Cash flow statement

Direct method
2013 2012 2011 2010 2009
Cash Flows from Operating Activities
Cash received from customers 38,069 39,849 29,963 20,984 14,812
Cash paid for goods and services -34,104 -35,249 -27,563 -20,053 -14,324
Finance costs paid -854 -982 -938 -567 -531
Taxes paid -680 -333 -314 -193 -50
Retirement benefits paid -74 -71 -69 -16 -21
Net cash generated from operating activities 2,356 3,214 1,080 156 -113

Cash Flows from Investing Activities

Purchases of:
property, plant and equipment -5,246 -2,549 -3,403 -2,055 -1,784
intangible assets -20 -74 -33 -44 -11
biological asse -6 -4 - -129 -17
Proceeds from disposal of:
property, plant and equipment 231 73 16 20 31
biological assets 58 37 20 63 13
Advance against purchase of shares of:
Engro Foods Netherlands B.V. -237 -863 - - -
Investment in Engro Eximp AgriProducts - - -350 -827 -153
Proceeds from disposal of investment in:
Engro Eximp AgriProducts (Private) Ltd. - - 1,408 - -
Net cash utilized in investing activities -5,221 -3,379 -2,341 -2,972 -1,921

Cash Flows from Financing Activities

Proceeds from issue of share capital 105 186 1,264 - -
Advance received against issue of share capital -1 1 - 1,577 1,073
Share issuance costs - - -37 - -
Proceeds from long term finances 2,378 2,099 1,450 1,500 700
Proceeds from tax lossed to ECPL
the Holding Company - - - - 450
Repayments of:
long term finances -1,933 -465 -200 -117 -58
obligations under finance lease -3 -3 -3 -5 -10
Net cash generated from financing activities 547 1,819 2,474 2,955 2,155

Net increase in cash and cash equivalents -2,318 1,653 1,212 140 121
Cash & cash equivalents at beginning of the year 3,045 1,392 180 41 -80
Cash & cash equivalents at end of the year 727 3,045 1,392 180 41
 HORIZONTAL AND VERTICAL ANALYSIS profit and loss account

Horizontal Analysis (Rs in Million) 2013 13 vs 12 2012 12 vs 11 2011 11 vs 10 2010

Sales 37891 -5.7 40169 34.5 29859 42.6 20945

Cost of Sales 29718 -0.4 29848 28.5 23230 40.3 16552
Gross profit 8173 -20.8 10321 55.7 6629 50.9 4393
Distribution and marketing expenses 5017 7.8 4654 25.2 3716 27.6 2913
Administrative expenses 966 21.4 796 57.6 505 6.8 473
Other Operating expenses 340 -20.9 430 105.7 209 58.3 132
Other income 324 -15.1 382 79.3 213 287.7 55
Operating profit/(loss) 2174 -54.9 4823 100 2412 159.4 930
Other expenses 881 100
Finance cost 785 -13 903 -14 1049 59 660
Net profit before taxation 508 -87.1 3921 187.6 1363 404.1 270
Provision for taxation -297 -77.6 -1326 180.9 -472 399.6 -94
Net profit after taxation 211 91.9 2595 191.2 891 406.5 176

Vertical Analysis (Rs in Million) 2013 2012 2011 2010

RS % RS % RS % RS
Sales 37891 100 40169 100 29859 100 20945
Cost of Sales 29718 78.4 29848 74.3 23230 77.8 16552
Gross profit 8173 21.6 10321 25.7 6629 22.2 4393
Distribution and marketing expenses 5017 13.2 4654 11.6 3716 12.4 2913
Administrative expenses 966 2.5 796 2 505 1.7 473
Other Operating expenses 340 0.9 430 1.1 209 0.7 132
Other income 324 0.9 382 1 213 0.7 55
Operating profit/(loss) 2174 5.7 4823 12 2412 8.1 930
Other expenses 881 2.3 - - - - -
Finance cost 785 2.1 903 2.2 1049 3.5 660
Net profit before taxation 508 1.3 3921 9.8 1363 4.6 270
Provision for taxation -297 -0.8 -1326 -3.3 -472 -1.6 -94
Net profit after taxation 211 0.56 2595 6.5 891 3 176
 10 vs 09 2009

42.8 14665
38.5 11949
61.7 2716
10.3 2640
36.3 347
187 46
-68.8 176
-760.6 -141

28 515
-141.2 -656
-142.4 223
-140.6 -433

2010 2009
% RS %
100 14665 100
79 11949 81.5
21 2716 18.5
13.9 2640 18
2.3 347 2.4
0.6 46 0.3
0.3 176 1.2
4.4 -141 -1
- - -
3.1 515 3.5
1.3 -656 -4.5
-0.5 223 1.5
0.8 -433 3
 RATIOS

