internship final report ibn sina 1

The IBN SINA Pharmaceutical Industry Ltd.

Pioneer in public health with genuine love for humanity

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IBN SINA Pharmaceutical Industry Ltd. Financial Performance Evaluation

Md. Abdul Maleque

ID: 2012110001032

Submissions date: 05/05/2014



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Assignment On

Course Code: BUS 8100

Submitted to

Mr. Mr.Shahran Abu Sayeed

Lecturer

School of Business studies

Southeast university

Submitted By Md. Abdul Maleque

ID # 2012110001032

Program: MBA (Regular)

Major in Finance

Submission Date: 05-05-2014



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05th

May 2014

To

Mr.Shahran Abu Sayeed

Lecturer

School of Business studies

Southeast university

Banani, Dhaka

Subject: Submission of Internship Report on “Financial Performance Evaluation of IBN

SINA Pharmaceutical Industry Ltd.

Dear Sir,

With due respect, I would like to thank you for assisting me to prepare the internship report. This

task has given me the opportunity to explore the activities of finance sector. The report contains

working procedure of Finance Department which is based on its Financial Statement Analysis. It

was a great pleasure for me to have the opportunity to work on this Industry which remains a

very well position than other pharmaceutical industry in Bangladesh. I endeavor my best to come

out with a good one.

I would be very happy to provide you with any clarification regarding the report. Please contact

with me if you have any query. Therefore, I pray and hope that you would be kind

enough to accept my Internship Report and oblige thereby.

Thanking you.

Sincerely,

Md. Abdul Maleque



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I am deeply grateful to the almighty ALLAH for HIS kindness and blessings to me endeavor and

success. Without his blessing and endorsement this Assignment would not have been

accomplished.

In preparing this Internship report, I had to take assistance, co-operation and help from my

classmate without which it would really be difficult in preparing this Internship report. I want to

express my heartiest appreciation to the following persons for their valuable contribution in

completing my report. I am thankful to my honorable teacher Mr. Shahran Abu Sayeed,

Lecturer, School of Business Studies, Southeast University for his untiring and patient guidance

in carrying out my research. I would also like to thank my colleague who helped me

for collecting information and completing the

report. I also, thanks to my parents, and some friends who keep on this long process with me, alw

ays offer support. And finally I also express my sincere gratitude to all those who participated to

prepare the Internship report. Most of them were busy subscriber of Financial Performance

Evaluation of IBN SINA pharmaceutical industry ltd.



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The report titled as ‘Financial Performance Evaluation of IBN SINA Pharmaceutical Industry

Limited’ is discussed about the position of the company, IBN SINA Pharmaceutical Industry Ltd

at the specified period and also compared with the other firm in the same industry. For ease of

understanding, the report is segmented into five parts. In the first part contains background of the

report, objectives, scope, methodology and limitations of the report. Next part of the report

demonstrated the profile of the company where I have completed my intern. The Third part,

contains the details about my job responsibilities in IBN SINA Fifth Part, main part of the

Report, named „project‟ contains details about the financial performance of the firm. At the last

part, I have tried to find out the facts from internship from the organization and also give some

suggestions where the firm could have scope to improve.

IBN SINA is a renowned Pharmaceutical Industry in Bangladesh .The Organization is new form

of pharmaceutical industry, the functions of such Company are relatively new and challenging

compared with the other Organization .Proper drug supplying is one of the main concentration of

these firms. And the function and procedure of organization closely resemble with the academic

aspects of finance. Therefore, in doing internship at such pharmaceuticals industry it would be

benefited for such student who came from finance background. This report is based on mainly on

the experience and academic knowledge.



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At the beginning of the report, there are some prefaces about the Organization, such as History,

Mission, Vision, Objective, Function, Role, Organ gram, Present Programs and future program

of the organization. Then I have discussed about the report, Origin of the study, Objective of the

study, Data collection, Tabulation of data, Analysis of data and Limitation.

Next to this part, my learning from the internship is articulated. During the internship period, I

was assigned at the various department of IBN SINA. I worked at the, Corporate Unit, Accounts

and Finance department, of IBN SINA Pharmaceutical Industry Ltd. Also here, I have shared

about the nature of my job, about the specific Job responsibilities, which I had to perform, and a

different aspect of this Job has been diagrammatically presented in this report for clear

understandings. Also, here, I



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have tried to expose my critically observed point at every department so I made some suggestion

on the basis of that.

After that, project part of the report has been expressed. Importantly in this section I have tried to

evaluate the performance of IBN SINA Industry ltd, simply it can be said that an systematic

evaluation of IBN SINA. Here, I have tried to analyze mainly from two points of view, which

are- Intra Company Analysis, and Intercompany analysis. Income Statement (audited) and

Balance Sheet (audited) have been analyzed in intercompany analysis over three period of time

FY2006, FY2007 FY2008 and FY2009. In intercompany Analysis, comparative analysis tools

have been used to evaluate performance of IBN SINA Industry in compare to four other same

period of time. Therefore, from the above point of view I have tried to analyze IBN SINA and

tried to bring out the position of IBN SINA industry.

At the final section of the report, I have discussed what I found throughout my internship period

in IBN SINA. It was my subjective judgment where I used my experience and intuition regarding

the facts. I have also tried to point out the areas where IBN SINA‟s has the opportunity to

improve furthermore.



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INTRODUCTION



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1. Introduction

From the ancient time, man has found the fundamental needs like foods, clothes, shelter etc.

from the nature. In the same way to meet up the necessity and survive in the earth he discovered

the life saving drugs from the nature. In the different areas of the world during the development

of civilization, a treatment system was also developed. Such as; Chinese civilization (Chinese

Medicine), Egyptian civilization ( Egyptian Medicine), Persian civilization (Persian Medicine),

Roman civilization (Roman Medicin), Indian civilization (Ayurvedic Medicine), Greek

civilization (Unani Medicine). . It was the work of the Greek philosopher-physician Hippocrates

{BuqratIn Arabic} (460-377 B.C.), who freed medicine from the realm of superstition and magic

and gave it the status of science. The theoretical framework of Unani Medicine is based on the

teachings of Hippocrates. By his method of careful study and comparison of symptoms, he laid

the foundation for clinical medicine. After Hippocrates a number of other Greek scholars

enriched the system considerably. Of them Galen {Jalinus in Arabic} (131-200 A.D.) stands out

as the one who established its foundation on which Arab physicians like Rhazes {Al-Razi in

Arabic} (850-932 A.D.) and Avicenna {IBN SINA in Arabic} (980-1037 A.D.) IBN SINA is

called the father of modern medicine.



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1.2 History of the Organization

The IBN SINA Pharmaceutical Industry Ltd. was founded in 1983 in a campus of about 15 acres

of land, about 56 km away from Dhaka city. The Industry was established by the Board of

Trustee as a private limited company. Then it was converted into a public limited company in

1989. IBN SINA TRUST owns 50% share of the industry and the public shares the rest 50%.

The commercial production was started in May 1986 with only few standard finished

pharmaceutical dosage forms. Since the beginning IBN SINA was committed to provide high

quality healthcare services in Bangladesh and within a very short period of time it fulfilled its

commitment. It has also occupied a very prestigious position in the pharmaceutical field of

Bangladesh for its quality and ethical standard. This is to mention here that wherever its

medicines have been tested, both in local and foreign laboratories, it passed all parameters of

quality standards. Now IBN SINA is expanding its business arena internationally across the

world and has already started exporting.

The company is always devoted to ensure the high quality of medicines by implementing state of

art technologies and modern machineries. The IBN SINA Pharmaceutical Industry Ltd. has

become a reputed pharmaceutical company in Bangladesh with sufficient expertise and

experiences.



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1.2.1 Heritage

1983 The IBN SINA Pharmaceutical Industry Ltd. was established by the Trustee Board

as a private limited company on December 22, 1983.

1986 The commercial production was started on May 1986.

1989 The IPI Ltd. was converted into a public limited company.

1990 The company was listed in Dhaka Stock Exchange (DSE) on July 17, 1990.

1995 It started production and marketing of ophthalmic products with Cloram Eye

Drop/Ointment and the product line has been enriched by the number 12 till now.

1996 It was listed in Chittagong Stock Exchange (CSE) on December 24, 1996

2003 In December 2003, the IPI Ltd. crossed the number of products to 100.

2004 In August 2004, the company achieved the ISO 9001:2000 Certificate for its quality

management system in its core business activities.

2004 In December 2004, the company started production of marketing of injects able

products (ampoule).

2008 Natural Medicine Division; Unani, Ayurvedic, Herbal

2011 Cephalosporin project



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1.3 Vision and Mission of the Organization

1.3.1 Vision

A public limited company working for the nation as a whole with pertinacious incitement and

firm determination to ensure the quality and ethical standing attributing the sustainable growth

and development to serve the mankind.

1.3.2 Mission

IBN SINA's vision is to become a premier specialty pharmaceutical company, with a balanced

focus in complementary therapeutic areas. Our primary responsibility lies towards people of

Bangladesh & ultimate responsibility towards humanity at large.

1.3.3 Quality of Objective of the Organization

The IBN SINA Pharmaceutical Industry Ltd. is committed to serve humanity by-

Providing the highest quality of products and services to its customers.

Maintaining the ethical standard in all its functions and follow WHO-GMP right from

procurement to reaching of finished goods and to the ultimate consumers.



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Marching onward for sustainable growth and continuous improvements key fact.

1.4 Functions of the Organization

The IBN SINA Pharmaceutical Industry Ltd. Is an enterprise of the IBN SINA trust.

The trust has been dedicated to serve the nation providing healthcare facilities, education

assistance to the distressed people since last three decades. Itspent 20% of total profit to assist

the distressed people of Bangladesh. Now a day‟s IBN SINA is a brand itself to the people of

this country and any organization with this brand name is a source of believe and trust to them.

The IBN SINA trust has the following organizations

IBN SINA HOSPITAL (100 beds)

IBN SINA DIAGNOSTIC LAB

IBN SINA IMAGING CENTRE

IBN SINA CONSULTATION CENTRE

IBN SINA MEDICAL CHECK-UP

IBN SINA MEDICAL COLLEGE

IBN SINA PHARMACEUTICAL INDUSTRY

The IBN SINA Pharmaceutical Industry Ltd. Was founded on 1983 in a campus of about 15

acres of land, about 56 km away from Dhaka city. The Industry was established by the Trustee



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Board as a Limited company. Then it was converted into a public limited company in 1989.Now

IBN SINA TRUST owns 50% share of the industry and the public shares the rest 50%.

The commercial production was started in MAY 1986 with only few standard finished

pharmaceutical dosage forms. Since the beginning IBN SINA was committed to provide high

quality healthcare services in Bangladesh and within a very short period of time it achieved the

target and fulfilled its commitment. It has also occupied a very prestigious position in the

pharmaceutical field of Bangladesh for its quality and ethical standard.

Now IBN SINA is expanding its business area internationally across the world and has already

started exporting.

