Italy, 1,427

UK, 1,819

Spain, 2,855

Canada, 2,626

USA, 12,272

Brazil, 1,775

Korea, 3,148

Japan, 10,257

Others, 12,939


3/28

Toyota Motor Company Limited

World's third largest manufacturer of automobiles.

Honda Motor Company Limited

Todays leading manufacturers of automobiles.

Suzuki Motor Corporation

Japan's number one mini car producer .

Mitsubishi Motors Corporation

Worlds' 10th largest vehicle manufacturer


4/28

In 2007-08 production reached 164,710units.

Drop of 6.4% from the previous year.


5/28

Honda Pakistan: Joint venture between Honda and the Atlas Group.

Pak Suzuki Motors: Joint venture between Pakistan government and Suzuki.

Hyundai Pakistan: Dewan Mushtaq Group diversified its business activities.

Gandhara Nissan Limited: Technical Assistance Agreement with Nissan Motor Co. Japan.


6/28

Indus Motor Company: Joint venture between the House of Habib,

Toyota Motor Corporation Japan (TMC), andToyota Tsusho Corporation Japan (TTC) .

Started commercial production in May 1993.

Toyota and Daihatsu brands beingmanufactured.

Market leader in 1000+cc Sedans in thePakistan.


7/28

Toyota Indus Motors

Income Statement Analysis (Vertical & Horizontal)

Years

2006 2007 2008 2009

000 000 % Change 000 % Change 000 % Change

Sales 35,236,535 39,061,226 10.9% 41,423,843 6.0% 37,864,604 -8.59

Cost of Sales 31,088,906 34,620,632 11.4% 37,575,356 8.5% 35540418 -5.412

Gross Profit 4,147,629 4,440,594 7.1% 3,848,487 -13.3% 2324186 -39.6

Distribution &

Marketing

Expenses

404,917 509,986 25.9% 487,373 -4.4% 469985 -3.56

Administrative

Expenses

242,456 265,302 9.4% 297,284 12.1% 352249 18.48

Other Operating

Income

1,021,212 935,290 -8.4% 786,834 -15.9% 727080 -7.59

Other Operating

Expense

321,746 348,430 8.3% 306,193 -12.1% 156479 -48.8

Profit/Loss From

Operations

4,199,722 4,252,166 1.2% 3,544,471 -16.6% 2072553 -41.5

Finance Costs 126,945 22,685 -82.1% 2,760 -87.8% 26540 861.5

Profit/Loss Before

Taxation

4,072,777 4,229,481 3.8% 3,541,711 -16.3% 2046013 -42.2

Taxation 1,424,313 1,483,780 4.2% 1,250,866 -15.7% 660911 -47.16

Profit/Loss For

The Year

2,648,464 2,745,701 3.7% 2,290,845 -16.6% 1385102 -39.53


8/28

Honda Pakistan:

Income Statement Analysis (Vertical & Horizontal)

Years

2006 2007 2008 2009

000 000 % Change 000 % Change 000 % Change

Sales 25,638,698 17,055,115 -33.5% 14,715,495 -13.7% 14149646 -3.84

Cost of Sales 22,471,184 16,955,181 -24.5% 14,088,001 -16.9% 13973144 -0.81

Gross Profit 1,167,514 99,934 -91.4% 627,494 527.9% 176502 -71.8

Distribution &

Market Expenses

149,877 214,889 43.4% 209,677 -2.4% 190088 -9.34

Admin Expenses 134,518 147,274 9.5% 139,163 -5.5% 139749 0.42

Other Operating

Income

377,865 150,585 -60.1% 23,589 -84.3% 64844 174.89

Other Operating

Expense

80,924 64,514 -20.3% 4,975 -92.3% 311025 6151.7

Profit/Loss From

Operations

1,180,060 (176,158) -114.9% 297,268 -268.8% -399516 -234.3

Finance Costs 46,356 305,416 558.8% 233,651 -23.5% 222769 -4.65

Profit/Loss Before

Taxation

1,133,704 (481,649) -142.5% 63,617 -113.2% -6222285 -9880.85

Taxation 428,410 217,109 -49.3% 11,393 -94.8% 220452 1834.9

Profit/Loss For The

Year

705,294 (264,540) -137.5% 75,010 -128.4% -401833 -635.7


9/28

Indus Motors was more consistent.

