Financial Performance Analysis of Abdul Monem Limited.

Submitted to:
Ms. Rozina Akter
Assistant Professor
Department of Business Administration
Faculty of Business and Entrepreneurship
Daffodil International University

Submitted by:
Sabha Rahman Toushon
ID#172-11-5618
Department of Business Administration
Faculty of Business and Entrepreneurship
Daffodil International University

Date of Submission: 25/07/2023

 Letter of Transmittal

Date: 25/07/2023

To,
Ms. Rozina Akter
Assistant Professor
Department of Business Administration
Faculty of Business and Entrepreneurship
Daffodil International University

Subject: Submission of Internship Report on “Financial Performance Analysis of Abdul

Monem Limited”.

Dear Sir,
With due respect, I am submitting my internship report on the topic entitled “Financial
Performance Analysis of Abdul Monem Limited” which was assigned to me as a partial
requirement to complete my BBA Program.

Through this study, I have tried to accommodate information and relevant issues as much
possible and also tried to follow your instruction as you suggested.

Therefore, I hope that you will appreciate my effort and I shall be grateful if my report is
accepted for the appropriate purpose.

Sincerely Yours,

Sabha Rahman Toushon

ID#172-11-5618
BBA Program
Department of Business Administration
Faculty of Business & Entrepreneurship
Daffodil International University

i
 Letter of Acceptance

This is to certify that Sabha Rahman Toushon ID#172-11-5618 is a student of Daffodil

International University. She has prepared his internship report entitled “Financial Performance
Analysis of Abdul Monem Limited” under my supervision. The data and findings presented in
this internship report seem to be authentic. Thus, it is accepted for the presentation in the
internship defense.

I wish her every success in life.

Ms. Rozina Akter

Assistant Professor
Department of Business Administration
Faculty of Business and Entrepreneurship
Daffodil International University

ii
 Acknowledgement
I am Sabha Rahman Toushon ID#172-11-5618, and might want to offer my heartiest thanks to
the individuals who helped me all the route through to finish my internship report “Financial
Performance Analysis of Abdul Monem Limited” At the absolute starting point, I need to
thank God, whose inviable direction helped me to finish this assistant report.
I especially acknowledge my academic supervisor Ms. Rozina Akter Assistant Professor,
Daffodil International university, for giving me all the fundamental partners for the finish of this
report. Without his standard watching, it was difficult to complete my report.

I would like to share my heart in gratitude to Abdul Monem Group. for helping me to complete
my internship. By expanding, my heartiest thanks to those business officials who gave their
heartiest cooperation to complete my Internship Report. I am thankful to the individuals
mentioned above for their help in every step of successfully drafting my research.

iii
 Executive summary
A brief overview of the financial performance analysis of Abdul Monem Group from the years
2021 to 2021 is presented in the paper. A vertical balance sheet and income statement was
generated from AML Group’s balance sheets and income statements. Both figures are grouped
by total assets in the vertical balance sheet and presented as a percentage. Both figures are
separated by revenue in the vertical income statements and expressed as a percentage, including
averages and standard deviations. A particular technique is used to generate the horizontal
balance sheets and financial statements.

This report has organized in five chapters. In this report introduction part has been discussed in
chapter one. Introduction of the study, background, origin, objective, methodology and
limitations of the study are discussed in chapter one.

In the second chapter over view of Abdul Monem Limited Transmission and Distribution
Company Limited has been discussed. This chapter contains company’s background, mission,
vision, values, products services and business. Third chapter includes theoretical knowledge,
financial tools, measurement techniques and the application of financial performance.

Fourth chapter is very significant part of the report, which comprises financial performance
analysis. It includes the performance of trend analysis (revenue, operating profit, profit after tax,
total assets, and liabilities), common size income statement and ratio analysis (Liquidity,
Activity, Debt, Profitability). From the analysis the result is quite satisfactory. And made some
findings based on analysis.

