final+project+of+afsthe assets what the firm owns are listed according to the degree of their...

8/12/2019 Final+Project+of+AfsThe assets what the firm owns are listed according to the degree of their liquidity from the

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Mba 19 (A) Pakistan Petroleum Limited

(PPL)_______________________________________________________________________

_

PROJECT ON PA!"TAN PETROLE#M

"ubmitted to$ Sir Waseem Ullah

"ubmitted b%$

Sheharyar Azam 3486/fms/mba/s08

Usman Waqar 3501/fms/mba/s08

Sohaib Qureshi 3489/fms/mba/s08

_______________________________________________________________________

_

Graduate School of Management, International Islamic University

Islamabad


2/20


(PPL)_______________________________________________________________________

_

Usman Ashraf 3500/fms/mba/s08

Abdul Rehman 1784/fms/bba/f08

Table of Content:

Introduction ................................................................................................................... 1

Corporate Profile: ........................................................................................................... 2

Capital

structure..............................................................................................................3

Core Value: .................................................................. Error: Reference source not found

Bankers: .......................................................................................................................... 5

Auditors .......................................................................................................................... 6

Legal Advisor .................................................................................................................. 7

FINANCIAL ANALYSIS: ........................................................................................... 8

1. Current Ratio.........................................................................................................

2. Quick Ratio............................................................................................................

3. Average Collection Period......................................................................................4. Fixed Assets Turnover............................................................................................

5. Debt Ratio.............................................................................................................

6. Debt-to-Equity Ratio............................................................................................

7. Gross Profit Ratio..................................................................................................

8. Net Profit Margin..................................................................................................

9. Return on Assets (ROA).........................................................................................

10. Return on Equity (ROE).......................................................................................

Cross Sectional Analysis .............................................. Error: Reference source not found

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Islamabad


3/20


(PPL)_______________________________________________________________________

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INTRODUCTION

Pakistan Petroleum Ltd is Pakistan&s Premier E'P Coman% t*e oldest and lar+est

E,loration and Produ-tion Coman% in t*e -ountr% .as in-ororated on /t* June 19/0.it* t*e main obe-ti2e o3 -ondu-tin+ e,loration de2eloment and rodu-tion o3

Pakistan&s oil and natural +as resour-es4 PPL in*erited all t*e assets and liabilities o3 t*e

5urma* Oil Coman% Limited and -ommen-ed business on 1st Jul% 19/64

PPL and its e,7arent 5urma* Oil Coman% *a2e been a-ti2e in t*e sub-ontinent sin-e

t*e earl% art o3 t*e 60t* -entur%4 A total o3 689 .ells in-ludin+ / e,lorator% and 1:;araisal < de2eloment .ells *a2e so 3ar been drilled .*i-* resulted in t*e dis-o2er% o3

about 19490 T-3 +as4

!n 5alu-*istan it rodu-es oil .ell drillin+ +rade 5ar%te o.der 3rom t*e mine .*i-**as establis*ed reser2es o3 146/ million tones4 T*e +as LP= and N=L rodu-tion 3rom

PPL oerated and non7oerated 3ields 3or t*e %ear 600;70/ in terms o3 oil e>ui2alent

.as about 1:160/ barrels o3 -rude oil er da%4

LEADING THE WAY:

PPL -ontributes around 6 er-ent o3 t*e -ountr%&s total natural +as rodu-tion besidesrodu-in+ -rude oil< Natural =as Li>uids (N=L) and Li>ue3ied Petroleum =as (LP=)4

PPL oerates 3our rodu-in+ 3ields at "ui and*kot Ad*i and Ma?arani and *olds

.orkin+ interest in se2en artner7oerated rodu-in+ 3ields4 PPL@s e,loration ort3olio-omrises 6; e,loration blo-ks in-ludin+ 3our t*at are o33s*ore4

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Islamabad


4/20


(PPL)_______________________________________________________________________

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RECENT INITIATIVES:

PPL *as steed u e33orts to in-rease *%dro-arbon rodu-tion to kee a-e .it*

Pakistan@s +ro.in+ ener+% needs4 !n 600 600: PPL dis-o2ered natural +as and-ondensate 3rom its e,lorator% .ell Adam B71 (ala 5lo-k) lo-ated in "an+*arDistri-t "ind* .*ere PPL is t*e oerator .it* a / er-ent stake4 At and*kot =as

ield PPL *as started .ork to install a +as -omression 3a-ilit%4

FUTURE PROSPECTS AND PLANS:

PPL@s 2ision is to maintain its osition as t*e -ountr%@s remier *%dro-arbon rodu-er4T*e in-rease in t*e -oman%@s e,loration a-ti2ities -an be +au+ed 3rom t*e 3a-t t*at

sin-e 6000 6001 it a->uired li-enses and .orkin+ interest in 6; e,loration blo-ks4

PPL also aims to rodu-e additional +as 3rom "ui Pab Reser2oir and -ommission t*e

and*kot Fell ead =as Comression Proe-t and De*%dration Plant4

PPL lans to laun-* e,loration a-ti2ities in relati2el% untaed areas4 PPL is also a

remier Pakistani -oman% to aear on t*e international e,loration ma4 PPL@s

a-*ie2ements and 3uture lans 3or international e,loration are re3le-ti2e o3 its

determination to inte+rate -reate 2alue and strate+i-all% transit to.ards +lobali?ation o3its oerations4

CORPORATE PR!DE$

PPL 3eatured amon+ t*e GTo 6/ ComaniesH o3 t*e ara-*i "to-k E,-*an+e .as

-on3erred GPakistan@s Cororate E,-ellen-e A.ardH b% Mana+ement Asso-iation o3Pakistan ba++ed 3or t*e t*ird -onse-uti2e %ear GPakistan Cororate P*ilant*ro%

A.ardH +i2en b% Pakistan Centre 3or P*ilant*ro% .on t*e G5est Cororate Reort

A.ardH ud+ed b% a oint -ommittee o3 t*e !nstitute o3 C*artered A--ountants o3Pakistan (!CAP) and !nstitute o3 Cost and Mana+ement A--ountants o3 Pakistan

(!CMAP)4 Additionall% PPL .as -on3erred t*e GEn2ironment E,-ellen-e A.ardH

instituted ointl% b% t*e National orum o3 En2ironment and ealt* #nited NationsEn2ironment Pro+ramme Ministr% o3 En2ironment =o2ernment o3 Pakistan and

ederation o3 Pakistan C*amber o3 Commer-e and !ndustr% 3or t*e se-ond %ear runnin+4

T*ese resti+ious a--olades are a be3ittin+ re-o+nition o3 PPL@s e33orts and ser2e as a

sour-e to s-ale ne. *ei+*ts o3 -ororate e,-ellen-e sustainable +ro.t* and roserit%4

CORPORATE PROFILE:

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Islamabad


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(PPL)_______________________________________________________________________

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Name of the Coman!: Pakistan Petroleum Limited

In"#$t%! T!e: Oil and =as E,loration Comanies

&a'o% In(e$to%$: =o2t4 o3 Pakistan

PPL CAPITAL STRUCTURE

T*e -urrent s*are*oldin+ stru-ture o3 t*e Coman% is as 3ollo.s$

Our mission is to otimi?e *%dro-arbon rodu-tion and ursue an a++ressi2e e,loration

ro+ramme in t*e most e33i-ient manner on t*e lo-al as .ell as international *ori?ons

t*rou+* a team o3 ro3essionals utili?in+ t*e latest de2eloments in t*e e,loration androdu-tion te-*nolo+% and maintainin+ t*e *i+*est standards o3 *ealt* sa3et% anden2ironment4

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Islamabad

S)No Sha%ehol"e%$ Pe%*enta+e

(i) =o2ernment o3 Pakistan :I4;0

(ii) !nternational inan-e Cororation 84;8

(iii) Pri2ate s*are*olders 1I41:

10040


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(PPL)_______________________________________________________________________

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Re-o+ni?e t*at Leaders*i Emo.erment and A--ountabilit% are essential 3or

Cororate "u--ess4

Pursue t*e i+*est "tandards o3 Et*i-al 5e*a2ior and !nte+rit%4

Consider Our Peole as t*e Most !mortant Resour-e4 Kalue Creati2it% and !nno2ation4

