Abstract:
This is a descriptive and quantitative study on analysis of financial statements of Rafhan maize Products Ltd. The aim of this research work is to evaluate financial success and strength of the above mentioned firm. Researchers did financial analysis of RMPL of recent previous five years from 2005 to 2009. In this study primary as well as secondary data was collected. Source of primary data used is telephone. However, this study is based more upon secondary data. Sources of secondary data include; annual reports of Rafhan Maize Product Ltd and five other companies of this sector, internet, journals, newspaper and etc. Financial analysis in this study includes; horizontal & vertical analysis, financial ratios analysis, industry analysis, forecasting, valuation of firm and economic analysis. Through this study the fair value of Rafhan maize was estimated as PKR 2824.98 per share and firm’s value was estimated after deduction of debts PKR 27,681,739. Financial performance of Rafhan maize product ltd was better. However it is needed to improve its operating cycle. This will reduce the inventory turnover days and trade receivables days. Keywords: Forecasting, discounted cash flows, free cash flows, valuation, WACC.
