Information Services Network Ltd. (ISN)Information Services Network Ltd. (ISN)Basic information of Information Services NetworkLtd. (ISN)Listing Year: 2002MarketCategory: AEectronicS!are: YAuthorized Capital inBDT mn500Paid-up Capital inBDT* (mn)99Fae !alue "0#0Total no# o$ ordinar%&euritie&990'(5)Bu&ine&& *e+ment I" Sector,n$ormation *er-ie& .et/or0 1,2,T3DBalane *heet#s of ($%%&'$%(%)BaanceS!eet(tk.%%%)Common Si)eStatement(tk.%%%)2010 2009 2008 2007 200620102009200820072006Net assets.on-urrent a&&et&"002499)0955525"5'"'"'4"54(5(5)22'""900250#)25(0#)4)90#''))0#'9(50#5254Tan+i6le 78ed a&&et&9neto$ aumulated dep#9('959059520"552'0'942544)5'24"2495545")0#)""50#)42(0#'4)(0#'5'20#5""",po e8pen&e& 404)0) )0(205 9"05"0"2"''"20#00000#00200#00)50#0"200#0"5),n-e&tment(at o&t) 2(''052 4'()2( 4"452( "25500 "22"000#0"(20#00220#004'0#00")0#00")C*rrent assets:+%+,$,-&&./.-.+(&/--&-0%0&-0%-($0/&$-(&-0#5(0(0#'4'(0#)9490#('0)0#(005A: reei-a6le&))955'5(50904'(''5)5'52545(950)(4"(254(90#'2000#42500#'92(0#50990#'0)9Arued loan intere&t 5095'' 5095'' 5095'' 5095'' 5095''0#005"0#00520#005(0#0"0)0#0"0'Arued FD; intere&t1oan9 ad-ane& anddepo&it&"(9'""4'"")5'009"02"5"5290)))55"0')20000#""250#0(5"0#""020#""920#"4'2Ca&h < a&h e=ui-alent& 52()(0" '"0)()'()24(9)()(90")"")2420(0#044"0#02)50#05220#"0090#"'9"C*rrent ia1iities 23rovision:-(.%%(&&((%/+-($($+..$/,'(,%,+&0%'(.,-+0,-0#"9550#0("20#"'00-0#24((-0#2255Arued e8pen&e& 4"005"0 25292(5")5)(9(-"259('5-205'4"50#0"9'0#0")40#0"52-0#0"))-0#02)41ia6ilitie& $or other7nane'095559 4'2504' 29992)5-29''20-2(9)550#025(0#022"0#0424-0#04-0#045 " 5( 59Ban0 loan"5)"'2)'0 0 0 00#"")5Propo&ed di-idend 0 0'0925(9-"0)((0(5"0)((0(50#0''"-0#"'040#"4)9Pro-i&ion $or inome ta8 555)244 5095000'"9540'-4205)2524"")"20#04)90#04250#0'54-0#0'220#029)Net c*rrent asset:0+$,$&.%0&/$//.+0(-0+(%$-,$&%&&$-&.,-0,%0#4("50#4)450#55490#50250#'("(Non'c*rrent ia1iities:4eferred ta5 ia1iities +(((( &/%(( 0(%,% '/+&-$ %0#000)0#000'0#000)-0#000(Net assets:(0+/-(0(+(00$(-$,-+$.$$-/%.&%,+&0$..+.-&%,"#0000"#0000"#0000"#0000"#00006inanced 1yS!are!oder7s e8*ity:"59'4"5"9"552"425492(224'0()059)52((9(4)05"#0000"#0000"#0000"#0000"#0000*hare apital900'44425"55(5(55"55(5(5(""50500(""505000#5)'50#52('0#55250#94550#9"29;etained earnin+&-a& perpro7t and lo&& a:"(5'')0'")529505)5)'()5909"52"(94"050#"""90#"0)50#0('00#0""90#0240>eneral re&er-e 2000000 20000002000000200000020000000#0"250#0"290#02")0#02)40#025)Di-idend e=ualization$und"000000 "000000"000000"00000020000000#00)40#00)'0#0"050#0"4"0#025),n?ation and urren%?utuation $und"000000 "000000"000000"000000"0000000#00)40#00)'0#0"050#0"4"0#0"25Capital re&er-e'(5'45545252)2040 0 00#29520#4'04"ota e8*ity andia1iities(0+/-(0(+(00$(-$,-+$.