Executive summery

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. The importance of ratio analysis emerges due to the fact that the process of ratio
analysis summarizes and simplifies the mass of accounting data derived from the Financial
Statements. It provides the information in such a simple and concise manner that not only the
comprehension of financial statements is made with a very little effort, but also it enables to
predict the events in the future so that necessary actions or precautionary measures may be
taken accordingly. When used properly, ratio analysis is very much helpful in evaluating the
current position and performance of a business while highlighting the capital gearing capacity
of a business entity. Ratio analysis is of great help in making comparative study with other
business or businesses. It is by means of ratio analysis that the current performance as well as
the profitability in terms of the trends can be identified accurately. On the one hand the Ratio
analysis provides the necessary information through which the interpretation of Financial
Statements becomes easier; on the other hand, ratios are helpful to disclose the whole story of
changes in the financial position and performance of a business entity. Thus the Ratio Analysis is
a great way to provide the overall value of a business enterprise.

In this report we addressed 5 major categories (Liquidity, Asset- Management, Debt

Management, Profitability and Stock-Market) of ratio to analyze the financial strength of
BERGER Bangladesh Ltd from 2011-1. The report will also present the vertical and horizontal
analysis of income statement and balance sheet of BERGER Bangladesh Ltd for 2011-15. From
the result of different types of ratios both time series and cross-sectional analysis have been done
to see the financial performance of BERGER Bangladesh Ltd It has found that BERGER
Bangladesh Ltd is in good financial condition since they are earing huge profit than their
competitors. Some recommendations are provided in this report which can provide insights for
BERGER Bangladesh Ltd to have more efficient performance in future.

BERGER Bangladesh Ltd. has enough financial strength to expand its business in future. In
future BERGER Bangladesh Ltd. will contribute more to the economy of Bangladesh by
expanding their business.
Table of contents
Introduction ...1

Common size statements ...2

Vertical Balance Sheet ..2

Vertical income statement ..5

Horizontal balance sheet ...7

Horizontal income statement 9

Ratio analysis ..11

Liquidity ratio ..11

Asset management ratio .12

Debt management ratio .18

Profitability ratio 20

Stock market ratio ..23

Conclusion .25
 1

Introduction

Berger Paints is one of the oldest names in the paint industry, yet, it is one of the most
technologically advanced companies in the country. It is constantly striving for innovating
superior quality products and services. With more than 250 years of rich heritage, Berger
manufactures world class paints for all kinds of substrates and also provides parallel services.

Bergers inception was laid out in 1760 by a German national named Louis Berger, who started
dye and pigment making business in England. Louis involved his family into the business and
eventually changed the status of the company to Louis Berger & Sons Limited. The company
grew and expanded rapidly with a strong reputation for excellence in innovation and
entrepreneurship.

Berger Paints started painting Bangladesh since independence. Over the past few decades,
Berger has evolved and transformed itself in becoming the leading paint solution provider in the
country with a diversified product range that caters to all your painting needs.

Berger has heavily invested in technology and Research & Development (R&D) compared to
any other manufacturer in this market. Investment in technology and plant capacity is even more
evident from the establishment of Powder Coating and Emulsion plants at the Dhaka factory.
With its strong distribution network, Berger has reached almost every corner of Bangladesh.

The product range includes specialized outdoor paints to protect against adverse weather
conditions, Color Bank, Superior Marine Paints, Textured Coatings, Heat Resistant Paints,
Roofing Compounds, Epoxies and Powder Coatings. In each of these product categories, Berger
has been the pioneer. Besides, Berger offers illusions-the first designer paint solution in
Bangladesh.

In the stock market Berger is categorized under the miscellaneous sector. Berger has many
market competitor. Beximco ltd is one of the top competitors of Berger. We are going to
compare Berger and Beximco ltds financial ratios.
 2

Common Size Statements

Vertical Analysis

Vertical analysis is the proportional analysis of a financial statement, where each line item on a
financial statement is listed as a percentage of another item. Typically, this means that every line
item on an income statement is stated as a percentage of gross sales, while every line item on a
balance sheet is stated as a percentage of total assets.

Vertical Analysis of the Balance Sheet

The central issue when creating a vertical analysis of a balance sheet is what to use as the
denominator in the percentage calculation. The usual denominator is the asset total, but one can
also use the total of all liabilities when calculating all liability line item percentages, and the total
of all equity accounts when calculating all equity line item percentages.

Vertical Balance Sheet of BERGER Bangladesh Limited:

With Total Asset as a base. Figures in Taka

Balance sheet Item 2,015 2,014 2,013 2,012 2,011 Average Standard
Deviation
(%) (%) (%) (%) (%) (%)
(%)

