Savola Group Essay

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Commercial Banks II BNFN 4301 Course Project Savola Group Instructor: Ms. Dunia Makkawi Submitted by: Shaima Haider Rou’a Jafar Naeema Barre Due Date: June 23, 2009 Table of Contents Introduction…………………………………………………………………………………………………3 Economic Prospective and Overview…………………………………………………………...4 Industry Study: Saudi Arabia Food and Agriculture Sector…………………………………………………5 Savola Group Company Background………………………………………………………………………..7 • Company Overview……………………………………………………………………………………………………………………………8 • Major Subsidiaries…………………………………………………………………………………………………………………………….8 • Board of Directors ……………………………………………………………………………………………………………………………9 • Divisions of Savola …………………………………………………………………………………………………………………………10 Financial Instruments and Risk Management at Savola………………………………………..………….12 Analysis of Savola Company Loan Application………………………………………………….….14 Analysis of Financial Statements …………………………………………………………………….……14 • Balance Sheet………………………………………………………………………………………………………………….…………14 • Income Statement……………………………………………………………………………………………........................18 • Statement of Cash Flow………………………………………………………………………………………………………….….21 Financial Ratio Analysis of Savola Group Financial Statements ………….....…………..…22 • Savola Expense Control………………………………………………………………………………………………..………….…22 • Operating Efficiency…………………………………………………………………………………………………………………….24 • Product or Service Marketability………………………………………………………………………………………….………26 • Coverage Ratios…………………………………………………………………………………………………………………………...28 • Changes in Liquidity……………………………………………………………………………………………………………..…..…30 • Profitability Trends…………………………………………………………………………………………………………………..…..33 • Leverage Trends…………………………………………………………………………………………………………………………..36 Conclusions………………………………………………………………………………………………………………38

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