Finally, in the last or five chapters some suggestions provide for improvement in financial
performance. And over all conclusions is given in this chapter.

iv
v
 Table of Contents

LETTER OF TRANSMITTAL.......................................................................................................................... I
LETTER OF ACCEPTANCE........................................................................................................................... II
ACKNOWLEDGEMENT................................................................................................................................ III
EXECUTIVE SUMMARY............................................................................................................................... IV
CHAPTER – 01................................................................................................................................................. 1
1. INTRODUCTION...............................................................................................................................................2
1.1. BACKGROUND OF THE STUDY....................................................................................................................2
1.2. SCOPE OF THE STUDY................................................................................................................................2
1.3. OBJECTIVES OF THE STUDY.......................................................................................................................2
1.4. METHODOLOGY OF THE STUDY................................................................................................................2
1.5. LIMITATION OF THE STUDY......................................................................................................................3
CHAPTER – 02................................................................................................................................................. 4
2.1 BACKGROUND HISTORY................................................................................................................................ 4
2.2 VISION.......................................................................................................................................................... 5
2.3 COMPANY GOAL........................................................................................................................................... 5
2.4 INCEPTION AND EXPANSION......................................................................................................................... 5
2.5 CSR & INITIATIVES......................................................................................................................................... 6
2.7 BUSINESS UNITS OF ABDUL MONEM GROUP................................................................................................. 6
2.8 ORGANOGRAM............................................................................................................................................. 8
CHAPTER – 03................................................................................................................................................. 9
3.1 HORIZONTAL ANALYSIS (TREND ANALYSIS).................................................................................................. 10
4.1.1 REVENUE.........................................................................................................................................................10
3.1.2 OPERATING PROFIT............................................................................................................................................11
3.1.3 PROFIT AFTER TAX.............................................................................................................................................12
3.1.4 TOTAL ASSETS...................................................................................................................................................13
3.1.5 TOTAL LIABILITIES..............................................................................................................................................14
3.1.6 TOTAL EQUITY..................................................................................................................................................15
3.2 COMMON SIZE ANALYSIS OF TGTDCL....................................................................................................... 16
3.3 FINANCIAL RATIO ANALYSIS OF TGTDCL................................................................................................... 17
3.3.1 CURRENT RATIO...............................................................................................................................................17
3.3.2 QUICK RATIO...................................................................................................................................................17
3.3.3 CASH RATIO.....................................................................................................................................................18
3.3.4 TOTAL ASSET TURNOVER...................................................................................................................................18
3.3.5 FIXED ASSET TURNOVER....................................................................................................................................19
3.3.6 EQUITY TURNOVER...........................................................................................................................................19
3.3.7 RECEIVABLE TURNOVER.....................................................................................................................................20

vi
 3.3.8 PAYABLES TURNOVER........................................................................................................................................20
3.3.9 INVENTORY TURNOVER......................................................................................................................................21
3.3.10 GROSS PROFIT MARGIN...................................................................................................................................21
3.3.11 OPERATING PROFIT MARGIN............................................................................................................................21
3.3.12 NET PROFIT MARGIN......................................................................................................................................22
3.3.13 RETURN ON ASSET (ROA)...............................................................................................................................22
3.3.14 RETURN ON EQUITY (ROE)..............................................................................................................................23
3.3.15 EARNING PER SHARE.......................................................................................................................................23
CHAPTER-5.................................................................................................................................................... 24
FINDINGS, RECOMMENDATION AND CONCLUSION............................................................................24
5.1 FINDINGS OF THE STUDY............................................................................................................................. 25
5.2 RECOMMENDATIONS.................................................................................................................................. 27
5.3 CONCLUSION............................................................................................................................................... 28
REFERENCES:..................................................................................................................................................... 29

