Download - Fin 254 Group Project ACI
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Group MemberM M Naim 082011030
Moynul Hossain 081840530
Md Sayed Hasan 081223030
ACIIncome Statement
2008
Taka
Continuing operationsRevenue 5,958,852,265
Cost of sales 4,017,439,769
Gross profit 1,941,412,496
Aministrative, selling and distribution expenses 1,324,537,151
Operating Profit 616,875,345
other income 56,164,036
Profit from sales of shares 779,634,140
Profit before interest and tax 1,452,673,521
Finance costs 251,972,260
1,200,701,261
Provision for contribution to WPPF 21,053,357
Profit before tax 1,179,647,904
Income tax
current tax expenses 97,719,146
deferred tax expense 9,245,208106,964,354
Net profit after tax from continuing operations 1,072,683,550
Discontinued operation:profit from discontinued operations 2,983,333
Profit from total operations 1,075,666,883
Earning per shareBasic earning per share for continuing operation 55.280
Basic earning per share for Discontinuing operations 0.15
Market Price per share 194.60
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Balance Sheet2008
Taka
Assets:Property, plant and equipment :
At cost/revaluation 1,669,956,000Accumulated depriciation 549,379,587
1,120,576,413
Capital Work-In-Process 135,098,300
1,255,674,713
Investments 670,267,741
Total non-current assets 1,925,942,454
Inventories 1,838,739,417
Trade Receivables 737,940,933
Other Receivables 80,820,983
Advances, deposits and prepayments 241,051,023Advance income tax 177,028,869
Inter-company receivables 862,058,775
Cash and cash equivalents 211,924,637
Assets held for discontinued operations 820,995,280
Assets classified as held for sale 18,601,750
Total Current assets 4,989,161,667
Total assets 6,915,104,121
Equity:
Share capital 161,700,000Share Premium 250,022,474
Capital reserves 1,671,386
Revaluation surplus 303,147,632
Retained earnings 1,488,114,482
Total equity 2,204,655,974
Liability:Long Term Liabilities 309,663,981
Total non-curent liabilities 309,663,981
Bank overdrafts 732,188,602
Short term bank loan 1,816,568,620
Long term bank loan-current portion 104,776,269
Trade payables 325,560,055
Other payables 391,244,398
Inter-company Payables 709,609,851
Obligation under finance lease - current portion 5,718,892
liabilities held for discontinued operations 78,567,005
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provision for taxation 236,550,474
Total current liabilities 4,400,784,166
Total Liabilities 4,710,448,147
Total equity and liabilities 6,915,104,121
Four Year Ratio Analysis
Short term Solvency, or Liquidity, ratio
Current ratio (Times) 1.134
Quick ratio(Times) 0.716
Cash ratio(Times) 0.048
Net Working Capital to total asset(Percentage) 8.509
Interval measure(Days) 1374.853
Long Term solvency, or financial leverage , ratio
Total debt ratio(Times) 0.681
Debt-equity ratio(Times) 0.371
Equity multiplier(Times) 3.137
Long-term debt ratio(Times) 0.123
Times interest earn ratio(Times) 5.765
Cash coverage ratio(Times) 7.946
Asset utilization, or Turnover, ratio
Inventory turnover(Times) 2.185
Days sales in inventory(Days) 167.057
Receivables turnover(Times) 3.545
Days' sales in receivables(Days) 102.956
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NWC turnover(Times) 2.370
Fixed asset turnover(Times) 5.318
Total asset turnover(Times) 0.862
Profitability ratios
Profit margin(Percentage) 18.002
Return on assets (ROA)(Percentage) 15.512
Return on Equity (ROE)(percentage) 48.655
Market Value ratio
Price-earning ratio 3.520
Comparision Of ACI and Square 20ACI
Short term Solvency, or Liquidity, ratio
Current ratio (Times) 1.134
Quick ratio(Times) 0.716
Cash ratio(Times) 0.048
Net Working Capital to total asset(Percentage) 8.509
Interval measure(days) 1,374.853
Long Term solvency, or financial leverage , ratio
Total debt ratio(Times) 0.681
Debt-equity ratio(Times) 0.371
Equity multiplier(Times) 3.137Long-term debt ratio(Times) 0.123
Times interest earn ratio(Times) 5.765
Cash coverage ratio(Times) 7.946
Asset utilization, or Turnover, ratio
Inventory turnover(Times) 2.185
Days sales in inventory(Days) 167.057
