PART-1

Organization overview
Company Name: Country/Territory: Address: Pran Group Bangladesh 12 R. K. ission Road! "ha#a$12%&! "ha#a! "ha#a! Bangladesh Glass -ar!Bottles! .ug Caps anu,a'turer Bottles ! Glass Pa'#aging "inner1are ! +thers ! (outheast Asia A3o)e 1%%% People 5(78 illion $ 5(71% illion aterials ! Glass

Produ'ts/(er)i'es *e +,,er: Business Type: /ndustry 0o'us:

Geographi'

ar#ets:

No. o, 2mployees: Annual (ales Range 45("6: Certi,i'ates: :ear 2sta3lished: .egal Representati)e/C2+:

/(+ 9%%1:2%%% 19;% r. G. Kannan

PRAN stands for:

Program for Rural Advancement Nationally. /n Bangla <Progoti Rupayone Agrani Noboddom= PRAN GR+5P 1as 3orn in 19;%. Keeping in )ie1 the 'orporate mission o, the group 1e ha)e o)er the years di)ersi,ied our a'ti)ities. Today 1e are the largest pro'essors o, ,ruits > )egeta3les in Bangladesh. *e en'ourage 'ontra't ,armers and help them gro1 ?uality 'rops 1ith in'reased yields and to o3tain ,air pri'es. The Group 'omprises o, 1% 'ompanies. The head o,,i'es are lo'ated at "ha#a 1ith produ'tion ,a'ilities around the 'ountry. +ur management is modern adapted to our en)ironment > 'ulture. +ur largest asset is our 'ompetent team o, hands$on$mangers > dedi'ated employees.

Corporate mission: @Po)erty and hunger are 'urses= Aim of the company: To generate employment and dignity and sel, respe't ,or their 'ompatriots through pro,ita3le enterprises.= Quality policy: /t is the poli'y o, agri'ultural mar#eting 'o. ltd. to mar#et produ'ts o, 'onsistent ?uality at home and a3road as per 1orld standards produ'ed hygieni'ally in a''ordan'e 1ith good manu,a'turing1 pra'ti'es in state$ o,$ the$ art plants and pro'esses ! pa'#ed in appropriate pa'#aging and remain 'ommitted to these o3Ae'ti)es at all times.

A C. ha)e adopted /(+ B9%%1 as the model ,or their ?uality mgt. system. A''ordingly a do'umented system o, pro'edures and instru'tions has 3een esta3lished throughout the organiCation de,ining 3usiness pro'esses! responsi3ilities and authorities.

Nature of the company : PRAN in Bangladesh are 3lessed 1ith a 'limate ideally suited to agri'ulture ! spe'ially ,ruits and )egeta3les $ ri'h is taste and ,la)or ! s1eet ! mello1 and Aui'y.

Consumer benefit: D /nternational ?uality Produ'ts D Competiti)e pri'e D *ide rage o, produ'ts that meet the re?uirement o, the 'onsumers o, all ages > groups

Quality certification:
Agri'ultural ar#eting Co .td$ PRAN is the ,irst ,ood pro'essing 'ompany in

Bangladesh to a'hie)e the prestigious distin'tion /(+ 9%%1'erti,i'ation ,or their ?uality management system. This supreme 'erti,i'ation ensures that PRAN Produ'ts rea'h the 'onsumers ta3le maintaining the highest le)el o, ?uality. / addition to /(+! PRAN has got international 'erti,i'ations li#e EA.A. > EACCP

Sales and distribution networ :

To ma#e the GroupFs produ'ts a)aila3le at the e)ery #no'# > 'orner o, the 'ountry PRAN has de)eloped the 3est sales > distri3ution net1or# all o)er the 'ountry. To ensure ,ast > smooth distri3ution 'ompanies has set up 9 distri3ution depots > ha)e appointed more than 1%%% dealers all o)er the 'ountry.

Ad!ertisin" # Promotion:
Ad)ertising > Promotion is the #ey to the mar#eting o, any produ't or 3rand. To 'ope up 1ith the rapid > e)er 'hanging mar#et situation > to 'ome up 1ith inno)ati)e mar#eting strategy and ideas 'ompany has set up a ,ull$,ledged /n$ house ad)ertising agen'y 'omprises o, the 3est talents o, the 'ountry. Company spends a large portion o, their promotional 3udget in 3rand 3uilding eGer'ises at home > a3road.

$%port:
The total s'enario o, eGport has 'hanged in )olume and ,igure ,rom the 2%.81 'orer to t# &H.H& 'orers and in'rease o, ;I J o)er the pre)ious year. The ratio 3et1een eGport and lo'al sales stands at 8K.II J respe'ti)ely. A strategi' de'ision has 3een ta#en to ,urther eGplore eGport mar#ets ,or in'lusion o, more parties as 1ell as ne1er destination.

$%port
A,ter ser)ing the millions at home su''ess,ully! PRAN has ,o'used on eGports to ser)e the 3illions. At present PRAN is the largest eGporter o, agro$pro'essed ,ood items o, Bangladesh. /n re'ognition o, the eGtraordinary per,orman'e in eGport PRAN has a'hie)ed the 3est pro'essed agro ,ood eGports trophy ,or the three last 'onse'uti)e years. Currently PRAN produ'ts are regularly 3eing eGported to K& 'ountries o, the K 'ontinents all o)er the glo3e. A,ri'a. aAor eGporting 'ountries : Angola! Australia! Austria! Bahrain!L Belgium! Benin! Brunei! Bur#ina 0aso! Bhutan! Cameroon! Canada! Capo Merde /slands! Chad! Congo! "Ai3outi! 2ritrea! 2?uatorial Guinea! 2thiopia! 0ran'e! Ga3on! Gam3ia! Germany! Ghana! Gree'e! Guinea! /ndia! /taly! /)ory Coast! -apan! Korea! K(A! Ku1ait! .e3anon! alaysia! ali! auritania! auritius! yanmar! ayotee! Nederland Antilles! Nepal! Niger! +man! Pa#istan! Palestine! Natar! RCA! Reunion /slands! (enegal! (ierra .eone! (ingapore! (omalia! (omaliland! (ri .an#a! (udan! (1eden! (1itCerland! Togo! 5A2! 5K! 5(A > :emen. aAor 2Gported Produ'ts: 0ruit -ui'es! 0ruit "rin#s /nstant Po1dered "rin#s! Pi'#les ! Canned 0ruits > Megeta3les! 2Gtruded > 0ried (na'#s! Tea! Aromati' Ri'e! Pu,,ed Ri'e! 0lattened Ri'e! -am > -elly! Plain (pi'es! Blended (pi'es! Candies! Bu33le Gum! Bis'uits > other 'on,e'tionery et'. ustard +il! ineral *ater! "ehydrated 0ruits! Tomato Ket'hup / (au'e! To,,ees! aAor eGport mar#ets are Asia! iddle 2ast >

&mport

As the largest ,ood pro'essing 'ompany o, Bangladesh usually 1e import the ,ollo1ing to meet our re?uirements: Raw Materials: Cassa)a po1der! Corn Grits! +range Con'entrate! Potato star'h! Potato granules! po1der mil#! Peanuts! pulses > 3eans! onion! 'hili! ginger et' Chemicals : As'or3i' A'id! Beta Carotene! C C! Citri' A'id! Causti' (oda! Eotmelt! Pe'tin! Potassium (or3et! Oanthan Gum! "i,,erent 0la)ors! Con,e'tionery ra1 material. Packing Materials : Aluminum 0oil! Cro1n Cor#! 0leGi3le Pa'#ing material! Glass Bottle! Glass -ars! E"P2! .ug Cap 4&%! 8& > K&mm6! P2T! (hrin# .a3els! (hrin# 'aps! Tin Can! 5$(tra1.

Products of Pran
'()&C$*

0rom garden to the 'onsumer! PRAN ensures ?uality pro'essing at all steps to pro)ide a great )ariety o, 'hoi'es o, pro'essed Aui'e. A great )ariety o, ?uality pa'#ing in eight di,,erent ,la)orsP orange! mango! .emon! lit'hi! pineapple! mango$pine! gua)a > ,ruit 'o'#tail! o,,ers an e)er re,reshing 'hoi'e ,or you.

1* (uice in Aseptic Pac

5sing ,resh natural Bangladeshi ,ruits and hygieni'ally produ'ed 1ith the state o, art te'hnology! a)aila3le in eight di,,erent ,la)ors as orange! mango! .emon! lit'hi! pineapple! mango$pine! gua)a > ,ruit 'o'#tail. Mery un'ommon the ,ruit 'o'#tail produ't is a 'om3ination o, 12 di,,erent types o, lo'al ,ruits.

