Analyzing of Financial and Non-

Financial Performance

PRAN AGRICULTURE MARKETING COMPANY LTD & GOLDEN HARVEST AGRO INDUSTRIES LTD
Submitted To:

Leo Vashkor Dewri

Senior Lecturer

Bachelor of Business Administration Department

East West University.

Submitted By:

SL Names ID Numbers
1 Asif Imtiaz 2017-1-10-087
2 Saif Shahriar Saumma 2016-2-10-129

Fin201 (Business Finance)

Section: 02

Submission Date: July 25, 2019

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Table of Contents
Executive Summary ...................................................................................................................................... 3
Introduction ................................................................................................................................................. 4
Financial Analysis ....................................................................................................................................... 6
Ratio Analysis .......................................................................................................................................... 6
Other Financial Analysis: ........................................................................................................................ 19
Strategy and forward planning................................................................................................................ 22
Strategy .................................................................................................................................................. 22
Forward Planning ................................................................................................................................... 22
Competitor Analysis ................................................................................................................................. 23
Cash flow ................................................................................................................................................... 29
Administrative Costs Structure: .............................................................................................................. 30
Non- financial performance Indicators ................................................................................................... 31
Conclusion: ................................................................................................................................................. 33
Reference .................................................................................................................................................... 34

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Executive Summary

Knowledge and learning become perfect when it is associated with theory and practice. Theoretical
knowledge gets its perfection with practical application. As our educational system predominantly text
based, by studying real situation, students can train and prepare themselves for the job market. In today’s
world, practical work is highly needed to gain idea, knowledge and experience from all over the world.
Ratio analysis is the main task of this report. Therefore, this report includes various types of ratio measure
and analysis. After that we have discusses competitor analysis and we have use graphical images to compare
ratios of competitors and other financial terms. As well as we have discusses the Non-financial performance
indicators. This is the life term learning and every position we hold in the future this analysis will help us
to find out the company’s financial conditions. After analyzing company can find out their strong and weak
points.

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Introduction

PRAN is the largest agro food processor and agro food exporter of Bangladesh. Bangladesh has an economy
based on agriculture. Therefore, our view is to enrich our agriculture sector. Keeping this view in mind, we
look forward to creating more demand for agro product made by our native farmer and we help to produce
more agro products by giving proper training and financial support to our poor farmers. We want our
contract farming to be larger to the largest. Again, for processing this food, employment is created. By this
way, our view is to create more employment. Our view is to make this product available to every hook and
corner of our country so that every consumer gets the right to consume.
Today they are the largest processors of fruits vegetables in Bangladesh. They have shown the way of
contract farming in Bangladesh for the first time, procure raw material directly from the farmers and
processes through high-tech machinery at our several factories into hygienically packed food, and drink
products. As they are the largest contract manufacturer, they promote contract farmers and help them
produce quality crops with increased yields and to obtain fair prices.
Throughout last five years period “Pran Agriculture Marketing Company Ltd” generates significant cash
flows, remained in a strong financial position, which is a high priority for them, and push them to
competitive advantage in the capital-intensive cruise industry. Financial key performance are analyzing
below:
Table 1.1 Revenue Growth in 2014 to 2018 fiscal year.

2014 2015 2016 2017 2018

Revenue Growth 1.72 1.88 2.09 2.38 2.53

Revenue Growth (Billion Tk)

2.38 2.53
2.09
1.72 1.88

2014 2015 2016 2017 2018

Figure 1.1: Revenue Growth

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As it is clear that Agricultural Marketing Company Ltd. Revenue has creased every year. In 2014, the
revenue was 1.72 billion taka but in 2018, it had increased by 47.09% to 2.53 billion taka. It almost 50%
growth within five years. This achievement can be achieved when financial goals are well defined. So next
5 years the percentage will rise above 50%.

Table 1.2 Net Profit Earnings 2014 to 2018.

2014 2015 2016 2017 2018

Net Income 55.4 55.5 53.1 54.9 56.1

Net Income (Million Tk)

56.1
55.4 55.5
54.9

53.1

2014 2015 2016 2017 2018

Figure 1.2: Net Income

As it is clear that the net come has increased from past five years. As our Company is net income has
decreased in 2016 but the company improved in next year immediately. This clearly show that the company
has capability to pass their difficult time and recover it quickly.

