Assignment Final Financial Control
Transcript of Assignment Final Financial Control
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A Term Paper
on
Ratio Analysis of Grameenphone Ltd (GP).
Course Code: CB-6!
Course Title: "inan#ial Analysis and Control.
$u%mitted To:
Profess Abu Taleb
Department of Banking and Insurance
Faculty of Business Studies (FBS)
ni!ersity of D"aka
Prepared By:
#akia Akter
ID $o% &'*+,*
*t" Batc"- Banking and Insurance Department
Faculty of Business Studies (FBS)
ni!ersity of D"aka
&ate of $u%mission: 'ay *6
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$tudent+s &e#laration
I do "ereby declare t"at t"e ork presented in t"is Term paper "as been carried out by me and
"as not been pre!iously submitted to any ot"er ni!ersity for an academic degree.
T"e ork i "a!e presented does not breac" any e/isting copyrig"t and no portion of t"is report is
copied from any ork done earlier for a degree or ot"erise.
I furt"er undertake to indemnify t"e department against any loss or damage arising from breac"
of t"e foregoing obligations.
0ours1 sincerely-
#akia Akter
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Parti#ulars Pa,e o.
2rigin of t"e report
2b3ecti!e of t"e report
4et"odology of t"e report
5imitation of t"e Study
2!er!ie of mobile telecom market in Banglades"
Profile of t"e 6rameenp"one
Profile of t"e 7obi
Balance S"eet of 6rameenp"one
Income Statement of 6rameenp"one
Balance S"eet of 7obi
Income Statement of 7obi7atio analysis of t"e 6rameenp"one and 7obi
Findings
8onclusion
7eference
Ta%le of Content
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R/G/ " T01 R1PRT
T"is term paper is made as a mandatory part of our course 9Financial Analysis and 8ontrol: for
;4BA program under Faculty of Business Studies- ni!ersity of D"aka. To prepare a term paper on t"e basis of course outline is an opportunity for t"e students to familiari To calculate Difference 7atio Analysis of 6rameen P"one.
> To compare t"e 7atio beteen different year of 6rameenp"one .
> To get t"e outcome of financial ratio analysis.
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'1T0&LG4 " T01 R1PRT
2ur report is based on secondary data. @e "a!e collected t"is data from official eb site of
6rameenp"one. @e "a!e taken information on financial acti!ities of 6rameenp"one of last
years. After collecting t"is information- e "a!e done t"e 7atio analysis of 6rameenp"one. All
calculations and analysis are done by folloing formula.
T"e formula for eac" ratio is as follos%
a) 72A
72A $et Income After Ta/
Total Assets
%) 72;
72; $et Income Preferred Di!idends
A!erage S"are"olders1 ;Cuity
#) Accounts 7ecei!able Turno!er
Accounts 7ecei!able Sales 2n Account
Turno!er A!erage Accounts 7ecei!able
d) In!entory Turno!er
In!entory Turno!er 8ost of 6oods Sold
A!erage In!entory
e) Accounts Payable Turno!er
Accounts Payable 8ost of 6oods Sold
Turno!er A!erage Accounts Payable
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f) 8urrent 7atio
8urrent 7atio 8urrent Assets
8urrent 5iabilities
,) uick 7atio
uick 7atio 8urrent Assets In!entories
8urrent 5iabilities
h) DE; (I)
DE; (I) Total 5iabilities
Total Assets
i) DE; (II)
DE;(II) Total 5iabilities
Total S"are"olders1 ;Cuity
5) Times Interest ;arned
Times Interest ;arned Income before Interest and Ta/es
(TI;) Interest ;/pense
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L/'/TAT/ " T01 $T&4
') It is ob!ious t"at e!ery student "as some limitation. T"e study e "a!e made is of great
importance and reCuired us "uge ork. To do t"at e "a!e faced some difficulties- "ic" madeour conduction of t"e study little "a
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AB2T 67A4;;$P?2$;
PR"/L1 " T01 GRA'11P01 %
6rameenp"one 5td. is t"e largest mobile telecommunications operator in Banglades" in terms of
re!enue- co!erage and subscriber base. T"e company as incorporated on '+ 2ctober 'GG* as a
pri!ate limited company. 6rameenp"one con!erted to a public limited company on & #une
++. T"e company became stock listed and started its trading at D"aka and 8"ittagong Stock
;/c"anges from '* $o!ember ++G. T"e s"are"olding structure comprises of mainly to
sponsor S"are"olders namely Telenor 4obile 8ommunications AS (&&.H+) and 6rameen
Telecom (,.+). T"e rest '+.++ s"are"olding includes 6eneral public J ot"er Institutions.
6rameenp"one 5td. is a leading pro!ider of telecommunications ser!ices of Banglades". T"e
company operates a digital mobile telecommunications netork based on t"e 6S4 standard in
t"e G++ 4?
