Welcome To Our Presentation

TOPIC

Financial Performance Analysis

OF

GROUP MEMBERS:

Name IDArup Mitra 081200132Mahmudul Hasan 081200197Faisal Ahmed 081200039Jannatul Ferdous 101200015

Introduction

• Kohinoor Chemical company limited (KCCL) was a fully government owned industry.

• It was transformed into a public limited company under companies Act 1913 .

• The government of the people republic of Bangladesh has vested the company’s 51% shares to Bangladesh Chemical Industries Corporation.

Purpose of the report

As a part of course FIN-201, we had the opportunity to prepare a report on financial performance analysis, so we decided to do our report analysis on Kohinoor chemical.

The reason for choosing this topic is, we would like to compare the five years financial performance of the organization.

Methodology of the report

We have analyzed the Kohinoor Chemical Ltd’s annual report also took helps from Kohinoor Ltd’s Brochures, handouts and also from many daily newspaper.

We have visited company’s websites & also some text.

ANALYSIS

Analysis

One of the first concerns of most financial analysis is liquidity. There are two commonly used liquidity ratios.

1. Current ratio;2. Quick or acid test

ratio.

By this graph we have seen that the current ratio is decreasing slightly year by year. The ratio is highest in 2004 & after that ratio rate is average in 2006-2007.

In this graph in 2004 ratio is highest & after that 2005, 2006 & 2007 it has decreased gradually. In 2008 ratio has again increases.

The inventory is higher in 2005 than 2004. 2006 it has decreased again; increase 2007 dramatically & after that in 2008 go back to a decreasing rate.

The DSO ratio rate has decreased gradually from 2004-2006 & after that 2007 & 2008 the ratio rates are average.

The fixed asset turnover of Kohinoor chemical ltd. has improved steadily in the above graph from 2004-2008.

The ratios of total asset turnover of Kohinoor chemical ltd. is average in 2005 & 2006 after that it has increased slightly in 2007 & stay the same position in 2008.

The debt ratio rate provided by creditors has increased from 2004-2008 progressively.

The interest cost of Kohinoor chemical Ltd. is highest in 2004 but unexpectedly it has fall over in 2005 & 2006 & 2007 it is average & 2008 it has slightly decreased.

The profit margin of Kohinoor chemical has decreased slowly but surely from 2004-2007 & after that significantly it has rise up in 2008.

The rising rate of basic earning power has improved steadily from 2004-2007 but in 2008 it has changed noticeably.

Return on total assets has changed in a same way from 2004-2007 but in 2008 it has suddenly rise up in a very high portion.

We can see from the graph an average change from 2004-2007 & after there is a sudden change in a positive way in 2008.

Conclusion

The specialty lies with TIBET is the fact that it enjoys an unchanged brand loyalty by the huge number of rural people and with expansion and extension of localities the market has also proportionately increased retaining the same degree of brand loyalty to TIBET.