Annual report of two companies

EXECUTIVE SUMMARY

A few comments on the organization and content of the report may be helpful to reader.

In doing so, I realize that some topics may be more important to some reader then to

other. For that reason, we have some advanced material appears in appendices. Our goal

is to help the reader who must compare financial position of these two companies.

First I focused on the essential element of this report. I 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.

IntroductionThis report is based on compare of two companies’ financial situation. It has been

prepared by me for the Financial Management Course (BBA-223).

This is based on two companies’ financial position which is helpful for the companies

and us to know the real situation.

Objective of ReportThis term paper is prepared under submitted as a major requirement of the Financial

Management Course. Financial Management provides the facts needed to make informed

economic as well as operational control.

NABISCO BUSCUITBhaia Group of Industries

BALANCE SHEETAS AT 30 JUNE 2007

PARTICULARS 30 JUNE 2007 30 JUNE 2006Increase/(Decrease)

Amount %

Assets

Current Assets:

inventoryTrade DebtorsAdvance, Deposits & prepaymentsCash & Cash Equivalents

Total Current Assets

Property, Plant & Equipment:

Property, Plant & EquipmentInvestments (at cost)

Total Property, Plant & Equipment

Total Assets

Liabilities & Owners’ Equity

Current Liabilities:

Current Portion of Long-Term LoanShort-Term Loan from Bank(secured)Liabilities for Goods

484,200,145 44,242,900

128,644,738 16,173,069

673,260,852

234,925,685 15,000,000

249,925,685

923,186,537

21,709,923

409,262,567 12,666,636

483,346,039 59,711,981

100,749,301 32,660,159

676,467,480

265,240,679 15,280,000

280,520,679

956,988,159

50,102,521

413,406,543 12,723,372

854,106

(15,469,081)

27,895,437(16,487,090)

(3,206,628)

(30,314,994) (280,000)

(30,594,994)

(33,801,622)

(28,392,598)

0.18%(25.91%)

27.69%(50.48%)

(0.47%)

(11.43%) (1.83%)

(10.91%)

(3.53%)

(56.67%)

(1.00%) (0.45%)

Liabilities for Expense

Liabilities for Others Finance Interest Payable Workers’ Profit Participation an Welfare Funds Income Tax Payable Unclaimed Dividend

Total Current Liabilities

Long Term Liabilities Deferred Tax Liability Long-Term Debt

Total Long Term Liabilities

Shareholders’ Equity Share Capital (TK.5)Share PremiumReserve & Surplus Proposed Dividend

Total Shareholders’ Equity

Total Liabilities & Shareholders’ Equity

8,618,255

31,244 364,776

4,937,086 9,692,931 2,090,922

469,374,340

18,608,990 92,488,846

111,097,836

80,000,000 40,000,000200,314,361 22,400,000

342,714,361

923,186,537

7,339,692

15,850 817,653

3,534,006 6,519,324 1,810,717

496,269,678

18,790,827113,999,905

132,790,732

80,000,000 40,000,000187,127,749 20,800,000

327,927,745

956,988,159

(4,143,976) (56,736) 1,278,563

15,394 (452,877)

1,403,080 3,173,607 280,205

(26,895,338)

(181,837)(21,511,059)

(21,692,896)

000 000 13,186,612 1,600,000

14,786,612

33,801,622

17.42%

97.12% (55.39%)

39.70%48.68%15.47%

(5.42%)

(0.97%)(18.87%)

(16.34%)

0% 0%7.05%7.69%

4.51%

3.53%

NABISCO BUSCUITBhaia Group of Industries

Income Statement


Amount %

SalesLess: Cost of Goods Sold

Gross Profit

Less: ExpenseAdministration & Selling Expense Financial Expense

Total operating expense

Operating profit

Less: contribution to worker’s participation & welfare fund

Net profit before taxation

Less: provision for tax current tax Deferred tax

Total provision for tax

Total profit after taxation

985,454,208(761,332,926)

224,121,282

(92,570,466)(90,559,523)

(183,129,989)

40,991,293

(2,049,564)

38,941,729

(3,173,607) 181,837

(2,991,770)

35,949,959

925,498,835(715,867,802)

209,631,033

(87,462,613)(87,723,138)

(175,185,751)

34,445,282

(1,722,264)

32,723,018

(2,979,638) (411,967)

(3,391,605)

29,331,413

59,955,373(45,465,124)

14,490,249

(5,107,853)(2,836,385)

(7,944,238)

6,546,011

(327,300)

6,218,711

(193,969)(230,130)

(399,835)

6,618,546

6.48% (6.35%)

6.91%

(5.84%)(3.23%)

(4.53%)

19.00%

(19.00%)

19.00%

(6.51%)55.86%

(11.79%)

22.56%

Olympic BiscuitsBALANCE SHEET

AS AT 30 JUNE 2007


Amount %

Assets

Current Assets:InventoriesSundry DebtorsAdvance, Deposits & prepaymentsCash & Cash Equivalents