$$-/%.&%,+&0$..+.-&%,"#0000"#0000"#0000"#0000"#0000,n$ormation *er-ie& .et/or0 1,2,T3D,nome *tatementA& o$ (200)-20"0)Income Statement(tk.%%%) Common Si)e Statement(tk.%%%)$%(% $%%+ $%%, $%%. $%%& $%(% $%%+ $%%, $%%. $%%&;e-enue $romoperation4992'9'5425499)54"594(2'4955(5"54955)529" " " " "Co&t o$ +ood& &old 0 "45590 42'(2044)5)5)52"55' 00#00'2290#0"02(50#05'4(90#020((9ross :ro;t-++$/+/,-$.%(%.0-($&+%%/-&0$(,$+-,.-0$/0(%.++0..(%.+,+.$$%.+(0&$(%.+.+$-e8pen&e& $oroperation)"554"450')5")5"5(2555(5245"('4)4490#"5'2'(0#"54)(0#")424(0#"''2"50#"5(99"Admini&trati-e38pen&e&'0"002"4559'(9'""'4294('2"(9'0'59)50#"00'490#""5'4(0#"4022)0#0945"50#"02252mar0etin+ e8p# 952250 '24500 4)0900 459))0 9'(0)90#02')020#0"259)0#0""'240#009()90#0249'2Amortization o$de$erred e8p#492"5) 492"55 492"55 492"55 9400540#0095240#0""9'20#0"2'"40#0095420#0245"2Depreiation"((4949""5255(22")9"5"2""5")525("')5"2050#'''4"50#55599"0#5454950#'55'"20#4(""'2Total adminatio:Thereei-a6le& turno-er ratio& mea&ure& theeFeti-ene&& o$ the7rmB& reditpoliie& and indiate& the le-el o$ in-e&tment needed in reei-a6le& to maintain the7rm& &ale& le-el# ;eei-a6le& turno-er ratio mea&ure& ho/ man% time& reei-a6le&turn o-er into a&h in a %ear# Di+her the reei-a6le& turno-er ratio indiate& thatreei-a6le& are olleted =ui0l% $rom the u&tomer# *o9 hi+her the ratio i& 6etter##naysis:From the anal%&i& o$ 7-e %ear reei-a6le turno-er ratio /e &ee that the ;eei-a6leturno-erratioi&?utuatin+#Do/e-erthi&ratioi&derea&in+a&the%earpa&&e&/hih i& not +ood# ,t indiate& 7rm i& not eCient in mana+in+ it& reei-a6le##verage No. of 4ays >eceiva1es =*tstanding@A-era+eno# o$ da%B&reei-a6le&out&tandin+mea&ure&thea-era+eno# o$ da%&re=uired to on-ert reei-a6le& into a&h# 1o/er the ratio indiate& that it ta0e& le&&no# o$ da%& to on-ert reei-a6le& into a&h##naysis:A& /e an &ee that in thi& a&e a& the time pa&&e& the num6er o$ da%& inrea&e& $orthi& ratio /hih i& not at all 6ene7ial $or the ompan%# ,t &ho/& that the ompan%ta0e& lon+er peroid to ollet it& reei-a6le:aya1e "*rnover >atio:Pa%a6le turno-er ratio mea&ure& ho/ man% time& the &upplier& are paid in a %ear#1o/er the ratio i& 6etter 6eau&e then the ompan% pa% it& reditor le&& $re=uentl%9and ha-in+ more li=uidit% in hand a& arual#verage No. of 4ays :aya1e =*tstanding:A-era+eno# o$ da%&pa%a6leout&tandin+mea&ure&thetimeneededtopa%the&upplier