Introduction Of Colombo Pharmacy PLC Ltd Accounting Essay

This Report is based on understanding rating fiscal statements and how fiscal statements could be utile for interest holders. To analyse fiscal statements it has been explained how fiscal information can be utile for assorted stakeholders by taking internal and external interest holders. Furthermore this assignment besides explains certain criterion that ‘s implemented by SLAS, by analysing Colombo pharmaceutics one-year study whether the company has been in line with SLAS criterion in their Annual study.

This assignment besides consists of computation of different ratios through one-year study of Colombo pharmace, hence ratios has been commented on the ratios.

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Introduction of Colombo Pharmacy Plc Ltd

Colombo Pharmacy plc is one of the oldest companies quoted in Colombo stock exchange. Was founded in 1913 in Colombo, srilanka. Colombo plc ltd is operates as a distributing chemist and retail trader in pharmaceuticals in Sri Lanka. Have had a really distinguished line of Directors who have

Served on the Board for over 95 old ages. In the 1990s we were privileged to bask a really affable

And friendly working relationship with J. L. Morison Son & A ; Jones ( Ceylon ) Ltd. They were

Represented on the Board to safeguard their investing of 24.16 % of the issued portion

Capital.

Company ‘s Mission

“ To supply an first-class and valuable service to clients and heighten the stockholders ‘ value. ”

“ To be the most reliable pharmaceutics that provides most professional and caring service at all times in srilanka. ”

Company ‘s Vision

Part A

P 4.1 Purpose of printing fiscal information and how it helps to assorted interest holders

Stake Holders are group of people who have involvement in concern organisation. They can be classified as internal interest holders and external interest holders.

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One of the most of import intents of printing fiscal study is to demo the current fiscal information of the company and the sum that spend in company. Another intent of printing this study is to give information sing finance place, finance per centum and alteration in finance place to the users who take determination on the footing of statement. Besides other rivals and populace will besides acquire to cognize about company ‘s fiscal analysis and it will maintain memorising them about company. Fiscal public presentation measured by net income & A ; loss history. Cash flow statement will be found through alteration in fiscal positing. Balance sheet it will establish about fiscal place. Purpose of printing fiscal information is besides opens the door to public. This helps many ways to interest holders. When expression at some internal interest holders like director ; fiscal study helps directors to pull off twenty-four hours to twenty-four hours activities and helps to take determinations easy. As fiscal information contains valuable information. When looks at clients ; it helps them to acquire to cognize about the monetary value of the merchandise or service that provide by the house and in the same clip they can compare the monetary value between rivals. This besides helps clients to cognize more about company ‘s bend over. Hence, clients have warrant about the merchandises that they were purchasing. When it comes external interest holders like authorities ; authorities acquire to cognize whether the company is following their regulations and ordinance and they were paying revenue enhancement in right manner and can do guarantee that they are non practising any illegal activities and they get to cognize whether they have any debt to pay. Suppliers ; fiscal study helps supplier to acquire to cognize how much they provide to the house and in future what are the alteration needed to be done in providing procedure every bit good it helps them to understand their operation as they will acquire to cognize how much money they are doing in the company. Hence, it will be helpful them to cognize clearly about demand of their merchandises

P 4.2 Standards requested by SLAS on publish fiscal statement to what widen the select company has followed it in their publish fiscal study.

After analysing one-year study of Colombo pharmaceutics, founds that Annual study has been signed by manager of Colombo pharmaceutics. Lalith Heengama and Mr. Gregory Scott. As it ‘s one of Requirements of SLAS criterion that, the directors/members of the regulating organic structure should subscribe fiscal statements which should besides incorporate statement of duty ( 7A ) . Furthermore