Pac a"in":
1%%% ml G 12 Pa'#/Ctn Q2%8% Ctn/2% ,t ContainerD 28% ml G 2I Pa'#/Ctn Q&2%% Ctn/2% ,t ContainerD 28% ml G I; Pa'#/Ctn Q18H8 Ctn/2% ,t Container

+* (uice in Non Returnable ,lass -ottle

Real ,ruit Aui'es! using pulp 3y o1n pro'essed! a)aila3le in Non$ returna3le glass 3ottle.

Pac a"in":
28% ml G 2I GB/Ctn Q1IH% Ctn/2% ,t ContainerD 28% ml G 2I GB/Tray Q1&K% Ctn/2% ,t ContainerD

.* (uice in Can
5sing ,resh natural Bangladeshi ,ruits and hygieni'ally produ'ed 1ith the state o, art te'hnology ,ood grade metal smart 'an. A)aila3le in se)en di,,erent ,la)ors as orange! mango! pineapple! gua)a! ,ruit 'o'#tail! tamarind > 3anana ,la)or. Pac a"in": 28% ml G 2I Tin Can/Ctn Q&%%% Ctn/2% ,t ContainerD 28% ml G I; Tin Can/Ctn Q1&K% Ctn/2% ,t ContainerD

4) Sprout (uice Real ,ruit Aui'es! using pulp 3y o1n pro'essed! a)aila3le in attra'ti)e sprout pa'#.

Pac a"in": 18% ml G I; Pa'#/Ctn Q112% Ctn/2% ,t ContainerD

'/R&N0S* 0rom puri,ied natural drin# to pro'essed ,ruit drin#! our 1ide produ't range gi)es you many alternati)es to ?uen'h your thirst 0rom 'hildren to the adults! PRAN o,,ers )arious drin#s 1ith di,,erent ,la)or and taste. +ur ?uality pro'essing ensures healthy re,reshment ,or all age group 1) &ce P1P /rin s Re,reshing! non$'ar3onated ,la)ored drin# 1ith added )itamins! 3est ser)ed ,or age one to 1K years Pac a"in" 8% ml G 2;; P's/Ctn QK%I Ctn/2% ,t ContainerD

+* Powder /rin s Natural drin# po1der a)aila3le in ,amily and single ser)e pa'#aging in ,our ,la)ors Bmango! orange! lemon and stra13erry. Mita plus is really re,reshing and ?ui'# li?uid solution

Pac a"in": I gm G 8%%% p's/Ctn Q&8% Ctn/2% ,t ContainerD ; gm O 8%% (a'het/Ctn QHK8 Ctn/2% ,t ContainerD 18 gm G 8%% (a'het/Ctn QHK% Ctn/2% ,t ContainerD K% gm G 1%% (a'het/Ctn Q12%% Ctn/2% ,t ContainerD 28% gm G 2I Pa'#/Ctn Q11%% Ctn/2% ,t ContainerD

(am # (elly Pran -am > -elly is enormously popular as a 3rea#,ast ,a)orite. Also ta#en 1ith utmost demand 1ith any sna'#s any time the Pran -am > -elly are endo1ed 1ith all the ,reshness o, nature. 2la!ors: +range! Apple > "ia3eti' 4+range6 -elly! iGed 0ruit! Pineapple! ango -am.

Pac a"in":

2%% gm G 2I Glass -ar/Ctn Q&%28 Ctn/2% ,t ContainerD &%% gm G 12 Glass -ar/Ctn Q&%28 Ctn/2% ,t ContainerD 8%% gm G 12 Glass -ar/Ctn Q2;%% Ctn/2% ,t ContainerD

3achcha Semai: 2%%gm G 8% poly pa'#/Ctn Q&;%'tn/2%,t ContainerD 4olasses: 1#g G %K Plasti' -ar/Ctn Q1K%%'tn/2%,t ContainerD

4ustard 1il Eygieni'ally Produ'ed ,rom 3est ?uality ustard seeds.

Pac a"in":

28% gm G 2I Glass Bottle/Ctn Q1128 Ctn/2% ,t ContainerD 8%% gm G 2% P2T Bottle/Ctn Q1128 Ctn/2% ,t Container

Rose 5ater: 1;%ml G 2I p's/Ctn 5hite 6ine"ar: K8% ml G 12 Glass Bottle/Ctn &%% ml G 2I P2T Bottle/Ctn

Rice Products: Aromatic Rice Premium ?uality Aromati' Chinigura Ri'e is produ'ed through 'ompany appointed Conta't 0arming! pro'essed in s'ienti,i' hygieni'ally 1ithout any 3lend or 'hemi'al miGture and sorted in 'omputeriCed 'olor sorting and de$stoner to seiCe taste o, your ,amily.

Pac a"in":

Aromati' Ri'e 4Chinigura6: 1 #g G 28 Poly Pa'#s/Gunny Ba QHI% GB/2% ,t ContainerD 8 #g G %8 Poly Pa'#s/ Gunny Bag ini'at! PaAam! NaAirshail: 8 #g G %8 Poly Pa'#s/ Gunny Bag

Sauce and 0etchup: Tomato sau'e and #et'hup are produ'ed ,rom the ,inest )ariety o, tomatoes that preser)es the natural ,reshness and taste o, tomato. 2la!ors: Thai Chili (au'e! Eot Tomato (au'e! Tomato Ket'hup > Tamarind (au'e Pac a"in":

&I% gm G 12 GB/Ctn Q28%% Ctn/2% ,t ContainerD H%% gm G K GB/Ctn Q2&%% Ctn/2% ,t ContainerD 1%%% gm G K GB/Ctn

Chutney All the ,lairs and ,la)or o, nature Badded 3y the sele'ted natural ingredients B ma#es Pran 'hutney in'redi3ly popular 'raCe among all ages. Pran 'hutney gi,ted 1ith its s1eet and sour taste is made o, e)erything natural and produ'ed naturally. Pac a"in":

2% gm G I2% (a'het /Ctn <1250 Ctn/20 ft Container> Pic les Pran pi'#le is produ'ed ,rom the sele'ted ,resh ,ruits through hygieni' pro'ess that ,urther ensures ?uality and ,reshness. 6ariety: ango! iGed Pi'#le! +li)e! Chili! (at#ora! .emon! Naga Chili! Boroi (1eet >

Garli' Pi'#le Pac a"in":

300gm x 12Glass Jar/Ctn <3025Ctn/20ft Container>

Spices: Pran spi'e is prepared ,rom the sele'ted )arieties o, spi'es 4Chili! Turmeri'! Coriander! Cumin6 through 'ompletely automati' pro'ess that ensures a3solutely ,ree ,rom hand tou'h. Pran spi'e is 1%%J natural! ,resh and pure. /t ensures natural 'oloring and taste o, the 'urry! at the same time! is help,ul ,or health and hygiene. A!ailable 6arieties: Chili! Turmeri'! Cumin (eed! Coriander po1der Pac a"in": 2%% gm G 2I Paper Pa'#s/Ctn Q22%% Ctn/2% ,t ContainerD I%% gm G 12 Paper Pa'#s/Ctn Q22%% Ctn/2% ,t ContainerD 1% #g G %1 Gunny Bag/Ctn Q1I%% Ctn/2% ,t ContainerD A!ailable !arieties: Chatpati iG! Ealeem iG! 0ish iG > Curry Po1der

Pac a"in": 2%%gm G 2IPaper Pa'#s/Ctn <2200 Ctn/20 ft Container> 400gm x 24Paper Packs/Ctn <1120 Ctn/20 ft Container>

1 kg x 12 Paper Packs/Ctn <1120 Ctn/20 ft Container> PRAN Tea: PRAN Tea re,resh you more than e)erythingP made ,rom 1%%J natural tea lea)es 1ithout any additi)es! preser)ati)es or 'oloring. tastes Pac a"in": %2gm G 1%% Paper Pa'#s G &K Paper Pa'#s BoGes/Ctn QIH8 Ctn/2% ,t ContainerD PRAN Confectionery: +ur 'on,e'tionery produ'ts are )arious ,la)ored 'andy! gum! magi' 'up > ,ruit 3ar *ith e)ery 'he1! it 3rings a s1eet taste in li,e. PRAN Candy: Milk Candy: This is made o, pure mil#. /tFs a dairy produ't o, PRAN. This is made ,or #idFs spe'ially.K$12 years 'hildrenFs are our target 'ustomers. /t 'omes ,rom ,ully automati' deposited ma'hine. /n Bangladesh 1e are mar#et leader. Butter Scotch Candy: This is ,ully 3utter made 'andy. Good ,la)or > taste attra't 'onsumers )ery mu'h. Coffee Candy: (trong 'o,,ee energiCer 1ith reAu)enating 'o,,ee taste made ,rom 'o,,ee po1der. ar#eted in t1o di,,erent 'ategories B Premium > Non$Premium B to re,resh people o, di,,erent 'lass and

Love Candy: PRAN

y .o)e 'andy ha)ing three ,la)orsP

ango! +range >

(tra13erry. This is heart shape 'andy. This 'omes ,rom our deposited ma'hine.