vii
Chapter – 01

Introduction

1
1. Introduction
The analysis determined Abdul Monem Group's overall financial and business situation.
The study attempted to explain the company's current financial situation and compared it to
previous findings. Furthermore, monthly market return has been recognized in order to examine
the volatility of the business with the market and the essential rate of return that a shareholder
should expect as an ideal rate of return.
Furthermore, the study attempted to discover AMLGroup and describe the situation of the
market. When making advice for changing the condition, there are loopholes in several success
indicators.
1.1. Background of the study
The internship program is a requirement for all students pursuing a B.B.A degree. In the
internship program, I was assigned to the AMLGroup, the host organization's name. This study
was founded on my practical grasp of day-to-day banking activities, academic experience, and
attentive observation of my internal assistance and official supervisor.
1.2. Scope of the study
The report contains extensive information about AMLGroup's financial results. While working
on AMLGroup's annual reports, I evaluated their financial statements and various items from this
study. It is made up of my observations and work experiences from the internship. This report
includes the company's financial position as well as other parts of its ratio analysis.
1.3. Objectives of the study
The main objective of the report will be to present the financial performance analysis of
AMLGroup with fulfilling the requirement of BBA program. However, the objective behind this
study is something broader. Objectives of the report are summarized in the following manner-
1. To present an overview of AMLGroup.
2. To analyze the financial performances of AMLGroup of different years.
3. To provide recommendations based on the findings of the study.
1.4. Methodology of the study
I learned several approaches from my study life during the research procedure. So, in this study,
I was able to combine my practical educational abilities. I gathered information for this study
from a variety of sources. The Abdul Monem Limited Transmission and Delivery Group Limited

2
website, newsletters, and other communications are analogous to the internet. So, all is
secondary data, no primary data is obtained.
Secondary sources:
• Annual Report of AMLGroup.

• Reported disclosed by Lanka Bangla Finance.

• Collected many data from Internet.

• AMLGroup’s official website and Newsletters are major sources for collected data.
1.5. Limitation of the Study
• The aim of the work is to perform a thorough analysis of loans & advancement
procedures that have been used by many facilities and faced some difficulties during my
research. Such obstacles can be described as a limitation of the study. The following are
those limits:
• • Restriction of time during the internship process.

• For the study, the gathered information was not adequate.

• The sample range was too short, given the population rate.

• The survey conducted for the study did not reflect the fact that the respondents' state of
mind and the answer to the question could not be logical.
• The organization did not access classified data or objects.

• Anything about the bank cannot be known as the internship is the first practical
experience.

3
 Chapter – 02

Organization Overview

4
2.1 Background History
Founded in 1956, Abdul Monem Limited (AML) is a prominent diversified commercial
company in Bangladesh. This company is among the fortunate few that has seen transformation
throughout the millennium. Abdul Monem Ltd. has a new problem today in the rapidly
expanding and changing world of trade and technology: maintaining its competitiveness in the
Millennium by offering cutting-edge goods and services and technologies. The organization has
over 50 years of experience achieving that, so it will undoubtedly be able to take on this
challenge going forward. Abdul Monem Ltd. began as a construction contractor in 1956 before
expanding into the food industry. represents with pride companies such as Coca-Cola, Igloo,
Novus Pharmaceuticals, and Danish Bangla Emulsion, which are significant milestones in the
company's journey to offer the highest caliber products to millions of customers.

2.2 Vision
 Efficient and safe distribution of natural gas.

2.3 Company Goal

 Provide improved service to esteemed customers.
 Ensuring efficient use of natural gas.
 Ensuring good governance in gas marketing.

2.4 Inception and Expansion

The company was founded in 1956 by Mr. Abdul Monem, the Managing Director and Chairman.
He continues to lead it successfully today, assisted by his two eligible sons, Mr. A.S.M.
Mainuddin Monem and Mr. A.S.M. Mohiuddin Monem, who serve as the company's Deputy
Managing Directors (DMD). The organization has set the example for others to follow since
1956. This organization's main strength is its ability to raise the funds necessary to finish large-
scale infrastructure projects (funded by the World Bank, ADB, JICA, etc.). This shows that the
company can sustain itself over the lengthy development phases and can take on the initial risks
associated with such projects. In a short amount of time, AML has not only amassed a wealth of
experience in the field of infrastructure and development projects to meet international standards