Non-Current Assets

Property, plant & 29.08 29.52 30.34 28.07 29.61 29.32 0.83
equipment

Capital work-in-progress 6.16 3.21 2.34 3.52 0.41 3.13 2.08

Intangible assets 1.01 0.43 0.39 0.65 1.00 0.70 0.30

36.25 33.17 33.08 32.24 31.02 33.15 1.94

 3

Term deposits 2.45 1.71 2.08 0.52

Investment-at cost 1.41 0.74 0.92 1.10 1.15 1.06 0.25

Total non-current assets 37.66 33.90 33.99 35.79 33.87 35.04 1.67

Current assets

Inventories 23.88 31.06 30.56 33.35 39.33 31.64 5.56

Trade and other 14.82 15.57 15.39 14.00 13.80 14.72 0.80
receivables

Advances, deposits & 3.73 4.07 4.17 4.12 4.47 4.11 0.26
prepayments

Term deposits 12.62 7.48 5.84 1.94 0.56 5.69 4.79

Cash and Equivalents 5.21 5.50 8.31 8.26 7.19 6.89 1.48

Inter-company 2.03 2.35 1.57 2.53 0.78 1.85 0.70

receivables

Deferred tax assets 0.05 0.07 0.16 0.09 0.06

Total current assets 62.34 66.10 66.01 64.21 66.13 64.96 1.67

Total Assets 100 100 100 100 100 100 0

Equity and Liabilities

Share capital 3.66 4.34 5.41 6.50 6.77 5.34 1.34

Share premium 1.82 2.15 2.69 3.22 3.36 2.65 0.67

General reserve 0.16 0.19 0.23 0.28 0.29 0.23 0.06

 4

Retained earnings 58.08 56.06 56.28 55.12 47.63 54.63 4.06

Equity attributable to 63.71 62.74 64.62 65.12 58.06 62.85 2.83

equity holders

Non-current liabilities

Deferred tax liabilities 2.64 2.63 3.10 2.76 3.00 2.83 0.21

Total Non-current 2.64 2.63 3.10 2.76 3.00 2.83 0.21

liabilities

Current Liabilities

Operational overdraft 0.03 1.92 1.58 0.93 9.27 2.75 3.72

Trade and other payables 27.56 26.68 23.39 23.78 22.15 24.71 2.30

Provision for royalty 2.62 2.67 2.91 4.73 5.51 3.69 1.34

Provision for current tax 3.12 2.94 3.57 2.34 1.66 2.73 0.74

Provision for employees 0.19 0.28 0.66 0.14 0.18 0.29 0.21
retirement gratuity

Unclaimed dividend 0.12 0.14 0.17 0.19 0.18 0.16 0.03

local

Liability for unclaimed 0.00 0.00 0.00 0.00 0.00 0.00 0.00
IPO application money

Total current liabilities 33.65 34.63 32.28 32.12 38.94 34.32 2.78

Total liabilities 36.29 37.26 35.38 34.88 41.94 37.15 2.83

 5

Total equity and 100.00 100.00 100.00 100.00 100.00 100.00 0

liabilities

Contingent liabilities 9.32 14.02 15.45 25.50 14.14 15.69 5.96

Vertical Analysis of the Income Statement

The most common use of vertical analysis in an income statement is to show the various expense
line items as a percentage of sales, though it can also be used to show the percentage of different
revenue line items that make up total sales.

Vertical Income Statement of BERGER Bangladesh Limited:

With Sales as a base. Figures in Taka

2015 2014 2013 2012 2011 Average Standard

(%) (%) (%) (%) (%) (%) Deviation
(%)

Sales 100.00 100.00 100.00 100.00 100.00 100.00 0.00

Cost of sales -57.16 -60.52 -62.32 -66.83 -66.32 -62.63 4.05

Gross profit 42.84 39.48 37.68 33.17 33.68 37.37 4.05

Expenses

Selling, Distribution 23.81 23.30 20.93 16.85 16.55 20.29 3.45

& warehouse

expenses

Administrative and 3.91 3.72 3.66 3.63 3.74 3.73 0.11

general expenses
 6

Other operating 0.75 0.74 0.78 0.82 0.79 0.78 0.03

expenses

Other operating 1.08 1.55 1.40 1.44 1.73 1.44 0.24

income

-26.56 -25.50 -23.96 -19.86 -14.33 -22.04 5.01

Operating income 16.27 13.98 13.72 13.31 19.35 15.33 2.53

Finance cost -0.06 -0.04 -0.12 -0.23 -0.69 -0.23 0.27

Investment income 0.40 0.44 0.36 0.34 0.43 0.39 0.04

Net finance income 0.33 0.40 0.24 0.11 0.26 0.27 0.11

Other non-operating -0.02 0.02 0.01 0.01 0.09 0.02 0.04

(loss)/ income

Income before tax 15.76 13.68 13.97 13.43 14.16 14.20 0.92

Current tax expenses 3.91 3.49 3.87 3.60 2.69 3.51 0.49

Deferred tax 0.22 0.10 0.31 0.06 0.06 0.15 0.11

expenses

-4.14 -3.59 -4.18 -3.54 -2.75 -3.64 0.58

Net income 11.62 10.09 9.79 9.89 11.41 10.56 0.88

Basic earnings per 0.00 0.00 0.00 0.00 0.00 0.00 0.00
share
 7

Horizontal analysis

Horizontal analysis is a financial statement analysis technique in which absolute change and
percentage change in value of each line item of a financial statement is calculated over one or
more accounting periods. Horizontal analysis may be performed on any financial statement i.e.
balance sheet, income statement, cash flow statement and statement of changes in owners'
equity.

Horizontal analysis of Balance Sheet:

In Horizontal Balance Sheet, we use same Base Year. All Base Year figures will become 100%
and all other items will be expressed as a percent of that items Base Year figure.

Horizontal Balance Sheet of BERGER Bangladesh Limited:

With 2011 year as a base. Figures in Taka

Balance sheet Item 2011 2012 2013 2014 2015

(%) (%) (%) (%) (%)

Property, plant & equipment 100 99 128 156 182

Capital work-in-progress 100 891 713 1218 2773

Intangible assets 100 67 49 67 187

100 108 133 167 216

Term deposits 100 150 0 0 0

Investment-at cost 100 100 100 100 227

Total non-current assets 100 110 125 156 206

Current assets
 8

Inventories 100 88 97 123 112

Trade and other receivables 100 106 140 176 199

Advances, deposits & prepayments 100 96 117 142 154

Term deposits 100 361 1305 2088 4176

Cash and Equivalents 100 120 145 119 134

Inter-company receivables 100 339 253 471 483

Total current assets 100 101 125 156 174

Total Assets 100 104 125 156 185

Equity and Liabilities

Share capital 100 100 100 100 100

Share premium 100 100 100 100 100

General reserve 100 100 100 100 100

Retained earnings 100 121 148 184 226

Equity attributable to equity holders 100 117 139 169 203

Non-current liabilities

Deferred tax liabilities 100 96 129 137 163

Total Non-current liabilities 100 96 129 137 163

Current Liabilities

Operational overdraft 100 10 21 32 1

 9

Trade and other payables 100 112 132 188 230

Provision for royalty 100 89 66 76 88

Provision for current tax 100 147 270 277 349

Provision for employees retirement gratuity 100 84 461 247 195

Unclaimed dividend local 100 111 114 122 128

Liability for unclaimed IPO application 100 96 96 96 96

money

Total current liabilities 100 86 104 139 160

Total liabilities 100 87 105 139 160

Total equity and liabilities 100 104 125 156 185

Contingent liabilities 100 188 137 155 122

Horizontal analysis of Income Statement:

In Horizontal Balance Sheet, we use same Base Year. All Base Year figures will become 100%
and all other items will be expressed as a percent of that items Base Year figure.

