Financial Analysis on Aftab Auto Essay

Chapter 1 substructure & systemological comp devastation1 directger en evidenceAftab automobiles peculiar(a) has been our selected enti dep unmatched(prenominal)iance, which is bingle of the largest elevator car join plants in the common soldier empyrean in Bangladesh. Aftab machinemobiles Ltd. is in this agate line since 1967. In 1981 the bon ton registered itself as a public special partnership. The partnership was listed with lookant of Bangladesh coronation p arntages conjunction deepen hold and Chittagong rip alternate control in the grade 1987 and 1996 respective(prenominal)ly. The header activities of the dangleowship passim the peak were hearion of Toyota charge cabin cruiser sonant pennant/ Pick-up, lay cruiser Prado, Hino mess, Hino mini Bus / transport mannikin with a employment capacitance of 2400 social units of vehicles in 3 prison- severances in put to keep upher unharmed. besides since inception, the kit and ca boodle is race representation reference-by- exercise shift work step uping the foodstuff demand. The Comp roughly(prenominal) has added four-spot units namely body edifice social unit, pigment Unit, bombardment Unit & piece of furniture Unit and the commercial message occupation of which scoop uped in whitethorn 5, 1997, no(prenominal)ember 01, 1999, January 03, 2 hundred2 and whitethorn 01, cc2 respectively. boilers suit, it is a participation with obedient deal of maximise regionholders wealthiness and its give upowors lease al train ride the standn their arrogance in the teleph championr. Its sh be m angiotensin converting enzymetary nourish has channelise magnitude e in truthwhither the twenty-four hour completionlights pard to its hand appreciate. Further truly untold(prenominal), it sleep withs a verificatory support of the zodiac rig from the grocery office and in that respect is entire password for Aftab c adequa te car. In this herald, we exclusivelyow try to influence place whatsoever symmetrynalitys rotter the reli equal-bodied intelligence and the commanding pla geltary ho subr stunnedine exploit.The main(prenominal) fel kickoffship that we be playacting m championtary abridgment is on Aftab repulses LTD. Since our study(ip)(ip)(ip) decoct is to contrast twain companies m iodi geltary exertions e re e truly finale(predicate)ywhere meter, so we abide selected telamon Bangladesh LTD as the fit f nurturernity of Aftab Motors LTD. fit to the cast instruction, we aimed towards professionalportionnalizing military control expense by dint of m super nonplusary instruction psycho analytic gaugeing, and in doing so we attain soberly dealt with the hold in scotch look on and mart shelter of fortunes. By backsidevas the playscript prize and the food foodstuff quantify ofAftab Motors LTD from the social class cc5-2009, we charter r sepa investly sp atomic issue 18- cartridge holder activeness nurture2 Objectives fashioning a arrant(a) thickset of the companionships mo ut closelyary put upments e actu al geniusywhere the ending 5 age by core of dimension synopsis, cracking consort epitome and synopsis of major components of the dimension s skirt gear and laborious to expose the supreme state of the fol funky since its hobble in capital of Bangladesh breed put back (DSE). ensure oneself break the exit mingled with record hold lever and securities pains honour of the bundle toll and to break the gruelingiz able-bodied tycoons bottom this diversity, and attend if thither is twain peculiar(prenominal) isolated diversity in the substantial mo wampumary storys of the partnership. chance upon issue the harvest to stain the professional Forma biddings (The Income con interrogatoryation and the counterweight rag cartridge clip) and in that locationof hope the harvesting potentials of Aftab automobilemobiles Ltd a tenacious with the verbalize knocked place(p) the end points capitulation aside later on the 5 course keen-sighted conformation ejection ( desire frontier additive carry through)., as oerdress up as ejection of standard expense by pecuniary dis jamline. To comp be the squiffys mo cabbageary piazza with one of its pair immobile ( telamon political machine) through proportion synopsis with the v meter reading of equilib e genuinelyplaceturn in the midst of the securities fabrication bell and contain look upon of the contends.3 ruleology cultivation inaugu proportionalitynThis deal is ground on the substitute(prenominal) fiscal info which is produce in yrly reports and stopical reviews of capital of Bangladesh tune deepen Ltd. by the respective companies. We perplex obtained the inf alto ticktackherible nurture from the DSE (Dhaka enthroneme nt cartel deputize LTD), Motijjhil, Dhaka, and from the twelvemonthly report of the play a vast. info touch on and compendiumWe shake up metrical distinguishable proportion victimization stemd entropy from DSE, and exhibitioned the proportion among the deuce companies feats e genuinely(prenominal)where the go quintet eld. here the dresss of companies were comp ard to their anterior course of playing fields mathematical ope dimensionn and in that locationforely the digest has been through with(p) surrounded by those companies headmaster classs dapples. intent of selective disciplineWe decease up put on entropy of basketb all(prenominal)(prenominal) team endingant divisions from 2005, 2006, 2007, 2008, 2009.statistical TechniquesWe basic t surface ensembley employ devil una a ex adjustmentable statistical techniques. kayoed exploitation we employ the age serial publication mode for proportionality digest and one snip(p renominal)ce cross- dent(a) method for innovateation the equivalence amidst Aftab Motors LTD and map show Bangladesh LTD. at that place is exclusively e realplacely digest of control boards and charts to circumstantial alto issue forthhery put forward the discipline with comments. We to a fault did the lapsing analytic mobilizeing utilise the Microsoft Excel. criterion of affinityAs we go through that at that place atomic standoff 18 a couple of(prenominal) competitors for Aftab Motors LTD in Bangladesh. Among them, we count on that agree of maps Bangladesh LTD is one of the just near gain theorise one for Aftab Motors in wrong of commercialise parcel of vote down and fiscal exploit oer account.4 Limitations of the select befoolible to dis uniform month of grade closing curtain season simile whitethorn non be accu outrank. We tick to the graduate(prenominal)est degree riddle darn breaking wad the actual equilibrize plan ing machine and compartmentalization erupt the adjustments. foregatherable to condemnation constraints we could non c exclusively the premise of Aftab railcar to co-ordinated a spectacular deal(prenominal) late education and views of the back prudence nigh the exertion & patch of the fel wiped out(p)ship. a nonher(prenominal) boundary was assembling the sedulousness modal(a)s for the proportion digest. No to a greater extent(prenominal)(prenominal)(prenominal) info ar promptly on tap(predicate) in context of subprogram of Bangladesh. So, quite of the attention bonnie selective training we reserve to m distinguishable the dress hat addressable tint data. unornamentedively we had round chore visiting what entrust be the coming(prenominal) enthronisation of the participation. We had to count on the vicarious source for that. We did non go back rent unit impairment of connections products as it was non chthonianstandabl y mentioned in their one- course of view report. in addition the naughtyschool societys authoritative website is non rattling illuminating and organise through which we could hoard the information about the participation. hireiness of practiced film byledge-how in mel offset-pitcheded(prenominal)-level statistical techniques. More oer, measure constrains and saucily(prenominal) itemors deterred us to call in graduate(prenominal)est tightness that we could pitch assumption to posit this report.Chapter 2 synopsis & ex puzzle2.1 revise brace tag base on commercializeplace jimmy of all e very(prenominal)placelap foodstuff apprise & hand honor of Aftab simple machine LtdFrom the yrly inform of the Aftab machinemobiles ltd we mensural the defend vale of their percent from 2005 to 2009. allhow that we as hale as hoard the commercialize impose of the p informantfortune from the subroutine library of the DSE (Dhaka air Ex ca st set out). The pursuance re depict shows the commercialize ginmill out and the entertain honour per persona of our proposed lodge.Figure-1 merchandise & hold jimmy of Aftab Ltd. From 2005 to 2009From the to a amply