An assignment On Corporate reportingCourse code 7101

Prepared forTanzina Haque FCMAAssociate professor Department of Accounting & Information Systems University of Dhaka

Course Code: 7102Course Name: corporate reporting

Prepared by: Sharif Mohammad ZihadID 17032, serial 16Section ADepartment of Accounting &information SystemsUniversity of Dhaka

Date of submission, September 17, 2015

Letter of TransmittalSeptember 17, 2015

ToTanzina Haque, FCMAAssociate professorDepartment of Accounting & Information Systems University of Dhaka

Subject: Submission of report.

Dear MaamI am very much grateful to you for presenting herewith the report, as a part of fulfillment of the completion of corporate reporting course. It is really an enormous prospect for me to congregate information and grasp the subject matter in an appropriate way. I have tried my best to fulfill the requirements of this report. I am not anticipating that my analysis will assist you to get a complete knowledge of the selected companies rather a snapshot of the same. But you will find this report praiseworthy as I have put my best effort and labor on it.

I am highly obliged to you for your valuable guidance for accomplishing this report. I shall be pleased to answer any sort of query if you think necessary.

Yours obediently,

Sharif Mohammad Zihad ID 17032 Serial 16Section ADepartment of Accounting & information systemsUniversity of Dhaka

Executive summary

For the purpose of the accomplishing the report I have chosen the textile industry as the data necessary to accomplishment of the report was accessible to me. As per the instruction I have chosen the AL HAJ textile, ASHRAF textile and the BEXIMCO textile and my analysis will shade focus on the year 2009, 2010,2011, 2012. Taking decision on the financial numbers published on the statutory financial report may not be sufficient but we know that the report is accompanied by some inherent limitations so for the assignment purpose our concentration will be on the published annual report. Selecting from a set of portfolio requires a well knowledge and informed decision making capability as a financial instructor or an analyst I will concentrate on only giving a scrupulous indication.

ContentsOverview6Objectives of the report6Main objective6Methodology7Design7Sample selection method7Time horizon7The schedule of my activity regarding the report7Information source8Analytical tools to be used8Limitations of the report9A brief synopsis of the company information10The analysis part10Ratio analysis10Common size analysis12Trend, scenario, cross sectional analysis12The findings of the analysis13The reasons why I select a particular set of the portfolio and the justifications for the selection13End note14

Overview The report is accomplished from the part of a financial analyst based on the historical information of the AL HAJ textile, ASHRAF textile and the BEXIMCO textile and my analysis will shade focus on the year 2009, 2010, 2011, and 2012. Providing analysis requires a lot of calculation and a number of considerations beyond the companys financial numbers. We generally use the ratios for the purpose of the evaluation of the financial condition and the evaluation of the financial performance, these things are important for giving some indication to the financial factors though the information of these are usually in historical in nature they are useful for most of the cases.

Objectives of the reportMain objectiveMain objective of this report is to fulfill the requirements of course requirement. Besides fulfilling the course requirements, this report intends to cover a snap shot of corporate performance of the selected companies.Other objectives To have an over view of the company; To Apply Theoretical knowledge; To know how the selected company operates; To know what are important for the evaluation of the financial situation; To know mode of application of the theoretical knowledge; To know reporting and compliance status of the selected company; To give suggestion to the investor; To make an analysis of the financial numbers;

MethodologyMethodology implies more than simply the methods you intend to use to collect data. It is often necessary to include a consideration of the concepts and theories which underlie the methods.There are four main aspects of the research methodology: design, sampling, data collection, the data analysis. If inappropriate methodology is used, or if appropriate methodology is used poorly, the results of a study could be misleading. Design Research design specifies what group(s) for which data will be collected, to which group(s) and when the intervention will occur, and when the data will collected from each group. The strength of a design, and the possible biases inherent in a design, depend on the type of questions being addressed in the research.

Sample selection methodSometimes a study involves the entire population of interest, but more often it involves only a small portion of the students, employees, families, schools, communities, or other units of analysis. Sampling serves three purposes: It reduces the costs and time required to do the research; It often improves the quality of information by allowing more intensive data collection than would otherwise be possible; and, it reduces the burden on respondentsFor this report I mainly designed my sample based on my opportunity of access to the data to be used in the report in other word the sampling process can be told as convenient Sampling.Time horizonMy report cavers 4 year data of the AL HAJ textile, ASHRAF textile and the BEXIMCO textile and my analysis will shade focus on the year 2009, 2010,2011, 2012.