Horizontal Income Statement of BERGER Bangladesh Limited:

With 2011 year as a base. Figures in Taka

 10

2011(%) 2012(%) 2013(%) 2014(%) 2015(%)

Sales 100 120 139 172 194

Cost of sales 100 121 131 157 167

Gross profit 100 119 156 202 247

Expenses

Selling, Distribution & warehouse 100 123 176 242 279

expenses

Administrative and general expenses 100 117 136 171 203

Other operating expenses 100 124 137 161 183

Other operating income 100 100 113 154 121

100 167 233 306 360

Operating income 100 83 99 124 163

Finance cost 100 41 25 10 18

Investment income 100 96 116 177 178

Net finance income 100 52 126 267 248

Other non-operating (loss)/ income 100 20 11 33 39

Income before tax 100 114 137 166 216

Current tax expenses 100 161 200 224 282

Deferred tax expenses 100 122 758 307 756

100 155 212 225 292

Net income 100 104 119 152 198

Basic earnings per share 100 104 119 152 198

 11

Ratio Analysis

Liquidity Ratio

Liquidity ratios are the ratios that measure the ability of a company to meet its short term debt
obligations. These ratios measure the ability of a company to pay off its short-term liabilities
when they fall due. They show the number of times the short term debt obligations are covered
by the cash and liquid assets. If the value is greater than 1, it means the short term obligations are
fully covered. Current Ratio is one kind of Liquidity ratio which is discussed below-

Current Ratio: The current ratio is a financial ratio that shows the proportion of current assets
to current liabilities. The current ratio is used as an indicator of a company's liquidity.

BERGER Bangladesh Limiteds Current Ratio over the five years from 2011-2015 is given
below with analysis of Time series & Cross Functional:

Ratio Formula BERGER BEXIMCO15

2011 2012 2013 2014 2015

Current Current 1.70 2.00 2.04 1.91 1.85 3.53

Ratio Asset/
current
liabilities
 12

Interpretation of Current Ratio:

In the year 2015, The BERGER Bangladesh Limiteds Current asset were only 1.85 times of
their current liabilities. It has been fluctuating over the last 5 years. It increases in values over the
years 2012 & 2013 consecutively & dropped in the year of 2014 and again in 2015. It is
significantly below the current ratio of BEXIMCO Ltd. So, the current ratio is not satisfactory.

Asset Management Ratio

Total Assets Turnover Ratio: Total Asset turnover ratio is the ratio of a company's sales to its
assets. It is an efficiency ratio which tells how successfully the company is using its assets to
generate revenue.

Ratio Formula BERGER BEXIMCO15

2011 2012 2013 2014 2015

Total Sales/ 1.85 2.13 3.11 2.04 1.94 0.30

Asset Total
Turnover Asset
Ratio
 13

Interpretation of Total Asset Turnover Ratio: In 2015, every BDT1 worth of total assets
guaranteed BDT1.94 of sales. The ratio was rising form the value 1.85 in 2011, 2.13 in 2012 and
3.11 in 2013.But then it has dropped significantly to 2.04 in 2014 and 1.94 in 2015. Though
BERGER is significantly above BEXIMCO but its sales against the asset declined over last 2
years which is not satisfactory.

Fixed Asset Turnover Ratio: Fixed asset turnover ratio compares the sales revenue a company
to its fixed assets. This ratio tells us how effectively and efficiently a company is using its fixed
assets to generate revenues. If a company has a high fixed asset turnover ratio, it shows that the
company is efficient at managing its fixed assets.
 14

Ratio Formula BERGER BEXIMCO15

2011 2012 2013 2014 2015

Fixed Sales/ 5.45 5.96 6.04 6.00 5.14 0.81

Asset Fixed
Turnover Asset
Ratio
 15

Interpretation of fixed asset turnover ratio:

In 2014, every BDT1 worth of fixed assets guaranteed BDT5.14 of sales. Fixed asset turnover
ratio increased in 2012 and 2013. Then it slightly dropped to 6.00 in 2014 and dropped
significantly to 5.14 in 2015. Though BERGERs position is much better than BEXIMCO but its
Fixed asset turnover ratio is declining for last two years which is little unfavorable.

Average Collection Period: The Average Collection Period measures the average number of
days it takes for the company to collect revenue from its credit sales. The company will usually
state its credit policies in its financial statement, so the Average Collection Period can be easily
gauged as to whether or not it is indicating positive or negative information.

Ratio Formula BERGER BEXIMCO15

2011 2012 2013 2014 2015

Average 26.91 23.63 26.97 27.55 27.57 285.98

(Accounts
Collection
Receivable
Period (in
/Sales)*100
days)
 16

Interpretation of average collection period:

In 2015, on an average, BERGER took approximately 28 days to collects receivables from

customers. It was fluctuating slightly over the last 3 years, increased significantly from the year
2012 & continued increasing. BERGERs performance is far better than BEXIMCO. The
Situation is favorable.

Average Payment Period: Average payment period means the average period taken by the
company in making payments to its creditors.

Ratio Formula BERGER BEXIMCO

15
2011 2012 2013 2014 2015

Average 65.13 60.05 65.77 77.98 89.69 128.74

Payment (Accounts
Period payable/COGS)*100
(in days)
 17

Time Series Analysis of BERGER's

Averare Payment Period
100
80
89.69
60 77.98
65.13 60.05 65.77
40 Average Payment
Period
20
0
Year Year Year Year Year
2011 2012 2013 2014 2015

Cross Sectional Analysis of BERGER &

BEXIMCO's Average Payment Period

150

100
Average Payment
Period
50

0
BERGER' 15 BEXIMCO'15

Interpretation of average payment period: In 2014, on an average, BERGER took

approximately 90 days to make the payment to the suppliers. Except the slight fall in the year
2012 the average payment period is continuously increasing. Average payment period is near
about 3 times more than average collection period & also better than BEXIMCO which is
favorable.
 18

Debt Management Ratio

A ratio of a company's debt to its total financing is called Debt Management Ratio. The debt
management ratio measures how much of a company's operations come from debt instead of
other forms of financing, such as stock or personal savings.