5
for quality and services, but it has also grown to be Coca-Cola's bottler, the maker of the world's
most popular ice cream brand, Igloo milk and dairy products, Igloo food items and snacks, a
pharmaceutical manufacturer, and a producer of auto bricks, bitumen, and other specific building
materials. Along with them, it founded AM Securities and Financial Services Ltd., AM Rice
Bran Oil, AM Sugar Refinery Ltd., and Servic Engine BPO. It received the contract in 2015 to
establish one of the nation's first private economic zones, i.e. The 216-acre Abdul Monem
Economic Zone (AMEZ) is located at Daudkandi, Munshiganj. In addition to contributing to the
national economy and utilizing the strength of the parent corporation, all of these strategic units
were formed with the goal of creating jobs for their fellow citizens. Despite having started out as
a family-run enterprise, AML has evolved into a multidisciplinary modern business organization
that provides value to its clients. As a result, its top goal has been to develop the skills necessary
to instill strength and character in its employees, colleagues, business partners, and stakeholders,
which will lead to the establishment's strong and dynamic growth.

2.5 CSR & Initiatives

6
2.7 Business Units of Abdul Monem Group
Abdul Monem Limited (AML) is one of the leading diversified business conglomerates of
Bangladesh. Fundamental promise of company is ‘Touching Lives… Building Capabilities…!’

7
2.8 Organogram

8
Chapter – 03

Analysis

9
3.1 Horizontal Analysis (Trend Analysis)
4.1.1 Revenue
Particulars 2021 2020 2019
Revenue 141,644,770,670.00 142,160,635,355.00 125,705,663,110.00
Increase or decrease -515,864,685.00 16,454,972,245.00

Revenue
145,000,000,000.00
141,644,770,670.00 142,160,635,355.00

140,000,000,000.00

135,000,000,000.00

130,000,000,000.00

125,705,663,110.00
125,000,000,000.00

120,000,000,000.00

115,000,000,000.00
2021 2020 2019

Interpretation:
The total revenue growth of Abdul Monem Limited was decreased during the three years (2019-
2021) of the study. There have been substantial changes in revenue each year from the above
table. As here, 2019 is the base year, so the changes in revenue have been decreased from 2020
to 2021.

10
3.1.2 Operating Profit
Particulars 2021 2020 2021
Operating Profit 2599758396 813191855 3305033038
Increase or Decrease 1,786,566,541.00 -2,491,841,183.00

Operating Profit
3500000000

3305033038
3000000000

2500000000 2599758396

2000000000

1500000000

1000000000
813191855
500000000

0 2021
2019 2020
2018 2019
2017

Interpretation:
The total Operating Profit of AML were decreased during the three years (2019-2021) of the
study. Throughout the table above, significant changes in operating profit have occurred last
year. As here, 2019 is the base year, so the changes in operating profit from BDT 3305033038 to
BDT 813191855 were decreased from 2019 to 2020, respectively. And the amount decreased
was 2,491,841,183.00 BDT. But in 2021 the profit was increased from 2020 and the increased
amount is 1,786,566,541.00 BDT

11
3.1.3 Profit After tax
Particulars 2021 2020 2021
Profit after tax 4,644,660,803.00 3,389,996,886.00 5,064,816,586.00
Increase or Decrease 1,254,663,917.00 -1,674,819,700.00

Profit after tax

6,000,000,000.00

5,000,000,000.00

4,000,000,000.00

3,000,000,000.00

2,000,000,000.00

1,000,000,000.00

0.00
2021 2020 2019

Interpretation:
The total Profit After tax of AML were decreased during the three years (2021-2021) of the
study. Throughout the table above, significant changes in Profit After tax have occurred last
year. As here, 2021 is the base year, so the changes in operating profit from BDT
5,064,816,586.00 to BDT 3,389,996,886.00 were decreased from 2019 to 2020, respectively.
And the amount decreased was 1,674,819,700.00 BDT. But in 2021 the amount was increased
from 2020 and the increased amount is 1,254,663,917.00 BDT

12
3.1.4 Total Assets
Particulars 2021 2020 2021
Total Asset 164,423,258,271.00 150,075,771,998.00 140,654,917,269.00
Increase or 14,347,486,273.00 9,420,854,729.00
Decrease

Total Asset
170,000,000,000.00

165,000,000,000.00

160,000,000,000.00

155,000,000,000.00

150,000,000,000.00

145,000,000,000.00

140,000,000,000.00

135,000,000,000.00

130,000,000,000.00

125,000,000,000.00
2021 2020 2019

Interpretation:
The total Assets of AML were increased during the three years (2019-2021) of the study. There
have been significant changes in total assets over the duration of each year. Like here, 2019 is
the base year, so from 2019 to 2021 the changes in total assets have been increased. The changes
in Total Asset from BDT 140,654,917,269.00 to BDT 164,423,258,271.00 were increased from
2019 to 2021, respectively. And the amount increased was 14,347,486,273.00 BDT, it has been
clear that there is an increasing trend in the changes of total assets.

