Professional Documents
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ACI Formulations Limited
ACI Formulations Limited
ACI Formulations Limited
Analysis.
Submitted to
Tamanna Islam Shaon
Lecturer
Department of Finance
Bangladesh University of Business and Technology(BUBT)
Submitted by
Group-Invincible
Program- BBA
24 th Intake
Department of Business studies
Bangladesh University of Business and Technology
Group Members of
Invincible
NAME
ID NO.
Rubel Khan
10112101403
Md.Imran Khan
10112101374
Sabnam Tumpa
10112101389
Sultana Ferdush
10112101393
Ayesha Siddika
10112101395
Md. Noor-Al-Faiyaz
10111101166 (23th)
Letter of Transmittal
15 May 2013
Ms. Reshma Nowreen
Lecturer of Finance
Bangladesh University of Business and Technology
Finally, We want to thank you for giving us the opportunity to work on this report.
Sincerely,
On behalf of Group Butterfly.
Acknowledgement
First we would like to thank the Almighty Allah, Alhamdulillah with his blessings; we are
completed this Assignment like to thank my parents, without whom this effort would have been
worth nothing. Their love, support and patience have taught me about sacrifice, discipline and
compromise. Who has given us the opportunity to study at BUBT and later on doing an
assignment about The brand resonance model which is the most important part of our market
economy. Our first acknowledgement and grateful thanks to Md. Abu Saleh Vice Chancellor of
BUBT for showing us the different areas and for helping with adequate information.
We are greatly appreciated and inspired by Ms. Reshma Nowreen, Lecturer in Finance,
Bangladesh University of Business & Technology for providing such a grand opportunity to
work in this Assignment, which has played a vital role in developing our experience in practical
work field.
Finally, we would like to thank all others whose strong supports make us able to complete this
report.
Executive Summary
ACI Formulations Limited Fundamental Company Report provides a complete overview of the
companys affairs. All available data is presented in a comprehensive and easily accessed format.
The report includes financial and SWOT information, industry analysis, opinions, estimates, plus
annual and quarterly forecasts made by stock market experts. The report also enables direct
comparison to be made between ACI Formulations Limited and its competitors. This provides
our Clients with a clear understanding of ACI Formulations Limited position in the
Pharmaceuticals and Biotechnology Industry.
Table of contents:
SL.No.
Topic
Page no.
1.
Part 1
Introduction
1-4
PART-2
Overview of ACI Formulation Ltd
Chapter-1
Introduction:
ACI formulation Limited (ACI FL) is a subsidiary of ACI limited, located at Gazipur in the out
skirt of Dhaka. ACI FL manufactures majority of the products of ACI Strategic Business Limited
except for the Pharmaceutical Division. The factory is equipped with the state of the art facilities
for product formulations and process innovation. These include modern computerized equipment
like HPLC and GLC.The principal activities of the Company are manufacturing and marketing
of a number of agrochemical and consumer products. All the consumer products were sold to
Advanced Chemical Industries Limited, which acted as the sales and marketing agent of the
Company.
The entire agro chemical products (Crop Care) are however, directly marketed by the Company
without using Advanced Chemical Industries Limited as selling and marketing agent with effect
from1 January 2009.
1.2.Objective:
ACI Formulations Limited always try to manufactures new quality product and capture market.
The Company has registered several new compounds which have been necessary to complete
our range of insecticides, pesticides and fungicides to cover all types of pests. A complete range
will enable us to buy competitively and service all types of customer.
Considering the nature of the products we deal in and the potential hazard to the workers, the
Company regularly conducts safety training sessions and regular medical checkup of the factory
workers. The factory has conducted training on safe handling in pesticide plant, fire fighting,
materials handling, role of good housekeeping in accident prevention, usage of personal
protective equipment (PPE), productivity improvement and good manufacturing practices. The
marketing team has conducted training on product stewardship through overseas trainer.
We have extensive Research & Development (R & D) activities to try new compounds and study
their suitability in different environments and locations within Bangladesh. The Company is
testing 6 new compounds under the Herbicide portfolio, 7 new compounds under Fungicide
portfolio, 4 new compounds under Rice Liquid Insecticide portfolio and 3 new compounds under
Solid Insecticide portfolio. In addition we are conducting trial production of a variety of
vegetable seeds and we hope to enter the vegetable seed market in a big way. One success story
of our R & D is introduction of a variety of Cauliflower which grows in summer.