PRAN Pac a"in" R Eard3oiled Candy: 40la)ored 'andy! Clu3 'andy! .o)e 'andy6 R "eposited Candy: 4 il#! Butter s'ot'h! Co,,ee! Creamers and int plus6

Weight / Pc Pack type Big Jar "mall Jar %e&i'm Jar Big (o'c) %e&i'm (o'c) "mall (o'c) 3 gm 3 gm 3 gm 3 gm 3 gm 3 gm

uantity /Pack 250 pc 100 pc 150 pc 1 *g 100 pc 50 pc

Pack / Ctn 15 jar 1! jar 2 jar 10 po'c) 2! po'c) 5+ po'c)

Load in !"# Container uantity !0 #$0 30 1130 $10 #+0 $nit Ctn Ctn Ctn Ctn Ctn Ctn

% &ruit Magic / Magic Cup Pack type Big Jar %e&i'm Jar "mall Jar (o'c) (aper Box Weight / Pc 1# gm 1# gm 1# gm 1# gm 1# gm uantity / Pack 100 pc !5 pc 0 pc 2 pc 10 pc Pack / Ctn + jar 12 jar 12 jar 20 po'c) 30 (B Load in !"# Container uantity #+5 5!0 1120 13 0 1# 0 $nit Ctn Ctn Ctn Ctn Ctn

% Lolli Pop Pack type Weight / Pc uantity / Pack Pack / Ctn Load in !"# Container uantity $nit 1050 Ctn 1!10 Ctn

Jar (o'c)

! gm ! gm

100 pc 25 pc

+ jar 20 po'c)

% Bu''le (u) Pack type Weight / Pc uantity / Pack Pack / Ctn Load in !"# Container uantity ++0 $nit Ctn

Jar

gm

1!0 pc

1+ jar

(aper Box (aper ,ra% Mango Bar

gm gm

100 pc 100 pc

20 (B 25 (,

2100 2100

Ctn Ctn

Pack type

Weight / Pc

uantity / Pack

Pack / Ctn

Load in !"# Container uantity $nit Ctn Ctn Ctn

(o'c) (aper Box (aper Box

1+ gm 1+ gm 1+ gm

10 pc 30pc 2 pc

0 po'c) 12 (B 1+ (B

2100 2100 1$50

4an"o -ar: The mouth$1atering delight o, ,resh mango pulp 3lends 1ith 'itri' a'id and sodium 'hloride gi)es a 'harming taste. 1ther products: PRAN )7T 4il : Regular mil# is put through a pro'ess #no1n as 5ET 45ltra Eeat Treatment6 that ma#es the mil# 'ompletely germ$,ree. PRAN Pasteuri8ed 4il : PRAN PasteuriCed il# is ,resh and pure ,ull 'ream li?uid mil#.

PRAN 2la!ored mil : PRAN 5ET 0la)ored mango... PRAN Pure ,hee: PRAN Pure Ghee is made ,rom aroma. il# 0at. /t has typi'al ri'h il# 1ith mouth1atering taste o, ri'h 'ho'olate and

PART-+
Qualitative Analysis:
A9 &ndustry Analysis: a9 1!erall economy analysis or macro economy analysis: /emo"raphic: Both ur3an and rural people use some o, PRANF( produ't 1hether it may 3e a pi'#le or Aelly. But most o, it is used in ur3an area. A"e: *e 'an di)ide the age group 3et1een 8 to 8% or a3o)e those 1ho uses produ't o, PRAN. &ncome: Pri'es o, PRANF( produ'ts and li,estyle. are reasona3le any one 'an a,,ord it. "ue to 'hanges in re'ent li,e style and 'urrent mar#et trend! in the mar#et there are )arieties o, produ'ts similar to that o, PRANF(. And i, 1e see than! people still pre,er PRANF( produ't. Technolo"y: *ith the aim to 'ontinuously enhan'e its produ't and a turno)er ,or sustaining 3usiness gro1th parti'ularly in the ,a'e o, in'reasing 'ompetition in the lo'al mar#et mentiona3le the 'ola plant and the se'ond ,ully automated Re)erse +smosis te'hnology.

A+K/ te'hnology 3ased P2T 3lo1ing ma'hines ha)e 3een installed. At the same time ,or de)eloping E"P2 drin#ing 1ater 3ottles suita3le ,or the eGport mar#et a E"P2 3lo1 molding ma'hine has also 3een installed during this period . A ne1 administration 3uilding has 3een 'onstru'ted together 1ith a 1ell e?uipped modern la3oratory to impro)e produ'tion and produ't ?uality management at the ,a'tory. Politi's: /n e)ery industry there is a trade union. *hen some demands o, the 1or#er are not met they are going through the grie)an'e pro'edure 1hi'h sometime turn to stri#e and lo'# out situation 1hi'h ad)ersely e,,e't on 'ompanyFs o)erall per,orman'e and produ'tion. b9 &ndustry life cycle: /ndustry li,e 'y'le analysis 'an )ary 3ased on ho1 mu'h detail 1e 1ant. A ,i)e stage model 1ould in'lude$ 1. Pioneering de)elopment. 2. Rapid a''elerating gro1th.. &. ature gro1th. I. (ta3iliCation and mar#et maturity. 8. "e'laration o, gro1th and de'line.

*ndu+try Life Cycle

1I 12 1% Net sales ; K I 2 % (tage$ 1: (tage$2: Pioneering Rapid "e)elopment A''elerating Gro1th (tage$&: ature Gro1th Time (tage$I: (tage$8: (ta3iliCation "e'laration o, > ar#et Gro1th > aturity "e'line

The ,igure sho1s the gro1th path o, sales during ea'h stage. To estimate industryFs sales they mu'h predi't the length o, time ,or ea'h stage. This re?uires ans1er to su'h ?uestion as B a. Eo1 long 1ill an industry gro1 at an a''elerating rateR 3. Eo1 long 1ill it 3e in the mature gro1th phase 3e,ore it sales! gro1th! sta3iliCes and then de'linesR (o to determine the sales estimate 1e 3rie,ly des'ri3e these stages: 1. Pioneering de)elopment: "uring this start up stage the industry eGperien'es modest sales gro1th and )ery small on negati)e pro,it margin and pro,its. Eere time period is small and ,irms in'ur maAor de)elopment 'ost. 2. Rapid a''elerating gro1th: "uring this stage a mar#et de)elops ,or the produ't or ser)i'e and demand 3e'ome su3stantial. The pro,it margins are )ery high! sales! gro1th rate are mo)ing at an in'reasing rate to meet eG'ess demand. "uring this phase pro,it 'an gro1 at o)er 1%%J a year.

&.

ature gro1th: /n this stage! ,uture sales gro1th may 3e a3o)e normal 3ut it no longer a''elerate. Eere the rapid gro1th o, sales and a high pro,it margin attra't 'ompetitors to the industry 1hi'h 'auses an in'reasing in supply and lo1er pri'es 1hi'h mean the pro,it margin 3egin to de'line to normal le)els.

I. (ta3iliCation and mar#et maturity: "uring this stage in)estor 'an estimate gro1th easily 3e'ause sales 'orrelate highly 1ith an e'onomi' series. Eere 'ompetition produ'es tight pro,it margins and the rates o, return on 'apital e)entually 3e'ome e?ual to or slightly 3elo1 the 'ompetiti)e le)el. 8. "e'laration o, gro1th and de'line: /n this stage the industry sales gro1th de'line 3e'ause o, shi,ts in demand or gro1th o, su3stitutes. Pro,it margin 'ontinues to 3e s?ueeCed and some ,irms eGperien'e lo1 pro,its or e)en. PRAN and its position in the industry life cycle: AnalyCing their mar#et situation! sales estimate and ,uture plan this industry are 'urrently stayed in the mature gro1th stage. /n this stage ,uture sales gro1th may 3e a3o)e normal 3ut it no longer a''elerate. Besides! the rapid gro1th o, sales and the high pro,it margins attra'ts 'ompetitors to the industry 1hi'h 'auses an in'rease in supply and lo1er pri'es 1hi'h means that the pro,it margins 3egan to de'line to normal stage.

C9 Competiti!e strate"y analysis:

Porters : "eneric model: To gra3 the empty mar#et or #eep the 'urrent mar#et pla'e the 'ompany 'an ta#e se)eral strategies. The proAe't analysis may in,ormally tal# to 'ustomer! 'ompetitors! middleman or others o, the industry or he may loo# at the 'ompetitors o, the 'ompany to learn a3out the per,orman'e and their pur'hasing po1er o, the 'ustomer a'tion and strategy. +r they may simply go along 1ith the porters ,i)e ,a'tor model: 19 Threat of new ; potential entrants: A ne1 entrant in an industry represents a 'ompetiti)e threat to the sta3iliCed ,irm. (o managers o, the sta3iliCed ,irms usually go ,or 3arriers to entry. (o the 'ompany may apply the poli'y in'lude: $ 2'onomiCe to s'ale. Produ't di)ersi,i'ation. (1it'hing 'ost. A''ess to distri3ution 'hannel.

