This document provides an overview of Bangladesh Lamps PHILIPS and presents common size statements for the company's financials from 2008-2012. It includes vertical and horizontal common size balance sheets and income statements. The vertical balance sheet shows percentages of items compared to total assets each year. The vertical income statement shows percentages of items compared to sales each year. The horizontal statements show each item as a percentage of the base year (2008). Averages and standard deviations are also calculated.

1. TERM
PROJECT
FIN421, SEC 02
APRIL 16, 2014
SUBMITTED TO
RIYASHAD AHMED
ASSISTANT PROFESSOR
BRAC BUSINESS SCHOOL

2. Page | 1
Group Members
Serial Name ID Email
1 Arif Hossain 11204034 arif-hossain@live.ca
2 Ishtiaque Sikder (Emon) 11304061 ishtiaquesikder@yahoo.com
3 Mahbub Ahmed 11204006 m.ahmed6964@gmail.com
4 Ummeh Habiba Rahman 11104100 Sleepingbeauty272@gmail.com
5 Shohel Rana 11104104 Ranasohel.21@gmail.com
6 Samiya Yesmin 11304043 Samiya.yesmin@gmail.com
7 Md. Mehedee Zaman 10204050 Mehedee.zaman@gmail.com
Contact number:
Arif Hossain: 01782440474
Mahbub Ahmed: 01674897780

3. Page | 2
Letter of Transmittal
April 16, 2014
Riyashad Ahmed
Lecturer, BRAC Business School
BRAC University
Subject: Submission of Fin- 421 “Term Project”.
Dear Sir,
As a part of the course Corporate Finance I, we have completed the semester long assigned Term
Project. As instructed, the report discusses the overall financial position of Bangladesh Lamps
PHILIPS.
The report is an outcome of a group work assigned where every participant has put his/her eminent
effort to provide the best possible. We have tried to put a straight and non-biased conclusion to all
matters and all disclosures and interpretations were made on available materials (Financial reports,
Market Index and Secondary research over the DSO Index).
Please do enlighten us for any miscalculation and queries found in the report.
Sincerely,
Arif Hossain
Ishtiaque Sikder Emon
Mahbub Ahmed
Ummeh Habiba Rahman
Sohel Rana
Samiya Yesmin
Md. Mehedee Zaman

4. Page | 3
Table of Content
Executive Summary 4
Overview of BD Lamps PHILIPS 5
Common Size Statement 6-12
Ratio Analysis 13-46
Market Return for the period 47-48
Cost of Capital 49-50
Stock Valuation 51-52
Appendix 53

5. Page | 4
Executive Summary
The report enumerates the financial position of BD Lamps Philips for a period of 5 years (2008-2012). In
order to better analyze the position of the company a comparison is done with 6 other companies in the
same industries. The other companies include Atlas Bangladesh, Bangladesh Autocars, BSRM, GPH
Ishpat, Navana CNG and Singer BD.
The report begins with the common sized financial statements (Vertical, Horizontal Income and Balance
Sheets) and is carried on with Financial Ration analysis of BD Lamps for 5 years and the other companies
(Atlas Bangladesh, Bangladesh Autocars, BSRM, GPH Ishpat, Navana CNG and Singer BD) for the year
2012. An Industry average is found and that average is compared to the ratios of BD Lamps. In the later
part of the report market Return for the period, Cost of Capital and Stock Valuation is carried out.

6. Page | 5
Overview of Bangladesh Lamps PHILIPS
Bangladesh Lamps Limited (BLL) is the pre-eminent manufacturer of electric light
bulbs in the country. The company has an exclusive licensing agreement with
PHILIPS Electronics N.V. Holland, under which it manufacturers PHILIPS lighting
products. BLL was incorporated in 1960 as a subsidiary of PHILIPS, Holland. In
March 1993, PHILIPS sold its entire shares to TRANSCOM (Bangladesh Lamps
Limited 2014).

