assignment final financial control

8/17/2019 Assignment Final Financial Control

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A Term Paper

on

Ratio Analysis of Grameenphone Ltd (GP).

Course Code: CB-6!

Course Title: "inan#ial Analysis and Control.

$u%mitted To:

Profess Abu Taleb

Department of Banking and Insurance

Faculty of Business Studies (FBS)

ni!ersity of D"aka

Prepared By:

#akia Akter

ID $o% &'*+,*

*t" Batc"- Banking and Insurance Department

Faculty of Business Studies (FBS)

ni!ersity of D"aka

&ate of $u%mission: 'ay *6


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$tudent+s &e#laration

I do "ereby declare t"at t"e ork presented in t"is Term paper "as been carried out by me and

"as not been pre!iously submitted to any ot"er ni!ersity for an academic degree.

T"e ork i "a!e presented does not breac" any e/isting copyrig"t and no portion of t"is report is

copied from any ork done earlier for a degree or ot"erise.

I furt"er undertake to indemnify t"e department against any loss or damage arising from breac"

of t"e foregoing obligations.

0ours1 sincerely-

#akia Akter


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Parti#ulars Pa,e o.

2rigin of t"e report

2b3ecti!e of t"e report

4et"odology of t"e report

5imitation of t"e Study

2!er!ie of mobile telecom market in Banglades"

Profile of t"e 6rameenp"one

Profile of t"e 7obi

Balance S"eet of 6rameenp"one

Income Statement of 6rameenp"one

Balance S"eet of 7obi

Income Statement of 7obi7atio analysis of t"e 6rameenp"one and 7obi

Findings

8onclusion

7eference

Ta%le of Content


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R/G/ " T01 R1PRT

T"is term paper is made as a mandatory part of our course 9Financial Analysis and 8ontrol: for

;4BA program under Faculty of Business Studies- ni!ersity of D"aka. To prepare a term paper on t"e basis of course outline is an opportunity for t"e students to familiari To calculate Difference 7atio Analysis of 6rameen P"one.

> To compare t"e 7atio beteen different year of 6rameenp"one .

> To get t"e outcome of financial ratio analysis.


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'1T0&LG4 " T01 R1PRT

2ur report is based on secondary data. @e "a!e collected t"is data from official eb site of

6rameenp"one. @e "a!e taken information on financial acti!ities of 6rameenp"one of last

years. After collecting t"is information- e "a!e done t"e 7atio analysis of 6rameenp"one. All

calculations and analysis are done by folloing formula.

T"e formula for eac" ratio is as follos%

a) 72A

72A $et Income After Ta/

Total Assets

%) 72;

72; $et Income Preferred Di!idends

A!erage S"are"olders1 ;Cuity

#) Accounts 7ecei!able Turno!er

Accounts 7ecei!able Sales 2n Account

Turno!er A!erage Accounts 7ecei!able

d) In!entory Turno!er

In!entory Turno!er 8ost of 6oods Sold

A!erage In!entory

e) Accounts Payable Turno!er

Accounts Payable 8ost of 6oods Sold

Turno!er A!erage Accounts Payable


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f) 8urrent 7atio

8urrent 7atio 8urrent Assets

8urrent 5iabilities

,) uick 7atio

uick 7atio 8urrent Assets In!entories

8urrent 5iabilities

h) DE; (I)

DE; (I) Total 5iabilities

Total Assets

i) DE; (II)

DE;(II) Total 5iabilities

Total S"are"olders1 ;Cuity

5) Times Interest ;arned

Times Interest ;arned Income before Interest and Ta/es

(TI;) Interest ;/pense


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L/'/TAT/ " T01 $T&4

') It is ob!ious t"at e!ery student "as some limitation. T"e study e "a!e made is of great

importance and reCuired us "uge ork. To do t"at e "a!e faced some difficulties- "ic" madeour conduction of t"e study little "a


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AB2T 67A4;;$P?2$;

PR"/L1 " T01 GRA'11P01 %

6rameenp"one 5td. is t"e largest mobile telecommunications operator in Banglades" in terms of

re!enue- co!erage and subscriber base. T"e company as incorporated on '+ 2ctober 'GG* as a

pri!ate limited company. 6rameenp"one con!erted to a public limited company on & #une

++. T"e company became stock listed and started its trading at D"aka and 8"ittagong Stock

;/c"anges from '* $o!ember ++G. T"e s"are"olding structure comprises of mainly to

sponsor S"are"olders namely Telenor 4obile 8ommunications AS (&&.H+) and 6rameen

Telecom (,.+). T"e rest '+.++ s"are"olding includes 6eneral public J ot"er Institutions.

6rameenp"one 5td. is a leading pro!ider of telecommunications ser!ices of Banglades". T"e

company operates a digital mobile telecommunications netork based on t"e 6S4 standard in

t"e G++ 4?


