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Financial ratios and share performance analysis of aci limited .part 1

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jahid dewan
jahid dewan

This report analyzes the financial statements of ACI Limited from 2010-2014. It calculates key financial ratios to evaluate ACI's liquidity, activity, leverage, and profitability. The ratios indicate that ACI has strong liquidity and uses its assets productively. ACI has been profitable and offers good returns to shareholders, encouraging further investment. While ACI has good financial strength to expand, the report recommends it diversify to mitigate risk. Overall, ACI contributes significantly to Bangladesh's economy and will likely continue to do so if it expands further.

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Financial Statement Analysis Of ACI Limited Dewan MD. Jahid Green Business School Green University Mirpur
Letter of Transmittal 23th August 2016 Prof. M. M Khan Advisor Green Business School Subject: Submitting a Report on Financial Statement Analysis of ACI Ltd. Dear Sir, I would like to thank you for giving me the opportunity of doing this assignment on this subject to prepare the Report. This task has been given me the opportunity to explore one of the most important aspect of ACI Ltd which is known as ¡°Financial Statement Analysis of ACI Ltd¡±. The report contains a comprehensive study on financial aspects of ACI Ltd. It was an immense pleasure for me to have the opportunity to work on the above-mentioned subject. I have delivered my best to come out with a good one. Please feel free to contact me if you have any queries. Would you please kindly accept my report and oblige me thereby. Thank you. Sincerely, Dewan MD. Jahid
Declaration of Student This is to notify that this report ¡°Financial Statement Analysis of ACI Ltd¡± has been prepared as a part of my Report formalities. It is an obligatory part for our BBA Program to submit a report. Moreover, I was inspired and instructed by my supervisor Prof. M.M Khan, Advisor Green Business School, Green University. ............................... Dewan MD. Jahid ID: 130106039 Green Business School Green University
Acknowledgement I have incurred many debts of gratitude over the last three months while preparing for this report. First and foremost, I would like to pay my gratitude to the almighty Allah for giving me the ability to work hard. The report titled, as ¡°Financial Statement Analysis of ACI Ltd¡±- has been prepared to fulfill the requirements of BBA degree. I am very much fortunate that I have received almost and sincere guidance, supervision and co-operation from various persons while preparing this report. Many people have helped unconditionally in making this report. First of all, I would like to thank my academic Supervisor of this report, Prof. M.M Khan, Advisor of Green Business School, for giving me the opportunity to prepare this report & effortful supervision. He also provided me some important advice and guidance for preparing such type of new idea based report. Without his help this report could not have been a comprehensive one. I am also showing my gratuity to all those people who have at least minimum effort and contribution to complete report. I feel so much lucky to get their co-operation.
Executivesummery In this competitive market of Bangladesh to sustain and being profitable is necessary. To do so, a company must focus on its well management of financial assets and keep satisfying its stockholders to. ACI Limited was established in 1992. ACI Agribusiness is the largest integrator in Agriculture sector of Bangladesh, ACI Agribusiness deals with Crop Protection, Seed, Fertilizer, Agra machineries, and Animal Health products and equipments, Fish and Poultry medicine and feeds. It is also the most profitable business units of ACI Ltd after ACI Pharmaceuticals. The main strength of ACI Limited is use of the assets in productive way, well managed inventory and higher production capacity. In the bearish market ACI Limited is offering very good return to the security holder which encouraging more investment. ACI Ltd. has enough financial strength to expand its business in future. They have earned the faith of the investors with its transparent financial system and ensuring the safe return of their precious investment. In future ACI Limited will contribute more to the economy of Bangladesh by expanding their business.
Table of Contents Page No. 1.Conceptual framework for financial reporting¡­¡­¡­¡­¡­¡­¡­¡­¡­1 2.Qualitative characteristics of accounting information:¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..2 3.List of BAS& BFRS¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..4 4.BFRS with details¡­¡­¡­¡­...¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..¡­6 5.Annual report Analyze (ACI) 2010-2014¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.19 5.1. Financial Ratio Analysis¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­...¡­¡­¡­¡­¡­..22 5.1.1Methodology¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..¡­¡­¡­¡­¡­¡­..¡­¡­¡­..22 6. Analysis of the ratio¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­...25 6.1. Liquidity ratio¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­25 . 6.2. Activity Ratios¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­27 6.3. Leverage Ratios¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­.30 6.4. Profitability Ratios¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..¡­¡­¡­¡­¡­31 7.Result and Discussion¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­¡­33 8.Share Performance Analysis¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..¡­¡­¡­.38 9.Objectives of Share Performance Analysis:¡­¡­¡­¡­¡­¡­¡­¡­¡­...38 10.Methodology¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­...¡­¡­¡­¡­..38 11.Result and Discussion¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..¡­¡­.41 12.Summery¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­...¡­¡­43 13.Recommendations¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­44
. 14.Conclusion¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.45 15.Reference¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­45 16.Appendix¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..¡­¡­..46 16.1.Statement of Financial Position¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­.46 16.2. Statement of Profit and Loss¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­.49 16.3. Statement of Profit or Loss and other ¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­...50 16.4.Consolidated Statement of Financial Position¡­¡­¡­¡­¡­¡­¡­¡­52 16.5.Consolidated Statement of profit or Loss¡­¡­¡­¡­¡­¡­¡­¡­...¡­.55 16.6.Share Capital¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­...58 17. Calculation of the Ratios:¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..¡­59

