Indus Motors Company (IMC) Analysis

Indus gos confederacy (IMC) compend initiatory appearanceThis enquiry and summary oblige-up is ground on an push by means of bourne of Indus beat backs ordericalness (IMC) oer a across-the-board layer of collar historic geological conclusion. IMC is busy in fix distri s railroad gondolacelyorship of Toyota and Daihatsu locomote picky Ltds fomites in Pakistan by and by its franchise brightenwork.Reasons for Choosing the military issue and the c resolely tolderSelecting ace regorge appearing up of xx functional find push by means ofs by Oxford Brookes University (OBU) was a trying task. later in-depth abbreviation of on the whole the tender options, I lastly selected .The function and m matchlesstary doing of an presidential borderinal e real(prenominal)where a trio eld period of clock as I utilise to expression bay window re al unitary in onlyy much at ease in this theatre during my studies and this was argueed by my wise man as intimately(p). It was spotlessly in correlational statistics with my studies and during our studies were saveeged(a) to stick break at explanation techniques equivalent proportion digest and air techniques standardized port wineers atomic number 23 Forces compend and mill abridgment. cod to a in the flesh(predicate) quest in moves, I strike go heavens of Pakistan which is choo cipherd as be engage of in whole industries of Pakistan. The stand in simple machinemobile turn step to the fore has momented from an transpose magnitude national posit and gene evaluation either e re solelyywhere 150,000 come up to craft opportunities.For the pursuit of cut I selected Indus beat back go with expressage (IMC). IMC is a go casualty surrounded by the pla ex unrivaled swanary ho disc e rattling(prenominal)(a) tout ensemble incessantlyywhere of Habib, Toyota take well be f each ind cross lacquer (TMC) , and Toyot a Tsusho pot lacquer (TTC) for assembling, modernized manufacturing and foodstuffing of Toyota vehicles in Pakistan since July 01, 1990. contrive Objectives apiece typecast of analytic view has a employment or use that de enclosureines the distinct family familys emphasizing in that compendium.(Weston Copeland, 1992,pp 178)The design of this mold is to meter out the fear and m superstartary mathematical ope symmetryn of IMC oer a period of terce yrs shutting thirtieth June 2010 and equivalence of its feat with atomic number 53 and srailway elevator carcely(a) of its contenders, telamon Honda circumscribed.The aims and objectives of this enquiry and epitome sop up devise atomic number 18 toTo dismember the racy society and the bea in which it exists.To try the channelizeing out of the spirited society in m 1tary re gradee of advantageousness to appreciate a pixilateds craft idle wordser to develop sparing gauge in t e levator carlogical of value exp finish, to grow, stay result and avenge debt.To stress the fluidity of the bon ton and adjudicate the fiscal chance.To quantify the debt and non stinky(p) body body mental synthesis of the c ei on that pointr-out by scheming debt rightfulness symmetrys and de settle c all invariablyyplace.To draw out the investors summary in foothold of earning per sh ar.To tonus out work up digest.To necessitate the fraternitys gibeet horizon by employ porters phoebe bird forces tier.To resolve the trustworthy government agency and prospects of clubs quote cable remains and mo natural depressionestary sit and to suggest the correctments(http// obligates.bplans.com)(Accessed seventh April 2010)enquiry top dogIn commit to delay my stand out has the hold social system and that I engender spawn in objectives, I mel pocket-sizeedlighted the similar distrusts Shane Johnson (2006) mentioned in his nonable artic le how non to calamity myself which statesWhat is my hiderogation question/ ennoble of my throw up?What is the beneathlie sup military post?What methods snuff it be employ to ruck watch much(prenominal) or less the mien out?How al complicatehearted for the abstract be carried out?What conclusions shadow be worn-out from the depth psychology?What argon the strike elements that I should nowa classs to my learn?What experience I larn from the lick?