,)reats ofof ,)reats potential entrants potential entrants

Bargaining Bargaining po.er ofof po.er "'ppliers "'ppliers

0n&'str1i2alr0n&'str1i2alr-

Bargaining Bargaining po.er ofof po.er C'stomers C'stomers

,)reats ofof ,)reats "'/stit'tes "'/stit'tes

&igure: Porter+ , (eneric Model

+9 -ar"ainin" power of suppliers: /n many industries the 'ost o, pur'hased supplies a''ounts K%$;%J at total produ'tion 'ost. (uppliers ha)e an important e,,e't on industries proAe't potentials.

Considering un,a)ora3le 'onditions o, the supplier 'ompany must 1at'h out the ,a'tors that ma#e the suppliers group po1er,ul:$ Greater 'on'entration among suppliers than 3uyers. "ominan'e 3y a ,e1 suppliers and la'# o, su3stitute produ't. Eigh di,,erentiation among suppliers. Eigh di,,erentiation 3y suppliers and high s1it'hing 'ost ,or the 3uyer.

.9 -ar"ainin" power of the customer: Buyers are the 'onse?uential part o, the organiCation. Buyers 'an eGert 3argaining o)er a supplier industry 3y ,or'ing its pri'es do1n 3y redu'ing the amount o, goods they pur'hased ,rom the industry or 3y demanding 3etter ?uality ,or the same pri'e. The manager o, the organiCation must 1at'h out the ,ollo1ing ,a'tors that lead to greater 3uyer po1er:$ Credi3le threat o, 3a'#1ard integration 3y 3uyers. Pri'e sensiti)ity o, the 3uyers. Relati)ely large )olume pur'hase. Greater 'on'entration in the 3uyers industry than in suppliers industry.

<9 Threat of substitute product: *hen the a)aila3ility o, su3stitute produ't is upper and pri'es are a3o)e the ,ollo1ing industryFs produ't pri'es! 'ustomer tends to s1it'h to su3stitute. Conse?uently manager must 'losely monitor su3stitute produ't that are sho1ing impro)ement in per,orman'e or and de'line in pri'es. :9 Ri!alry of the e%istin" firms: /n the 'urrent ,ree mar#et e'onomy. Company has to ,a'e high le)el o, 'ompetition. That is usually 'hara'teriCed 3y in terms o, pri'e 'ompetition! produ't di,,erentiation and produ't inno)ation. (u'h ri)alry usually results ,rom the ,ollo1ing ,a'tors:

2?ually 3alan'ed 'ompetitors. .a'# o, di,,erentiation. .a'# o, s1it'hing 'ost. .arge in'reasing manu,a'turing 'apa'ity. . Eigh eGist 3arriers. Considering the a3o)e ,a'tors the management o, the 'ompany should

set up their mar#et strategy. +n the )ie1 to gra3 the ne1 mar#et pla'e and #eep in hand the old one. d9 &ndustry "rows: 2inancial performance of Pran Company: Earning Year 2000 2001 2002 200. 2004 2005 2001 per share 42,20 52,454,21 55,450,./ 50,/1 .1,1Net Asset Net Profit Price a!"e Per After $ax Earning #hare 25-,./ 2-4,10 .12,-2 .4.,./ .12,20 .-1,55 ./1,11 %mn& ..,01 41,// 4.,41 44,./ 40,.1 40,00 2-,/5 'atio /,-0 0,05 1,/1 0,10 1.,.1 0,-1 10,10 ( )i*i+en+ Yie!+ 4,-0 5,41 1,10 5,14 .,-0 1,4/ 0,00

( )i*i+en+ 20 20 25 24 24,00 21,00 21,00

No1 1e 'ompare the ,inan'ial per,orman'e o, Pran Company 1ith the apeG ,oods 'ompany. (o 1e present the ,inan'ial per,orman'e o, apeG 0oods Company.

Ape% 2ood:

Earning Year 2000 2001 2002 200. 2004 2005 2001 per share 11,05 11,514,/2 22,05 21,2/ 22,00 21,01

Net Asset Net Profit Price a!"e Per After $ax Earning #hare 1.2,01 1./,2/ 1.4,1141,415/,00 10/,11 1-1,.0 %mn& /,15 /,41 -,51 12,/0 14,// 12,/12,41 'atio 0 15,-2 1-,-15,10 10,41 15,21 1,00

( )i*i+en+ 10 10 12 12 1.,00 15,00 11,00

( )i*i+en+ Yie!+ 2,50 .,-1 4,21 .,4/ 2,-4 4,.1 4,00

Financial Performance

Earning Per share

60 50
EPS

40 30 20 10 0

Pran A e! 2003 2004

Year

2005

2006

%et Asset #al$e Per Share

"00 600 500 400 300 200 100 0 Pran A e!

Asset #al$e

2003

2004
Year

2005

2006

%et Pr&'it A'ter *a!(milli&n)

45 40 35 30 Pr&'it(mn) 25 20 15 10 5 0

Pran A e!

2003

2004 Year

2005

2006

Price Earning Rati&

20 15
Price

10 5 0 2003 2004 2005 2006

Pran A e!

Year

. +i,i-en30 25 20 Share Per 15 +i,i-en10 5 0

Pran A e! 2003 2004 2005 2006

Year

. +i,i-en- Yiel-

Yiel-

" 6 5 4 3 2 1 0

Pran A e! 2003 2004

Year

2005

2006

A''ording to the ,ollo1ing graphs and ,inan'ial per,orman'e o, 3oth o, the 'ompanies 1e 'an anti'ipate their industry gro1th o, the said 'ompanies. 2G'ept net asset )alue per share in 2%%& to 2%%K o, ApeGSs is higher than that o, Pran.+ther than that o)erall per,orman'e +0 Pran is higher than rest o, the agro 3ased 'ompanies in the industry

e9 Company Analysis: SW-. /naly+i+: (*+T analysis in)ol)es an eGamination o, a ,irmFs strength! 1ea#ness opportunities! and threats. /t helps to e)aluate ,irmFs strategies to eGploit its 'ompetiti)e ad)antages or de,end against its 1ea#ness. (trength and 1ea#ness in)ol)e identi,ying the ,irmFs internal a3ilities or la'# thereo,. +pportunities and threat in'ludes eGternal situation su'h as 'ompetiti)e ,or'es dis'o)ery and

de)elopment o, ne1 te'hnologies! go)ernment regulations and domesti' and international e'onomi' trends. The strengths o, a 'ompany gi)e the ,irm a 'omparati)e ad)antage in the mar#et pla'e. Per'ei)ed strength 'an in'lude good 'ustomer ser)i'e or strong ,inan'ial resour'es. To remain strength they must 'ontinue to 3e de)eloped! maintained and de,ended through prudent 'apital in)estment poli'es. *ea#ness result 1hen 'ompetitors ha)e potentially eGploita3le ad)antages o)er the ,irm. +n'e 1ea#nesses are identi,ied! the ,irm 'an sele't strategies to mitigate or 'orre't the 1ea#ness. +pportunities or en)ironmental ,a'tors that ,a)or the ,irm 'an in'lude a gro1ing mar#et ,or the ,irmFs produ'ts! shrin#ing 'ompetition ,a)ora3le eG'hange rate shi,ts a ,inan'ial 'ommunity that has 'on,iden'e in the outloo# ,or the industry or ,irm or identi,i'ation o, a ne1 mar#et or produ't segment.

Threats are en)ironmental ,a'tors that 'an hinder the ,irm in a'hie)ing its goals. /t 1ould in'lude a slo1ing domesti' e'onomy ! additional go)ernment regulation an in'rease in industry 'ompetition! threat o, entry ! 3uyers or suppliers! see#ing to in'rease their 3argaining po1er or ne1 te'hnology that 'an a3solute the industryF s produ't.

No1 1e dis'ussed the (*+T analysis on the 'on'ept o, our term paper PRAN Company limited. At ,irst 1e des'ri3e a3out strength o, the 'ompany and so on.

