Report on
Financial Statement & Ratio Analysis
of
Acme Laboratories Ltd
Submitted To
Name: Kamrul Hassan Sunon (KHS) (Lecturer)
Department: ULAB School of Business (USB)
Course Code: BUS 104
Course Title: Introduction to Finance
Section: 01
Name I.D. Department Contribution Signature
(Page No.)
Kazi Tanvir 173011167 USB 1,3,6,13
Mahtab Kaushik
Md. Tauhidul 173011178 USB 2,6,13,14
Alam
Rawful Alam 173011158 USB 11
Mir Mahmud 173011174 USB 5
Murad
Nadimul Haque 173011155 USB 11
Abid
Acknowledgement
We would like to express our special thanks of gratitude to our teacher Kamrul Hassan Sunon
who gave us the golden opportunity to do this wonderful report on Financial Statement
Analysis on Acme Laboratories Ltd which also helped us in doing a lot of research and we
came to know about so many new things we are really thankful to you sir.
Secondly we would also like to thank our parents and friends who helped us a lot in finalizing
this report within the limited time frame.
The success and final outcome of this project required a lot of guidance and assistance from
many people and we are extremely fortunate to have got this all along the completion of our
report. We respect and thankful, for giving us an opportunity to do the report on Acme
Laboratories Ltd. We are extremely grateful to you sir for providing such a nice support and
guidance though you had busy schedule managing the University affairs.
Table of Content
Topics Page No.
Executive Summary 1
Introduction 2
SWOT Analysis 3
Industry Analysis 5
Financial Statement Ratio 6
Overall Performance 11
Recommendation 13
Conclusion 14
Bibliography 15
Executive Summary
Acme founded in 1954 and certified by ISO 9001 in 2015. ACME’s modernized plant is
located at Dhamrai, about 40 km N.W. of Dhaka, the capital of Bangladesh. Acme values
productivity as the spontaneous contribution of Human Resources. Strategic Human
Resource Development Programs are the energy sources for Acme HR for running towards
the zenith of success. Over the past few decades, we have seen an amazing growth and
success in pharmaceutical sector. With more than 60 years of expertise in medicine and
science, our company draws upon a rich legacy of high-quality formulations and a robust
pipeline of promising generic medicines at affordable price to meet the health care needs.
Their company values are the measure for their thinking and actions. Those are the core of
what ties them together in the past, present and future. They do business on the basis of
common values. Their success is based on customer focus, team spirit, desire to win, pro-
activity, integrity and excellence. These values determine our actions in their daily dealing
with customers and business partners as well as in their teamwork and collaboration with
each other. Their vision is to ensure Health, Vigour and Happiness for all.
INTRODUCTION
ACME Laboratories Ltd today symbolizes a name – a state of mind. But its journey to the
growth and prosperity has been no bed of roses. From the inception in 1954 it has today
burgeoned into one of the top line conglomerates in Bangladesh. ACME Laboratories Ltd the
flagship company, is holding the strong leadership position in the pharmaceutical industry of
Bangladesh since 1999 and is now on its way to becoming a high-performance global player.
ACME Laboratories Ltd is the largest pharmaceutical company in Bangladesh and it has been
continuously in the 2nd position among all national and multinational companies. It was
established in 1954 and converted into a private limited company in 1976. The sales turnover
of The ACME laboratories LTD was more than US$ 80 million in the last year.
SWOT ANALYSIS
Sizing up a firm’s resource strengths and weaknesses and its external opportunities and
threats, commonly known as SWOT analysis, provides a good overview of whether a
firm’s business position is fundamentally healthy or unhealthy. SWOT analysis is grounded
in the basic principle that strategy-making efforts must aim at producing a good fit between
a company’s resource capability and its external situation. In light of the above fact, the
SWOT analysis of Acme laboratories is given
below:
Strength
The Key Strengths are
High company image and widely recognition as the pioneer of the industry
A long tradition of participative management and employee retention.
A strong financial condition; ample financial resources to grow the business.
Trained and efficient marketing and sales team.
An attractive loyal customer base.
Manufacturing plant with flexible manufacturing capacity and batch processing
Weakness
Key weaknesses
Underutilized plant capacity in Pabna & inability to meet current demand condition
due to under production capacity.