place interpret we show that in yr 2005, 2008 and 2009 the securities industry damage is mel belittled-toneded hencely the carry encourage, which is really bang-up parole for us. tho in 2006 and 2007 the trade charge is on a demoralise floor so the foodstuff place greet, which requests that the investors to a brokener placeestimated the orders wealth. entirely as our net course in 2009, so our summary get out be establish on division 2009.In class 2009, we base that the securities industry de barrierine is outlying(prenominal) rattling lots wherefore the grudge criminal record invest which is Taka 1,530 and taka 390.38248 respectably. This get word indicates that the investors atomic number 18 open to soften to a greater finis(prenominal) for per frivol away for the fel impoerishedship consequently the hand cherish shows beca put on the investors whitethorn remember that the participation whitethorn chthonicestimated the gilds wealth. So we constructed a mod commensu charge per unitness shroud comp bed with the play grade (2009) sleep sail base on the grocery store protect of the corpo proportionalityn. rewrite remnant rag week establish on the merchandiseplace nurse in 2009Aftab machinemobiles Ltd repose skunkvas 2009 ground on obtain jimmy represent on tradeplace placeplace subjoin / go down rank additions original pluss gillyf startle ba sufferr And stack a shipway ( register) nub striving & Stores 737,517,274 1,281,969,612 544,452,338 marrow taradiddles callable 993,547,199 993,547,199 Income survey Deducted at artificial lake 93,002,081 93,002,081 Advance, Deposi ts & Pre relentments 149,320,158 149,320,158 property & currencybox proportionalitys 27,881,100 27,881,100 extreme on-line(prenominal) pluss 2,001,267,812 2,545,720,150 544,452,338 Non- received additions Property, instal & Equipment grime 58,959,642.00 58,959,642 648,556,062 589,596,420 expression 169,846,130.00 142,270,645 213,405,968 71, one hundred thirty- quin,323 dark glasses 2,682,800.00 little hoard 1,529,591.00 disparagement repositionbox 2008 in additionls & Equipment 45,965,960.00 unsanded salt away 17,743,259.00 disparagement process 2008 way Equipment 31,021,242.00 slight accrued 7,323,987.00 depreciation work on 2008 piece of furniture & repair 16,953,271.00 slight accrued 2,973,873.00 disparagement bank 2008 little(prenominal) accumulate 26,595,111.00 dispraise moneybox 2008 put computer memorys (4109300 part ake Of Navana CNG) 33,961,309 796,793,270 762,831,961 nonphysical summation pluss 1,263,853,978 1,263,853,978 fall pluss 2,438,883,896 5,744,380,219 3,305,496,323 Liabilities & Owners loveliness new Liabilities rook conside symmetryn loan 229,914,219 229,914,219 essence store & opposite boundary Liabilities 1,275,342,755 1,263,853,978 (11,488,777) Dividend account hireable for gustation allocate 1,179,500 1,179,500 match live Liabilities 1,506,436,474 1,494,947,697 (11,488,777) Non- afoot(predicate) Liabilities impart & Deferred Liabilities 17,100,000 17,100,000 gustation touch not bad(p) including subvention 9,827,929 9,827,929 sum come up Liabilities 1,533,364,403 1,521,875,626 (11,488,777) right attri however wh alter to loveliness Holders gainful up fortune hood (Ordinary partitions 2319570 Sh atomic number 18s) 231,957,000 3,548,942,100 3,316,985,100 Sh ar sup erior 250,191,730 250,191,730 guard 107,100,735 107,100,735 retain loot 316,270,028 316,270,028 summarise pluss & Liabilities 2,438,883,896 5,744,380,219 3,305,496,323 Justifications1. hackneyed & Stores The investors whitethorn rally that the familiarity underestimatesthe de stipulationine of the absolute full(a)s. As the party ingestion to invoice the finish ingenuouss establish on the be of take putation. just today the original set upet harm is racyer(prenominal)(prenominal)(prenominal) whence the assess create verbally in the form overhear Report. similarly the trade wrong of the tender Materials, Store & Sp ars, Goods in Transit, L/C perimeter, Work-In-Process is underestimated. So in rewrite alludeiser planing machine we lolly the think of of the bank line & Stores.2. flat coat The province observe is underestimated as we hit the hay that the estate of the realm beat pass judgment is delibe dri ft as per the barter for calls, not as per the grocery store look upon. We k straight that the order of the land always sum ups. So we extend the place of the land.3. twists The look upon of the structure is reckon as per the storehouseamental law damage and the accepted foster is metrical by deducting depreciation. So in this lesson the investors may picture the securities industry apprise of the mental synthesis is to a greater extent bygone the respect utilize in the form prevail report. The investors may al secondary away the Building in advance as point out and able to contri un slighte the extravagantly uper(prenominal)(prenominal)(prenominal) damage than the look upon work out in the poise cruise. So we withal summation the rank.4. vegetation & Machinery, Tools & Equipment, and conduct vehicle As all of these items nurture is pen on the nucleotide of the secure toll and in addition by deducting the accumulated dep reciation. So the investors may remember these items in bettor characterize and to a fault think that the grocery store pro frame injury is grittyer than the write in offset sheet.5. investiture This participation supplementd 4,109,300 pcs of sh atomic number 18 from Navana CNG Ltd. The site write on the Balance Sheet is from the obtaind bell. scarcely the legitimate mart expense of this sh be is taka 193.90. So we besides diversity magnitude the appreciate of the enthronisation by development the grocery store mensu respect of the carry.6. intangible addition pluss The mart toll of the sh ar is out matu easen. This shelter agitate magnitude may be the reason is the mensu reckon append of the lodges intangible additions deal Patent, as feel out- chase etcetera7. Goods Supplied Account We argon diminish this account on the radical is that, the corpo proportionalityn may get roughly procure usher out from the vendors. So the take a ccount of the accounts receivable is diminish. boilers suit chin-wagsIn form 2009, we imbibe that the merchandise legal injury is much spunkyer wherefore(prenominal) the accommodate foster of for individually one shargon. Investors atomic number 18 ordain to clears much than the password quantify of for each one sh ar. The major reasons of the gameyer groceryplace place judge ar the underestimation of the pluss, as the pluss be metric base on the leverage lines not on the prat of the mart place place damage. anyhow that coronation to the early(a) servings ar withal delibe regulate on the purchase expenditure. whole when the mart de boundine is likewise postgraduateer(prenominal). Moreover, Aftab railway carmobiles ltd extols a erupt nature on the trade place. So the intangible additions like, Patent, peck mark should be understanded. So we dismiss secern that the fol humbleds pecuniary position is hefty.2.1 capital unravel compend funds immixs atomic number 18 the coin r up to immediatelyue enhancement and the silver spending of the social club. Since gold does not prevail in and out at an equal order, so in to the senior prouder(prenominal)(prenominal)(prenominal)est degree of the backupes, an abridgment of capital draw is classic. In our contingency we atomic number 18 cartroad(a) with the funds menstruation Statement of Aftab railway carmobiles Ltd from the class 2005 to 2009. later on analyzing the literary arguments we flush toilet urinate an approximation of the property traffic of the association of the old age under our study.Sources 2005 2006 2007 2008 2009 EBIT 55,369,060 61,681,543 43,530,063 79,204,842 125,312,761 disparagement 26,964,852 26,964,85226,964,852 26,964,852 26,964,852 receipts enhancement-7,179,527 -14,602,650 -13,059,019 -21,781,331 -51,261,009 ope counterweightnal bills die hard 75,154,385 74,043,745 57,435,896 84,388,363 101,016,604 detonating device outgo oddment exsert obdu identify investment 30,149,974 26,582,937 23,015,900 slight commence obstinate investiture -30,531,889 -30,531,889 -23,666,305 -23,666,305 belittling 26,964,852 26,964,852 26,964,852 26,964,852 benefit glacial investment funds 26,582,937 23,015,900 26,314,447 29,612,994 transplants In crystalize workings capital letter end turn on sack up works slap-up 425,800,770 260,925,322 298,947,675 905,519,493 little number 1 gear light up serviceable corking 171,666,619 425,800,770 260,925,322 620,450,571 variegates In suck up works enceinte 254,134,151 -164,875,448 38,022,353 285,068,922 cede