Ratios 2013 2012 2011 2010 2009

Profitability Ratios
Gross Profit ratio 21.6% 25.7% 22.2% 21.0% 18.5%
Net Profit to Sales 0.6% 6.5% 3.0% 0.8% -3.0%
EBITDA Margin to Sales 7.7% 15.1% 11.3% 7.9% 2.5%
Return on Equity 2.0% 25.9% 12.3% 3.4% -12.9%
Return on Capital employed 1.2% 18.0% 7.9% 2.1% -7.1%

Liquidity Ratios
Current ratio 1.7 2.1 1.8 1.5 1.3
Quick / Acid test ratio 0.9 1.2 0.9 0.5 0.6
Cash to Current Liabilities 0.1 0.1 0.1 0.1 0.1
Cash flow from Operations to Sales 0.1 0.1 0 0 0

Activity / Turnover Ratios

No. of Days Inventory 40.4 37.5 37.1 35.9 36.7
No. of Days Receivables 1.5 1.1 0.8 0.7 0.4
No. of Days Payables 44.1 32.9 39.4 44.1 47
Operating cycle -2.2 5.6 -1.4 -7.5 -9.9
Inventory turnover 9 9.7 9.8 10.2 9.9
Debtors turnover 250.4 340.1 429.6 547.1 881.9
Creditors turnover 8.3 11.1 9.3 8.3 7.8
Total Assets turnover ratio / Fixed Assets turnover
ratio 1.6 1.8 1.8 1.7 1.6

Investment / Market Ratios

Earnings per Share (EPS) and diluted EPS 0.3 3.4 1.2 0.3 -1
Price Earnings ratio 373 28.6 18.5 0 0

Capital Structure Ratios

Long-term Debt to Equity 39.9% 37.5% 43.7% 47.5% 49.7%
 HORIZONTAL AND VERTICAL ANALYSIS
Balance Sheet
Horizontal Analysis (Rs in Million) 2013 13 vs 12 2012 12 vs 11 2011
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 14,505 31.6 11,023 14.6 9,615
Long term investments - - - - -
Biological assets 716 7.3 668 34.4 497
Intangible assets 123 17 105 -21.6 134
Long term advances, deposits and prepayments 93 13.6 82 241.7 24
Deffered employee share compensation expense 169 100 - - -
Investments in Engro Foods Netherlands B. V. - 100.0) 863 100 -
Investments in subsidiary 427 100 - - -
16,033 25.8 12,741 24.1 10,270
CURRENT ASSETS
Store, spares and loose tools 740 21.1 611 6.8 572
Stock-in-trade 3,084 -11.8 3,495 32.5 2,638
Trade debts 154 3.1 149 71.3 87
Advances, deposits and prepayments 181 -30.9 262 -1.5 266
Other receivables 2,354 63.5 1,440 24.1 1,160
Deffered employee share compensation expense 136 100 - - -
Taxes recoverable 637 83.4 347 33.7 10
Derivative financial instruments - 100 26 100 -
Short term investments 170 -93.7 2,708 109.3 1,294
Cash and bank balances 557 32.1 422 20.2 351
8,013 -15.3 9,460 48.3 6,378
TOTAL ASSETS 24,046 8.3 22,201 33.4 16,648

EQUITY AND LIABILITIES

EQUITY
Share capital 7,666 0.7 7,616 1.3 7,518
Share premium 865 6.8 810 12.2 722
Advance against issue of shares - -100 1 100 -
Employee compensation reserve 407 100 - - -
Hedging reserve -10 -156.4 17 -194.4 -18
Remeasurement of post employment benefits -
Actuarial loss -35 51.8 -23 29.5 -18
Unappropriate profit / (Accumulated loss) 1,821 13.1 1,610 -263.5 -985
10,715 6.8 10,031 38.9 7,219
NON-CURRENT LIABILITIES
Long term finances 7,127 18.3 6,023 7.4 5,610
Obligation under finance lease - - - -100 3
Deferred taxation 1,539 -6.9 1,653 436.7 308
Deferred liabilities - - - -100 2
Deferred income 10 -41.2 17 100 -
8,676 12.8 7,693 29.9 5,923
CURRENT LIABILITIES
Current portion of
long term finances 1,032 -38.8 1,686 262.6 465
Obligation under finance lease - -100 3 - 3
Trade and other payables 3,369 40.7 2,394 1 2,371
Derivative financial instruments 15 100 - -100 28
Accrued interest / mark up on
Long term finances 229 -24.1 302 -17.9 368
Short term finances 10 47.7 7 -65 20
Short term finances - -100 85 -66.3 252
4,655 4 4,477 27.7 3,506
TOTAL EQUITY AND LIABILITIES 24,046 8.3 22,201 33.4 16,648
11 vs 10 2010 10 vs 09 2009

34.5 7,148 23.1 5,809

-100 980 540.5 153
16 428 -2.2 438
-5.9 142 408.7 28
3.8 23 194.7 8
- - - -
- - - -
- - - -
17.7 8,722 35.5 6,436

