1

RATIO ANALYSIS OF Industrial Promotional and Development Company of an!lades" #IPDC$%&

A Study To Compare Performance Through Financial Data

Course: Business Finance Course Code: FIN 201 Section: 2

Submitted to: Farzana Huda Senior Lecturer Department of Business Administration East West Uni ersit!

Submitted by:

"d# Fo!sa$ %a&ir Na+id Hossain "d# Nasir Uddin A&u Ba/ar Siddi0ue

Id: 200'(2(10(0)* Id: 2010(2(10(2,, Id: 2010(2(10(0-. Id: 2011(2(1,(0,'

Date of submission: December 15, 2013

LETTER OF TRANSMITTAL
11 Decem&er 201,

Farzana Huda Senior Lecturer Department of Business Administration East West Uni ersit!

Subject2 Su&mission of assi3nment on ratio ana$!sis of financia$ compan!#

Dear "adam2 We are +onored to su&mit t+is Assi3nment on ratio ana$!sis of financia$ compan! 4I5D67 as !ou +a e aut+orized us to in t+is semester# We are er! p$eased to prepare t+is assi3nment under !our 3uidance since it 3a e us t+e opportunit! to /no8 t+e process +o8 8e can do Financia$ ratio ana$!sis# 9+e con3enia$ atmosp+ere: t+e information assistance: feed&ac/ on t+e topic and to impro e t+is assi3nment: 8e are so 3ratefu$ to !ou# We tried our $e e$ &est to accumu$ate t+e information for !ou as compre+ensi e as possi&$e# We 8i$$ &e o&$i3ed to pro ide furt+er c$arification on t+is report 8+ene er necessar!#

Sincerely Yours,

Name "d# Fo!sa$ %a&ir Na+id Hossain "d# Nasir Uddin A&u Ba/ar Siddi0ue

ID# 200'(2(10(0)* 2010(2(10(2,, 2010(2(10(0-. 2011(2(1,(0,'

Si3nature

ACKNO LE!"EMENT

First and foremost 8e 8ou$d $i/e to e;press our 3ratitude and inde&tedness to our +onora&$e facu$t! Farzana Huda: Department of Business administration: East West Uni ersit!# We 8ou$d $i/e to t+an/ our madam for pro idin3 fu$$ assistance and detai$ed out$ine a&out +o8 to proceed 8it+ data co$$ection and 8ritin3 procedure# Wit+ +er ine;+austi&$e 3uidance: a$ua&$e ad ice: continuous inspiration: constructi e criticism and 3enerosit! s+e +e$ped us to carr! out t+is report successfu$$!

We a$so 8ou$d $i/e to some senior student for t+eir outstandin3 support to prepare t+is assi3nment# We 8ou$d furt+er $i/e to t+an/ a$$ t+e peop$e 8+o are 3i in3 us fu$$ support a$$ t+e time# At t+is sta3e: 8e must s+o8 our 3ratitude to our senior student of our uni ersit!: 8+o si3nificant$! assisted us#

Fina$$!: 8e 8ou$d $i/e to t+an/ to a$$ 3roup mem&ers t+at direct$! or indirect$! +e$ped us to pro ide and accumu$ate a$$ t+e necessar! information for t+e accomp$is+ment of t+is assi3nment#

TA#LE OF CONTENTS

Se0uence Num&er 9opic Name

5a3e Num&er

E$ecuti%e Su&&'ry

()

C*'+ter ,-( : INTRO!.CTION ,-, Ori/in o0 T*e study ,-1 Objecti%e o0 T*e Study ,-2 Met*odolo/y ,-3 Li&it'tions

(4 (4 (4 (4 (5

C*'+ter 1-( : Co&+'ny O%er%ie6

(7

1-, S*'re*oldin/ Structure 1-1 8ision 1-2 Mission 1-3 Objecti%es 1-) Core %'lues

(9 (9 ,( ,( ,,

2- C*'+ter 2-( : :resent'tion o0 R'tio An'lysis 3- C*'+ter 3-(: Findin/s 'nd Conclusion )- C*'+ter )-(: Re0erences