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'+.++ s"are"olding includes 6eneral Public (.HG)- Foreign (.'+) and 2t"er Institutions

(&.+') as of ' December +'&.

1.2 Vision

6rameenp"one !ision is 97e8re here to help9. It is simple but significant. It means e e/ist

to "elp

our customers get t"e full benefit of communications ser!ices in t"eir daily li!es. @e1re "ere

to "elp.

1.3 Mission

6rameenp"one is t"e only reliable means of communication t"at brings t"e people of

Banglades"

close to t"eir lo!ed ones and important t"ings in t"eir li!es t"roug" unparalleled netork-

rele!ant

inno!ations J ser!ices.

1.4 Value Statement

T"ere are four statements for 6rameenp"one- t"ey are%MAKE IT EASY

;!eryt"ing e produce s"ould be easy to understand and use. @e s"ould alays remember

t"at e

try to make customers1 li!es easier.

KEEP P!MISES

;!eryt"ing e do s"ould ork perfectly. If it doesn1t- e1re t"ere to put t"ings rig"t. @e1re

about

deli!ery- not o!er=promising. @e1re about actions- not ords.

"E I#SPII#$

@e are creati!e. @e bring energy and imagination to our ork. ;!eryt"ing e produces"ould look

fres" and modern.

"E ESPE%T&'(

@e acknoledge and respect local cultures. @e ant to be a part of local communities

"ere!er e

operate. @e ant to "elp customers it" t"eir specific needs in a ay t"at suits ay of t"eir

life best.

Balan#e sheet and /n#ome $tatement of Grameenphone for the year ** to *;


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RAT/ AAL4$/$ " GRA'11P01 A& RB/:

a) Current Ratio

8urrent 7atio 8urrent Assets

8urrent 5iabilities

+',- 8urrent 7atio of 6rameenp"one H,-H*,-G&E*'-,+-'*'.H

+'- 8urrent 7atio of 6rameenp"one *,-H',-G&E'-+-'*.+

+'- 8urrent 7atio of 6rameenp"one '-,+-+&-+++E*-+-*+-++++.

+''- 8urrent 7atio of 6rameenp"one ','+++E&,'GH++++.&H

According t" ratio it is seen t"at bot" 6P and 7obi are facing liCuidity problem. Because after

paying liabilities- a small portion is left as current assets "ic" is not good for bot". ?ere 6P "as

more liCuidity t"an 7obi in +',. But in +'- 6P "ad !ery good liCuidity position.

%)


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As t"e 6P "as !ery small in!entory- "ere current and Cuick ratio are almost same in +',. 2n t"e

ot"er "and- 7obi1s current and Cuick ratio is absolutely same because of not "a!ing any

in!entory. In +'- 8urrent 7atio and uick ratio ere same for 7obi because of not "a!ing any

in!entory.

#) &e%t to 1>uity Ratio

DE; Total 5iabilities

Total ;Cuity

+',- DE; of 6rameenp"one *'-,+-'*E'-*,-&+ '.G&

+'- DE; of 6rameenp"one ,'-+'-&*E'-*,-+' '.G,

+'- DE; of 6rameenp"one H++++E&,&H++++.'*

+''- DE; of 6rameenp"one +++++EHHH+++ '.H+

According to t"e Debt to eCuity ratio- 6P1s debt is !ery "ig". 2n t"e ot"er "and- 7obi is "a!ing

!ery small portion of debt. ?ere e can say t"at 7obi1s condition is good. 7obi is "a!ing more

eCuity t"an 6P in bot" +', and +'.

d) &e%t to Total Assets

DETA Total 5iabilities

Total Assets

+',- DETA of 6rameenp"one *'-,+-'*E'+-*-H& .,*G

+'- DETA of 6rameenp"one ,'-+'-&*EG&-**'-,+ .,'

+'- DETA of 6rameenp"one H++++E''**& .*G

+''- DETA of 6rameenp"one +++++E'+HG+&.*,

In case of debt to total assets- 6P is "a!ing less t"an &+ of liabilities. In contrary- 7obi is

"a!ing insignificant liabilities. ?ere- 7obi is "a!ing more assets t"an liabilities and its


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condition is good. But it ill not get interest benefit in long run. In +'- t"e debt to assts ratio

as !ery close for bot" companies.

e) A##ounts Re#ei?a%le Turno?er

Accounts 7ecei!able Sales 2n Account

Turno!er A!erage Accounts 7ecei!able

+',- 6rameenp"one '+-**-EG-'-&&H'+.&*

+'- 6rameenp"one '&-&-E'+-G-'',.+

+'- 6rameenp"one '&-&-E'+-G-'',.+

+''- 6rameenp"one '&-&-E'+-G-'',.+

?ere 6p is "as !ery smaller Account 7ecei!able t"an 7obi. And in Accounts 7ecei!able

Turno!er 6P1s condition is good. In +'- recei!able turno!er as significantly lo for 7obi.

f) RA

72A $et Income After Ta/

Total Assets

+',- 6rameenp"one'G-H+-HE'+-*-H&.'&'

+'- 6rameenp"one''-'''-&HEG&-**'-,+.''