The debt management ratio is one measure among many of a companys risk and likely hood of
default. Two types of Debt Management Ratio:

Debt to Asset Ratio: A financial ratio that measures the extent of a companys or consumers
leverage. The debt ratio is defined as the ratio of total debt to total assets, expressed in
percentage, and can be interpreted as the proportion of a companys assets that are financed by
debt. The higher this ratio, the more leveraged the company and the greater its financial risk.

Ratio Formula BERGER BEXIMCO15

2011 2012 2013 2014 2015

Debt to (Total 41.94 34.88 35.38 37.26 36.29 49.23

Asset Debt/Total
Ratio Asset)*100
 19

Interpretation of Debt to Asset Ratio: In the year of 2015 36.29% of total assets was financed
by debt, the amount is less than 50% also less than previous year. The ratio is also less the
competitor BEXIMCO which is favorable.

Capital Structure: Capital structure indicates what percentage of total asset is financed by debt
& what percentage of total asset is financed by equity.

Ratio Formula BERGER BEXIMCO15

2011 2012 2013 2014 2015

Capital (Total 41.94% 34.88% 35.38% 37.26% 36.29%

Structure Debt+ Total & & & & &
Equity/Total 58.06% 65.14% 64.62% 62.74% 63.71%
Asset)*100

Interpretation of Capital Structure: In the year of 2015 BERGERs total asset, 36.29% was
financed by debt & 63.71% was financed by equity. No time series or cross section analysis is
required.
 20

Profitability Ratio

A class of financial metrics that are used to assess a business's ability to generate earnings as
compared to its expenses and other relevant costs incurred during a specific period of time. For
most of these ratios, having a higher value relative to a competitor's ratio or the same ratio from a
previous period is indicative that the company is doing well.

Net Profit Margin: A financial metric used to assess a firm's financial health by revealing the
proportion of money left over from revenues after accounting for the cost of goods sold, tax &
interest.

BERGER Bangladesh Limiteds net Profit Ratio over the five years 2011-2015 is given below
with analysis.

Ratio Formula BERGER BEXIMCO15

2011 2012 2013 2014 2015

Net 11.41 9.89 9.79 10.09 11.62 3.14

Profit (Net Profit
Margin /Sales)*100

Time Series Analysis of BERGER's Net

Profit Margin
12
11.5
11 11.62
10.5 11.14
10
Net Profit Margin
9.5 10.09
9.89 9.79
9
8.5
Year Year Year Year Year
2011 2012 2013 2014 2015
 21

Cross Sectional Analysis of BERGER &

BEXIMCO's Net Profit Margin

12
10
8
6 Net Profit Margin
4
2
0
BERGER'15 BEXIMCO'15

Interpretation of Net Profit Margin: In 2015, BERGER had a net profit margin of 11.62%,
which means that for every BDT100 worth of sales, they were able to generate BDT 11.62 worth
of net profit for the firm. In 2011 it was 11.14% but dropped significantly to 9.89% in 2012 and
9.79% in 2013. It has been increasing for the last two years. Net profit margin of BERGER is
pretty much higher than BEXIMCOs. So, the situation is good.

Returns of Common Equity (ROE): The amount of net income returned as a percentage of
shareholders equity. Return on equity measures a corporation's profitability by revealing how
much profit a company generates with the money shareholders have invested. ROE is expressed
as a percentage.

BERGER Bangladesh Limiteds Returns of Common Equity (ROE) over the five years 2011-
2015 is given below with analysis.

Ratio Formula BERGER BEXIMCO

15
2011 2012 2013 2014 2015

Return 36.27 32.40 31.11 32.72 35.31 1.82

on (Net Profit/Total
Common Common
Equity Equity)*100
 22

Time Series Ananlysis of BERGER's

Return on Common Equity
38
36
34 36.27
35.31
32 Return on
30 32.4 32.72 Equity
28 31.11
Year Year Year Year Year
2011 2012 2013 2014 2015

Interpretation of Return on Common Equity (ROE): In 2015, BERGER had a Return on

Equity of 35.31%, which means that for every BDT100 the common shareholders invested for
this company, they received a return of BDT35.31 from BERGER. The value dropped in the
years 2012 and 2013 but increasing for the last two years. BERGERs ROE is significantly
higher than BEXIMCOs ROE on 2015. The situation is good.
 23

Stock Market Ratio

These ratios give an indication of how investors perceive the company; its past performance,
future prospects, etc. The performance of the company's shares in the stock market is crucial
from shareholders point of view and management as well. In some organizations top
management bonus are linked to the share price in the stock market. Earnings per share is one of
a stock market ratio which is discussed below.

Earnings per Share: The firms earnings per share are generally of interest to present or
prospective stockholders and management. EPS represents the number of currency earned during
the period on behalf of each outstanding share of common stock.

Ratio Formula BERGER BEXIMCO

15
2011 2012 2013 2014 2015

Earnings Net profit after tax/ 31.10 32.46 37.13 47.33 61.49 1.59
per Share Total number of
common share
outstanding

Time Series Analysis of BERGER's

Earnings Per Share
80
60
40 61.49
47.33 Earnings Per
20 37.13 Share
31.1 32.46
0
Year Year Year Year Year
2011 2012 2013 2014 2015
 24

Cross Sectional Analysis of BERGER

& BEXIMCO's Earnings Per Share

80

60

40 Earnings Per

20

0
BERGER'15 BEXIMCO'15

Interpretation of Earnings per Share: In 2015, the Common Share Holders have earned
61.49Tk per share. As showed, the performance of EPS increased significantly over the last 5
years as well as far better than BEXIMCO. The situation is very good.
 25

Conclusion

In the liquidity ratio we can see that the performance of BERGER has been fluctuating and for
the last two years it has been declining. Their performance in also poor than their competitor
BEXIMCO. So the situation is a matter to be concerned and is not satisfactory. To improve
liquidity ratio, BERGER can use long-term financing rather than cash on hand to acquire
inventory and can sell unnecessary assets. Paying off liabilities also improves Liquidity ratio.