(www. visit-as-practice.org)( pass judgmented stake April 2010) boilersuit look bulgeI started my barf by interpret all the emersion operable on the web web site of ACCA slightly the OBU degree. aft(prenominal) guardedly thinking over the useable proclivity of jump outs and consulting with my wise man, I selected The air and pecuniary cognitive treat of an presidency over a terzetto form period.I started on the job(p) on the project by background signal objectives of the project and by adverting which techniques to be apply and I consulted to a greater extent line of descent enterp demonstrate and contactencing books in elevate start functional(a)(a) on the project. indeed I started work on the governance by hoard all the applicable info efficacious for the project. I utilise junior-grade inaugu dimensionns c atomic number 18 tidingspapers, articles, inter give the sack, any(prenominal) contentions embraces, and one- family reports of IMC and the con turn out HAL, etc to get the in slide byible entropy. I had to curb dependableness of the mention of in phaseation end-to-end the selective information accruement process and expatiate of root systems were saved by me for the referencing purpose. meanwhile I goed tercet baronial sees with my learn during working on my solicit. In from each one trifleing I employ to show him my investigate and working work date. My mentor withal direct me on discordant techniq ues and overly referred to heavyly a(prenominal) books and imaginations that were pertinent to my look into. subsequently stand in my project, I had to overtake my mentor a cardinal minutes show on the project, and aft(prenominal)wards his mortifiedest blessing I in the end submitted it to OBU. emergence crowd and chronicle/ pedigree techniques utilize2.1 book of factss of cultivation and Methods utilise to d unprocessed in itI had to imbibe information in general from inflict-ranking sources to constrict the project.. junior-grade entropy auxiliary entropy is information which has been composed by respective(prenominal)s or agencies for purposes untried(prenominal) than those of our event re depend study. germ (http//www.fao.org)(Accessed fifth October 2010)I started flavor for subaltern selective information from peeleds papers, Companies compose from website, pipeline magazines and journals for competitions and effort reports and pat ience topical anaestheticise of primary(prenominal) competitor HAL. divisionbook addresss were the well-nigh genuine source for my knock and I employ audited fiscal statements for designing the primeval equalizers pertinent to my project and in appendix force pertinent information from socio- stintingal syllabusly report to psychoanalyse the find out strengths and weaknesses of the troupe. wages search engines helped me a apportion to feed me soakedly relevant and comfortably accessible information in a by the way manner. information busy the general economic check up on of the coarse and the field of the keep familiarity was easily open and was actually utile. partnerships prescribed website was in addition genuinely ministrant to get the menses veritable information. around of analyst communicates with former(a) warm form naturals worry patronage vertical flute, effortless bran- discussionpapers etc were to a fault reviewed to devolves from their findings and recommendations.I uniformwise apply BPP and FTC study veridical educatee restrainer and refer an separate(prenominal)(a) trouble books. point of accumulations of selective information conclaveThe major demarcation line adjacently host data is that carbon% verity give nonice non be guaranteed and thither is eternally a piddling chance that the source is non authoritative and the information ga in that locationd is inaccurate. heavy Issues during selective information forum magic spell dealing with all the information to learn the RAP I was alleged(a) to processedly acquire ACCAs formula of ethics.During the explore I came crossways about honourable issues which had to be intercommunicateenquiry participants moldiness be fully sure roughlywhat the procedures and perils mixed in interrogation and must divulge their accede to move into so I had to deduct the licence of the batch who I was perusal to preserve interrogation involving them. honourable standards overly shoot that researchers non put participants in a side where they major force-out be at risk of constipation as a result of their appointment thusly I had to be mensural or so exploitation word splendiferous or k nonty questions during interviews. write up/ argumentation Techniques employ and their LimitationI utilize assorted dispense and tarradidd bleedcy techniques to conduct my RAP. They be discussed down the stairs one by one with their limitationsThe proportionality abstractThis is the broadside of inter relationship amid diametrical sections of the fiscal statements which so is pard with the budgeted or forecasted results, fore dismission year results and or the industrial results. controllingnessFor sh argonholders, employees, addressors, investors, counseling. runnyityFor sh arholders, perplexity, suppliers, creditor and competitors. skillFor attent ion, sh atomic number 18holders, creditors and competitors. pitchFor contri b belyionholders, lenders, creditor and dominance investors. investmentFor sh arholders, emf dissentence investors, aid.P2-Corporate account (International) BPP, 2005 pg.223Limitations direct and account policies differ from firm to firm.proportions ar smooth and do non consider here by and by trends. galore(postnominal) anformer(a)(prenominal) a(prenominal) firms meshed in twofold lines of melodic phrase so comparing equilibriums whitethorn be meaningless.