5
Financial Analysis

Ratio Analysis

Particulars 2014 2015 2016 2017 2018

Short-term solvency
Current Ratio 139% 157% 131% 136% 142%
Quick Ratio 44% 58% 49% 61% 65%
Cash Ratio 3% 6% 3% 9% 4%
Net working Capital to asset 19% 20% 15% 18% 22%
Activity ratio
Total Asset Turnover 1.576 1.253 1.43 1.627 1.773
Receivable Turnover 23.041 22.690 17.7 16.938 18.76826
Average Collection Period 15.841 16.087 20.36 21.550 19.44773
Payable Turnover 357.580 144.8 339.91 347.71 320.57
Average Pay Period 1.010 2.49 1.06 1.03 1.01
Inventory Turnover 2.625 2.791 2.96 3.514 3.635
Days in Inventory 139.062 130.789 121 103.872 100.424
Profitability ratio
Net Profit Margin 3% 3% 3% 2% 2%
Return on Asset 5% 4% 5% 4% 4%
Return on Equity 0.114 0.108 10% 10% 9%
Market value
Earnings Per Share 6.93 6.95 6.62 6.87 6.94
Price-Earnings Ratio 31.99 27.48 29.56 31.53 33.6
Market to book ratio 3.65 2.95 2.88 3.02 3.01
Financial leverage
Debt ratio 56% 66% 31% 61% 58%
Equity Multiplier 2.250 2.912 2.680 2.550 2.373
Interest Coverage 0.542 0.636 0.568 0.618 0.557089
Long term Debt to Equity Ratio 14% 87% 40% 28% 16%
Revenue Growth 1.72 1.88 2.09 2.38 2.53
Gearing 12% 46% 29% 22% 14%
Profitability Ratio(contd)
Return on Capital employed 13% 13% 7% 10% 10%
Return on Shareholders Fund 11% 11% 10% 10% 9%
net profit Percentage 3% 3% 3% 2% 2%
Gross Profit percentage 22% 21% 19% 19% 19%
Table 2.1: Ratio Analysis of AMCL from 2014-2018

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Now we all focus the ratio analysis of AMCL from 2014 to 2018. Specifically we will focus on graphical
representation of those five years.
1. Short-term solvency, 2. Profitability ratio, 3. Market value,
4. Activity ratio, 5. Financial leverage 6. Financial Structure

1. Short-term Solvency: Short-term solvency ratio measure the Firm’s ability to meet recurring financial
obligations. Here are we discuss four ratio’s.
Those ares-
I. Current Ratio,
II. Quick Ratio,
III. Cash Ratio and
IV. Net Working Capital to asset ratio.

Each of them are shown below with calculations and graphical charts.

I. Current Ratio: Current Ratio are calculated by Current asset divided by Current liabilities.
[Higher is better for any Company]

2014 2015 2016 2017 2018

Current Ratio 1.39 1.57 1.31 1.36 1.42

Current Ratio
1.60 1.57
1.50 1.42
1.39 1.36
1.40 1.31
1.30
1.20
1.10
2014 2015 2016 2017 2018

Figure 2.2: Current Ratio

II. Quick Ratio: Quick ratio determines firm’s ability to pay off current liabilities without relying on
the sale of inventories.

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 Calculations: [Higher is better for any Company]
Quick asset: Current assets – inventories.
Quick Ratio = Quick assets ÷ Current Liabilities.

2014 2015 2016 2017 2018

Quick Ratio 44% 58% 49% 61% 65%

Quick Ratio
80%
61% 65%
58%
60% 49%
44%
40%

20%

0%
2014 2015 2016 2017 2018

Figure 2.3: Quick Ratio

III. Cash Ratio: It is calculated by Cash divided by Current liabilities. Cash ratio shown what is the
percentage of Cash Company has against its total current liabilities.

Calculations: Cash ÷ Total Current liabilities. [Higher is better for any Company]

2014 2015 2016 2017 2018

Cash Ratio 3% 6% 3% 9% 4%

Cash Ratio
10%
9%
8%
6%
6%
4%
4% 3% 3%

2%

0%
2014 2015 2016 2017 2018

Figure 2.4: Cash Ratio

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 IV. Net Working Capital to asset ratio: What is the Networking capital of total assets? Otherwise we can
say what is the percentage of company’s total assets are utilizing for day-to-day activities.