In the asset management ratio total asset turnover and the fixed asset turnover is not satisfactory
but average collection period and average payment period is satisfactory. Though all the values
are higher than that of BEXIMCO the company should consider improving the asset turnovers.

In the debt management ratio we can figure out that BERGER doesnt have so much debt to
dedicate into asset. Moreover, the debt rate has been decreasing gradually which is very good.

In the profitability ratio we can see that BERGER performing good in all aspects. Though it had
its fall but it has been uplifting significantly. The performance is far better than its competitor
BEXIMCO.

In the stock market ratio it is clear that BERGER has lucrative earnings per share which indicates
that they keep their investors satisfied.

So, analyzing all the data it can be concluded that BERGER is performing well in almost all the
aspects and it could be profitable to invest in BERGER.
 26

APPENDIX

Vertical Balance Sheet

Balance sheet 2,015 2,014 2,013 2,012 2,011

Item
(%) (%) (%) (%) (%)

Non-Current Assets

Property, (1843340/63 (1578664/534 (1299238/42 (1001521/356 (1013948/342

plant & 39060)* 100 6874)* 100 82363)* 100 8101)*100 4689)*100
equipment

Capital work- (390590/633 (171604/5346 (100405/428 (125556/3568 (14086/34246

in-progress 9060)* 100 874)* 100 2363)* 100 101)* 100 89)* 100

Intangible (64244/6339 (23076/53468 (16749/4282 (23121/35681 (34311/34246

assets 060)* 100 74)* 100 363)* 100 01)* 100 89)* 100

(2298174/63 (1773344/534 (1416392/42 (1150198/356 (1062345/342

39060)* 100 6874)* 100 82363)* 100 8101)* 100 4689)* 100

Term deposits (87381/35681 (58397/34246

01)* 100 89)* 100

Investment-at (89300/6339 (39300/53468 (39300/4282 (39300/35681 (39300/34246

cost 060)* 100 74)* 100 363)* 100 01)* 100 89)* 100

Total non- (2387474/63 (1812644/534 (1455692/42 (126681/3568 (1160042/342

current assets 39060)* 100 6874)* 100 82363)* 100 101)* 100 4689)* 100

Current assets
 27

Inventories (1513733/63 (1660913/534 (1308485/42 (1276879/356 (1346988/342

39060)* 100 6874)* 100 82363)* 100 8101)* 100 4689)* 100

Trade and (939573/633 (832711/5346 (659103/428 (1190049/356 (472468/3424

other 9060)* 100 874)* 100 2363)* 100 8101)* 100 689)* 100
receivables

Advances, (236617/633 (217539/5346 (178726/428 (499686/3568 (153202/3424

deposits & 9060)* 100 874)* 100 2363)* 100 101)* 100 689)* 100
prepayments

Term deposits (800000/633 (400000/5346 (250000/428 (147167/3568 (19155/34246

9060)* 100 874)*100 2363)* 100 101)* 100 89)* 100

Cash and (330156/633 (293875/5346 (356039/428 (69155/35681 (246207/3424

Equivalents 9060)* 100 874)* 100 2363)* 100 01)* 100 689)* 100

Inter- (128517/633 (125451/5346 (67330/4282 (294885/3568 (26627/34246

company 9060)* 100 874)*100 363)* 100 101)* 100 89)* 100
receivables

Deferred tax (2990/63390 (3741/534687 (6988/42823 (90280/35681

assets 60)* 100 4)* 100 63)* 100 01)* 100

Total current (3951586/63 (3534230/534 (2826671/42 (22912223568 (2264647/342

assets 39060)* 100 6874)* 100 82363)* 100 101)* 100 4689)* 100

Total Assets (6339060/63 (5346874/534 (4282363/42 (3568101/356 (3424689/342

39060)* 100 6874)* 100 82363)* 100 8101)* 100 4689)* 100
 28

Equity and Liabilities

Share capital (231889/633 (231889/5346 (231889/428 (231890/3568 (231890/3424

9060)* 100 874)*100 2363)* 100 101)* 100 689)* 100

Share (115068/633 (115068/5346 (115068/428 (115068/3568 (115068/3424

premium 9060)* 100 874)*100 2363)* 100 101)* 100 689)* 100

General (10000/6339 (10000/53468 (10000/4282 (10000/35681 (10000/34246

reserve 060)* 100 74)*100 363)* 100 01)* 100 89)* 100

Retained (3681556/63 (2997648/534 (2410195/42 (1966657/356 (1631268/342

earnings 39060)* 100 6874)*100 82363)* 100 8101)* 100 4689)* 100

Equity (4038513/63 (3354605/534 (2767152/42 (2323615/356 (1988226/342

attributable to 39060)* 100 6874)*100 82363)* 100 8101)* 100 4689)* 100
equity holders

Non-current liabilities

Deferred tax (167599/633 (140851/5346 (132934/428 (98374/35681 (102821/3424

liabilities 9060)* 100 874)* 100 2363)* 100 01)* 100 689)* 100

Total Non- (167599/633 (140851/5346 (132934/428 (98374/35681 (102821/3424

current 9060)* 100 874)* 100 2363)* 100 01)* 100 689)* 100
liabilities

Current
Liabilities

Operational (1859/63390 (102434/5346 (67691/4282 (33171/35681 (317423/3424

overdraft 60)* 100 874)* 100 363)* 100 01)*100 689)* 100
 29

Trade and (1747146/63 (1426465/534 (1001498/42 (848473/3568 (758445/3424

other payables 39060)* 100 6874)* 100 82363)* 100 101)* 100 689)* 100

Provision for (166027/633 (142515/5346 (124774/428 (168773/3568 (188614/3424

royalty 9060)* 100 874)* 100 2363)* 100 101)* 100 689)* 100

Provision for (197886/633 (157170/5346 (152838/428 (83490/35681 (56684/34246

current tax 9060)* 100 874)* 100 2363)* 100 01)* 100 89)*100

Provision for (11961/6339 (15114/53468 (28237/4282 (5172/356810 (6127/342468

employees 060)* 100 74)* 100 363)* 100 1)* 100 9)* 100
retirement
gratuity

Unclaimed (7922/63390 (7573/534687 (7092/42823 (6886/356810 (6196/342468

dividend 60)* 100 4)* 100 63)* 100 1)* 100 9)* 100
local

Liability for (147/633906 (147/5346874) (147/428236 (147/3568101) (153/3424689)