The company is always devoted to ensure the high quality of medicines by implementing state of

art technologies and modern machineries. The IBN SINA Pharmaceutical Company in

Bangladesh with sufficient expertise and experiences.



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1.5 Role of the Organization in the Economy in the

Development in Bangladesh

As we study economic development in year 4 IB Economics, we examine different models for

economic growth. Growth in GDP is not the only determinant of economic development, which

in order to be measured effectively must account for human welfare determinants such as life

expectancy, literacy rates, child mortality rates, distribution of income, and so on. However, it

has been shown throughout history that economic growth, or the increase in real output and

income, correlates directly with improvements in development factors like those above.

The reason? Increases in national income usually mean at least some levels of improvement in

access to basic necessities for the average citizen in a developing country. Also, higher incomes

mean more savings, which means greater access to capital for investment by entrepreneurs. More

investment leads to greater productivity and rising incomes for those who join the emerging

industrial and service sectors that usually accompany economic growth. Furthermore, rising

incomes mean more tax revenue for governments, who‟s spending on public goods like

education, health care, and infrastructure result in real improvements in standard of living for not

just the emerging upper and middle classes, but the poor as well.



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1.6 Organ Gram of the Organization.



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1.7 Present Program of the organization:

The IPI is thriving constantly to expand its market horizon to the outside world in order to attain

the significant status of an exporter company as well as achieve the highest attainable qualities of

its products through strict following of the international manufacturing standards.

As a part of this process IPI has made export agreement with 3 (three) big companies of

Vietnam, Yemen and Cambodia. Company registration is in progress with Cambodia while that

in Vietnam and Yemen have already been completed. Product registration of a total of 10 (ten)

IPI products is also progressing in Vietnam. It may be mentioned that our factory and head office

were visited last year by a 2 (two) member delegation of the AI-Rajhi Company of Saudi Arabia.

They went through the production process in our factory and observed our management system.

They seemed eager to come into joint collaboration with IBN SINA.

We have a plan to increase export volume to Myanmar and Sri Lanka. So we are constantly

working on it. Our Honorable Director Prof. Dr. Sadrul Islam recently visited China and has

signed an MOU with a big Group of Companies for establishment of a Joint Venture Modern

Herbal Project in Bangladesh. A three member delegation of this group had visited our factory

few months back and expressed their willingness to go for a joint-venture project. We are also

trying to enter European and African Pharmaceutical markets.



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1.7.1 The Introduction of Natural Medicine in the

Subcontinent

In India, Unani system of medicine was introduced by the Arabs and soon took firm roots in the

soil. When Mongols ravaged Persian and Central Asian cities, scholars and physicians of Unani

medicine fled to India. The Delhi Sultans, the Khiljis, the Tughlaqs and the Mughal Emperors

provided state patronage to the scholars and even enrolled some as state employees and court

physicians. During 13th and 17th century A.D. Unani Medicine had its heyday in India. The

famous Unaniphysicians of that time were Abu Babakar Bin Ali Osman, SadruddinDamoski,

Akbar Arjani, Mohammad HashimAlvi Khan etc.

During the British rule Unani system of medicine suffered a setback due to withdrawal of State

patronage, as a result the development of Unani system of medicine was tremendously hampered

but continued to be practised as the masses reposed faith in the system. In short we can say, it

was the hard time for Unani and Ayurvedic medicine. The outstanding physicians and scholars

of Unani Medicine were Hakim Ajmal Khan (1868 - 1927), Hakim HabiburRahman (1881-1947

AD) etc.

In our country, Traditional Unani&Ayurvedic medicine is called herbal medicine. The medicines

originated from herbs are known as herbal medicine. Some animal parts and minerals are also

used in herbal medicine. The rich Unani&Ayurvedicsystem of Indian subcontinent has been the

part of our heritage. The herbal medicine is dependent on our natural resources. These natural



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resources are comparatively available and less precious. As the most of the active ingredients of

these medicines are originated from our natural plants, so it is safer and more adjustable to our

physical and mental health. Its side effect is rare. So the use of the traditional medicine had been

started since the ancient time.

and Herbal medicine from the local raw materials in order to achieve self-dependency. As the

natural medicine is a part of our culture and heritage, so the government of Bangladesh has

recognized the Unani and Ayurvedic system after independence. Bangladesh Government

controls the commercial production of Unani and Ayurvedic medicine under THE DRUG

(CONTROL) ORDINANCE, 1982. In Drug Policy 2005, Government urged the medicine

manufacturers to produce Unani, Ayurvedic

1.7.2 Company Product list.

Sl.

No.

Brand Name Generic Name Dosage Form Therapeutic Class

1 Hazmi Hazmina Tablet & Syrup

Natural digestive enzyme &

appetizer

2 Sinar Deenar Syrup Liver Tonic

3 Alkof Tulsi Syrup Natural Cough Syrup

4 Kolcin Suranjan Tablet Natural remedy for rheumatism

5 Herbazyl Pech Tablet Natural Anti dysenteric

6 Remisol Rehmin Tablet Restores Natural Rhythm of

Uterus

http://www.ibnsinapharma.com/hazmi.php

http://www.ibnsinapharma.com/sinar.php



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7 Azner Azaraqi Tablet Strengthen Nervous System

8 Shilaj Salajeet Capsule For healthy urinary system

9 Afrodic AmbarMomiyaee Tablet Aphrodisiac

10 Duratab Nishat Tablet Retentive Power Enhancer

11 Vinsina Misali Syrup Natural vitamin and Appetizer

12 Herbisol Atfal Syrup Baby Carminative & Digestive

13 Nawsin Niswan Syrup Utero Tonic

14 Chirol Musaffi Syrup Natural Blood Purifier

15 Confido Mumsik Capsule Nerve tonic

16 Santa Santara Syrup Diuretic & Anti Pyretic

17 Sinarose Fruit Sharbat Sharbat Refreshing Sharbat



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1.8 Future Program of the Organization

In the coming financial year top priority will be given to consolidation our position in the

pharmaceutical market by expanding of business activities to all important places and markets of

the country and abroad. Creation of a corporate image, enhancement of professional efficiency

and ensuring of finest possible service to the consumers.

Achievement of praise worthy growth in sales:

The overall growth of the pharma market of Bangladesh as per IMS (Information Medical

Statistics, Switzerland) data was 16% in the year 2009 which was highest in last few years. The

growth of IPI in the local market was 21.43% which was the outcome of timely sales and

marketing strategies taken by Ibn Sina Pharmaceutical industry.

Overall development and expansion:

In order to achieve the company`s desired goal., it is carrying on long term development policies

& programs. By the grace of Almighty Allah, several important development works could be

completed in the year 2009 through our own resources and taken investment from Banks,

A) Balancing, Modernization Replacement and Expansion (BMRE,) Project:

A good number of machineries‟ and equipments ire added at a total cost of 3 Chore 60 lac taka to

enhance the overall production capacity and efficiency. B) Production Bluing and other

construction Works: 7500sft area of the 3rd

floor of the building has been developed as

Production Area at a cost of taka 80 laces. C) Decoration of New Building: A building was



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constructed to meet the increasing need of the factory. The 2nd

3rd

were cast by this time. A

bachelor officer`s dormitory was constructed. The ware- house extension was decorated in

international standard as per current Good Manufacturing Practice (cGMP).

The IPI Natural Medicine Division:

The demand for natural medicine is growing everyday around the world. Keeping the demand in

view, the production and marketing of natural medicine was started in mid 2008.

A total of 46 products of 27 generic forms of this unit including tablets, capsules, syrups and

drops were marketing of herbal medicine was also made effectively. Four important herbal

products were marketed

Our products have drawn appreciation and trust from all levels of doctors, unban and Ayurbedic

doctors and consumers. Inshasllah, the natural medicine division will play an effective role in the

company‟s production and marketing of new medicines in the forthcoming days.

The use of information technology:

Keeping in mind the everinc-ereasing demand of the products of the company, a modern data

centre was developed with powerful server, high speed broadband internet connection and

corporate software made through our expert IT engineers and a cost of O corer take. As a result,

the Company`s information archive was strengthened and work of management Decision

Support System (MDSS) i. e. Prompt has become caser.

Human Resource development:



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With a vision to arrive at a top position in the pharmaceutical Industries and to maintain a farm

and dignified place in the competitive market, various steps were taken by the company to train

in and outside the country and to arrange workshops in relevant aspects.

In respect of planning, appointment, selector, training, incentive and promotes of manpower, the

procedure set by the service rules of the company were followed. the newly requited officer and

employee were bought under orientation and training programs immediately after appointment,

In 2009 a total of 989 persons

Up to year 2009, there were 210 licensed allopathic drug-manufacturers in the country; of them

only 173 actively produced the medicines while others were either closed down on their personal

problems or by the authority for drugs administration due to non-compliance of drug laws. The

manufacturers are now producing near about 5,600 brands of medicines in different forms.

For promoting these products, there are 1,495 wholesale and around 37,700 retail drug license

holders in different areas of Bangladesh. Anti-infective is the largest therapeutic class of locally

produced medicinal products, distantly followed by antacids and anti-ulcer ants. There are some

other significant therapeutic classes including non-steroidalanti-inflammatory drug (NSAID),

vitamins, central nervous system (CNS) and respiratory products. The local industry is

extraordinarily increasing the production of basic chemicals. At present, there are 13 medicinal

product manufacturing units, which also manufacture certain basic materials. These include

paracetamol, ampicillin trihydrate, amoxycillin trihydrate, diclofenacsodium, aluminium

hydroxide dried gel, dextrose monohydrate, hard gelatincapsule shell, chloroquine phosphate,



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propranolol hydrochloride, benzoylmetronidazole, sodium stibogluconate (stibatin) and pyrantel

pamoate. However,most of these are restricted to the last stage of synthesis.

Marketing is the process by which companies create value for customers and build strong

customer relationships in order to capture value from customer inreturn (Kotler, 2005).

Marketing is the backbone of all industries. Though pharmaceuticals produce life saving drugs,

they also need marketing. But their

Major promotional strategies include printed promotional materials, physical sample, and clinical

materials.

Special incentives are given to the doctors. For example, the doctors aregiven honeymoon

packages, the cost of which is borne by the pharmaceuticals.The field level executives are

playing the imperative role for marketingdivision. Basically, they have taken the responsibility to

market the products of their companies. So, the success of a pharmaceutical industry intensively

dependson the efficiency and effectiveness of the medical representatives. If anorganization

wants efficient employees in this section, he should to satisfy theserepresentative.The researcher

conducted a small survey over the field level executives, whoare playing the prime role for

marketing of the products of pharmaceuticalcompanies. Here, the study finds that, only 32%

employees are in satisfactoryand extremely satisfactory level. So, how it is possible to expect,

the executiveswill devote maximum effort for marketing their products. Most of theinterviewees

think that the sector should increase the benefits to the marketingexecutives with relevant effort.