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Financial ratios and share performance analysis of aci limited .part 1

  • 1. Financial Statement Analysis Of ACI Limited Dewan MD. Jahid Green Business School Green University Mirpur
  • 2. Letter of Transmittal 23th August 2016 Prof. M. M Khan Advisor Green Business School Subject: Submitting a Report on Financial Statement Analysis of ACI Ltd. Dear Sir, I would like to thank you for giving me the opportunity of doing this assignment on this subject to prepare the Report. This task has been given me the opportunity to explore one of the most important aspect of ACI Ltd which is known as ¡°Financial Statement Analysis of ACI Ltd¡±. The report contains a comprehensive study on financial aspects of ACI Ltd. It was an immense pleasure for me to have the opportunity to work on the above-mentioned subject. I have delivered my best to come out with a good one. Please feel free to contact me if you have any queries. Would you please kindly accept my report and oblige me thereby. Thank you. Sincerely, Dewan MD. Jahid
  • 3. Declaration of Student This is to notify that this report ¡°Financial Statement Analysis of ACI Ltd¡± has been prepared as a part of my Report formalities. It is an obligatory part for our BBA Program to submit a report. Moreover, I was inspired and instructed by my supervisor Prof. M.M Khan, Advisor Green Business School, Green University. ............................... Dewan MD. Jahid ID: 130106039 Green Business School Green University
  • 4. Acknowledgement I have incurred many debts of gratitude over the last three months while preparing for this report. First and foremost, I would like to pay my gratitude to the almighty Allah for giving me the ability to work hard. The report titled, as ¡°Financial Statement Analysis of ACI Ltd¡±- has been prepared to fulfill the requirements of BBA degree. I am very much fortunate that I have received almost and sincere guidance, supervision and co-operation from various persons while preparing this report. Many people have helped unconditionally in making this report. First of all, I would like to thank my academic Supervisor of this report, Prof. M.M Khan, Advisor of Green Business School, for giving me the opportunity to prepare this report & effortful supervision. He also provided me some important advice and guidance for preparing such type of new idea based report. Without his help this report could not have been a comprehensive one. I am also showing my gratuity to all those people who have at least minimum effort and contribution to complete report. I feel so much lucky to get their co-operation.
  • 5. Executivesummery In this competitive market of Bangladesh to sustain and being profitable is necessary. To do so, a company must focus on its well management of financial assets and keep satisfying its stockholders to. ACI Limited was established in 1992. ACI Agribusiness is the largest integrator in Agriculture sector of Bangladesh, ACI Agribusiness deals with Crop Protection, Seed, Fertilizer, Agra machineries, and Animal Health products and equipments, Fish and Poultry medicine and feeds. It is also the most profitable business units of ACI Ltd after ACI Pharmaceuticals. The main strength of ACI Limited is use of the assets in productive way, well managed inventory and higher production capacity. In the bearish market ACI Limited is offering very good return to the security holder which encouraging more investment. ACI Ltd. has enough financial strength to expand its business in future. They have earned the faith of the investors with its transparent financial system and ensuring the safe return of their precious investment. In future ACI Limited will contribute more to the economy of Bangladesh by expanding their business.
  • 6. Table of Contents Page No. 1.Conceptual framework for financial reporting¡­¡­¡­¡­¡­¡­¡­¡­¡­1 2.Qualitative characteristics of accounting information:¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..2 3.List of BAS& BFRS¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..4 4.BFRS with details¡­¡­¡­¡­...¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..¡­6 5.Annual report Analyze (ACI) 2010-2014¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.19 5.1. Financial Ratio Analysis¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­...¡­¡­¡­¡­¡­..22 5.1.1Methodology¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..¡­¡­¡­¡­¡­¡­..¡­¡­¡­..22 6. Analysis of the ratio¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­...25 6.1. Liquidity ratio¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­25 . 6.2. Activity Ratios¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­27 6.3. Leverage Ratios¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­.30 6.4. Profitability Ratios¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..¡­¡­¡­¡­¡­31 7.Result and Discussion¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­¡­¡­¡­¡­33 8.Share Performance Analysis¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..¡­¡­¡­.38 9.Objectives of Share Performance Analysis:¡­¡­¡­¡­¡­¡­¡­¡­¡­...38 10.Methodology¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­...¡­¡­¡­¡­..38 11.Result and Discussion¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..¡­¡­.41 12.Summery¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­...¡­¡­43 13.Recommendations¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­44
  • 7. . 14.Conclusion¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.45 15.Reference¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­45 16.Appendix¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..¡­¡­..46 16.1.Statement of Financial Position¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­¡­.46 16.2. Statement of Profit and Loss¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.¡­.49 16.3. Statement of Profit or Loss and other ¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­...50 16.4.Consolidated Statement of Financial Position¡­¡­¡­¡­¡­¡­¡­¡­52 16.5.Consolidated Statement of profit or Loss¡­¡­¡­¡­¡­¡­¡­¡­...¡­.55 16.6.Share Capital¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­...58 17. Calculation of the Ratios:¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..¡­59