The schedule of my activity regarding the reportData collection is the process of gathering and measuring information on variables of interest, in an established systematic fashion that enables one to answer stated research question hypotheses, and evaluate outcomes.Day 1-3Day3-6Day3-10Day 11-15Day 15-20Day20-25

Collection Of Data

Compiling & Analysis Of Data

Submission Of Final Report

Information sourceDifferent types of questions require different sources of information. Information sources may be observations, people, speeches, documents, pictures, organizations, websites, etc. They may be primary sources, secondary sources, and tertiary sources and so on.For the purpose of the report I mainly depended on the data that is available in the financial statements of the selected company. The financial statements were collected from the DSE and the WWW, and the websites of the company.

Analytical tools to be usedAn analytical technique (analytical method) is a procedure or a method for the analysis of some problem, status or a fact. Analytical techniques are usually time-limited and task-limited. They are used once to solve a specific issue. Opposed to management methods that affect management of the organization in a longer term.In practice there are used a lot of quite simple analytical techniques that managers and analysts use during normal work. Often without naming it somehow. For such techniques, it is often enough just a system of paper-pencil, or general office equipment. They are based primarily on the experience of the person who uses them. There are also a number of specialized analytical techniques, which are overwhelmingly based on some mathematical model or which require certain equipment or tools. I will use both a mix of the qualitative and the quantitative tool but mu focus will be on the quantitative technique.

Limitations of the report Almost everything is subject to limitations so do my report. Time was too short for the accomplishment of the report. The quality of the report was not too much rich. The authority did not disclose some sensitive information for keeping the organization confidential necessary for the analysis. In their website the banks provide barely some information necessary for the execution of the project. Obviously the lack of the analyzing tool.

A brief synopsis of the company informationNameAnnual report Paid-UpTotal AssetsNet SalesGross ProfitNet profitCFFOA

Alhaj textile20096992751.00407889227.00108606245.71-72690707.51-11949252.41233165.32

Alhaj textile20107692026.00388700270.003279606.12-17721835.28-17563863.064943989.41

Alhaj textile20117692026.00336739257.00151395747.6031647412.3632406741.4692484102.73

Alhaj textile20129230431.00343859593.50335775380.2213232493.7015336272.0521251098.14

Ashraf200910500000.00136915132.001000000.00-74540992.00-93443876.00-62952272.00

Ashraf201010500000.0086946332.001140000.00-19733743.00560969274.00-257292.61

Ashraf201110500000.0064572252.001400125.00-18673068.00-3274706.00-20806.53

Ashraf201210500000.0069573251.001200542.0016782.001245.00147.32

Beximco200995500000.005508282.003882244.00533374.00260634.00408486972.00

Beximco201095500000.006605934.004445402.00886759.00564769.00-249387547.00

Beximco2011974059930.007225737.005247749.001070758.006201 78144555841 4

Beximco20121168871920.0061 531 22 5431 438980853.00581038.00585057867.00

The analysis part Ratio analysisRatio analysis is a useful management tool that will improve your understanding of financial results and trends over time, and provide key indicators of organizational performance. Managers will use ratio analysis to pinpoint strengths and weaknesses from which strategies and initiatives can be formed. Funders may use ratio analysis to measure your results against other organizations or make judgments concerning management effectiveness and mission impact.Nameannual reportRoaprofit marginGp marginAsset turnoverRoe

Alhaj textile2009-0.029295-0.11002-0.669310.266264-1.70881

Alhaj textile2010-0.045186-5.35548-5.403650.008437-2.28339

Alhaj textile20110.0962370.2140530.2090380.4495934.213031

Alhaj textile20120.04460.0456740.0394090.976491.66149

The above calculated ratio gives all perspective that the company is to some extent unpredictable in nature as the trend in the ratio does not maintain any trend to the Both ROA and the profit margin and the GP margin as well as the ROE which indicate the nature of the company as an unpredictable one which cause the company a not to be a good one to invest.

Nameannual reportRoaprofit marginGp marginasset turnoverroe

Ashraf2009-0.68249-93.4439-74.5410.007304-8.89942

Ashraf20106.451903492.0783-17.31030.01311253.42565

Ashraf2011-0.05071-2.33887-13.33670.021683-0.31188

Ashraf20121.79-050.0010370.0139790.0172560.000119

The company is also performing better than the previous one which is a good sign the main problem is that the company calculated ratio is not giving a smooth indication of increasing or the decreasing of the ratio. That is the trend is not in the favor of the analyst which is causing a problem for the analyst. The situation is leaving the company more vulnerable in terms of the forecasting the future return.

