Presentationon

Financial Statement Analysis

Presented by

Aklas Khan ChowdhuryID: 801413020

Course code EIB #505MBA (Evening)

Session : Summer 14

Particutalars2012-2013

Taka2011-2012

TakaGross Turover 20,742,764,372 8,592,856,236 Less: Value Added Tax 2,783,256,876 2,538,430,993 Net Turnover 7,959,507,496 6,054,425,243 Cost of Goods Sold (10,223,478,073) (9,167,253,620) Gross Profit 7,736,029,423 6,887,171,623 Operating Expenses (3,883,200,849) (3,566,024,910)Profit form Opeartions 3,852,828,574 3,321,146,713 Other Income 52,289,241 856,739,329 Profit Before WPPE 4,705,117,815 4,177,886,042 Allocation for WPPF (24,052,372) (198,946,954) Profit Before Tax 4,481,065,443 3,978,939,088 Provision for Income Tax (1,067,770,353) (958,906,349) Provision of Deffered Income Tax (71,852,307) (122,322,098) Profit After Tax for the Year 3,341,442,783 2,897,710,641 Other Comprehensive Income:Gain/Loss of Marketable Securities (Unrealized) (101,475,954) (139,986,324) Total Coprehensive Income for the Year 3,239,966,829 2,757,724,317 Earnigs Par Share (EPS) 9.01 7.82 Number of Share Used to Compute EPS 70,768,664 70,768,664

SQUARE PHARMACUTICALS LTD.STATEMENT OF COMPREHENSIEVE INCOME

FOR THE YEAR ENDED 31 MARCH 2013

Particutalars2012-2013

Taka2011-2012

TakaASSETS

Non-Current Assets 17,450,947,962 14,708,277,754

Property, Plant and Equipment Carrying Value 9,322,186,497 8,767,827,062

Capital Work in Progress 3,718,326,254 1,274,390,572

Investment Long Term (at Cost) 3,821,121,331 3,971,022,723

Investment in Marketable Securities (Fair Value) 589,313,880 95,037,397

Current Assets 5,996,697,544 6,745,507,008

Inventories 2,503,683,240 2,687,818,472

Trade Debtors 800,974,912 808,311,714

Advances, Deposits and Prepayments 650,380,369 77,156,445

Short Term Loan 1,109,251,152 2,085,300,110

Cash & Cash Equivalants 932,407,871 86,920,267

TOTAL ASSETS 23,447,645,506 21,453,784,762

SQUARE PHARMACUTICALS LTD.STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2013

Particutalars2012-2013

Taka2011-2012

TakaSHAREHOLDER'S EQUITY AND LIABILITIES

Shareholder's Equity: 18,844,926,184 16,566,884,255 Share Capital 3,707,686,640 2,648,347,600 Share Premium 2,035,645,000 2,035,465,000

General Reserve 105,878,200 405,878,200

Gain on Marketable Securities (Unrealized) 297,945,485 399,421,439

Retain Earnings 12,697,770,859 11,077,772,016

Non Current Liabilities 810,461,067 933,965,662

Long Term Loans- Securied 313,421,158 508,778,060

Deferred Tax Liability 497,039,909 425,187,602

Current Liabilities 3,792,438,255 4,252,934,845 Short Term Bank Loans 1,112,694,131 2,016,551,125

Long Term Loans- Current Position 511,504,034 477,141,480

Trade Creditors 1,086,097,881 875,431,555

Liabilities for Expenses 109,604,834 95,361,435

Liabilities for Other Finncee 972,537,375 788,449,250

TOTAL SHAREHOLDER'S EQUITY AND LIABILITIES 23,447,825,506 21,753,784,762

SQUARE PHARMACUTICALS LTD.STATEMENT OF FINANCIAL POSITION (CONT’D

AS AT 31 MARCH 2013

Horizontal analysis is a technique for evaluating a series of

financial statement data over a period of time also determine

the increase or decrease that has taken place.

Vertical analysis is commonly applied to the balance sheet

and income Statement

Ratio analysis express the relationship among selected items

of financial statement data

Financial Statement Analysis

Horizontal Analyses.