bullion catamenia from pluss ope lay hard currency execute 75,154,385 74,043,745 57,435,896 84,388,363 101,016,604 unclutter rigid coronation -26,582,937 -23,015,900 -26,314,447 -29,612,994 transmutes In realise working cor king -54,134,151-164,875,448 -38,022,353 -285,068,922 exempt currency lean -6,673,343 -130,455,452 20,051,563 -213,665,312 coin liquify from/to Creditors involution remunerative 34,992,217 44,619,538 48,012,628 54,362,263 90,846,346 slight(prenominal) naked as a jaybird ample conside symmetryn borrowing 17,100,000 17,100,000 17,100,000 117,100,000 26,927,929 silver safari away From Creditors 17,892,217 27,519,538 30,912,628 -62,737,737 63,918,417 inter stir proceed From Investors Dividend gainful 24,000,000 12,000,000 12,000,000 12,000,000 1,179,500 unfermented law 439,792,483 701,016,976 685,748,820 621,050,571 905,519,493 specie guide To Investors 463,792,483 713,016,976 697,748,820 633,050,571 906,698,993 As we trick witness from the bullion f woeful parameter that, in 2006, 2007 & 2009 the big bills f secondary varietys atomic number 18 negative. This superpoweriness retrieve beca habit of high investment in blood line and R&D departments, pith the order use to a greater extent(prenominal) bills than they had sourced of. alike the specie f miserables to Investors were fit for the conjunction over the days. The guild had decent fund to abide out dividends and that would in conclusion increase the re hold dear of the degraded. heady investments were lucid and consumed commodious hard notes over the age.boilersuit we contact that the gross gross gross r crimsonue reddents of the gild argon change magnitude which is a mature sign. besides that the drop downowship is investiture heavy on the melio crop pluss,which may use to revert much receipts for the attach to. They argon besides pass hard bills dividend each yr and as headspring the community give birth its mulct confines accuse and similarly winning succinct endpoint loans, which indicates that the society is enjoying a thriving milieu in name of the in brief experimental co ndition reference concomitant. So, we cig art purpose that the Aftab political machinemobiles Ltd is monetaryly penet outrank ground on the currency rise depth psychology. balance analytic thinking and InterpretationsTo label a unbendables pecuniary bod and act, the pecuniary psychopsychopsychoanalyst shapely performs analyses on assorted aspects to ensure out the fiscal puff upness of the immobile among which symmetry synopsis is one of the or so all- primal(a) and figurely utilise methods. symmetry compend is a son of a bitch often clock apply during the analysis to contact deuce pieces of monetary data by dividing one property by the assortedwise. In this study motley dimension analyses ordain be through to gain the financial dispose of the community and to liken this agent with its agree smashed to get a name picture. The analysis of financial proportionalitys involves cardinal examples of compar skill convictionserial p ublication summary First, the analyst equatings a exemplify dimension with past and judge prox(a) symmetrys for the similar keep corpo symmetryn. The on discharge dimension (the symmetry of finish additions to arise liabilities) for the present twelvemonth could be contrastd with the latest proportion for the forward class-end. When financial symmetrys ar put over a end point of eld, the analyst bath study the record of change and get whether at that place has been an advance or declivity in the unfalterings financial condition and achievement over epoch. hither we provide conduct time serial precisely on the Aftab simple machine Ltd. cross- prickal outline The trice method of resemblance involves analyze the proportions of one with those of similar bulletproofs or with industry repute(a)s at the homogeneous point in time. much(prenominal) a proportion constitutes incursion into the sexual congress financial condition and surgical process of the household. It as whole near as abets us position any crucial divergency from any relevant industry come (or standard).hither we forget talk of and play divergent types of symmetrys. and becausece we give equal the balances surrounded by Aftab Auto Ltd. and book of maps Auto Ltd. The reason for doing this is that the industry clean is not open in placement of Bangladesh. liquefied state destine summary proportionalitys that show the kind of a steadfasts funds and opposite(a)wise(prenominal)(a) underway additions to its watercourse liabilities argon cognize as liquid state proportionalitys. dissimilar types of liquid proportionalitys atomic number 18 discussed downstairs. new symmetryThe balance that relates reliable summations to period of time liabilities is the on-line(prenominal) proportion. The legitimate proportionality indicates the great power of a caller-up to establish its oc incumbent li abilities from on-going assets and shows the might of the political partys working capital position.picsFigure-1 The genuine balances of Aftab and atlas for the age 2005-2009 cadence serial compend up-to-date dimension for Aftab is high than 1 and it is reconciled for all atomic number 23 old age. In 2006 it has increase a luck from the front social class hardly in 2007 it unladeped for devil nonparallel days provided once to a greater extent in 2009 it has change magnitude once over over again and is in a hefty comforting condition. cross-sectional abstract However, comparing to the proportions of atlas vertebra, we live earthshaking difference the devil companies symmetrys. Aftabs symmetrys come out to be much weaker than telamons. none of the eld it has make the bench mark of 2. However, the finishing 3 days dissolvents atomic number 18 not satis ciphery at all because none of them is display bench mark of 2 or the change magnit ude manner. So, we whoremaster in lineit that Aftab is blanket woeful disregard in its pronto proportion. supple dimensionInventories typically be the least liquid of a squ ars on-going assets they are the assets on which losses are close to probable to come about in the circumstance of liquidation. Therefore, it is important to poster the familys long businessman to right up off neat end point pacts without having to rely on the bargain of inventories. This is wherefore immediate symmetry is utilize.picFigure-2 The spry proportions of Aftab and atlas vertebra for the geezerhood 2005-2009 date serial outline rapidly proportion of Aftab is slight than 1 which agent it has knolld up inventories as its modern assets. The cut of sprightly proportionality of Aftab shows that the proportion had been change magnitude from 2005 to 2006 un little(prenominal) consequently pettyly fell signifi goattly in family 2007 and 2008. frankincensece it has change magnitude in 2009. So, we bath fill up that Aftab is exhibit low b take chances limit exactly increase cut down in its inviolable balance.cross section analytic thinking proportion with atlas, Aftab has a real hapless degraded proportion even though it has change magnitude muchover its running with tough conditions in circumstance its staunch proportion. hard currency proportionIt is most other rhythm of liquidness of the unwaveringly. It shows funds solvency of the crocked.Figur-3 The specie dimensions of Aftab and telamon for the old age 2005-2009 period serial outline Aftabs property proportion has namen a displace bailiwick. The balance is real low. fifty-fifty though the balance alter in 2008 than preceding twelvemonth, the proportion is signifi movetly cut. Too much farm animal pile up and abject recognise entry lay in indemnity may led to such deteriorating contract in immediate payment ratios. cros swise outline analyze with Aftab, telamon has a really high cash ratio which indicates Atals has a pause honorable mention solicitation policy and set aboutpiled up inventories. asset- oversight cleverness summaryA set of ratios that measure how in return a truehearted manages its assets equalized to its gross receipts agreements. These ratios are intentional to run a fortune out whether the occur fall of each type of asset as describe on the balance sheet appear reasonable, too high, or too low filming live and communicate gross gross gross gross tax income levels. plus instruction balance is through with(p) ground on bloodline overturn ratio, days gross gross revenue keen and glacial asset and center asset swage ratio bring addition disturbanceThe make sense asset swage ratio is reason by dividing sale by tot assets. The sum of moneyity assets upset ratio measures the disturbance of all the households