Calculations: Networking Capital= Current Asset- Current Liabilities.

Networking Capital to total assets= Networking Capital ÷ total assets.

Net working Capital to asset

25%
20% 22%
20% 19%
18%
15%
15%

10%

5%

0%
2014 2015 2016 2017 2018

Figure 2.5: Net Working Capital to asset ratio

2. Activity ratio: Activity measures how effectively the firm’s assets are being managed. Activity ratio
considered -

• Total Asset Turnover

• Receivable Turnover
• Average Collection Period
• Payable Turnover
• Average Pay Period
• Inventory Turnover
• Days in Inventory

I. Total Asset Turnover: How company utilize the total assets and generate sales which are
calculated here.

Calculations: Total Operating Revenues ÷ Total Assets. [Higher is better for any Company]

2014 2015 2016 2017 2018

Total Asset 1.576 1.253 1.43 1.627 1.773
Turnover

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 Total Asset Turnover
2.000
1.773
1.576 1.627
1.500 1.43
1.253

1.000

0.500

0.000
2014 2015 2016 2017 2018

Figure 2.6: Total Asset Turnover Ratio

II. Receivable Turnover: If Company can collect money from their receivables; they can utilize
those to generate more assets.

Calculations: Total Operating Revenues ÷ Average Receivables.

2014 2015 2016 2017 2018

Receivable Turnover 23.0 22.7 17.7 16.9 18.8

Receivable Turnover
25.0 23.0 22.7
20.0 17.7 18.8
16.9
15.0
10.0
5.0
0.0
RECEIVABLE TURNOVER

2014 2015 2016 2017 2018

Figure 2.7: Receivable Turnover

III. Average Collection Period: These ratios provide information on the success of the firm in
managing its investment in accounts receivable.

Calculations: 365 days ÷ Receivables Turnover.

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 2014 2015 2016 2017 2018
Average Collection Period 15.8 16.1 20.4 21.5 19.4

Average Collection Period

25.0
20.4 21.5
20.0 19.4
15.8 16.1
15.0
10.0
5.0
0.0
AVERAGE COLLECTION PERIOD

2014 2015 2016 2017 2018

Figure 2.8: Average Collection Period

IV. Payable Turnover: The Company’s total purchase and what is the total account payable are
calculated here.

Calculations: Total purchase ÷ Total payable.

2014 2015 2016 2017 2018

Payable Turnover 357.58 144.80 339.91 347.71 320.57

Payable Turnover
400.00
357.58 339.91 347.71
320.57
300.00

200.00 144.80

100.00

0.00
PAYABLE TURNOVER

2014 2015 2016 2017 2018

Figure 2.9: Payable Turnover

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 V. Average Pay Period: If the company can pay their accounts payable earlier then their supplier
will be happy and in future company can purchase more in accounts.

Calculations: 365 days ÷ payable turnover

2014 2015 2016 2017 2018

Average Pay 1.01 2.49 1.06 1.03 1.01
Period

Average Pay Period

3.00
2.49
2.00
1.01 1.06 1.03 1.01
1.00

0.00
AVERAGE PAY PERIOD

2014 2015 2016 2017 2018

Figure 2.10: Average Pay Period

VI. Inventory Turnover: It is measure how quickly inventory is produced and sold.

Calculations: Costs of goods sold ÷ Average inventory

2014 2015 2016 2017 2018

Inventory Turnover 2.625 2.791 2.96 3.514 3.635

Inventory Turnover
4.00 3.51 3.63
2.62 2.79 2.96
3.00
2.00
1.00
0.00
INVENTORY TURNOVER

2014 2015 2016 2017 2018

Figure 2.11: Inventory Turnover

VII. Days in Inventory: How many days are product remains in inventory.

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 Calculations: 365 days ÷ Inventory turnover.