Nameannual reportRoaprofit marginGp marginasset turnoverroe

Beximco20090.0473170.0671350.1373880.7048010.002729

Beximco20100.0854940.1270460.1994780.6729410.005914

Beximco20110.0858290.118180.2040410.7262580.000637

Beximco20120.094430.1069770.1805880.8827130.000497

The company seems the better of the previous two that is the company is performing in a more predictable in nature year on year the companys ratio in terms of the ROA, ROE, profit margin and gross profit margin is increasing in a smooth way that is the company is less vulnerable. As the company apparently seems a good choice for the investor.

Common size analysisDEFINITION of 'Common Size Financial Statement' a company financial statement that displays all items as percentages of a common base figure. This type of financial statement allows for easy analysis between companies or between time periods of a company.

Trend, scenario, cross sectional analysisTrend Analysis' an aspect of technical analysis that tries to predict the future movement of a stock based on past data. Trend analysis is based on the idea that what has happened in the past gives traders an idea of what will happen in the future.Nameannual reportTotal AssetsT/T-1Net SalesT/T-1Gross ProfitT/T-1net profitT/T-1

Alhaj textile200940788922711086062461-726907081-119492521

Alhaj textile20103887002700.95295553279606.10.0301972-177218350.2437978-175638631.4698713

Alhaj textile20113367392570.866321115139574846.16278431647412-1.785786432406741-1.8450805

Alhaj textile20123438595941.0211453357753802.2178653132324940.4181225153362720.4732433

0000

Ashraf2009136915132110000001-745409921-934438761

Ashraf2010869463320.635038111400001.14-197337430.2647368560969274-6.0032749

Ashraf2011645722520.742667914001251.2281798-186730680.9462507-3274706-0.0058376

Ashraf2012695732511.077448112005420.857453416782-0.00089871245-0.0003802

0000

Beximco2009550828213882244153337412606341

Beximco201066059341.19927344454021.14505998867591.66254645647692.1669045

Beximco201172257371.093825252477491.180489210707581.20749616201781.0981091

Beximco201261531220.851556354314381.03500349808530.91603615810380.9368891

'Scenario Analysis' The process of estimating the expected value of a portfolio after a given period of time, assuming specific changes in the values of the portfolio's securities or key factors that would affect security values, such as changes in the interest rate. Cross-Sectional Ratio Analysis is method of analysis that compares a firm's ratios with some chosen industry benchmark. The benchmark usually chosen is the average ratio value for all firms in an industry for the time period under study.For the purpose of the report the above stated two types of analysis is not suitable and the data required is not sufficient.

The findings of the analysisAfter the end of the analysis with the financial number of the selected three it is found that the Beximco textile is the best of the three which is providing the better profit margin and performing in a predictable way that is in one word the company is best one in the portfolio as per my calculation using the number published in the financial statements. Form the selected company the Beximco textile is in a distinct position in terms of investing in it.

The reasons why I select a particular set of the portfolio and the justifications for the selectionMy suggestion to the investor is to invest in the Beximco Textile as the ROA, The ROE the net profit margin and the gross profit margin is better than the other two and in relation to the other financial indicators that is the asset and the capital is also greater than the other two which is casing the company a more stable one. As an analyst these things is making the company a better one to be investing.

End noteA number of factors is to be taken in to account at the time of the financial analysis and the evaluation of the financial position and performance of any company. Evaluating the strength and the opportunity is the precondition of success of the company financial statement forecast. A number of things to be taken into account at the time of the evaluation and taking the investment decision. Contemplating on that issue will decide whether the investor taking decision is going to be better off or going to lose the invested money.

References 1. DiPiazza, S. and Eccles, R. (2002). Building public trust. New York: John Wiley & Sons.2. Brockett, A. and Rezaee, Z. (2012). Corporate sustainability. Hoboken, N.J.: Wiley.3. Hawkins, D. (1977). Corporate financial reporting. Homewood, Ill.: R.D. Irwin.4. Villiers, C. (2006). Corporate reporting and company law. Cambridge, UK: Cambridge University Press.5. Brownlee, E., Ferris, K. and Haskins, M. (2001). Corporate financial reporting. Boston, Mass.: Irwin/McGraw-Hill.