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A few comments on the organization and content of the report may be helpful to reader.
In doing so, we realize that some topics may be more important to some reader then to
other. For that reason we some advanced material (e.g. questionnaires) appears in
appendices. Our goal is to help the reader who must compare financial position of these
two companies.
First we focused on the essential element of this report. We have included here the
introduction of this report, objectives of the report, findings, methodology, so that the
reader can get ideas easily.
The second part is very important from the sense of this report. Here we have given our
recommendation of the report. We have tried out level best to give the commendation
neutrally. It also contains the conclusion of this report.
Introduction
This report is based on compare of two companys financial situation. It has been
prepared by a group of fore students for the Financial Accounting Course (ACT 142).
This is based on two companys financial position which is helpful for the companies
and us to know the real situation.
Objective of the Report
This term paper is prepared under submitted as a major requirement of the Financial
Accounting Course. Financial Accounting provides the facts needed to make informed
economic as well as operational control.
NABISCO BUSCUIT
Bhaia Group Of Industries
Horizontal Analysis
BALANCE SHEET
AS AT 30 JUNE 2007
Increase/(Decrease)
PARTICULARS 30 JUNE 2007 30 JUNE 2006
Amount %
Assets
Current Assets:
33,801,622
VERTICAL ANALYSIS
Assets
Current assets:
Current liability
50,102,521 5.24%
Current portion of long
term loan 21,709,923 2.35% 413,406,543 43.20%
Short term loan from
bank ( secured) 409,262,567 44.33% 12,723,372 1.33%
Liabilities for goods 12,666,636 1.37% 7,339,692 0.77%
Liabilities for expenses 8,618,255 0.93%
Liabilities for other
finance 31,244 0.0033% 15,850 0.0017%
Interest payable 364,776 0.04% 817,653 0.09%
Workers profit
participation and
welfare founds 4,937,086 0.54% 3,534,006 0.37%
Income tax payable 9,692,931 1.05% 6,519,324 0.68%
Unclaimed dividend 2,090,922 0.23% 1,810,717 0.18%
Total current
liabilities 469,374,340 50.84% 496,269,678 51.86%
Long-Term Liabilities
Total Long-Term
Liabilities
111,097,836 12.03% 132,790,732 13.87%
Total Liabilities
580,472,176 62.87% 629,060,410 65.73%
Shareholders Equity
Increase/(Decrease)
PARTICULARS 30 JUNE 2007 30 JUNE 2007
Amount %
Less: Expense
Administration & Selling
Expense (92,570,466) (87,462,613) (5,107,853) (5.84%)
Financial Expense (90,559,523) (87,723,138) (2,836,385) (3.23%)
Less: contribution to
workers participation &
welfare fund (2,049,564) (1,722,264) (327,300) (19.00%)
Less: Expense
Administration &
Selling Expense (92,570,466) (9.39%) (87,462,613) (9.45%)
Financial Expense (90,559,523) (9.19%) (87,723,138) (9.48%)
Total operating
expense (183,129,989) (18.58%) (175,185,751) (18.93%)
Less: contribution to
workers participation
& welfare fund (2,049,564) (0.21%) (1,722,264) (0.19%)
Increase/(Decrease)
PARTICULARS 30 JUNE 2008 30 JUNE 2007
Amount %
Assets
Current Assets:
Inventories 179,325,915 194,869,092 (15,543,177) (7.98%)
Sundry Debtors 17,788,091 13,624,565 4,163,526 30.56%
Advance, Deposits &
prepayments 237,955,932 180,007,188 57,948,744 32.19%
Cash & Cash Equivalents 57,878,355 34,156,459 23,721,896 69.45%
Current Liabilities:
Total Current
Liabilities 324,374,618 261,913,242 62,461,376 23.85
Long-Term Loan
(Secured) 33,688,476 55,625,819 (21,937,343) (39.44%)
Lease Finance Long-
Term 58,386,887 28,032,109 30,354,778 108.29%
Deferred Tax Liability 7,069,298 7,120,394 (51,096) (0.72)