unclaimed 0)* 100 * 100 3)* 100 * 100 * 100
IPO
application
money

Total current (2132948/63 (1851418/534 (1382277/42 (1146112/356 (1333642/342

liablities 39060)* 100 6874)* 100 82363)* 100 8101)* 100 4689)* 100

Total (2300547/63 (1992269/534 (1515211/42 (1244486/356 (1436463/342

liabilities 39060)* 100 6874)* 100 82363)* 100 8101)* 100 4689)* 100
 30

Total equity (6339060/63 (5346874/534 (4282363/42 (3568101/356 (3424689/342

and liabilities 39060)* 100 6874)*100 82363)* 100 8101)* 100 4689)* 100

Contingent (590961/633 (749439/5346 (661551/428 (909966/3568 (484099/3424

liabilities 9060)* 100 874)* 100 2363)* 100 101)* 100 689)*100

Vertical Income Statement

2015 2014 2013 2012 2011

(%) (%) (%) (%) (%)

Sales (12267996/1 (10881046/ (8796778/87 (7611213/76 (6321274/63

2267996)*1 10881046)* 96778)* 100 11213)* 100 21274)* 100
00 100

Cost of sales (- (- (- (- (-
7012664/12 6585744/10 5481844/879 5086852/761 4192032/632
267996)*10 881046)* 6778)* 100 1213)* 100 1274)* 100
0 100

Gross profit (5255332/12 (4295302/1 (3314934/87 (2524361/76 (2129242/63

267996)*10 0881046)* 96778)* 100 11213)* 100 21274)* 100
0 100
 31

Expenses

Selling, (2921141/12 (2535540/1 (1840747/87 (1282451/76 (1046280/63

Distribution & 267996)*10 0881046)* 96778)* 100 11213)* 100 21274)* 100
warehouse 0 100

expenses

Administrative and (479974/122 (404409/10 (321653/879 (276422/761 (236286/632

general expenses 67996)* 100 881046)* 6778)* 100 1213)* 100 1274)* 100
100

Other operating (91995/1226 (80582/108 (68598/8796 (62069/7611 (50197/6321

expenses 7996)* 100 81046)* 100 778)* 100 213)* 100 274)* 100

Other operating (132670/122 (168444/10 (123279/879 (109379/761 (109340/632

income 67996)* 100 881046)* 6778)* 100 1213)* 100 1274)* 100
100

(- (- (- (- (-
3258931/12 2774349/10 2107719/879 1511563/761 905819/6321
267996)* 881046)* 6778)* 100 1213)* 100 274)* 100
100 100

Operating income (1996401/12 (1520953/1 (1207215/87 (1012798/76 (1223423/63

267996)* 0881046)* 96778)* 100 11213)* 100 21274)* 100
100 100

Finance cost (- (- (- (- (-
7884/12267 4573/10881 10805/87967 17772/76112 43661/63212
996)* 100 046)* 100 78)* 100 13)* 100 74)* 100

Investment income (48534/1226 (48343/108 (31495/8796 (26254/7611 (27254/6321

7996)* 100 81046)* 100 778)* 100 213)* 100 274)* 100

Net finance (40650/1226 (43770/108 (20690/8796 (8482/76112 (16407/6321

 32

income 7996)* 100 81046)* 100 778)* 100 13)* 100 274)* 100

Other non- (- (1789/1088 (606/879677 (1063/76112 (5387/63212

operating (loss)/ 2088/12267 1046)* 100 8)* 100 13)* 100 74)* 100
income 996)* 100

Income before tax (1933454/12 (1488774/1 (1228511/87 (1022343/76 (894799/632

267996)* 0881046)* 96778)* 100 11213)* 100 1274)* 100
100 100

Current tax (480000/122 (380000/10 (340000/879 (274000/761 (170000/632

expenses 67996)* 100 881046)* 6778)* 100 1213)* 100 1274)* 100
100

Deferred tax (27499/1226 (11165/108 (27572/8796 (4447/76112 (3636/63212

expenses 7996)* 100 81046)* 100 778)* 100 13)* 100 74)* 100

(- (- (- (- (-
507499/122 391165/108 367572/8796 269553/7611 173636/6321
67996)* 100 81046)* 100 778)* 100 213)* 100 274)* 100

Net income (1425955/12 (1097609/1 (860939/879 (752790/761 (721163/632

267996)* 0881046)* 6778)* 100 1213)* 100 1274)* 100
100 100

Basic earnings per (61.49/1226 (47.33/1088 (37.13/87967 (32.46/76112 (31.1/632127

share 7996)* 100 1046) 100 78) 100 13)* 100 4)* 100
 33

Horizontal Balance Sheet

Balance sheet Item 2011 2012 2013 2014 2015

(%) (%) (%) (%) (%)