1.3.Methodology:
1.3.1.Data tools for Analysis
Microsoft Word
Excel
Time Series Analysis of 3 years(2009-2011)
1.3.2.Data Source
Secondary Source
Annual Report
Website
Chapter-2
Company profile:
Year-2010
= 1506602235 928908574
= 1.62
Interpretation:
ACI Formulations Ltd has 1.62 current assets against its current liabilities of 1.
Year-2011
= 1646052000 1126116535
= 1.46
Interpretation:
ACI Formulations Ltd has 1.46 current assets against its current liabilities of 1.
Year
ACI Formulation
2009
1.54
2010
1.62
2011
1.46
ACI Formulation
1
0.95
0.9
0.85
0.8
0.75
2009
ACI Fommulation
2010
2011
Year-2010
= (1506602235 699819589) 928908574
= 0.87
ACI Formulations Ltd has 0.87 quick assets against its current liabilities of 1.
Year-2011
= (1646052000 704746537) 1126116535
= 0.84
Interpretation:
ACI Formulations Ltd has 0.84 quick assets against its current liabilities of 1.
Year
ACI Formulation
2009
2010
2011
0.95
0.87
0.84
ACI Formulation
1
0.95
ACI Fommulation
0.9
0.85
0.8
0.75
2009
3.2.Activity Ratios
3.2.1. Inventory Turnover:
2010
2011
2009
2010
2011
ACI Formulation
138 Days
174 Days
137 Days
ACI Formulation
60000
50000
40000
30000
20000
10000
0
2009
ACI Fommulation
2010
2011
2009
2010
2011
133 Days
110 Days
82
Days
ACI Formulation
60000
50000
40000
30000
20000
10000
0
2009
ACI Fommulation
2010
2011
Interpretation:
Company paid Account payable after 216 days left.
Year-2010
=142329589 (54200229 365)
=958 Days
Interpretation:
Company paid Account payable after 958 days left.
Year-2011
=210931715 (1492407 365)
=51585 Days
Interpretation:
Company paid Account payable after 51585 days left.
Year
ACI Formulation
2009
2010
2011
216 Days
958 Days
51585
Days
ACI Formulation
60000
50000
40000
ACI Fommulation
30000
20000
10000
0
2009
2010
2011
The total asset turnover ratio measures the ability of a company to use its
assets to efficiently generate sales. This ratio considers all assets, current
and fixed. Those assets include fixed assets, like plant and equipment, as
well as inventory, accounts receivable, as well as any other current assets.
Year-2009
=Sales Total Assets
=2079944243 2085956109
=1.00times
Interpretation:
ACI Formulations Limited generates 1.00 taka of sales against its 1.00 taka of
assets.
Year-2010
=1924403783 2641333401
=0.73 times
Interpretation:
ACI Formulations Limited generates 0.73 taka of sales against its 1.00 taka of assets.
Year-2011
= 2443657886 2858855430
= 0.85 times
Interpretation:
ACI Formulations Limited generates 0.85 taka of sales against its 1.00 taka of assets.
Year
ACI Formulation
2009
2010
2011
1.00times
0.73 times
0.85
times
ACI Formulation
10
8
ACI Fommulation
6
4
2
0
2009
2010
2011
3.3.Debt Ratios
3.3.1. Debt Ratio:
It is a measure of a company's financial leverage calculated by dividing its total
liabilities by stockholders' equity. It indicates what proportion of debt the company is using to
finance its assets against equity. It can be calculated as followsYear-2009
= (Total liabilities Total assets) 100
= (1143420835 2085956109) 100
= 54.82%
Interpretation:
ACI Formulations Ltd finances 54.82% of its total assets from its creditors.
Year-2010
= (987107540 2641333401) 100
=37.37%
Interpretation:
ACI Formulations Ltd finances 37.37% of its total assets from its creditors.
Year-2011
= (1160843329 2858855403) 100
=40.61%
Interpretation:
ACI Formulations Ltd finances 40.61% of its total assets from its creditors.