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Human resources are people recruited in the organization and treated as the prime mover and an

important element for success of any organization (DeCenzo& Robbins, 2005). The sector

consistently creates job opportunities, especially for highly qualified people. Pharmaceutical

companies are either directly or indirectly contributing largely towards raising the standard of

healthcare and standard of living by enabling local healthcare personnel to gain access to

newer products and also to latest drug information. Like other industries, pharmaceutical

industry also believes that the human resources are most valuable asset for the organization.

Pharmaceutical industry ismaking considerable investments in attracting and developing

competent professional human resources. Pharmaceuticals not only foster entrepreneurship, but

also consciously encourage entrepreneurship in their organizational environment. This leads to

innovation and creativity transformed into new

Products, services and new ways of doing things. To get most effort strom humanresources,

pharmaceutical industries implement programs like decentralization, job enrichment and job

rotation. The extent of empowerment enjoyed by peopleat various levels of the organization

enables each employee from the very bottomto the top, to contribute to the overall momentum of

the companies.Training refers to instruction provided for a current job and has a rather narrow

focus and should provide skills that will benefit the organization rather quickly. Development, on

the other hand, has a broader scope and may not be

focused on either the present or future job but more on the organization„s general

Long-term needs (Anthony et al, 2003). Pharmaceutical industries are continuously striving to

explore the necessary competences of the employees, especially the marketing executives to face



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the challenges of the competitive environment. They arrange different types of learning

programs which are enforcing as a motivation too to upgrade necessary knowledge and skills of

their employees. By interviewing the employees of different pharmaceuticals the researcher

comes to know that they participated in various training programs that include: Pharmaceutical

marketing situation beyond 2005, Company formation, regulatory compliance and company

meeting, Industrial control andmechatronics, Continuous improvement and changing behavior,

Presentation skills, General guidelines of Standard Operating Procedure (SOP), Sanitation,

hygiene and environment control, Maintenance of equipments, calibration and validation,

Industrial automation, etc

Research Methodology



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2.1 Origin of the Report

The report title “Financial Performance Evaluation” has been prepared as a practical fulfillment

of MBA Degree in Southeast University. Student are required to undertake and internship

program. For this purpose each of these is attached with or organization. During the internship a

student has to prepare a report on the organization where he is assigned. He has also to undertake

and were of investigation on the organization for detailed study.

The basic purpose of this attachment is to expose the student to the real business world.

This exposure acquaints his with the practices of modern business world. This exposure is very

helpful is seeing for oneself how things move and to find the gap as well as the similarities

between theoretical and practical knowledge.

2.2 Objective of the Report



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2.2.1 The primary objective of the report is:

Financial performance evaluation of IBN SINA Pharmaceutical Industries Ltd. for four years

financial statement. To fulfill the partial requirement of the internship program as a full credit

course of the MBA program. To know about the Pharmaceutical sector of Bangladesh. To be

accustom with the management policy or process of IBN SIAN PHARMACEUTICAL in

Bangladesh. To get an overall idea about the management policy of IBN SINA as well as other

Pharmaceuticals‟.

2.2.2 The secondary objectives of the report are as follows:

To know the operation of Pharmaceutical Industry in Bangladesh.

To describe the customer service process of Pharmaceutical.

To analyze the barriers faced by the Pharmaceutical Bangladesh.

To suggest a supportive role in the progress of financial sector.

To know about the objectives and planning of IBN SINA.

To know how the DIPO are efficiently controlled.

To identify whether all process are perfectly and effectively practiced or not.

To find out the sectors in which such types of problems exist.

To make an opinion on the reports.



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2.3 Methodology:

The methodology of the study followed by the following through processes

This report is based mainly on observations that I experienced during the internship period. Data

required for this report were collected from the annual report of IBN SINA PHARMACEUTILS

INDUSTRY LTD. Apart from these; helpful information was collected from online resources.

Study design can be termed as a basic descriptive.

Sources and collection of data as an observation method.

2.4 Data Collection

The data collection method to study consists of both of primary and secondary sources.

2.4.1Primary Sources:

Practical experience and desk work.



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Personal observation and discussion with staff members

Interview of different officials including the Deputy Managing Director of the

Organization

Questioning the concerned persons.

Expert opinions

2.4.2 Secondary sources:

Annual report of IBN SINA

Relevant paper and publications

Relevant books and references

Product or service brochure.

Web site of IBN SINA

Circular published by IBN SINA

Circular published by DSE & CSE

Text book.

2.5 Tabulation of Data

Numerous tables were used to prepare and analysis the result for creating report of financial

performance of IBN SINA.



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Four year financial Statement Analysis such as 2006, 2007, 2008 and 2009. Horizontal

financial statement Analysis 2006, 2007, 2008 and 2009. Vertical financial Statement

Analysis 2006, 2007, 2008 and 2009. Forecast Financial Analysis 2010 and 2011.

2.6 Data Analysis Tools:

Several tools were used to prepare and analysis the results for creating report on financial

performance of INN SINA. These are:

Four year Net Income Expanse and total assets and liability Trend Analysis uche 2006,2007,

2008, 2009. Four Total sales, Net income, Current liability current assets four year Pie-Char

analysis. And four year 2006, 2007, 2008, and 2009 all Ratio Analysis.

2.7 Scope of the Study

IBN SINA PHARMACEUTICALS INDUSTRY LTD is one of the new age group of

Company in Bangladesh. The scope of the study is limited to the IBN SINA

PHARMACITICUALS only. The report covers the organizational structure; background,

functions and the performance of the Financial Sector have mainly worked based on the

Accounts & Finance so my report covers all the activities of all Accounts and finance department



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of the Organization. In preparing this report the employees of all departments had I have use

both primary and secondary data which was available to me.

2.8 Limitations of the Report

It is an uphill task to study the on the management so the report was completed under certain

constrains which were:

Difficulty in gaining accesses to financial sector.

Non‐availability of the most recent statistical data.

As I am student it is not possible for me to collect all the necessary information.

I had to complete this report within a very short span of time that was not sufficient

for investigation.

Lake of Experience.



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HORIZONTAL, VERTICAL,

FORECUST AND RATIO

ANALYSIS



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3. Performance Evaluation of IBN SINN Pharmaceutical

Industry Ltd

This Report I am going to analyze the overall financial performance IBN SINN Pharmaceutical

Industry limited. Therefore, to evaluate financial performance there have three different tools by

which we can easily evaluate company‟s financial statement over a period of time within the

company and also with other company. So these tools are as flows

Inter Company Analysis

Inter Company Analysis

Verticals Analysis

Horizontal analysis

Consolidated Statement of Comprehensive Income Consolidated Statement of Financial

Consolidated Statement of CashFlows

Consolidated Statement of Comprehensive Income

Consolidated Statement of Financial

Consolidated Statement of CashFlows



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3.1 Introduction of Analysis

Before starting performance evaluation by using these tools it is necessary to give an idea about IBN

SINA‟s financial performance at a glance over the period of FY2006, FY2007, and FY2008 and in

2009. Financial Position Thus these will help to evaluate Performance and find out the company

butter result. So these are shown below-

Figure 1

15%

19%

31%

35%

YEARLY NET PROFIT 2006 2007 2008 2009



37 | P a g e

Showing This Chart four Year profit performance is batter 2009.Every Year will increase 15% to

19%, 19% to 31% then 31% to 35%. Every year profit will increase and 2006 to 2008 will increase

48% .So we can say IBN SINS every Year will go batter Position every year.

Figure 2

Increasing trend of sales is showing through above the chart from 2006 to 2009, it can predict

that the future sales will be better for IBN SINA Pharmaceutical Industry ltd.

1, 577,427,115

2, 791,683,415

3, 1,052,308,721

4, 1,277,868,846

1, 2006 2, 2007 3, 2008 4, 20090

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

1 2 3 4

Yearly Total Sales



38 | P a g e

Figure 2

It chart indicates that cost of goods sold is increasing gradually.

Every year increase cost of goods sold 2006 is 16% but after three year cost of good sold

will increased (34%-16%) = 18% .

16%

22%

28%

34%

Yearly Cost of Good Sold

31-Dec-06

31-Dec-07

31-Dec-08

31-Dec-09

16%

22%

28%

34%

Yearly Operating Expance

31-Dec-06 31-Dec-07 31-Dec-08 31-Dec-09



39 | P a g e

Figure 4

Operating expanse will increase same percentage of cost of goods sold.

3.2 Consolidated Statement of Comprehensive Income

Income statement (US English) or profit and loss account (UK English) (also referred to

as a profit and loss statement (P&L), revenue statement, statement of financial

performance, earnings statement, operating statement, or statement of operations) is one

of the financial statements of a company and shows the

company's revenues and expenses during a particular period.

Necessity of income statement

The Income Statement is a direct result of the information that is recorded in the journals

and ledgers, and then transformed into concise, compiled revenue and expense figures. It

is usually prepared directly from the monthly "closing of the books" and provides an

accurate picture of the revenue and expense of the business for a specified period of time;

http://en.wikipedia.org/wiki/Financial_statement

http://en.wikipedia.org/wiki/Revenue

http://en.wikipedia.org/wiki/Expense



40 | P a g e

usually a month, quarter or year. The Income statement is used by management within

the company, but also by investors and creditors outside the company to evaluate

profitability, performance and aid in the assessment of risk for the investor or creditor.

The Income Statement is divided into three parts: Total revenues, total expenses, and net

income. The first section listed on the Income Statement is the Total Revenues reported

for the particular period of time reported. Other than revenues generated from the normal

operations of business, there are other sources of revenue that must also be included in

the "Total Revenue" area. Next, you have the section known as "Total Expenses". This

section includes all expenses incurred in the direct operation of the business. The most

common forms of expense include wages, salaries, rents, utilities, insurance and

supplies. Finally, the entry known as "Net Income" is a result of the subtraction of the

total expenses from the total revenues. The Net Income that is reported on the Income

Statement is then transferred to the Statement of Owner's Equity.

IBN SIN Pharmaceutical Industry Ltd

Four Year Consolidated Statement of Comprehensive Income

Particulars 31-Dec-06 31-Dec-07 31-Dec-08 31-Dec-09

Taka Taka Taka Taka

SALES 577,427,115 791,683,415 1,052,308,721 1,277,868,846

Less: Cost of Goods Sold 367,925,503 506,490,350 652,854,439 785,469,076

GROSS PROFIT 209,501,612 285,193,065 399,454,282 492,399,770



41 | P a g e

Less: Operating Expanse 183,793,223 253,115,026 346,729,133 436,859,745

OPERATING PROFIT 25,708,389 32,078,039 52,725,149 55,540,025

Less: Financial charge 1,168,103 2,267,457 4,750,860 5,098,143

24,540,286 29,810,582 47,974,289 50,441,882

Add: Non-Operating Income 5,003,070 6,333,571 8,907,577 13,736,889

29,543,356 36,144,153 56,881,866 64,178,771

Less: Workers`P.P.Fund& Welfare

Fund

1,406,822 1,854,483 2,708,660 3,056,132

NET PROFIT BEFORE TAX 28,136,534 34,289,670 54,173,206 61,122,639

Less:Provison For Income Tax 7,596,837 8,178,376 10,887,997 11,888,975

NET PROFIT AFTER TAX 20,539,697 26,111,294 43,285,209 49,233,664

Less: Proposed Dividend 18,900,000 0 0 0

Add: Non-Operating Income 1,639,697 26,111,294 43,285,209 49,233,664

Ordinary Share 900,000 900,000 900,000 900,000

EPS 22.82188556 29.01254889 48.09467667 54.70407111

3.3 Consolidated Statement of Financial Position

Balance sheet or statement of financial position is a summary of the financial balances of

a sole proprietorship, a business partnership, a corporation or other business organization.