Centralized controlled on manufacturing plants
Dependence on Volume products
Lack of proper integration between functional units and divisions; thus, benefit from
cross-functional collaboration is not fully realized.
High cost of manufacturing and distribution
Opportunities
Growing consciousness about ethical standards and expectations from customers
Growing demand in domestic market
Existing demand in the neighboring country’s pharmaceutical market
Globalization allows square to enter global market by diversifying its business by
utilizing the company image
Threats
Key threats
Aggressive promotional activity by the rivals.
Exchange rate fluctuation causing input price high.
Infiltration of low-price smuggled products
Likely entry of potent new competitors due to attractive industry profitability.
Growing bargaining power of customers and suppliers.
Modern technology is coming to obsolete the existing technology. This will cause
huge capital loss for the production process.
INDUSTRY ANALYSIS
The ACME Laboratories Ltd. is a leading company for manufacturing world-class and top-
quality pharmaceutical products in Bangladesh. They are currently producing more than 500
products in different dosage forms covering broader therapeutic categories which include
anti-infective, cardiovascular, antidiabetics, gastrointestinal, CNS, respiratory disease etc.
Among many others. The success in local market prompted them to explore the international
market and over the years they achieved a firm presence in South East Asia, Africa and
Central America and continuously discovering new horizons to improve the quality of life for
patients, to further the success of their customers and to help meet global challenges.
They are united, inspired and fueled by their mission to ensure health vigor and happiness for
all. Since our founding in 1954 by Mr. Hamidur Rahman Sinha, an entrepreneur and
philanthropist in this region of then British divided Indian sub-continent, they have been
committed to offering solutions to their most pressing health care needs. More than half a
century later, they remain true to their founder’s vision and values – to produce high quality
medicines with integrity, customer focus, pro-activity, team spirit, excellence and desire to
win and responding to social and environmental needs. Over the past few decades, we have
seen an amazing growth and success in pharmaceutical sector. With more than 60 years of
expertise in medicine and science, their company draws upon a rich legacy of high-quality
formulations and a robust pipeline of promising generic medicines at affordable price to meet
the health care needs.
FINANCIAL STATEMENT ANALYSIS
Individual Ratio:
Current Ratio
2013 2014 2015 2016 2017
1.01 0.78 1.03 1.40 1.22
Current Ratio
1.4 1.22
1.01 1.03
0.78
2013 2014 2015 2016 2017
Current Ratio
Current ratio indicates how many times the current liability can be covered, means the
capability to cover current liability with the company's current asset. So, the higher the ratio,
it'll help the company to go for large size loans. But much higher ratio may indicate much
higher CA or much lower CL
Quick Ratio
2013 2014 2015 2016 2017
0.94 0.52 0.67 1.03 0.91
Quick Ratio
0.94 1.03 0.91
0.52 0.67
2013 2014 2015 2016 2017
Quick Ratio
Quick ratio measures the capability of a company to cover it's current liabilities with total
NWC. So, the higher the ratio, it's better for the company. But much higher ratio may
indicate much higher CA or much lower CL or lower inventory.
Inventory Turnover Ratio
2013 2014 2015 2016 2017
2.95 2.54 1.84 1.30 0.74
Inventory Turnover Ratio
2.95 2.54
1.84 1.3 0.74
2013 2014 2015 2016 2017
Inventory Turnover Ratio
As we can see according to the chart from 2013-2017 the rate has been decreasing with low
Inventory Turnover Ratio.
Days Sales Outstanding
2013 2014 2015 2016 2017
17.53 26.67 35.55 57.94 617.49
Days Sales Outstanding
617.49
17.53 26.67 35.55 57.94
2013 2014 2015 2016 2017
Days Sales Outstanding
As we can see from according to the chart 2013-2017 rate has been increasing.
Fixed Asset Turnover Ratio
2013 2014 2015 2016 2017
0.75 0.56 0.45 0.34 0.19
Fixed Asset Turnover Ratio
0.75
0.56 0.45 0.34
0.19
2013 2014 2015 2016 2017
Fixed Asset Turnover Ratio
As we can see from according to the chart 2013-2017 rate has been decreasing.