,2;1( 1, 11

E<EC.TI8E S.MMARY

<ur assi3nment topic +as &een c+oosin3 a financia$ compan! 8+ic+ is Industria$ 5romotiona$ and De e$opment 6ompan! of Ban3$ades+# Here 8e are 3oin3 to do ratio ana$!sis of t+is compan!# Industria$ 5romotiona$ and De e$opment 4I5D67 esta&$is+ed in 2. No em&er 1'.1# =atio ana$!sis is t+e most popu$ar trend to e a$uate a financia$ compan!>s performance o er !ears 8it+ anot+er !ear# In our report 8e +ad to stud! t+ese compan!>s financia$ statements for t+e $ast fi e !ears t+en +ad to ana$!ze and 3i e si3nificant comments re3ardin3 t+e c+an3es in t+e financia$ position# Ana$!sis and interpretation of t+ese financia$ statements t+rou3+ ratio ana$!sis +as no8 &ecome an important tec+ni0ue for performance appraisa$ &ecause t+e in estors: financia$ e;perts: mana3ement e;ecuti es and t+e &an/ers are a$8a!s re$! on t+ese ratios to ma/e important decisions# 9+e mana3ement team of an! &an/: in estor and t+e 3o ernment a3encies a$8a!s concern a&out $i0uidit! ratios and ade0uac! ratios of a financia$ compan! 8+ic+ interprets t+e efficienc! of a compan!#

C=A:TER ,-(: INTRO!.CTION

1.1 Origin of the Study:

Assi3nment is a practica$ part of academic studies# 9+is is a ref$ection of academic /no8$ed3e and practica$ 8or/ e;perience# 9+us t+is assi3nment aims to ref$ect t+e professiona$ ie8 of a rea$ 8or$d 8or/ en ironment# Business Administration Department of East West Uni ersit! offers four !ears BBA pro3ram ma?orin3 in different re$ated fie$ds# 9+is four !ears academic pro3ram is t+e &ui$din3 up of t+e t+eoretica$ /no8$ed3e# %no8$ed3e in measurin3 ratio ana$!sis of a financia$ compan! or an! ot+er compan! is must for an! BBA student: especia$$! 8+o doin3 or 3oin3 to do ma?or in finance# 9+is is a fie$d of stud! t+at define arious too$s and tec+ni0ues of ratio ana$!sis to understand t+e present and past financia$ condition of a compan!# <ur esteem facu$t! 3i en us t+e compan! name and comp$ete a stud! t+at co ers an assessment of indicators a&out t+e financia$ condition of t+at compan!##

1.2 Objective of the study:

9+is pro3ram 8as desi3ned to accomp$is+ t8o o&?ecti es# 9+e o&?ecti es 8ere identified c$oser interaction and e;c+an3e of ie8s 8it+ t+e financia$ ratio ana$!sis of t+e compan!# Fo$$o8in3s 8ere t+e o&?ecti es of t+e stud!2 9o /no8 &rief$! a&out financia$ ana$!sis of t+e compan! 9o find out t+e financia$ $e e$ of t+e compan! 9o identif! t+e financia$ comparati e ana$!sis of different !ears#

1.3 Methodology:
This report is prepared mainly on the extensive use of secondary data available in annual reports. ased on the data from the annual reports the overall assi!nment is prepared. The overall conceptual and theoretical frame"or# has been explained as "ell as the ho" the data are analy$ed is explained belo": Data Sources

The Primary sourcesare absent in this case% as because &atio 'nalysis is conducted on the basis of the analysis of data of the (inancial company concentratin! the period of 2))*+2)12. Thus , rely on the annual reports of the company% "hich is the -econdary source of Data .ollection.