Di+her the ratio i& 6etter 6eau&e hi+her the a-era+e no# o$ da%E& pa%a6leout&tandin+ indiate& that the ompan% an dela% it& pa%ment o$ pa%a6le& and ha&more li=uidit% in hand##naysis:A& there i& no e8i&tene o$ aount& pa%a6le in the annual report& o$ the ompan%thatE&/h%pa%a6leturno-erratioanda-era+eno# o$ da%&pa%a6leout&tandin+9the&e t/o ratio& are not a-aila6le#1on+ term Ati-it% ;atio&Year 20"0 2009 2005 200( 200)Fi8ed A&&et Turno-er 0#50 0#'5 "#02 "#0) 0#94;atioTotal A&&et Turno-er;atio 0#25) 0#254 0#490 0#'"' 0#45("a1e:The 1on+ Term Ati-it% ;atio& o$ ,*.##naysis:The&e ratio& mea&ure the eCien% o$ lon+ term apital in-e&tment in +eneratin+&ale The&e ratio& indiate the le-el o$ utilization o$ 78ed a&&et& to +enerate ertainle-el o$ &ale Trend o$ thi& ratio& indiate& that the ho/ eCient the 7rm in utilizin+it& 78ed a&&et6i5ed #sset "*rnover >atio:Thi&ratiomea&ure& u&in+the78eda&&et ho/muh&ale&the7rm+enerateDi+her the ratio i& 6etter $or the 7rm9 6eau&e hi+her the ratio indiate& that the7rm i& eCient to utilize the 78ed a&&et& in a&e o$ +eneratin+ &ale#naysis:From the a6o-e +raph/ean &ee that ,*. ha& ?utuatin+ trendinthi&ratio#,n200) the ratio /a& #94 and in 20"0 it /a& 0#50#*o /e an &a% that the ratio $or ,*./a& -er% ?utuatin+ o-er the la&t 7-e %ear"ota #ssets "*rnover >atio:Thi& ratio mea&ure& 6% utilizin+ it& total a&&et& ho/ muh &ale& the 7rm +enerateDi+her the ratio i& 6etter $or the 7rm9 6eau&e hi+her the ratio indiate& that the7rm i& eCient to utilize the a&&et& in a&e o$ +enerate &ale#naysis:From the a6o-e +raph /e an &ee that the ratio i& derea&in+ a& the time pa&&e&thi& ratio derea&e& /hih i& not +ood $or the ompan%#1i=uidit% Anal%&inaysis:1i=uidit% mean& the a6ilit% o$ the 7rm to u&e it& Current A&&et& to pa% it& *hort Termo6li+ation *hort lender& and reditor& are more onern a6out the li=uidit%anal%&i& o$ a 7rm9 6eau&e the% /ant to 0no/ that /hether a 7rm ha& a6ilit% to pa%it& &hort term o6li+ation in-timeor not#=3erating and Cas! Cyce:Ca&h%leapture& theinterrelation&hip6et/een&ale&9 olletion& andtraderedit# Ca&h %le i& the appropriate mea&ure& to identi$% the time period9 /hih i&tied up /ith the operation o$ a ompan%# *horter the a&h %le o$ a 7rm i&9 moreeCient it i& in mana+in+ it& operation& and a&h# 1on+er the %le i&9 le&& eCientand inrea&in+ 7nanial o&t i& indiated# ,$ the a&h %le o$ a 7rm i& ne+ati-e9 itindiate& the 7rm i& olletin+ a&h e-en 6e$ore it ha& &old it& produt The a&h%le an 6e alulated a& Ca&h C%le G .o# o$ da%& in-entor% in &to0 H .o# o$ da%reei-a6le& remain out&tandin+ - .o# o$ da%& pa%a6le out&tandin+"a1e: Yearl% Iperatin+ and Ca&h C%le o$ ,*.Year 20"0 2009 2005 200( 200)Iperatin+ C%le ''0 4(5 4(' 425 2("Ca&h C%le ''0 4(5 4(' 425 2("From the a6o-e ta6le it i& identi7a6le that ,*. &ell& it& produt on a&h#"a1e: Year /i&e Current9 Jui0 and Ca&h ;atio o$,*.