Stren"th: -rand ima"e: 0irstly! PRAN has stayed in the lo'al mar#et in Bangladesh ,or many years. (o they are so eGperien'ed and stationed in peopleFs mind deeply. 2)eryone in Bangladesh is a1are o, PRAN. PRAN portrays di,,erent #inds o, produ'ts 1hi'h are already eGist in the mar#et and people li#e it. (o there is strong 3rand pre,eren'e ,or PRAN o)er other su3stitutes in the mind o, a num3er o, 'onsumers. Superior =uality control measures: PRAN maintain and 'ontrol the superior ?uality o, the produ't. /t is the poli'y o, agri'ultural mar#eting 'ompany limited to mar#et produ'ts o, 'onsistent ?uality at home and a3road as per 1ould standards pra'ti'es. &nte"rity: PRAN 3elie)es su''ess depends upon the ?uality and )alue o, their produ'ts 3y pro)iding a sa,e! 1holesome e'onomi'ally e,,i'ient and a healthy en)ironment ,or their 'ustomers and 3y pro)iding a ,air return to their in)estors 1hile maintaining the highest standards o, integrity. 4ar et share: Be'ause o, the )ariety o, the produ't PRAN leads in the share mar#et and in'reasing the mar#et share. Customer satisfaction: *hene)er PRAN eGist in the mar#et! that time 'ustomer 'onsumed their produ't. They laun'h di,,erent #inds o, produ't and the pri'e o, the produ't is measura3le. (o the 'ustomer satis,ied 1ith the PRAN produ't. produ'ed 3y in a''ordan'e 1ith good manu,a'turing

5ea nesses: .imited de'ision ta#ing 'apa'ity: The PRAN Company is eGisting under the rules and regulation o, agri'ultural mar#eting 'ompany limited. (o PRAN 'an not ta#e any instant de'ision to adAust the sudden mar#et 'hanges. Pri'e disad)antage: (ometime pri'e o, the produ't may 3e )arying 3e'ause o, ra1 material. Be'ause the pri'e o, the ra1 material 1hi'h is also the #ey ingredient o, their produ't line! is 'omparati)ely eGpensi)e than that o, their 'ompetitors in Bangladesh espe'ially the emerging ones. (o this ma#es them sell their produ'ts at a higher 'ost than most o, their 'ompetitors. .o1est per 'apita 'onsumption: Bangladesh has the lo1est per 'apita 'onsumption in the entire 1orld. (o upper 'lass and middle 'lass 'an 3ear the PRAN produ't 3ut the lo1er 'lass people 'an not 3ear it. .a'# o, geographi'al 'o)erage: (ometime the PRAN produ't 'an not rea'h in the de,inite geographi'al area 3e'ause o, la'# o, 'ommuni'ation. 1pportunities: The agri'ulture se'tor is the largest 'ontri3utor to G"P. (o PRAN produ'ed 'anned ,ruit and )egeta3les! mushrooms et' and it is the part o, agri'ulture. (o itFs an opportunity to 'ontri3ute to G"P. The 'rop produ'tion system is highly la3or intensi)e and there is an a3undan'e o, la3or in the 'ountry. Through the produ'tion o, the PRAN produ't the employment opportunity are in'reased in Bangladesh. Through the produ'tion o, the good produ't there is a great opportunity to attra't the ,oreign in)estors. Company 'an de)elop the e,,e'ti)e distri3ution system. PRAN Company 'an ma#e sur)ey to ma#e e,,e'ti)e produ't.

Threats: 5n'ertainty in re'ei)ing ,air pri'es PRAN mainly produ'ed the agro$ 3ased produ't and most o, the produ'ts are perisha3le. (o it has to 3e preser)ed system. /nade?ua'y o, appropriate te'hnology. .a'# o, re?uired 'apital. "e'reasing mar#et share. aAor prolonged e'onomi' depression. Redu'es the 'ustomer due to lo1 ?uality o, the produ't.

*hreats / &rt$nities

Strengths 0eaknesses

2i"ure: S51T

Co!era"e: Generally spea#ing! at the time to 'o)er the ,ollo1ing aspe'ts! 1e should loo# into the ,ollo1ing matter 1inancial As ects Capital o, o1ner Cash ,lo1 A''ess to additional resour'es /n)estment re?uirement Pro,ita3ility Ris# Ph2sical Res&$rces Buildings Plant > ma'hinery Te'hnology / in'u3ator par#s .o'ation Transport ,a'ilities /n,rastru'ture > utilities /ndustrial ,lats/estates

Management3 S$ er,is&r2 An- / erat&r Ca a4ilities anagement 'ompeten'e Market Pro,ile o, target mar#et CompetitorsT mar#eting strategy

Age/eGperien'e (#ills a)aila3ility Te'hnologi'al #no1$ho1 anagement 'onta'ts/net1or#

ar#et share

Produ't ,eatures/?uality
2Gpanding/'ontra'ting/stagnant mar#et ar#et ni'he ,or ne1/eGisting produ't

(alesmanship o, o1ner/sta,,
Personnel management

"emand /supply situations 4past! pre

sent! ,uture6

Management 5n'&rmati&n /s the ne'essary in,ormation A)aila3leR

S$ l2 &' Raw Materials Are the sour'es ade?uate in terms o,

Nuantity! ?uality > pri'eR /s it a)aila3le in time to aid in "e'ision Are ne1 materials 3e'oming a)aila3le ma#ing a'tionsR and in ta#ing Corre'ti)e 1hi'h 1ould 3e use,ul to the 'ompany *ill they 'ontinue to 3e ade?uateR

S&cial En,ir&nment Pr&-$cti&n Pr&cess Eo1 is the small 3usiness getting is the produ't going to 3e mass AdAusted to the mar#etsR Are people a''epting the produ'tR /s there any parti'ular preAudi'e! .i#es or disli#es ,or the produ't ............. Produ'edR /s it la3or intensi)eR /s it a Ao3 order or a 'ontinuous +peration pro'essR /s it 3ased on produ't or Te'hnologyR

-usiness strate"y: (trategi' planning 'alls ,or a'tion in & #ey areas: The ,irst is measuring a 'ompanyFs 3usiness as an in)estment port,olio. The se'ond in)ol)es assessing ea'h 3usinesses strength 3y 'onsidering the mar#ets gro1th rate and the 'ompanyFs position and ,it in the mar#et. The third is esta3lishing a strategy.

Corporate and di!ision strate"ic plannin": All 'orporate Eead?uarters underta#e ,our planning a'ti)ities: "e,ining the 'orporate mission 2sta3lishing strategi' 3usiness unit4(B56 Assigning resour'e to ea'h Planning ne1 3usiness! do1nsiCing or terminating older 3usiness.

As 1e #no1 Bangladesh is an industry arena. RAN is also not di,,erent ,rom these )ie1s. *e ha)e already learned a3out their 'orporate mission. statement is at their 3est 1hen they are guided 3y a )ision. The -C, 4atri% $!aluation of PRAN: ission

1 5ig h Market (ro3th %ate Star P%/0 Lo 3 Ca+h Co3 /CM2 5igh ue+tion S $/%2

4og B4

Lo3

% el at iv e M ar ke t S h ar e

0a'tors underlying mar#et attra'ti)eness and 'ompetiti)e position o, PRAN: ar#et attra'ti)eness: +)erall mar#et siCe Annual mar#et gro1th ness Eistori'al pro,it margin Te'hnologi'al re?uirement 2n)ironmental impa't .arge Better 2%%K odern ,riendly

Business strength: ar#et share Produ't ?uality Brand reputation "istri3ution net1or# 5nit 'osts 0airly large Best Mery good (trong minimum

-usiness strate"y of PRAN: still no1 1e 'an generally say that PRAN is holding ,irst position in the agro 3ased industry. Though it ha)e di,,erent types o, ,ood produ't. This ,irm has ,airly large mar#et share in the rele)ant produ't mar#et and usually leads the other ,irms in pri'e 'hanges! ne1 produ't introdu'tions! distri3ution 'o)erage and promotional intensity But pran ha)e to 3e alert on & ,ounds to stay n the industry. The ,irm must ,ind 1ays to eGpand total mar#et demand that is siCe o, the mar#et. The ,irm must prote't its 'urrent mar#et share through good de,ensi)e and o,,ensi)e a'tions. Third the ,irm 'an try to in'rease its mar#et share e)en i, the mar#et siCe remains 'onstant. Through a3o)e dis'ussion 1e 'ame to #no1 inspite o, ha)ing di,,erent produ't still it needs to 3e eGer'ise the leadership strategy 3e'ause i, 1e 'onsidered

PRAN to 3e as num3er one then AC 2! (N5AR2 ,ood produ'ts! B" ,ood the ,irmFs #no1n as 'hallengers ,ollo1ers soon 1ell 'at'h up the ,irst position.