Necessity of balance sheet

The balance sheet shows what the business has (assets) and what the business owes

against those assets (liabilities). The difference between the assets and the liabilities

http://en.wikipedia.org/wiki/Sole_proprietorship

http://en.wikipedia.org/wiki/Partnership

http://en.wikipedia.org/wiki/Corporation



42 | P a g e

shows the net worth of the business. The net worth of the business is important in that it

is a measurement of the time the business is expected to stay in financial power.

The balance sheet also provides the business with information on how best it is able to

pay its debts. Underwriters also use the information in the balance sheet (working capital)

to assess the business' ability to finance its operations.

The balance sheet assists the managers of businesses in making decisions regarding

purchasing of equipments for the business. Business managers depend on the balance

sheet to analyze whether buying certain equipment on debt is the right move for the

business at that time.

Business managers need the balance sheet so as to decide the best source of credit for the

business at that time.

The balance sheet shows the accounting equation in a physical representation. The

balance sheet also shows the owner's equity for example, it shows the value of the stock

and the number of shares outstanding.

The balance sheet is also used by the government agencies to make sure that the business

is complying with the set laws. It also provides information to any potential lenders of the

business on the credit worthiness of the business




43 | P a g e

Four Year Consolidated Statement of Financial Position


Taka Taka Taka Taka

ASSETS

Non Current Assets 208,440,785 248,082,620 293,523,518 379,036,527

Property Plant &Equipment 184,714,495 218,555,330 257913228 332,846,136

Investments 23,726,290 29,527,290 35610290 44,734,790

Deferred Tax Asset 1,455,601

Current Assets; 127,775,501 149,908,877 220,130,579 225,056,867

Stock & Stores 52,142,698 58,473,330 80035472 62,231,701

Sundry Debtors-Insecurd-good 1,436,458 177,188 597737 864,243

Adbances,Deposits& Prepayments 47,496,176 57,215,814 58397048 85,469,907

Cash & Bank balances 26,700,169 34,042,545 81100322 76,491,016

TOTAL ASSETS 336,216,286 397,991,497 513,654,097 604,093,394

SHARE HOLDER EQUITY AND LIABILITY

Share Holder Equity 161,611,789 166,091,361 188,676,570 215,410,234

Share Capital 90,000,000 90,000,000 90,000,000 90,000,000

Tax Holiday Reserve 71,611,789 4,392,110 4,392,110 4,392,110

Retain Earning 71,699,251 94,284,460 121018124

Non Current Liability 7,600,275 40,270,273 60,324,124 80,245,507

Long erm Finance-Not of current Maturity 7,600,275 12,936,061 27,826,722 39,937,517

Deferred liability 24,042,490 31,542,490 40,307,990

Deferred Tax liability 3,291,722 954,912



44 | P a g e

Current Liabilities &Provesions: 167,004,222 191,629,863 264,653,403 308,437,653

Short Term finance 61,260,632 102,884,973 169,591,739 186,608,862

Long Term Finance Current Maturity 9,438,336 6,892,620 19,776,124

Deposits 6,112,681 6,534,281 8,041,381 8,478,381

Creditors 15,055,704 14,840,930 14,232,048 19,209,329

Accrued Expenses 22,738,848 15,971,179 16,976,210 22,937,534

Other Finance 20,817,331 23,753,600 26,223,324 25,811,246

Income Tax Liability 22,119,026 18,206,564 22,696,081 25,616,177

Proposed Dvidend 18,900,000

TOTAL SHAREHOLDER EQUITY AND

LIABILITIES

336,216,286 397,991,497 513,654,097 604,093,394

3.4 Consolidated Statement of Cash Flow

One of the most important numbers that business owners and their stakeholders should know is

the Company‟s cash flow from operations, which is often overlooked in lieu of the income

statement and balance sheet numbers. Being able to internally generate sufficient cash is key to

maintaining a healthy business. A Statement of Cash Flows serves as a map that tells where cash

came from and where it went, and is a crucial planning tool for any business‟s long term success.

In addition to reporting cash flow from operations, the cash flow statement can highlight other

key factors to consider in a business's strategy.



45 | P a g e

A cash flow statement shows if a business is running out of money, even if it is profitable

at the same time. Fast growing businesses often show a net income but have their cash

tied up in accounts receivable or rely too heavily on bank financing.

A cash flow statement will tell if the owners are taking too much money out of the

business, which is not something you would see on the income statement. Distributions

should not exceed cash flow from operations.

A cash flow statement makes clear how much money was used to purchase property and

equipment, another thing you won‟t find on the income statement. It‟s important to know

the cash impact that fixed asset investments have, since net income can be significantly

affected by depreciation and amortization.

A cash flow statement can tell you how loan payments affect cash in the bank. While

interest payments are reported on the income statement, principal payments are not; both

are reflected on the cash flow statement. Knowing how much cash is needed every

month to make monthly loan payments can help with better planning.


Consolidated Statement of Comprehensive Income

As at 31 December 2009


Taka Taka Taka Taka

Cash Flow From Operating Activities

Collection from customer & other 576,180,78

3

792,942,68

5

1,051,888,17

2

1,277,602,34

1

Payment for cost,Expance & Other -540147137 -

759,680,58

6

-990,664,427 -1186331780



46 | P a g e

Income Tax paid -12,132,926 -12,930,838 -15,373,495 -17515888

Financial Charge -1,168,103 -2267457 -4,750,860 -5098143

Miscellaneous income 4,850 21,822 62,133 605562

Net Cash Provaid by Operating Activity 22,737,467 18,085,626 41,161,523 69,262,092

Cash flow form Investing Activities

Purchase Of the Fixed Assets -38,481,137 -49,834,248 -57,687,625 -96,977,569

Inveatment -5,424,000 -4,590,000

Divident Income 4426663 3,323,878

Profit from Bank Diposit & Investment 571557 776,871 2,762,444 4,006,827

Net Cash Used In Investing Activities -38,906,917 -50,323,499 -54,925,181 -92,970,742

Cash Flow From Financial Activities

Payment of Dividend -19,581,834 -15,444,615 -20021662 -22,710,459

Long term Finance Received From Bank 7,600,275 5,335,786 14890661 12,110,795

Short term Finance Received From Bank 34,223,705 51,062,677 64161050 29,900,627

Changes in Other finance 277,929 -2,373,599 1791386 -201,619

Net Cash Flow From Financial Activities 22520075 38580249 60821435 19099344

Increase/Decrease in Cash and Cash

Equivalants

6,350,625 6,342,376 47,057,777 -4,609,306

Cash And Cash Equivalent at the

Opening

20,349,544 27,700,169 34,042,545 81,100,322

Cash And Cash Equivalent at the

Closing

26,700,169 34,042,545 81,100,322 76,491,016

3.5 Horizontal Analysis

Horizontal Analysis (also known as trend analysis) is a financial statement analysis technique

that shows changes in the amounts of corresponding financial statement items over a period of

time. It is a useful tool to evaluate the trend situations.

The statements for two or more periods are used in horizontal analysis. The earliest period is

usually used as the base period and the items on the statements for all later periods are compared



47 | P a g e

with items on the statements of the base period. The changes are generally shown both in dollars

and percentage.

Horizontal analysis may be conducted for balance sheet, income statement, schedules of current

and fixed assets and statement of retained earnings.

Basically, I have used this analysis in intercompany analysis to analyze to income statement,

Balance sheet of the IBN SINA Pharmaceutical Industry ltd .Since this technique us to evaluate a

series of financial statement over three period of time 2006, 2007, 2008 and 2009. So it help to

determine thin crease or decrease that has taken place and the charge has been expressed an

amount and also a percentage . In This Horizontal analysis of income statement and Balance

sheet FY 2006 has been assumed as base year and compare to this year the change as an amount

or as a percentage of Final Year 2007, 2008, 2009 has shown bellows -AL Year 2007, 2008,

2009 has shown bellows –



48 | P a g e


Horizontal Consolidated Statement of Comprehensive Income

As at 31 December 2009 Year Growth Rate

Particulars 31-

Dec-

06

31-

Dec-

07

31-Dec-

08

31-Dec-09 2006-2007 2007-2008 2008-

2009

SALES 100% 137% 182.24% 221.30% 137.105% 132.920% 161.411%

Less: Cost of Good Sold 100% 138% 177.44% 213.49% 137.6611% 128.897% 155.080%

GROSS PROFIT 100% 136% 190.67% 235.03% 136.129% 140.064% 172.654%

Less: Operating Expance 100% 138% 188.65% 237.69% 137.717% 136.984% 172.593%

OPERATING PROFIT 100% 125% 205.09% 216.03% 124.776% 164.365% 173.140%

Less: Financial charf 100% 194% 406.72% 436.45% 194.114% 209.523% 224.839%

100% 121% 195.49% 205.55% 121.476% 160.930% 169.207%

Add: Non-Operatig Income 100% 127% 178.042% 274.57% 126.593% 140.640% 216.890%

100% 122% 192.53% 217.24% 122.342% 157.375% 177.563%

Less: Workers`P.P.Fund&

Welfare Fund

100% 132% 192.53% 217.24% 131.820% 146.0601% 164.796%

NET PROFIT BEFORE

TAX

100% 122% 192.53% 217.24% 121.869% 157.986% 178.253%

Less:Privious For Income

Tax

100% 108% 143.322% 156.410% 107.655% 133.131% 145.370%

NET PROFIT AFTER TAX 100% 127% 210.74% 239.700% 127.125% 165.771% 188.553%

Less: Proposed Dividend 100% 0 0 0 0 0 0

SURPLUS CARRIED

FORWARD

100% 1,59% 2639.82% 3002.61% 1592.45% 165.771% 188.553%

Ordinari Share 100% 100% 100 100 100 100 100

EPS 100% 127% 210.74% 239.700% 127.125% 165.771% 188.553%



49 | P a g e

Interpretation

This is horizontal analysis of Four year period income Statements of IBN SINA Pharmaceutical

Industry ltd. Mainly, we can notice the significant change that is amount increase or decrease and

the percent changes or decrease the percentage changes in year 2007,2008 and 2009 that has

been taken place compare to the base year 2006. Significantly, the following changes has taken

place and show below-

Firstly, we can notice the significant changes in Sales revenue that is Sales revenue increased by

137% in 2007, 182.24% in 2008 and by 221.30 % in 2009 which was very positive sign. But

here, in 2009 there was greater change compare to 2007 from the base Period. On the other hand,

we find greater increased in operating expenses which was 138% in 2007, 188.65% in

2008,237.69% in 2009 and so these changes put a significant impact on net profit of 2007,2008

and 2009 .