Honda was able to reduce the cost of

sales. Changes in the operating expenses.

Changes in Finance costs.

Net profit of Toyota is considerable more

than Hondas.


10/28

Toyota Indus Motors

Balance Sheet Analysis (Vertical & Horizontal)

Years

2006 2007 2008 2009

000 000 % Change 000 % Change 000 %change

Share Capital and

Reserves

786000 0

Issued, Subscribed

and Paid Up Capital

786,000 786,000 0.0% 786,000 0.0% 9510973 9.94

Reserves 5,471,879 7,257,975 32.6% 8,650,340 19.2%

Non-Current Liabilities

Liabilities against

lease finance

3,871 -100.0% 503700 -5.34

Deferred Taxation 116,164 210,149 80.9% 532,138 153.2%

Current Liabilities 3942988 41.14

Trade and Other

Payables

2,599,911 2,892,017 11.2% 2,793,554 -3.4% 5926529 501.0

Advances from

Customers

6,620,869 4,514,480 -31.8% 985,972 -78.2% 673 540.9

Mark up Accrued on

Loans

22,250 715 -96.8% 105 -85.3%

Current Portion of

Liabilities against

lease finance

5735 3714 -0.35% -100.0% 14660

Taxation 195789 -100

Contingencies and

Commitments

20685523 50.46

Total Liabilities and

Equity

15,822,468 15,665,050 -1.0% 13,748,109 -12.2% 786000 0


11/28

2006 2007 2008 2009


Assets

Non-Current Assets

Fixed Assets 1,716,590 2,093,852 22.0% 4,033,762 92.6% 3934473 -2.46

Long Term Loans 1,019 4,240 316.1% 42,341 898.6% 28509 -32.6

Long Term Deposits 5,181 6,629 27.9% 7,222 8.9% 7222 0

Finance under

Musharika

Arrangements

4,021 100.0%

Current AssetsStores and Spares 226,169 227,191 0.5% 232,142 2.2% 128483 -44.65

Stock in Trade 3,959,316 2,859,951 -27.8% 2,637,629 -7.8% 4088858 55.02

Trade Debts 738,281 665,647 -9.8% 1,332,832 100.2% 1736631 30.29

Current Maturity of

Musharika Arrangement

5,811 3,710 -36.2% -100.0%

Loans and Advances 414,338 426,165 2.9% 737,372 73.0% 894459 21.30

Short Term Prepayments 9,134 47,523 420.3% 23,148 -51.3% 16876 -27.09

Accrued Mark up 76,211 132,634 74.0% 35,012 -73.6% 50944 45.50Other Receivables 1,250,217 605,725 -51.6% 64,360 -89.4% 67902 -8.68

Taxation 48,520 100.0% 209,533 331.8% -100

Investments 54,171 100.0% -100

Cash and Bank Balances 7,416,180 8,543,263 15.2% 4,328,585 -49.3% 9731166 124.81

Total Assets 15,822,468 15,665,050 -1.0% 13,738,109 -12.3% 20685523 50.57


12/28

Honda Pakistan

Balance Sheet Analysis (Vertical & Horizontal)