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'+.++ s"are"olding includes 6eneral Public (.HG)- Foreign (.'+) and 2t"er Institutions
(&.+') as of ' December +'&.
1.2 Vision
6rameenp"one !ision is 97e8re here to help9. It is simple but significant. It means e e/ist
to "elp
our customers get t"e full benefit of communications ser!ices in t"eir daily li!es. @e1re "ere
to "elp.
1.3 Mission
6rameenp"one is t"e only reliable means of communication t"at brings t"e people of
Banglades"
close to t"eir lo!ed ones and important t"ings in t"eir li!es t"roug" unparalleled netork-
rele!ant
inno!ations J ser!ices.
1.4 Value Statement
T"ere are four statements for 6rameenp"one- t"ey are%MAKE IT EASY
;!eryt"ing e produce s"ould be easy to understand and use. @e s"ould alays remember
t"at e
try to make customers1 li!es easier.
KEEP P!MISES
;!eryt"ing e do s"ould ork perfectly. If it doesn1t- e1re t"ere to put t"ings rig"t. @e1re
about
deli!ery- not o!er=promising. @e1re about actions- not ords.
"E I#SPII#$
@e are creati!e. @e bring energy and imagination to our ork. ;!eryt"ing e produces"ould look
fres" and modern.
"E ESPE%T&'(
@e acknoledge and respect local cultures. @e ant to be a part of local communities
"ere!er e
operate. @e ant to "elp customers it" t"eir specific needs in a ay t"at suits ay of t"eir
life best.
Balan#e sheet and /n#ome $tatement of Grameenphone for the year ** to *;
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RAT/ AAL4$/$ " GRA'11P01 A& RB/:
a) Current Ratio
8urrent 7atio 8urrent Assets
8urrent 5iabilities
+',- 8urrent 7atio of 6rameenp"one H,-H*,-G&E*'-,+-'*'.H
+'- 8urrent 7atio of 6rameenp"one *,-H',-G&E'-+-'*.+
+'- 8urrent 7atio of 6rameenp"one '-,+-+&-+++E*-+-*+-++++.
+''- 8urrent 7atio of 6rameenp"one ','+++E&,'GH++++.&H
According t" ratio it is seen t"at bot" 6P and 7obi are facing liCuidity problem. Because after
paying liabilities- a small portion is left as current assets "ic" is not good for bot". ?ere 6P "as
more liCuidity t"an 7obi in +',. But in +'- 6P "ad !ery good liCuidity position.
%)
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As t"e 6P "as !ery small in!entory- "ere current and Cuick ratio are almost same in +',. 2n t"e
ot"er "and- 7obi1s current and Cuick ratio is absolutely same because of not "a!ing any
in!entory. In +'- 8urrent 7atio and uick ratio ere same for 7obi because of not "a!ing any
in!entory.
#) &e%t to 1>uity Ratio
DE; Total 5iabilities
Total ;Cuity
+',- DE; of 6rameenp"one *'-,+-'*E'-*,-&+ '.G&
+'- DE; of 6rameenp"one ,'-+'-&*E'-*,-+' '.G,
+'- DE; of 6rameenp"one H++++E&,&H++++.'*
+''- DE; of 6rameenp"one +++++EHHH+++ '.H+
According to t"e Debt to eCuity ratio- 6P1s debt is !ery "ig". 2n t"e ot"er "and- 7obi is "a!ing
!ery small portion of debt. ?ere e can say t"at 7obi1s condition is good. 7obi is "a!ing more
eCuity t"an 6P in bot" +', and +'.
d) &e%t to Total Assets
DETA Total 5iabilities
Total Assets
+',- DETA of 6rameenp"one *'-,+-'*E'+-*-H& .,*G
+'- DETA of 6rameenp"one ,'-+'-&*EG&-**'-,+ .,'
+'- DETA of 6rameenp"one H++++E''**& .*G
+''- DETA of 6rameenp"one +++++E'+HG+&.*,
In case of debt to total assets- 6P is "a!ing less t"an &+ of liabilities. In contrary- 7obi is
"a!ing insignificant liabilities. ?ere- 7obi is "a!ing more assets t"an liabilities and its
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condition is good. But it ill not get interest benefit in long run. In +'- t"e debt to assts ratio
as !ery close for bot" companies.
e) A##ounts Re#ei?a%le Turno?er
Accounts 7ecei!able Sales 2n Account
Turno!er A!erage Accounts 7ecei!able
+',- 6rameenp"one '+-**-EG-'-&&H'+.&*
+'- 6rameenp"one '&-&-E'+-G-'',.+
+'- 6rameenp"one '&-&-E'+-G-'',.+
+''- 6rameenp"one '&-&-E'+-G-'',.+
?ere 6p is "as !ery smaller Account 7ecei!able t"an 7obi. And in Accounts 7ecei!able
Turno!er 6P1s condition is good. In +'- recei!able turno!er as significantly lo for 7obi.
f) RA
72A $et Income After Ta/
Total Assets
+',- 6rameenp"one'G-H+-HE'+-*-H&.'&'
+'- 6rameenp"one''-'''-&HEG&-**'-,+.''
+'- 6rameenp"one''-'''-&HEG&-**'-,+.''
+''- 6rameenp"one''-'''-&HEG&-**'-,+.''
6p1s 7eturn on Assets is "ig"er t"an 7obi. 6p is "a!ing '&.' and 7obi is "a!ing only .
7eturn on Assets. So e can say t"at 6p is able to use its total assets more t"an 7obi. In +'-
bot" companies "ad less 72A.
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,) R1
72; $et Income After Ta/
S"are"olders1 ;Cuity
+',- 6rameenp"one 'G-H+-HE'-*,-&+ .*'
+'- 6rameenp"one ''-'''-&HE'G-*&-'' .&H
+'- 6rameenp"one ''-'''-&HE'G-*&-'' .&H
+''- 6rameenp"one ''-'''-&HE'G-*&-'' .&H
6p1s 7eturn on eCuity is "ig"er t"an 7obi. 6p is "a!ing *.' and 7obi is "a!ing only 'G.&
7eturn on eCuity. So e can say t"at 6p is able to use its total eCuity more t"an 7obi.
h) Gross Profit 'ar,in
6ross Profit 4argin 6ross Profit
$et Sales
+',- 6rameenp"one *-HG*-+'E'+-**- .&G
+'- 6rameenp"one -H&-+&EHG-&-' .'
+'- 6rameenp"one -H&-+&EHG-&-' .'
+''- 6rameenp"one -H&-+&EHG-&-' .'
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According to t"e ratio- it is seen t"at 6P is "a!ing &.G and 7obi is "a!ing '.& gross Profit.
T"ey bot" "a!e almost close 6ross Profit 7tio. In +'- 7obi "ad significantly less gross profit
margin t"an year+',.
i) et Profit 'ar,in
6ross Profit 4argin $et Profit
$et Sales
+',- 6rameenp"one ''-'''-&HEHG-&-' .'G
+'- 6rameenp"one 'G-H+-HE'+-**- .'G
+'- 6rameenp"one 'G-H+-HE'+-**- .'G
+''- 6rameenp"one 'G-H+-HE'+-**- .'G
In case of net profit- 6P is earning 'G. and 7obi is earning '&.*. ?ere 6P is getting more
profit t"an 7obi. 0ear +'- as consistent it" year +', for bot" companies.
"/&/G$
/tems
*; *! * ** Time
$eries
Cross
$e#tional
a) 8urrent 7atio'.H .+
%) uick 7atio'. .+
#) Debt to ;Cuity
7atio'.G& '.G,
d) Debt to TotalAssets
.,*G .,
e) Accounts
7ecei!able
Turno!er
'+.&* ',.+
f) 72A.'&' .''
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,) 72;.*' .&H
h) 6ross Profit
4argin.&G .'
i) $et Profit 4argin
.'G .'G
According to t"e table- e can see t"at 6p "as t"e better condition t"an 7obi in all cases e/cept
debt to eCuity and debt to asset ratio. ?ere t"ere is an add situation t"at 6P1s debt is !ery "ig"
t"an its eCuity. It is also seen t"at in +', bot" 6P and 7obi "a!e liCuidity problem because t"ey
are maintaining !ery lo current and Cuick ration. After paying liabilities- t"ey ill "a!e !ery
lo current assets t"at may lead to t"e liCuidity problem. A noticeable t"ing is t"at t"ey bot"
"a!e significant profitability. ?ere e can see t"at 6P is earning 'G. and 7obi is earning
'&.* net profit. 2n t"e ot"er "and- in +' bot" 6P and 7obi "ad a "ig"er liCuidity position.
?ere e can see t"at 6P "ad !ery good liCuidity in +' t"an 7obi. And 7obi "ad less debt t"an
6p in +'. $et profit margin as consistent for bot" companies.
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Con#lusion:
From t"e abo!e discussion e can say t"at 6rameenp"one is better t"an robi from any
perspecti!e. It entered into t"e market before 7obi- its e/pertise- profitability and performance
are also better t"an 7obi.
Referen#es:
') Financial ratio foemulas.
) 8lass 5ecture of Profess Abu Taleb- Department of Banking and Insurance- ni!ersity of
D"aka.
) .google.com
,) .grameenp"one.com
&) .robi.com.bd