7. Page | 6
2: Common Size Statements
Vertical Balance sheet:
All figures of the balance sheet of a particular year were divided by that year’s total asset and
expressed in percentage (%). Also, the averages and standard deviations were calculated.
Vertical Income statement:
All the figures of the Income Statement were divided by Sales of that year and expressed in
percentage (%). Also, the averages and standard deviations were calculated.
Horizontal Balance sheet:
2008 is taken to be the base year, each base year item’s quantity is divided by itself and is
articulated in percentage form, so eventually all the base year items come up to be 100%.
Horizontal Income statement:
2008 is taken to be the base year, each base year item’s quantity is divided by itself and is
articulated in percentage form, so eventually all the base year items come up to be 100%. Then
all the other items of the income statement for rest of the years of BD Lamps are divided by the
base year’s amount. We have also calculated the average here as per instructions.

8. Page | 7
Vertical Balance Sheet:
Details 2008 2009 2010 2011 2012 Average
Standard
Deviation
Assets
Property, plant and equipment 15.11% 9.94% 6.73% 12.54% 13.11% 11.48% 3.24%
Fixed Assets under Construction ─ ─ 1.40% 1.58% 1.11% 1.36% 0.24%
Intangible assets 0.02% 0.01% 0.01% 0.14% 0.11% 0.06% 0.06%
Investments:
At Cost 4.67% 3.55% 2.73% 2.82% 2.89% 3.33% 0.82%
Fair Value Adjustment 13.02% 39.68% 51.02% 33.37% 22.32% 31.88% 14.81%
17.69% 43.23% 53.75% 36.19% 25.21% 35.21% 14.29%
Loans and
Deposits
0.24% 0.21% 0.13% 0.22% 0.26% 0.21% 0.05%
Total non-current Assets 33.05% 53.39% 62.02% 50.66% 39.94% 47.81% 11.41%
Inventories 11.42% 11.89% 8.43% 14.27% 24.62% 14.13% 6.22%
Trade and other debtors 33.95% 23.51% 15.47% 21.12% 17.80% 22% 7.17%
Advance, deposits and Prepayments 0.61% 0.46% 0.59% 0.46% 0.59% 0.54% 0.07%
Advance Income Tax 5.08% 2.39% 3.18% 5.54% 7.49% 4.73% 2.02%
Cash and cash equivalents 15.89% 8.35% 10.32% 7.94% 9.56% 10.41% 3.20%
Total Current Assets 66.95% 46.61% 37.98% 49.34% 60.06% 52.19% 11.41%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 0.00%
Equity
Share Capital 8.80% 6.70% 4.72% 5.23% 6.97% 6.485% 1.61%
Reserves and Surplus 37.49% 61.39% 68.74% 54.59% 38.74% 52.19% 13.80%
Total Equity 46.29% 68.09% 73.46% 59.82% 45.71% 58.67% 12.55%
Liabilities
Long term loan ─ 3.39% 2.62% 5.56% 3.72% 3.82% 1.24%
Deferred liability - gratuity payable 2.60% 2.04% 1.65% 2.02% 2.30% 2.12% 0.35%
Deferred tax - liability 2.90% 1.81% 1.01% 1.47% 1.35% 1.71% 0.73%
Total non- current liabilities 5.50% 7.24% 5.28% 9.04% 7.37% 6.89% 1.54%
Current portion of long term loan ─ 1.16% 0.95% 2.43% 2.39% 1.73% 0.78%
Short term finance 29.34% 8.58% 9.69% 13.97% 26.32% 17.58% 9.63%
Trade and other Creditors 4.04% 5.66% 2.58% 5.18% 7.31% 4.96% 1.77%
Accrued Expenses 0.88% 0.69% 0.44% 0.59% 0.55% 0.63% 0.16%
Other liabilities 3.05% 1.51% 1.60% 1.39% 1.47% 1.80% 0.70%

9. Page | 8
Provision for Tax 8.10% 4.52% 4.76% 6.22% 6.72% 6.06% 1.48%
Provision for Royalty 2.79% 2.55% 1.23% 0.14% 2.15% 1.77% 1.09%
Total Current liabilities and provisions 48.21% 24.67% 21.26% 31.14% 46.92% 34.44% 12.50%
Total Liabilities 53.71% 0.03% 26.54% 40.18% 54.29% 34.95% 22.60%
Total Equity and liabilities 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 0.00%

