A Term Paper on Financial Statement Analysis of Pran Group

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. Daffodil International University of Business and Economics, One of the reputed business schools in Bangladesh, has designed the curriculum of the BBA course such a way that the international standard graduates will be produced. For the partial fulfillment of BBA program our course teacher Mr.Shajidul Alam assigned us to prepare a Time-Series ratio analysis of a company to evaluate & interpret their financial performance. In this regard, we have selected Agricultural Marketing Company Ltd. PRAN as our client organization to evaluate their performance & financial status after doing a five years time-series ratio analysis from the firm’s financial statements.
Ratio analysis is the main task of this report. Therefore, this report includes various types of ratio measure and analysis. Financial ratio can be divided for convenience into five basic categories.
 Liquidity ratio
 Activity ratio
 Debt ratio
 Profitability ratio

As we are preparing this report assigned by the finance faculty of our university, our specific objectives are-
 To fulfill the partial of BBA program.
 To gain knowledge about ratio analysis.
 To observe the components that affects the ratio analysis.
 To know the tactic to develop a ratio analysis.
 To prepare ourselves as eligible worker to enter into a competitive job market.

We have initiated our analysis through gathering of information. We have collected information from primary as well as secondary sources.

Primary sources: The primary sources of information includes interviews with the firm’s financial personnel. Besides we have interviewed the accountants to get assistance for using the secondary data that is the firm’s financial statements.

Secondary sources: The secondary sources of information includes the firm’s annual report of the previous five years (2001-2005) & company profile. We have also collected information from the Internet & newspaper. Various books and reports related to ratio analysis have also been used as secondary sources of information.

Analysis of data & information: Analysis of the financial performance of Agricultural Marketing Company Ltd. of PRAN group has been evaluated from the data with the different financial ratios and formulas covered in the classroom session.