13
3.1.5 Total Liabilities
Particulars 2021 2020 2021
Total liabilities 95,099,743,477.00 83,515,995,735.00 75,675,268,311.00
Increase or Decrease 11,583,747,742.00 7,840,727,424.00

Total liabilities
100,000,000,000.00

90,000,000,000.00

80,000,000,000.00

70,000,000,000.00

60,000,000,000.00

50,000,000,000.00

40,000,000,000.00

30,000,000,000.00

20,000,000,000.00

10,000,000,000.00

0.00
2021 2020 2019

Interpretation:
The Total Liability of AML were increased during the three years (2021-2021) of the study.
There have been significant changes in Total Liability over the duration of each year. Like here,
2021 is the base year, so from 2019 to 2021 the changes in Total Liability have been increased.
The changes in Total Liability from BDT 75,675,268,311.00 to BDT 95,099,743,477.00 were
increased from 2019 to 2021, respectively. And the amount increased was 11,583,747,742.00
BDT, So, in each year company’s total liabilities is increasing which makes their lending
capability is adequate.

14
3.1.6 Total Equity
Particulars 2021 2020 2021
Total equity 69,323,514,794.00 66,559,776,264.00 64,979,648,955.00
Increase or decrease 2,763,738,530.00 1,580,127,309.00

Total equity
70,000,000,000.00

69,000,000,000.00

68,000,000,000.00

67,000,000,000.00

66,000,000,000.00

65,000,000,000.00

64,000,000,000.00

63,000,000,000.00

62,000,000,000.00
2021 2020 2019

Interpretation:
The Total Equity of AML were increased during the three years (2019-2021) of the study. There
have been significant changes in Total Equity over the duration of each year. Like here, 2021 is
the base year, so from 2019 to 2021 the changes in Total Equity have been increased. The
changes in Total Equity from BDT 64,979,648,955.00 to BDT 69,323,514,794.00 were increased
from 2019 to 2021, respectively. And the amount increased was 2,763,738,530.00 BDT, it is
very clear that there is an increasing upward trend. Therefore, the total equity of shareholders of
each company grows each year, which makes their value of share holders’ is adequate.

15
3.2 Common Size Analysis of TGTDCL
Particulars 2021 2020 2019
Net revenue 100% 100% 100%
Less: Cost of Goods Sold 95% 96% 94%
Gross profit 5% 4% 6%
Net Operating Gain/(Loss) 0% 0% 0%
Add: Other income 0% 0% 0%
Less: Administrative and selling expenses 3% 3% 3%
Less: Transmission & distribution expenses 0% 0% 0%
Income from operation 2% 1% 3%
Investment Income 2% 2% 2%
Gain(realized) on Transfer of B. Baria & Ashugang 0% 0% 0%
Finance Income 1% 1% 1%
Less: Financial charge 0% 0% 0%
Less: Contribution to Workers' Profit Participation Funds 0% 0% 0%
(WPPF)
Profit before tax 4% 3% 5%
Less: Provision for Income Tax 1% -1% -1%
Current tax 1% -1% -1%
Deferred tax 0% 0% 0%
Net profit after tax 3% 2% 4%

Interpretation:
The table shows that the common size income statement of AML, here cost of goods sold has
varied from 94% to 95% percent (2019 to 2021) and from 6% to 5% (2019-2021) of gross profit
during the research period. Operating profit has recorded variation from 3.00% to 2.00% in
2019-2021. There have some reasons to decrease of operating profit those are decreasing of
revenue, other income and increasing of cost of sales than the previous year.
.