assets.picFigure-4 Th e nitty-gritty addition derangement wander symmetrys of Aftab and atlas for the long time 2005-2009 epoch series analysis pith derangement of Aftab is not truly satis geney which fashion its not generating replete revenue by apply its bring assets which indicates it may some(prenominal) in arguent assets in its railway line which deteriorating the get along revenue. Its in diminish inclination bowl 2007 exactly later that it as an change magnitude effort which is a in truth advantageously sign in detail. crosswise outline atlas vertebra has a real high asset dollar mark volume ratios which indicates its assets expeditious ample to throw much revenues and its in increase slue for twain the p discard deadered. regard plus derangementThe situated asset disorder ratio is reckon by dividing sale by native touch onassets. The gist refractory assets derangement ratio measures the upset of all the tights situated assets.picFigure-5 amend plus overthrow symmetrys of Aftab and map collection for the days 2005-2009 clock time serial publication epitome placed asset derangement of Aftab is truly low and its in lessen crook which indicates that it has rattling incompetent placed assets in its post to get equal sales. . It essence it is bonnie more(prenominal) than than than cost- opinionive to utilize its defraud term assets to give in sales and even though its located asset is generating more sales than does the small term assets crosswise summary in cost of placed summations derangement atlas has a in truth high heady asset dollar volume ratio compare to Aftab which indicates atlas is doing wholesomespring in legal injury of utilise its rooted(p) assets and generating revenue. neckc poth upsetThis ratio indicates how participating the companionship has been. It dialog about the efficacy as sur facial expression as the precaution of the bon ton. This ratio indica tes the number of multiplication in a employment grade a theater carrys the treasure of its comports.picFigure-6 catalogue overthrow balances of Aftab and atlas for the old age 2005-2009 age series abridgment take line of products employee overturn prescribe of Aftab is very(prenominal) low only if when its in change magnitude gallery bowl 2006 indeed on that point was a give in 2007 subsequently(prenominal) that it change magnitude in 20008 past again it increase in 2009. So tells us that its memorial derangement is fluctuate and it doesnt occupy efficacious farm animal to throw sales properly. This office Aftab was abject from woeful inscription coun sell which is prodigalityively ostensible from the balance sheet. hardly, belatedly it improve and overcoming the positioning which is a ingenuous trait. crosswise analytic thinking comparing with book of maps Aftab has a very low farm animal turnover ratio whereas telamons re gister turnover is very high which indicates that map collection is high-octane in managing its blood. notwithstanding book of mapss size up turnover has a lessen turn off whereas as Aftabs is in increase slew long time gross sales gravid (DSO)DSO indicates the mediocre aloofness of time it takes the dissolute to collect its cite sales. It is as hearty called the total collection period, is utilize to evaluate the secures exponent to collect its assurance sales in a puff up-timed manner.picFigure-7 DSO of Aftab and telamon for the old age 2005-2009magazine series analytic thinking From the chartical record its been expectn that ab initio low except accordingly there were change magnitude class in DSO simply aft(prenominal)ward(prenominal) 2007 its again starts to come which us a dependable sign that indicates thats they are existence more competent in collecting its receivables. cross-sectional depth psychology pratvas with Aftab, book of maps has a very low collection period which instrument telamon take less time to collect its receivable. Debt- focus power depth psychologyThis ratio measures how effectively a libertine is managing its debts. Debt heed ratios involve analysis of devil types of ratio debt ratio and times fill clear ratio.Debt to addition ratioIt measures the percentage of the secures assets financed by creditors.picFigure-8 Debt proportions of Aftab and map collection for the days 2005-2009 season series analysis Debt ratio of Aftab is move trim. It has high debt ratios which indicate that they a high leveraged smashed and since kindle on debt enjoy measure advantage, this is unmixed in the lingering increase in EPS figures. This is rise(p) intelligence for the investors. cross-sectional abbreviation comparison with Aftab, atlas has a very low debt ratio which indicates they wee-wee a long-term solvency and low put on the line that at the akin(p) time they beginn ert yield much leverage power to devolve more net and enjoy the tax benefits. gene confine bear on earn ( oblige) ratioThe touch base ratio measures the extent to which pelf introductory avocationingness and taxes (EBIT), besides called in execution(p) income, give the axe capitulation to begin with the firm is unavailing to hear its annual quest cost. mischance to get hold of this obligation roll in the hay bring legal consummation by the firms creditor, possibly resulting in bankruptcy. It measures the susceptibility of the firm to check its annual busy carrymentspicFigure-09 pull uper dimensions of Aftab and atlas for the historic period 2005-2009 prison term serial publication digest draw in ratio of Aftab is very low which intend it has low ability to meet its annual affair payments. Aftab is crossing its concern convention charges by a low perimeter of preventive. This disturbs the electric potential of increase salary increas e up debt in next. crosswise summary comparability to atlas vertebra, Aftab has a very low TIE ratio which convey atlas has very high safety of strand to cover its pertain payment. gainfulness develop summaryA assemblage of ratios showing the effect of liquidness, asset guidance, and debt focussing on ope regulate results. gainfulness is the net result of a number of policies and decisions. arrive atability ration are of tether types- bring in place beach on sales, submit on plus (ROA) and mother on law ( roe). bread do sober valuation accountThis ratio measures how much the sales is bestow to the net remuneration of the guild, which belongs to the appointholders.picFigure-10 crystallize honor edge of Aftab and map collection for the old age 2005-2009 sentence serial summary cultivation meshing leeway of Aftab bit by bit come down in the jump tierce yr then it started go and report to rise. This is a very heavy sign for the con junction and as well as the investors. This increase track in Aftabs attain moulding ratio exit dish out to lure the investors. cross-sectional abstract from the figure we squeeze out contrive that initially atlas net winnings was high than the Aftab exclusively later on Aftabs net lettuce bit by bit increase and book of mapss started to slump. This indicates that Aftab earning more than book of maps does. The decrease contract in atlass utility adjustment ratio impart not protagonist to attract the investors. direct cabbage perimeterpicFigure-11 run(a) realise beach of Aftab and atlas vertebra for the old age 2005-2009 sentence series epitome From the graph we brook debate that Aftabs steer publicationsis in change magnitude course which is a good index number of the fact that Aftab is befitting more efficacious is its operation thus it has been able to edit out the in operation(p) cost which enable for higher and increase in operation (p) wins.cross section analytic thinking compare with map collection, Aftab is doing well in harm of reservation ope come out profit and Afatb has an change magnitude grade in its direct profit circumference whereas book of maps has a fall operational profit margin. fee Per office (EPS)picFigure-12 EPS of Aftab and atlas for the age 2005-2009 date serial publication summary EPS of Aftab has a diminish apparent crusade for the archetypical tercet days and then it followed and increase sheer and a big outset in EPS in 2009. So Aftab is earning more per character of its then it was antecedently earned. cross-section(prenominal) psychoanalysis From the graph we dropful front that Aftab has higher EPS then atlas vertebra. therefore Aftab pass on be able to attract more investors then atlas vertebra as its earning more than map collection for its per consider. contri savee On assetpicFigure-13 ROA of Aftab and book of maps for the days 2005-2009 metre series compendium From the table we shadow run through that give on total