Moreover, it also noticeable that there were slight changes in Operating profit from financial

operation in 2007,2008 And 2009 i.e. increased every year respectively 125% ,205.09% and

216.03%. as We see every year operating expense is increase again every year operating

income is increase s. so it is positive situation for the company .

Overall, we can find that income from operation, and Net profit after tax was up substantially in

every year compare to base period. Income from operation increased by 125% in 2007,

205.09%in 2008 and by 216% in 2009 and Net profit After Tax increased by 127% in



50 | P a g e

2007,210.73% in 2008 and by 239.70% in 2009. So it can be said that IBN SINAs profit trend

appears favorable.

3.6 Ho



51 | P a g e

rizontal Consolidated Statement of Financial Position


Horizontal Consolidated Statement of Financial Position


Particular Growth Rate Base 2006 Growth Rate Year to Year

ASSETS 31-

Dec-06

31-Dec-

07

31-Dec-08 31-Dec-09 2006-

2007

2007-

2008

2008-

2009

Non Current Assets 100% 119.018% 140.818% 181.8437 119.018% 118.316% 129.133%

Property Plant &Equepment 100% 118.320% 139.628% 180.194% 118.320% 118.008% 129.053%

Investments 100% 124.449% 150.087% 188.545% 124.449% 120.601% 125.623%

Deferred Tax Asset 100% 0 0 0 0 0 0

Current Assets; 100% 117.322% 172.279% 176.134% 117.322% 146.842% 102.237%

Stock & Stores 100% 112.140% 153.493% 119.348% 112.140% 136.875% 77.755%



52 | P a g e

Sundry Debtors-Insecurd-good 100% 12.335% 41.611%% 60.164% 12.335% 337.346% 144.585%

Adbances,Deposits& Prepayments 100% 120.464% 122.951% 179.951% 120.464% 102.064% 146.359%

Cash & Bank balances 100% 127.499% 303.744% 286.481% 127.499% 238.23% 94.316%

TOTAL ASSETS 100% 118.373% 152.774% 179.674% 118.373% 129.061% 117.607%

SHARE HOLDER EQUITY AND

LIABILITY

Share Holder Equity 100% 102.771% 116.746% 133.288% 102.771% 113.598% 114.169%

Share Capital 100% 100% 100% 100% 100% 100% 100%

Tax Holiday Reserve 100% 6.133% 6.133% 6.133% 6.133% 100% 100%

Retain Earning 0% 0 0 0

Non Current Liability 100% 529.852% 793.709% 1055.823% 529.852% 149.798% 133.023%

Long erm Finance-Not of current

Maturity

100% 170.205% 366.127% 525.474% 170.205% 215.109% 143.522%

Deferred liability 0% 0 0 0 0 0 0

Deferred Tax liability 0% 0 0 0 0 0 0

Current Liabilities &Provesions: 100% 114.745% 158.471% 184.688% 114.745% 138.106% 116.544%



53 | P a g e

Interpretation

From the above balance sheet we can see that a number of significant changes have occurred in IBN SINA‟s financial structure from FY2007,

FY2008 FY 2009. Firstly, if we look at Assets section it can be easily interpreted attain Non Current assets also increased 119.01% in FY2007,

140.81% in FY2008 and by 181.84% in FY2009 compare to base period. Current Assets Growth rate are respectably FY 2007, 2008 and 2009

Short Term finance 100% 167.946% 276.836% 304.614% 167.946% 164.836% 110.034%

Long Term Finance Current

Maturity

0% 0 0 0 0 0 0

Deposits 100% 106.897% 131.552% 138.701% 106.897% 123.064% 105.434%

Creditors 100% 98.573% 94.529% 127.588% 98.5734% 95.897% 134.972%

Accrued Expenses 100% 70.237% 74.657% 100.873% 70.237% 106.292% 135.115%

Other Finance 100% 114.104% 125.968% 123.989% 114.104% 110.397% 98.428%

Income Tax Liability 100% 82.311% 102.608% 115.810% 82.3117% 124.658% 112.866%

Proposed Dvidend 100% 0 0 0 0 0 0

TOTAL SHAREHOLDER

EQUITY AND LIABILITIES

100% 118.373% 152.774% 179.674% 118.373% 129.061% 117.607%



54 | P a g e

117.32%, 146.84% and 102.235%. Also we can notice that there were slight increased of Current assets from FY2006 to FY2007 117.32%, FY2008

172.27% and FY2009 176.13% Investment increase by 124.44% in FY2007, 150.08% in 2008 and by 188.54 in2009. And Investment growth rate

respectively 2007, 2008 and 2009 124.44%, 120.60% and 125.62%.

On the other hand, in shareholder‟s Equity increased 102% in FY 2007, 116.74% in FY 2008 and 133.28% in FY2009 and Growth rate respectively

102%, 113% and114.16% also in this section we can notice that there was significant increased Current Liability in FY2007 which was 114% in

FY2008, Which was 158.47% where in FY2009 it was 184.68%. Increase position so it is positive sign for IBN SINA. Long term liability increased

170.20% in FY2007366.12% in FY 2008 and 552.47 in FY2008.Growth Rate 14.74% in FY 2007, FY 2008 in 138.10% and in FY2009 116.54%.

Therefore, this analysis suggests that the company its asset base during FY2007FY 2008 and FY2009 which had been financed more likely by using

additional long term debt in FY2007 FY2008 and in FY 2009 also retaining but in small amount.



55 | P a g e

3.7 Vertical financial statement analysis

Here, I have used vertical analysis in Intra Company comparisons over Four period of time (FY2006,FY2007AND FY2008 FY 2009). Mainly it is a

technique for evaluating financial statement data that express each item within a financial; statement as a percent of base amount. In case of vertical

analysis I have also analyzed both Income statement and Balance Sheet of IBN SINA Pharmaceutical Industry Limited over the Four year period of

time FY2006, FY2007, 2008 and FY2009. Therefore vertical analysis of Income statement and Balance Sheet are illustrated below –

IBN SINA Pharmaceutical Industry Ltd.

Vertical Statement of Comprehensive Income



56 | P a g e

For the year ended 31 December 2019

2006 2007 2008 2009 Average S.D

SALES 100% 100% 100% 100% 100% 0.00%

Less: Cost of Good Sold 63.72% 63.97% 62.04% 61.46% 63% 1.05%

GROSS PROFIT 36% 36% 38% 39% 37% 1.15%

Less: Operating Expance 32% 32% 33% 34% 33% 0.58%

OPERATING PROFIT 4% 4% 5% 4% 4% 0.58%

Less: Financial charf 0% 0% 0% 0% 0% 0.00%

4% 4% 5% 4% 4% 0.58%

Add: Non-Operatig Income 1% 1% 1% 1% 1% 0.00%

5% 5% 5% 5% 5% 0.00%

Less: Workers`P.P.Fund& Welfare Fund 0% 0% 0% 5% 1% 0.00%

NET PROFIT BEFORE TAX 5% 3% 4% 4% 4% 1.00%

Less:Privious For Income Tax 1% 1% 1% 1% 1% 0.00%



57 | P a g e

NET PROFIT AFTER TAX 4% 3% 4% 4% 4% 0.58%

Less: Proposed Dividend 3% 0% 0% 0% 1% 1.73%

SURPLUS CARRIED FORWARD 0% 0% 0% 0% 0% 0.00%

Interpretation

This is the vertical analysis of Income statement over the period of FY2006, FY2007, FY2008 and FY2009. Basically it shows the relative size of

each category in the Income statement. Here, Sales Revenue in the base amount and each item of income statement has been shown as a percent of

Sales revenue and compared it with four consecutive periods.

Mainly, we see that the major portions of Sales revenue less cost of goods sold and get gross profit which was 36%in FY2006, 36%in FY2007, 38%

in FY 2008 and 39%in FY52009 of Sales revenue. And there average rate37% and Standard deviation 1.05% on Noticeably, operating expenses as

a percentage Sales revenue No increase or decrease (32% vs.32%) from FY2006 to FY2007 ,Percentage of sales revenue increase 1% (33% vs.

32%) form FY2007 to FY2008 . And in FY2009 it came back to previous position which was 34% of Sales revenue. Likely, we observe that

operating profit from company financial activity as a percentage sales revenue no increase or decrease (4% vs. 4%) in FY2007, increased 1% (5%



58 | P a g e

vs.4%) in FY2008 and decline 1%(4% vs.5%) in 2009. which were very logical as Operational expenses increased in FY2007 and declined in

FY2008 as a percentage of operational revenue. And these average Percentage 4% and standard deviation 0.58%.

Therefore it is not surprising that Net Profit after Tax as a percentage of Sales Revenue decrease from 3% to 4% in FY2007, increase from 4% to 3%

in FY2008 and no increase or decrease 4% to 4% FY2009. Since now is in increasing position it appears to be profitable and more successful.

3.8 Vertical Consolidated Statement of Financial Position


Consolidated Statement of Financial Position


Particular 31-Dec-06 31-Dec-

07

31-Dec-

08

31-Dec-

09

Average S.D



59 | P a g e

Non Current Assets 61.99% 62.33% 57.14% 62.74% 61.05% 2.62%

Property Plant & Equipment 54.95% 54.91% 50.12% 55.10% 53.77% 2.43%

Investments 7.05% 7.41% 6.93% 7.41% 7.20% 0.25%

Deferred Tax Asset 0 0 0% 0.24% 0.06% 0.12%

Current Assets; 38.00% 37.66% 42.85% 37.25% 38.94% 2.62%

Stock & Stores 15.50% 14.69% 15.58% 10.30% 14.02% 2.51%

Sundry Debtors-Insecure-good 0.42% 0.04% 0.12% 0.14% 0.18% 0.17%

Advances, Deposits &

Prepayments

14.13% 14.37% 11.37% 14.14% 13.50% 1.43%

Cash & Bank balances 7.94% 8.55% 15.79% 12.66% 11.24% 3.69%

TOTAL ASSETS 100% 100% 100% 100% 100.00% 0.00%

SHARE HOLDER EQUITY AND

LIABILITY

Share Holder Equity 48.07% 41.73% 36.73% 35.66% 40.55% 5.67%

Share Capital 26.77% 22.61% 17.52% 14.90% 20.45% 5.29%

Tax Holiday Reserve 21.29% 1.10% 0.86% 0.73% 5.99% 10.20%



60 | P a g e

Retain Earning 0 18.01% 18.36% 20.03% 14.10% 9.44%

Non Current Liability 2.26% 10.11% 11.74% 13.28% 9.35% 4.90%

Long term Finance-Not of

current Maturity

2.26% 3.25% 5.41% 6.61% 4.38% 1.98%

Deferred liability 0.00% 6.04% 6.14% 6.67% 4.71% 3.15%

Deferred Tax liability 0.00% 0.82% 0.19% 0.00% 0.25% 0.39%

Current Liabilities & Provisions: 49.67% 48.15% 51.52% 51.05% 50.10% 1.52%

Short Term finance 18.22% 25.85% 33.02% 30.89% 27.00% 6.58%

Long Term Finance Current

Maturity

0.00% 2.37% 1.34% 3.27% 1.75% 1.41%

Deposits 1.81% 1.64% 1.57% 1.40% 1.61% 0.17%

Creditors 4.47% 3.72% 2.77% 3.18% 3.54% 0.73%

Accrued Expenses 6.76% 4.01% 3.30% 3.79% 4.47% 1.56%

Other Finance 6.19% 5.96% 5.11% 4.27% 5.38% 0.88%

Income Tax Liability 6.57% 4.57% 4.42% 4.24% 4.95% 1.09%

Proposed Dividend 5.62% 0.00% 0.00% 0.00% 1.41% 2.81%



61 | P a g e

Primarily it is shown the relative size of each category in balance from where we can notice the percentage change in the individual assets liability

and shareholder s equity item over four year consecutive year. Here, the base for application of fund is total assets and the base of the source of fund

in total liability and shareholder equity items. So from the balance sheet we see that investment is increasing from 7.05% of total assets in FY2006 to