The secondary Sourcesof data and the information are as follo"s:

1. 'nnual &eport of Industria$ 5romotiona$ and De e$opment 6ompan! from 200. to 2012#

1- @oo3$e

1.4 Limitations of the study:

9+e time constraint confined t+is stud! most$! on t+e data co$$ected in D+a/a zone# "oreo er: it 8as not possi&$e to 3et a$$ re0uired interna$ information of t+e compan! as t+ese are treated as confidentia$ to t+e compan!# So: t+e! +a e er! $itt$e time to ta$/ 8it+ us# We +a e fe8 $imitations# But 8e 8ere 0uite successfu$ to co$$ect our main information# So t+e resu$t 8as +opefu$$! satisfactor!#

C=A:TER 1-( COM:ANY O8ER8IE

Industria$ 5romotiona$ and De e$opment 6ompan! of Ban3$ades+ I5D6 8as esta&$is+ed &! a distin3uis+ed mu$ti$atera$ team of s+are+o$ders in 1'.1 as t+e first pri ate sector financia$ institution 4Ban/ or non(Ban/7 in Ban3$ades+# 9+e foundin3 s+are+o$ders 8ere2 9+e @o ernment of t+e 5eop$es =epu&$ic of Ban3$ades+ 4@<B7 9+e A3a %+an Fund for Economic De e$opment 4A%FED7:S8itzer$and Internationa$ Finance 6orporation 4IF67 an affi$iate of t+e Wor$d Ban/ @erman In estment and De e$opment 6ompan! 4DE@7: @erman!

6ommon8ea$t+ De e$opment 6orporation 46D67 United %in3dom In ear$! 200*: A%FED: as part of its strate3! to stren3t+en its presence in t+e financia$ sector of t+is re3ion: ac0uired )0A sta/e in I5D6 &! purc+asin3 t+e s+ares from IF6: 6D6 and DE@# In 200-: t+e s+are+o$din3 structure 8as a3ain c+an3ed &! issuance of pu&$ic s+ares# Ho8e er: A%FED maintains t+e mana3ement contro$ of t+e compan! +o$din3 11A of t+e s+ares # I5D6 Board of Directors +as e$e en mem&ers: @<B 2: A%FED -: Independent 2: "ana3in3 Director 4E;(officio7 1#

2.1 Shareholding Structure

S+are 6apita$ Structure as of Bu$! 02: 2012 Aut*ori>ed Issued, Subscribed @ :'id .+ T?- 3,((( &illion T?- ,,(32 &illion

S*'re*older @o ernment of t+e 5eop$es =epu&$ic of Ban3$ades+ 4@<B7 A3a %+an Fund for Economic De e$opment 4A%FED7 5u&$ic Directors C Independent Director Tot'l

No- o0 s*'res 22:.2.:')1 1,:2-):*-) 2.:2*2:0-0 ),) ,(3,229,12)

:'id u+ C'+it'l 22.:2.':)10 1,2:-)*:-)0 2.2:2*0:-00 ):,)0 ,,(32,291,2)(

:ercent'/e 21#..A 11#01A 2)#0)A 0#00A ,((A

A3a %+an Fund for Economic De e$opment 4A%FED7 In ear$! 200*: A%FED as part of its strate3! to stren3t+en its presence in t+e financia$ sector of t+is re3ion ac0uired )0A sta/e in I5D6 &! purc+asin3 t+e s+ares from IF6: 6D6 and DE@# After &ein3 pu&$ic: A%FED maintains mana3ement contro$ of t+e compan! &! +o$din3 11A s+ares# 9+e A3a %+an Fund for Economic De e$opment S#A# 4A%FED7: incorporated in S8itzer$and: is an internationa$ de e$opment a3enc! 8+ic+ promotes entrepreneurs+ip in pri ate sector in specific re3ions of t+e de e$opin3 8or$d# A%FED promotes pri ate sector initiati e and entrepreneurs+ip t+rou3+ e0uit! in estment in partners+ips 8it+ mu$ti$atera$ a3encies: internationa$ in estors: $oca$ de e$opment institutions and indi idua$s# A%FED operates in fi e &road sectors2 industr! and infrastructure: tourism de e$opment: financia$ ser ices: media and a iation# 2.2

ision

9o &e t+e most respected and inno ati e financia$ institution of t+e countr!# 2.3 Mission 9o &e t+e &rand of 0ua$it! and inte3rit! for de$i erin3 inno ati e and tai$ored financia$ so$utions to a di erse c$ient &ase#

