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Litro Gas is the largest importer and supplier of LP Gas in Sri Lanka. We operate the country’s only import terminal and filling facility which has the capacity to cater to the LPG needs of the entire Island. The Company is the oldest gas supplier in the country and has comprehensive coverage through an island wide network.
Throughout the years the Company has invested in developing the Liquefied Petroleum Gas (LPG) market in Sri Lanka. Along with its associate company Litro Gas Terminal Lanka (Pvt) Ltd, the Company has successfully developed the infrastructure in Sri Lanka to cater to the country’s needs.
The Company is the leader in marketing and selling LPG in Sri Lanka. Sri Lanka only produces approximately 5% of its internal demand, therefore the country depends on imported LPG to bridge the growing gap between demand and the limited production by Ceylon Petroleum Corporation (CPC) refinery
With the ownership changes in November 2010, the LPG Storage terminal was re-named Litro Gas Terminal Lanka (Private) Limited. The terminal facility consists of an 8,000 mt import and storage terminal and a modern LPG road tanker fleet. The terminal facility observes the highest levels of safety and has won numerous safety awards from the Shell Group and at the National Safety Awards. In 2000, the Terminal was placed the Runner-up of the Industrial Safety Award; in 2003, it won the "All Island National Safety Award", the Terminal was recognized as the 1st Runner-up of the Industrial Safety Award in 2004 and 2006 and in 2008, it was recognized as the All Island Winner of the National Safety Award. Litro Gas also operates its’ latest addition of terminal operations in Hambanthota consists of an 3000 mt storage facility.
It’s filling plant and bridging operations will commence by approximately July 2017. Today the total storage facility of Litro Gas is 11,000 mt. Litro Gas operates an LPG cylinder filling Plant situated in same premises where terminals in kerawalapitiya at world class standards. The filling plant has been recognized in the past for its safety performance - internationally by Shell Global and locally, at the National Safety Awards.
In 1999, it received a Merit Award at the National Safety Awards. In 2001, the Filling Plant emerged as the Winner of the Western Province. At the 2003 and 2006 National Safety Awards, the filling plant was recognized as the 1st Runner-up. In 2008, it emerged as the All Island Winner of the National Safety Award. Today, filling plant has the capacity of refilling more than 125,000 cylinders per day
As at 31st March 2013,2014,2015 2015/2014 2013/2012 2012/2011
Rs.000’s Rs.000’s Rs.000’s
Property, Plant & Equipment 93,245,455,452.00 55,995,714.00 682,182,700.00
Investment Properties 2,366,521.00 214,399,397.00 43,081,516.00
Leasehold Property - - -
Investments in Subsidiaries 468,247,916.00 628,247,909.00 743,247,902.00
Investments in other companies 14,246,349.00 18,326,346.00 6,010,876.00
1,827,117,428.00 1,622698,366.00 1,382,522,994.00
Inventories 1,531,204,093.00 1,92,601,348.00 1,306,369,217.00
Trade & Other Receivables 1,887,648,663.00 1,988,712,842.00 1,504,009,244.00
Cash and Bank 322,911,027.00 233,369,067.00 559,183,598.00
3,897,763,773.00 4,146,683,250.00 3,363,562,059.00
Total Assets 5,824,881,201.00 5,727,572,616.00 4,752,085,053.00
EQUITY AND LIABILITIES
Equity Attributable to Equity Holders of the Parent
Stated Capital 301,884,200.00 301,884,200.00 301,884,200.00
Capital reserve 658,339,792.00 330,855,735.00 330,855,735.00
General reserve 800,265,254.00 800,265,254.00 800,265,254.00
Retained earning 1,091,535,837.00 895,876,905.00 887,304,997.00
Total equity attributable to equity holders of the company
2,729,629,829.00 2,206,486,840.00 2,197,914,932.00
minority interest - -
Total Equity 2,729,629,829.00 2,206,486,840.00 2,197,914,932.00
Interest Bearing Loans & Borrowings - - -
Dfined benefit obligations 117,579,660.00 96,735,857.00 87,970,682.00
Deferred Tax Liabilities 56,237,826.00 7,748,410.00 3,110,591.00
Borrowings 200,000,000.00 300,000,000.00 400,000,000.00
Finance lease Obligations 46,313.00 540,068.00 980,695.00
367863,799.00 398024,325.00 455,061,968.00
Current Liabilities Trade and Other Payables 1,407,323,592.00 1,472,542,570.00 459,860,446.00
Income Tax Payable 89,631,262.00 32,514,020.00 50,489,742.00
Finance lease oblication 164,768.00 776,110.00 429,095.00
Borrowings 1,148,406,691.00 1,464,228,751.00 1,870,928,868.00 2,645,526,313.00 3,013,061,451.00 2,063,108,151.00
Total Equity and Liabilities 5,824,881,201.00 5,727,572,616.00 4,752,085,053.00
Year ended 31st March
2013/2014 2012/ 2013
Rs. Rs. Rs.