#Year 20"0 2009 2005 200( 200)Current ;atio 4#52 ""#44 (#44 4#(9 4#52Jui0 ;atio 2#50 9#2' )#0( 4#"2 2#(9Ca&h ;atio 0#20 0#)9 0#5( 0#52 0#(5C*rrent >atio:Current ratio indiate& the 7rmB& a6ilit% to pa% it& &hort term o6li+ation /ith it& &hortterm a&&et Do/e-er it ha& 6een ?utuatin+ o-er the %ear ,n the %ear 2009 theratio /a& hi+he&t and in the%ear 200) it /a& lo/e&t#?*ick >atio:*ine not all the element& o$ urrent a&&et o$ a 7rm annot 6e readil% on-erted intoa&h9 =ui0 ratio eliminate& tho&e omponent& /hih annot 6e on-erted into a&hi#e# prepaid e8pen&e& and in-entor%# Ke an ea&il% under&tand $rom the a6o-e ta6lethat Thi& ratio al&o ?utuate& $or the ompan%#Cas! >atio:Ca&hratioi& themo&t on&er-ati-emea&urin+tool o$ li=uidit%po&itiono$ theompan%#Thi& ratio al&o ?utuate& $or the ompan% 6ut the -alue& are nearer toeah other# But in the tear 20"0 the ratio deline1on+ term De6t and *ol-en% Anal%&i&The anal%&i& o$ 7rm apital &truture i& nee&&ar% to under&tand lon+ term ri&0 andreturn pro&pet# The $ollo/in+ ta6le &ho/& &ome important ratio& that &hade& &omeli+ht into the 7rmB& apital &truture#"a1e:1on+ term De6t and *ol-en% ;atio&Partiular& 20"0 2009 2005 200( 200)De6t to totalapital4"005"0 25292(5 ")5)(9(-"259('5-205'4"5De6t to e=uit% 4"005"0 25292(5 ")5)(9( -"259('5 -205'4"5Time& ,ntere&t3arned *(T,3)Ande7nedAnde7ned Ande7ned Ande7ned Ande7nedCapitale8penditureratio.otA-aila6le.otA-aila6le.otA-aila6le.otA-aila6le.otA-aila6leCFI to de6t '0955)0 4'25049 29992(4 -2"''2"0 -2(9)55'#naysis:A& there i& no intere&t e8pen&e $or the 7rm thatE& /h% T,3 ratio i& not a-aila6le andthere /a& no apital e8penditure mentioned $or that apital e8penditure ratio al&onot a-aila6le#Pro7ta6ilit% Anal%&i&Pro7ta6ilit% ;atio& 20"0 2009 2005200(200)>ro&& 2ar+in 0#50 0#'' 0#5" 0#') 0#5"Iperatin+ 2ar+in 0#2" 0#22 0#2( 0#25 0#402ar+in 6e$ore intere&t and ta8e&ta80#2" 0#22 0#2( 0#25 0#40Preta8 2ar+in 0#2" 0#22 0#2( 0#25 0#40Pro7t 2ar+in 0#"9 0#2" 0#2' 0#24 0#2(;eturn on A&&et (;IA): ;eturn 0#0) 0#0( 0#"2 0#"2 0#"2on Total Capital (;ITC);eturn on 3=uit% (;I3) 0#0) 0#05 0#"2 0#"" 0#"4#naysis:An% *hareholder& or 3=uit% ,n-e&tor mo&tl% onern /ith the pro7ta6ilit% anal%&i& o$the 7rm9 6eau&e o$ $ollo/in+ three rea&on&@1. To earn pro7t92. To &u&tain pro7t9 and3. To inrea&e pro7t#The $ollo/in+ ratio& mea&ure the&e $ator& o$ the 7rm@9ross Margin:Thi& ratio interpret& the relation&hip 6et/een *ale& and 2anu$aturin+ 38penditureo$ a 7rm# Di+her ;atio indiate& hi+her pro7ta6ilit% o$ the ompan%# Thi& ratio i& not-arie& in a +reater e8tent $oe ,*.