7.41 % in FY 2007 and then increase to 6.93 % in Y2008 and decreased 7.4% in FY2009. Also we find relative size of Current assets item finance as

percentage total assets decreased from 38%in FY2006 to 37.66% in FY2007and then increased from 42.85 % in FY2008 to 37.66% in FY2007 and

decreased from37.25% in FY2009 to 42.85% in FY2008 .But we also can mark out that Non Current assets as percentage of total assets Increase

from 61.99% in FY2006 to 62.33% in FY2007, Decrease form 62.33% if FY2008 to 57.14% in FY2008 and then Increase 57.14% in FY 2008 to

62.74% in FY2009 .

TOTAL SHAREHOLDER

EQUITY AND LIABILITIES

100% 100% 100% 100% 100.00% 0.00%

Investments 7.05% 7.41% 6.93% 7.41% 7.20% 0.25%



62 | P a g e

On the other hand, term Current liability Decrease from 49.67% in FY 2006 to 48.15% in FY2007, Increase 48.15% in FY2007 to 51.52% in FY

2008 and Decrease from 51.52% in the FY2008 to 51.05% in FY2009 based on total liability and shareholder equity. Also retain earning increased

from 0% in FY 2006 to 18.015% in FY2007,Then increase 18.01% in FY2007 to 18.36% in FY2008 and increase 18.36% in FY 2007 to 20.03% in

FY2009 total liability and share holder equity therefore form the above analysis reinforce the earlier observation form horizontal analysis that INB

SINA is choosing to finance it growth through issuing long term debt and retaining income but more likely buy issuing long term debt.

3.9 Forecast Consolidated Statement of Comprehensive Income


Forecast Consolidated Statement of Comprehensive Income

2010,2011

Particulars 31-Dec-06 31-Dec-07 31-Dec-08 31-Dec-09 Growth Rate(Year to

year)

Growth

Rate

Average

Forecast 2010 Forecast

2011

Taka Taka Taka Taka 2006-

2007

2007-

2008

2008-

2009

SALES 577,427,115 791,683,415 1,052,308,721 1,277,868,846 37% 33% 21% 30%

1,661,229,499.80

2,159,598,349.74

Less: Cost of Good Sold 367,925,503 506,490,350 652,854,439 785,469,076 38% 29% 20% 29%

1,021,109,798.80

1,327,442,738.44

GROSS PROFIT 209,501,612 285,193,065 399,454,282 492,399,770 36% 40% 23% 33%

640,119,701.00

832,155,611.30

Less: Operating Expance 183,793,223 253,115,026 346,729,133 436,859,745 38% 37% 26% 34%

567,917,668.50

738,292,969.05



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OPERATING PROFIT 25,708,389 32,078,039 52,725,149 55,540,025 25% 64% 5% 31%

72,202,032.50

93,862,642.25

Less: Financial charf 1,168,103 2,267,457 4,750,860 5,098,143 94% 110% 7% 70%

6,627,585.90

8,615,861.67

24,540,286 29,810,582 47,974,289 50,441,882 21% 61% 5% 29%

65,574,446.60

85,246,780.58

Add: Non-Operatig Income 5,003,070 6,333,571 8,907,577 13,736,889 27% 41% 54% 40%

17,857,955.70

23,215,342.41

29,543,356 36,144,153 56,881,866 64,178,771 22% 57% 13% 31%

83,432,402.30

108,462,122.99

Less: Workers`P.P.Fund & Welfare

und

1,406,822 1,854,483 2,708,660 3,056,132 32% 46% 13% 30%

3,972,971.60

5,164,863.08

NET PROFIT BEFORE TAX 28,136,534 34,289,670 54,173,206 61,122,639 22% 58% 13% 31%

79,459,430.70

103,297,259.91

Less:Privious For Income Tax 7,596,837 8,178,376 10,887,997 11,888,975 8% 33% 9% 17%

15,455,667.50

20,092,367.75

NET PROFIT AFTER TAX 20,539,697 26,111,294 43,285,209 49,233,664 27% 66% 14% 36%

64,003,763.20

83,204,892.16

Less: Proposed Dividend 18,900,000 0 0 0

-

-

Add: Non-Operatig Income 1,639,697 26,111,294 43,285,209 49,233,664 ##### 66% 14% 524%

64,003,763.20

83,204,892.16

Ordinari Share 900,000 900,000 900,000 900,000 0% 0% 0% 0%

1,170,000.00

1,521,000.00

EPS

22.8218856 29.012549 48.09467667 54.70407111 27% 66% 14% 36%

71.12

92.45

The Forecasting financial statement is prepared based on 2006 to 2009. Those four years shows positive trend of EPS. It is calculated that the EPS of

2011 & 2012 will be 71.12 and 92.45.



64 | P a g e

-

500,000,000.00

1,000,000,000.00

1,500,000,000.00

2,000,000,000.00

2,500,000,000.00

SALE

S

Less

: C

ost

of …

GR

OSS

PR

OFI

T

Less

: …

OP

ERA

TIN

G …

Less

: Fi

nan

cial

…

NET

PR

OFI

T …

Less

:Pri

vio

us …

Ord

inar

i Sh

are

EPS

Forecast Income Statement

Forcast 2010 Forcast 2011



65 | P a g e

3.10 Forecast Consolidated Statement of Financial Position


Two Year Forecast Consolidated Statement of Financial Position 2010 And 2011

Particulars 31-Dec-06 31-Dec-07 31-Dec-08 31-Dec-09 2006-2007

2007-2008

2008-2009

Average Growth

Rate

Forecast 2010 Forecast 2011

Taka Taka Taka Taka

ASSETS

Non Current Assets 208,440,78

5

248,082,62

0

293,523,51

8

379,036,52

7

19% 41% 82% 47%

557,183,694.69

819,060,031.19

Property Plant & Equepment 184,714,495

218,555,330

257913228 332,846,136

18% 40% 80% 46% 489,283,819.92

719,247,215.28

Investments 23,726,290 29,527,290 35610290 44,734,790 24% 50% 89% 54%

65,760,141.30

96,667,407.71

Deferred Tax Asset 1,455,601 2,139,733.47

3,145,408.20

Current Assets; 127,775,50

1

149,908,87

7

220,130,57

9

225,056,86

7

17% 72% 76% 55%

330,833,594.49

486,325,383.90

Stock & Stores 52,142,698 58,473,330 80035472 62,231,701 12% 53% 19% 28% 91,480,600.47

134,476,482.69

Sundry Debtors-Insecurd-good 1,436,458 177,188 597737 864,243 -88% -58% -40% -62%

1,270,437.21

1,867,542.70

Adbances,Deposits & Prepayments 47,496,176 57,215,814 58397048 85,469,907 20% 23% 80% 41% 125,640,763.29

184,691,922.04

Cash & Bank balances 26,700,169 34,042,545 81100322 76,491,016 27% 204% 186% 139%

112,441,793.52

165,289,436.47

TOTAL ASSETS 336,216,28

6

397,991,49

7

513,654,09

7

604,093,39

4

18% 53% 80% 50% 888,017,289.18 1,305,385,415.09



66 | P a g e

SHARE HOLDER EQUITY AND LIABILITY -

-

Share Holder Equity 161,611,78

9

166,091,36

1

188,676,57

0

215,410,23

4

3% 17% 33% 18%

316,653,043.98

465,479,974.65

Share Capital 90,000,000 90,000,000 90,000,000 90,000,000 0% 0% 0% 0% 132,300,000.00

194,481,000.00

Tax Holiday Reserve 71,611,789 4,392,110 4,392,110 4,392,110 -94% -94% -94% -94%

6,456,401.70

9,490,910.50

Retain Earning 71,699,251 94,284,460 121018124 177,896,642.28

261,508,064.15

Non Current Liability 7,600,275 40,270,273 60,324,124 80,245,507 430% 694% 956% 693%

117,960,895.29

173,402,516.08

Long erm Finance-Not of current Maturity 7,600,275 12,936,061 27,826,722 39,937,517 70% 266% 425% 254% 58,708,149.99

86,300,980.49

Deferred liability 24,042,490 31,542,490 40,307,990

59,252,745.30

87,101,535.59

Deferred Tax liability 3,291,722 954,912

-

-

Current Liabilities & Provesions: 167,004,22

2

191,629,86

3

264,653,40

3

308,437,65

3

15% 58% 85% 53%

453,403,349.91

666,502,924.37

Short Term finance 61,260,632 102,884,97

3

169,591,73

9

186,608,86

2

68% 177% 205% 150%

274,315,027.14

403,243,089.90

Long Term Finance Current Maturity 9,438,336 6,892,620 19,776,124

29,070,902.28

42,734,226.35

Deposits 6,112,681 6,534,281 8,041,381 8,478,381 7% 32% 39% 26%

12,463,220.07

18,320,933.50

Creditors 15,055,704 14,840,930 14,232,048 19,209,329 -1% -5% 28% 7%

28,237,713.63

41,509,439.04

Accrued Expenses 22,738,848 15,971,179 16,976,210 22,937,534 -30% -25% 1% -18%

33,718,174.98

49,565,717.22

Other Finance 20,817,331 23,753,600 26,223,324 25,811,246 14% 26% 24% 21%

37,942,531.62

55,775,521.48

Income Tax Liability 22,119,026 18,206,564 22,696,081 25,616,177 -18% 3% 16% 0%

37,655,780.19

55,353,996.88

Proposed Dvidend 18,900,000 -

100%

-

100%

-

100%

-100%

-

-

TOTAL SHAREHOLDER EQUITY AND LIABILITIES 336,216,28

6

397,991,49

7

513,654,09

7

604,093,39

4

18% 53% 80% 50% 888,017,289.18

1,305,385,415.09



67 | P a g e

The Forecasting Consolidated Statement of Financial Position is prepared based on 2006 to 2009. Those four years shows positive trend of every

item. It is calculated that the Total asset and liabilities of 2011 & 2012, will be 888,017,289.18 & 1,305,385,415.09

-500,000,000.00

1,000,000,000.00 1,500,000,000.00 2,000,000,000.00 2,500,000,000.00

Forecast Balance sheet

Forecast 2010 Forecast 2011



68 | P a g e

3.11 Ratio Analysis

FINANCIAL RATIOS AALYSIS OF IBN SINA Pharmaceutical Ltd.