16
3.3 Financial Ratio Analysis of TGTDCL
3.3.1 Current Ratio
Year Current Current Ratio
Ratio 1.32
2021 1.308 1.3
2020 1.208 1.28

2021 1.252 1.26

1.24

1.22
Interpretation:
1.2

Current Ratio say that how much 1.18

1.16
current asset a company have to
1.14
2019 2018 2017
repay its current liabilities. As
the current ratio grows, firms do not increase profits nor increase liquidity.

Comparing with three years (2019-2021), In 2021 current assets were only 1.31 times of their
current liabilities. Which are good from previous year 2020 & 2019.

3.3.2 Quick Ratio

Year Quick Ratio Quick Ratio
1.3
2021 1.28
1.28
2020 1.183
1.26
2021 1.23
1.24

1.22

Interpretation: 1.2

1.18
Quick Ratio refers that how
1.16
much quick asset a company 1.14

have to repay its current 1.12 2021 2020 2019

2019 2018 2017

liabilities. As the quick ratio

grows, firms do not increase profits nor increase liquidity.

Comparing with three years (2019-2021), In 2021 quick assets were only 1.28 times of their
current liabilities. Which are good from previous year 2020 & 2019.

17
3.3.3 Cash Ratio
Year Cash Ratio
Cash Ratio
2021 0.181 0.25

2020 0.108
0.2
2021 0.212
0.15

Interpretation: 0.1

Cash Ratio refers that how much 0.05

Cash a company have to repay its

0 2021
2019 2020
2018 2019
2017
current liabilities. As the quick ratio
grows, firms do not increase profits nor increase liquidity.

Comparing with three years (2019-2021), In 2021 quick assets were only 1.28 times of their
current liabilities. Which are good from previous year 2020 & 2019.

3.3.4 Total Asset Turnover

Year Total Asset Total Asset Turnover
Turnover 0.96

2021 0.861 0.94

2020 0.947 0.92

2021 0.894 0.9

0.88

Interpretation: 0.86

0.84
It refers that how effectively a
0.82

company can utilize its asset to 0.8 2021 2020 2019

2019 2018 2017

generate sells. Higher one is better

so 2020 is better because it is higher than others 2021 & 2019

18
3.3.5 Fixed Asset Turnover
Year Fixed Asset Fixed Asset Turnover
Turnover 18

2021 13.035 16

2020 16.147 14

12
2021 13.722
10

Interpretation: 6

4
Fixed asset turnover ratio refers that 2

how effectively a company can 0 2021

2019
2020
2018
2019
2017

utilize its fixed asset to generate sells. Higher one is better so 2020 is better because it is higher
than others 2021 & 2019

3.3.6 Equity Turnover

Year Equity Turnover Equity Turnover
2.2
2021 2.043
2.15
2020 2.136
2.1
2021 1.935
2.05

Interpretation: 1.95

1.9
Equity turnover ratio refers that how
1.85

effectively a company can utilize its 1.8 2021 2020 2019

2019 2018 2017

owner equity to generate sells.

Higher one is better so 2020 is better because it is higher than others 2021 & 2019

19
3.3.7 Receivable Turnover
Year Receivable Turnover Receivable Turnover
4.1
2021 3.395 4

2020 3.906 3.9

3.8
2021 3.982 3.7

3.6

3.5

Interpretation: 3.4

3.3

Receivable turnover ratio refers that how 3.2

3.1 2021 2020 2019

2019 2018 2017

many times a company collects money from its

account receivable. Here 2020 is better because it is higher than others.

3.3.8 Payables Turnover

Year Payables Turnover Payables Turnover
2021 3.402 4.2

2020 4.014 4

2021 3.68 3.8

3.6

Interpretation: 3.4

Account Payables turnover ratio refers 3.2

2021 2020 2019

that how many times a company make 3
2019 2018 2017

payment to its account payable. Lower one is better so 2021 is best because it is lower than from
others.

