Intech.netINTECH ONLINE LIMITED (INTECH)Basic information of Intech Online Limited (INTECH)Listing Year 2002Market Category AElectronic ShareY Share Percentage: Sponsor/Director 2.55o!t.0 "nstit#te $.%&'oreign 0P#(lic )).0)*e+ark A#thori,e- Capital in .D/0 1+n2200.0 Pai-3#p Capital in .D/0 1+n245$.052 5eek6s *ange 22.% 3 78.& 'ace 9al#e40.0Market Lot 500 /otal no. o: Sec#rities 45$2&$77.#siness Seg+ent IT Sector ";/EC< =;L";E L"M"/ED.alance SheetAs o: 12008320402BalanceSheet(tk.000) Common Size Statement(tk.000)2010 2009 2008 2007 2006 2010 2009 2008 2007 2006Non-current asset!ro"ert#$ "lant % e&ui"ment '2191081 69922(72 870)9279 6)220)'( '0('0(880.)1)(0.((680.'()70.(2010.)8''*e++ere, ta- asset 1688120 8)'2( 0 0 00.01010.000'0.00000.00000.0000,e+erre, e-". $Net o+ amortization 0 )92186 78()71 1176''6 1'687(10.00000.002'0.00(90.00780.0120.otal +i-e, asset ')879201 70)98182 8782)6'0 6()96910 '20192290.)2)'0.((980.'(860.(2790.)97'Current asset/n0entories 2299('1 22))697 22((7'' 2((86(0 28)()(70.01)80.01()0.01(00.016)0.0217a,0ance$,e"osit% "re"a#ments )919'802 )70''08) )2)96789 )19'961( 21002'(70.2)'(0.2)680.202(0.212(0.160'.ra,e % other recei0ales 70181'07 )7987218 1('8627) 2860)09' 269966(20.(21(0.2(270.09110.19010.206)in0estment in shares 16(7)0 8182077 0 '0)8(6 00.00100.0'2)0.00000.00))0.0000Cash % cash e&ui0alents 821)60 6(20'' 2)0)029' 22'86')8 280169180.00(90.00(10.1()90.1'010.21(1.otal current asset1126628'0 861001)0 722'8112 861017)) 788'0('(0.676'0.''020.('1(0.'7210.602'.otal assets166'(20'11'6(98)121600817621'0(986()1)086968)1.00001.00001.00001.00001.00001&uit#Ca"ital % reser0es Share Ca"ital 1((799(901)16)'900119669000108790000 989000000.869(0.8(110.7(7'0.72290.7''72etaine, earnin3s 1'11'221 1()7010) 211077(6 2698'960 2721)6980.09080.09180.1)190.179)0.2079.otal 1&uit#1'991(7111(600600)1(07767(61)'77'96012611)6980.96020.9))00.879(0.90220.96)7Current lia4ilities % "ro0ision5ia4ilities +or e-"ense % "urchase '866292 '60289) 67777'0 '16'860 (699()00.0)'20.0)'80.0(2)0.0)()0.0)'96,0ance % ,e"osit +rom customer 1'000 1'000 1'000 1'000 19)900.00010.00010.00010.00010.0001Bank o0er,ra+t ((98' )988861 118('718 9)7179' 2(2000.000)0.02''0.07(00.062)0.0002!ro0ision +or income ta- 70106) 88'''' 666'(8 170028 1296'0.00(20.00'70.00(20.00110.0001.otal current 5ia4ilities 6627)(0 10(92)09 19)0'016 1(72268) (7''98'0.0)980.06700.12060.09780.0)6).otal 1&uit# % lia4ilities166'(20'11'6(98)121600817621'0(986()1)086968)1.00001.00001.00001.00001.0000Comments:Cash 9s C#rrent Lia(ilities:";/ECcashan-(ank(alancesco+pare-tootherc#rrentassets./his in-icatesthat?r+cashratio>ill(elo>eran-thatthe?r++ay(e#na(letopay c#rrent lia(ility (y cash an- (ank (alances.e!er their cash (alances are -ecreasing :ro+ 2008.=!ertheco#rseo:last5years@theircash(alancehassho>na+onstro#s 240A-ecrease./his -ecrease in-icates +anage+ent ha!e yet not -isco!ere- this >eakness in their ?nancial str#ct#re an- >orking to i+pro!e.C#rrent Assets !s. C#rrent Lia(ilities:";/EC< al>ays +aintain higher le!el o: c#rrent o!er its c#rrent lia(ilities. "ts c#rrent assets are %).88A higher than c#rrent lia(ilitiesto pro!i-eliB#i-ity >hene!er nee- :orpayoC arises.'ro+ 2008 to 2040@it is o(ser!e- thatC#rrentAssetsareonana!erage5&.02Aan-theS/Lia(ilitiesareonana!erage &.22A@ >hich+eans that Short3ter+ asset are a-eB#ate to +eet Short3ter+ o(ligations."n!entories !s. Pro?ta(ility:'ro+ 2008 to 2040 ";/EChich helps to increase ?r+Ds pro?ta(ility./hat+eansithasa s+allproportiono:in!entoryhol-inginits>are ho#se. So 'ir+Ds has >ell liB#i-ity position an- ?r+ can sho> itseEciency (ycon!erting in!entories into cash !ery easily.C#rrent Asset !s. 