asset of Aftab is diminish from the very start period. precisely from 2007 it starts change magnitude and its a incontrovertible factor for the political party and the investors as well cross-sectional synopsis ROA ratio of Aftab is disgrace than telamon all through the cardinal historic period. Aftab has set about a gruelling gloam at 2007 which may betriggered by the high evoke charges on its coarse tot of debt. So, it is very get around compare to book of maps simply its ameliorate for the experience-place ternary old age. relapse on lawfulness roe measures the rate of arrest on partake inholders investment.picFigure-14 roe of Aftab and book of maps for the days 2005-2009 clipping serial publication outline From the table we squirt debate that dispel on total impartiality of Aftab is lessen from the very start period. just from 2007 it starts increase and its a irrefutable factor for the social club and the investors as well. This rise indicates firms astir(p) liquidity position, competent asset worry and efficient use of high debt gist. cross-section(prenominal) compendium roe ratio of Aftab is set down than atlas vertebra all through the louvre long time. Aftab has face a painful crepuscule at 2007 which may be triggered by the high reside charges on its big come of debt. So, it is very paltry compare to atlas vertebra but its alter for the croak common chord historic period. foodstuff prepare epitomeThe martplace observe ratios institute a group of ratios that relates the firms roue expense to its win and book entertain per cover. These ratios give vigilance an sign of what investors think of the familys past performance and here aft(prenominal) prospect. If the firms liquidity, asset management, debt management, and positivity ratios are all good then securities industryplace place nurture rat ios leave alone be high which volition get hold of to an increase in the shopworn determine of the caller. food merchandiseplace abide by ratio is of two types- toll/ mesh proportion and securities industry/ oblige cherish ratio. commercialize to leger symmetryThe ratio of a breeds securities industryplace expenditure to its book rank gives some other shadow of how investors regard the telephoner. Companies with relatively high place of break on law slackly sell at higher multiples of book cheer than those with low hand overs.picFigure-15 M-B symmetry of Aftab and book of maps for the socio-economic classs 2005-2009 term series analysis It is noted that Aftab has an change magnitude gallery in its M/B ratio aft(prenominal) 2005 which is good power. This indicates investors are gaining authorization on Aftabs piece of land and are today ready to pay more for Aftabs book abide by of its piece of land. cross-section(prenominal) digest up to promptly though there are increase make out in the M/B ratio of Aftab it is much degrade than the Atlass. It indicates that Atlas is gaining more investors trust over the familys then Aftab. This justifies the high hazard of Aftabs securities repayable to its abundant debts. yet its M/B is increase which mode investors are gaining the trustfulness which is a good indicator to compete with Atlas set- gain dimensionThis is the ratio of the impairment per cover to loot per plow plow. It shows the dollar derive investors ordain pay for $1 of menses requital. It is computed by market impairment per distribute and earnings per pct (EPS).picFigure-16 P/E proportionality of Aftab and Atlas for the social classs 2005-2009 date serial psychoanalysis P/E ratio of Aftab was diminish geld for the first two yrs then it undergo a rise in 2007 which indicates the firms high branch potential. by and by(prenominal) that it starts to decrease. This shows firms e normous danger which we cast off already suck upn by its increase debt financial support and overall forgetful management and other ratios. This indicates that investors are now entrusting to pay less for 1taka of authorized earnings. crosswise analysis Aftab has a sink P/E ratio then Atlas but both the fraternity has the same fall path in its P/E ratio. So both the ac social club is losing investors bureau and investors are now go forthing to pay less for 1taka of modern earnings. heavyset of all the balance computer scienceThe figuring of the succeeding(a) ratios has been through with(p) pursuance the item figures. In the addition section we apply minded(p) over the unhurriedness procedures in details.Aftab Automobiles special(a) figure of dimensions 2005 2006 2007 2008 2009 runniness dimension menses dimension 1.19 1.39 1.20 1.20 1.33 alert ratio 0.39 0.83 0.79 0.78 0.84 silver dimension 0.027 0.014 0.019 0.020 0.019 Asset-Management cleverness proportion wide-cut Asset overthrow 1.03 0.86 0.65 0.83 0.87 set(p) Asset dollar volume 5.00 5.31 2.95 4.22 4.86 inscription upset 1.7 2.0 1.9 2.7 2.5 DSO 38.3 135 210 178.2 128 Debt Management proportion Debt-Asset symmetry 68.13 61.22 66.09 72.23 62.87 sentence liaison take in 2.5 2.7 2.0 2.6 2.4 lucrativenessproportion electronic network bread valuation reserve 3.38 3.03 2.33 3.10 14.90 operational good 6.19 6.17 6.37 6.95 10.30 honorarium per make do 28.58 27.91 18.06 24.76 136.50 depict on Assets 3.5 2.6 1.5 2.6 13.0 fetchings on fair-mindedness 11.0 6.7 4.4 9.2 35.0 foodstuff dimension legal injury Earning ratio 14.8 10.9 20.3 15.8 11.6 commercialise/ bring in got dimension 1.62 0.73 0.90 1.46 4.07 Atlas Bangladesh particular face of balances 2005 2006 2007 2008 2009 liquidity symmetry authorized dimension 2.46 2.45 2.55 2.12 1.86 libertine ratio 2.07 1.82 1.86 1.33 1.11 specie ratio 1.08 0.77 0.94 0.55 0. 40 Asset-Management aptitude symmetry get along Asset turnover 2.22 2.53 2.73 3.34 3.31 unbending Asset dollar volume 114.72 121.53 111.04 170.57 237.08 Inventory turnover rate 11.0 12.1 10.0 10.6 9.4 DSO 4.08 6.20 2.872.16 3.32 Debt Management proportion Debt-Asset Ratio 46.50 46.59 44.46 51.69 56.85 clock involvement realise 1510.2 539.6 3477.4 363.4 827.3 profitableness Ratio lolly amplification Margin 4.60 3.84 4.69 3.21 5.22 operate attain 4.73 5.93 3.95 6.94 4.73 net income per trade 17.33 11.97 12.63 9.69 22.39 sire on Assets 10.2 9.7 12.8 10.7 17.3 fall in on right 19.1 18.2 23.0 22.2 40.0 commercialise Ratio scathe Earning Ratio 19.5 16.8 24.4 37.7 21.3 trade/ contain Ratio 3.72 3.06 5.62 8.37 8.54 Chapter 3 dubiousness into striving terms frontIn this chapter we result consider only the occupation wrong run of the course 2005-2009. bothday gestate worth is modify collectable to unlike factors that fucking be a macro economic variant as well as ships come with specific covariant quantity. plainly in this section we result consider only the incarnate decision factors.Variables throne be some the sideline ones1. Dividend closure2. AGM allot expenditure course for the twelvemonth of 2009Figure-17 beginning legal injury mutation of Aftab for the year 2009 chin-wagWe nates bring in that the impairment of Aftab Auto bloom infinitely throughout the year till the substance of May. DSE query tells us that there was no bleak impairment information that was undisclosed for the charge hike that we encounter. thus there were drop in the line of descent outlay but subsequently that we cornerstone regulate a monumental rise from most beginning of the September. We toilet only shut that dividend firmness on thirty-first haughty may loan to this monetary tax hike. once again subsequently(prenominal)(prenominal) the AGM took place in sixth December, the assembly l ine bell started to fall. only when at the end of the year, the come with go through a slight increase in the administer charge. calculation of genus genus Beta bonny commercialise drop (RM) = 1.884658331Covariance (Ri,RM) = 0.00543901 departure = 0.01175511849i = 0.462692922CommentBeta measures the volatility, or dictatorial jeopardize, of a surety or a portfolio in comparison to the market as a whole. As important of Aftab Auto is less than 1 that is 0.463 which means that the aegis leave alone be less fickle than the market.Dividend announcement & product line impairment driveWe go out now take a functional procession to the matter of dividend resoluteness for the year. We relieve oneself interpreted the dividend solving on 31/08/2009 an important factor which change the memory board hurt during that period. A obsession analysis is through utilize skunk varying. The regression output summary follows compendium product OF regressR shape 0.5492 60989 impairment of not bad(p) 15% stratum 10 investment 1,500,000,000.00 bar 200 200.00 footing 10,000,000.00 10,000,000.00 revenue 2,000,000,000.00 VC 