20
3.3.9 Inventory Turnover
Year Inventory Turnover Inventory Turnover

2021 67.264 100

90

2020 85.428 80

70
2021 86.837 60

50

Interpretation: 40

30
Inventory turnover ratio refers that how 20

10
many times the company purchase 0
2021 2020 2019
2019 2018 2017

inventory. Higher one is beater because if a

company buy inventory frequently that means the demand for this company product is high so
2019 was the best.
3.3.10 Gross Profit Margin
Gross Profit Margin
Year Gross Profit Margin 7.00%

2021 6.00%
5.20%
2020 5.00%
3.50%
4.00%
2021
5.80% 3.00%

2.00%

Interpretation: 1.00%

Gross Profit Margin refers that how much 0.00% 2021 2020 2019
2019 2018 2017

profit a company makes after paying its

cogs. Higher one is better so 2019 & 2021 are good because those are higher than 2020.

3.3.11 Operating Profit Margin

Year Operating Profit Margin Operating Profit Margin
2021 1.80% 3.00%
2020 0.60% 2.50%
2021 2.00%
2.60%
1.50%
1.00%
Interpretation:
0.50%
Operating Profit Margin refers that how much
0.00% 2021 2020 2019
profit a company make after paying for variable 2019 2018 2017

costs of production such as wages costs of production such as wages raw materials etc. Higher
one is better so 2019 & 2021 are good because those are higher than 2020.

21
3.3.12 Net Profit Margin
Year Net Profit Margin Net Profit Margin
2021 3.30%
4.50%

4.00%

2020 2.40% 3.50%

2021 4.00%
3.00%

2.50%

2.00%

Interpretation: 1.50%

Net Profit Margin measure how much net 1.00%

0.50%
income a company makes from its total sales 0.00% 2021 2020 2019
2019 2018 2017

High rate is better.so 2019 & 2021 is better

than other years.

3.3.13 Return on Asset (ROA)

Year Return on Assets (ROA)
Return on Assets (ROA)
2021 2.80% 4.00%
2020 2.30% 3.50%
2021 3.00%
3.60% 2.50%
2.00%
Interpretation: 1.50%
1.00%
Return on asset (ROA) refers how effectively 0.50%
the management are using its assets to generate 0.00% 2021 2020 2019
2019 2018 2017
revenue. The higher return on assets is better, a high return on assets means that the business is
able to utilize its resources well in generating income.

Comparing with three years (2019-2021), 2019 was better because in 2019 the ROA was 3.60%
which is higher than the other years.

22
3.3.14 Return on Equity (ROE)
Return on Equity (ROE)
Year Return on Equity (ROE)
9.00%
2021
6.70% 8.00%

2020 7.00%
5.10% 6.00%

2021
7.80% 5.00%

4.00%

3.00%
Interpretation: 2.00%
It is a profitability ratio that refers the ability 1.00%

of a firm to generate profits from its 0.00%

2019
2021 2020
2018
2019
2017

shareholder's investments in the company. A high rate shows that the company is able to
successfully utilize the resources provided by its equity.

Comparing with three years (2019-2021), 2019 was better because in 2019 the ROE was 7.80%
which is higher than the other years.

3.3.15 Earning Per Share

Year Earnings Per Share (EPS)
Earnings Per Share (EPS)
2021 4.7
6
2020 3.43
5
2021 5.12
4
3

Interpretation: 2
EPS refers how much of net income have 1

been earned by each share of common stock. 0 2021 2020 2019

2019 2018 2017
Comparing with three years (2019-2021),
2019 was better because in 20195 the EPS was 5.12. It means every share of the common stock
earns 5.12 taka of net income, which is higher than the other years.