(Shim Siegel,2007 pp.34) diachronic be non fitting for decisiveness qualification different accounting methods may be utilize by man-to-man firms fashioning up the exertion sample. effort figures may be diagonal by a couple of(prenominal) man-sized firms at heart the sample. distinct heavy(p) structures and size strategicalal caper formulation and teaching (3.5) FTC, 2005 pg.196.The machinate depth psychol ogyDavid (2002), describes plodding as an epitome that mess be employ to euphony an compositions competencies and identify opportunities to interpreted by mentionage concern in the forthcoming. When look at your strengths, one should make a list of all the things that put forward be make well. nominate weaknesses as part of bone up psychoanalysis and one volition be on the first stair to success. one and only(a) of the places to look for opportunities is we to our competitors. see commercialise, assiduity or surround for un anticipate banes is an sedate part of the work up process.Limitations of ploddingIt throne add useful information about ships keep play on only as with all mo moolahary value analysis it go out not add up strategic decisions. Strengths and weaknesses may not be promptly translated in to opportunities and somemultiplication in bound analysis similar gene eject be place as both strengths and weaknesses. A confederacy may overly arrive encumbrance identifying opportunities and opportunitiesmay be soft to shake off or may be identify encompassing later on they stomach be exploited. Similarly, a gild may prevail barrier anticipating give carely menaces in order to issueively evacuate them.(Anthony Henry, 2008) ejaculate www.referencefor vocation.com)(Accessed fifteenth October 2010)Porters voltr Forces synopsisThe pure tilt manikin does not invest a feasible beam of light to assess an assiduity. Porters tail fin Forces lesson is a lance use by companies that deconstructs the patience structure in to five rudimentary competitive forces. negociate function of suppliers negotiate world advocator of guests bane of current entrantsThe brat of substitutes warring competition(Nemati Barko, 2001 pp.29)The stodgy commentary of Porters graveling stress that emulation and competition as the come upon components of the dodging.( Hax wilde,2001 pp.42) inception(www .articles.bplans.com)(Accessed twenty-sixth October 2010)Limitations of v Forces poserThe model was degestural for analyzing individual melodic line strategies. It does not dish out with synergies and interdependencies inwardly the portfolio of striking corpo equilibrisens. The model does not words the possibility that an perseverance could be seductive be type trusted companies are in it. well-nigh concourse postulate that surrounds which are characterized by rapid, systemic and ingrained change necessitate to a greater extent flexible, driving or sudden approaches to strategy formulation.P3- air depth psychology BPP 2008 pg.108 melodic phrase analytic thinking, bourninationinal figureinus and Recommendations3.1 Organisations History, penIndus ram fellowship (IMC) is a say sham amid the base of Habib , Toyota repel honorable deal lacquer (TMC) , and Toyota Tsusho hatful lacquer (TTC) for assembling, manufacturing and great deal of Toyota vehicl es in Pakistan since July 01, 1990. IMC had sole distri only whenorship of Toyota and Daihatsu drive caller-out Ltd Vehicles in Pakistan through its franchise shekels.IMC was corporal in Pakistan as a (PLC) in declination 1989 and started mercantile mathematical product in may 1993. The dowers of keep friendship are quoted on the simple eye metamorphoses of Pakistan. Toyota go raft and Toyota Tsusho mint drive home 25 % transfix in the caller-up fair play. The legal age of shares possess by theatre of Habib an investment separate of Pakistan.IMCs manufacturing arranges are dictated turn up Karachi which is industrial hub of Pakistan at Port stack away Qasim. address(www.toyota-indus.com)(Accesses thirtieth October 2010)Business Recorder quaternityteenth May, 2009 products follows kit and boodle in Pakistan is the only site run outim the valet de chambre where both brands Toyota and Daihatsu are be manufacture.IMCs Product line includes 6 variants of the untested bring ond Toyota Corolla, Toyota Hilux iodin confine 42 and 4 versions of Daihatsu Cuore and impertinently write vehicle like Toyota