Revenue 4,321 ,012, 411.0 0
4,988,843,384.00 3,325, 236,5 20.00
Cost of Sales (3786 ,948, 390.0 0)
(4,792,692,708.00) (3,00 2,153, 423.0 0)
Gross Profit 535,0 64,02 1.00
189,150,676.00 319,0 83,09 7.00
Other Operating Income
46,24 5,131 .00
44,792,335.00 39,96 6,873. 00
(179, 909,9 39.00 )
(181,312,634.00) (189, 891,2 52.00 )
(132, 207,9 69.00 )
(97,492,545.00) (118,5 76,81 8.00)
operating profit 493,9 31,24 4.00
202,996,832.00 55,87 4,901. 00
Finance Expense (169, 491,0 40.00 )
(172,203,829.00) (204, 101,1 65.00 )
Profit Before Tax 313,9 00,20 4.00
33,894,003.00 (146, 853,2 64.00 )
Income Tax Expense (76,3 15,69
(25,322,096.00) 36,98 0,638.
6.00) 00 Profit for the Period
236,5 94,50 8.00
8,632,907.00 (110,9 01,62 6.00)
There are several ratios that can be used for evaluating profitability of a business. As a group these ratios allow the analyst to evaluate the film's earning with respect to a certain levels of assets, or sales. Most commonly used profitability ratios are
1. Gross profit ratio.
2. Net profit ratio.
3. Return on investment (ROI)
4. Return on capital employed (ROCE)
5. Assets turnover.
Gross profit ratio
The ratio explains the relationship between the gross profit and the sales turnover.
It can also be useful to compere the gross profit margin across similar business although there will often be good reasons for any disparity.
Net profit ratio/ net profit margin/ operating ratio
This ratio measures the percentage of each rupee of sales that result in net profit.
The higher the rate of net return on sales, the better, and the lower the relative cost of sales and other expenses.
Return on investment (ROI)
Return on investment is probably one of the most useful measures of profitability and efficiency of a business.
Return on equity (ROE)
This ratio shows the profit attributable to the amount invested by the owners of the business. It also shows potential investors into business what they might hope to receive as a return. The stockholders. Includes share capital,share premium, distribute and non-distributable reserves.
Return on capital employed (ROCE)
This ratio is a slight variation of return on investment. The ratio. Indicates how well the long- term finance is being used to generate operating profit. People who are investing their money is a business are interest in the return the business is earning on that capital expressing.
Assets turn over
This ratio indicate the efficiency with which the firm is able to use its assets to generate sales revenue. It shows how many rupees in sales are produced by each rupee invested in assets.
These ratios are used to evaluate the short term. Financial position of an entity.
The availability of cash or the ability of the business to convert its other assets quickly into cash is referred to as it liquidity is an important aspect of ratio analysis.
Because a firm that cannot meet its short term financial obligation may not be able to operate on long run.
Most widely used liquidity ratio is:
1. Current ratio.
2. Quick assets ratio or Acid ratio
The current ratio expresses the relationship between the firm's current assets and current liabilities.
Current assets normally include cash, marketable securities, accounts receivable and inventory.
Current liabilities consist of accounts payable, short term notes payable, short-term loans, current maturities of long term debt, accrued income taxes and other accrued expenses.
Quick assets ratio
This ratio is to overcome one of the limitations in the current ratio. That is the current ratio does not take in to account the composition of current assets and current liabilities. Generally inventory which is not necessarily being converted quickly into cash in the event of emergency, is deducted from the current assets. However, some argue that pre-paid expenses should also be excluded because they cannot be converted into cash.
Efficiency ratio (assets management/ activity ratio)
1. Assets turnover ratio
Sales: capital employed (net assets turn over)
Sales: fixed assets (fixed assets turn over)
2. Stock turn over
3. Debtor collection period
4. Trade debtors turn over
5. Creditors payment period
Sales: capital employed
This ratio measure of how effective the assets are being used to generate sales. If the ratios high, the organization have capability of employ profit.
Stock turnover ratio
This is measure of the number of time that stock 1/= bought and sold during a year. It indicate the efficiency of the firm in selling its product. It is calculated by cost of sales over average stock.
Debtor's collection period
This is measure of the average time taken by customers to settle their debts.