#=3erating Margin:Thi& ratio i& derea&in+ $or the ompan%#:reta5 Margin:Al&o derea&e& a& the %ear pa&&eNet :ro;t Margin:For ,*.9 thi& ratio i& ?utuatin+ 6ut derea&in+#>et*rn on #sset or>et*rn on "ota Ca3ita:Thi&ratioillu&trate&theo-erallreturnearned6%the7rmtoall it&in-e&tor&(6oth &hareholder& and reditor&)# Di+her the ratio i& 6etter $or in-e&tor& o$ theompan%9 6eau&e it indiate& the 7rm i& earnin+ more return#But $or ,*. thi& ratio i& +oin+ do/n a& the %ear pa&&e>et*rn on E8*ity:;I3mean& theo-erall returnmadea-aila6letoall e=uit% holder& o$ theompan%# *ohi+her the ratio 6etter# But a+ain theratio deline& $or theompan% in the reent %earIperatin+9 Finanial 1e-era+e and Total 1e-era+eTa6le@ I139 F13 and T13 o$ ,*.Year 20"0 2009 2005 200( 200)I13 2#45 "#9( "#92 "#5' "#(2F13 "#05 "#09 "#09 "#"0 "#09T13 2#55 2#") 2#"" 2#04 "#90=3erating Leverage E@ect (=LE):Iperatin+ le-era+e mea&ure a ertain perenta+e han+e o$ operatin+ pro7t thatour&duetoaertainperenta+eo$ han+einthe&ale&re-enue# Di+herI13mean& the 7rm 6ear& hi+her ri&0L 6eau&e an% &mallperenta+e han+e in &ale&/ould re&ult in a lar+er de-iation in the 7rmB& 3B,T# A& /e an &ee $or the a6o-eta6le that the ri&0 i& inrea&in+ da% 6% da%#6inancia Leverage E@ect (6LE):Finanial le-era+e mea&ure& ertain Perenta+e han+e& in net inome that our&duetoaperenta+ehan+einoperatin+pro7t# Thi& ratioi& not that muh?utuatin+ $or the ompan%#"ota Leverage E@ect ("LE):The multipliation o$ I13 and F13 re&ult& the T13# Total le-era+e mea&urePerenta+e han+e in net inome that our& due to a perenta+e han+e in the7rmB& &ale& re-enue#From the +raph /e &ee that pre-iou&l%9 ,*. had &i+ni7antl% hi+her amount o$ T13pre&entthe78edle-era+ei&more$ortheompan%# Thi&ratioinrea&e&$ortheompan%#Ba&i 3P*Ba&i 3P* mea&ure earnin+ a-aila6le to ommon &hareholder# A& ,*.ha& nopre$erred &to0 and on-erti6le &euritie& &o no diluted 3P* /ill 6e pre&ent#"a1e:Ba&i 3P* o$ ,*.Year 20"0 2009 2005 200( 200)Ba&i 3P* "#05 "#"5 "#22 "#24 "#'2#naysis:Fromthe a6o-eta6le /e &eethat Ba&i3P* o$ ,*.ha-e?utuate&6utnotin a+reater e8tent#Anal%&i& o$ ,n-entor% o$ the ompan%,*. $ollo/& /ei+hted a-era+e method to e-aluate their in-entor%#