Total Asset Turnover Ratio
2013 2014 2015 2016 2017
0.48 0.39 0.32 2.12 1.17
Total Asset Turnover Ratio
2.12
1.17
0.48 0.39 0.32
2013 2014 2015 2016 2017
Total Asset Turnover Ratio
As we can see according to the chart from 2013-2015 the rate had decreased from 2009-2010
but slow it started to decline.
Debt Ratio
2013 2014 2015 2016 2017
45.35 51.79 56.12 41.90 42.61
Debt Ratio
51.79 56.12
45.35 41.9 42.61
2013 2014 2015 2016 2017
Debt Ratio
As we can see according to the chart 2013-2015 rate has been increasing and 2015-2017 the
rate has been decreasing.
Time Interest Earned Ratio
2013 2014 2015 2016 2017
5.21 4.19 6.84 4.87 5.92
Time Interest Earned Ratio
5.21 6.84 5.92
4.19 4.87
2013 2014 2015 2016 2017
Time Interest Earned Ratio
As we can see according to the chart 2013-2015 rate has been increasing and 2015-2017 the
rate has been decreasing.
Net Profit Margin Ratio
2013 2014 2015 2016 2017
5.34 6.52 7.2 11.77 11.87
Net Profit Margin Ratio
11.77 11.87
5.34 6.52 7.2
2013 2014 2015 2016 2017
Net Profit Margin Ratio
As we can see from according to the chart 2013-2017 rate has been increasing.
Return on Total Assets
2013 2014 2015 2016 2017
2.61 2.59 2.33 2.50 1.40
Return on Total Assets
2.61 2.59 2.5
2.33
1.4
2013 2014 2015 2016 2017
Return on Total Assets
As we can see according to the chart from 2013-2014 the rate had increased from 2015-2017
but slow it started to decline.
Overall Performance
They have the pleasure to inform you all at the 41st Annual General Himeting of The
ACHIM Laboratories Ltd. being the Second Annual General Himeting since its listing. They
would like to take this opportunity to express securities and accompanying with the Tierney
of ACHIM toward enormous possibilities and prosperity. They also take this opportunity to
sheloshim Mr. Kazi Sanaul Hoq, who has recently joined their Board as nominee Director
from the Investment Corporation of Bangladesh (ICB). They are hopeful that his long-term
experience in the Financial and Capital Market will help to enrich the board of the Company.
On this auspicious occasion, they would like to introduce the Annual Report 2016-2017
furnishing before you the Company’s Financial Statements for the year ended 30 June 2017,
the achievements and a review of gradual and sustainable progress of the Company. Their
Company continues to be an active contributor and participant in the growth of the
Bangladesh Pharmaceutical industry over the past many decades. The products portfolios
there strengthened through customers’ relevant initiatives and excellent retail level year, the
Company has been successfully upgraded its ISO standard from 9001:2008 to 9001:2015
version. like Storied and Hormone, Penicillin, Active Pharmaceuticals Ingredients (API)
project including sohim other projects. Going forward the focus remains on expansion of the
Company’s products portfolio and increasing market penetration in both domestic and
international markets to developing, retaining and rewarding talents. A standard and
continuous training environment had been to their leaders on the competencies required for
business sustainability and is structured into corporate, management and functional
competencies. Their integrated Performance management System assesses the extent to
which leadership goals are achieved, exceeded and informs individual development plans. In
the year under review, 49 (forty-nine) new products have been added with the existing
product portfolio of the ACHIM, production capacity increased to Hemet the demand of the
local and global market as they’ll. This is the sign of our gradual growth that preserves the
interest of the investors through accomplishment of our strategic objective. Considering the
industry, bright prospect and market demand of both domestic and global, ACHIM planned
to introduce several new projects. As communicated earlier, the construction of Steroid &
Hormone and penicillin projects have already been started and hopefully will be completed
within the timeframe.
Regarding API projects, the government recently issued allotment Letter with regard to API
plots in favor of the Company. As per terms of the concerned authority, they paid the
proportionate amount for establishment installment for the allocated land. They are hopeful
that
The Board of Directors of the Company consists of eight Himmbers. Out of the eight
Himmbers in the board all of our Board Himmbers for their commendable contributions,
which enabled the management to achieve sustainable results during the year 2016-2017.