1)

2.4 Objectives
To ensure &'$i&u& return on in%est&ent 5rofita&i$it! is t+e /e! to ac+ie in3 superior returns: &ui$din3 our capita$: and moti atin3 and retainin3 our &est peop$e# To ensure ste'dy sust'in'ble /ro6t* in business <ur increasin3 corporate profits since inception +as &een manifestation of our stead! 3ro8t+# Amidst a competiti e en ironment: our 3oa$ is to ta/e t+e or3anization for8ard 8it+ e;ce$$ence in a$$ our operations# We s+a$$ +arness and use our distincti e competencies to ensure a $on3 term competiti e ad anta3e# To i&+ro%e t*e Bu'lity o0 ser%ices <ur stren3t+ is not in t+e o$ume &ut in t+e 0ua$it! of ser ices t+at 8e pro ide# <ur c$ientsD interests a$8a!s come first# We re$ent$ess$! stri e to anticipate t+e c+an3in3 needs of our c$ients and to de e$op &etter so$utions to t+ose needs# <ur e;perience te$$s t+at if 8e ser e our c$ients to t+e &est of our a&i$it!: our o8n success fo$$o8s# To cre'te inno%'ti%e +roduct 'nd ser%ices 6reati eness and ima3ination is encoura3ed in e er!t+in3 8e underta/e# We pride ourse$ es on +a in3 pioneered man! products and ser ices t+at +a e &ecome standard in t+e industr!# To &'int'in *i/*est le%el o0 et*ic'l st'nd'rd We are dedicated to fu$$ comp$iance to t+e spirit of $a8s: ru$es and et+ica$ princip$es t+at 3o ern us# <ur continued success depends upon un8a erin3 ad+erence to t+is standard#

2.! "ore alues

We address to c$ient needs prompt$!: impartia$$! and 8it+ utmost importance# We ta/e 3reat pride in our dedicated teams of staff mem&ers and 8i$$ continue to de e$op t+eir potentia$ and s/i$$s at a$$ $e e$s 8it+in our or3anization &! re8ardin3 outstandin3 performance and promotin3 from 8it+in to de e$op a c$imate of +i3+ e;pectation and ac+ie ement# We remain 0ua$it!(minded and de oted to up+o$d our corporate cu$ture#

11

We 8i$$ retain our position of $eaders+ip in t+is fie$d t+rou3+ our commitment to 0ua$it!: comp$iances: ser ices and a$ues# We 8i$$ continue persona$ and corporate in o$ ement in acti ities &enefitin3 t+e societ! and nation# We up+o$d t+e a$ues of t+e communities 8e are pri i$e3ed to ser e &! +onorin3 t+eir traditions and preser in3 t+e en ironment# We p$ed3e to remain a$ert to economic c+an3es 8+ic+ affect our &usinesses: and to respond to e er(c+an3in3 mar/et demands# We 8i$$ continue to confront a$$ c+a$$en3es t+rou3+ p$annin3: &a$anced di ersification and order$! 3ro8t+# We ta/e our responsi&i$it! to8ards our s+are+o$ders er! serious$! and are committed to &e a mode$ for ot+ers to fo$$o8# =o$e of I5D6 in Financin3 I5D6 specia$izes in pro?ect financin3 and pro ides inno ati e in estment so$utions# 9+is inc$udes in estin3 in pro?ects t+at add a$ue and contri&ute to t+e countr!Ds o era$$ economic de e$opment# It in ests t+rou3+ e0uit! participation: term $endin3 and $ease financin3# I5D6 +as p$a!ed pi ota$ ro$e in a$most a$$ t+e industria$ sectors# It +as a$so specia$ focus in infrastructure and socia$ sector pro?ects# I5D6 +as a$so &een pro idin3 inno ati e in estment so$utions and pro?ect ad isor! ser ices to its c$ients in industria$ and socia$ sectors $i/e education and +ea$t+ care#I5D6 ma/es in estments in order to ac+ie e a num&er of o&?ecti es2