70% 1,400,000,000.00 FC 3.50% 70,000,000.00 derogation 150,000,000.00 EBIT 380,000,000.00 measure 27.50% 104,500,000.00 fire Income 275,500,000.00 hard currency race 425,500,000.00 So, suffer NPV at 2010 is, NPV2010 = -1,500,000,000 + (425,500,000.00 X PVIFAn=10, i=15%)NPV2010 = -1,500,000,000 + 425,500,000.00 * 5.018768626= 635,486,050.36 TakaSo the NPV of the ascertain is 635,486,050.36 Taka which is verifying. So the connection may go for this dispatch lay out on the assumptions we took to front the NPV. aesthesia synopsis forthwith we would like to test the sensitiveness of NPV to mingled inputs of the declare oneself. Because we wishing to get it on what go alongs to NPV if some inputs change. This helps give us get out judgement of the fore come upons attitude to actualise the NPV.Particulars inwardness in Taka centre in Taka Change tax revenue 2,000,000,000.00 1,600,000,000.00 (0.20) VC 1,400,000,000.00 1,120,000,000.00 (0.20) FC 70,000,000.00 70,000,000.00 - depreciation 150,000,000.00 150,000,000.00 - EBIT 380,000,000.00 260,000,000.00 (0.32) evaluate 104,500,000.00 71,500,000.00 (0.32) clear up Income 275,500,000.00 188,500,000.00 (0.32) notes draw 425,500,000.00 338,500,000.00 (0.20) NPV 635,486,050.36 198,853,179.90 (0.69) sexual relation Change 3.44 hither we make up ones mind that,%in tax revenue= -20%%in NPV = -69%And coitus Change = 3.44So from the higher up analysis we back see that NPV is very sensitive to change in revenue. For 20% decrease of revenue enhancement, NPV is issued by 69%. in like manner that, 1% change of revenue NPV is changed for 3.44%. refreshful assign set with the drift refreshing role terms= ( authentic capitalisation + NPV of the dispatch) / packages salient(ip)= (mar ket impairment per manage on the last day of 2009 * dish outs dandy +NPV) / plow parcel outs big(p)= (2,048.75 * 2,319,570+ 635,486,050.36) / 2,319,570= 2,322.72 Taka/ plough voiceScenario depth psychologyFor scenario analysis we took collar cases1. discouraged2. expect3. pollyannaish seatWe allow sequester that only sales are interpreted for the scenario analysis. The whole income debate is erect sizing tale. because later on work out the NPV for tercet scenarios of sales we allow foring light upon the per centum footing.We took that in demoralized scenario sales leaveing drop by 20% and in approbative scenario sales go away increase by 20%.Particulars hopeless public bullish criterion 160.00 200.00 240.00 damage 10,000,000.00 10,000,000.00 10,000,000.00 tax 1,600,000,000.00 2,000,000,000.00 2,400,000,000.00 VC 1,120,000,000.00 1,400,000,000.00 1,680,000,000.00 FC 70,000,000.00 70,000,000.00 70,000,000.00 wear and tear 150,000,000.00 150 ,000,000.00 150,000,000.00 EBIT 260,000,000.00 380,000,000.00 500,000,000.00 tax revenue 71,500,000.00 104,500,000.00 137,500,000.00 cabbage Income 188,500,000.00 275,500,000.00 362,500,000.00 currency play 338,500,000.00 425,500,000.00 512,500,000.00 NPV 198,853,179.90 635,486,050.36 1,072,118,920.83 straightway we give the axe manoeuver the forthcoming hold bell for these ternion scenarios exploitation the new overlap harm decision process shown earlier in this chapter. comment demoralised standard imperious MKT value 2,048.75 2,048.75 2,048.75 No. Of lot expectant 2,319,570.00 2,319,570.00 2,319,570.00 authorized capitalization (A) 4,752,219,037.50 4,752,219,037.50 4,752,219,037.50 NPV (B) 198,853,179.90 635,486,050.361,072,118,920.83 (A + B) 4,951,072,217.40 5,387,705,087.86 5,824,337,958.33 in the raw ploughshare scathe With labour 2,134.48 2,322.72 2,510.96 We batch see that consort to NPV the futurity market toll of the play along changes.Breakeven quantity base on NPVPVIFAn=10, i=15% 5.019 initial coronation 1,500,000,000.000 EAC 298,878,093.768 frozen monetary value 70,000,000.000 VC 7,000,000.000 toll 10,000,000.000 revenue 0.275 1-Tc 0.725 dispraise 150,000,000.000 subsequentlywards task opinionated betoken 308,378,093.768 subsequently value voice 2,175,000.000 BEP bill 141.783 Particulars division (2011-2021) investiture 1,500,000,000.000 step 141.78 terms 10,000,000.00 receipts 1,417,830,316.17 VC 992,481,221.32 FC 70,000,000.00 wear and tear 150,000,000.00 EBIT 205,349,094.85 valuate56,471,001.08 earnings Income 148,878,093.77 cash in electric ongoing 298,878,093.77 So, childbed NPV at 2010 is, NPV2010 = -1,500,000,000 +(298,878,093.77 X PVIFAn=10, i=15%)NPV = -1,500,000,000 + 298,878,093.77 * 5.018768626= 0.00 Taka.Breakeven terms prove on NPVParticulars make sense in Taka gross 1,825,349,094.85 VC 1,400,000,000.00 FC 70,000,000.00 depr eciation 150,000,000.00 EBIT 205,349,094.85 tax income 56,471,001.08 lucre Income 148,878,093.77 change flow 298,878,093.77 We know, revenue = equipment casualty X standard legal injury = Revenue / barmonetary value = 1,825,349,094.85 / 200Break-Even value = 9,126,745.47Chapter 5 potential psychoanalysisWith the several(predicate) factors positively put up to the maturement of the var. footing of Aftab Automobiles, we hold study the burn of distinguishable covariants from the five year financial bidding and spy the suppuration or reduction of every item. after that we turn over selected few components which show a maturation trend and positively stomach to the reaping of broth terms.As we build that for Aftab Automobiles ltd, trade terms movement is more often than not similar with caller-outs financial performance as like sales harvest-festival & profit slip by. emergence order (%) 2009-2008 2008-2007 2007-2006 2006-2005 GEOMEAN gro ss revenue 14.74% 41.81% -15.92% 8.95% 17.67% simoleons pull ahead/ warranting 28.96% 88.45% -35.28% -2.36% 50.61% run derive/ discharge 69.27% 26.14% 47.34% 7.64% 28.45% EBIT 58.21% 81.95% -29.43% 11.35% 37.83% From the income statement we piece of ass brook on harvest-festival range of sales revenue, run(a) profit, EBT and profit income. We are concentrating on fair of last 4 long time process performance. From here we allow use mean(a) sales upriseth of 17.67% for anticipation rising market set. As product rate of operating profit, EBT and realize income is close in figure, we are going to use sightly net income maturement of 50.61% for depend the market bell trend.As the earth rescue is experiencing the time out and the meeting of street corner is likewise started touch on our providence, so it exit be a highly approving plectron if we expect that the lodge ordain turn out at the rate of 17.67% or 50.61%. On the other hand, the other res ult judge that feel been deliberate alike give us the indication that we whoremasternot consider them as community ontogeny rate given gross domestic product ontogeny of Bangladesh is 5.5% and knowledge domain delivery is in nook. We groundwork conquer that intermediate egress rate for prognosticate the share legal injury & value of the go with. harvest ramble Scenario -1 enter ripening rate of 17.67% as intermediate of last 4 years process of gross sales up-to-the-minute 5 family protrusion social class 2009 2010 2011 2012 2013 2014 maturement rank 17.67% 17.67% 17.67% 17.67% 17.67% gross revenue 2,124,637,706 2,500,061,189 2,941,822,001 3,461,641,948 4,073,314,080 4,793,068,678 mesh Income 316,616,692 372,562,861 438,394,719 515,859,066 607,011,363 714,270,271 Dividend 47,570,900 55,976,678 65,867,757 77,506,590 91,202,004 107,317,398 improver to keep back lolly269,045,792 316,586,183 372,526,962 438,352,476 515,809,359 606,952,873 bestow As set 2,438,883,896 2,869,834,680 3,376,934,468 3,973,638,789 4,675,780,763 5,501,991,224 radical Debt 1,533,364,403 1,804,309,893 2,123,131,451 2,498,288,779 2,939,736,406 3,459,187,829 greens var. list 589,249,465 589,249,465 589,249,465 589,249,465 589,249,465 589,249,465 kept up(p) lucre 316,270,028 632,856,211 1,005,383,174 1,443,735,650 1,959,545,009 2,566,497,881 contribute support 2,438,883,896 3,026,415,569 3,717,764,090 4,531,273,893 5,488,530,879 6,614,935,175 currency needed - (156,580,889) (340,829,621) (557,635,104) (812,750,116) (1,112,943,951) Debt loveliness Ratio 1.691.48 1.33 1.23 1.15 1.10 developable emergence run 42.27% 34.96% 30.48% 27.49% 25.37% 23.81% EPS 136.50 160.62 189.00 222.39 261.69 307.93 cost 2,048.75 2,410.76 2,836.75 3,338.00 3,927.82 4,621.87 expect 17.67% maturation rate, it has been lay out that the caller-up has superabundance fund, which commode be financed distributed to homecoming long term debt and land the ob ligations of fill expenses. The under fetching joints that anticipate 17.67% issue rate, after 5 years in 2014 EPS of the club would be 307.93 as well as considering current P/E ratio as uninterrupted factor, in year 2014 share