2014 2015 2016 2017 2018

Days in Inventory 139.06 130.79 121 103.87 100.42

Days in Inventory
150.00 139.06 130.79 121
103.87 100.42
100.00

50.00

0.00
DAYS IN INVENTORY

2014 2015 2016 2017 2018

Figure 2.12: Days in Inventory

3. Profitability Ratio: Here we all calculated DuPont System of financial control. Those are:

I. Net Profit Margin

II. Return on Asset
III. Return on Equity

I. Net Profit Margin: The trade firms and service firms tend to have low and high profit ratios
perspective.
Calculations: Net income ÷ Total Operating Revenue

2014 2015 2016 2017 2018

Net Profit Margin 3% 3% 3% 2% 2%

Net Profit Margin

4%
3% 3% 3%
3% 2% 2%
2%
1%
0%
NET PROFIT MARGIN

2014 2015 2016 2017 2018

Figure 2.13: Net Profit Margin

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 II. Return on Asset (ROA): how company utilize total asset and generate net income of company is
shown here.
Calculations: Net profit margin ÷ Total Asset [Higher is Better for any Company]

2014 2015 2016 2017 2018

Return on Asset 5% 4% 5% 4% 4%

Return on Asset
6%
5% 5%
4% 4% 4%
4%

2%

0%
RETURN ON ASSET

2014 2015 2016 2017 2018

Figure 2.14: Return on Asset

III. Return on Equity (ROE): What is the percentage of shareholder’s equity of net income is shown
here.

Calculations: Net profit margin ÷ Total Shareholders’ Equity.

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 2014 2015 2016 2017 2018
Return on Equity 11% 0.108 10% 10% 9%

Return on Equity
12% 11% 0.108
10% 10% 10% 9%
8%
6%
4%
2%
0%
RETURN ON EQUITY

2014 2015 2016 2017 2018

Figure 2.15: Return on Equity

4. Market value: It also reflects investor’s views of the growth potential of different sectors.
[Higher is better for investors and Company]

I. Earnings Per Share

II. Price-Earnings Ratio
III. Market to book ratio

I. Earnings per Share: Company’s earnings per share is reflects about earning per share
company gain.

Calculations: [net income-dividend on preferred stock] ÷ total outstanding share

2014 2015 2016 2017 2018

Earnings Per Share 6.93 6.95 6.62 6.87 6.94

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 Earnings Per Share
7
6.93 6.95 6.94
6.9 6.87
6.8
6.7 6.62
6.6
6.5
6.4
EARNNING PER SHARE

2014 2015 2016 2017 2018

Figure 2.16: Earnings per Share

II. Price-Earnings Ratio (P/E Ratio): P/E ratio shows how much investors are willing to pay
for $1 of earning per share.

Calculations: [Market price per share] ÷ EPS

2014 2015 2016 2017 2018

Price-Earnings Ratio 31.99 27.48 29.56 31.53 33.6

Price-Earnings Ratio
35 33.6
31.99 31.53
30 29.56
27.48
25
20
15
10
5
0
PRICE-EARNING RATIO

2014 2015 2016 2017 2018

Figure 2.17: Price-Earnings Ratio

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 III. Market to book ratio: The M/B ratio compares the market value of the firm’s investments
to their cost. An M/B< 1 indicates that the firm has been successful in creating value for
its shareholders.

Calculations: Market price per share ÷ Book value per share

2014 2015 2016 2017 2018

Market to book ratio 3.65 2.95 2.88 3.02 3.01

Market to book ratio

4.00
3.65
2.95 2.88 3.02 3.01
3.00

2.00

1.00

0.00
MARKET TO BOOK RATIO

2014 2015 2016 2017 2018

Figure 2.18: Market to book ratio

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5. Financial Leverage: Financial leverage show the firms debt control, debt situation over assets and
also shows the Conditions of equity, interest

Calculations:
• Debt ratio= total debt ÷ total assets
• Equity multiplier = total assets ÷ total equity
• Interest coverage= EBIT ÷ Interest expense
• Long term Debt to Equity Ratio= Long term debt ÷ Total Equity

2014 2015 2016 2017 2018

Debt ratio 56% 66% 31% 61% 58%
Equity Multiplier 2.25 2.91 2.68 2.55 2.37
Interest Coverage 0.54 0.64 0.57 0.62 0.56
Long term Debt to Equity Ratio 14% 87% 40% 28% 16%

Financial Leverage
300% 291%
268%
255%
250% 237%
225%

200%

150%

87%
100%
66%
56% 61%58% 54%64%57%62%56%
31% 40%
50% 28%
14% 16%

0%
DEBT RATIO EQUITY MULTIPLIER INTEREST COVERAGE LONG TERM DEBT TO
EQUITY RATIO

2014 2015 2016 2017 2018

Figure 2.19: Financial Leverage

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Other Financial Analysis:

Figure 2.20: Gross Margin

19
Figure 2.21: Ownership Distribution & Growth in Share Holders Equity

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Figure 2.22: EBIT & Dividend Announced

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Strategy and forward planning

PRAN started its export operation back in 1991 by exporting their products to France. From then on, they
have expanded their export business worldwide and now, they are exporting their products in more than
100 countries in the world. PRAN Export Limited was formed with a view to join global business and to
create a strong representation of Bangladesh in the world’s Economic map. At present, PRAN Export
limited has divided their export market in 6 units. Those are India, Asia, Middle East, Africa, Europe and
America.