Emp$o!ment and income 3eneration =e enue 3eneration for t+e 3o ernment 5roduction capacit! addition Earned or sa ed forei3n e;c+an3e Lin/a3e and &usiness de e$opment S/i$$s and tec+no$o3! transfer

12

<fferin3 en ironmenta$ ris/ assessment and its mana3ement

9+e positi e ima3e I5D6 +as created +as &een esta&$is+ed t+rou3+ more t+an t8o decades of consistent commitment to8ards e;ce$$ence in pro idin3 financia$ ser ices# Wit+ a conscious effort to anticipate inf$uences in t+e domestic and forei3n in estment: I5D6 +as t+e a&i$it! to adapt to t+e c+an3in3 needs of time# I5D6 en isa3es continuin3 and e;pandin3 its ro$e as cata$!st in inspirin3: stren3t+enin3 and en+ancin3 t+e financia$ sector de e$opment of t+e countr!# I5D6 +as pioneered t+e concept of $ease financin3 in Ban3$ades+# It 8as one of t+e sponsor s+are+o$ders of Industria$ De e$opment Leasin3 6ompan! of Ban3$ades+ Limited 4IDL67# Anot+er I5D6 initiati e +as &een de e$opin3 t+e concept of +ouse mort3a3e financin3 in t+e countr!# I5D6 8as a$so promoter s+are+o$der of Nationa$ Housin3 and Finance 6ompan! Ltd 4NHFL7# I5D6 +as &een credited 8it+ pioneerin3 su&scription of 6umu$ati e =edeema&$e 5reference S+ares and issuance of Eero 6oupon Bond t+rou3+ asset &ac/ed securitization as an a$ternate means of finance#

C=A:TER 2-( :RESENTATION OF RATIO ANALYSIS

Presentation of Ratio Analysis

Step ' () Step ' (* &atio Title and (ormula .alculation 1"ith numerator and denominator2 and ,nterpretations

13

. Step # 01: Ratio Title and Formula.

LiBuidity R'tios
Li0uidit! ratios measure t+e &an/ a&i$it! to meet its s+ort(term o&$i3ations# Ban/s face $i0uidit! pro&$em due to e;cess 8it+dra8a$ from current and sa in3 account# 9+ere are se era$ measures of $i0uidit!# Li0uidit! position of &an/s is measured &! usin3 four fo$$o8in3 ratios#

6urrent Asset =atio 46A=7 F 6urrent asset G9ota$ asset Huic/G Acid 9est =atio F 6urrent Assets(In entor!G 6urrent Lia&i$ities Asset &'n'/e&ent r'tio:
A set of ratios t+at measures +o8 effecti e$! a firm is mana3in3 its asset# 9+ere are se era$ measures of assets# Asset position of a financia$ compan! is measured &! usin3 four fo$$o8in3 ratios#

In entor! turno er ratio F 6ost of @oods So$dGIn entor! Da!s Sa$es <utstandin3 F =ecei a&$esG Sa$esG,-0 Fi;ed Asset 9urno er =atio F Sa$esG Net Fi;ed Asset

14

9ota$ Asset 9urno er =atio F Sa$esG 9ota$ Asset !ebt R'tio

9+e ratio of tota$ de&t to tota$ asset# It is a measure of t+e percenta3e of funds pro ided &! creditors# 9+ere are se era$ measures of de&t# De&t position of a financia$ compan! is measured &! usin3 t8o fo$$o8in3 ratios#

De&t ratio F 9ota$ de&tG 9ota$ asset 9ime interest earned ratio F EBI9G Interest c+ar3ed :ro0it'bility R'tios

5rofita&i$it! ratios measure t+e mana3eria$ efficienc!# 9+ese ratios use mar3in ana$!sis and s+o8 t+e return on assets: deposits: in estments: and e0uit!# 9+e +i3+er profita&i$it! ratios are indicator of &etter performance# 9+e ratios are(

Net profit mar3in FNet incomeG Sa$es =eturn on Assets 4=<A7 F Net Income G 9ota$ Assets =eturn on E0uit! 6apita$ 4=<E7 F Net Income G 9ota$ E0uit! 6apita$ Earnin3s 5er S+are 4E5S7 F Net Income G 6ommon E0uit! S+ares <utstandin3 5rice earnin3s ratio F "ar/et price per s+areG Earnin3s per s+are

15

Step # 02: Calculation and Interpretation.

