Financial Statement Analysis of Green Delta Insurance Company Ltd
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Transcript of Financial Statement Analysis of Green Delta Insurance Company Ltd
Green Delta Insurance Green Delta Insurance Company LimitedCompany Limited
IntroductionFinancial Highlights
Balance Sheet Item AnalysisRatio Analysis
Contribution of GDIC in Economy
Green Delta Insurance is one of the leading insurance Green Delta Insurance is one of the leading insurance company of Bangladesh, established in 14company of Bangladesh, established in 14thth December,1986.December,1986.
Green Delta In December, 2013 GDIC Officially launched Green Delta In December, 2013 GDIC Officially launched ‘Cellular phone insurance’ for the first time in ‘Cellular phone insurance’ for the first time in Bangladesh.Bangladesh.
In November 2012 GDIC has been awarded “AA1” rating In November 2012 GDIC has been awarded “AA1” rating in long term crediting.in long term crediting.
During the time of its establishment the paid up capital During the time of its establishment the paid up capital was BDT 30 million and now GDIC has amassed about 510 was BDT 30 million and now GDIC has amassed about 510 million taka.million taka.
GDIC is providing to Bangladesh’s economy by GDIC is providing to Bangladesh’s economy by contributing to higher GDP, facilitating employment and contributing to higher GDP, facilitating employment and insuring new individual businesses, creating scope for insuring new individual businesses, creating scope for investment, diversification of investment. investment, diversification of investment.
ParticularsParticulars/ Year/ Year
20132013 20122012 20112011 20102010 20092009
Gross ProfitGross Profit 2613.45 2613.45 2603.192603.19 2351.472351.47 2001.312001.31 1601.641601.64
Net ProfitNet Profit 1316.99 1316.99 1212.531212.53 862.04862.04 770.31770.31 726.69726.69
Profit BeforeProfit BeforeTaxTax
285.13 285.13 262.67262.67 143.43143.43 562.41562.41 277.65277.65
Profit After Profit After TaxTax
229.03 229.03 237.67237.67 134.00134.00 478.76478.76 232.65232.65
Paid Up Paid Up capitalcapital
637.87 637.87 510.30510.30 408.24408.24 408.24408.24 408.24408.24
TotalTotalInvestmentInvestment
2197.01 2197.01 1998.951998.95 2363.652363.65 2905.302905.30 1835.341835.34
Earning perEarning perShareShare
Tk.3.69 Tk.3.69 Tk.4.05Tk.4.05 Tk. 2.60Tk. 2.60 Tk. 12.31Tk. 12.31 Tk. 5.70Tk. 5.70
Dividend Dividend paidpaid
In cash (%) In cash (%)
15%15% 15%15% - - 40%40% 25%25%
Particulars 2013 2012 2011 2010
Gross ProfitGross Profit 63.17%increase
62.53%increase
46.55%increase
24.65%increase
Net ProfitNet Profit 81.23% increase
66.8%increase
18.63%increase
6%increase
Profit Before Profit Before TaxTax
2.6% increase
5%5%decreasedecrease
48% 48% decreasedecrease
102.56%increase
Profit After Profit After TaxTax
1.56% 1.56% decreasedecrease
2.16%increase
42.40%42.40%decreasedecrease
105.79%increase
Paid Up Paid Up capitalcapital
56.25% increase
119.34%increase
No change No change No change No change
TotalTotalInvestmentInvestment
19.741%increase
8.91%increase
28.78%increase
58.23%increase
Earning perEarning perShareShare
35.26%35.26%decreasedecrease
28.95%28.95%decreasedecrease
54.4%54.4%decreasedecrease
115.96%increase
Dividend paid Dividend paid inin
cash (%) cash (%)
40% 40% decreasedecrease
40% 40% decreasedecrease
__ 60% increase
Green Delta Insurance Company Ltd. has started its journey with paid up capital of Taka 3.00 Lac.
In the year, 2008, GDIC also declared 100% Stock Dividend to its stakeholders.
At present the capital stands at 63 crore 78 lac 75 thousand paid up capital.
The amount of Dividend paid to stake holders are listed belowThe amount of Dividend paid to stake holders are listed below
YearYear Dividend Dividend
20132013 60424746042474
20122012 832411832411
20112011 163404523163404523
20102010 9240213492402134
20092009 14044351404435
GDIC’S business GDIC’S business has been has been
increasing with increasing with a positive a positive
growth rate, as growth rate, as a result the a result the
business’s asset business’s asset has increased in has increased in accordance with accordance with
the positive the positive growth rate.growth rate.
Balance Sheet Item Analysis Balance Sheet Item Analysis (Asset)(Asset)
Analyzing financial statement involves evaluating three characteristics
i.i. LiquidityLiquidityii.ii.ProfitabilityProfitabilityiii.iii.SolvencySolvency
It measures the company’s short term It measures the company’s short term ability to pay its obligation and meet ability to pay its obligation and meet unexpected need for cash. unexpected need for cash. It measures for each dollar of debt how It measures for each dollar of debt how much cash it holds. much cash it holds.
Current ratio Current ratio measures the measures the organizations organizations ability to pay ability to pay
obligation and obligation and dues.dues.
Ratio AnalysisRatio Analysis
Acid-test ratio Acid-test ratio
measures the measures the
organizations organizations
ability ability
to pay to pay
immediate immediate
obligation.obligation.
Ratio AnalysisRatio Analysis
Receivables turnover measures the liquidity of receivables.
Receivables Receivables TurnoverTurnover
Profitability ratio are-
1.Asset turnover2.Profit Margin3.Earning per share4.Return on common stockholders equity
It measures the income or operating success of a company for a given period of time.
Profitability Profitability RatioRatio
Measures how efficiently asset helps to generate sales.Asset TurnoverAsset Turnover
It measures how much net income each sale generates.Profit Margin Profit Margin
RatioRatio
Ratio AnalysisRatio Analysis
It measures the return of investment made by stockholder.
Return on common Return on common stock holders equitystock holders equity
Measures a company’s Measures a company’s ability to survive in long run.ability to survive in long run.Solvency RatioSolvency Ratio
Total debt to Total debt to
total asset total asset ratio ratio
measures measures
the the percentagepercentage
of asset of asset providedprovided
by creditor.by creditor.
Green Delta Insurance Company Limited made significant contribution to the government in boosting its revenue collection. As per the prevailing law of the country, the company being corporate citizen pays tax and vat on its own income.
Contribution in the year 2013 Figure in BDT
Tax Deducted on Various Account 3248062.00
Tax Deducted on Agency Commission
17941787.00
VAT Deducted on Various Account 7765054.00
VAT Deducted on Survey 1448112.00
Company Tax 64473029.00
Despite last year’s difficult environment GDIC’S performance has steadily improved.
Green Delta focuses on maintaining strong levels of capitalization.
Despite a year of uncertainty GDIC’S Operating income was 288.16 million. With the continues improvement of the economy, the business of GDIC is also flourishing.