Property, plant & (1013948/1 (1001521/1 (1299238/1 (1578664/1 (1843340/10

equipment 013948)* 013948)* 013948)* 013948)* 13948)* 100
100 100 100 100

Capital work-in- (14086/140 (125556/14 (100405/14 (171604/14 (390590/140

progress 86)* 100 086)* 100 086)* 100 086)* 100 86)* 100

Intangible assets (34311/343 (23121/343 (16749/343 (23076/343 (64244/3431

11)* 100 11)* 100 11)* 100 11)* 100 1)* 100

(1062345/1 (1150198/1 (1416392/1 (1773344/1 (2298174/10

062345)* 062345)* 062345)* 062345)* 62345)* 100
100 100 100 100

Term deposits (58397/583 (87381/583 (0/58397)* (0/58397)* (0/58397)*

97)* 100 97)* 100 100 100 100

Investment-at cost (39300/393 (39300/393 (39300/393 (39300/393 (89300/3930

00)* 100 00)* 100 00)* 100 00)* 100 0)* 100

Total non-current (1160042/1 (1276879/1 (1455692/1 (1812644/1 (2387474/11

assets 160042)* 160042)* 160042)* 160042)* 60042)* 100
100 100 100 100

Current assets

Inventories (1346988/1 (1190049/1 (1308485/1 (1660913/1 (1513733/13

346988)* 346988)* 346988)* 346988)* 46988)* 100
100 100 100 100

Trade and other (472468/47 (499686/47 (659103/47 (832711/47 (939573/472

 34

receivables 2468)* 100 2468)* 100 2468)* 100 2468)* 100 468)* 100

Advances, deposits (153202/15 (147167/15 (178726/15 (217539/15 (236617/153

& prepayments 3202)* 100 3202)* 100 3202)* 100 3202)* 100 202)* 100

Term deposits (19155/191 (69155/191 (250000/19 (400000/19 (800000/191

55)* 100 55)* 100 155)* 100 155)* 100 55)* 100

Cash and Equivalents (246207/24 (294885/24 (356039/24 (293875/24 (330156/246

6207)* 100 6207)* 100 6207)* 100 6207)* 100 207)* 100

Inter-company (26627/266 (90280/266 (67330/266 (125451/26 (128517/266

receivables 27)* 100 27)* 100 27)* 100 627)* 100 27)* 100

Total current assets (2264647/2 (2291222/2 (2826671/2 (3534230/2 (3951586/22

264647)* 264647)* 264647)* 264647)* 64647)* 100
100 100 100 100

Total Assets (3424689/3 (3568101/3 (4282363/3 (5346874/3 (6339060/34

424689)* 424689)* 424689)* 424689)* 24689)* 100
100 100 100 100

Equity and Liabilities

Share capital (231890/23 (231890/23 (231889/23 (231889/23 (231889/231

1890)* 100 1890)* 100 1890)* 100 1890)* 100 890)* 100

Share premium (115068/11 (115068/11 (115068/11 (115068/11 (115068/115

5068)* 100 5068)* 100 5068)* 100 5068)* 100 068)* 100

General reserve (10000/100 (10000/100 (10000/100 (10000/100 (10000/1000

00)* 100 00)* 100 00)* 100 00)* 100 0)* 100

Retained earnings (1631268/1 (1966657/1 (2410195/1 (2997648/1 (3681556/16

631268)* 631268)* 631268)* 631268)* 31268)* 100
 35

100 100 100 100

Equity attributable to (1988226/1 (2323615/1 (2767152/1 (3354605/1 (4038513/19

equity holders 988226)* 988226)* 988226)* 988226)* 88226)* 100
100 100 100 100

Non-current liabilities

Deferred tax (102821/10 (98374/102 (132934/10 (140851/10 (167599/102

liabilities 2821)* 100 821)* 100 2821)* 100 2821)* 100 821)* 100

Total Non-current (102821/10 (98374/102 (132934/10 (140851/10 (167599/102

liabilities 2821)* 100 821)* 100 2821)* 100 2821)* 100 821)* 100

Current Liabilities

Operational overdraft (317423/31 (33171/317 (67691/317 (102434/31 (1859/31742

7423)* 100 423)* 100 423)* 100 7423)* 100 3)* 100

Trade and other (758445/75 (848473/75 (1001498/7 (1426465/7 (1747146/75

payables 8445)* 100 8445)* 100 58445)* 100 58445)* 100 8445)* 100

Provision for royalty (188614/18 (168773/18 (124774/18 (142515/18 (166027/188

8614)* 100 8614)* 100 8614)* 100 8614)* 100 614)* 100

Provision for current (56684/566 (83490/566 (152838/56 (157170/56 (197886/566

tax 84)* 100 84)* 100 684)* 100 684)* 100 84)* 100

Provision for (6127/6127) (5172/6127) (28237/612 (15114/612 (11961/6127

employees * 100 * 100 7)* 100 7)* 100 )* 100
retirement gratuity

Unclaimed dividend (6196/6196) (6886/6196) (7092/6196) (7573/6196) (7922/6196)

local * 100 * 100 * 100 * 100 * 100

Liability for (153/153)* (147/153)* 147/153)* (147/153)* (147/153)*

 36

unclaimed IPO 100 100 100 100 100

application money

Total current (1333642/1 (1146112/1 (1382277/1 (1851418/1 (2132948/13

liablities 333642)* 333642)* 333642)* 333642)* 33642)* 100
100 100 100 100

Total liabilities (1436463/1 (1244486/1 (1515211/1 (1992269/1 (2300547/14

436463)* 436463)* 436463)* 436463)* 36463)* 100
100 100 100 100

Total equity and (3424689/3 (3568101/3 (4282363/3 (5346874/3 (6339060/34

liabilities 424689)* 424689)* 424689)* 424689)* 24689)* 100
100 100 100 100

Contingent liabilities (484099/48 (909966/48 (661551/48 (749439/48 (590961/484

4099)* 100 4099)* 100 4099)* 100 4099)* 100 099)*100

Horizontal Income Statement

2011 2012 2013 2014 2015

(%) (%) (%) (%) (%)

Sales (6321274/63 (7611213/63 (8796778/632 (10881046/6 (12267996/6

21274)* 100 21274)* 100 1274)* 100 321274)* 321274)*
100 100

Cost of sales (4192032/41 (5086852/41 (5481844/419 (6585744/41 (7012664/41

92032)* 100 92032)* 100 2032)* 100 92032)* 100 92032)* 100

Gross profit (2129242/21 (2524361/21 (3314934/212 (4295302/21 (5255332/21

 37

29242)* 100 29242)* 100 9242)* 100 29242)* 100 29242)* 100

Expenses

Selling, (1046280/10 (1282451/10 (1840747/104 (2535540/10 (2921141/10

Distribution & 46280)* 100 46280)* 100 6280)* 100 46280)* 100 46280)* 100
warehouse
expenses