Ratio analysis is a study of the relationships between financial variables. It is very important in fundamental analysis which investigates the financial

health of any financial institution. This ratio analysis gives frank financial information in this current business world. By giving a glance anyone will

be able to know what the position that institution is now. Therefore managers, shareholders, creditors etc. all take interest in ratio analysis. For

example using liquidity ratios managers can use the information if the institution's liquidity is struggling and they may have to take out short term

finance. For this reason to evaluate the performance of UCBL the ratio analysis has been selected. Here in this report contains the most common

ratios and analyze to evaluate the performance of UCBL over the year 2006 2007 2008 and 2009.



69 | P a g e

Ratio Analysis

SL

No Particular Equation Year

2006 2007 2008 2009

1 Current Ratio Current Assete/Current Liability 0.765103418 0.782283485 0.83176935 0.729667292

2 Quick Ratio = Total Quick Assets/ Total Current

Liabilities

0.618159312 0.626720142 0.650497209 0.56612733

Quick Assets = Total Current Assets –

Inventory

3 Cash Ratio Cash/current Liabilities 0.765103418 0.782283485 0.83176935 0.729667292

4 Long-term Debt to

Equity Ratio =

Long-term Debt / Equity 0.0844475 0.143734011 0.3091858 0.443750189



70 | P a g e

3.10

5 Total Debt to Equity

Ratio =

Total Debt / Equity 1.940049967 2.576668178 3.610861411 4.318701778

6 Total Debt to Total

Asset Ratio =

Total Debt / Total Asset 0.519321949 0.582676107 0.632677767 0.643415677

7 Total Equity to Total

Asset Ratio =

Total Equity / Total Asset 0.267684832 0.226135484 0.17521519 0.148983586

8 Net Profit Margin = Net Profit after Taxation / Sales

Reveue

0.035570891 0.032981989 0.041133565 0.040096843

9 Return on Equity = Net Profit after Taxation / Equity 0.228217744 0.290125489 0.480946767 0.547040711

10 Return on Assets = Net Profit after Taxation / Total Assets 0.061090429 0.065607668 0.084269179 0.081500087

11 Assets Turnover = Sales Revenue / Total Assets 1.717427558 1.989196807 2.048671912 2.032581146

12 Fixed Asset Turnover = Net Sales Revenue/ Fixed Assets 2.77022136 3.191208699 3.585091676 3.239447271

13 Price Earnings Ratio = Stock Price per Share / Earnings per

Share (EPS)

4.378283713 3.447087211 2.083333333 1.818181818

14 Capital Adequacy Ratio

=

Capital Base (Tier I + Tier II) / Risk-

weighted Assets

15 Inventory Turnover Cost of goods sold/inventory 14.99271455 17.05737748 13.60842344 15.57176388

16 Day sales in inventory 365/Inventory turnover 24.34515769 21.39836563 26.82162277 23.43986223

17 Receiable turnover Sales / Accounts Receivable 401.9722552 4468.041939 1760.487842 1420.74491

18 Day sales in Receivable 365/Receivable Turnover 0.885633263 0.07967696 0.202216676 0.250572779

19 Capital intencity Total Assets/Sales 0.58226619 0.502715466 0.488121106 0.491985278

20 Profit Margin Net Incom/Sales 0.035571064 0.032981989 0.041133565 0.038527948

21 Equity Multiplyer Total Assets/Total Equity 3.735736511 4.422127744 5.707267744 6.712148822

22 Total debt Ratio Total Assets-Total equity/Total Assets 0.732315168 0.773864516 0.82478481 0.851016414



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Every Ratio is Discuss Below:-

LIQUIDITY RATIOS

3.10.1 Current Ratio

This ratio is calculated by dividing the total current assets of an institution by its total current

liabilities. It shows how any institution like UCBL meets its current liabilities through its current

assets

Particular Equation

Year

2006 2007 2008 2009

Current Ratio

Current Assets/Current

Liability 0.765103418 0.782283485 0.83176935 0.729667292

Table Current Ratio



72 | P a g e

Table Current Ratio

According to result the current ratio of IBN SINA was .7296 in 2009, .83 in 2008 .78 in 2007

and 2006 in .76 In 2009 the current ratio was .72 which mean IBN SINA had .72 taka of

currents assets against 1 taka of short term debt or liability. It means IBN SINA had the ability to

pay off its current liabilities with its current assets. In 2008 the current ratio was .83 which was a

Higher than 2009 which means in 2008 IBN SINA invested less in short term assets. On the

other hand in 2007 the current ratio was .78 which mean IBN SINA investment in current assets

was lower than 2008 but higher than 2009. In fact the higher the current ratio is better for the

institution because this higher ratio helps to prevent getting default.

3.10.2. Quick Ratio:

Quick ratio is most important measure of liquidity than the current ratio. Because inventories

0.660.68

0.70.720.740.760.78

0.80.820.84

2006 2007 2,008 2,009

Current Ratio

Current Ratio



73 | P a g e

which are the least liquid of the current assets from the ratio. It is essential for a company to

realize its ability to pay the short-term obligation, without knowing on the sales of inventory

because they are the assets on which losses are mostly in the event of liquidation.

Quick ratio = (Current assets - Inventory)/Current Liabilities

SL

No Particular Equation

Year

2007 2008 2009

2

Total Quick Assets/ Total

Current Liabilities 0.618159312 0.626720142 0.650497209 0.56612733

0.52

0.54

0.56

0.58

0.6

0.62

0.64

0.66

2006 2007 2008 2009

Quick Ratio

Series 1



74 | P a g e

Analysis:

The quick ratio has increase over the year 2006 than 2007 and 2008 but decrease 2009. This has

happened because inventory has decreased about 1.02 times in 2008 and we know that inventory

is deducted from current asset while calculating quick ratio.

3.10.3. Cash ratio:

Cash ratio is the most unadventurous of analyzing liquidity position. The use of the current or

quick ratio absolutely understand that the current asset will be changed into cash, but in reality it

does not happened in the current asset to pay the current liabilities. For that reasons Current cash

debt it‟s really vital to look how much cash has in hand or in bank to get together its financial

obligations.

Current cash debt coverage ratio = Cash / Current Liabilities

SL


Year

2006 2007 2008 2009

3 Cash Ratio Cash/current 0.765103418 0.782283485 0.83176935 0.729667292



75 | P a g e

Liabilities

Analysis:

The ratio has decreased over 2008. This way company is holding its cash, which is not good

from investor points of view. Current cash has increase about 1.35 times. The company must

invest that money to get a good return.

3.10.4. Total debt Ratio

The total debt ratio takes into account all debts of all maturities to all creditors. It can be define

in several ways, the easiest of whish in this

0.66

0.68

0.7

0.72

0.74

0.76

0.78

0.8

0.82

0.84

2006 2007 2008 2009

Cash Ratio

Series 1



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SL


Year

2006 2007 2008 2009

22 Total debt Ratio

Total Assets-Total

equity/Total Assets 0.732315168 0.773864516 0.82478481 0.851016414

Analysis:

3.10.5. LONG-TERM DEBT TO EQUITY RATIO

In the risk analysis this ratio is a way to determine a company's leverage. The ratio is calculated

by taking the company's long-term debt and dividing it by the total value of its preferred and

0.66

0.68

0.7

0.72

0.74

0.76

0.78

0.8

0.82

0.84

0.86

0.88

2006 2007 2008 2009

Total Debt Ratio

Series 1



77 | P a g e

common stock. The company who has higher ratio is thought to be more risky because it has

more liabilities and less equity.

SL


Year

2006 2007 2008 2009

4

Long-term Debt to

Equity Ratio = Long-term Debt / Equity 0.0844475 0.143734011 0.3091858 0.443750189

Analysis

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0.5

2006 2007 2008 2009

Long term to debt equity

Series 1



78 | P a g e

This ratio measures IBN SINA‟s long-term sources of fund. Here from this figures it is noticed

that most of the IBN SINA‟s long term sources of fund come through the long term liability like

fixed assets. In 2009 this leverage ratio was .4437 which means IBN SINA long term funds come

from the stockholders „equity. On the other hand in 2006,2007and 2008 the Long-term Debt to

Equity Ratio was respectively 0.08444, 0.1437 and 0.3091 which was less than 2009.

3.10.6. Inventory turnover:

The liquidity of the company‟s register can be considered by this ratio. Its ratio indicates how

many periods it is needed to twist inventory of sales on a standard. This event on the efficiency

of the company's inventory organization.

SL


Year

2006 2007 2008 2009

15 Inventory Turnover

Cost of goods

sold/inventory 14.99271455 17.05737748 13.60842344 15.57176388



79 | P a g e

Analysis:

Inventory turnover ratio is 14.99 times in 2006, 17.05 times in 2007, 13.60 times in 2008 and

15.57 times in 2009 in this situation in 2008 is better than others years because 2008 inventory

turnover is less.

3.10.7. Receivable turnover:

Receivable turnover ratio indicates the rate of receivable to turn into cash. It indicates the level

of outlay in receivables wanted to continue the company's sale stage. This also events of the

helpfulness of the company's credit strategy.

0

2

4

6

8

10

12

14

16

18

2006 2007 2008 2009

Inventory Turnover

Series 1



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Receivable turnover = Sales / Accounts Receivable

SL


Year

2006 2007 2008 2009

17

Receivable

turnover

Sales / Accounts

Receivable 401.9722552 4468.041939 1760.487842 1420.74491

The company has faced a great problem in collecting its receivable. Here we see that the sales

have decreased from previous years, on the other hand receivable by increased in quite high rate.

Sometimes it indicates that the company has failed to collect its debts efficiently.

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2006 2007 2008 2009

Receivable Turnover

Series 1



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3.10.8. Profit margin on sales:

Profit margin on sales ratio offered information as regards a company‟s success from the action

of core trade. Ratio gives you an idea about the success relation to sales on after the cost of

goods sold is removing. It‟s could be used as a pointer of the good organization of the

manufacture action and relationship between cost of manufacturing goods and selling price.