The shorter the average collection period, the better the quality of debtors, as a short collection period implies the prompt payment by debtors.
The average collection period should be compared against the firm's credit terms and policy to judge its credit and collection efficiency.
An excessively long collection period implies a very liberal and inefficient credit and collection performance.
Gearing is measure of the relationship between the amount of finance provided by external parties (Eg:- loan capital) to the total capital employed.
Interest coverage ratio
This ratio measures the ability of a firm's operation to provide protection to long-term creditor.
Investor ratio/market strength
There are set of ratio, which focus on the expectation of the investors. Expectation of the investors very to a great extent with the personal economic circumstances and overall economic outlook. The set of ratios in this category includes.
1. Earnings per share (EPS)
2. Price earnings ratio (P/E Ratio)
3. Dividend yield
4. Dividend cover
Ratio Analysis Summary Profitability Ratio
Type of Ratio Formula 2013/2012 2012/2011
Gross Profit Ratio (Gross Profit ) *100
(Net Sales Turn over)
8.7% 2.44% 1.63%
Net Profit Ratio (Net Profit) *100
(Net Sales Turn over)
8.70% 3.97% 1.63%
Return on Investment (ROI)
Net Profit Before Interest & Tax *100
Average Total Asset
11.81% 4.83% 2.20%
Return on Capital Employed (ROCE)
Net Profit Before Interest & Tax *100
Total Assets-Current Liabilities
5.69% 2.63% 1.29%
Asset Turn over Net Sales Turn over
Average Total Asset
1.8% 1.9% 1.2%
Current Ratio Current Assets
1.39:1 1.36:1 1.68:1
Quick Asset Ratio Current Assets - (Invtory + Pre Paid
0.87:1 0.70:1 0.90:1
Sales: Capital Employed Sales Revenue
Average Net Assets
2.58/= 2.12/= 1.50/=
Sales: Fixed Assets Sales Revenue
3.12/= 3.50/= 2.49/=
Stock Turn Over Ratio Cost of Sales
Stock Turn Over Period 365
Stock Turn Over Ratio
121 Days 182 Days 182 Days
Debtors collection Period Average debtors *365
122 Days 135 Days 136 Days
Creditors payment Period Average Creditors *365
Cost of sales
83Days 105 Days 51 Days
Gearing Ratio Loan Capital *100
total capital employed
6.59 % 7.19% 10.38%
Interest coverage ratio Net Profit Before Interest and Tax
2.79:1 1.20:1 0.30:1
Ratio Analysis calculation
2014/2015 2013/2014 2012/2013 Net Profit Ratio
Revenue 4,321,012,411.00 4,988,843,384.00 3,325,236,520.00
Operating profit 493,931,244.00 202,996,832.00 55,874,901.00 100.00 100.00 100.00 8.7647 2.4697 1.6378
Return on Investment (ROI) Operating profit 493,931,244.00 202,996,832.00 55,874,901.00
Total Assets 5,824,881,201.00 5,727,572,616.00 4,752,085,053.00 100 100 100 11.81 4.8351 2.2082
Return on Capital Employed (ROCE) Operating profit 493,931,244.00 202,996,832.00 55,874,901.00 Total Assets 5,824,881,201.00 5,727,572,616.00 4,752,085,053.00 Current Liabilities 367863,799.00 398024,325.00 455,061,968.00 100 100 100 5.6987 2.6339 0.7898
Asset Turn over Revenue 5,553,012,411.00 5,181,843,384.00 3,495,236,520.00 Total Assets 5,724,881,201.00 5,627,572,616.00 4,752,085,053.00 Current Liabilities 2,645,526,313.00 3,013,061,451.00 2,063,108,151.00 1.803303813 1.981954965 1.299838804
Current Ratio Current Assets 3,897,763,773.00 4,146,683,250.00 3,363,562,059.00
Current Liabilities 3,897,763,773.00 4,146,683,250.00 3,363,562,059.00 1.3965 1.3661 1.6892
Quick Asset Ratio Current Assets 3,897,763,773.00 4,146,683,250.00 3,363,562,059.00 Inventories 1,531,204,093.00 1,92,601,348.00 1,306,369,217.00
Current Liabilities 3,897,763,773.00 4,146,683,250.00 3,363,562,059.00 0.8796 0.7066 0.9018
Sales: Capital Employed Revenue 4,321,012,411.00 4,988,843,384.00 3,325,236,520.00
Total Equity 2,729,629,829.00 2,206,486,840.00 2,197,914,932.00 2.5833 2.1263 1.5041
Sales: Fixed Assets Revenue 4,321,012,411.00 4,988,843,384.00 3,325,236,520.00 Non-Current Assets 1,827,117,428.00 1,622698,366.00 1,382,522,994.00 3.1289 3.5012 2.4998
Stock Turn Over Ratio Cost of Sales 3786,948,390.00 4,792,692,708.00 3,002,153,423.00 Inventories 1,531,204,093.00 1,92,601,348.00 1,306,369,217.00 3.1125 2.4325 2.1298
Stock Turn Over Period Days 365 365 365 Stock Turn Over Ratio 3 2 2 121.6 182.5 182.5