Administrative (236286/236 (276422/236 (321653/2362 (404409/236 (479974/236

and general 286)* 100 286)* 100 86)* 100 286)* 100 286)* 100
expenses

Other operating (50197/5019 (62069/5019 (68598/50197 (80582/5019 (91995/5019

expenses 7)* 100 7)* 100 )* 100 7)* 100 7)* 100

Other operating (109340/109 (109379/109 (123279/1093 (168444/109 (132670/109

income 340)* 100 340)* 100 40)* 100 340)* 100 340)* 100

(905819/905 (1511563/90 (2107719/905 (2774349/90 (3258931/90

819)* 100 5819)* 100 819)* 100 5819)* 100 5819)* 100

Operating (1223423/12 (1012798/12 (1207215/122 (1520953/12 (1996401/12

income 23423)* 100 23423)* 100 3423)* 100 23423)* 100 23423)* 100

Finance cost (43661/4366 (17772/4366 (10805/43661 (4573/43661) (7884/43661

1)*100 1)* 100 )* 100 * 100 )* 100

Investment (27254/2725 (26254/2725 (31495/27254 (48343/2725 (48534/2725

income 4)* 100 4)* 100 )* 100 4)* 100 4)* 100

Net finance (16407/1640 (8482/16407) (20690/16407 (43770/1640 (40650/1640

income 7)* 100 * 100 )* 100 7)* 100 7)* 100

Other non- (5387/5387)* (1063/5387)* (606/5387)* (1789/5387)* (2088/5387)

operating (loss)/ 100 100 100 100 * 100
income
 38

Income before (894799/894 (1022343/89 (1228511/894 (1488774/89 (1933454/89

tax 799)* 100 4799)* 100 799)* 100 4799)* 100 4799)* 100

Current tax (170000/170 (274000/170 (340000/1700 (380000/170 (480000/170

expenses 000)* 100 000)* 100 00)* 100 000)* 100 000)* 100

Deferred tax (3636/3636)* (4447/3636)* (27572/3636) (11165/3636) (27499/3636

expenses 100 100 * 100 * 100 )* 100

(173636/173 (269553/173 (367572/1736 (391165/173 (507499/173

636)* 100 636)* 100 36)* 100 636)* 100 636)* 100

Net income (721163/721 (752790/721 (860939/7211 (1097609/72 (1425955/72

163)* 100 163)* 100 63)* 100 1163)* 100 1163)* 100

Basic earnings (31.1/31.1)* (32.46/31.1)* (37.13/31.1)* (47.33/31.1)* (61.49/31.1)

per share 100 100 100 100 *100

Ratio Analysis

Liquidity Ratio

Ratio Formula BERGER BEXIMCO

15
2011 2012 2013 2014 2015

Current Current 2264647 2291222/ 2826671/ 3534230/ 39515 744313710

Ratio Asset/ /133364 1146112 1382277 1851418 86/21 94/2241584
current 2 32948 8356
liabilities
 39

Asset Management Ratio

Ratio Formula BERGER BEXIMCO

15
2011 2012 2013 2014 2015

Total Sales/ 6321274 7611213/ 8796778/ 1088104 12267 344901022

Asset Total /342468 3568101 4282363 6/53468 996/63 47/1168349
Turnover Asset 9 74 39060 45099
Ratio

Fixed Sales/ 6321274 7611213/ 8796778/ 1088104 12267 344901022

Asset Fixed /116004 1276879 1416392 6/18126 996/23 47/4240358
Turnover Asset 2 44 87474 3055
Ratio

Average Accounts 472468/ 499686/( 659103/( 832711/ 93957 273982241

Collection Receivabl (632127 7611213/ 8796778/ (108810 3/(122 99/(344901
Period e/(Sales/3 4/360) 360) 360) 46/360) 67996/ 02247/360)
60) 360)

Average Accounts 758445/ 848473/( 1001498/ 1426465 17471 805255368

Payment Payable/( (419203 5086852/ (5481844 /(65857 46/(70 4/(2251725
Period COGS/36 2/360) 360) /360) 44/360) 12664/ 6154/360)
0) 360)
 40

Debt Management Ratio

Ratio Formula BERGER BEXIMCO

15
2011 2012 2013 2014 2015

Debt to (Total 1436463 1244486/ (1515211 (199226 (23005 (575176143

Asset Debt/Total /342468 3568101 /4282363 9/53468 47/633 50/1168349
Ratio Asset)*10 9 )*100 74)*100 9060)* 54099
0 100

Capital Total 1436463 {124448 1515211/ 1992269 23005 575176143

Structure Debt/ /(19882 6/(23236 (2767152 /(33546 47/(40 50/(593173
(Total 26+1436 15+1244 +151521 05+1992 38513 39750+575
Equity+ 463) 486)}*10 1)*100 269) +2300 17614350)
Total 0 547)
Debt)*100

Profitability Ratio

Ratio Formula BERGER BEXIMCO

15
2011 2012 2013 2014 2015

Net (721163 (752790/ (860939/ (109760 (14259 (108168100

Profit (Net /632127 7611213) 8796778) 9/10881 95/122 8/34490102
Margin Profit/Sales 4)*100 *100 *100 046)*10 67996) 247)*100
 41

)*100 0 *100

Return (Net (721163 (752790/ (860939/ (109760 (14259 (108168100

on Profit/Total /198822 2323615) 2767152) 9/33546 95/403 8/59317339
Common Common 6)*100 *100 *100 05)*100 8513)* 750)*100
Equity Equity)*10 100
(ROE 0

Stock Market Ratio

Ratio Formula BERGER BEXIMCO

15
2011 2012 2013 2014 2015

Earnings Net profit 721163/ 752790/2 860939/2 1097609 14259 108168100

per after tax/ 23189 3191 3187 /23191 95/231 8/68030252
Share(EP Total 91 1
S) number of
common
share
outstandin
g