10. Page | 9
Vertical Income Statement:
Details 2008 2009 2010 2011 2012 Average
Standard
Deviation
Sales (net of VAT and SD) 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 0.00%
Cost of goods sold -79.90% -81.71% -76.51% -75.07% -78.09% -78.26% 2.64%
Gross Profit 20.10% 18.29% 23.49% 24.93% 21.91% 21.74% 2.64%
Other Income 1.42% 1.80% 1.98% 1.66% 1.50% 1.67% 0.22%
Operating Expenses -5.21% -4.84% -10.46% -15.70% -25.13% -12.27% 8.45%
Profit from Operation 16.32% 15.25% 15.01% 10.90% -1.71% 11.15% 7.48%
Finance Expenses -5.72% -5.46% -4.55% -5.87% -6.55% -5.63% 0.73%
Finance Income 3.37% 3.52% 3.31% 4.99% 3.33% 3.70% 0.72%
Net Finance Expenses -2.35% -1.94% -1.24% -0.89% -3.22% -1.93% 0.92%
Profit Before Contribution Of WPPF 13.96% 13.31% 13.77% 10.01% -4.93% 9.22% 8.08%
Contribution to WPPF -0.66% -0.63% -0.65% -0.48% -0.61% 0.09%
Profit Befote Income Tax 13.30% 12.68% 13.11% 9.53% -4.93% 8.74% 7.79%
Income Tax:
-4.29% -3.88% -3.85% -4.00% 0.25%
1.28% 0.71% 0.65% 0.88% 0.35%
-3.02% -3.17% -3.20% -2.62% -0.29% -2.46% 1.23%
Net Profit For the Year 10.28% 9.51% 9.92% 6.92% -5.22% 6.28% 6.56%
Other Comprehensive income
Changes in fair value of available-for-sale-
financial assets 52.09% 56.42% -46.77% -16.72% 11.25% 51.18%
Total Comprehensive Income 61.60% 66.34% -39.86% -21.95% 16.53% 55.29%

11. Page | 10
Horizontal Balance Sheet:
Details 2008 2009 2010 2011 2012
Assets
Property, plant and equipment 100% 86.40% 82.93% 139.49% 143.99%
Fixed Assets under Construction 100.00% 102.14% 69.95%
Intangible assets 100.00% 79.66% 59.32% 1309.27% 1001%
Investments:
At Cost 100.00% 100.00% 108.93% 101.49% 101.49%
Fair Value Adjustment 100.00% 400.68% 730.22% 431.14% 281.54%
100.00% 321.28% 566.15% 344.09% 233.99%
Loans and
Deposits
100.00% 116.16% 106.22% 154.88% 182.69%
Total non-current Assets 100.00% 212.29% 349.53% 257.76% 198.40%
Inventories 100.00% 137.29% 137.47% 210.00% 353.86%
Trade and other debtors 100.00% 91.02% 84.87% 104.62% 86.08%
Advance, deposits and Prepayments 100.00% 100.28% 179.95% 128.35% 158.56%
Advance Income Tax 100.00% 61.96% 116.54% 183.50% 242.14%
Cash and cash equivalents 100.00% 69.10% 120.93% 84.07% 98.80%
Total Current Assets 100.00% 91.51% 105.67% 123.92% 147.28%
Total Assets 100.00% 131.43% 186.39% 168.16% 164.18%
Equity
Share Capital 100.00% 100.00% 100.00% 100.00% 130.00%
Reserves and Surplus 100.00% 215.22% 341.52% 244.83% 169.64%
Total Equity 100.00% 193.32% 295.60% 217.30% 162.10%
Liabilities
Long term loan 100.00% 109.81% 209.89% 137.32%
deferred liability - gratuity payable 100.00% 103.52% 118.16% 130.66% 145.26%
differed tax - liability 100.00% 81.71% 64.69% 84.86% 76.42%
Total non- current
liabilities
100.00% 172.89% 178.75% 276.27% 219.98%
Current portion of long term loan 100.00% 116.08% 267.21% 256.88%
Short term finance 100.00% 38.41% 61.52% 80.04% 147.27%
Trade and other Creditors 100.00% 184.15% 118.98% 215.63% 296.81%
Accrued Expenses 100.00% 103.84% 93.84% 112.29% 103.57%
Other liabilities 100.00% 64.98% 98.09% 76.62% 79.34%

12. Page | 11
Provision for Tax 100.00% 73.32% 109.40% 129.05% 160.40%
Provision for Royalty 100.00% 120.08% 81.71% 82.52% 126.54%
Total Current liabilities and
provisions
100.00% 67.27% 82.13% 108.62% 160.00%
Total Liabilities 100.00% 78.09% 92.03% 12.58% 165.97%
Total Equity and liabilities 100.00% 173.90% 246.62% 222.49% 217.22%