23
 Chapter-5
Findings, Recommendation and Conclusion

24
5.1 Findings of the Study
1. Horizontal Analysis:
i. Revenue: The revenue of AML is showing an increasing trend. I n each year
company’s total revenue is increasing which leads to sale are adequate.
ii. Operating Profit: Total growths of operating profit of AML were decreased in
2021 than the year of 2021 but it also increased compared to 2020. That’s a good
sign of this company.
iii. Profit After Tax: The average Profit After Tax of AML was decreasing in 2021
than in 2021.
iv. Total Asset: The overall growth of AML total assets has improved and the
condition of the company's total assets is very strong.
v. Total Liability: The overall liabilities of this company are growing, which makes
their lending capacity adequate.
vi. Total Equity: Great changes in shareholder equity have happened last year, with
a growing pattern. The overall equity of the company's shareholders is rising,
making its worth sufficient for shareholders.
2. Common-size Analysis: Many of the ratios of income statement items are growing year
by year in this analysis. Gross profit and operating profit were better than in previous
years. Similarly, there was also an increase in profit before tax and in net profit.
3. Asset turnover Ratio: In 2021, the company has sold out and restored its inventory
67.26 times which is lower than the previous year. Performance inclined compared to
2020 & 2019 and it’s far above industry average which shows a superior position in the
industry.
Performance of Total asset turnover in 2021 declined compared to 2020 and the
performance was unfavorable as it was below industry average. However, the decline in
the performance was caused by the higher relative change in total asset than the relative
change in sales.
Performance of Fixed asset turnover in 2021 declined compared to 2020 and the
performance is also unfavorable as it was below industry average. However, the decline
in the performance was caused by the higher relative change in sales than the relative
change in fixed assets.

25
4. Profitability Ratio: Performance inclined compared to 2020 and it’s certainly below
industry average which shows an unfavorable position in the industry. However, gross
profit margin increased as relative change in gross profit was higher than the relative
change in sales.
Performance of operating profit margin declined compared to 2019, it declined because
relative change in sales was higher than the relative change in operating profit.
Performance of net profit margin declined compared to 2019. And this caused by a higher
relative change in net profit than the relative change in total assets.
Performance of return on equity declined compared to 2019 and the performance is also
unfavorable as it was below industry average. the decline in the performance in 2021 was
caused by higher relative change in total common equity than relative change in net
income.

26
5.2 Recommendations
1. To increase the current ratio AML can Pay off Current Liabilities or Sell-off
Unproductive Assets or it can be making combination of both.
AML should increase its cash ratio to solve liquidity crisis. They also can improve its
quick ratio by discarding unproductive assets, improving the collection period, paying off
current liabilities.
2. To increase the asset turnover ratio AML, have to increase efficiency, and also have to
reduce cost and have to implement better inventory management process.
3. The most important things to increase the profit margin ratios is “cost”. To increase the
profit margin ratios AML, have to reduce the cost first then AML have to increase its unit
of sale and also AML have made proper use of time.
Return on asset showing a slow positive trend of return from 2019 to 2021. So AML
should pace up its productivity. Return on equity showing a low return. So, they should
be careful about it to increase ROA and ROE.
4. Abdul Monem Limited have to manage their assets carefully so that they can achieve
maximum benefit from the investment and increase the return on asset ratio by increasing
net income.
5. The company should impose strong terms and conditions for collection of cash.

27
5.3 Conclusion
The company's financial condition and results were not very good. In order to use the full
potential of the company, the company should aim to enhance efficiency in some areas,
especially in the asset management sector. In addition, rather than focusing only on high-cost
sources such as common holders' equity and retained profits, the business should use leverage
appropriately as a fund source.
However, as the price at the end of December 2021 was very low, the business position of the
sector was unpredictable. The P/E ratio reveals that both the undervaluation of the share price
and the intrinsic price calculated in the survey are also identical. Companies should come up
with new approaches and a better view of the market to strengthen the situation.

28
References:
 Abdul Monem Limited Transmission & Distribution Company Limited Official Website
https://www.AMLgas.org.bd/
 TGTDCL Annual Report 2019
 TGTDCL Annual Report 2016
 TGTDCL Annual Report 2015
 Gray Deassler (2003) Human Resource Management, Pearson Education, Singapore, pg
no.89, 187,2341
 Thompson, Stricksland, Gamble (2006). Crafssting & Executing Strategy
 TGTDCL Monthly MIS Report. 2011 (latest) Published MIS Section, Abdul Monem Limited
Bhaban, Kawranbazar, Dhaka
 WWW.assignmentpoint.com
 WWW.southeastBankltd.com
 WWW.google.com
 WWW.reportlinker.com
 WWW.wikipedia.com
 WWW.ask.com

29