Profit margin on sales = Net Profit / Sales

SL


Year

2006 2007 2008 2009

20 Profit Margin Net Incom/Sales 0.035571064 0.032981989 0.041133565 0.038527948



82 | P a g e

Analysis:

In this case the ratio has increased, which is very good sign from on investor‟s point of view. It

means that management has able to handle the operating cost and other cost. Flowing the above

table every year 0.03557 in 2006, 0.03298 in 2007, 0.0411 and .03852 in 2009.As a result

company has generated more profit in 2008 during 2006 to 2009.

3.10.9. Return on Assets Ratio

ROA is a profitability ratio which shows how profitable an organization is related to its total

assets. ROA gives an idea that how efficient the management of an organization is to generate

profits using its assets.

0

0.005

0.01

0.015

0.02

0.025

0.03

0.035

0.04

0.045

2006 2007 2008 2009

Profit Margin Ratio

Series 1



83 | P a g e

Return on Assets = Net Profit after Taxation / Total Assets

SL


Year

2006 2007 2008 2009

10 Return on Assets =

Net Profit after Taxation /

Total Assets 0.061090429% 0.065607668% 0.084269179% 0.081500087%

Analysis

ROA is the most used profitability ratio. As IBN SINA was Pharmaceutical industry and its most

of the assets come from the debt which was the reasons for its low net profit as well as poor

ROA. As a result the IBN SINA had low ROA in the year of 2009 2008 2007 and 2006 which

were 0.061090429%, 0.065607668%, 0.084269179% and 0.081500087% respectively. In the

Year 2008 the net profit of the Organization had increased as a better growth rate rather than its

assets growth.

SL Particular Equation Year



84 | P a g e

3.10.10. Return on Assets

Return on equity measures a bank‟s profitability which calculates how much net profit that

Organization may generates with the money that shareholders have invested as equity.

Return on Equity = Net Profit after Taxation / Equity

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

2006 2007 2008 2009

Return On Equity

Series 1

No 2006 2007 2008 2009

9 Return on Equity =

Net Profit after

Taxation / Equity 0.228217744 0.290125489 0.480946767 0.547040711



85 | P a g e

ROE is very popular ratio toward the shareholders of any Organization. After doing the analysis

from IBN SINA‟s financial statements its shows those in years 2009, 2008, 2007 and 2006 the

return from 100 taka invested by the shareholders was respectively 0.228217744, 0.290125489,

0.480946767

and 0.547040711.The higher the percentage is the better for the company as well as for

shareholders.

3.10.11. Price earnings ratio:

Price earnings ratio shows how much an investor is willing to pay per taka of reported profit. It is

calculated by dividing the stock price per share by the earnings per share (EPS)

Price earnings ratio = Market price of stock / Earning per share

SL


Year

2006 2007 2008 2009

13

Price Earnings

Ratio =

Stock Price per Share / Earnings

per Share (EPS) 4.378283713 3.447087211 2.083333333 1.818181818



86 | P a g e

This ratio outcome shows the IBN SINA‟s higher growth prospects. According to the IBN

SINA‟s P/E ratio in year 2006 and investor wants to invest 4.37 times for 1 taka profit. In the

year 2009 the P/E ratio was lower which was 1.18 times that means it had a poor growth rate. On

the other hand the year 2007 and 2008 had a better P/E ratio than the year 2009 which was 3.44

and 2.08 times.

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

2006 2007 2008 2009

Price Earning ratio

Series 1



87 | P a g e

Conclusions and suggestion



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4.1 Result and Discussions

Overall, from the Intra and Intercom any analysis we can come out with some significant results

which are very important to evaluate the financial performances of IBN SINA Pharmaceutical

Industry Ltd. Mainly from the Intra Company comparisons we found the horizontal, vertical

forecast analysis of Income statement and Balance sheet of IBN SINA, basically from the

horizontal analysis of income statement we have noticed the changes which took place over the

period of time and it reveals that the IBN SINA ‟s profit trend was favorable and also find true

picture of Balance sheet which reveals that IBN SINA expanded its asset base those years which

had been financed through issuing long-term derby rather than retaining more income therefore

IBN SINA should retain more income therefore IBN SINA should retain more in amount.

Furthermore, from the Inter Company Analysis, where comparative ratio analysis tools have

been used, we have been able to evaluate the performance of IBN SINA with four of other

pharmaceuticals also with industry average. Here, basically to assess the firm‟s ability to meet its

short-term financial obligation I have calculated current ratio and cash ratio of four year IBN

SINA and their industry average. From the current Ratio and cash ration calculation we found

that IBN SINA appears to be reasonably liquid I , e, IBN SINA has ability to meet its short term

financial obligation but from the cash ratio we see that it is not in favorable situation if

immediate payments were demanded.



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After evaluating the liquidity position of IBN SINA it was essential to measure the operating

success of the company for a given period of time. So here I have calculated Net Profit Margin,

ROE and ROA from where I find out that all these three ratios were high compare to four Year

financial statement, and higher in comparison with industry average, this is a very positive sign

and we can come up with result that this company is using its resources effectively, operating

successfully and also is growing.

Last of all, to measure the long term solvency of the IBN SINA i.e. to evaluate the debt paying

ability of the company I have calculated mainly P/E ratio, Debt-to-Total assets ratio and interest

equity multiplier ratio. Therefore from the analysis of those ratios I have up with important views

that the IBN SINA ‟s earnings is less volatile than the other firm in the same industry also the

probability of default the debt obligation is less and company is able to pay its interest over the

period of time. But the IBN SINA‟s Total Assets are mostly financed by creditors so which IBN

SINA can reduce it by paying off debts or increasing the total Assets in an amount. Other way,

IBN SINA‟s overall financial performance is better from various aspects as IBN SINA is

growing and operating successfully with moderate degree of liquidity also having long term debt.

We can came up with conclusion that client‟s are also satisfied with their services and IBN SINA

also maintaining their operation efficiently and effectively.



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4.2 OVERALL FINDINGS

During my internship period I was being acquaintance with the culture of IBN SINA as well as

the general functions of the company. Throughout this phase I observe the following facts of

IBN SINA -

Pleasant Environment: the work environment of the company is very pleasant. All the

personnel‟s of IBN SINA‟s are very much cooperative and amiable. The relationship among all

the personnel‟s was very affectionate.

From the analysis we have seen IBN SINA financial performance is better in the year 2010 on an

average.

Current Ratio: From the current ratio Analysis we have seen IBN SINA has enough current

assets to pay their short term obligations in 2006, 2007, 2008 and 2009. The current ratio is in

increasing trend.

Cash Ratio: The ratio has decreased over 2008. This way company is holding its cash, which is

not good from investor points of view. Current cash has increase about 1.35 times. The company

must invest that money to get a good return.

Debt Ratio: Debt Ratio of IBN SINA was every increase in 2006, 2007, 2008 and 2009 was in

satisfactory range except 2009.

Earnings per Share: From the analysis we see that organization earnings per Share are better in

2009.



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Return on Average Equity (ROE): IBN SINA ROE every year will increased in preceding year

2006 to 2009, but on an average IBN SINA has better position in 2009. ROE of IBN SINA is

grater in 2009 at 54.70%.

Return on Total Assets: IBN SINA Return on Total Assets were lower in preceding year 2006,

2007, and was in higher 2008, 2019 an indication of profitability for a business.

Profit Margins Ratio: IBN SINA on Profit Margin Ratio every year will increased so IBN

SINA day by day will go better position. In this case the ratio has increased, which is very good

sign from on investor‟s point of view.

Accounts Receivable Turnover: The Company has faced a great problem in collecting its

receivable. Here we see that the sales have decreased from previous years, on the other hand

receivable by increased in quite high rate. Sometimes it indicates that the company has failed to

collect its debts efficiently.

Dedicated and Enthusiastic Employees: Most of the employees of the company are very much

dedicated and committed to the company. Very often I had seen that some personnel‟s were

doing their duty beyond the office time. .

Transport Based Lease: Accumulate the company leases from different sector, its main

concentration in the Production.

Operational performance: the operational performance of IBN SINA is quite sound. Over time

the from operational performance increases steamily Moreover it performance was always better

than the other fauns in the same industry.

Growth rate: though IBN SINA achieved above average growth rate and also recently its

growth rate plummets.



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4.3 Recommendation

Throughout my internship I have found out that IBN SINA have the opportunity to improve in

the followings sector-

Earnings per share represent the number of dollars earned during the period on behalf of each

outstanding share of common stock. So IBN SINA should emphasize on this because EPS is

closely watched by the investing public and is considered an important indicator of corporate

success.

Current Ratio: IBN SINA should increased current asset for smoothly operate their business.

IBN SINA should increase Return on Average Equity because the higher this return the better

off are the owners.

Return on Total Assets: IBN SINA should control the overall effectiveness of management in

generating profits with its available assets

Market Promotion: In today business, promotional activities pane of the most important tasks

for improvement of the business. IBNA SINA does not concentrate much about this. Hence the

firm could be benefited if it invests in the market promotional activities.

Increased Product line: IBN SINA should introduce new product line cope with market

demand.

Branch Proliferation: IBN SINA has many branches in the other places like Syllet, Jessore,

Bogra and also some other places as there are huge opportunities of business.



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Employee’s Incentives: The firm may increase the efficiency of its personnel‟s by increasing

incentives, training etc so that employee can feel comfort by remaining in IBN SINA.

Corporate Social Responsibility: IBN SINA should pay more concentration in Corporate

Social Responsibility.

Information System: IBN SINA could improve it information technology by employing the

high technology based information system and networks as I have observed that their IT

profession‟s not very much commended about IT infrastructure still now using weak

infrastructure system.

Growth Rate: the growth rate of IBN SINA recently plummets due to low retiming ratio. The

firm could improve its growth rate by reinvesting more from its examines.



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4.5 Calculation

All Pharmaceutical Industry play an important role in the economic development of the country.

A Maximize the wealth to provide the butter service and product is a major aspect of this

Pharmaceutical Industry. Being a Pharmaceutical Industry also plays an important role in

financing. Throughout my internships I have tried to show the Financial performance of IBN

SINA and as well as the overall functions of the firm. Here I have used theoretical knowledge

which I have achieved in my educational period and also I use what I have learnt throughout my

internship program regarding the facts. From this report, the most recent financial performance

of IBN SINA has been evaluated. I have also tried to compare IBN SINA performance with the

other firms of the same industry where I have used different tools and techniques which also I

have learnt during my MBA program. Finally I tried to make an interpretation from analytical

point of view and come up with a view that IBN SINA is growing and even more successful in

the industry.



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4.6 BIBLIOGRAP

1. Audited Annual Report of IBN SINA Pharmaceutical Industry .

a. Year Ended December 31, 2009

b. Year Ended December 31, 2008

c. Year Ended December 31, 2007

d. Year Ended December 31, 2006

2. International Financial Management-Jeff Madura.

3. Corporate Finance –Ross Westerfield Jaffe.

4. Business Statistics- S. P. Gupta & M. P. Gupta

5. IBN SINA Pharmaceutical Industry website.

6. IBN SINA Pharmaceutical Industry Prospectus.

7. Other Pharmaceutical Industry website.



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internship final report ibn sina 1

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