1.1 INTRODUCTION OF THE COMPANY Reckitt Benckiser (BD) Ltd.

was listed in Dhaka Stock Exchange in 1987 as a Public Limited Company. The company traded in DSE and CSE as A category stock and the end of year 2009 market price of Reckitt Benckiser was BDT 1556.00 which was 259.35% more than previous year. On the other hand the book value of Reckitt Benckiser was BDT 61.39 at the end of 2009 which was 33.61% less than previous year. The market value ratio is 25.35 at the end of the year 2009. Moreover, the market price had increased over past few years. In 2006, the year end market price was BDT 202.00 where the price growth was 73.39% than 2005. So, we can easily say that the investors have strong confidence on Reckitt Benckiser as a result their price is so high then the book value which is a very good news for the company. The revenue of the Company reported rapid growth at 2005 but after that the growth of revenue earning gone down slowly. In 2005 the revenue growth was 34.14% than 2004 but after that the revenue growth gone down slowly the revenue growth was 33.89%, 25.85%, and 14.75% in 2006, 2007 and 2008 respectively from their previous year. In 2009 RB have the revenue growth was only 7.92% and the total revenue of 2009 was BDT 1,884,621,742. The main reasons for this slow growth could be the industry and the company became mature day by day. But the good news is the increasing revenue. The revenue mainly increased resulting from increase in price of the yarn over the years. Going forward, over the short term to medium term, the Company has planned to expand its capacity for which there may be huge revenue increase in the upcoming year. The Earning per share (EPS) of RB had increased over the years. In 2005 the EPS of RB was BDT 15 which is 85.09% more than previous year. Furthermore, in 2009 the EPS was BDT41.90 which is 19.53% more than previous year. RB consistently shows this EPS growth that was also the main reason investor get the confident on Reckitt Benckiser that RB will perform well in future. As a result, the market price is much higher than the book value. Over the past few years RB consistently show the positive net cash flow. In 2005 their cash flow was more than 242 million and in 2008 their cash flow was more than 648 million but in 2009 their cash flow gone down to 264 million. Its mean RB invested huge amount of money for generates more profit in future and in 2009 they give historic dividend to the share holders. These factors also affect their market price. In 2005 their price-earnings ratio (P-E Ratio) was 16.04 but in 2009 RBs price earning ration was 37.14. So, it clearly shows that investors have strong confident about the company.

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