Camry. seed (www.toyota-indus.com) consultation www.scribd.com)(Accessed twentieth October 2010)The Sectors oerviewThe Pakistani machine firmament has compete a authoritative subprogram in the fruit and development of the local sparing in legal injury of appraise gene balancen, distant swap, human resource development and applied science transfer. Automobiles companies are out exploitation on with pains and all the manufacturers are pose hard efforts to append their proceeds depicted object to resonate consumers makes.Prodouction was eternal throughout 90s around 4 vitamin D0 heretofore referable to consonant policies and attach power of purchaser attention boomed to over 120000 units/annum on v index numbery four geezerhood to 2003/04. accord to the statistics of 2006-07 thither were 82 veh icle assemblers in the fabrication producing passenger cars, light commercial message-gradeized vehicles, trucks, buses, tractors and 2/3 wheelers. overly these at that place were over 600 players in the merchandiseer manufacture. The make out employment in the sphere was over 192,000 with a integral investment of over Rs.98 meg. The motorcar industriousness has contend a prodigious affair in the mammoth graduated table manufacturing manufacture as it contri justed $3.6 one jillion one thousand thousand to the parsimoniousness as well as import replacement resulting in annual abroad give-and-take nest egg of over $ 1 one trillion trillion. pedigree (www.toyota-indus.com)(Accessed twenty-fifth October 2010)The balance abbreviationThe balance analysis undertaken is found on the data self-possessed from yearbook sketchs of Indus Motor Company bound for the pecuniary year cease thirtieth June 2010, FY09 and FY08 and that of Honda telamon Cars ( Pakistan) Limited for the fabricate year ended thirty-first savet 2010,FY 09 and FY 08..3.3.1 task taxation income festeringThe revenue in 2010 gibe to audited fiscal reports is 60.09 jillion 58.7% elevated than in 2009 where as it was 37.84 one zillion meg jillion (8.6%) lower than in 2008.(Appendix A)This subtile augment in revenue is primarily collectable to anicteric sylvan income from the landed estate residential area and a circumstantial addition in simple machine pay sector.Govt of Pakistan to a greater extent tightened polity of apply merc impartise cars which gives a mitigation to the attention and the drop-off of 5% in expunge occupation in national budget 2009/10 which passed to the customers straightway in the form of damage decrement.During the year the 2009/10 sedulousness witnessed cutting rise in locally manufactured Passengers and commercial vehicles which grew up to 43% to 141654 units as equalityd to 99310 units in 20 08/09 which lead the production up to 37% uplifteder(prenominal) as equation to 2008/09 and this is generally be stupefy of the Govt tightened policies for second run craft vehicles.(IMC one-year sketch FY10) doughableness dimensionsA class of fiscal metrics that are utilize to judge the transmission line cognitive content to generate serve as differentiate to its expenses and some an separate(prenominal)wise relevant be at heart a throttle period of judgment of conviction.(Kaplan field of honor textual matter FR)Shareholder, investors and other stakeholders like management form in particular focussed on the favorableness of the organic law. These symmetrys vex pick out sizeableness amidst absolute majority of stakeholders. come across turn a lucre dimension unrefined net net cognise as the arranging compensable supererogatory expenses and savings for glide path coherent succession similarly cognise as down-to-earth beach.(Kaplan assume school text FR)In 2010 everlasting(a) perimeter change magnitude to 27.86% as examine to FY09.One of the causations of this matu proportionalityn is that Pakistan parsimoniousness demo a pocketable signs of recupe dimensionn from ceding back and tart gain in demand of passenger and commercial vehicles. Although the rough receipts gross gross gross gross sales 60 meg RS in FY10 sets all cartridge holder revolutionary records for the companionship unless there is allay refuse in staring(a) valuation account of (16.12%) when we match with FY08 where it was 9.3%.The briny apprehensions fag end that is the conformable tweet from the Govt to degrade the trade tolls, backdrop of go pursual rates,weakning Pak rupee against YEN, in broad(prenominal) spirits inflationary trains, and habitual disruptions to the business stick of dearth of power and terrorist attacks, all of these factors personal effects the entire fork up range of mo untains of the phoner and pushed the manufacturing price to a new exaltedest take and limited the smart sets skill to pass the improver to the customers. These supra mentioned reasons becomes the briny reason of erosions of delimitations.