13. Page | 12
Horizontal Income Statement:
Details 2008 2009 2010 2011 2012
Sales (net of VAT and SD) 100.00% 114.38% 115.73% 126.69% 177.24%
Cost of goods
sold
100.00% -116.98% -110.82% -119.03% -173.24%
Gross Profit 100.00% 104.04% 137.06% 157.15% 193.15%
Other Income 100.00% 145.13% 160.99% 148.27% 187.61%
Operating
Expenses
100.00% -106.36% -232.42% -381.97% -855.36%
Profit from Operation 100.00% 106.88% 106.44% 84.64% -18.62%
Finance
Expenses
100.00% -109.03% -92.05% -130.05% -202.79%
Finance Income 100.00% 119.41% 113.76% 187.39% 175.08%
Net Finance Expenses 100.00% -94.17% -60.94% -47.90% -242.48%
Profit Before Contribution Of WPPF 100.00% 109.02% 114.11% 90.82% -62.61%
Contribution to WPPF 100.00% -109.02% -114.11% -90.82% 0.00%
Profit Before Income Tax 100.00% 109.02% 114.11% 90.82% -65.74%
Income Tax:
Current Tax 100.00% -103.28% -103.69%
deferred Tax 100.00% 63.41% 59.02%
100.00% -120.13% -122.57% -109.91% -17.00%
Net Profit For the Year 100.00% 105.77% 111.62% 85.22% -90.02%
Other Comprehensive
income
Changes in fair value of available-for-sale-financial
assets 0.00% 100.00% 109.60% -99.47% -49.75%
Total Comprehensive
Income
0.00% 100.00% 108.97% -71.67% -55.21%

14. Page | 13
3: Ratio Analysis
Liquidity Ratio
TITLE 2008 2009 2010 2011 2012
INDUSRY
AVERAGE
Current Ratio
1.39 times
1.46 times 1.78 times 1.58 times 1.28 times 2.02
Acid-test Ratio
1.152 times
1.088
times 1.39 times 1.13 times .755 times 1.08
Current Ratio: Current Assets / Current Liabilities
Measures the ability to meet current obligations in a timely manner. A healthy current ratio is
greater than 2.
Interpretation
In 2012 the company’s Current Assets were 1.28 times higher than their current liabilities.
The current ratio has declined from 2011 and is below the Industry Average. This is an
unsatisfactory situation for the firm. The firm must try reducing their Current liabilities or increase
their current assets.
Current Liabilities has gone up since last year and the amount of current assets has declined and
hence the current ratio has fallen in comparison to the previous year.

15. Page | 14
Time Series Analysis
Cross Section Analysis
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
2008 2009 2010 2011 2012
Current Ratios
Current Ratios
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Bangladesh
Lamps
Atlas
Bangladesh
Bangladesh
Autocars
BSRM GPH Ishpat Navana CNG Singer BD Industry
Average
Current Ratio Comparison
Current Ratio Comparison

16. Page | 15
Acid-test Ratio: Current Asset-Inventories/ Current Liabilities
An indicator of a company’s short-term liquidity. The quick ratio measures a company’s ability to
meet its short-term obligations with its most liquid assets.
Interpretation
In 2012, the company’s Current assets excluding inventories were .755 times more than that of
current liabilities.
Quick Ratio has declined from 2011 and firm’s ratio is below the Industry average. This is an
unsatisfactory fact since the company’s ability to pay off its short and daily expenses has declined
and this may prove to be risky for the company.
Purchases of inventory rose and current liability has increased leading to the decline in the quick
ratio.
Time Series Analysis
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
2008 2009 2010 2011 2012
Acid Test Ratio
Acid Test Ratio

17. Page | 16
Cross Section Analysis
0
0.5
1
1.5
2
2.5
3
Bangladesh
Lamps
Atlas
Bangladesh
Bangladesh
Autocars
BSRM GPH Ishpat Navana CNG Singer BD Industry
Average
Acid Test Ratio Comparison
Acid Test Ratio Comparison