R'tio An'lysis:
Li#uidity $atio
Current Asset R'tio;
.urrent 'sset &atio 1.'&2 3 .urrent asset 4Total asset

*((+ #in times$ -&./,

*((, #in times$ 7.268

*()( #in times$ 47.542

*()) #in times$ 31.363

*()* #in times$ 62.511

Table # 01: Liquidity Ratio.

9+is ratio s+o8s t+e re$ations+ip of I5D6 cas+ and ot+er s+ort term assets to its current $ia&i$ities# Here t+is ratio is continuous$! increasin3 !ear to !ear for I5D6# So: it is a 3ood indication in $i0uidit! ratio# 9+is means I5D6 +as more $i0uid asset in +and#

16

Acid Test R'tio;

5uic#4 'cid Test &atio 3 .urrent 'ssets+,nventory4 .urrent

Here acid test ratio 8i$$ remain same as current asset ratio &ecause in t+is t+ere is no in ento in t+is compan!#

6iabilities

%sset Management $atio

In%entory turno%er r'tio C

,nventory turnover ratio 3 .ost of 7oods -old4,nventory

9+ere is no in entor! specifica$$! 3i en in t+e financia$ report of I5D6# So: 8e cannot ca$cu$ate t+is ratio#

!'ys S'les Outst'ndin/;

Days -ales 8utstandin! 3 &eceivables4 -ales436)

9+ere are no AG6 recei a&$es specifica$$! 3i en in t+e financia$ report of I5D6# So: 8e cannot ca$cu$ate t+is ratio#

Fi$ed Asset Turno%er R'tio;

(ixed 'sset Turnover &atio 3 -ales4 9et (ixed 'sse

1/

*((+ #in times$ (&))0

*((, #in times$ 0.1066

*()( #in times$ 0.0

*()) #in times$ 0.11

!!et Turno"er Ratio.

*()* #in times$ 0.134

Table # 02: Fixed

Fi;ed asset turno er measure +o8 effecti e$! t+e firm use its p$ant and e0uipment to +e$p 3enerate sa$es# A$t+ou3+ it is $ess t+an 1 &ut increasin3 !ear to !ear 8+ic+ is a 3ood indication far I5D6#

Tot'l Asset Turno%er R'tio;

Total 'sset Turnover &atio 3 -ales4 Total 'sset

*((+ #in times$ (&(,1

*((, #in times$ 0.086

*()( #in times$ 0.072

*()) #in times$ 0.082

!!et Turno"er Ratio.

*()* #in times$ 0.111

Table # 0#: Total

It measures t+e turno er of a$$ of t+e firm>s assets# In case of I5D6 it is more o$ati$e# Because some !ears it increases and some !ears it decreases s$i3+t$!#

&ebt Management $atio

!ebt r'tio;
Debt ratio 3 Total debt4 Total asset

1*

*((+ #2$ 1/&*++

*((, #2$ 70.546

*()( #2$ 6 .187

*()) #2$ 71. 16

*()* #2$ 71.504

Table # 0$: %ebt Ratio.

It measures t+e percenta3e of t+e firm>s assets: financed &! creditors# 9+is condition of I5D6 is not 3ood# Because it is too +i3+#

Ti&e interest e'rned r'tio D E#ITE Interest c*'r/ed;

Time interest earned ratio 3 : ,T4 ,nterest char!ed

*((+ #in times$ )&.+*

*((, #in times$ 2. 13

*()( #in times$ .55

*()) #in times$ !17.61

*()* #in times$ 2.822

Table # 0&: Time Intere!t 'arned Ratio.