Strategy

 To target different demographic groups to achieve maximum access. Already AMCL fulfill the
countries target market start exporting their product around 106 countries. Even in Europe
Specially, Germany, Switzerland, France etc.

 Therefore, they have to focus on their Positioning in the market. Therefore, take the market in the
Europe is not easy, for that, they have to maintain good product quality, strong financial
capabilities.

 It is known that they have huge loan in the bank, which are unpaid, and the interest expenses are
rising for them so to make good relation with the bank they have to paid their loan first otherwise
it will be difficult for them to collect money from bank in future.

Forward Planning

 As our country are economic, booming this is the right time for AMCL to diversify their target
customer and introduce new product in the market.

 Increasing number of products in Europe and Asian Region as India is very large market. The
potentiality to take the market is quite easy as their lifestyle and taste are quite similar to us.

 AMCL has to take very good positon in the market of America as that market has great potentiality.
To hold that market they has to build very strong position in their financial Sides.

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Competitor Analysis

As a competitor, Golden Harvest Agro Industries Limited is very challenging for Pran Agriculture
Marketing Company Ltd. Let’s focus on their last year 2017 & 2018 Financial terms.

Ratios of Golden-Harvest-Agro-Industries-Limited 2017-2018

Particulars 2017 2018

Current Ratio 0.99 1.18
Quick Ratio 0.77 0.86
Cash Ratio 4% 1%
Net working Capital to asset 2% 3%
Total Asset Turnover 0.03 0.04
Receivable Turnover 18.02 24.37
Average Collection Period 2016.57 1516.50
Payable Turnover 9.29 8.61
Average Pay Period 39.28 42.39
Inventory Turnover 1.84 1.74
Days in Inventory 197.93 209.61
Net Profit Margin 1% 1%
Return on Asset 3% 3%
Return on Equity 8% 9%
Earnings Per Share 1.89 2.03
Price-Earnings Ratio 24.37 18.39
Market to book ratio 0.97 0.95
Debt ratio 63% 63%
Equity Multiplier 2.710 2.700
Interest Coverage 0.908 1.101
Long term Debt to Equity Ratio 68% 83%

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Ratios of Pran Agriculture Marketing Company Ltd 2017-2018

Particulars 2017 2018

Current Ratio 1.362 1.424
Quick Ratio 0.607 0.651
Cash Ratio 9% 4%
Net working Capital to asset 18% 22%
Total Asset Turnover 1.627 1.773
Receivable Turnover 16.938 18.76826
Average Collection Period 21.550 19.44773
Payable Turnover 347.71 320.57
Average Pay Period 1.03 1.01
Inventory Turnover 3.514 3.635
Days in Inventory 103.872 100.424
Net Profit Margin 2% 2%
Return on Asset 4% 4%
Return on Equity 10% 9%
Earnings Per Share 6.87 6.94
Price-Earnings Ratio 31.53 33.6
Market to book ratio 3.02 3.01
Debt ratio 61% 58%
Equity Multiplier 2.550 2.373
Interest Coverage 0.618 0.557089
Long term Debt to Equity 28% 16%
Ratio

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 Golden-Harvest-Agro-Industries-Limited

Short-term solvency Ratio 2017 2018

Current Ratio 0.99 1.18
Quick Ratio 0.77 0.86
Cash Ratio 4% 1%
Net working Capital to asset 2% 3%

Pran Agriculture Marketing Company Ltd

Short-term solvency Ratio 2017 2018

Current Ratio 1.362 1.424
Quick Ratio 0.607 0.651
Cash Ratio 9% 4%
Net working Capital to asset 18% 22%

We that Current ratio is higher is better. Here we can see that “Current Ratio” of Golden-Harvest-Agro-
Industries-Limited is much lower than Pran Agriculture Marketing Company Ltd. The “quick ratio” of
Golden Harvest Company is higher for both year than AMCl. However, the “Cash ratio” and NWC to
Asset ratio of AMCL is higher than Golden Harvest Company. This shows the poor financial condition
of Golden Harvest Agro Industries ltd.