Fe are -ommitted to E,-ellen-e in all "*eres o3 Per3orman-e4

Fork as a Team and ad2o-ate Team.ork4

Rese-t t*e En2ironment and are -ommitted to its Prote-tion4

,an-e%$

Allied 5ank Limited

Askari 5ank Limited

5ank Al7ala* Limited

5ank Al abib Limited

Citibank

Deuts-*e 5ank

a%sal 5ank Limited

abib 5ank Limited

abib Metroolitan 5ank Limited

MC5 5ank Ltd

National 5ank o3 Pakistan

N!5 5ank Limited

"tandard C*artered 5ank(Pakistan) Limited

T*e Ro%al 5ank o3 "-otland Limited #nited 5ank Limited

A#".to%$

G&/$ Fo%" Rho"e$ S."at H!"e% 0 Co)H

Le+al A"(.$o%

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Islamabad
http://www.abl.com.pk/http://www.askaribank.com.pk/http://www.bankalfalah.com/http://www.bankalhabib.com/http://www.citi.com/pakistan/homepage/index.htmhttp://www.db.com/http://www.faysalbank.com/http://www.habibbank.com/http://www.hmb.com.pk/http://www.mcb.com.pk/http://www.nbp.com.pk/http://www.nibpk.com/http://www.standardchartered.com/http://www.abnamro.com/en/home.cfmhttp://www.ubl.com.pk/http://www.pakistanpetroleum.com.pk/http://www.abl.com.pk/http://www.askaribank.com.pk/http://www.bankalfalah.com/http://www.bankalhabib.com/http://www.citi.com/pakistan/homepage/index.htmhttp://www.db.com/http://www.faysalbank.com/http://www.habibbank.com/http://www.hmb.com.pk/http://www.mcb.com.pk/http://www.nbp.com.pk/http://www.nibpk.com/http://www.standardchartered.com/http://www.abnamro.com/en/home.cfmhttp://www.ubl.com.pk/http://www.pakistanpetroleum.com.pk/


7/20


(PPL)_______________________________________________________________________

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G "urrid+e ' 5ee-*enoH

FINANCIAL ANALYSIS

All t*e 2alue 3rom balan-e s*eet and ro3it ' lost a--ount are in Ruees and in

t*ousands4

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Islamabad


8/20


(PPL)_______________________________________________________________________

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T%en" Anal!$.$:

F.nan*.al Rat.o$ 1223 1224 1225L.6#.".t! Rat.o$

C#%%ent Rat.o 846;I8/ ;48/;1;/ 1)455178

9#.*- Rat.o 8409;068 ;41800/ 1)3422;

P%of.tab.l.t!

Rat.o$

ROA ;9468:9 ;I4;/;: 72)22178

ROE ;;489 ;14I6 87)8

G%o$$ P%of.t

&a%+.n

64;:: 8489I;I 38)7841

Net P%of.t &a%+.n ;6 ;; 8;

Debt to E6#.t! 41: )44

DSO 466I18 11I41: 55)48;33

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Islamabad


9/20


(PPL)_______________________________________________________________________

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In(ento%!

T#%no(e%

946981:6 1040:;0I 2)71>7

Fixed AssetsTurnover Ratio 1)85 1)71 1)7

Elanat.on of T%en" Anal!$.$

L.6#.".t!

C#%%ent Rat.o:

Fe -an see t*at -urrent ratio s*o.s 3lu-tuation o2er t*e %ear but it is lo.est in 600I

be-ause -urrent assets are in-reased in 600I and at t*e same time -urrent liabilities alsoin-reases t.i-e as -omare .it* %ear 600: and 600I4 !t results de-rease in -urrent ratio

but it is still under -ontrol (a.a% 3rom sol2en-% risk)4

9#.*- %at.o:

5% -al-ulatin+ >ui-k ratio .e -ame to kno. t*at in 600I >ui-k ratio de-rease be-ause-oman% maintain mu-* more sto-k in 600I4

P%of.tab.l.t!

ROA:

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Islamabad

1223 1224 1225

Current Ratio 846;I8/ ;48/;1;/ 64:II6/;

1223 1224 1225

ui-k Ratio 8409;068 ;41800/ 64:0108


10/20


(PPL)_______________________________________________________________________

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Durin+ anal%sis o3 ROA .e -ame to kno. t*at ROA did not s*o. *i+* 3lu-tuations45e-ause assets o3 t*e -oman% in-reases at t*e same time earnin+s also in-reases4 !t

means t*at -oman% is utili?in+ its resour-es e33i-ientl%4

ROE:

Roe is lo.est in 600: be-ause -oman% *as in-reased its -aital and reser2e as -omare.it* net in-ome4 !n 600I reo in-reases be-ause t*ere is in-rease in net in-ome as .ell asin s*are*olders e>uit%4 T*at@s .*% t*e roe in-reases as -omare to 600:4

G%o$$ %of.t ma%+.n %at.o:

=ross ro3it mar+in ratio s*o.s in-reases o2er t*e %ear4 T*is s*o.s e33i-ien-% o3 salessta33 and +ood -ontrol o2er t*e -ost4

Net %of.t ma%+.n %at.o:

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Islamabad

1223 1224 1225

ROA ;9468:9 ;I4;/;: /04006/;

1223 1224 1225

ROE ;;489 ;14I6 ;/41;

1223 1224 1225

=ross Pro3it Mar+in 64;:: 8489I;I ;4/;1:6

1223 1224 1225


11/20


(PPL)_______________________________________________________________________

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Net ro3it mar+in ratio did not s*o.s *i+*er -*an+es o2er t*e %ears but it s*o.s

de-rease in 600I4 it is an alarmin+ situation be-ause t*ere is in-rease in oeratin+ and

administrati2e e,enses o3 t*e -oman% in 600I4

R.$-

Debt Rat.o:

As +o2t is t*e maor s*are *older o3 t*e -oman% and -oman% maintains 2er% lo. le2el

o3 debt be-ause 3und is ro2ided b% t*e +o2t in t*e s*ae o3 e>uit%4 Co ossesses 84/ to ;times more assets t*an its liabiluities so t*ere is minimum risk o3 bankrut-% or

insol2en-%4

Debt to E6#.t! Rat.o:

As +o2t is t*e maor s*are *older o3 t*e -oman% and 3unds are ro2ided b% t*e +o2t in

t*e s*ae o3 e>uit% so t*at 3irm is *oldin+ 2er% lo. le2el o3 debt and debt ratio remains

t*e same o2er t*e %ears4

.e take Gliabilities a+ainst assets sube-t to 3inan-e leaseH as debt4

TIE Rat.o:

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Islamabad

Net Pro3it Mar+in ;6 ;; ;8

1223 1224 1225

Debt Ratio 046;I:9 0460891 046I;69

1223 1224 1225

Debt to E>uit% 041: 041:


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(PPL)_______________________________________________________________________

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Tie ratio de-reases in 600I be-ause t*ere is in-rease in 3inan-e -ost but tie ratio isstill 2er% +ood4 As it is ;/ times in 600I4

A$$et #t.l.at.on %at.o$

A**o#nt %e*e.(able$ t#%no(e%$

As in 600: -oman%@s a2+ a--ount re-ei2able in-reases t.i-e but t*ere is no bi++er

ima-t on sales so A


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(PPL)_______________________________________________________________________

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i,ed asset turno2er ratio remains t*e same in 600: and 600I but it s*o.s sli+*tde-rease in 600I4

B S*o%e &o"el of the Pa-.$tan Pet%ole#m L.m.te"

Z = 0.012x1+ 0.014x2+ 0.033x3+ 0.006x4+ 0.999x5

B1 .orkin+ -aital


14/20


(PPL)_______________________________________________________________________

_ sales assets s.h.e

2006 13,401,001 31,756,712 41,066,097

31,756,712 41,066,097 30,188,547 44.39101

0.4219896 0.7733073 1.3603204

2007 16,767,774 38,382,645 50,369,125

38,382,645 50,369,125 40,098,051 41.81693

0.4368582 0.7620272 1.256149

2008 19,707,398 45,716,789 61,023,261

45,716,789 61,023,261 43,654,271 45.14426

0.4310757 0.7491699 1.3978761

D#Pont f.(e Ste Anal!$.$

FIVE STEPS

EBIT Sales I.E Assets 1 Ta! "ate

Sales Assets Assets E#$it%

2006 20,219,629 31,756,712 30,096 41,066,097 0.6637 44&

31,756,712 41,066,097 41,066,097 30,188,547

0.6367041 0.7733073 0.0007329 1.3603204

2007 24,406,194 38,382,645 49,424 50,369,125 0.6884 41&

38,382,645 50,369,125 50,369,125 40,098,051

0.6358654 0.7620272 0.0009812 1.256149

2008 30,513,179 45,716,789 66,624 61,023,261 0.6473 45&

45,716,789 61,023,261 61,023,261 43,654,271

0.6674392 0.7491699 0.0010918 1.3978761

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Islamabad


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(PPL)_______________________________________________________________________

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Cross Sectional Analysis 2008)

0

2

4

6

PPL OGDCL POL

2.78 3.68 4.21

Current Ratio

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Islamabad

RATIOS Pa-.$tan Pet%ole#m

lt"