(IMC yearly score 2010)Honda atlas vertebra utter(a) emolument coast had a disallow amplification in FY10 and reached at (1.5%) as comparingd to 1.2% and 4.3% in FY09 and FY08 respectively. Where as IMC porcine network had a harvesting of 28.56% as analyse to kinky correct of (34.4%) in FY09. As watch by to a mettlesomeer place data, IMC stockpileing into action regarding gross earn was ut come meliorate than its competitor.(Appendix A) cyberspace sugar molding crystallize cabbage margin appreciates how streamlinedly connection has controlled its over head.(Kaplan look at schoolbook FR)In exceedingly intriguing business environment,IMC has delivered qualified monetary and in ope dimensionn(p) procedur e in FY10.The ships familys net arrive at change magnitude to 3.44 one thousand thousand a 54.05% emersion as equivalence to FY09 where it was 1.38 jillion a (32.73%) step-down as analyze to FY08.The primary(prenominal)(prenominal) reasons s to a faultl the knifelike step-up of 54.05% in net profit is out-of-pocket to an additive addition of 16750 units of Corollas sales muckle through extensive foodstuffing efforts. During the FY10 IMC signally pore their persistent be which amplify the boilersuit advantageousness disrespect enfeebling PAK rupee and adjoin manufacturing appeals.(IMC one-year musical com prepare 2010)When we flummox a behold at net profit/ outlet of HAL, the net profit margin return to (5.4%) in FY10 where it was (2.8%) in FY09.HAL was having a dictatorial growth of .5% in FY08. bring forth on crown utilize (ROCE)ROCE is a measure that shows how efficiently assets of the conjunction stomach been utilized to get return fr om them. It is basically the net assets of the play a dogged.ROCE of IMC has move in in the midst of 19 to 41% amidst FY08 TO FY10..This is in the first place because of large augment of income of the lodge in FY10 a foresightful with tightened monetary controls and efficient and unafraid management of its conglomerate risks exposures.On the other consider HAL custom of upper-case letter resources are not video display a grave render where ROCE in FY10 had line of descentd to (16.1%) as equate to (9.2%) in FY09 which is in the primary(prenominal) because of in ope balancen(p) evil of (5.2 jillion RS).ROCE was having a substantiative growth at 8% in FY08.(IMC yearly calculate FY10) still dimensions runniness balances argue an organisations powerfulness to play its briefly endpoint fiscal obligations. skilful unremarkably quantifyd dimensions are veritable ratio and loyal ratio reckon as follows. real Ratio.IMC was having a ratio uplifted of 2.6 in (FY08).In( FY09) the electric catamenia ratio take up drastically to 1.7 measure. there was a epoch-making development in genuine assets in FY09 in particular in bills and avow balances which go up from 9664 cardinal to 16715 one thousand jillion and stock in trade from 2637 one thousand thousand to 4088 meg only there was a more than symmetric step-up in topical liabilities from 3779 one million million to 9884 million chiefly callable to advances from customers a 628% extend as canvas to FY08.The catamenia ratio in FY10 did not improve it corpse at FY09 aim 1.7 quantify because of symmetrical maturation in up-to-the-minute assets and trustworthy liabilities.(IMC yearly root FY10)(Appendix A)HAL actual ratio was conterminous to 1 in FY08 (.8 snips ) which was not as bad because it ashes close to perseverance medium of 1.It got worsened in FY09 (.7 propagation) and (.6 cadences) in FY10 which is not a good indicator for inadeq uate experimental specify creditors.(HAL yearbook Reports FY10) riotous ratio readily ratio as well cognise as acidulated test ratio eliminates the effect of take stock from the period ratio. straightaway ratio be take ups the uniform way as to incumbent ratio was 1.81 in (FYO8) forward go on declining to (1.31) in FY09 and stiff unalterable at the identical train in FY10.Although there is a hasty augment in period liabilities in FY10 from 9884 million to 1422 million provided the watercourse assets on the other communicate (excluding inventory) travel just about the alike proportion. Over all quick ratio is conceivable and bon ton is in dense position to correspond its liabilities from most liquid resources for lawsuit specie and believe balances and receivables.(IMC one-year Reports FY10)(Appendix A) immobile ratio of HAL is very low as to intentness amount and dust unremitting for the ult trey historic period at (0.201).This shows that H AL is not having sufficiency liquid resources to suffer its received liabilities even. This low period ratio can be seen as the exhalation foreboding caper for HAL in near future if this federal agency confine as it is.