Golden-Harvest-Agro-Industries-Limited

Activity ratio 2017 2018

Total Asset Turnover 0.03 0.04
Receivable Turnover 18.2 24.37
Average Collection Period 25.17 24.50
Payable Turnover 9.29 8.61
Average Pay Period 39.28 42.39
Inventory Turnover 1.84 1.74
Days in Inventory 197.93 209.61

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 Pran Agriculture Marketing Company Ltd

Activity ratio 2017 2018

Total Asset Turnover 1.627 1.773
Receivable Turnover 16.938 18.76826
Average Collection Period 21.550 19.44773
Payable Turnover 347.71 320.57
Average Pay Period 1.03 1.01
Inventory Turnover 3.514 3.635
Days in Inventory 103.872 100.424

As we can see from the chart of 2017 & 2018, the total asset turnover ratio is higher for AMCL Than
GHAIL. But it should be higher is better as well as Receivable turnover. Average Collection period
should be lower is better and AMCL collection period is lower than GHAIL. Inventory turnover if higher
than days in inventory will be low which is better for any company and AMCL has low than GHAIL.
As Competitor AMCL is in the good position than GHAIL in Activity Ratio.

Golden-Harvest-Agro-Industries-Limited

Profitability ratio 2017 2018

Net Profit Margin 1% 1%
Return on Asset 3% 3%
Return on Equity 8% 9%

Pran Agriculture Marketing Company Ltd

Profitability ratio 2017 2018

Net Profit Margin 2% 2%
Return on Asset 4% 4%
Return on Equity 10% 9%

ROA & ROE and Net profit Margin is higher is better in the any other Industries. Here we can see
AMCL has higher Profitability ratio than Golden Harvest Agro Industries Ltd.

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 Golden-Harvest-Agro-Industries-Limited

Market Value 2017 2018

Earnings Per Share 1.89 2.03
Price-Earnings Ratio 24.37 18.39
Market to book ratio 0.97 0.95

Pran Agriculture Marketing Company Ltd

Market Value 2017 2018

Earnings Per Share 6.87 6.94
Price-Earnings Ratio 31.53 33.6
Market to book ratio 3.02 3.01

Financial leverage ratios is very important for any other company. With these ratios, company will attract
their investors. But Golden Harvest Agro Industries Ltd.’s EPS, P/E ratio and Market to book ratio is
lower than AMCLs. So when AMCL attract investors they can attract more investors than GHAIL.

Golden-Harvest-Agro-Industries-Limited

Financial Leverage 2017 2018

Debt ratio 63% 63%
Equity Multiplier 2.710 2.700
Interest Coverage 0.908 1.101
Long term Debt to Equity Ratio 68% 83%

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 Pran Agriculture Marketing Company Ltd

Financial Leverage 2017 2018

Debt ratio 61% 58%
Equity Multiplier 2.550 2.373
Interest Coverage 0.618 0.557089
Long term Debt to Equity Ratio 28% 16%

The Debt ratio of GHAIL is lower than AMCLs Debt ratio. But both company’s bebt ratio is higher than
40% which is very bad financial or danger sign for companies. Others ratios are very close to each other.
But the Long term debt to equity ratio of AMCL is much lower than GHAIL. Which indicate very good
financial position of AMCL than GHAIL.

After all ratios analysis the AMCL has good financial position than Golden Harvest Agro Industries Ltd.
All ratios reflect the strong financial position for any company. IF GHAIL want to compete against
AMCL than they have to focus on those ratios specially, Profitability and Financial leverage ratios. As
the share price are decreasing for Golden-Harvest-Agro-Industries-Limited company’s AMCL still
holding good position in the market and taking advantage of financial position they are attracting more
investors, customers, fund than Golden-Harvest-Agro-Industries-Limited.