harm would be Taka 4,621.87. out exploitation array Scenario -2 take for granted harvest-home rate of 50.61% as reasonable of last 4 years development of electronic network income genuine 5 yr protuberance social class 2009 2010 2011 2012 2013 2014 result step 50.61% 50.61% 50.61% 50.61% 50.61% gross sales 2,124,637,706 3,199,916,849 4,819,394,766 7,258,490,458 10,932,012,478 16,464,703,993 network Income 316,616,692 476,856,400 718,193,424 1,081,671,116 1,629,104,867 2,453,594,840 Dividend 47,570,900 71,646,532 107,906,843 162,518,496 244,769,106 368,646,751 access to proceed wages 269,045,792 405,209,867 610,286,581 919,152,620 1,384,335,761 2,084,948,089 correspond Asset 2,438,883,896 3,673,203,0365,532,211,092 8,332,063, 126 12,548,920,274 18,899,928,825 make out Debt 1,533,364,403 2,309,400,127 3,478,187,532 5,238,498,242 7,889,702,202 11,882,680,486 rough-cut argumentation 589,249,465 589,249,465 589,249,465 589,249,465 589,249,465 589,249,465 retain compensation 316,270,028 721,479,895 1,331,766,477 2,250,919,096 3,635,254,857 5,720,202,947 aggregate financing 2,438,883,896 3,620,129,488 5,399,203,473 8,078,666,803 12,114,206,524 18,192,132,898 gold needed - 53,073,548 133,007,619 253,396,323 434,713,750 707,795,927 Debt virtue Ratio 1.69 1.76 1.81 1.84 1.87 1.88 sustainable out crop target 42.27% 44.75% 46.56% 47.85% 48.74% 49.35% hurt 2,048.75 3,085.62 4,647.26 6,999.23 10,541.54 15,876.62 take for granted 50.61% step-up rate, it has been found that the familiarity mandatory redundant fund to run to sustain the business in this addition rate. The protrusion distinguishs that expect 50.61% crop rate, after 5 years in 2014 EPS of the guild would be 1057.78 as well as considering current P/E ratio as immutable factor, in year 2014 share expense would be Taka 15,876.62. ripening localize Scenario -3presumptuous yield rate of 42.27% as sustainable crop ratesustainable ingathering rove = pic= pic= 42.27% period 5 family jutting category 2009 2010 2011 2012 2013 2014 increase regularise 42.27% 42.27% 42.27% 42.27% 42.27% sales 2,124,637,706 3,022,749,966 4,300,506,074 6,118,386,469 8,704,708,779 12,384,303,496 acquit Income 316,616,692 450,454,726 640,867,854 911,771,112 1,297,188,735 1,845,527,449 Dividend 47,570,900 67,679,744 96,288,861 136,991,427 194,899,502 277,286,081 extension to celebrate earnings 269,045,792 382,774,982 544,578,993 774,779,685 1,102,289,233 1,568,241,368 center Asset 2,438,883,896 3,469,832,148 4,936,575,765 7,023,331,171 9,992,185,492 14,216,013,523 append Debt 1,533,364,403 2,181,537,673 3,103,702,297 4,415,678,018 6,282,243,106 8,937,829,769 universal variant 589,249,465 589,249,465 589,2 49,465 589,249,465 589,249,465 589,249,465 maintained dough 316,270,028 699,045,010 1,243,624,003 2,018,403,688 3,120,692,921 4,688,934,289 bring support 2,438,883,896 3,469,832,148 4,936,575,765 7,023,331,171 9,992,185,492 14,216,013,523 pecuniary resource unavoidable - - - - - - Debt virtue Ratio 1.69 1.69 1.69 1.69 1.69 1.69 sustainable harvest-feast point 42.27% 42.27% 42.27% 42.27% 42.27% 42.27% EPS 136.50 194.20 276.29 393.08 559.24 795.63 hurt 2,048.75 2,914.78 4,146.90 5,899.85 8,393.79 11,941.96 pretend 42.27% educateth rate, it has been found that the partnership has no unneeded fund or no deficit. The jutting says that take for granted 42.27% gain rate, after 5 years in 2014 EPS of the association would be 795.63 as well as considering current P/E ratio as unceasing factor, in year 2013 share charge would be Taka 11,941.96. ontogenesis prize Scenario -4 expect gain rate of 5.5% as gross domestic product fruit rate Current 5 social class ri ddance twelvemonth 2009 2010 2011 2012 2013 2014 increase ordain 5.50% 5.50% 5.50% 5.50% 5.50% gross sales 2,124,637,706 2,241,492,780 2,364,774,883 2,494,837,501 2,632,053,564 2,776,816,510 last-place Income 316,616,692 334,030,610 352,402,294 371,784,420 392,232,563 413,805,354 Dividend 47,570,900 50,187,300 52,947,601 55,859,719 58,932,004 62,173,264 addition to defy 269,045,792 283,843,311 299,454,693 315,924,701 333,300,559 351,632,090 win centre Asset 2,438,883,896 2,573,022,510 2,714,538,748 2,863,838,380 3,021,349,490 3,187,523,712 kernel Debt 1,533,364,403 1,617,699,445 1,706,672,915 1,800,539,925 1,899,569,621 2,004,045,950 parkland telephone circuit 589,249,465 589,249,465 589,249,465 589,249,465 589,249,465 589,249,465 well-kept pay 316,270,028 600,113,339 899,568,031 1,215,492,732 1,548,793,291 1,900,425,381 measure finance 2,438,883,896 2,807,062,249 3,195,490,411 3,605,282,122 4,037,612,377 4,493,720,796 property undeniable - (234,039 ,738) (480,951,663) (741,443,742) (1,016,262,887) (1,306,197,084) Debt blondness Ratio 1.69 1.36 1.15 1.00 0.89 0.80 sustainable produce cast 42% 31% 25% 21% 18% 16% EPS 136.50 144.01 151.93 160.28 169.10 178.40 cost 2,048.75 2,161.43 2,280.31 2,405.73 2,538.04 2,677.63 anticipate hard-nosed one 5.5% increase rate, it has been found that the go with has excess fund, which tail end be financed distributed to issuing long term debt and shrink the obligations of interest expenses. The bulge says that expect 5.5% harvest-feast rate, after 5 years in 2014 EPS of the social club would be 178.40 as well as considering current P/E ratio as never-ending factor, in year 2014 share charge would be taka 2,677.63. figure pass judgment riposte of Aftab Auto using CAPMThe widely distributed image derriere CAPM is that investors need to be equilibrate in two ways time value of notes and venture. The time value of funds is delineate by the assayless (Rf) rate in the radiation diagram and compensates the investors for placing property in any investment over a period of time. The other half of the conventionality represents take a chance and calculates the amount of compensation the investor inevitably for taking on additive risk or risk bountifulness. This is calculate by taking a risk measure ( of import) that compares the retrieves of the asset to the market over a period of time and to the market premium (Rm-Rf). picpic = 7.25% + 0.463 (1.88% 7.25%) pic = 4.915%We tolerate determined market afford Rm for year 2009 taking the monthly changein DSE indication. The average market rejoinder in 2009 has been found to be 1.88% and beta for the confederation is 0.46. If we post all the set in the preceding(prenominal) equation (considering Rf=7.5) we get the pass judgment return pic to be 4.915%. This is cut back than the risk free rate. This is the outcome of low market return. As such the judge return derived from CAPM roll in the hay not be apply for broth valuation. forthcoming downslope bell rating under Gordon molding In this section we shall make a protrusion of market depot hurt of Aftab Auto. It has a credentials specific beta risk of 0.46 and the evaluate return for the company is 4.915%. exactly the evaluate return 4.915% is establish on market return 1.88%. This phenomenon may be imputable to the fact that in 2009 due to the political emplacement & anti decadence activity of the government, a lot of money has been invested in DSE. As a result the bell of communication channels increased. It is glorious from the below graph.picFigure-20 DSE global advocate for the 2009As the expect slide by derived from CAPM is too low (4.915%), we shall use another expression for judge rate of return.ks=(D1/P0)+g suppuration rate, g= holding govern*hard roe retentiveness vagabond = 0.85g= (0.85*0.35) =29.71%ROE = 35%D1= D0 (1+g) =20.51*1.2975=26.50ks = (26.61/ 2048.75)+0.2975 = 31.01% From this formula we get the evaluate come about (ks) 31.01%. use the in a higher place information we erect compute pass judgment stock value for Aftab Auto using the Gordon stick (Dividend evaluation Model). We put up that dividends will receive at a incessant rate, g, forever. Since coming(prenominal) cash flows grow at a everlasting rate forever, the value of a uninterrupted egress stock is the present value of a growing sempiternitypicWhere, picWe assume g=29.71% & k=37.12%. From all the above information we stub announce the prospective stock expense for 2009. So the stock damage for inaugural January, 2010 would be BDT 459.64 only if the real average stock outlay for first terzetto months in 2010 was BDT 298.43. The average stock monetary value is 54% cut back than our forecasted scathe. This indicates the expense of Aftab share is undervalued in the market. The score for lower market outlay may be due to decreasing trend in the prevalent baro n in 2010.Fig-21 DSE universal Index in 2010twelvemonth Dividend throw up hurt of argument(using Gordon Model) 2009 (Actual) Do 20.51 2,048.75 2010 ( communicate) D1 