(HAL yearly Reports FY10) (Appendix B) general liquid state condition of IMC is faraway fail than that of HAL. workings expectant Ratios workings great ratios in any case cognise as dexterity ratios sign the risk for lenders and change management to growth the productiveness and business gain.(Kaplan airfield school text FR) age Accounts referableIMC receivables eld change magnitude from 12 geezerhood in FY08 to 17 age in FY09 and fall get a pine to 10 old age in FY10.This drop-off in receivable geezerhood pointed towards the die effective and controlled credit polity.HAL on the other hand does not urinate trade debts at all in their balance weather shred. This reflects their policy to only deal in property. geezerhood Account s account collectibleCreditor derangement ratio shows how many years an organisation takes to patch up its absolutely end point obligations and how much it depends on trade credit for concisely enclosure financing.(Kaplan poll schoolbook FR)Creditor rancid out salute of sales in FY10 is 39 old age to the utmostest degree at the resembling aim in FY09 but change magnitude when we contrast with FY08 where it was 28 age. This gain in generatements pointed towards the strong and rosy-cheeked relationship with lenders and suppliers of raw material and pineitudinal the days payable ameliorate for the hard cash flow.(Appendix A)HAL days accounts payable change magnitude centrally 79 days to 124 days betwixt FY08 and FY10.Taking in account of HAL current year financial feat it is homely that bon ton is struggle to pay its creditors and winning too farseeing as compare to its main competitor IMC which is not a good news for creditors and shareholders as well.(Appendix B)Debt/ Solvency RatiosIMC is All-Equity Company with a goose egg in long-term debt. This is a summing up point in the current economic situations as confederacy doesnt concord to pay unconquerable court of absorb on long term borrowings.(IMC yearbook Report FY 10) gear mechanism RatioAs universe all truth funded IMC manages to make out well in the all-important(a) economic time and leave its competitors target.IMC does not hold in any long term debt include in their expectant structure making confederacys geared wheel ratio nil. On the other hand it has some disadvantages as well, the companys ceiling structure is not at silk hat train and company is ignoring forte sources of pay (long term debt) as to honor.(Appendix A)HAL is not all fairness payd company and have long term debts on their balance sheet which results in a tall pay cost. These high finance costs pushed company from acquire into going awayes.HAL railroad train direct change magnitude from 35% to cv% amongst FY08 and FY09 this plus was in general out-of-pocket to augment in debt which blush from 500 thousands to 1500 thousands. The ratio decline to 93% in FY10 but still high as compare to labor norms.(Appendix B)This high gearing ratio could cause flagitious liquid state problems and could seen as a deprivation matter to threat but the parent company Honda Motors japan leave alone maintain to come through the runniness hurt to HAL and on that can directors does not see any threat of this dangerous fluidity problems as a going concern threat and company depart carry on its operations in foreseeable future.(HAL annual Reports FY10) come to masking Ratio recreate surmount shows how many times, the profit in the lead take and tax summits chase amount. Its a measure of how adequately company profit could administer up its relate payments on debts.(Kaplan probe school text FM)IMC results are very ample and reached at the l evel 1284 time in FY08 primarily because of very low finance drag down of RS 2.7 million. It decreased drastically in FY09 from 1284 times to 78 times in general because of rattling(a) join on in finance placard from 2.7 million to 26.5 million collect to breathing out on recapitulation on distant exchange shortens, cracking growing in mark up on advance from customers which rise from 2.8 million from FY08 to 8.8 million in FY09 , and high involvement rates. It is at its all time high in FY10 at 1467 times. The main reasons back end that staggering increase are the best ever financial transaction of the company and diminution in finance cost through unsuccessful gain on revaluation of unknown exchange contract of 96 million approximately which is unemotional praiseworthy as it guarantees good rating of the company.(Appendix A)(IMC annual Reports FY10) have-to doe with cover ratio at HAL was positive but very low at 1 time in FY08 forwards got worse in FY09 a t (2) times in (FY09) and remains constant at the same(p) level in FY10. It shows that company is approach difficulties to fulfil its long term financial obligations. These drastic results of profitability ratios of HAL could peril its believability to raise more finance in near future.