'iFe- Asset:=!erthelast5years@?Fe-assetso:";/ECithlittle G#ct#ation in the +i--le >ith -eclining tren-.=n the other han- c#rrent asset o:";/EC< has -ecline in 200) an- again increases.";/ECe can ?n- that altho#gh a!erage n#+(er o: -ays ";/ECays (elo> 4 >ith the +aFi+#+ (eing 4.%$. As this is an "/ ?r+@ so it cost o: goo-s sol- is too lo> an- there:ore in!entory t#rno!er ratio is !ery lo>.A!erage ;o o: -ays "n!entory in Stock: A!erage ;o. o: Days "n!entory in Stock says the a!erage n#+(er o: -ays in!entory is hel- in han- #ntil it is sol-. Lo>er !al#e o: this ratio in-icates that the ?r+ nee-s less ti+e to con!ert its in!entory into sales. 'ro+ the a(o!e ta(le >e see that a!erage no o: -ays in stock is too high as ";/ +any ti+es recei!a(les t#rn o!er into cash in a year. ays #n-er 28& -ays@ >ith that (eing only 244 -ays in 200& an- 2040. "t sho>s that the ?r+ takes !ery little ti+e to collect its recei!a(les. Paya(le /#rno!er *atio: Paya(le t#rno!er ratio +eas#res ho> +any ti+es the s#ppliers are pai- in a year. Lo>er the ratio is (etter (eca#se then the co+pany pay its cre-itor less :reB#ently@ an- ha!ing +ore liB#i-ity in han- as accr#als. 'ro+ the a(o!e graph >e see that paya(le t#rno!er ratio >as highest -#ring 200& I 2008 (#t it pays !ery in:reB#ently to its s#pplier -#ring 200)@ 200$ I 2040. "t in-icates ";/ays constant at (eing a(o!e 470 -ays@ +eaning the ?r+ is keeping +ore paya(les a+o#nt in han- :or longer perio- o: ti+e. Long ter+ Acti!ity *atios7ear 2006 2007 2008 2009 20109i-e, 6sset .urno0er2atio .76 .62 .)6 .(7 0.7(.otal 6sset .urno0er2atio .)0 .26 .20 .21 .2(Analysis: /hese ratios +eas#re the eEciency o: long ter+ capital in!est+ent in generating sales. /hese ratios in-icate the le!el o: #tili,ation o: ?Fe- assets to generate certainle!el o: sales. /ren- o: this ratios in-icates that the ho> eEcient the ?r+ in #tili,ing its ?Fe- assets. 'iFe- Asset /#rno!er *atio: /his ratio +eas#res #sing the ?Fe- asset ho> +#ch sales the ?r+ generates. e can see that the ratio is in constant le!el o: (eing o!er .20. /his sho>s (y #tili,ing /k 4 asset@ the ?r+ is generating /k .20 >orth o: sales. /his in-icates that the ?r+ is not eEcient in +anaging its total assets to generate sales. LiB#i-ity Analysis Analysis:LiB#i-ity +eans the a(ility o: the ?r+ to #se its C#rrent Assets to pay its Short /er+ o(ligations. S/ len-ers an- S/ cre-itors are +ore concern a(o#t the liB#i-ity analysis o: a ?r+@ (eca#se they >ant to kno> that >hether a ?r+ has a(ility to pay its short ter+ o(ligation in3ti+e or not. Cash Cycle: Cash cycle capt#res the interrelationship (et>een sales@ collections an- tra-e cre-it. Cash cycle is the appropriate +eas#res to i-enti:y the ti+e perio-@ >hich is tie- #p >ith the operation o: a co+pany. Shorter the cash cycle o: a ?r+ is@ +ore eEcient it is in +anaging its operations an- cash. Longer the cycle is@ less eEcient an- increasing ?nancial cost is in-icate-. ": the cash cycle o: a ?r+ is negati!e@ it in-icates the ?r+ is collecting cash e!en (e:ore it has sol- its pro-#cts. /he cash cycle can (e calc#late- as Cash Cycle J ;o. o: -ays in!entory in stock K ;o. o: -ay recei!a(les re+ain o#tstan-ing 3 ;o. o: -ays paya(le o#tstan-ing /a(le: Year >ise Cash Cycle o: ";/EChich cannot (e con!erte- into cash i.e. prepai- eFpenses an- -epreciation. 