They would express our sincere acknowledgement the contribution made by the himmbers of
the management. Bangladesh Securities and Exchange Commission (BSEC), Dhaka Stock
Exchange Limited (DSE), Chittagong Stock Exchange Limited (CSE), Central Depository
Bangladesh Ltd. (CDBL), Registrar of Joint Stock Companies and Firms (RJSC), National
Board of Revenue (NBR), Insurance Development and Regulatory Authority (IDRA),
Government Agencies, Directorate General of Drug Administration (DGDA), our valued
customers, Healthcare
Professional, Bankers, Insurance Companies, suppliers and all concerned for their continued
support and right strategic focus, people and resources to deliver continued growth in the
years ahead.
A HIMSSAGE FROM THE MANAGING DIRECTOR Mr: Mizanur Rahman Sinha
It gives him immense pleasure to report our Second Annual result as a listed Company. On
behalf of the Management, He would like to thank all of our shareholders, investors,
management team and other stakeholders of the Company. I also take the privilege to thank
you all on behalf of myself and Himmbers of the Board for attending at the 41st Annual
General Himeting of The ACHIM Laboratories Ltd. In the world. The Global Pharmaceutical
Market is expected to touch US$ 1.4 trillion by 2020, compared to US$ 1.0 trillion in 2015 as
per IMS. Demographics, increased incidence of chronic ailments, ageing population,
increasing income levels and improved access to healthcare will be the key drivers of
Bangladesh Pharmaceutical Market in the coming years. policymakers. Population growth,
ageing citizens and slower global economic growth are likely to pressurize global healthcare
budgets. In such an environment, generic drugs are an essential part of any solution to
sustaining the healthcare system and are the key drivers of increasing patient access to
modern medicines in global pharma market.
Recommendation
By analyzing SWOT, we found that Acmi pharma has some weaknesses and threats. We
would like to recommend Acmi pharma to train their labors, which will make labors more
efficient, and thus it will reduce costs. They should also employ persons that are more
experienced so that if any machine stopped working, they can resolve it within a short time.
Besides this, we would also recommend Acmi pharma Limited to buy new and modern
machineries for more production and they should improve their distribution system. Acmi
pharma should focus its liquidity ratio, debt ratio, profitability ratios to improve the
company’s position in the competitive market. However, its performance was good in
previous years but to compete with new era of pharmaceuticals business in Bangladesh, while
China and India are catching Bangladesh’s clients, we would like to recommend Acmi
pharma to take necessary steps as soon as possible to go in the long run and to hold its
glorious success in local market and international market.
Conclusion
ACME Laboratories Ltd has been very successful in creating a strong brand name and
achieving significant market share. To maintain Good Manufacturing Practice (GMP)
approval, proper attention is paid to the latest concepts of cross contamination, air circulation
and air handling, particle free finishes, equipment layout, process flow hygiene and safety.
With its progressive business outlook, believes and practices corporate work culture with a
classic blend of efficiency and equity. ACME believes in company growth by increasing
efficiency level of employees and for that offering excellent environment and support for
skill and knowledge upgradation. Acme values productivity as the spontaneous contribution
of Human Resources. Strategic Human Resource Development Programs are the energy
sources for Acme HR for running towards the zenith of success. Flow of clear and specific
information and justification of queries play the vital role to ensure the market reputation of
Acme as the most trusted and transparent company. All this expansion and extension in
business and services has manifested the credibility of ACME Laboratories Ltd.
Bibliography
1. https://acmeglobal.com/wpcontent/themes/acme/uploads/Annual_report_2012
2013.compressed.pdf
2. https://acmeglobal.com/wpcontent/themes/acme/uploads/Annual_Report_201
3-2014.compressed.pdf
3. https://acmeglobal.com/wpcontent/themes/acme/uploads/Annual_Report_201
4-2015.pdf
4. https://acmeglobal.com/wpcontent/themes/acme/uploads/Annual_Report_201
6.pdf
5. https://acmeglobal.com/wpcontent/themes/acme/uploads/ACME_AGM_2017.
pdf