18. Page | 17
Assets Management Ratio
TITLE 2008 2009 2010 2011 2012
INDUSRY
AVERAGE
Inventory turnover ratio
1.351
times 3.928 times 3.704 times 3.14 times 2.82 times 4.97
Total Asset turnover ratio
0.755
times 0.948 times
0.408 times
0.49 times .709 times 1.03
Fixed Asset turnover ratio
3.278
times 4.17 times .658 times .97 times 1.77 times 3.04
Days sales Outstanding
(DSO)
188.65
days
150.12
days
136.466
days 155.8 days 91.61 days 41.49
Average Payment Period 28.11 days 44.25 days
111.746
days 50.92 days 48.16 days 39.12
Inventory turnover ratio: Cost Of Goods Sold/Average Inventory
Inventory turnover is a measure of the number of times inventory is sold or used in a time period
such as a year.
Interpretation
In 2012 the company has sold out its inventory and restocked it 2.82 times
The ratio has declined from the previous year and is quiet below the Industry average. The ratio is
almost half that of Industry average, putting the firm in a very poor situation in the stock holders
eyes.Proportionate change in cost of goods sold was lower than the proportionate change in
inventory from the previous year and hence the ratio has fallen over the year.

19. Page | 18
Time Series Analysis
Cross Section Analysis
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
2008 2009 2010 2011 2012
Inventory Turnover Ratio
Inventory Turnover Ratio
0
2
4
6
8
10
12
14
16
Bangladesh
Lamps
Atlas
Bangladesh
Bangladesh
Autocars
BSRM GPH Ishpat Navana CNG Singer BD Industry
Average
Inventory Turnover Comparison
Inventory Turnover Comparison

20. Page | 19
Total Asset turnover ratio: Sales/Total Assets
The amount of sales or revenues generated per dollar of assets. The Asset Turnover ratio is an
indicator of the efficiency with which a company is deploying its assets.
Interpretation
In 2012, every 1 Taka worth of Asset has generated .709 Taka of sales.
Total Asset turnover ratio has increased from the previous year but is below the Industry average.
This is a poor situation for the firm and sales aren’t generating as equivalent to the value of assets.
Percentage change in sales was higher than the percentage change in total assets. I.e. % Increase
in asset was lower then % increase in Sales and thus the ratio increased from last year.
Time Series Analysis
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
2008 2009 2010 2011 2012
Asset Turnover Ratio
Asset Turnover Ratio

21. Page | 20
Cross Sectional Analysis
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
Bangladesh
Lamps
Atlas
Bangladesh
Bangladesh
Autocars
BSRM GPH Ishpat Navana CNG Singer BD Industry
Average
Total Asset Turnover Comparison
Total Asset Turnover Comparison

22. Page | 21
Fixed Asset turnover ratio: Sales/Fixed Assets
The fixed-asset turnover ratio measures a company's ability to generate net sales from fixed-asset
investments - specifically property, plant and equipment (PP&E) - net of depreciation. A higher
fixed-asset turnover ratio shows that the company has been more effective in using the investment
in fixed assets to generate revenues.
Interpretation
In 2012, every 1 Taka worth of fixed asset generated 1.77 taka worth of Sales.
Fixed asset turnover ratio has increased from the previous year but is below the industry average.
This is an unsatisfactory condition since other firms in the industry are earning way more in
comparison to this firm.
Proportion of change in Sales was higher than the change in fixed assets and hence the ratio
increased from last year.
Time Series Analysis
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
2008 2009 2010 2011 2012
Fixed Asset Turnover Ratio
Fixed Asset Turnover Ratio

23. Page | 22
Cross Sectional Analysis
0
1
2
3
4
5
6
7
8
Bangladesh
Lamps
Atlas
Bangladesh
Bangladesh
Autocars
BSRM GPH Ishpat Navana CNG Singer BD Industry
Average
Fixed Asset Turnover Ratio Comparison
Fixed Asset Turnover Ratio Comparison

24. Page | 23
Days Sales Outstanding: Accounts Receivable/ (Sales/365)
A measure of the average number of days that a company takes to collect revenue after a sale has
been made. A low DSO number means that it takes a company fewer days to collect its accounts
receivable. A high DSO number shows that a company is selling its product to customers on credit
and taking longer to collect money.
Interpretation
In 2012, on an average it took 91.61 days to collect receivables from debtors.
DSO ratio improved but is below the industry average. It’s twice the DSO rate that of Industry
Average which is a real long time.
Accounts receivable has declined, average sales per day has increased and hence the collection
period has reduced.
Time Series Analysis
0
20
40
60
80
100
120
140
160
180
200
2008 2009 2010 2011 2012
Days Sales Outstanding
Days Sales Outstanding