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Receivables turnover(Times) 3.545
Days' sales in receivables(Days) 102.956
NWC turnover(Times) 2.370
Fixed asset turnover(Times) 5.318
Total asset turnover(Times) 0.862
Profitability ratiosProfit margin(Percentage) 18.002
Return on assets (ROA)(Percentage) 15.512
Return on Equity (ROE)(Percentage) 48.655
Market Value ratio
Price-earning ratio 3.520
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2009 2010 2011
Taka Taka Taka
7,228,289,966 8,963,079,558 10,307,541,492
4,862,554,832 5,932,316,895 6,110,286,402
2,365,735,134 3,030,762,663 4,197,255,090
1,719,222,750 1,736,414,978 1,779,825,352
646,512,384 1,294,347,685 2,417,429,738
43,083,330 34,466,664 37,913,330
654,561,881 0 0
1,344,157,595 1,328,814,349 2,455,343,068
212,744,711 182,960,451 159,175,593
1,131,412,884 1,145,853,898 2,296,167,475
23,842,550 26,942,082 30,444,552
1,107,570,334 1,118,911,816 2,265,722,923
117,416,377 142,073,816 284,147,632
3,511,274 2,176,990 3,309,025120,927,651 144,250,806 287,456,657
986,642,683 974,661,010 1,978,266,266
0 0 0
986,642,683 974,661,010 1,978,266,266
50.850 50.232 101.957
0 0 0
188.70 220.50 450.70
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353,966,851 527,410,608 817,486,442
4,176,873,529 3,978,594,479 3,732,178,968
4,494,686,971 4,301,407,921 4,054,992,410
7,524,887,877 8,650,554,169 9,904,414,936
1.285 1.616 2.014
0.902 1.115 1.266
0.172 0.144 0.046
15.799 28.344 38.214
1139.168 1351.712 1541.568
0.597 0.497 0.409
0.406 0.438 0.405
2.483 1.989 1.693
0.095 0.069 0.052
6.318 7.263 15.425
9.392 11.524 21.256
3.046 2.973 2.187
119.841 122.788 166.896
3.012 3.153 3.031
121.194 115.748 120.416
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2.159 1.918 1.670
6.148 8.454 11.306
0.961 1.036 1.041
13.650 10.874 19.192
13.112 11.267 19.974
32.560 22.410 33.820
3.711 4.390 4.421
08 2009
SQUARE ACI SQUARE
1.260 1.285 1.455
0.681 0.902 0.661
0.059 0.172 0.111
7.200 15.799 9.100
951.458 1,139.168 788.228
0.337 0.597 0.249
0.043 0.406 0.048
1.509 2.483 1.3320.069 0.095 0.043
4.858 6.318 5.964
12.830 9.392 14.636
2.396 3.046 2.703
152.337 119.841 135.035
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26.553 3.012 23.801
13.746 121.194 15.335
10.500 2.159 9.451
2.340 6.148 2.320
0.753 0.961 0.858
14.400 13.650 16.600
10.900 13.112 14.300
11.400 32.560 19.000
27.529 3.711 20.128
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Details
there have been 24% increase in reveneu in 2010 how ever the rate has increases by
there has been an increase in COGS by 1% (approx) in 2010 and 3% (approx) due to i
1% increase in distribution cost in 2010; 2.5% increase in sales and distribution
20% decrease in other income due to decrease in receivable in 2010;10% increase in
no shares were sold in 2010 and 2011 hence no profit;
14% decrease in the financing cost as interest rate increased by 1% due to increase i
rate of contribution to WPPF stays constant for 2010 and 2011
1% increase in taxation due to increase in sales which sum up to 21% in total taxation
defered tax rate decrease by 38% in 2010; increased by 52 % in 2011 due to huge sel
19403003 number of total shares calculated from 2009 and the number of shares sta
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10000000 worth of plants and machinery bought for Agrochemicals Limited of which10% straightline depriciation of plant and machinery added in 2010 along with the pr
10000000 plant and machinery used in work in process in 2010; work in process rema
As decided by the company managers in 2010 and in 2011 increase in investment du
25% increase in inventory due to increase in production for 2010 and 40% in 2011 sin
In 2010 59% increase in debtors as the company usually have a tendency to sale in cr
reduction of 13%; increase in 5% due to new suppliers
increase of 52%; increase of 40% as most of the previus prepayments are being utilizincrease of 62%; decrease in advance taxation of 20% as current year tax has been p
reduction of 20%; increase in 10% due to support in purchase of raw materials.