PART-.
Quantitati!e analysis
a9 Ratio analysis: Ratio analysis: Ratio analysis in)ol)es methods o, 'al'ulating and interpreting ,inan'ial ratios to analyCe and monitor the ,irmFs per,orman'e. The 3asi' inputs to ratio analysis are ,irmFs in'ome statement and 3alan'e sheet. &nterested parties: Ratio analysis o, a ,irmFs ,inan'ial statement is o, interest to shareholders! 'reditors and the ,irms o1n management. Both present and prospe'ti)e shareholders are interested in the ,irmFs 'urrent and ,uture le)el o, ris# and return! 1hi'h dire'tly a,,e'ts share pri'e. The ,irmFs 'reditors are interested primarily in the shirt term li?uidity o, the 'ompany and its a3ility to ma#e interest and prin'ipal payments. A se'ondary 'on'ern o, 'reditors is the ,irmFs pro,ita3ilityP they 1ant assuran'e that the 3usiness is healthy. anagement! li#e sto'#holders is 'on'erned 1ith all aspe't o, the ,irmFs ,inan'ial situation! and it attempts to produ'e ,inan'ial ratios that 1ill 3e 'onsidered ,a)ora3le 3y 3oth o1ners and 'reditors. /n addition! monitor the ,irmFs per,orman'e ,rom period to period. 3i=uidity Ratio: 2or the year +>>.: Current ratio: 6 6 6
CurrentAssets CurrentLiabilities 5!0 #2010 + 013# 2

anagement uses ratios to

1.25098

Quic ratio:
cash + markatableSecurities + receivables Currentliabilities cash + stock + sharecapital + receivable currentliabilities 1!02+5$# + 5++055#2 + !0000000 + 15220# 0 + 013# 2

6 6 6 6

1.22;

2or the year +>><: Current ratio:

CurrentAssets CurrentLiabilities +22251!$$ 5031$$2$2

6 6

1.2&K8

Quic ratio:
cash + markatableSecurities + receivables Currentliabilities cash + stock + sharecapital + receivable currentliabilities 22#!1135 + $32#!!$# + !0000000 + 2$$5+5+$ 5031$$2$2

6 6

6 6

1.2II

2or the year +>>::

Current ratio:
CurrentAssets CurrentLiabilities ++05! #$2 $$+2#$!1

6 6

1.&221

Quic ratio: 6 6
cash + markatableSecurities + receivables Currentliabilities cash + stock + sharecapital + receivable currentliabilities 331! 1 $ + $1+0!0 $ + !0000000 + 2501 +2 $$+2#$!1

1.2988

2or the year +>>?: Current ratio:

CurrentAssets CurrentLiabilities +#3#!32 5 5003+ !0 1

6 6

1.&IK8

Quic ratio:
cash + markatableSecurities + receivables Currentliabilities

cash + stock + sharecapital + receivable currentliabilities 3$ ! 215 + $+023##1 + !0000000 + 550 0#$ 5003+ !0

1.&21
C$rrent Rati& 1736 1734 1732 173 1728 1726 1724 1722 172 1718 1716 2003 2004
Year
C urre nt R a tio

Ratio

2005

2006

uick ratio
1694 169! 169 16!8

Ratio

16!7 16!4 16!! 16! 1618 1617 !""9 !""4 !"", !""7 uick %atio

Year

&nterpretation: ,)e stan&ar& rate of c'rrent ratio is 1.2531.4ccor&ing to t)e compan- in e2er- -ear 520036200+7 t)e c'rrent ratio is /et.een 1.2531.so t)ese 2al'es are accepta/le. 4n& t)e stan&ar& rate of 8'ic* ratio is 131.accor&ing to t)e compan-9 t)e rate is /et.een 1.23 to 1.32.so t)ese are accepta/le. 3e!era"e ratio: 2or the year +>>.:

Total debt ratio: 6

currentliability + totallongt ermdebt totaldebt + totalequity

6 6

+ 013# 2 + 1!5$#$$5$ 1!5$#$$5$ + 3!+# !0$5 + 2$3$13#11

H8J

/ebt e=uity ratio: 6

totallongtermdebt totalequity

6 6

1!5$#$$5$ 2$3$13#11

K&.2HJ

&nterest co!era"e ratio: 6

netincome + incometaxes + int erest exp enses int erest exp ense

6 6

3!+$31 + 1#+3235 + +++!01 +++!01

1.K9

2or the year +>><: Total debt ratio: 6

currentliability + totallongt ermdebt totaldebt + totalequity

6 6

5031$$2$2 + 15+153#$! 15+153#$! + 1#+ 550! + 30$01523!

HI.K;J

/ebt e=uity ratio: 6

totallongtermdebt totalequity

6 6

15+153#$! 30$01523!

8%.8&J

&nterest co!era"e ratio: @

netincome + incometaxes + int erest exp enses int erest exp ense

@ @

030$13+ + +5#12 3 + #1120$5# +5#12 3

1 .95

2or the year +>>:: Total debt ratio: 6

currentliability + totallongtermdebt totaldebt + totalequity

6 6

$$+2#$!1 + 1+5$ 150 1+5$ 150 + 1!#+2505 + 33003#$53

H2.HKJ

/ebt e=uity ratio: 6

totallongtermdebt totalequity

6 6

1+5$ 150 33003#$53

8%.2HJ

&nterest co!era"e ratio: 6

netincome + incometaxes + int erest exp enses int erest exp ense

6 6

0##1#5# + 1 +5$5!# + # !#20#0 # !#20#0

1.HI

2or the year +>>?: Total debt ratio: 6

currentliability + totallongtermdebt totaldebt + totalequity

6 6

5003+ !0 + 1525$205! # !#20#0

H1.I%J

/ebt e=uity ratio: 6

totallongtermdebt totalequity

6 6

1525$205! 33#+!##$2

I8.1;J

&nterest co!era"e ratio: 6

currentliability + totallongtermdebt totaldebt + totalequity

6 6

2!$ #13 + 22!0 53 + !0 3!$2# !0 3!$2#

1.&;;

.otal 4e't %atio

<<: <7: <,: <4: Ratio <9: <!: <1: <": 7;: 78: !""9 !""4 Year !"", !""7

,otal :e/t 1atio

*ntere+t Coverage %atio

18 17 14 1! 1" Ratio 8 7 4 ! " !""9 !""4 Year !"", !""7

0nterest Co2erage 1atio

4e't 2=uity %atio

<"6"": 7"6"": ,"6"": Ratio 4"6"": 9"6"": !"6"": 1"6"": "6"":

4e't 2=uity %atio

!""9

!""4
Year

!"",

!""7

&nterpretation: /n the total de3t ratio! 1e assume that the amount o, total de3t ratio and de3t e?uity ratio 1hi'h are identi,ied is e?ual 1ith 1.

Acti!ity ratio: 1n the year +>>.: &n!entory turno!er: 6

cos to goodsolds averageinventory

6 6

55+++! $$
0 52+20 + ##!! 0 2

12.K1 times

A!era"e collection period:

accountrecivables
totalsales 3+5

15220# 0
#52#1022# 3+5

6 6

15220# 0 20+2220

H.&;

Total asset turno!er: 6

sales totalassets #52#1022# $ 3$0# 12

6 6

.H9HI

2or the year +>><: &n!entory turno!er: 6

cos to goodsolds averageinventory

6 6

5# 3520!0
##!! 0 + #!50 +0 2

12.%1 times

A!era"e collection period:

accountrecivables
totalsales 3+5

2$$5+5+$
##5131## 3+5

6 6

2$$5+5+$ 2123+ $

1I.1%

Total asset turno!er:

sales totalassets ##5131## $+!3+!32!

6 6

.;%%I8

2or the year +>>:: &n!entory turno!er: 6

cos to goodsolds averageinventory

6 6

5$2!#02+
#!50 +0 +3##+!#+5 2

1&.;8 times

A!era"e collection period: 6

accountrecivables
totalsales 3+5

2501 +2
#$#+!33 2 3+5

6 6

2501 +2 21!53!

19.II

Total asset turno!er: 6

sales totalassets

6 6

#$#+!33 2 $$5+0# 3!

.;%12%

2or the year +>>?: &n!entory turno!er: 6

cos to goodsolds averageinventory

6 6

++##+!!55
3##+!#+5+32#+5+53 2

1;.9& times

A!era"e collection period: 6

accountrecivables
totalsales 3+5

550 0#$
!+#000!25 3+5

6 6

550 0#$ 23#53 5

19.18

Total asset turno!er: 6

sales totalassets !+#000!25 $$0+ +5

6 6

.;H81

,RAP7S

5n,ent&r2*t$rn /,er
2% 1; 1K 1I 12

*imes

1% ; K I 2 % 2%%& 2%%I 2%%8 2%%K

in,ent&r2 t$rn &,er

Year

A,erage C&llecti&n Peri&2% 1; 1K 1I 12

Rati&

1% ; K I 2 % 2%%& 2%%I 2%%8 2%%K

A,erage C&llecti&n Peri&-

Year

*&tal Asset *$rn /,er

%.;; %.;K %.;I

Rati&

%.;2 %.; %.H; %.HK %.HI 2%%& 2%%I 2%%8 2%%K

Year

*&tal *$rn /,er Rati&

&nterpretation: here the standard rate o, in)entory turno)er is H times! a)erage 'olle'tion period is &K days and total asset turno)er is 1.8 times. A''ording to the 'ompany the rate o, in)entory turno)er is greater than the standard rate so it is a''epta3le. Then a''ording to the 'ompany! the rate o, a)erage 'olle'tion period is less than the standard rate so it is not a''epta3le. and the rate o, total asset turno)er is less than the standard rate so it is not a''epta3le.