OGDCL POL

Current Ratio 2.788254 84I 4.218227

Quick Ratio 2.670103 84:9 3.433773

ROA 50.00254& //4:6 35.9309

ROE 45.14426& 141/; 33.96

Gross Profit Margin 64.54& :0401 58.00&

Net Profit Margin 43& 894// 47.22&

Debt Ratio 0.284629 046:80 0.862330

AR Turnover 4.11297 848 8.806175

D!O 88.74366 994// 41.44819

Fixed Assets Turnover

Ratio

2.15 14:; 1.62


16/20


(PPL)_______________________________________________________________________

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Current ratio o3 PPl is almost +ood4 !ts mean t*at it *as su33i-ient -urrent assets to

meet its -urrent liabilities4 5ut its ratio is less t*an o+d-l and ol4

0

5

PPL OGDC POL

2.67 3.67 3.43

Quick ratio

ui-k ratio o3 PPl is also +ood but it is less t*an O=DCL and POL4 !t@s mean

t*at l maintain more sto-k le2el t*an o+d-l and ol4

0%

50%

100%

PPL OGDCL POL

50% 55.72%35.93%

Return on Assets (ROA)

PPL *as su33i-ient return on asset but it is less t*an O=DCL4 O+d-l *as *i+*estreturn on asset and ol *as lo.est return on asset4 !ts means t*at -oman% is

e33i-ientl% utili?in+ its assets4

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Islamabad


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(PPL)_______________________________________________________________________

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0.00%

20.00%

40.00%

60.00%

PPL OGDCL POL

45.14% 45.36%33.96%

Return on Equity (ROE)

PPL and O=DCL *a2e almost e>ual return on e>uit% and POL *as lo.est return

on e>uit% as -omare .it* ot*ers4 !ts means t*at l is more 3inan-in+ its assets

.it* e>uit% and 2er% lo. le2el o3 debt is maintained4

0.00%

50.00%

100.00%

PPL OGDCL POL

64.54% 70.01% 58.00%

Gross Profit Ratio

=ross ro3it mar+in o3 PPL is 2er% +ood but as -omare .it* ot*ers O=DCL *as*i+*est +ross ro3it mar+in and ol *as lo.est4

43%33.55%

47.22%

0%

20%

40%

60%

PPL OGDCL POL

Net Profit Margin

Netro3it mar+in o3 PPL is +ood but POL *as *i+*est net ro3it mar+in and

o+d-l *as lo.est as -omare .it* ot*ers4 5e-ause o+d-l *as more oeratin+

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Islamabad


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(PPL)_______________________________________________________________________

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administrati2e e,enses as -omare .it* l and it *as also 3inan-e -ost *i+*ert*an l4

0

0.5

1

PPL OGDCL POL

0.2846 0.2736

0.8623

Debt Ratio

Debt ratio s*o.s t*at PPL is less risk% as -omare .it* POL its mean t*at total

assets o3 l is more t*an its total liabilities4 O=DCL *as lo.est risk and ol *as

*i+*est risk o3 de3ault as -omare .it* ot*ers4

0

5

10

PPL OGDCL POL

4.11 3.66

8.8

A/R urno!er

A


19/20


(PPL)_______________________________________________________________________

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0

50

100

PPL OGDC POL

88.7499.65

41.44

D"O

D"O o3 O=DCL is *i+*est as -omare .it* ot*ers but POL *as lo.est D"O its

means t*at ol -an -on2ert its Auit% and -oman% is less le2era+ed as 2er% lo.

le2el o3 debt is maintained b% t*e -oman%4 =o2ernment o.ns :I4;0 s*ares o3 t*e-oman%4

Fe *a2e also anal%?ed t*at t*ere is 2er% lo. le2el o3 risk o3 de3ault4 Coman%@s

oeratin+ and administrati2e e,enses are -ontrolled in better .a%4 Coman% *as *i+*

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Islamabad


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(PPL)_______________________________________________________________________

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return on asset and it *as also *i+* return on e>uit% on t*e ot*er *and -oman% *as3inan-e -ost 2er% lo. as -omare .it* ot*er -omanies

Fe *a2e also anal%?ed t*e -oman% .it* ?7s-ore t*rou+* .*i-* .e 3ind t*at its 7s-oreis 1)2344t*at s*o.s it is in +%a! onearea4

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Islamabad

final+project+of+afsthe assets what the firm owns are listed according to the degree of their...

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