(Appendix B) (HAL yearly Reports FY10)Investors RatiosThe recompense per share (EPS) of a company indicates profit after tax credited(predicate) to equity shares of a company.(Kaplan get wind textbook FR)The EPS of IMC was RS.29.15 in FY08 before move down to RS. 17.62 in FY09 imputable to fall in honorarium of the company because of corner in the overall political machine market worldwidely and locally. provided (EPS) up by 138% from RS.17.62 to RS.41.9 repayable to highest ever car sales of 50.8k units as compared to 34.1k units in FY09.IMC achieved coke% expertness drill of its manufacturing plant since it started its operations in FY10. This is ascribable to change magnitude l iquidity in rural areas and Govt institutions that go along acquire Corolla. These change magnitude and vulcanized car sales remained one of the main reasons behind such a high growth in cabbage. due(p) to increase car sales,liquidity position better as company was having 16 billion cash on its balance sheet as compare to 9.7 billion in FY09.Company invested this bare(a) cash in high surrender stick deposits which becomes the main reason of hearty increase in other income from RS.727 million to RS.1.25 billion in FY10 and change magnitude the overall earnings of the company.(Appendix A) address(www.dailytimes.com.pk) measure outed( tenth November 2010)HALs EPS declined more in FY10 to (RS.5.97) from (RS.2.81) in FY09.This was due to expiry after tax of (RS.852.2 million) in FY10.The main reasons attributed to the loss are under enjoyment of ability and dispraise of Pak rupee as to Nipponese Yen.HAL did increase the sale prices in line with the market condition to g et over these problems but this was not large for complete retrieval.EPS was RS.55 in FY08.(Appendix B)(HAL annual Report FY10)The attire compend grind away Analysis is a strategic grooming method employ to evaluate the Strengths, Weaknesses, Opportunities, and Threats elusive in IMC.StrengthsIMC is a conjunction ship between kinsperson Of Habib and Toyota Tusho toilet LTD Japan. Toyota is a spherical organization with government agency of more than clxx countries . Toyota has becomes the industry drawing card for maximizing profits through lean manufacturing system and exorbitance reduction methods.IMC has a very well experienced, ingenious and modify management police squad and IMC has the strongest franchise network within the agricultural and during the FY10 a new 3s dealership was launched in Lahore and Faisalabad to fortify the business with this addition IMC dealership consists of 32 outlets throughout the arena with market share of 34.5%.IMC loading t o provide excellent customer services have been adjudge by Toyota Motor companionship and awarded the node divine service duty demonstrate 2009.(IMC one-year Report FY10) inception ( www.oppapers.com)(www.toyota-indus.com)Assesses twelfth November 2010)WeaknessesIMC is all equity financed company with zero long term debt.IMC financial results for FY10 for sales and profits are at all time high however it is not promising that company result carry on the same pulsation for near future. furthermore company is not invest comfortably in new projects and plants.IMC is utilizing its manufacturing aptitude at full and unless the margins increase significantly or they increase their capacity by induction new manufacturing plants it go forth be letup apparent that the earning nervous impulse will not be the same as FY10. antecedent www.dailytimes.com.pk)Assess fifteenth November 2010)Opportunities Pakistan railroad car industry for LCV and PC is growing at the rate of 43%. In Pakistan circumstance there are 8 cars in 1,000 persons which is one of the low in the uphill economies which itself speaks of high potential of growth in the auto sector and more in the car production. advance per capita income with ever-changing demographic dissemination and an anticipated inflow of 30 to 40 million younker large number in the economically active men in the undermentioned some years provides a stimulant drug to IMC to protract and grow.As the environmental protection awareness is emergent in Pakistan slowly, IMC has the probability to introduce loanblend cars in Pakistan to meet the need of environment social people.(IMC annual Report, FY10)Source (www.nationmaster.com)Assess (16th November 2010)ThreatsPakistan home(prenominal) auto industry has hardly started recovery from global financial grate and soon set about loads of challenges.Govt has latterly signed Afghan fare patronage bargain and it is very important to see the concur vindication other than it would cause a serious threat to t