Profitability ratio: 2or the year +>>.: ,ross profit mar"in: 6

sales cos to goodssold sales #52#1022# 55+++! $$ #52#1022#

6 6

2K.%IJ

Net profit mar"in: 6

pro ita tertax totalasset s 3!+$31 $ 3$0# 12

6 6 6

7%IH%2I I.HJ

2or year +>><: ,ross profit mar"in: 6

sales cos to goodssold sales ##5131## 5# 3520!0 ##5131##

6 6

28.9%J

Net profit mar"in: 6

pro ita tertax totalasset s 030$13+ $+!3+!32!

6 6

I.1KJ

2or the year +>>:: ,ross profit mar"in: 6

sales cos to goodssold sales #$#+!33 2 5$2!#02+ #$#+!33 2

6 6

8.KHJ

Net profit mar"in: 6

pro ita tertax totalasset s 0##1#5# $$5+0# 3!

6 6

I.%9

2or the year +>>?

,ross profit mar"in: 6

sales cos to goodssold sales !+#000!25 ++##+!!55 !+#000!25

6 6

22.9HJ

Net profit mar"in: 6

pro ita tertax totalasset s 2!$ ##13 $$0+ +5

6 6

2.92J

9r&ss Pr&'it Margin

2K.8%J 2K.%%J 28.8%J 28.%%J 2I.8%J 2I.%%J Pr&'it Margin 2&.8%J 2&.%%J 22.8%J 22.%%J 21.8%J 21.%%J

gr&ss r&'it margin

2%%& 2%%I 2%%8 2%%K

Year

%et Pr&'it Margin

%et Pr&'it

8.%%J I.8%J I.%%J &.8%J &.%%J 2.8%J 2.%%J 1.8%J 1.%%J %.8%J %.%%J 2%%& 2%%I 2%%8 2%%K

%et Pr&'it Margin

Year

&nterpretation: the standard rate o, gross pro,it margin is 2%J$&%J and net pro,it margin is 8J$1%J.a''ording to the 'ompany pro,ile the gross pro,it margin is a''epta3le 3ut the net pro,it margin is not a''epta3le.

b9 /upont analysis: The "upont system analysis is used to disse't the ,irmFs ,inan'ial statements and to assess its ,inan'ial 'ondition. /t merges the in'ome

statement and 3alan'e sheet into t1o summary measures o, pro,ita3ilityP R+A and R+2.

R1$ for the PRAN Company: +>>.:

totalassets netpro ita tertax netsales ! ! shareholde requity netsales totalassets

R+2 U

3!+$31 #52#1022# $ 3$0# 12 #52#1022# $ 3$0# 12 2$3$13#11

U8.;9 .#$# 3.21 U 18J

+>><:
totalassets netpro ita tertax netsales ! ! shareholde requity netsales totalassets

R+2 U

030$13+1 ##5131## $+!3+!32! ##5131## $+!3+!32! 30$01523

U8.2 .!00 3.13 U1&J

+>>::
totalassets netpro ita tertax netsales ! ! shareholderequity netsales totalassets

R+2 U

0##1#55# #$#+!33 2 $$5+0# 3! #$#+!33 2 $$5+0# 3! 33003#$53

U 5.11 .!012 3.01 U12J

+>>?:
totalassets netpro ita tertax netsales ! ! shareholde requity netsales totalassets

R+2 U

2!$ ##13 !+#000!25 $$0+ +5 !+#000!25 $$0+ +5 33#+!##$2

U 3.33 .!#51 2.$3 U9J

R1& for total industry: +>>.:

totalassets netpro ita tertax netsales ! ! shareholde requity netsales totalassets

R+2 U

5+## 1335!# 1+0!1+ 1335!# 1+0!1+ 31350

U .2 .!3 5.12 U1;J +>><:

totalassets netpro ita tertax netsales ! ! shareholderequity netsales totalassets

R+2 U

330! 13 +32 135$ 2 13 +32 135$ 2 2! +$

U 2. 5 .$$ .## U12J

R1& for the PRAN Company R+/ U

netpro it totalasset

3!+$31 $ 3$0# 12

U8J

+>>< R+/ U
netpro it totalasset

030$13+ $+!3+!32!

UIJ +>>:
netpro it totalasset

R+/ U

0##1#5# $$5+0# 3!

UIJ +>>?
netpro it totalasset

R+/ U

2!$ ##13 $$0+ +5

U&J

ROI of total industry: +>>.: R+/ U

netpro it totalasset

5+## 1+0!1+

U&.8J +>><: R"# $

netpro it totalasset

++0! 135$ 2

$2.%&

2or the A4C3 'pran*: :ear 2%%& 2%%I 2%%8 2%%K

"AT NS NS TA

R+A I.K9 I.1K I.%9 2.91

TA S#

R+2 18 1& 12 9

8.;9 8.2 8.11 &.&&

.H9H .;%%I .;%12 .;H81

&.21 &.1& &.%1 2.9&

2or the o!erall industry:

:ear 2%%& 2%%I

"AT NS NS TA

R+A .;& .99

TA S#

R+2 8.12 I.HH

I.2I 2.I8

&.8 2.I

/ecision: "upont e?uation! 1hi'h sho1s ho1 the pro,it margin! the assets turno)er ratio! and the e?uity multiplier 'om3ined to determine the R+2! and the use o, de3t intera't to determine the return on e?uity.PranFs management! 'an use the "upont system to analyCe 1ays o, impro)ing per,orman'e. As a result o, su'h an analysis PRAN may ha)e to de)elop ne1 produ't and shi,t 'apital into ne1 areas.PRANFs R+2 is 18Qo)erall industry R+21H.92 though PRANFs R+A is I.K9 Do)erall industry R+A &.8. PRAN is see#ing a higher return on e?uity and o)erall agro 3ased industry re'ogniCes that i, 'ompetition dri)es pro,it margin too lo1 in a parti'ular mar#et! it 1ill 3e impossi3le to earn high returns on the 'apital in)estor to ser)e the mar#et. C: Sensiti!ity analysis: 21R T7$ A$AR +>>. (ales ;2H9;128% 488KKK;I996 4$6 Cost o, goods sold Gross pro,it 2H1&12H82 4$6 eGpense : Administrati)e and selling 4;1%I;IIH6 0inan'ial 2Gpense 4KKI1I1896 operating pro,it 12&;8%1I8 Contri3ution to 1or#ers parti'ipation > 42I2;98K6 1el,are ,und Net pro,it 3e,ore taG 121I211;9 41HK&2&86 Pro)ision ,or in'ome taG Net pro,it a,ter taG 119K8H98I "ue to the 1%J in'rease in sales the pro,it a,ter taG 'hange 4in'rease6 3y 1I.I8J. (o it is highly sensiti)e. 21R T7$ A$AR +>><

(ales 4$6'ost o, goods sold Gross pro,it 4eGpense6 Administrati)e and selling 0inan'ial eGpense +perating pro,it 1el,are ,und Net pro,it 3e,ore taG Pro)ision ,or in'ome taG Net pro,it a,ter taG

;82KII981 V8HI&82%;%6 2H;292;H9 4;1&8K829 4H88HH9HI6

121&8;&K; Contri3ution to 1or#ers parti'ipation > 421922K%6 1191KK1%; 41&I&H986 11H;22&1&

"ue to the 1%J in'rease in sales the pro,it a,ter taG 'hange 4in'rease6 3y 1&.;1J.(o it is highly sensiti)e. 21R T7$ A$AR +>>: (ales ;HHI8HKHK 4892;H%2KI6 4$6Cost o, goods sold Gross pro,it 2;I8;1I12 4$6eGpense Administrati)e and selling 4;2I;88I%6 4HH88&91I6 0inan'ial eGpense +perating pro,it 12I8I198; Contri3ution to 1or#ers parti'ipation > 422&;K;16 1el,are ,und Net pro,it 3e,ore taG 122&%&2HH Pro)ision ,or in'ome taG 41HK&1;K6 12%8I%%91 Net pro,it a,ter taG "ue to the 1%J in'rease in sales! the pro,it a,ter taG 'hange 4in'rease6 3y 1&.H&J.(o it is highly sensiti)e. 21R T7$ A$AR +>>? (ales Cost o, goods sold 98&H%%9%;

Gross pro,it 4$62Gpense Administrati)e and selling 0inan'ial eGpense

4KKHHK;;886 2;89&2%8& 4;K&89%K&6

4;%%%118&6 +perating pro,it 1198H1;&H Contri3ution to 1or#ers parti'ipation > 41KI&8;;6 1el,are ,und Net pro,it 3e,ore taG Pro)ision ,or in'ome taG Net pro,it a,ter taG 11H92;2I9 422;%I8&6 118KIHH9K

"ue to the 1%J in'rease in sales! the pro,it a,ter taG 'hange 4in'rease6 3y 12.12J.so it is highly sensiti)e

d9 6aluation
Calculation of sustainable "rowth: year 2%%& 2%%I 2%%8 2%%K R+2 18J 1&J 12J 9J RatioU 1$ pro ita tertax
2 U .8KH 53. ! 2 1$ U.82& 50.3$ 2+ 1$ U.I;9 50.$+ 2+ 1$ U.2;1 3+.1!
dividend

(ustaina3le gro1th rate ;.8 K.H9 8.;K 2.82

1$

200#

200+

41Wg6

U 2K41W.%2826 U2K.K8 Cost o, 'ommon sto'#

$ % "
U e U U 9.IJ.