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Cash flow

Particulars 30 June, 2014 30 june, 2015 30 june, 2016 30 june, 2017 30 june, 2018
Cash Flows from Operating Activities :
Cash received from Customers 1,917,672,725 2,092,494,970 2,272,628,984 2,546,899,247 2,758,468,974
Less: Cash Paid to Suppliers (1,133,228,627) (1,302,629,049) (1,440,624,070) (1,625,128,121) (1,784,447,530)
Less: Cash Paid to Employees & Others (522,276,213) (567,476,978) (588,637,347) (660,393,697) (716,712,955)
Cash Generated from Operations 262,167,885 222,388,943 243,367,567 261,377,429 257,308,489
Less: Interest Paid (130,388,836) (111,931,355) (120,487,874) (117,682,733) (126,472,662)
Less: Income Tax Paid (26,936,330) (41,736,411) (45,492,491) (35,416,775) (34,429,536)
Net Cash Generated from (Used in) OperationActivities 104,842,719 68,721,177 77,387,202 108,277,921 96,406,291
Cash Flows from Investing Activities :
Acquisition of Property, Plant & Equipment (54,187,468) (511,926,066) (4,100,000) (26,001,232)
Disposal of Property,Plant & Equipment 126,000,000
Net Cash Used in Investing Activities (54,187,468) (385,926,066) (4,100,000) (26,001,232) -
Cash Flows from Financing Activities :
Long Term Loans (42,872,500) 412,033,389 (269,526,341) (51,233,672) (63,415,049)
Short Term Loans 9,780,848 (53,094,067) 206,400,658 38,508,815 (12,667,886)
Liabiities for Other Finance (1,756,741) 879,244 (95,797) 1,209,423 (146,966)
Dividend Paid (24,300,554) (25,362,116) (25,476,095) (24,762,925) (23,181,684)
Net Cash Flows from Financing activities (59,148,947) 334,456,450 (88,697,575) (36,278,359) (99,411,585)
lncrease/(Decrease)in Cash & Cash Equivalents (8,493,696) 17,251,561 (15,410,373) 45,998,330 (3,005,294)
Cash & Cash Equivalents at Opening 24,375,018 15,881,322 33,132,883 17,722,510 63,720,840
Cash & Cash Equivalents at Closings 15,881,322 33,132,883 17,722,510 63,720,840 60,715,546

Figure 1: Cash flow Statement of 2018 and 2017

2018:
Huge amount of cash are collected from customers in 2018, which is around 2.7 billion tk. In the
other hand, 63.4 million taka for long loan and 13 million taka are short loan taken through the year.
Dividend paid 2.3 million taka. This whole year company did not purchase any property, plant & equivalent.
So none of the cash invested in investing activities.
Beginning of the year the cash equivalents was 63 million taka but end of the year figure is 60.7 million
taka because of decreasing cash equivalents end of the year and most of cash outflow during this time.

2017:
Around 2.5 billion taka were collected in 2017 from customer. In other, hand 51 million long loan tk
taken through the year. Dividend paid was 24 million taka to the shareholders. For acquisition of property,
plant & Equipment Company spend around 26 million taka in this year.

Beginning of the year the cash equivalents was 17 million taka but end of the year figure is 63 million taka
because of “Short Term Loans, Liabilities for Other Finance” showing positive figure. Acquisition of
property still company’s cash flow increased.

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Administrative Costs Structure:

Figure 1: Administrative Expenses

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Non- financial performance Indicators

As a market leader in this sector, AMCL has performed many responsibilities outside the financial terms
and those are called non-financial performance indicators. As an example, they focuses many charity and
social responsibility to society, environment and community. The establishment of PRAN was based on
the vision of providing products that enhance health, nutrition, and well-being of society. Along the way,
it has contributed to increased rural livelihood in its domestic country, improvement in the standard of
living, a boost of the national foreign reserve and employment generation. PRAN is keenly aware of its
responsibility for society and this awareness is reflected in its activities.

Social Responsibilities
Integrate social responsibility into AMCL core businesses; the company has invested in quality well-
established social projects. They highlight the CSR strategy that shows AMCL’s purpose for social services,
assistance and rehabilitation, violating our business several decades ago Improving a healthy and
prosperous environment, and improving the quality of life of people living in poverty. AMCL CSR Policy
AMCL casts CSR outlook and policies; AMCL tries to fulfill all legal and moral issues of business.
Corporate Social Responsibility (CSR) is a set of standards that governs the AMCL business process in
order to collect content to deliver content from the actual supplier. As a responsible business house, AMCL
takes care of the interests of all stakeholders: Government, Investors, Employees, Environment, Consumers
and Communities - One of the public initiative of the AMCL. Most 'interference' nature is long-term. It
starts small, replicates itself when scale-up or feasible. Focus Areas: Education, health, and water,
livelihood programs for physically challenged and marginalized people and for preserving nature. In
addition, focuses – collecting Blood and donating, working with “Save the Children”, working along with
“Red Crescent” etc. Other activities are given below-