25. Page | 24
Cross Section Analysis
0
10
20
30
40
50
60
70
80
90
100
Bangladesh
Lamps
Atlas
Bangladesh
Bangladesh
Autocars
BSRM GPH Ishpat Navana CNG Singer BD Industry
Average
Days Sales outstanding Comparison
Days Sales outstanding Comparison

26. Page | 25
Average payment period: Account payable /( Cost of goods sold/ 365).
Average payment period measures how much time a company is getting to pay back to its creditors.
Interpretation:
In 2012, it takes an average to 48 days to pay back its creditors. In 2012, the average payment
period ratio decreased from the previous year except in 2010 which was very high. However it is
below the industry average. The average payment period decreased from the last year, because the
proportionate change of cost of goods sold was higher than the payables.
If we compare the Days Sales Outstanding (DSO) with the Average payment Period, we can see
that the DSO is much higher than Average payment period. That means in this company they
receives money in 91 days however the pay back to its creditors in an average within 48 days, so
the company is not in a good shape. And they should improve their credit policies for the debtors.
Times Series Analysis
Cross Section Analysis
0
20
40
60
80
100
120
2008 2009 2010 2011 2012
Average Payment Period
Average Payment Period

27. Page | 26
0
20
40
60
80
100
120
Average payment period
Average payment period

28. Page | 27
Debt Management Ratio
TITLE 2008 2009 2010 2011 2012 INDUSTRY
AVERAGE
Debt to Asset Ratio 61.74% 52.9% 26.536% 40.18% 54.29% 50.37%
Times interest
earned (TIE)
2.85 times 7.87 times 7.510 times 6.22 times -1.53 times 23.67
Debt to Asset Ratio: Total Debt / Total Asset *100
Measures the percentage of total Assets provided by the creditors.
Interpretation:
In 2012, 54.29% of the total Assets were financed by the total Debts. The decision was not
favorable for the company.
Time Series Analysis:
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
2008 2009 2010 2011 2012
Debt to Asset Ratio
Debt to Asset Ratio

29. Page | 28
Cross Section Analysis
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
Debt to Asset Ratio
Debt to Asset Ratio

30. Page | 29
Times Interest Earned: Earnings Before Interest And Tax/ Interest Expenses.
Times interest Earned measures ability to meet interest payments as they come due.
Interpretation:
In 2012, the company’s profit from the operation (EBIT) was -1.53 times lower than its interest
expenses. In 2012, the times interest earned ratio of this company has decreased over the last five
years. However, it is also below the industry average and it is also very poor for the company. The
Earnings before interest and tax was less and the interest expenses were higher and that’s why the
ratio has declined.
Time Series Analysis:
-2
0
2
4
6
8
10
2008 2009 2010 2011 2012
Times Interest Earned
Times Interest Earned

31. Page | 30
Cross Section Analysis:
-20
0
20
40
60
80
100
120
140
Bangladesh
Lamps
Atlas
Bangaldeh
Bangladesh
Auto Cars
Bsrm GPH Isphat Navana CNG Singer Bd IA
Times Interest Earned

32. Page | 31
Profitability Ratio
TITLE 2008 2009 2010 2011 2012
INDUSTRY
AVERAGE
Gross Profit Margin 20.1.% 18.2% 23.49% 24.93% 21.90% 19.06%
Operating Profit Margin 16.317% 15.247% 15.01% 10.9% -1.71% 9.77%
Net Profit Margin 10.28% 9.508% 13.11% 6.917% -5.22% 5.30%
Return on Asset (ROA) 7.765% 9.01% 5.352% 3.423% -3.703% 1.14%
Return on Equity (ROE) 20.297% 14.78% 7.285% 5.722% -6.044% -3.48%
Gross Profit margin: Gross profit/Sales
Gross profit margin measures margin performance strictly on cost of goods sold.
Interpretation
In the year 2012, the company has earned 21.90 taka for every 100 taka of sale.
Gross profit has decreased from previous year but is above the industry average. To say the
company is in a good position since its GP is higher than the Industry Average but it has decreased
from previous year which is a bad sign for the company.
Gross profit has increase and so has sales but amount of increase in Gross profit is lower than that
of sales and hence Gross profit ratio has decreased.