'ro+ the a(o!e ta(le >e can i-enti:y that in2008 the ?r+ has /k 45.$) B#ick assets 1cash@ recei!a(les an- +arketa(le sec#rities2 to pay its /k 4 taka c#rrent lia(ility >hich re-#ce to 7.&5 in 200) (#t thenincrease to 48.85 in 2040. /his gi!es in-ication that tho#gh the ?r+ B#ick ratio is G#ct#ating@ it has s#Ecient cash to pay its c#rrent lia(ilities. Cash *atio: Cash ratio is the +ost conser!ati!e +eas#ring tool o: liB#i-ity position o: the co+pany. 'ro+ the a(o!e ta(le >e can see that in 2040 the ?r+ ha- only 0.45 taka o: cash to pay its 4 taka c#rrent lia(ility. e!er@ ";/orse this sit#ation o!er the years. =!er the last 5 years@ this ratio >as high in 200) an- lo>est in 2040 >hich are 0.45 I 44.$8 respecti!ely. As the cash ratio is -ecreasing an- ";/ing ta(le sho>s so+e i+portant ratios that sha-es so+e light into the ?r+6s capital str#ct#re. ";/EC< is an all eB#ity ?r+ it -oes not ha!e Long ter+ De(t an- Sol!ency *atios.Pro?ta(ility Analysis o: ";/ECas 0.2& +eaning :or e!ery /k 4 salesH ";/EC< +aintaine- pro?t o: /k 0.2& :ro+ its core (#siness. PretaF Margin: 'ro+ 2008 to 2040@ this ratio -ecrease- (y +ore than 50A. =n 200) an- on>ar-s@ this ratio >as sta(le at aro#n- 0.4&3 +eaning :or e!ery /k 4 sales the ?r+ ha- a pretaF earnings o: /k 0.4&. ;et Pro?t Margin:'or ";/ECe- a -ecreasing tren- in its *=E o!er the co#rse o: last % years. *=E in2040 sho>e- an increase o: %00A :ro+ that o: 200). "n 2040@ this ?g#re >as 0.42@ +eaning :or e!ery /k 4 in!este-@ eB#ity hol-ers recei!e- a ret#rn o: /k 0.42.=perating@ 'inancial Le!erage an- /otal Le!erage/a(le: =LE@ 'LE an- /LE o: ";/ECe see that ";/EC< ha- eFcessi!e a+o#nt o: =LE present thro#gho#t last 5 years. e!er this ?g#re >as 2.28 in 2008 an- increases :ro+ 200& to 2040. "t in-icates@ :or e!ery 4 A change in the sales ?g#re@ E."/ >o#l- change (y 2.28A :or +2008. MaMor reason :or any le!erage eCect to eFist is -#e to the eFistence o: ?Fe- cost in the ?r+s totalcost str#ct#re. 'inancial Le!erage ECect 1'LE2: 'inancial le!erage +eas#res certain Percentage changes in net inco+e that occ#rs-#e to a percentage change in operating pro?t. 'ro+ ta(le >e see that 'LE o: ";/EC< >as4.5 in 2008 I 200$ (#t in others years =LE re+ain less than 4.50. "t in-icates that i: in 2040 E."/ change- (y /k 4 then the net inco+e o: the ?r+ >o#l- change (y /k 4.50. /his le!erage eCect eFists -#e to the presence o: ?Fe- ?nancial costs in the ?r+6s total cost str#ct#re. /otal Le!erage ECect 1/LE2: /he +#ltiplication o: =LE an- 'LE res#lts the /LE. /otal le!erage +eas#re Percentage change in net inco+e that occ#rs -#e to a percentage change in the ?r+6s sales re!en#e. 'ro+ the graph >e see that pre!io#sly@ ";/EC< ha- signi?cantly higher a+o#nt o: /LE present in 200)30$. e!er it has -roppe- signi?cantly a:ter>ar-s. "n 2040 the ?r+ ha- a total le!erage o: 2.)&3 +eaning i: sales o: ";/EC< change- 1increase/-ecrease2 (y 4 A then net inco+e >o#l- ha!e change- (y 2.)&A. Earnings per Share.asic EPS +eas#re earning a!aila(le to co++on sharehol-er. As ";/EC< has no pre:erre- stock an- con!erti(le sec#rities so no -il#te- EPS >ill (e present. /a(le: .asic EPS o: ";/ECere +eas#re- at lo>er o: cost an- at net reali,a(le !al#e@ cost (eing -eter+ine- #n-er '"'= +etho-. Costs it incl#-e- in its +eas#re+ent >ere eFpen-it#res inc#rre- in acB#iring the in!entories :or their ser!ice p#rposes an- other costs inc#rre- in (ringing the+ to their eFisting location an- con-ition.