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Cash flows from operating activities

Net Income (loss) after taxes


Adjustments for:
Amortization of property, plant and equipment
Changes in:
Accounts receivable
Inventories
Prepaid expenses
Accounts payable
Corporate income taxes payable
Deferred corporate income taxes

Net cash from operating activities

2008

2009

256,195

73,916

81,387
337,582

89,903
163,819

443,060
-5,607
683,811 346,485
8,610
4,414
-75,220
3,158
110,466 -240,954
15,336
18,462
1,186,063 125,958
1,523,645

289,777

Cash flows from investing activities


(Increase) or decrease in property, plant and equipment
Proceeds from sale of (acquisition of) other assets

-177,982 -154,747
21,791
59,590

Net cash from investing activities

-156,191

-95,157

1,032,547
-11,933

427,567
421,730
-3,376
14,184
-143,207
716,898
101,754
209,794
311,548

Cash flows from financing activities


Proceeds from (repayment of) notes payable
Proceeds from (repayment of) long-term debt
Proceeds from (repayment of) other liabilities
Proceeds from issuing (repurchase of) share capital
Dividends paid
Net cash from (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Opening balance, cash and cash equivalents
Closing balance, cash and cash equivalents

-3,784
-54,593
-143,343

818,894
-128,196
337,990
209,794

2010
-1,415,678

from income statement

90,744
-1,324,934

from income statement

-738234
-293,439
-4,800
164,943
-565,303
NA
-1,436,833
-2,761,767

-97,171
37,378
-59,793

996,002
192,972
-13,648
6,007
-30,218
1,151,115
228,425
311,548
539,973

from
from
from
from
from

balance
balance
balance
balance
balance

sheet
sheet
sheet
sheet
sheet

2008
Profitability ratios
Net profit margin

2.29219734
Net Income (loss) after
taxes
Sales

Return on equity

256,195
11,176,830

Net Income
Shareholder's equity

11.3020009
256,195
2,266,811

Net Income+interest(1-tax rate)


Total asset

4.55095835
342,711
7,530,533

Accounts receivable
Average day's sales on credit

120.491412
3,689,622
30621.4521

cost of goods sold


inventory

2.81644058
7,629,270
2,708,834

sales
total assets

1.48420172
11,176,830
7,530,533

current asset
current liability

1.55009514
6,653,323
4,292,203

Current asset- Inventories


Current liabilities

0.91898939
3,944,489
4,292,203

Total Liabilities
Equity

2.32208243
5,263,722
2,266,811

Return on assets

Turnover ratios
Days receivables

Inventory turnover

Total asset turnover

Liquidity Ratios
Current ratio

Quick Ratio

Solvency ratios
Debt to equity ratio

Debt to capitalization ratio


Long term Liabilities
Contributed capitals(share capital)

1.95794185
971,519
496,194

Debt to capitalization ratio i


has been

2009

2010

0.58810139 -11.822175
73,916 -1,415,678
12,568,581 11,974,768

Net profit margin is decreasing from 2008 to 2010. This is due to the incre
2002 to 2010 there is a decline of net profit margin from 3.42% to -11.8
accounts to one of the reason. Instead of the fact that BNL is in losses, it w
could create concerns am

3.34203854 -183.42193 Return on equity tells us how much the shareholders are earning. It measur
73,916 -1,415,678 is also declining over the time hugely. This is because BNL has been borrowi
2,211,704
771,815 as there is no payment done on the part of BNL. One more reason is the cre
receivable which do not contribut towards the
2.462255 -17.059438
199,492 -1,251,782
8,102,013 7,337,770

Return on assets is also following a negative trend as BNL made losses for
growing along with the declining net income t

Days receivable is the ratio of the account receivable and average day's
106.98626 89.7896364
3,684,015 2,945,781 analysizing how well a company is collecting its sales made through credi
34434.4685 32807.5836 trend has been decreasing. Although the sales is seen to be stable over tim
because of the credit buying behaviour of customers. So there is a negati

Inventory turnover ratio is the ratio of cost of goods sold and total inven
2.8469587 3.19932437
8,698,367 8,836,150 company is selling off its products well and good on time without overcomin
turnover ration is increasing over time but with a marginal amount which
3,055,319 2,761,880
inventory has been

Total asset turn over is the ratio of total sales and toral assets of a comp
1.55129114 1.63193559
12,568,581 11,974,768 indicates that the assets are able to generate revenue with a marginal amou
effecient
8,102,013 7,337,770

1.58420575 1.23922742 Current ratio is the ratio of current assets and current liabilities. This ratio h
considered stable due to the credit buying option given to custom
7,100,369 6,292,321
4,481,974 5,077,616
0.90251528
4,045,050
4,481,974

0.695295
3,530,441
5,077,616

2.66324472 8.50716169
5,890,309 6,565,955
2,211,704
771,815

Quick ratio is also known as acid ratio which is the ratio of current assets
decreasing over time and its less than 1, which indicates tha

Current liabilities
Long term liabilities
4,292,203
858,836
4,481,974
1,280,566

5,077,616
2.75939598 2.88222741
1,408,335 1,488,339
510,378
516,385

1,473,538

Debt to equity ratio is the ratio of total liabilities and equity. This
in figuring out what amount of current liability is shareholder's e
is high it indicates risk for BNL whcih accounts to the bor

ebt to capitalization ratio is the ratio of long term liabilities and contributed capitals i.e. share capital. This is als
has been increasing and the share capital also but the rate of increase of long term liabilities i

s is due to the increase in sales of BNL stores and decline of net income(after tax). From
rom 3.42% to -11.82%. There has been high operating expenses by BNL Stores which
BNL is in losses, it was providing dividends to its shareholders which is questionable and
create concerns among the investors.

earning. It measures the financial profitability, leverages and efficiency. Return on equity
L has been borrowing heavily and the long-term debts are getting accumulated over time
ore reason is the credit buying scheme offered to customers, this increased their account
ontribut towards the net income as its creating a bad debt.

NL made losses for each of its amount investment. As the tax and interest expenses are
clining net income there is no scope for any improvements.

and average day's sales on credit. This ratio is decreasing over time. The ratio helps in
made through credit. As BNL has stated providing credit benefits to its customers so the
o be stable over time but the numerator part i.e. account receivable has been decreasing
So there is a negative trend. There should be a limit to which the credit sales hsould be

old and total inventory. This ratio should be moderate which would implecate that the
without overcoming an out of stock scenario. Here for BNL we can see that the Inventory
ginal amount which can be considered as a stable state as both cost of goods sold and
inventory has been increasing.

ral assets of a company. For BNL the ratio has been increasing with a stable rate. This
th a marginal amount. This is a posititve trend which also indicates the recovery of assets
effeciently.

bilities. This ratio has decreased during the FY 2010. althought the current assets can be
ion given to customers but the current liabilities as they have long-term debts.

io of current assets excluding the inventory and current liabilities. Quick ratio has been
which indicates that the current assets cannot cover the current liabilities.

80,858
99,320

total long term


total liabiolities
31,825
971,519
5,263,722
28,449
1,408,335
5,890,309

14,801

1,488,339

6,565,955

ties and equity. This ratio has been increasing hugely by the FY 2010 at 8.5%. This helps
y is shareholder's equity. It also measures the company's financial leverages. As the ratio
accounts to the borrowings done by BNL Stores to cover the operating expenses.

e capital. This is also increasing over time. The long term liabilities
ong term liabilities is more and hence the ratio.

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