33. Page | 32
Time Series Analysis
Cross Section Analysis
0
5
10
15
20
25
30
2008 2009 2010 2011 2012
Gross Profit margin
Gross Profit margin
0
5
10
15
20
25
30
35
40
Bangladesh
Lamps
Atlas
Bangladesh
Bangladesh
Autocars
BSRM GPH Ishpat Navana CNG Singer BD Industry
Average
Gross Profit Margin Comparison
Gross Profit Margin Comparison

34. Page | 33
Operating Profit Margin: Operating Profit/Sales
Operating income earned for amount of sales.
Interpretation
In 2012 the company had an operating loss of (1.71) taka for every 100 taka sale.
Operating profit has decreased from last year and is way below the industry average. The
company’s operating profit appears to be negative which states that they are incurring operating
loss for sales.
Operating loss has occurred and increase in sales has occurred and hence the ratio appears to be
negative.
Time Series Analysis
-4
-2
0
2
4
6
8
10
12
14
16
18
2008 2009 2010 2011 2012
Operating Profit Margin
Operating Profit Margin

35. Page | 34
Cross Section Analysis
-5
0
5
10
15
20
25
Bangladesh
Lamps
Atlas
Bangladesh
Bangladesh
Autocars
BSRM GPH Ishpat Navana
CNG
Singer BD Industry
Average
Operating Profit Margin Comparison
Operating Profit Margin Comparison

36. Page | 35
Net Profit Margin: Net profit/Sales
Net profit margin shows the overall profit earned and retained by the company on the total sales
made within a year.
Interpretation
For the year 2012, the net loss is (5.22) taka for every 100 taka of sales made.
Net Profit has decreased from previous year and is also quiet below the Industry average. This is
a real bad condition for the firm since it has made a loss in this year and this will affect the firms
share price adversely.
Net loss has occurred during this period and hence the net profit ratio appears negative this period.
Time Series Analysis
-10
-5
0
5
10
15
2008 2009 2010 2011 2012
Net Profit margin
Net Profit margin

37. Page | 36
Cross Section Analysis
-10
-5
0
5
10
15
20
Bangladesh
Lamps
Atlas
Bangladesh
Bangladesh
Autocars
BSRM GPH Ishpat Navana CNG Singer BD Industry
Average
Net Profit amrgin Comarison
Net Profit amrgin Comarison

38. Page | 37
Return on Assets: Net Profit/Total Assets
Return on assets ratio shows how much of net profit the company has earned on the total assets of
the firm.
Interpretation
For the year 2012, the company had a net loss of (3.703) taka for every 100 taka of assets.
Return on assets ratio has declined and is below the industry average. The company seems to make
a loss on all the value of its assets. I.e. it seems to make no profit during the period, incurring a
total loss for this period.
The company incurred a net loss and hence the answer turned out to be negative.
Time Series Analysis
-6
-4
-2
0
2
4
6
8
10
2008 2009 2010 2011 2012
Return On Asset
Return On Asset

39. Page | 38
Cross Section Analysis
-50
-40
-30
-20
-10
0
10
20
Bangladesh
Lamps
Atlas
Bangladesh
Bangladesh
Autocars
BSRM GPH Ishpat Navana CNG Singer BD Industry
Average
Return on Asset Comparison
Return on Asset Comparison

40. Page | 39
Return on Equity: Net Profit/Total Common Equity
Return on equity shows how much the owner has earned on his investment.
Interpretation
In 2012, the company’s shareholders had a loss of (6.044) taka on every 100 taka of their equity.
Return on equity has fallen from the previous year and is below the Industry average. The company
seems to have done really badly buy incurring loss on shareholders equity.
Since net loss was occurred the ratio turned out to be negative.
Time Series Analysis
-10
-5
0
5
10
15
20
25
2008 2009 2010 2011 2012
Return on Equity
Return on Equity

41. Page | 40
Stock Market Ratio
TITLE 2008 2009 2010 2011 2012
INDUSTRY
AVERAGE
Earnings per share (EPS) Tk 76.74 Tk 81.17 Tk 8.567 Tk 6.54 Tk -5.31 3.107
Market to book value
ratio 2.9 times
4.36
times 1.037 times
1.67
times
1.83
times 2.64
P/E ratio 14.29 22.78 13.835 29.21 -22.54 8.15
Earnings per share: Earnings per share are the ratio which measures the net income earned on
each common stock.
In 2012 the common shareholders have earned Tk. 5.31 per share for the Bangladesh Lamps. In
the above graph it shows that the earning in 2012 was much lower than the previous years and it
started to fall from 2010 to 2012. So EPS has declined though it’s above Industry Average. And
also due to fall in Net Profit the EPS has gone down.

