Atlas Group Report

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Submitted By:
Muhammad Usman Aamir (19959)

Sana Liaquat (24468)

Abdul Wassay ()

Nazima Abdul karim (17006)
Nateesh Anand (17785)

Analysis of Financial Statement, Mon (6-9)

Mr. Mohammad Ali Saeed

May,11th 2015

EXECUTIVE SUMMARY

Starting with an initial capital of Rs.500,000/-, Mr Yusuf H.Shirazi, the Founder of Atlas Group, established an investment company, Shirazi Investments (Private) Limited (SIL). This event marked the birth of Atlas Group.During this period Atlas Group grew rapidly.With this momentum, in 1966, Mr.Yusuf H.Shirazi signed a technical collaboration agreement with Japan Storage Battery Co.Ltd.Japan (now Known as GS Yuasa Corporation) for production and sale of Japanese quality batteries in Pakistan. The fruitful partnership started production in 1969 with the genesis of the brand "AGS" - where "A" stands for Atlas and "GS" stands for Genzo Shmadzu (the founder of Japan Storage battery Co.,Japan).

The Company manufactures a wide range of polypropylene batteries suitable for passenger cars, trucks, tractors, heavy vehicles, motor cycles, construction and road-building equipment.as well as stationary and industrial applications.

Having the Spark to move ahead, the Company has experienced tremendous success over the years and expanded its production capacity to meet market demand. With latest Japanese technology, a large dealership network and comprehensive after sale service, the Company today has earned a reputation as manufacturer of highest quality products and thus living up to our tagline...

The Company is cognizant of the high demand for batteries in the country due to prevailing energy crisis and increasing number of vehicles on the road.Hence your company is dedcated to providing the Power that Moves you.

Mission statement

Ensuring customer satisfaction through the highest degree of quality and service with innovation and dynamic management while meeting stakeholders' expectations and serving as a model corporate citizen.

Vision

A leading innovative organization, manufacturing and marketing superior quality automotive, motorcycle and industrial batteries for domestic and international market.

Comments on three years Balance Sheet

Property, Plant and Equipment

Increase in property, plant and equipment over the years is mainly due to gradual capacity expansion to meet the growing demand of the batteries.

Stock-in-trade

The increase in stock-in-trade is in line with increase in cost of goods sold over the years. The increased production capacity over the years has lead to the demand of raw materials. Last fiscal year the inventory level was considerably higher due to the last quarter inventory buildup.

Investments

The rise in investments is a strategic decision to invest excess cash flows with long term perspective to earn differential returns. The high rate of return and stability has lead to increase in investments in mutual funds.

Taxation

The contribution to national exchequer has sizably increased over the years as a result of increase in sales and imports. The current taxation charge over the years has increased in line with increase in profits over last six years.

Trade and other payables

The Company's policy to have zero credit limits and sell only on cash has increased the customers' advances and balances over the years which resultantly have increased trade and other payables.

Short term borrowings

Short term borrowings have not significantly changed over last year but have increase over last six years due to working capital requirement. Capacity expansion is backed mainly through own funds generation and partly by short term borrowings.

Comments on three years Profit and Loss Account

Sales

Sales have accelerated mainly on account of improved demand in the replacement segment, both in locally manufactured and imported used cars categories. Further, the electricity shortage continued to fuel demand for heavy and medium sized batteries used in Uninterruptible Power Supply (UPS) units and generators which also contributed to increase in sales.

Cost of Sales

Cost of sales was consistent over the years and increased in line with sales. The fluctuation in international commodity prices results in variation of slight increase and decrease in cost of sales over the years. In the current year a decreasing trend was observed in raw material prices resulting in reduction of cost of sales to sales percentage.

Gross Profit

During last six years, gross profit margin remained above 13% reflecting sales volumes increase and measures to control costs. In the current year the gross profit margin jumped up to 14.9% due to the reduction in cost of sales due to the reduced rates of raw materials.