Total Current Assets

Property, Plant & Equipment:

Property, Plant & Equipment (at cost)Capital Work in Progress

Deferred Expense Investment

Total Property, Plant & Equipment

Total Assets

Liabilities & Owners’ Equity

Current Liabilities:

LoansInterest Payable Creditors’ for Goods

179,325,915 17,788,091

237,955,932 57,878,355

492,948,293

138,046,233 45,160,282

23,786,91665,470,628

272,464,059

765,412,352

83,937,863 00092,190,262

194,869,092 13,624,565

180,007,188 34,156,459

422,657,304

141,230,308 1,962,527

34,029,08665,470,628

242,692,549

665,349,853

73,465,476 919,47187,049,603

(15,543,177) 4,163,526

57,948,74423,721,896

70,290,989

(3,184,075)43,197,755

(10,242,170) 000

29,771,510

100,062,499

10,472,387 (919,471) 5,140,659

(7.98%)30.56%

32.19%69.45%

16.63%

(2.25%)2201.13%

(30.10%)0.00%

12.27%

15.04%

14.25%(100.00%)5.91%

Creditors’ for ServiceAccrued ExpenseAdvance Against SalesLiabilities For Others Finance Lease Finance Current PortionProvision for TaxationUnclaimed Dividend

Total Current Liabilities

Long Term Liabilities

Long-Term Loan (Secured)Lease Finance Long-TermDeferred Tax Liability Long-Term Debt

Total Long Term Liabilities

Total Liabilities

Shareholders’ Equity

Share Capital (TK.5)Share PremiumRetained Earnings

Total Shareholders’ Equity

Total Liabilities & Shareholders’ Equity

5,400,86421,405,23335,354,846

20,593,612

13,276,26843,562,396 8,653,274

324,374,618

33,688,476

58,386,887 7,069,29819,241,524

118,386,185

442,760,803

172,937,600 95,626,050 54,087,899

322,651,549

765,412,352

6,664,56414,231,00515,843,952

17,526,579

9,469,76426,115,49910,627,329

261,913,242

55,625,819

28,032,109 7,120,39416,272,794

107,051,116

368,964,358

172,937,60095,626,05027,821,845

296,385,495

665,349,853

(1,263,700) 7,174,22819,510,894

3,067,033

3,806,50417,446,897 (1,974,055)

62,461,376

(21,937,343)

30,354,778 (51,096) 2,968,730

11,335,069

73,796,445

000 00026,266,054

26,266,054

100,062,499

(18.96%)50.41%123.14%

17.50%

40.20%66.81%(18.58%)

23.85

(39.44%)

108.29%(0.72)18.24%

10.59%

20.00%

0.00%0.00%94.41%

8.86%

15.04%

Olympic BiscuitsIncome Statement


Amount %

SalesLess: Cost of Goods Sold

Gross Profit

Less: Operating ExpenseAdministration Expense Selling Expense Financial Expense

Total operating expense

Operating profit

Add: Non Operating Income

Less: contribution to worker’s participation & welfare fund

Net profit/(Loss) before taxation

Less: provision for tax current tax Deferred tax

Total provision for tax

Total profit/(Loss) after taxation

1,460,110,761(1,172,379,583)

287,731,178

(54,637,366)(152,652,576) (28,880,513)

(236,170,455)

51,560,723

14,258,518

(3,134,250)

62,684,991

(17,446,897) 51,096

(17,395,801)

45,289,190

1,058,698,614 (868,041,025)

190,657,589

(43,293,940)(90,267,081)(33,776,121)

(167,337,151)

23,320,438

23,031,025

(2,207,213)

44,144,250

(13,222,191) 1,650,944

(11,571,247)

32,573,003

401,412,147(304,338,558)

97,073,589

(11,343,417)(62,385,495) (4,895,608)

(68,833,304)

28,240,285

(8,772507)

(927,037)

18,540,741

(4,224,706)(1,599,848)

(5,824,554)

12,716,187

37.92%(35.06%)

50.92%

(26.20%)(69.11%)(44.49%)

(41.13%)

221.10%

(38.09%)

(42.00%)

42.00%

(31.95%)(96.91%)