Years2006 2007 2008 2009


Share Capital and

Reserves

Issued, Subscribed

and Paid Up Capital

420,000 714,000 70.0% 1,428,000 100.0% 1428000 0

Reserves 1,579,500 1,991,000 26.1% 1,727,000 -13.3% 1801500 4.31

Un-Appropriated

Profit

705,708 (264,332) -137.5% 74,678 -128.3% -401655 -637.9

Non-Current

Liabilities

Long Term Finances 666,667 1,958,334 193.7% 500,000 -74.5% 1500000 200

Deferred Taxation 5,428 -100.0%

Current Liabilities

Current Position of

Long Term Finances

333,333 583,333 75.0% -100.0%

Short Term Finances 1,454,873 -100.0% 2151601

Mark up Accrued on

Loans

15,719 39,627 152.1% 32,029 -19.2% 75048 134.31

Trade and Other

Payables

3,993,047 3,283,155 -17.8% 3,055,037 -6.9% 3387594 10.88

Contingencies and

Commitments

Total Liabilities and

Equity

9,174,275 8,305,117 -9.5% 6,816,744 -17.9% 9942088 45.84


13/28

2006 2007 2008 2009

Assets 000 000 % Change 000 % Change 000 % change

Non-Current Assets

Property, Plant and

Equipment

1,051,723 4,082,955 288.2% 3,864,527 -5.3% 5190535 34.31

Intangible Assets 33,202 65,903 98.5% 64,636 -1.9% 195830 202.9

Capital Work in

Progress

1,274,230 191,842 -84.9% 80,746 -57.9% 19226 -76.18

Long Term

Investments

509,039 -100.0%

Long Term Deposits 4,091 100.0% 4,091 0.0% 4042 -1.19

Long Term Loans,

Advances and

Deposits

36,163 28,105 -22.3% 29,050 3.4% 31503 8.44

Deferred Taxation 251,008 100.0% 338,165 34.7% 571214 68.91

Current Assets

Stores and Spares 29,736 50,316 69.2% 83,101 65.2% 101942 22.67

Stock in Trade 4,169,120 2,704,946 -35.1% 1,612,696 -40.4% 2954091 83.17

Trade Debts

Short Term

Investments

634,843 -100.0%

Trade and Other

Receivables

1,075,600 706,092 -34.4% 507,852 -28.1% 853218 68.00

Cash and Bank

Balances

360,619 219,859 -39.0% 231,880 5.5% 20487 -91.16

Total Assets 9,174,275 8,305,117 -9.5% 6,816,744 -17.9% 9942088 45.84


14/28

Non Current Assets rose for both.

Current assets decreased for both.

Reduction in current liabilities.

Non current liabilities rose consistently .

Share capital reserves rose till 2008.


15/28

Toyota Indus Motors.

Years

2006 2007 % change 2008 %change 2009 % change

Cash Flow from Operations

Cash Generated from Operations 3,155,420 3,999,589 26.75% (125,517) (1.03) 6538777 -5309.48

Interest and Mark up paid (91,373) (22,207) -75.70% (3,427) (0.85) -8267 141.2314

Workers Profit Participation Fund paid (217,143) (227,390) 4.72% (201,390) (0.11) -105538 -47.5952

Workers Welfare Fund paid (38,804) (67,655) 74.35% (78,562) 0.16 -50069 -36.2682

Interest received 941,148 780,163 -17.11% 702,156 (0.10) 612950 -12.7046

Income tax paid (1,072,738) (1,634,104) 52.33% (1,089,890) (0.33) -465156 -57.3208

Long-term loans net (631) (3,221) 410.46% (13,854) 3.30 13832 -199.841

Long-term deposits (32) (1,448) 4425.00% (593) (0.59) -100

Net Cash From Operations 2,675,847 2,823,727 5.53% (811,077) (1.29) 6536529 -905.907

Cash Flow from Investing Activities

Fixed capital expenditure (1,168,227) (805,259) -31.07% (2,422,406) 2.01 -721823 -70.2022

Proceeds from sale of fixed assets 48,838 46,989 -3.79% 8,952 (0.81) 42806 378.1725

