Project report - crestex

Page 1 of 69

Project report - crestex

By | March 2013
Page 1 of 69
Acknowledgement

This Project Documentation and Report is a part of my “Analysis of Financial Statements”, whereby this course has proved to be a great enlightening and embarking experience. I would like to express my gratitude to and I am also extremely grateful to the Instructor; Mr. Shuja Ali Khan who gave me the opportunity to explore my inner capabilities, inner depth bounds of accounting and financial analysis, compilation, documentation and reporting, as well as implementation of academic acquisition of Enhanced Accounting and Financial Reporting Skills in Real Life. I would again express gratitude to him for his guidance and useful support in this project.

Table of Contents| Page No|
Textile Sector - Industry Overview| 4|
Pakistan Textile Industry – SWOT | 9|
Textile Value Chain| 10|
Crescent Textile Mills Limited – Crestex Overview| 27|
Vertical Common - Size Analysis of theFinancial Statements| 34| Horizontal Analysis of the Financial Statements| 61|
Financial Ratio Analysis of the Financial Statements| 69| Future Prospects of Crestex| 81|
Future Outlook of Textile Sector – Industry Stance| 82|

Textile Sector - Industry Overview

The share of textile industry in the economy along with its contribution to exports, employment, foreign exchange earnings, investment and value added makes it the single largest manufacturing sector for Pakistan. It contributes around 8.5 percent to GDP, employs 38 percent of the total manufacturing labor force, and contributes between 60-70 percent to total merchandise exports. Indeed, with exports reaching about $8.6 billion in 2004-05, Pakistan is one of the largest textile exporters in the world.

The variety of products ranges from cotton yarn to knitwear. Garment made-ups and bed wear are the most important export products with an export value of about $1.35 billion each. Knitwear, ready-made garments and cotton yarn also have important shares in total exports. Overall,...