Year
ACI Formulation
2009
2010
2011
54.82%
37.37%
40.61%
ACI Formulation
10
8
ACI Fommulation
6
4
2
0
2009
2010
2011
=291258632 74114019
=3.93
Interpretation:
The company earns 3.93 times EBIT of its interest which is higher than the previous year
Year-2010
=187658063 65548912
=2.86
Interpretation:
The company earns 2.86 times EBIT of its interest
Year-2011
=269118687 71477257
=3.77
Interpretation:
The company earns 3.77 times EBIT of its interest which is higher than the previous year &
lower than the year of 2009.
Year
ACI Formulation
2009
2010
2011
3.93
2.86
3.77
ACI Formulation
9
8
7
6
5
4
3
2
1
0
2009
ACI Fommulation
2010
2011
3.4.Profitability Ratios
3.4.1. Gross Profit Margin (GPM):
Gross profit margin measures company's manufacturing and distribution
efficiency during the production process. It is a measurement of how much
from each dollar of a company's revenue is available to cover overhead,
other expenses and profits.
Year-2009
= (Gross Profit Sales) 100
= (488470107 2079944243) 100
=23.48%
Interpretation:
Per taka of sales of this company earns a 23.48% of GPM.
Year-2010
= (Gross Profit Sales) 100
= (458141712 1924403783) 100
=23.81%
Interpretation:
Per taka of sales of this company earns a 23.81% of GPM.
Year-2011
=(571858904 2443657886) 00
=23.40%
Interpretation:
Per taka of sales of this company earns a 23.40% of GPM.
Year
ACI Formulation
2009
2010
2011
23.48%
23.81%
23.40%
ACI Formulation
10
8
ACI Fommulation
6
4
2
0
2009
2010
2011
2009
2010
2011
14%
9.75%
11.01%
ACI Formulation
9
8
7
6
5
4
3
2
1
0
2009
ACI Fommulation
2010
2011
margin ratio one of the key performance indicators for any business. It is
important to analyze the ratio over time.
Year-2009
= (Net Profit Sales) 100
=(159145096 2079944243) 100
=7.65%
Interpretation:
Each taka of sales earns a NPM of 6%.
Year-2010
=(Net Profit Sales) 100
=(91605336 1924403783) 100
=4.76%
Interpretation:
Each taka of sales earns a NPM of 4.76%.
Year-2011
=(146847207 2443657886) 100
=6%
Interpretation:
Each taka of sales earns a NPM of 6%.
Year
ACI Formulation
2009
2010
2011
7.65%
4.76%
6%
ACI Formulation
10
8
ACI Fommulation
6
4
2
0
2009
2010
2011
Year-2011
=146847207 30000000
=4.89
Interpretation:
Each common share earns a profit/ EACS of $4.89.
Year
ACI Formulation
2009
2010
2011
5.30
3.05
4.89
ACI Formulation
9
8
7
6
5
4
3
2
1
0
2009
ACI Fommulation
2010
2011
Each taka of total assets employed, generates earnings of 7.63% taka to the common shareholder.
Year-2010
= (91605336 2641333401) 100
= 3.47%
Interpretation:
Each taka of total assets employed, generates earnings of 3.47% taka to the common shareholder.
Year-2011
= (146847207 2858855430) 100
= 5.14%
Interpretation:
Each taka of total assets employed, generates earnings of 5.14% taka to the common shareholder.
Year
ACI Formulation
2009
2010
2011
7.63%
3.47%
5.14%
ACI Formulation
10
8
ACI Fommulation
6
4
2
0
2009
2010
2011
It measures the amount of net income returned as a percentage of shareholders equity. Return on
equity measures a corporations by revealing how much profit a company generates with the
money shareholders have invested.
Year-2009
= (EACS Total Equity) 100
= (159145096 942535274) 100
= 16.88%
Interpretation:
The ROE measures how much return is earned on the common stockholders investment in the
company.
This companys shareholders earned a 16.88% return on their investment.
Year-2010
= (91605336 1581930425) 100
=5.79%
Interpretation:
The ROE measures how much return is earned on the common stockholders investment in the
company.
This companys shareholders earned a 5.79% return on their investment.
Year-2011
= (146847207 1638777632) 100
=8.96%
Interpretation:
The ROE measures how much return is earned on the common stockholders investment in the
company.
This companys shareholders earned an 8.96% return on their investment.
Year
ACI Formulation
2009
2010
2011
16.88%
5.79%
8.96%
ACI Formulation
9
8
7
6
ACI Fommulation
5
4
3
2
1
0
2009
2010
2011
Chapter-4
Conclusion: