PRAN-RFL

GROUP
Term Paper
on
Financial Performance Analysis of AMCL(PRAN RFL Group)

Submitted to:
Farzana Nasreen
Lecturer, Department of Finance
Jagannath University, Dhaka
 RABBY

NYMUZZAMAN EMON

GROUP NO:03

ARAFAT MOMINUL
 ORGANIZATION PROFILE
PRAN stands for Program for Rural Advancement Nationally.
The largest fruit and vegetable processing industry in Bangladesh with
countrywide distribution network AMCL’s PRAN is an established brand
of Bangladesh with an extensive sales force all over the country. PRAN
have a well-developed infrastructure for production, sales and
distribution. PRAN has proven itself as – Local product but of
international standard.

AMCL was launched in 1985 as an agri-business venture

to:
• Serve small farmers with inputs
• Marketing farm produce for profits.
• Organizing contract growers to grow specific crops.
• Exports of agricultural products.
 MISSION VISION

The mission of PRAN group is to generate employment and earns dignity Outlines what the organization wants to be, or how it wants
& self-respect for our compatriots through profitable enterprises. the world in which it operates to be (an “idealized” view of
the world).

MISSION VISION

OBJECTIVES GOALS

OBJECTIVES GOALS
AMCL and its Brand name “PRAN” have twin objectives – “achieving social To become one of the biggest names in international fruit
values with sustainable pecuniary advantage for all our stakeholders.” and vegetable processing industry.
 MISSION VISION

The mission of PRAN group is to generate employment and earns dignity Outlines what the organization wants to be, or how it wants
& self-respect for our compatriots through profitable enterprises. the world in which it operates to be (an “idealized” view of
the world).

MISSION VISION

OBJECTIVES GOALS

OBJECTIVES GOALS
AMCL and its Brand name “PRAN” have twin objectives – “achieving social To become one of the biggest names in international fruit
values with sustainable pecuniary advantage for all our stakeholders.” and vegetable processing industry.
 MISSION VISION

The mission of PRAN group is to generate employment and earns dignity Outlines what the organization wants to be, or how it wants
& self-respect for our compatriots through profitable enterprises. the world in which it operates to be (an “idealized” view of
the world).

MISSION VISION

OBJECTIVES GOALS

OBJECTIVES GOALS
AMCL and its Brand name “PRAN” have twin objectives – “achieving social To become one of the biggest names in international fruit
values with sustainable pecuniary advantage for all our stakeholders.” and vegetable processing industry.
 MISSION VISION

The mission of PRAN group is to generate employment and earns dignity Outlines what the organization wants to be, or how it wants
& self-respect for our compatriots through profitable enterprises. the world in which it operates to be (an “idealized” view of
the world).

MISSION VISION

OBJECTIVES GOALS

OBJECTIVES GOALS
AMCL and its Brand name “PRAN” have twin objectives – “achieving social To become one of the biggest names in international fruit
values with sustainable pecuniary advantage for all our stakeholders.” and vegetable processing industry.
 Financial Statement Analysis
Definition of Financial Statement:

A financial statement (or financial report) is a formal record of the financial activities
and position of a business, person, or other entity. Relevant financial information is
presented in a structured manner and in a form easy to understand.

Tools of Analysis :

 Horizontal Analysis
 Vertical Analysis
 Ratio Analysis
 HORIZONTAL ANALYSIS
 Definition
 Purpose
 Usefulness

Formula for Horizontal analysis,

NON CURRENT ASSETS CURRENT ASSETS

96.4%

23.8%
62.5%

41.5%
14.6%
6.2%
2.0%

2014

2017
2014

2015

2016

2017

2015

2016
-5.5%
 TOTAL ASSETS SHAREHOLDER’S EQUITY

33% 25.5%

29% 29% 19.1%

13.1%

6.6%
2014

2016
2015

2017
2014
2015

2016

2017

-3%
NON CURRENT LIABILITIES CURRENT LIABILITIES

28.4%
33%

23.7%

96.3%
47.7%

2014

2015
2014

2017
2016
2015

2017
2016

-38.9% -4.3%
-4.6%
Total Liabilities & Equity

53%
32.9%

39%

28.8%
24%
29.1%
2014

2017

.
2016
2015

-3.3%

2016
2015

2017
2014
 Sales Cost of Goods Sold

53% 53%

39%
35%

21% 24%
2014

11%
12%
-3.3%

2016
2015

2017
2015

2014
2014

2017
2016
2014

11%
2015

2016

2017

2014
1%
2015
13%

2016
Gross Profit

18%

2017
32%
 Expenses
Operating Profit After Financial
Expenses

2016
174%
15%
9%

2017
169%
-21%
2014

2015

-5%

1% 1%

2017
2016
2014

2015
Profit Before Taxation Profit After Tax

184% 218%

179% 216%

5% 5%
1% 1%
2016
2015

2017
2014

2016
2014

2015

2017
Total Comprehensive Income

2016
1% 1%

2017
-21%

2014

2015
-5%
VERTICAL ANALYSIS
2013
155
2014
173
2015
189
Net Sales (Crore)

2016
209
2017
238

2017
2.3%
2016
2.5%
2015
2.9%
2014
3.2%
2013
Total Comprehensive Net Income

3.5%
 2013
70.4%
2014
68.8%
2015
Current Assets

56.2%
2016
62.6%
2017
67.5%

2013
2013
113
29.5%
Total Liabilities

2014 2014
110 31.1%
2015
Non-Current

2015
151
43.7%
2016
& Shareholders'

2016
146
37.3%
2017
2017
32.4%
146
Assets Equity(Crore)
 2013
113
2014
173
2015
151
2016
Total Assets(Crore)

146

2016
146
 2013
2013
40.3%
49.8%
2014
2014
44.44%
49.3%
2015
Shareholders'

2015
34.34%
35.8%
2016
Equity

2016
37.31%
Current Liabilities

47.8%
2017
2017
39.22%
49.6%

2013
9.70%
2014
6.10%
2015
29.80%
2016
14.8%
Non Current Liabilities

2016
11.1%
 2013
40.3%
2014
44.44%
2015
34.34%
2016
Shareholders' Equity

37.31%
2017
39.22%

2013
2013
113
9.70%
2014
2014
110
Total Liabilities

6.10% 2015
2015
151
Non Current

29.80%
2016
2016
146
& Shareholders'

14.8%
Liabilities

2017
2016
146
11.1%
Equity(Crore)
 DuPont Analysis
DuPont Analysis is an extended examination of Return on Equity (ROE) of a company
which analysis Net Profit Margin, Asset Turnover, and Financial Leverage. This analysis
was developed by the DuPont Corporation in the year 1920. In simple words, it breaks down
the ROE to analyze how corporate can increase the return for their shareholders.

𝐑𝐎𝐄 = 𝐏𝐨𝐟𝐢𝐭 𝐌𝐚𝐫𝐠𝐢𝐧 × 𝐓𝐮𝐫𝐧𝐨𝐯𝐞𝐫 × 𝐋𝐞𝐯𝐞𝐫𝐚𝐠𝐞

𝐍𝐞𝐭 𝐈𝐧𝐜𝐨𝐦𝐞 𝐍𝐞𝐭 𝐒𝐚𝐥𝐞𝐬 𝐀𝐯𝐞𝐫𝐚𝐠𝐞 𝐀𝐬𝐬𝐞𝐭𝐬

𝐑𝐎𝐄 = × ×
𝐍𝐞𝐭 𝐒𝐚𝐥𝐞𝐬 𝐀𝐯𝐞𝐫𝐚𝐠𝐞 𝐀𝐬𝐬𝐞𝐭𝐬 𝐀𝐯𝐞𝐫𝐚𝐠𝐞 𝐄𝐪𝐮𝐢𝐭𝐲
 ROE
9.8% AVERAGE ASSETS
ROA /Average
3.749% Multiply
Equity=2.61

Profit margin : Equity as a

percentage of sales=2.3%
Total Assets Turnover=1.63
Multiply

Average Total Assets=

Revenues=2,380,335,493 Net Incomes=54,937,417 Sales=2,380,335,493
Divide Divide 1,461,145,363
Fixed Assets Current Assets
Total Cost=2,325,398,076 Revenues=2,380,335,493
subtract 2016=544,637,029 2016=914,631,456
2017=474,194,353 Add 2017=988,827,887

Operation Cost= Interest=

Account Receivables Cash & Securities
261,428,765 117,469,087
2016=118,263,356 2016=17,722,510
Depreciation= 2017=140,563,359 2017=63,720,840
Taxes=17,744,005
252,803,926
Other Current Assets Inventories
2016=208,677,210 2016=569,968,380
2017=236,574,747 2017=547,968,661

Non Operation Income

2,373,553
 RATIO ANALYSIS
Ratio analysis expresses the relationship among selected items of financial statement data. A
ratio expresses the mathematical relationship between one quantity and another. The
relationship is expressed in terms of either a percentage, a rate, or a simple proportion. Ratios
can provide clues to underlying conditions that may not be apparent from individual financial
statement components. However, a single ratio by itself is not very meaningful.
 Liquidity Ratios
These ratios analysis the short-term financial position of a firm and indicate
the ability of the firm to meet its short-term commitments (current liabilities)
out of its short-term resources (current assets).

The ratios which indicate the liquidity of a firm are:

 Current ratio
 Liquidity ratio or Quick ratio or Acid test ratio
 Current Ratio Acid-Test Ratio

1.41 1.39 1.57 1.31 1.36 0.15 0.17 0.22 0.19 0.28

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
 Efficiency Ratios
The efficiency ratio is a ratio that is typically used to analysis how
well a company uses its assets and liabilities internally.
 Accounts Receivable Turnover Average Collection Period

26.4 26 23.9 20.8 18.4 14 14 15 18 20

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
 Days in Turnover(Days) Inventory Turnover

164 144 128 120 105 2.2 2.5 2.8 3 3.5

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
 Profitability Ratios
Every firm is most concerned with its profitability. One of the most frequently used
tools of financial ratio analysis is profitability ratios, which are used to determine the
company's bottom line and its return to its investors. Profitability measures are
important to company managers and owners alike. If a small business has outside
investors who have put their own money into the company, the primary owner
certainly has to show profitability to those equity investors. Profitability ratios show
a company's overall efficiency and performance.
 Profit Margin Asset Turnover

3.5 3.2 2.9 2.5 2.3 1.4 1.5 1.5 1.4 1.6

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
 Return on Assets Return on Common Shareholders' Equity

4.8 5 4.3 3.6 3.8 12.4 11.7 11.1 10 9.8

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
 Price-Earning Ratio EARNINGS PER SHARE

18.76 32.04 27.48 29.54 31.53 6.85 6.93 6.95 6.62 6.68

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
 Payout Ratio

45.2 46.2 46.1 48.3 46.6

2013 2014 2015 2016 2017

 Solvency Ratios
This is the ability of the company to repay its debts in the long-term. The ratios,
therefore, are not restricted to the current assets and current liabilities but deal
rather with the total assets and total liabilities. The solvency ratios give an
estimate of the structural safety of the company, by calculating, in various ways,
the ratio of internally sourced finance to externally sourced finance. Internally
sourced finance is more expensive but yet a low risk source of finance (owners’
ordinary or preference share capital) versus externally sourced finance, which is
cheaper but yet a riskier source of finance (loans from the bank, debentures).
 Debt to Assets Ratio Time Interest Earned

60 56 66 63 61 1.5 1.6 1.6 1.6 1.6

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
 FINDINGS
On 1st May 2016 PRAN-RFL was honored with the ICMAB Best Corporate Award
2013 for outstanding achievements in financial and management excellence. In addition,
PRAN-RFL was awarded the top position in the Export Companies Category in the
ICMAB Award based on the market strength, leverage, profitability, liquidity, funding
flexibility and other qualitative factors. The main reason for highlighting about this
award is because it has an important relationship with our findings. (AMCL News and
Events, 2016).
 RECOMENDATIONS

Coordination among the employee

1
2 Keep liquid assets or safety cash balance

3 Invest the retained cash in government securities

4 Concentrate on the quick ratio

5 Control the debtor’s collection period

6 Manage assets carefully

7 Minimize the cost
 CONCLUSION
At the end of this report it can be conclude that PRAN-RFL efficiently
performing their servicing activities. They are offering a wide variety
quality services to their clients and they believe that clients are their first
priority. As a new organization it is achieving prosperity day by day.
Measuring and evaluating this performance was the major objective of this
study. Finally, we believe that PRAN-RFL will concentrate to their
profitability more by maintaining their customer value and goodwill in
order to gain market leadership in the advertising sector of Bangladesh
KEEP YOUR QUESTION IN MIND

WE’RE NOT GOOGLE