Repayments of finance under musharika

arrangements

33,128 -100.00%

Investment made in listed mutual fund

(25,000) 100.00% (50,000) 1.00 0 -100

Redemption of investment in listed mutual fund 26,313 100.00% (1.00) 55922

Receipts from finance under musharika

arrangements

6,570 100.00% 3,849 (0.41) 0 -100

Net Cash From Investing Activities (1,086,261) (750,387) -30.92% (2,459,605) 2.28 -623095 -74.6669

Cash Flow From Financing Activities

Repayment of obligation against finance lease (31,948) (6,413) -79.93% (3,878) (0.40) 0 -100

Dividend paid (861,457) (939,844) 9.10% (940,118) 0.0003 -510853 -45.6608

Net Cash From Financing Activities (893,405) (946,257) 5.92% (943,996) (0.0024) -510853 -45.884

Net Increase in Cash and Cash Equivalents 696,181 1,127,083 61.90% (4,214,678) (4.74) 5402581 -228.185

Cash and Cash Equivalents at Beginning of Year 6,719,999 7,416,180 10.36%

8,543,263

0.15 4328585 -49.3334

Cash and Cash Equivalents at End of Year 7,416,180 8,543,263 15.20%

4,328,585

(0.49) 9731166 124.8117


16/28

Honda Pakistan

Year


Cash Flow from Operations

Cash Generated from Operations (5,292,805) 1,999,952 -138% 2,078,194 4% -807955

Interest and Mark up paid (30,614) (281,544) 820% (241,249) -14% -179750

Employees Retirement Benefits (5,397) (16,064) 198% (22,756) 42% -18653

Net Increase/ decrease in Long

Term Deposits

140 (2,002) -1530% -100% 49

Net Increase/ decrease in Loan to

Employees

(896) 5,621 -727% (2,123) -138% -2627

Income Tax Paid (184,977) (137,991) -25% (70,502) -49% -256682

Royalty Paid (369,762) (458,478) 24% (256,411) -44% -295642

Workers Profit Welfare

Participation Fund

(64,165) -100%

Net Cash From Operations (5,948,476) 1,109,494 -119% 1,485,153 34% -1461260

Cash Flow from Investing Activities

Purchase of Property, Plant and

Equipment

(1,802,496) (2,450,118) 36% (159,779) -93% -1958056

Purchase of Intangible Assets (30,565) (100,922) 230% (28,713) -72% -91472

Proceeds from Sale of Property,

Plant and Equipment

13,522 5,457 -60% 27,937 412% 105252

Investments (300,000) -100%

Proceed from Sale of Investments 1,140,214 100% -100%

Dividends Received 12,507 100% -100%

Interest Received 193,964 55,900 -71% 15,188 -73% 42562

Net Cash From Investing Activities (1,925,575) (1,336,962) -31% (145,367) -89% -1901714


17/28

Honda Pakistan


Cash Flow From

Financing Activities

Issue of Right Shares 714,000 100% 0 -100

Long Term Finances 1,000,000 1,541,667 54% (2,041,667) -232% 1000000 -148.98

Short Term Borrowing 1,150,000 (1,150,000) -200% -100%

Dividends Paid (94,190) (86) -100% (98) 14% -20 -79.5918

Net Cash From

Financing Activities

2,055,180 391,581 -81% (1,327,765) -439% 999980 -175.313

Net Increase in Cash

and Cash Equivalent

(5,818,241) 164,113 -103% 12,021 -93% -2362994 -19757.2

Cash and Cash

Equivalent at

Beginning of Year

5,873,987 55,746 -99% 219,859 294% 231880 5.467595

Cash and Cash

Equivalent at End of

Year

55746 219,859 294% 231,880 5% -2131114 -1019.06


18/28

Changes in Cash and Cash Equivalents.

Changes in Operating Activities.

Outflows in investing activities.

Outflows in financing activities .


19/28


20/28

Current Ratio

Quick Ratio

Receivables Turnover and Average Collection

Inventory Turnover and Inventory Processing


21/28

Payable Turnover Ratio and Average

Payment Period

Cash Conversion Cycle

Total Asset Turnover

Fixed Asset Turnover


22/28

Equity Turnover

Gross Profit Margin

Operating Profit Margin

Net Profit Margin


23/28

Return on Total Assets

Return on Total Equity

Debt to Equity Ratio

Interest Coverage Ratio


24/28

From Bank Alfalah Pakistan.

Secured credit line of Rs. 200,000,000.

Economic crises effecting revenues.

In 2009 sales figure fell by 8.59%

Profit figure reduced by 39.5%

Funding for working capital needs.


25/28

Strong reputation and image in the market.

Loan required for supporting its operations.

Repay the loan from the profit earned.

Fixed assets as collateral against the loan.

Company in complete position to repay the

loan.


26/28

Pro-Forma Income Statement.

2009 2010 2011 2012

000 % change 000%change

000 %change 000%change

Sales 37,864,604 -8.59 38924813 2.8 40014707 2.799 41135119 2.80

Cost of Sales 35540418 -5.4 36535549.79 2.8 37558544. 2.799 38610183.9 2.80

Gross Profit 2324186 -39.60 2389263.2 2.8 2456162.5 2.799 2524935.1 2.80

Distribution & Mrkt.Expenses

469985 -3.56 483144.5 2.8 496672.61 2.799 510579.4 2.80

Administrative Expenses 352249 18.48 352249 0 352249 0 352249 0

Other Operating Income 727080 -7.59 747438.2 2.8 768366.49 2.799 789880.76 2.80

Other Operating Expense 156479 -48.89 160860.4 2.8 165364.5 2.799 169994.70 2.81

Profit/Loss From

Operations

2072553 -41.52 2140447.4 3.27 2210242.9 3.260 2281992.7 3.24

Finance Costs 26540 861.52 36000 35.64 36000 0 36000 0

Profit/Loss BeforeTaxation

2046013 -42.23 2104447.4 2.85 2174242.9 3.31 2245992.7 3.29

Taxation 660911 -47.16 736556.6 11.44 760985.0 3.31 786097.4 3.29

Profit/Loss For The Year 1385102 -39.53 1367890.8 -1.24 1413257.8 3.31 1459895.2 3.29


27/28

Pro-Forma Balance Sheet.

2010 2011 % change 2012 % Change

ASSETSNon current

Fixed Assets 4044638 4157888 2.80 4274308.931 2.80

Long term loans and advances 28509 28509 0 28509 0

Long term deposits 7222 7222 0 7222 0

Current Assets

Stores and spares 132080.5 135778.8 2.80 139580.5828 2.80

Stock in trade 4203346 4321040 2.80 4442028.772 2.80

Trade debts 1785257 1835244 2.80 1886630.66 2.80

Loan and advances 894459 894459 0 894459 0

Prepayments 17348.53 17834.29 2.80 18333.6466 2.80Other Receivables 69803.25 71757.75 2.80 73766.96321 2.80

Cash and bank balances 10003638 10283740 2.80 10571685.14 2.80

Total Assets 21186301 21753473 2.67 22336524.7 2.68

EQUITY

Authorized capital 1000000 1000000 0 1000000 0

Issued, subscribed, paid-up 786000 786000 0 786000 0

Reserves 10878863 12292121 12.99 13752016 11.87

Total equity 11664863 13078121 12.11 14538016 11.16

LIABILITY

Noncurrent Liabilities

Deferred Tax 736556 736556 736556

Long Term Debt 200000 200000 0 200000 0

Current Liability 0 0

Trade and other payables 4053392 4166887 4283559.40

Advances from customers anddealers

6092472 6263061 2.80 6438426.655 2.80

Total Liability 11082419 11366503 2.80 11658542.06 2.80

Total Liability and equity 22747282 24444624 2.56 26196558.06 2.56


28/28

toyota indus

Documents

Transcript of toyota indus