26.60388 2048.75 2011 ( juted) D2 34.50836 2657.469714 2012 (projected) D3 44.76141 3447.050776 2013 (projected) D4 58.06081 4471.230282 2014 (projected) D5 75.3117 5799.711558 2015 (Projected) D6 97.68813 succeeding(a) grocery expense task in different evolution gradepic ingathering prise 2006 2007 sales 2,124,637,706 2,500,061,189 speak to 1,808,021,014 2,127,498,327 meshwork Income 316,616,692 372,562,861.48 Asset 2,438,883,896 2,869,834,680.42 Debt 1,533,364,403 1,804,309,893.01 paleness 905,519,493.00 1,065,524,787.41 summate 2,438,883,896.00 2,869,834,680.42 Debt legality Ratio 1.69 1.69 here(predicate) the procure shifting is Dividend dispersion of taka 212,557,567 and thus the Debt beauteousness ratio becomes unchanged.Scenario 2Particulars 2,009.00 17.67% ontogeny say sales 2,124,637,706 2,500,061,189 personify 1,808,021,014 2,127,498,327 plunder Income 316,616,692 372,562,861.48 Asset 2,438,883,896 2,869,834,680.42 Debt 1,533,364,403 1,591,752,325.95 fair-mindedness 905,519,493.00 1,278,082,354.48 tally 2,438,883,896.00 2,869,834,680.42 Debt paleness Ratio 1.69 1.25 In this case, no Dividend is paid. So potentiometerdor increases for the brighten income and thus Debt goes down. So in this case, insure varying is the Debt loveliness ratio.Scenario digestIn this case study, the harvest rate of 5.5% has been selected as the unbroken gain rate and the pro forma statement has been presentd base on this harvest-festival rate. For scenario analysis, both approving and bearish scenarios are being considered. Current Scenario compend of 2009 Pro-forma form 2009 hopeless convening approbatory proceeds arrange 2.50% 5.50% 8.50% gross revenue 2,124,637,706 2,177,753,649 2,241,492,780 2,305,231,911 lowest Income 316,6 16,692 324,532,109 334,030,610 343,529,111 Dividend 47,570,900 48,760,173 50,187,300 51,614,427 step-up to concord pelf 269,045,792 275,771,937 283,843,311 291,914,684 essential Asset 2,438,883,896 2,499,855,993 2,573,022,510 2,646,189,027 make out Debt 1,533,364,403 1,571,698,513 1,617,699,445 1,663,700,377 general express 589,249,465 589,249,465 589,249,465 589,249,465 carry Earnings 316,270,028 592,041,965 600,113,339 608,184,712 impart financial support 2,438,883,896 2,752,989,943 2,807,062,249 2,861,134,555 cash necessary - (253,133,949) (234,039,738) (214,945,527) Debt back toothdor Ratio 1.69 1.33 1.36 1.39 sustainable addition prise 42.27% 30.45% 31.35% 32.24% EPS 136.50 139.91 144.01 148.10 equipment casualty 2,048.75 2,099.97 2,161.43 2,222.89 In the above scenario analysis, we shake taken the 5.5% harvesting rate in normal detail. If we inadequacy to be approbative large to expect that the economy will view as a high growing and the co mpany will to a fault able to grow at 8.50%. On the other hand, the situation rear in like manner be worsened teeming to pull in a suppuration lower than the normal and the company may face a ingathering of 2.50%. aft(prenominal) analyzing the scenario of different situation we merchantman say that the projected reaping rate is capture for the company which will help the company to operate in the market even if the situation is worse. It gives a positive indication towards the company and increases the shareholders authorization to invest in the companys share.Chapter 6Findings & cultivationAt the end we can say that, in year 2009, we see that the grocery store expense is much higher then the deem respect of each share. Investors are unstrained to pay more than the book value of each share. The major reasons of the higher market value are the underestimation of the assets, as the assets are calculate base on the purchase worth not on the basis of the market pric e. in any case that investment to the other shares are besides figure on the purchase price. merely the market price is in any case higher. Moreover, Aftab Automobiles ltd enjoys a kick downstairs reputation on the market. So the intangible assets like, Patent, tidy sum mark should be considered. So we can say that the companys financial position is good. ground on market price if we re-construct the balance sheet, we birth to tuck grace of God as intangible asset for Aftab Auto. This goodwill fundamentally shows the boldness of the shareholders & investors on Aftab Auto okay by some positive news.Overall we see that the sales of the company are increase which is a good sign. anyway that the company is investing to a great extent on the fixed assets,which may utilize to generate more revenue for the company. They are besides religious offering cash dividend each year and as well the company paid its piddling term rouse and alike taking short term loans, which indicates that the company is enjoying a social purlieu in terms of the short term credit situation. So, we can bring to an end that the Aftab Automobiles Ltd is financially grave found on the silver rate of flow analysis. lettuce margin, operating profit, EPS, market-book value of the Aftab is change magnitude which indicates that the company is fitting more efficient in terms of its trading operations and in like manner gaining investors confidence. So we can say that after experiencing some pin Aftab Auto is now experiencing talent in its performance and also investors confidence.From the cash flow statement we can see that, in 2006, 2007 & 2009 the free cash flow figures are negative. This might happen because of high investment in inventory and R&D departments, means the company used more cash than they had sourced of. . excessively the cash flows to Investors were qualified for the company over the years. The company had comfortable fund to pay out dividends and that would in the end maximize the value of the firm. wintry investments were pursuant(predicate) and consumed colossal cash over the years. employ make variable to find do of Dividend resolving power was a achievement in 2009. We have seen that dividend declaration had a monumental effect on the share price of Aftab Auto in the year 2009. scathe fluctuated after the dividend was declared. monetary value increased probatoryly after the dividend was declared. employ booby variable to find effect of AGM on Stock toll was a winner in 2009. We have seen that AGM declaration also had a significant effect on the share price of Aftab Auto in the year 2009. scathe fluctuated after the AGM took place. Price fell enormously after the AGM.We untrue a divinatory situation of capital investment for Aftab Auto. The project false out to have a positive NPV of 635,486,050.36 Taka. So its a project that adds value to the company.Incorporating the value of the project in the sh are price result is a share price of 2322.72 taka. This is higher than the market price of 2048.75 taka in the last trading day of 2009. This shows that the project adds value to the wealth of the shareholders.From the sensitivity analysis, we can see that NPV is very sensitive to change in revenue. For 20% decrease of Revenue, NPV is diminish by 69%. to a fault that, 1% change of revenue NPV is changed for 3.44%.The scenario analysis shows that under pessimistic scenario of sales variable NPV becomes 198,853,179.90 taka and the future share price becomes 2134.48 taka. And bullish scenario of sales variable results in a NPV of 1,072,118,920.83 taka and future price of share becomes 2510.96 taka. This shows how changes in sales in different situation can doctor the project, its NPV and the future market price per share. But in this case it is satisfying that sales change doesnt affect the share price of the company to a great extent. This can mean that the company has a modify way to do their business that a adept project is not that much strong to affect the companys price per share.Break-Even beat for the new investment is 142 units if the selling price is 10,000,000 per unit. On the other hand, Break-Even Price is 9,126,745.47 if the selling quantity is 200 units.In intercommunicate future market price, expect graphic one 5.5% growth rate, it has been found that the company has excess fund, which can be financed distributed to event long term debt and reduce the obligations of interest expenses. The task says that assuming 5.5% growth rate, after 5 years in 2014 EPS of the company would be 144.01 as well as considering current P/E ratio as unvaried factor, in year 2013 share price would be 2,677.63 ab initio we off-key many growth variables, but considering current dry land wide economic condition, Bangladesh gross domestic product growth rate of 5.5% as an assumption would be most appropriate, as due to recession period it would be veryopt imistic to assume higher growth rate