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Executive Summary

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:

Stock 484,200,145 483,346,039 854,106 0.18%


Trade Debtors 44,242,900 59,711,981 (25.91%)
Advance, Deposits & (15,469,081)
prepayments 128,644,738 100,749,301 (25.91%) 27.69%
Cash & Cash Equivalents 16,173,069 32,660,159 (50.48%)
27,895,437
Total Current Assets 673,260,852 676,467,480 (16,487,090) (0.47%)

Property, Plant & (3,206,628)


Equipment:

Property, Plant &


Equipment 234,925,685 265,240,679 (11.43%)
Investments (at cost) 15,000,000 15,280,000 (1.83%)
(30,314,994)
Total Property, Plant & (280,000)
Equipment 249,925,685 280,520,679 (10.91%)

Total Assets 923,186,537 956,988,159 (30,594,994) (3.53%)

Liabilities & Owners (33,801,622)


Equity
Current Liabilities:

Current Portion of Long-


Term Loan 21,709,923 50,102,521 (56.67%)
Short-Term Loan From
Bank(secured) 409,262,567 413,406,543 (28,392,598) (1.00%)
Liabilities For Goods 12,666,636 12,723,372 (0.45%)
Liabilities For Expense 8,618,255 7,339,692 (4,143,976) 17.42%
(56,736)
Liabilities For Others 1,278,563
Finance 31,244 15,850 97.12%
Interest Payable 364,776 817,653 (55.39%)
Workers Profit 15,394
Participation an Welfare (452,877)
Funds 4,937,086 3,534,006 39.70%
Income Tax Payable 9,692,931 6,519,324 48.68%
Unclaimed Dividend 2,090,922 1,810,717 1,403,080 15.47%
3,173,607
Total Current 280,205
Liabilities 469,374,340 496,269,678 (5.42%)

Long Term Liabilities (26,895,338)


Deferred Tax Liability 18,608,990 18,790,827 (0.97%)
Long-Term Debt 92,488,846 113,999,905 (18.87%)
(181,837)
Total Long Term (21,511,059)
Liabilities 111,097,836 132,790,732 (16.34%)

Shareholders Equity (21,692,896)


Share Capital (TK.5) 80,000,000 80,000,000 0%
Share Premium 40,000,000 40,000,000 0%
Reserve & Surplus 200,314,361 187,127,749 000 7.05%
Proposed Dividend 22,400,000 20,800,000 000 7.69%
13,186,612
Total Shareholders 1,600,000
Equity 342,714,361 327,927,745 4.51%

Total Liabilities & 14,786,612


Shareholders Equity
923,186,537 956,988,159 3.53%

33,801,622
VERTICAL ANALYSIS

30 June 2008 30 June 2007


Particulars Amount % Amount %

Assets

Current assets:

Stock 484,200,145 52.45% 483,346,039 50.51%


Trade debtors 44,242,900 4.79% 59,711,981 6.24%

Advance, deposits and


prepayments 128,644,738 13.94% 100,749,301 10.53%
Cash and cash
equipments 16,173,069 1.75% 32,660,159 3.41%

Total current asset 673,260,852 72.93% 676,467,480 70.69%

Property plant and


equipment:

Property, plant and


equipment 234,925,685 25.45% 265,240,679 27.72%
Investments ( at cost) 15,000,000 1.62% 15,280,000 1.59%

Total property, plant


and equipment 249,925,685 27.07% 280,520,679 29.31%

Total Assets 923,186,537 100.00% 956,988,159 100.00%

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

Deferred Tax Liabilities


Long-Term Debt 18,608,990 2.02% 18,790,827 1.96%
92,488,846 10.01% 113,999,905 11.91%

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

Share Capital (TK.5)


Share Premium 80,000,000 8.67% 80,000,000 8.36%
Reserve & Surplus 40,000,000 4.33% 40,000,000 4.18%
Proposed Dividend 200,314,361 21.70% 187,127,749 19.56%
22,400,000 2.43% 20,800,000 2.17%
Total Shareholders
Equity
342,714,361 37.13% 327,927,745 34.27%
Total Liabilities &
Shareholders Equity
923,186,537 100.00% 956,988,159 100.00%
NABISCO BUSCUIT
Bhaia Group Of Industries
Horizontal Analysis
Income Statement

Increase/(Decrease)
PARTICULARS 30 JUNE 2007 30 JUNE 2007
Amount %

Sales 985,454,208 925,498,835 59,955,373 6.48%


Less: Cost of Goods Sold (761,332,926) (715,867,802) (45,465,124) (6.35%)

Gross Profit 224,121,282 209,631,033 14,490,249 6.91%

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%)

Total operating expense (183,129,989) (175,185,751) (7,944,238) (4.53%)

Operating profit 40,991,293 34,445,282 6,546,011 19.00%

Less: contribution to
workers participation &
welfare fund (2,049,564) (1,722,264) (327,300) (19.00%)

Net profit before


taxation 38,941,729 32,723,018 6,218,711 19.00%
Less: provision for tax
current tax (3,173,607) (2,979,638) (193,969) (6.51%)
Deferred tax 181,837 (411,967) (230,130) 55.86%

Total provision for tax (2,991,770) (3,391,605) (399,835) (11.79%)

Total profit after


taxation 35,949,959 29,331,413 6,618,546 22.56%
NABISCO BUSCUIT
Bhaia Group Of Industries
BALANCE SHEET
AS AT 30 JUNE 2008

30 June 2008 30 June 2007


Particulars Amount % Amount %

Sales 985,454,208 100.00% 925,498,835 100.00%


Less: Cost of Goods
Sold (761,332,926) (77.26%) (715,867,802) (77.35%)

Gross Profit 224,121,282 22.74% 209,631,033 22.65%

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%)

Operating profit 40,991,293 4.16% 34,445,282 3.72%

Less: contribution to
workers participation
& welfare fund (2,049,564) (0.21%) (1,722,264) (0.19%)

Net profit before


taxation 38,941,729 3.95% 32,723,018 3.53%

Less: provision for tax


current tax (3,173,607) (0.32%) (2,979,638) (0.32%)
Deferred tax 181,837 0.02% (411,967) (0.04%)

Total provision for tax (2,991,770) (0.30%) (3,391,605) (0.36%)

Total profit after


taxation 35,949,959 3.65% 29,331,413 3.17%
TIBBOT SOAP
Horizontal Analysis
BALANCE SHEET
AS AT 30 JUNE 2008

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%

Total Current Assets 492,948,293 422,657,304 70,290,989 16.63%

Property, Plant &


Equipment:

Property, Plant &


Equipment (at cost) 138,046,233 141,230,308 (3,184,075) (2.25%)
Capital Work in Progress 45,160,282 1,962,527 43,197,755 2201.13%

Deferred Expense 23,786,916 34,029,086 (10,242,170) (30.10%)


Investment 65,470,628 65,470,628 000 0.00%

Total Property, Plant &


Equipment 272,464,059 242,692,549 29,771,510 12.27%

Total Assets 765,412,352 665,349,853 100,062,499 15.04%

Liabilities & Owners


Equity

Current Liabilities:

Loans 83,937,863 73,465,476 10,472,387 14.25%


Interest Payable 000 919,471 (919,471) (100.00%)
Creditors for Goods 92,190,262 87,049,603 5,140,659 5.91%
Creditors for Service 5,400,864 6,664,564 (1,263,700) (18.96%)
Accrued Expense 21,405,233 14,231,005 7,174,228 50.41%
Advance Against Sales 35,354,846 15,843,952 19,510,894 123.14%
Liabilities For Others
Finance 20,593,612 17,526,579 3,067,033 17.50%
Lease Finance Current
Portion 13,276,268 9,469,764 3,806,504 40.20%
Provision for Taxation 43,562,396 26,115,499 17,446,897 66.81%
Unclaimed Dividend 8,653,274 10,627,329 (1,974,055) (18.58%)

Total Current
Liabilities 324,374,618 261,913,242 62,461,376 23.85

Long Term Liabilities

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%

Total Long Term


Liabilities 118,386,185 107,051,116 11,335,069 10.59%

Total Liabilities 442,760,803 368,964,358 73,796,445 20.00%

Shareholders Equity

Share Capital (TK.5) 172,937,600 172,937,600 000 0.00%


Share Premium 95,626,050 95,626,050 000 0.00%
Retained Earnings 54,087,899 27,821,845 26,266,054 94.41%

Total Shareholders
Equity 322,651,549 296,385,495 26,266,054 8.86%

Total Liabilities &


Shareholders Equity 765,412,352 665,349,853 100,062,499 15.04%
Vertical analysis
BALANCE SHEET
30 June 2008 30 June 2007
Particulars Amount % Amount %

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%

Total Current Assets 492,948,293 64.40% 422,657,304 63.52%

Property, Plant &


Equipment:

Property, Plant &


Equipment (at cost) 138,046,233 18.04% 141,230,308 21.23%
Capital Work in
Progress 45,160,282 5.90% 1,962,527 0.29%
Deferred Expense 23,786,916 3.11% 34,029,086 5.11%
Investment 65,470,628 8.55% 65,470,628 9.85%

Total Property, Plant


& Equipment 272,464,059 35.60% 242,692,549 36.48%

Total Assets 765,412,352 100.00% 665,349,853 100.00%

Liabilities & Owners


Equity

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

Total Current 324,374,618 42.38% 261,913,242 39.36%


Liabilities

Long Term Liabilities

Long-Term Loan 33,688,476 4.40% 55,625,819 8.36%


(Secured)
Lease Finance Long- 58,386,887 7.63% 28,032,109 4.21%
Term 7,069,298 0.93% 7,120,394 1.07%
Deferred Tax Liability 19,241,524 2.51% 16,272,794 2.45%
Long-Term Debt