Long-Term Debt 19,241,524 16,272,794 2,968,730 18.24%
Shareholders Equity
Total Shareholders
Equity 322,651,549 296,385,495 26,266,054 8.86%
Assets
Current Assets:
Inventories 179,325,915 23.43% 194,869,092 29.29%
Sundry Debtors 17,788,091 2.32% 13,624,565 2.05%
Advance, Deposits &
prepayments 237,955,932 31.09% 180,007,188 27.05%
Cash & Cash
Equivalents 57,878,355 7.56% 34,156,459 5.13%
Current Liabilities:
Loans 83,937,863 10.97% 73,465,476 11.04%
Interest Payable 000 0.00% 919,471 0.14%
Creditors for Goods 92,190,262 12.04% 87,049,603 13.08%
Creditors for Service 5,400,864 0.71% 6,664,564 1.00%
Accrued Expense 21,405,233 2.80% 14,231,005 2.14%
Advance Against Sales 35,354,846 4.62% 15,843,952 2.38%
Liabilities For Others
20,593,612 2.69% 17,526,579 2.63%
Finance
Lease Finance Current 13,276,268 1.73% 9,469,764 1.42%
Portion 43,562,396 5.69% 26,115,499 3.93%
Provision for Taxation 8,653,274 1.13% 10,627,329 1.60%
Unclaimed Dividend
Shareholders Equity
172,937,600 22.59% 172,937,600 25.99%
Share Capital (TK.5) 95,626,050 12.49% 95,626,050 14.38%
Share Premium 54,087,899 7.07 27,821,845 4.18%
Retained Earnings
Increase/(Decrease)
PARTICULARS 30 JUNE 2008 30 JUNE 2007
Amount %
Less: contribution to
workers participation &
welfare fund (3,134,250) (2,207,213) (927,037) (42.00%)
Less: Expense
Administration Expense (54,637,366) (3.74%) (43,293,940) (4.09%)
Selling Expense (152,652,576) (10.45%) (90,267,081) (8.53)
Financial Expense (28,880,513) (1.98/%) (33,776,121) (3.19%)
Less: contribution to
workers participation &
welfare fund (3,134,250) (0.20%) (2,207,213) (0.21%)
Current Assets
1. Current Ratio =
Current Liabilities
673,260,852
=
469,374,340
= 1.43:1
189,060,707
=
469,374,340
= 0.40:1
985,454,208
=
44,242,900 + 59,711,981
2
985,454,900
=
51,977,440.5
= 18.96 Times
761,332,926
=
484,200,145 + 483,346,039
2
761,332,926
=
483,773,092
= 1.57 Times
Net Income
5. Profit Margin = *100
Net Sales
35,949,959
= *100
985,454,208
= 3.65%
Net Sales
6. Assets Turnover =
Average Assets
985,454,208
923,186,537 + 956,988,159
2
= 1.05 Times
Net Income
7. Return on Assets = *100
Average Assets
35,949,959
= *100
923,186,537 + 956,988,159
2
= 3.82%
Net Income
= *100
Average Common Stockholders Equity
35,949,959
= *100
342,714,361 + 327,927,745
2
= 10.72%
Total Debt
9. Debt to Total Asset Ratio =
Total Assets
580,472,176
=
923,186,537
= 62.88%
Net Income
10. Earnings per Share =
Weighted Average Common Stockholders Equity
35,949,959
=
16,000,000
= $2.25
100
=
$2.25
= 44.44
Cash Dividends
12. Payout Ratio =
Net Income
22,400,000
=
35,949,959
= 0.62:1
131,550,816
=
2,437,845
= 53.96 Times
Total Debt
14. Total Equity =
Total Equity
580,472,176
=
342,714,361
= 1.69:1
TIBBOT
Ratio Analysis
Current Assets
1. Current Ratio =
Current Liabilities
492,948,293
=
324,374,618
= 1.52:1
313,622,378
=
324,374,618
= 0.97:1
1,460,110,761
=
17,788,091 + 13,624,565
2
985,454,900
=
51,977,440.5
= 92.96 Times
1,172,379,583
=
179,325,915 + 194,869,092
2
1,172,379,583
=
187,097,503.5
= 6.27 Times
Net Income
5. Profit Margin = *100
Net Sales
45,289,190
= *100
1,460,110,761
= 3.10%
Net Sales
6. Assets Turnover =
Average Assets
1,460,110,761
=
765,412,352 + 665,349,853
2
= 2.04 Times
Net Income
7. Return on Assets = *100
Average Assets
45,289,190
= *100
765,412,352 + 665,349,853
2
= 6.33%
Net Income
= *100
Average Common Stockholders Equity
45,289,190
= *100
322,651,549 + 296,385,495
2
= 7.32%
Total Debt
9. Debt to Total Asset Ratio = *100
Total Assets
442,760,803
= *100
765,412,352
= 57.85%
Net Income
10. Earnings per Share =
Weighted Average Common Stockholders Equity
Cash Dividends
12. Payout Ratio =
Net Income
=
Total Debt
14. Total Equity =
Total Equity