50.34%

39.04%

NABISCO BiscuitsRatio Analysis:30 June 2007

Current Assets1. Current Ratio = Current Liabilities

673,260,852 = 469,374,340

= 1.43:1

Current asset - Inventory2. Quick Ratio =

Current Liabilities

673260852-484,200,145 = 469,374,340

189,060,707=

469,374,340

= 0.40:1

Net Credit Sales3. Receivable Turnover =

Account Receivable

985,454,208=

44,242,900 = 22.27 Times

Cost of Goods Sold4. Inventory Turnover =

Inventory 761,332,926

= 484,200,145

= 1.57 Times

EBIT5. Profit Margin = *100

Net Sales

40,991,293 = *100 985,454,208

= 4.16%

Net Income 6. Return on Assets = *100

Net Assets

35,949,959 = *100

923,186,537

= 3.89%

7. Return on Common Stockholders’ Equity

Net Income = *100

Common Stockholders’ Equity

35,949,959 = *100 342,714,361

= 10.49%

Market Price per Share of Stock8. Price-Earnings =

Earnings per Share

100=

$2.25

= 44.44

Cash Dividends9. Payout Ratio =

Net Income

22,400,000 =

35,949,959

= 0.62:1

Profit after tax 10. Net Profit margin =

Sales

35,949,959=

985,454,208

= 3.65%

Total Debt

11. Total Equity = Total Equity

580,472,176 =

342,714,361

= 1.69:1

Olympic BiscuitsRatio Analysis30 June 2007


492,948,293 = 324,374,618

= 1.52:1

Current Asset - Inventory2. Quick Ratio =

Current Liabilities

492,948,293 - 179,325,915 = 324,374,618

313,622,378=

324,374,618

= 0.97:1

Net Credit Sales

3. Receivable Turnover = Account Receivable

1,460,110,761=

17,788,091

= 82.08 Times


Average Inventory

1,172,379,583 =

179,325,915

= 6.54 Times

Net Income5. Profit Margin = *100

Net Sales

45,289,190 = *100 1,460,110,761

= 3.10%


Total Assets

45,289,190 = *100

765,412,352

= 5.92%


Net Income = *100


45,289,190 = *100 322,651,549

= 14.04%

Total Debt8. Debt to Total Asset Ratio = *100

Total Assets

442,760,803= *100

765,412,352

= 57.85%

NABISCO BiscuitsRatio Analysis:30 June 2006


676,467,480 = 496,269,678

= 1.36:1

Current asset- Inventory2. Quick Ratio =

Current Liabilities

676,467,480-483,346,039 = 496,269,678

193,121,441=

469,374,340

= 0.39:1


Account Receivable

925,498,835=

59,711,981

= 15.50 Times


Average Inventory

715,867,802 =

483,346,039

= 1.48 Times

EBIT5. Profit Margin = *100

Net Sales

34,445,282 = *100 925,498,835

= 3.72%


Total Assets

29,331,413 = *100

956,988,159

= 3.82%


Net Income = *100


29,331,413 = *100 327,927,745

= 8.95%

Market Price per Share of Stock8. Price-Earnings =

Earnings per Share

100=

$2.25

= 44.44

Cash Dividends9. Payout Ratio =

Net Income

20,800,000 =

29,331,413

= 0.71:1

Profit after tax 10. Net Profit Margin =

Sales

29,331,413

= 925,498,835

= 3.17%

Total Debt11. Total Equity = Total Equity

602,060,610 =

327,927,745

= 1.84:1

Olympic BiscuitsRatio Analysis30 June 2006


422,657,304 = 261,913,242

= 1.61:1

Current Asset - Inventory2. Quick Ratio =

Current Liabilities

422,657,304 – 194,869,092 = 261,913,242

1,058,698,614 =

261,913,242

= 0.87:1


Account Receivable

1,058,698,614=

13,624,565

= 77.71 Times

Cost of Goods Sold

4. Inventory Turnover = Inventory

868,041,025 =

194,869,092

= 4.45 Times

Net Income5. Profit Margin = *100

Net Sales

32,573,003 = *100 1,058,698,614

= 3.08%


Total Assets

32,573,003 = *100

665,349,853

= 4.90%


Net Income = *100


32,573,003 = *100 296,385,495

= 10.99%

Total Debt8. Debt to Total Asset Ratio = *100

Total Assets

368,964,358= *100

665,349,853

= 55.45%

Current Ratio

Current Ratio Nabisco Biscuit Olympic Biscuits

2007 1.43:1 1.52:1

2006 1.36:1 1.61:1

Quick Ratio

Quick Ratio Nabisco Biscuit Olympic Biscuit

2007 0.40:1 0.97:1

2006 0.39:1 0.87:1

Receivable Turnover

Receivable Turnover Nabisco Biscuit Olympic Biscuits

2007 22.27 82.08

2006 15.50 4.45

Inventory Turnover

Inventory Turnover Nabisco Biscuit Olympic Biscuits

2007 1.57 6.54

2006 1.48 4.45

Profit Margin

Profit Margin Nabisco Biscuit Olympic Biscuits

2007 4.16 3.10

2006 3.72 3.08

Return on Assets

Return on Assets Nabisco Biscuit Olympic Biscuits

2007 3.89 5.92

2006 3.82 4.90

Return on Common Stockholders’ Equity

Return on Common Stockholders’ Equity

Nabisco Biscuit Olympic Biscuits

2007 10.49 14.04

2006 8.95 10.99

Business

Annual report of two companies