reduction of 20% due to payments of plant machinery and payments recievable in 20
increase of approx. 2% for both year
back calculation, TA- ( sum of all equity except retained earning)- TL
loan taken of 5000000 for purchase of plant and machinery
15% increase on bank overdraft in 2010; 2% decrease in 2011
loan repayent of 38 % in 2010; 10% reduction due to repayment in 2011
increase in the credit purchase of raw materials by 17%; 10% increase in 2011 due to
payed off previous dues in 2010 and 2011 from cash
payed off previous dues in 2010 and 2011 from cash
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increase in provisions for tax by 49% due to increase in anticipated revenues;55% inc
During the year 2008 to 2010 a slight change in inventory increase a little amount in t
This reflects the actual liquidity of the company as inventory has been substracted.Pr
From 2008 to 2009 there has been an increasing trend in liquidity however the trend
Due to increase in production the debtors, stock and creditors increases which increa
The Burnrate increases through the year as the amount of assets increases as year g
the trend from 2008 to 2011 suggests that the amount of debt financing for assets ha
the trend from 2009 to 2011 suggests that the proportion of debt has increased due t
the ratio has been on a decreseing trend due to increase in equity ( contribution of in
the ratio has been on a decresing trend as the previousloans have been repayed
there has been increase in the TIE ratio in the last 4 years due to elevated ravenues. I
the ratio considers non-cash expense in its calculation therefore there has been an in
from 2008-2009 increase in turnover signifies higher COGS however from 2009-2011 i
There has been excess increase in production in 2011
The company policy requres it to reduce credit sales in order to support the existing li
Due to increase in receivables the day sales receivables also increases.
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There has been an increase in inventory which increases the ratio.
The contribution of each dollar of fixed assets increases as we go from 2008 to 2011
The ratio rises as the sales increases gradually.
Margin increases as revenue increases each year.
Due to increase in sales the net income also increases which increases the ROA gradu
The net income increase gradually in the year 2008 and 2009 but falls in 2010 due to
From 2008 to 2009 Square has managed to increase their current assets than Aci whi
Aci has managed to increase their debtors which results in higher liquidity than Squar
Both the company manages a lower level of cash liquidity.
Typically ACI maintains a higher NWC to asset ratio than Square.
In terms of survivability ACI has a better chance of surviving on its liquid assets than
ACI hostorically maintains a higher total debt ratio than square.
ACI has a larger proportion of Debts than Square.
ACI maintains a higher equity multiplier ratio than square.Both the firms are decreasing their long term debt ratios because they are paying off
ACI has a greater capability of handling their financial cost.
Square has a higher ability to repay their interest than ACI.
In 2009 Aci maintains a greater amount of Inventory turnover than Square.
ACI has a greater tendency to maintain low Inventory.
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Square has a tendency to collect their receivables earlier than ACI.