It measures t+e e;tent to 8+ic+ earnin3s &efore interest and ta; a$so ca$$ed operatin3 income can dec$ine &efore t+e firm is una&$e to meet its annua$ interest cost# Increasin3 indication is 3od# But for I5D6 it is not 3ood: &ecause it is too $o8 for I5D6 and sometime it>s ne3ati e#

'rofitability $atio
Net +ro0it &'r/in;

9et profit mar!in 39et income4 -ales

10

*((+ #2$ )-&00

*((, #2$ 20.30

*()( #2$ 28.56

*()) #2$ 20.14

*()* #2$ 16.25

Table # 0(: )et *ro+it ,ar-in.

It is t+e net resu$t of a num&er po$icies and decision# 9+e ratio e;amined t+us far pro ides some information a&out t+e 8a! t+e firm is operatin3# It is 3ood for I5D6#

Return on Assets FROAG;

&eturn on 'ssets 1&8'2 3 9et ,ncome 4 Total 'ssets

*((+ #2$ )&.,,

*((, #2$ 1.766

*()( #2$ 2.06

Table # 0.: Return on

*()) #2$ 1.651

!!et.

*()* #2$ 1.807

It measures t+e ratio of net income to tota$ asset: it pro ides an idea of t+e o era$$ return on in estment earn &! t+e firm# For I5D6 it is er! $o8#

Return on EBuity C'+it'l FROEG;

&eturn on :;uity .apital 1&8:2 3 9et ,ncome 4 Total :;uity .apital

2)

*((+ #2$ .&,+*

*((, #2$ 5. 8

*()( #2$ 6.715

*()) #2$ 5.881

*()* #2$ 6.343

Table # 0/: Return on 'quity Capital.

It measures t+e rate of return on common stoc/+o$der>s in estment# 9+is condition is moderate for I5D6: and need to increase da! &! da!#

E'rnin/s :er S*'re FE:SG;

:arnin!s <er -hare 1:<-2 3 9et ,ncome 4 .ommon :;uity -hares 8utstandin!

*((+ #Ta3a$ )/&*.

*((, #Ta3a$ 14.13

*()( #Ta3a$ 15.41

*()) #Ta3a$ 1.18

*()* #Ta3a$ 1.23

Table # 00: 'arnin-! *er S1are.

It is 3ood for I5D6 and increasin3 !ear to !ear# In 2011 and 2012 it is $ess t+an pre ious !ears &ecause t+e! sp$it t+eir in 2011 from 1 to 10#

:rice e'rnin/s r'tio;

<rice earnin!s ratio 3 =ar#et price per share4 :arnin!s per share

21

*((+ #in times$ )+&/1

*((, #in times$ 16.66

*()( #in times$ 18.82

*()) #in times$ 16. 5

*()* #in times$ 15.7

Table # 10: *rice 'arnin- Ratio.

It s+o8s +o8 muc+ in estors are 8i$$in3 to pa! per ta/a of reported profits# For I5D6 it is not so &ad: &ut $ess is 3ood for a firm#

C=A:TER 3- FIN!IN"S AN! CONCL.SION

9+e ratio ana$!sis is done of I5D6# 9+is is a &i3 financia$ compan! a$t+ou3+ it faces man! difficu$ties to run its &usiness# Because competition amon3 t+e financia$ institutions is er! +i3+ in toda!>s 8or$d# From t+e ratio ana$!sis 8e can sa! t+at I5D6>s fi;ed asset turno er and tota$ asset turno er are er! $o8: de&t ratio is er! +i3+ 8+ic+ represent &ad indication of t+e compan! to its in estors# In 2011 time interest earned ratio ne3ati e 8+ic+ pa! a er! &ad impact to t+e in estors# =eturn on asset is er! $o8# If I5D6 8ants to attract t+emse$ es to t+e in estors t+an t+e! need to impro e t+eir performance in t+ose sectors descri&e a&o e# If t+e! can impro e t+eir performance on t+ose ratios t+en 8e t+in/ t+e compan! 8i$$ ma/e more profit in future and attract more in estors to in est mone! in t+eir compan!#

22

C=A:TER )- REFERENCES
1# +ttp2GG888#ipdc&d#com 2# @oo3$e#com ,# D+a/a Stoc/ E;c+an3e
*# Essentia$s of "ana3eria$ Finance &! Bes$e! C F# Bri3+am