Debtors collection Period Revenue 4,321,012,411.00 4,988,843,384.00 3,325,236,520.00 Debtors 1,887,648,663.00 1,988,712,842.00 1,504,009,244.00 Days 365 365 365 122.8264427 135.5734118 136.3837247
Creditors payment Period Creditors 1,148,323,592.00 1,375,542,570.00 459,860,446.00 Cost of Sales 4,814,948,390.00 4,744,692,708.00 3,172,153,423.00 Days 365 365 365 83.5621 105.8178 51.8957
Gearing Ratio Loan Capital 367863,799.00 398024,325.00 455,061,968.00 Total capital employed 5,724,881,201.00 5,627,572,616.00 4,752,085,053.00 100 100 100 6.5984 7.1986 10.3892
Interest coverage ratio
Operating profit 493,931,244.00 202,996,832.00 55,874,901.00 Finance charges 169,491,040.00 172,203,829.00 204,101,165.00 2.7956 1.2014 0.3021
Interpretation Managing Director,
Litro Gas Company PLC,
Evaluate the operating Performance and Financial Positions of ACL cables PLC
For the year ended 2015, 2014 &2013.
This report is to interpret the financial reports of current year of Litro Gas Company PLC
with the last 3 years’ financial report. This analysis made on historical basis. It has not been
considered to the price changes.
Profitability (operating Performance)
The last 3 years gross profit margins of the Litro Gas Company PLC are 8.76%, 2.46% and
1.637% respectively. This shows in 2014 gross profit margin is slightly decreased and the
following year it increased as considerably. The company’s sales growth is slightly increased.
The company is implemented the price policy and purchasing method at the correct time.
The net profit margin shows drastically changes from 2013 to 2015 (1.63%, 3.97%, 8.7%).
This improvement could be attributable sales growth, and it show the best cost allocation of
The return on investments of the company are drastically increased 2.2% to 11.81% in last 3
years. It shows the company is utilized and using the assets as efficiently. The return on
capital employed also shows the drasticale increasing manner. It shows the company using
assets in better utilization. This company is used its excess cash in investment property. And
the assets turnover ratios of the company is 1.2:1, 1.9:1and 1.8:1last 3 years. It shows the
slight changes. Last 3 years assets turnover ratios are above 1. It indicates high efficiency in
utilizing the assets.
Financial strength ratio (Liquidity)
The current assets ratios of the company are 1.39:1, 1.36:1 and 1.68:1 in last 3 years. In
comparison of 2014and 2015 the ratio is considerably decreased, in the following year it is
slightly increased but compare to 2013 it is low. Compare to industrial ratio (2:1) also the last
3 years current ratio is low.
The last 3 years quick assets ratios also is same as the current ratio. In comparison of 2013
and 2014 the ratio is slightly decreased and in 2015 it is slightly increased but compare to
2011 it is low. Compare to industrial ratio (1:1) also the last 3 years current ratio is low
(0.87:1, 0.70:1 and 0.87:1). It indicates in this stage this company is unable to meet the short
term obligation in an emergency.
The inventory turnover period of this company is drastically decreased from 182 day to 121
days. It shows during the last 3 years the company’s sales growth is high. Company might implement the better promotion activities.
The last 3 years debtor’s collection periods are 122 days, 135 days and 136days in 2013,
2014and 2015respectively. It shows the debtor’s collection period is considerably increased.
It indicates the recovery level of the company is increasing. It should be maintain by the
The gearing ratio of the company is not under control, because it has been decreasing from
10.38% to 6.59% last 3 years. It indicates the borrowed fund has not utilized well. It may
lead some adverse impact in the future. There for the action should be taken to overcome
from this situation.
This analyses made according to given ratio. The last 3 years liquidity position of Litro Gas
PLC is slightly increased. However the company should satisfied their requirements
regarding the current ratio and quick assets ratio. And the working capital management of
the company is seems to be good, because it is drastically decreased. The gearing ratio is in
high risk, because it is in reducing manner. It may lead some adverse impact in the future.
However the financial position of the company is slightly good.