Total Long Term 118,386,185 15.47% 107,051,116 16.09%


Liabilities
442,760,803 57.85% 368,964,358 55.45%
Total Liabilities

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

Total Shareholders 322,651,549 42.15% 296,385,495 44.55%


Equity

Total Liabilities & 765,412,352 100.00% 665,349,853 100.00%


Shareholders Equity
TIBBOT SOAP
Income Statement
Horizontal Analysis

Increase/(Decrease)
PARTICULARS 30 JUNE 2008 30 JUNE 2007
Amount %

Sales 1,460,110,761 1,058,698,614 401,412,147 37.92%


Less: Cost of Goods Sold (1,172,379,583) (868,041,025) (304,338,558) (35.06%)

Gross Profit 287,731,178 190,657,589 97,073,589 50.92%

Less: Operating Expense


Administration Expense (54,637,366) (43,293,940) (11,343,417) (26.20%)
Selling Expense (152,652,576) (90,267,081) (62,385,495) (69.11%)
Financial Expense (28,880,513) (33,776,121) (4,895,608) (44.49%)

Total operating expense (236,170,455) (167,337,151) (68,833,304) (41.13%)

Operating profit 51,560,723 23,320,438 28,240,285 221.10%

Add: Non Operating


Income 14,258,518 23,031,025 (8,772507) (38.09%)

Less: contribution to
workers participation &
welfare fund (3,134,250) (2,207,213) (927,037) (42.00%)

Net profit/(Loss) before


taxation 62,684,991 44,144,250 18,540,741 42.00%
Less: provision for tax
current tax (17,446,897) (13,222,191) (4,224,706) (31.95%)
Deferred tax 51,096 1,650,944 (1,599,848) (96.91%)

Total provision for tax (17,395,801) (11,571,247) (5,824,554) 50.34%

Total profit/(Loss) after


taxation 45,289,190 32,573,003 12,716,187 39.04%
Income statement
Vertical analysis

30 June 2008 30 June 2007


Particulars Amount % Amount %

Sales 1,460,110,761 100.00% 1,058,698,614 100.00%


Less: Cost of Goods Sold (1,172,379,583) (80.29%) (868,041,025) (81.99%)

Gross Profit 287,731,178 19.71% 190,657,589 18.01%

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%)

Total operating expense (236,170,455) (16.17%) (167,337,151) (15.81%)

Operating profit 51,560,723 3.54% 23,320,438 2.20%

Add: Non Operating


Income 14,258,518 0.97% 23,031,025 2.18%

Less: contribution to
workers participation &
welfare fund (3,134,250) (0.20%) (2,207,213) (0.21%)

Net profit/(Loss) before


taxation 62,684,991 4.29% 44,144,250 4.17%
Less: provision for tax
current tax (17,446,897) (1.19%) (13,222,191) (1.25%)
Deferred tax 51,096 0.0034% 1,650,944 0.16%

Total provision for tax (17,395,801) (1.19%) (11,571,247) (1.09%)

Total profit/(Loss) after


taxation 45,289,190 3.10% 32,573,003 3.08%
NABISCO
Ratio Analysis:

Current Assets
1. Current Ratio =
Current Liabilities

673,260,852
=
469,374,340

= 1.43:1

Cash + Short-Term Investment + Account Receivable (Net)


2. Acid Test Ratio =
Current Liabilities

16,173,069 + 128,644,738 + 44,242,900


=
469,374,340

189,060,707
=
469,374,340

= 0.40:1

Net Credit Sales


3. Receivable Turnover =
Average Account Receivable

985,454,208
=
44,242,900 + 59,711,981
2

985,454,900
=
51,977,440.5
= 18.96 Times

Cost of Goods Sold


4. Inventory Turnover =
Average Inventory

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%

8. Return on Common Stockholders Equity

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

Market Price per Share of Stock


11. Price-Earnings =
Earnings per Share

100
=
$2.25

= 44.44

Cash Dividends
12. Payout Ratio =
Net Income

22,400,000
=
35,949,959

= 0.62:1

Income before Income Taxes & Interest Expense


13. Time Interest Earned =
Interest Expense

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

Cash + Short-Term Investment + Account Receivable (Net)


2. Acid Test Ratio =
Current Liabilities

57,878,355 + 237,955,932 + 17,788,091


=
324,374,618

313,622,378
=
324,374,618

= 0.97:1

Net Credit Sales


3. Receivable Turnover =
Average Account Receivable

1,460,110,761
=
17,788,091 + 13,624,565
2

985,454,900
=
51,977,440.5
= 92.96 Times

Cost of Goods Sold


4. Inventory Turnover =
Average Inventory

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%

8. Return on Common Stockholders Equity

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

Market Price per Share of Stock


11. Price-Earnings =
Earnings per Share

Cash Dividends
12. Payout Ratio =
Net Income
=

Income before Income Taxes & Interest Expense


13. Time Interest Earned =
Interest Expense

Total Debt
14. Total Equity =
Total Equity