Square utilizes its working capital higher than ACI.
For every dollar in fixed assets ACI utilizes its sales more than Square.
ACI also utilizes its assets much more efficiently than Square.
ACI profit margin decreases from 2008 to 2009 whereas Square profit margin increas
Return on assets of ACI decreases in 2009 whereas Square increase in 2009
Return on equity is higher in Square than ACI.
ACI has a consistant and lower price earning ratio compared to square.
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3% (approx) due to allocation of investment from motor limited to agro chemicals
increase in inventory and raw material in agro limited;
other income due to receive of dividends from other compny shares which they di
long term loan ; 13% decrease in 2011;
: 200% increase in taxation due to huge increase in revenue.
l
ed same for 2010 and 2011
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00000 long term loan in 2010;vius depriciations; depriciation charged on all assets according to the company de
ins same in 2011.
to healthy amount of profit.
ce production has been maximized.
edit and withdraw cash with in a period of 1 year; in 2011 its 25%
d in 2011.id off along with some previus arrears.
0;70% reduction in cash due to payment of receivables and loan repayments in 2
increase in purchase of raw material
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rease in provision for tax due to previus year provision and current year increase i
he ratio; In year 2011 due 2 commencement of full production in the agro chemic
vius current ratio has been elevated due to increased inventory levels from new i
tarting from 2009 to 2011 has been declining due to excessive cash outflow
es the rate from 2008 to 2011.
es by.
s been declining and the company has been using equity financing.
issue of more loans.
resed loan amt. )
t also suggests a strong liquidity position of the company to cover its financial cost
creasing trend
t signifies higher inventory due to production from new investment in the agro uni
quidity crisis.
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ue to increase in sales.
ally.
low production but again increases in 2011 as sales increases rapidly.
h increases their current ratio.
e.
square.
heir long term debts.
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s
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limited,The new investment would not yeild immediate retu 0.24 0.21
0.22 0.21
0.28 0.22
0.01 0.3
1 0.05
nt sold on 2010. -0.2 -0.23
-1 -0.16
-0.01 -0.07
-0.14 -0.16
0.01 -0.06
0.13 0.13
0.01 -0.06
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
0.21 0.2
-0.38 -0.620.19 0.13
-0.01 -0.08
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#DIV/0! -1
-0.01 -0.08
#DIV/0! #DIV/0!
-0.01 -0.08
0 0
#DIV/0! #DIV/0!0.17 -0.03
#DIV/0! #DIV/0!
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#DIV/0! #DIV/0!
0 0
#VALUE! #VALUE!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
0.01 0.1priciation rate. 0.19 0.19
-0.1 0.05
0.01 -0.21
-0.09 0.02
0.2 0.31
0.03 0.12
0.25 -0.13
0.59 0.57
-0.13 -0.14
0.52 0.530.62 0.6
-0.2 0.36
11. -0.2 2.39
#DIV/0! -1
#DIV/0! -1
0.2 0.08
0.15 0.09
#DIV/0! #DIV/0!
0 0.20 0
0 0
0.02 -0.01
0.57 0.53
0.44 0.37
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
0.02 0.03
0.02 0.03
#DIV/0! #DIV/0!0.15 -0.56
0 0.02
-0.38 -0.42
0.17 0.16
-0.38 1.94
-0.38 -0.92
-1 -0.68
#DIV/0! -1
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revenue 0.49 0.5
-0.05 -0.05
-0.04 -0.05
0.15 0.09
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
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ls the debtors increases thus the ratio doubles. 0.26 0.13
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vestments. 0.24 0.26
#DIV/0! #DIV/0!
-0.16 2.57#DIV/0! #DIV/0!
0.79 0.86
#DIV/0! #DIV/0!
0.19 -0.17
#DIV/0! #DIV/0!
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#DIV/0! #DIV/0!
-0.17 -0.12
#DIV/0! #DIV/0!
0.08 0.09
s.
its.
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