fin 254 group project aci

8/6/2019 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

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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

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-0.01 -0.08

0 0

#DIV/0! #DIV/0!0.17 -0.03

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#DIV/0! #DIV/0!

0 0

#VALUE! #VALUE!

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#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

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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

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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

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-0.16 2.57#DIV/0! #DIV/0!

0.79 0.86

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0.19 -0.17

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-0.17 -0.12

#DIV/0! #DIV/0!

0.08 0.09

s.

its.


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fin 254 group project aci

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