 Pran agro ltd contributed a lot to the betterment of education. Since last 5 years, they
are providing funds to the government for giving scholarships to the students.
 The company contributing in medical sector too. They are donating money every year to
establish hospitals in rural areas of Bangladesh.
 The company is also helping the agricultural sector, as they are highly dependent on
agriculture; they are buying raw materials directly from the farmers in a very reliable
price .And most of the time they are providing financial helps to the farmers.

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  They are also providing quality seeds, fertilizers, pesticides to the farmers. Which is
helpful for the agriculture, economy and farmers.
 They are holding many events to help physically unable people and.
 Creating working opportunities for women, which is highly effective for the economy.

Nepal Earthquake Support

AMCL stood beside the earthquake victims of neighboring Nepal by giving food products, Pran
said in a statement yesterday.
Eleash Mridha, director of Pran, handed over the food items such as 3,000 cartons of biscuits and
fruit drinks as part of its corporate social responsibility to Hari Kumar Shrestha, ambassador of
Nepal to Bangladesh, at a programed held at the Nepal Embassy in Dhaka, it said.

For Farmers
PRAN Food’s principal source of raw food material is contract farming. It greatly contributes to
an economic improvement of rural livelihood by means of employment generation and overall
improvement of the condition of the rural localities. Growers are provided with quality inputs
(seeds, fertilizers, pesticides), improved and advanced cultivation techniques, access to finance,
crop insurance, advanced storage and collection system and access to the international market
for their products.

Community
AMCL has collaborated with Handicap International Bangladesh in the 1st phase supported 1,200
Household (HH) providing for 5,044 family members in Kurigram and Sitakunda. In the 2nd phase
additional 4,237 targeted beneficiary households including the people with disabilities (total 19,066
individuals) expecting to graduate from poverty and live a dignified life. BSRM Foundation Training
Center in Jashore is run by AMCL CSR desk with the help of ADORE, NGO based in Khulna. AMCL
Head Office HR department supports this program by placing orders for safety dress of AMCL
manufacturing/service units, which helps some of the 200 women earn livelihood and are not lured by the
traffickers. PRAN Group set up the agro processing plant at Ekdala of Natore in 2000. At present,
6000 people mostly women are working in the factory.The socio-economy index of the area
began to change gradually after the establishment of the factory. The company is working for
empowering the marginalized people, especially for the women.

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Conclusion:

Agricultural Marketing Co Ltd (AMCL) - PRAN is the first food processing company in Bangladesh to
achieve the prestigious distinction ISO 9001certification for their quality management system. This
supreme certification ensures that PRAN Products reach the consumers table maintaining the highest
level of quality. I addition to ISO, PRAN has international certifications like HALAL &amp; HACCP.
However, AMCL is not for more profitable in the preceding Years but it is a growing company. Its
performance is fair in respect of the Industry. However, to become more profitable and effective
utilization of its resources AMCL need to improve its present condition. We suggest some suggestion as
we think that fit the company to improve the overall performance.

• Effective utilization of the company’s resources should be allocated.

• the company should take more profitable projects to increase it’s
Profitability.
• As an agricultural company, training programs should be provided and Implemented in the all
levels of the organizations including the farmers.
• Optimal capital structure should be conformed to sustain profitability.
• New policies should be introduced for effective and efficient control of the resources.
• All the departments should act together for achieving the company objectives.

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Reference

Agricultural Marketing Co Ltd (AMCL) website: http://www.amclpran.com/

Dhaka Stock Exchange: https://www.dsebd.org/

Chittagong Stock Exchange: https://www.cse.com.bd/

Amar Stock: https://www.amarstock.com/stock/AMCL(PRAN)

Lanka Bangla Finance: https://www.lankabangla.com/

Golden-Harvest-Agro-Industries-Limited: http://www.goldenharvestbd.com/agro/
The Daily Star: https://www.thedailystar.net/
Financial Express: https://thefinancialexpress.com.bd/

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