Company has besides been in line with SLAS criterion as ; company one-year study consist assets ; liabilities ; equity ; income and disbursals, including additions and losingss ; alterations in equity ; and hard currency flows. These things are found published in Annual study of Colombo pharmaceutics Harmonizing to SLAS 3. In one-year study besides found that they have done their income statement as per criterions of SLAS criterions. Income statement of Colombo pharmaceutics have applied as per demand of SLAS criterion, Income statement includes revenue enhancement disbursal, Revenue, net income or loss been done to SLAS criterion ( 81 ) . Furthermore Annual study includes merely information that relates merely to company therefore ; it does n’t include other than information related to company. As it ‘s one of the demand in SLAS study ( 45 ) . Under SLAS standard figure 33, mentioned that It is of import that assets and liabilities, and income and disbursals, are reported individually. Offseting in the income Statement or the balance sheet, except when countervailing reflects the substance of the dealing or other event. Company one-year study has applied this and following to these criterions of SLAS. So far analysing the one-year study it founds that Colombo pharmaceutics have been in line with the criterions that required by SLAS. Some Standards of SLAS have n’t been applied to their Annual study. Because it ‘s non applicable to use for a pharmaceutical company like Colombo pharmaceutics.

P 4.3

Solvency Ratio ( Refer Appendix A.1 )

Current Assets/Current Liabilities = 4.373701758 ( Approximately 4.37 )

Remark = Company ‘s solvency ratio 4.37, Since the company has a ratio more than 2 the company is set to be solvent, that is company can pay its debts in the ordinary class of the concern. That is good for the creditors and the company every bit good.

Profitability Ratio ( Refer Appendix A.2 )

Net Net income Before/Total gross revenues Revenue *100

= 18.3 %

Gross profit/Total Gross saless Rev*100 % ( Refer Appendix A.2.1 )

= 14.17

Comment = Net net income before revenue enhancement is 18.3 % of the entire gross of the company. The gross net income of the company is 14.17 % of the entire gross revenues gross. That means company keeping good profitableness ratio. Since the company is gaining companies profitable it ‘s by and large good for all the stakeholders.

Efficiency Ratio ( Refer Appendix A.3 )

Entire Sales/Fixed Assets = 0.19 times

Remark = company ‘s fixed assets ratio is 0.19.that is company ‘s entire gross revenues is 0.19 times of fixed assets. Company is fix assets turnover is about 0.2, that means company gross revenues are higher compared to company ‘s noncurrent assets.

Investing Ratio ( Refer Appendix A.4 )

EPS ( Gaining Per Share )

P.A.O.S/ W.A. O. S = Rs 21.62

Comment = on mean one ordinary portion earns Rs 21.62. That is the company produces a net net income of 21.62 Rs. Per portion. Since this is the healthy value company ‘s good will in the market will be high. This is good for the company and all and it ‘s stakeholders.

Decision

Appendix for MFRD Part A ( Ratios )

Appendix A

Solvency Ratio ( A.1 )

Current Assetss Ratio

Current assets = 110,441,922

Current Liabilitiess =25,251,361

Current Assetss divided by Current Liabilitiess

= 4.373701758

( Approximately 4.37 )

Profitability Ratio ( A.2 )

Net Net income Ratio

Net Net income before revenue enhancement =25,465,590

Entire Gross saless Revenue = 138,881,060

Internet. Net income. Before revenue enhancement divided by Entire gross revenues gross

= 01833546624141947 *100

= 18.3 %

Gross Profit Ratio ( A.2.1 )

Gross net income = 19,647,850

Entire Gross saless Revenue = 138,881,060

Gross net income divided by Entire Gross saless Gross

= 1.415443057 *100 % = 14.17

Efficiency Ratio ( A.3 )

Fixed Assets turnover ratio

Entire Gross saless = 138,881,060

Fixed Assets = 730,803,564

Entire Gross saless Divided by Fixed Assets = 0.19 times

Investing Ratio ( A.4 )

Net incomes per Share

Net income Attributable to ordinary Shareholders = 27,513,400

Leaden Average Number Of Ordinary. Shares = 1,272,857

Net income Attribute to ordinary portion Divided by Leaden Average Ordinary Shares

= Rs 21.62

Stake Holders are group of people who have involvement in concern organisation. They can be classified as internal interest holders and external interest holders.

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