Vertical Analysis

Ration Analysis

Horizontal Analysis of Balance Sheets of Square Pharmaceuticals Ltd. are presented below (using 2011-2012 as a base):

Particulars2012-2013

Taka2011-2012

TakaIncerse

(Decrease)Parcenteage

Change

Current Assets 5996697544 6745507008 (748809464) -11.10%

Non-Current Assets 17450947962 14708277754 2742670208 18.65%

Total Asset 23447645506 21453784762 1993860744 9.29%

Current Liabilities 3792438255 4252934845 (460496590) -10.83%

Non Current Liabilities 810461067 933965662 (123504595) -13.22%

Shareholder's Equity: 18844926184 16566884255 2278041929 13.75%

Total Liabilities and Equity 23447825506 21753784762 1694040744 7.79%

Horizontal Analysis

Source: Annual Report 11-12, 12-13

Vertical Analysis of Income Statement of Square Pharmaceuticals Ltd. in columnar from for both years:

Vertical Analysis

2012-2013 2011-2012

Amount (Tk.) Percent Amount (Tk.) Parcent

Net Turnover (Sales) 17959507496 100.0% 16054425243 100.0%

Cost of Goods Sold 10223478073 56.9% 9167253620 57.1%

Gross Profit 7736029423 43.1% 6887171623 42.9%

Operating Expenses 3883200849 21.6% 3566024910 22.2%

Net Profit 3341442783 18.6% 2897710641 18.0%

Source: Annual Report 11-12, 12-13

Vertical Analysis of Income Statement of Square Pharmaceuticals Ltd. in columnar from for both years:

Ratio Analysis

2012-2013 2011-2012

Amount (Tk.) Percent Amount (Tk.) Parcent

Net Turnover (Sales) 17959507496 100.0% 16054425243 100.0%

Cost of Goods Sold 10223478073 56.9% 9167253620 57.1%

Gross Profit 7736029423 43.1% 6887171623 42.9%

Operating Expenses 3883200849 21.6% 3566024910 22.2%

Net Profit 3341442783 18.6% 2897710641 18.0%

Source: Annual Report 11-12, 12-13

Ratio Analysis

Liquidity Profitability Solvency

Current ratio

Acid test ratio

Inventory Turnover

•EPS

•Profit Margin

•Debt to total asset Ratio

Ratio Analysis (Liquidity)

Current Ratio

Current

Ratio

Current Asset/ Current Liabilities

2012-13 2011-12 2010-11

1.58 : 1 1.59 : 1 1.50 : 1

Tk. 5996697544/3792438255 Tk.6745507008/4252934845 7022213840/4668189426

1.45

1.5

1.55

1.6

2012-132011-12

2010-11

Current Ratio

Source: Annual Report 11-12, 12-13

Ratio Analysis (Liquidity)

Acid Test Ratio

Current

Ratio

Quick Asset/ Current Liabilities

2012-13 2011-12 2010-11

0.75 : 1 0.82 : 1 0.85 : 1

Tk.2842633935/3792438255 Tk. 3480532091/4252934845 3956534432/4668189426

0.7

0.8

0.9

2012-132011-12

2010-11

Current Ratio

Source: Annual Report 11-12, 12-13

Ratio Analysis (Liquidity)

Inventory Turnover

Current

Ratio

Cost of Goods Sold/ Average Inventory

2012-13 2011-12 2010-11

3.94 Times =92.67 Days 3.51 times = 104.11 Days 3.24 times = 112.50Day

Tk. 10223478073/2595750856 Tk. 9167253620/2614753401 Tk.7703661010/2374383206

Source: Annual Report 11-12, 12-13

0

1

2

3

4

5

2012-13 2011-12 2010-11

Inventry Turnover

Inventry Turnover

Ratio Analysis (Profitability)

Current

Ratio

Net Income / Net Sales

2012-13 2011-12 2010-11

18.6% 18.0% 18.8%

Tk. 3341442783/17959507496 Tk.2897710641/16054425243 Tk.2532054550/13471424469

Source: Annual Report 11-12, 12-13

Profit Margin

17.5

18

18.5

19

2012-13 2011-12 2010-11

Profit Margin

Profit Margin

Ratio Analysis (Profitability)

EPS 2012-13 2011-12 2010-11

9.01 7.82 6.83

Source: Annual Report 11-12, 12-13

0

2

4

6

8

10

2012-13 2011-12 2010-11

EPS

EPS

EPS (Earnings Per Share

Ratio Analysis (Solvency)

Source: Annual Report 11-12, 12-13

Debt to total Assets Ratio

Debt to

total Asset

Ratio

Total Debt / Total Asset

2013 2012 2011

16.17% 19.82% 24.01%Tk.3792438255/23447645506 Tk.425293484521453784762 Tk.4668189426/19444409654

Debt to Total…0

10

20

30

Debt to Total Asset Ratio

Debt to Total AssetRatio