Wg

2+.+5 W.%282 3!+

" 0 U
U

%g

2+.+5 .$ .0252

U &;H +ecisi&n: i, intrinsi' )alue is D than ar#et pri'e. Then 1e 'an hold the share.

*hen intrinsi' )alue Q then mar#et pri'e 1e ha)e to sell the shares. Though! here the 'hange is partial 4in'rease6 so! 1e hold or pur'hase o, ne1 share.

e9 Ris analysis:
-usiness ris : the ris# to the ,irm o, 3eing una3le to 'o)er operating 'ost$ is assumed to 3e un'hanged .these assumptions means that the ,irmFs a''eptan'e o, a gi)en proAe'ts does not e,,e't its a3ility to meet operating 'osts.

2%%& sales H82H.1%22H

2%%I HH81.&1HHI

2%%8 H9HK.;&&I2

2%%K ;KH%.%%;28

averagesales = x =

x #52#.1022# + ##51.31## + #$#+.!333 2 + !+#0.00!25 = n

UH9;1.&18I2 Standard de!iation

( #52#.10 #$!1.31)
U
#33520.#1

( ##51.31 #$!1.31)

( #$#+.!3 #$!1.31)

(!+#0.0 #$!1.31)

U;8K.I8 C6:

!5+. 5 #$!1.31

U.1%

21R industry: 2%%& 1&&8;H 2%%I 1&IK&2

(ales

averagesales = x =

x 1335!# + 13 + 2 = n 2

U1&I1%9.8 Standard de!iation:

(1335!# 13
U UH&;.92

10$.5)

(13

+32 13 10$.5)

5 +012.5

C6: U

#3!.$2 13 10$.5

U.%%88 2inancial Ris : The ris# to the ,irm o, 3eing una3le to 'o)er re?uired ,inan'ial o3ligations 4interest! lease payments! pre,erred sto'# di)idends6$is assumed to 3e un'hanged. This assumptions means that proAe'ts are ,inan'ed in su'h a 1ay that the ,irmFs a3ility to meet re?uired ,inan'ing 'ost is un'hanged. 2%%& Total de3t ratio H8J 2%%I Total 2%%8 Total 2%%K Total

"e3t e?uity ratio K&.2HJ

"e3t ratio

"e3t ratio

"e3t ratio

de3t ratio e?uity

de3t ratio e?uity

de3t ratio e?uity

HI.K;J

8%.8&J

H2.HKJ

8%.2HJ

H1.I%J

I8.1;J

/ecision: i, the )alue is more than .8 then the )alue is good and i, the )alue is less than .8 then the )alue is 3ad. Eere all the )alue is more than .8 so that 1e 'an say that the ,irms ha)e the a3ility to meet the re?uired ,inan'ing.

C1441N S&B$ 12 -A3ANC S7$$T AN/ &NC14$ STAT$4$NT

c&mm&n si:e &' 4alance sheet 2003 2%%I 2%%8 2%%K &HJ &IJ &2J &%J 19J 2J 2J 2J I;J 1.K%J 9.K%J 1.9%J 1%%J I.;&J I%.9HJ %.;;J 1.H2J %.1HJ %.IHJ %.11J 81J &J ;J 2J 1%%J IJ I&J 1J 2.%%J %.%1J %.&KJ %.82J %.1&J ;J 8J 1;J 2J 1KJ 1%%J I9J IJ 1%J &J 1%%J 8J I2J 1.&%J %.9%J %.HKJ %.82J %.I;J %.2HJ ;J IJ 19J 2J 1HJ 1%%J 8%J 8J 9J IJ 1%%J 8J I&.%%J 1.&%J %.K&J %.1HJ %.I8J %.I%J %.18J ;J IJ 2%J 2J 1KJ 1%%J

%et asset Tangi3le ,iGed asset At 'ost less depri'iation in)estment4at 'ost6 C$rrent Asset sto'# trade de3tors ad)an'es and deposits 'ash and 'ash e?ui)alants *&tal lia4ilities an- shareh&l-er e;$it2 c$rrent lia4ilit2 'urrent position o, long term loan and de3tor short term loan ,or 3an# lia3ilities ,or goods lia3ilities ,or eGpenses lia3ilities ,or other ,inan'e in'ome taG paya3le un'laimed di)idend Shareh&l-er e;$it2 share 'apital share premium reser)e and surplus proposed di)idend .ong term de3t *&tal

;.I;J I.2&J 1K.&9J 2.%&J 19.H%J 1%%J

C&mm&n si:e &' inc&me statement 2003 sales 'ost o, goods sold administrati)e and selling ,inana'ial eGpense 'ontri3ution to 1or#ers parti'ipation and 1el,are ,unds pro)ision ,or in'ome taG 1%%J HIJ 11J 9J %.&2J %.2&J 2004 1%%J HIJ 1%J 9J %.2;J %.1HJ 2005 1%%J HIJ 1%J 9J %.2;J %.22J 2006 1%%J HHJ 9.9%J 9.22J %.1;J %.2KJ

&ive >ear+ &inancial Stati+tic+

Part-<
2indin"s # Recommendation Pran is the largest gro1er and pro'essors o, ,ruits and )egeta3les in the 'ountry. At the time o, preparing this term paper 1e dis'o)er )arious 1ays o, doing ,inan'ial and 3usiness 'al'ulations. (u'h as 1e did 'al'ulation o, di,,erent ratios and analysis li#e '(P"N)* +,N+#)#-#)Y* -A.(A)#"N* and R#+/ ANA.Y+#+. *e also had an idea o, ,ore'asting di,,erent 3usiness ris#s asso'iated 1ith the ,irmFs o)erall ,inan'ial per,orman'e. *hile doing this term paperC 1e ha)e to gone through )arious di,,i'ulties. li#e the annual report in not 1ell$managed! some in,ormation relating to their 3usiness is not sho1ing the proper proAe'tion o, sales! pro,it! and losses. +)erall industry in,ormation 1as not a)aila3le! la'# o, ele'tri'ity! hampered at the time o, preparing this assignment. A,ter analyCing the ,inan'ial statement o, PRAN 1e ,ind out that o)erall position o, the 'ompany in an agro 3ased industry is in top position in Bangladesh.

M2.524-L-(>

,o prepare a report one is to &epen& on information to ma*e it fr'itf'l. ;< are also not exception of t)is. ,o prepare o'r report .e )a2e collecte& information from o'r assigne& topic. ,)e information t)at contains in t)e report is from /ot) primar- an& secon&arso'rces. 4s a re8'irement of a term project o'r report is &i2i&e& in to t)ree main parts. =irst part contain o2er 2ie. of t)e organi>ation secon& part contain 8'alitati2e anal-sis t)ir& part contain 8'antitati2e anal-sis an& part fo'r incl'&es fin&ings. ;e )a2e ta*en )elp of secon&ar- so'rce of information li*e ann'al report9 catalog'es9 .e/ site an& also &ifferent perio&icals an& articles .)ic) contains information a/o't (14?. =or t)e secon& an& t)ir& part of o'r report .e )a2e to &epen& on primar- &ata. =or t)is project .e )a2e collecte& &ata /- o/ser2ation. ,)e acc'rac- of &ata is ens're& /- o'r co'rse instr'ctor.

L*M*./.*-0 -& .52 S.$4>

0n preparing t)is report .e face some pro/lems s'c) as9 @ac* of acc'rate information. @ac* of electricit-. ,)e rele2ant information .as not s'fficient to ma*e an in &ept) t)e st'&- on s'c) iss'e. @ast /'t not t)e least9 t)e f'n&s t)at .ere a2aila/le for t)e st'&- also t).arte& in ma*ing t)e st'&- more scientific as .ell as .)ic) can /e replicate&.