29.4 442 52.4 290

26.3 2,089 79.5 1,164
67.3 52 108 25
9 244 -28 339
60.9 721 26 572
- - - -
11.1 9 -71 31
-100 1 100 -
- - - -
95 180 21.6 148
70.6 3,738 45.5 2,569
33.6 12,460 38.4 9,005

7.4 7,000 29.1 5,423

100 - - -
- - - -
- - - -
100 - - -

100 - - -
-47.5 -1,876 -8.6 -2,052
40.9 5,124 52 3,371

21.3 4,625 39.1 3,325

-50 5 -37.5 8
 70.2 181 -39.9 301
-33.3 3 - 3
- - - -
23 4,814 32.4 3,637

132.5 200 70.9 117

-37.5 4 -20 5
16.2 2,041 29 1,582
100 - - -

33.8 275 50.3 183

900 2 - 2
- - -100 108
39 2,522 26.3 1,997
33.6 12,460 38.4 9,005
Vertical Analysis (Rs in Million) 2013 13 vs 12 2012 12 vs 11 2011
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 14,505 60.3 11,023 49.7 9,615
Long term investments - - - - -
Biological assets 716 3 668 3 497
Intangible assets 123 0.5 105 0.5 134
Long term advances, deposits and prepayments 93 0.4 82 0.4 24
Deffered employee share compensation expense 169 0.7 - - -
Investments in Engro Foods Netherlands B. V. -Net - - 863 3.9 -
Investments in subsidiary 427 1.8 - - -
16,033 66.7 12,741 57.4 10,270
CURRENT ASSETS
Store, spares and loose tools 740 3.1 611 2.8 572
Stock-in-trade 3,084 12.8 3,495 15.7 2,638
Trade debts 154 0.6 149 0.7 87
Advances, deposits and prepayments 181 0.8 262 1.2 266
Other receivables 2,354 9.8 1,440 6.5 1,160
Deffered employee share compensation expense 136 0.6 - - -
Taxes recoverable 637 2.6 347 1.6 10
Derivative financial instruments - - 26 0.1 -
Short term investments 170 0.7 2,708 12.2 1,294
Cash and bank balances 557 2.3 422 1.9 351
8,013 33.3 9,460 42.6 6,378
TOTAL ASSETS 24,046 100 22,201 100 16,648

EQUITY AND LIABILITIES

EQUITY
Share capital 7,666 31.9 7,616 34.3 7,518
Share premium 865 3.6 810 3.6 722
Advance against issue of shares - - 1 - -
Employee compensation reserve 407 1.7 - - -
Hedging reserve of post employment benefits -
Remeasurement -10 0 17 0.1 -18
Actuarial loss -35 -0.1 -23 -0.1 -18
Unappropriate profit / (Accumulated loss) 1,821 7.6 1,610 7.3 -985
10,715 44.6 10,031 45.2 7,219
NON-CURRENT LIABILITIES
Long term finances 7,127 29.6 6,023 27.1 5,610
Obligation under finance lease - - - - 3
Deferred taxation 1,539 6.4 1,653 7.4 308
Deferred liabilities - - - - 2
Deferred income 10 0 17 0.1 -
 8,676 36.1 7,693 34.7 5,923
CURRENT LIABILITIES
Current portion of
long term finances 1,032 4.3 1,686 7.6 465
Obligation under finance lease - - 3 0 3
Trade and other payables 3,369 14 2,394 10.8 2,371
Derivative financial instruments 15 0.1 - - 28
Accrued interest / mark up on
Long term finances 229 1 302 1.4 368
Short term finances 10 0 7 0 20
Short term finances - - 85 0.4 252
4,655 19.4 4,477 20.2 3,506
TOTAL EQUITY AND LIABILITIES 24,046 100 22,201 100 16,648
11 vs 10 2010 10 vs 09 2009

57.8 7,148 57.4 5,809

- 980 7.9 153
3 428 3.4 438
0.8 142 1.1 28
0.1 23 0.2 8
- - - -
- - - -
- - - -
61.7 8,722 70 6,436

3.4 442 3.5 290

15.8 2,089 16.8 1,164
0.5 52 0.4 25
1.6 244 2 339
7 721 5.8 572
- - - -
0.1 9 0.1 31
- 1 - -
7.8 - - -
2.1 180 1.4 148
38.3 3,738 30 2,569
100 12,460 100 9,005

45.2 7,000 56.2 5,423

4.3 - - -
- - - -
- - - -
-0.1 - - -
-0.1 - - -
-5.9 -1,876 -15.1 -2,052
43.4 5,124 41.1 3,371

33.7 4,625 37.1 3,325

0 5 0 8
1.9 181 1.5 301
0 3 0 3
- - - -
35.6 4,814 38.6 3,637

2.8 200 1.6 117

0 4 0 5
14.2 2,041 16.4 1,582
0.2 - - -

2.2 275 2.2 183

0.1 2 0 2
1.5 - - 108
21.1 2,522 20.2 1,997
100 12,460 100 9,005