+'- 6rameenp"one''-'''-&HEG&-**'-,+.''

+''- 6rameenp"one''-'''-&HEG&-**'-,+.''

6p1s 7eturn on Assets is "ig"er t"an 7obi. 6p is "a!ing '&.' and 7obi is "a!ing only .

7eturn on Assets. So e can say t"at 6p is able to use its total assets more t"an 7obi. In +'-

bot" companies "ad less 72A.


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,) R1

72; $et Income After Ta/

S"are"olders1 ;Cuity

+',- 6rameenp"one 'G-H+-HE'-*,-&+ .*'

+'- 6rameenp"one ''-'''-&HE'G-*&-'' .&H

+'- 6rameenp"one ''-'''-&HE'G-*&-'' .&H

+''- 6rameenp"one ''-'''-&HE'G-*&-'' .&H

6p1s 7eturn on eCuity is "ig"er t"an 7obi. 6p is "a!ing *.' and 7obi is "a!ing only 'G.&

7eturn on eCuity. So e can say t"at 6p is able to use its total eCuity more t"an 7obi.

h) Gross Profit 'ar,in

6ross Profit 4argin 6ross Profit

$et Sales

+',- 6rameenp"one *-HG*-+'E'+-**- .&G

+'- 6rameenp"one -H&-+&EHG-&-' .'

+'- 6rameenp"one -H&-+&EHG-&-' .'

+''- 6rameenp"one -H&-+&EHG-&-' .'


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According to t"e ratio- it is seen t"at 6P is "a!ing &.G and 7obi is "a!ing '.& gross Profit.

T"ey bot" "a!e almost close 6ross Profit 7tio. In +'- 7obi "ad significantly less gross profit

margin t"an year+',.

i) et Profit 'ar,in

6ross Profit 4argin $et Profit

$et Sales

+',- 6rameenp"one ''-'''-&HEHG-&-' .'G

+'- 6rameenp"one 'G-H+-HE'+-**- .'G

+'- 6rameenp"one 'G-H+-HE'+-**- .'G

+''- 6rameenp"one 'G-H+-HE'+-**- .'G

In case of net profit- 6P is earning 'G. and 7obi is earning '&.*. ?ere 6P is getting more

profit t"an 7obi. 0ear +'- as consistent it" year +', for bot" companies.

"/&/G$

/tems

*; *! * ** Time

$eries

Cross

$e#tional

a) 8urrent 7atio'.H .+

%) uick 7atio'. .+

#) Debt to ;Cuity

7atio'.G& '.G,

d) Debt to TotalAssets

.,*G .,

e) Accounts

7ecei!able

Turno!er

'+.&* ',.+

f) 72A.'&' .''


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,) 72;.*' .&H

h) 6ross Profit

4argin.&G .'

i) $et Profit 4argin

.'G .'G

According to t"e table- e can see t"at 6p "as t"e better condition t"an 7obi in all cases e/cept

debt to eCuity and debt to asset ratio. ?ere t"ere is an add situation t"at 6P1s debt is !ery "ig"

t"an its eCuity. It is also seen t"at in +', bot" 6P and 7obi "a!e liCuidity problem because t"ey

are maintaining !ery lo current and Cuick ration. After paying liabilities- t"ey ill "a!e !ery

lo current assets t"at may lead to t"e liCuidity problem. A noticeable t"ing is t"at t"ey bot"

"a!e significant profitability. ?ere e can see t"at 6P is earning 'G. and 7obi is earning

'&.* net profit. 2n t"e ot"er "and- in +' bot" 6P and 7obi "ad a "ig"er liCuidity position.

?ere e can see t"at 6P "ad !ery good liCuidity in +' t"an 7obi. And 7obi "ad less debt t"an

6p in +'. $et profit margin as consistent for bot" companies.


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Con#lusion:

From t"e abo!e discussion e can say t"at 6rameenp"one is better t"an robi from any

perspecti!e. It entered into t"e market before 7obi- its e/pertise- profitability and performance

are also better t"an 7obi.

Referen#es:

') Financial ratio foemulas.

) 8lass 5ecture of Profess Abu Taleb- Department of Banking and Insurance- ni!ersity of

D"aka.

) .google.com

,) .grameenp"one.com

&) .robi.com.bd

assignment final financial control

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