42. Page | 41
Time Series Analysis:
0
10
20
30
40
50
60
70
80
90
2008 2009 2010 2011 2012
Earning Per Share(EPS)
Earning Per Share(EPS)

43. Page | 42
Cross Sectional Analysis:
-10
-5
0
5
10
15
Bangladesh
Lamps
Atlas
Bangladesh
Bangladesh
Autocars
BSRM GPH Ishpat Navana
CNG
Singer BD IA
Earnigs Per Share(EPS)
Earnigs Per Share(EPS)

44. Page | 43
Market to book value: Market to book value is the deference between the relation of the Market
price and the Book value.
In 2012 the Market of Bangladesh Lamps was 1.83 times higher than its Book value. M/B ratio
has declined and at the same time it has fluctuated. BV ratio was higher and that’s why the M/B
ratio has fallen and also it’s below the IA too.
Time Series Analysis:
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
2008 2009 2010 2011 2012
Market to book value ratio(M/B)
Market to book value
ratio(M/B)

45. Page | 44
Cross Sectional Analysis:
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Bangladesh
Lamps
Atlas
Bangladesh
Bangladesh
Autocars
BSRM GPH Ishpat Navana
CNG
Singer BD IA
Maket to book value ratio(M/B)
Maket to book value ratio(M/B)

46. Page | 45
Price-to-Earnings Ratio: Price-to-Earnings Ratio it measures the ratio of the market price per
share to earnings per shares.
In 2012 the common shareholders of Bangladesh Lamps were reluctant to pay -22.54 times for
each Taka of reported earnings. It’s very low compared to IA and is also very bad for the company
to keep P/E ratio very high or low than the IA. This might happen due overvalue of shares which
stated high market price but earnings per shares was not up to the investors’ interest.
Time Series Analysis:
-30
-20
-10
0
10
20
30
40
2008 2009 2010 2011 2012
Price-to-Earnings Ratio
Price-to-Earnings Ratio

47. Page | 46
Cross Sectional Analysis:
-30
-20
-10
0
10
20
30
Bangladesh
Lamps
Atlas
Bangladesh
Bangladesh
Autocars
BSRM GPH Ishpat Navana
CNG
Singer BD IA
Price-to-Earnings Ratio
Price-to-Earnings Ratio

48. Page | 47
4: Calculation of Market Return for the
Period
Bangladesh Lamps Market
Average Monthly Returns 1.79% 0.66%
Standard Deviation 13.81% 9.32%
Annual Returns 21.48% 7.92%
Beta Calculation
Using Scatter Diagram & Regression Analysis
y = 0.823x + 0.012
-40.00%
-30.00%
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
-40.00% -30.00% -20.00% -10.00% 0.00% 10.00% 20.00% 30.00% 40.00%
BDLAMPS
Market Return
BETA CALCUATION
BD Lamps
Linear (BD Lamps)

49. Page | 48
Market Return for the period
CALCULATION OF Ke:
Rf = 7.65% (Yield from Treasury Stock)
Rm = 7.92% (.66*12 Months)
β = 0.8234714
CAMP, Ke = Rf + (Rm - Rf)*β
= 0.07872337
The Market Return for the period is 0.07872337

50. Page | 49
5: Cost of Capital
The Long term loan of the Company
Accounts for 50,063,367
Weight of Long Term Debt Long term Loan 3.72%
Total Asset
Cost of Loan (before tax) Interest paid 0.647199818
Long term liabilities
Corporate Tax Rate
(Profit Before Tax-Profit
After tax) 5.87%
Profit Before Tax

51. Page | 50
Weighted Average Cost of Capital (WACC)
WACC= WD*KD(1-T)+WCS*KCS+WRE+KRE
Total Debt 50,063,367
Total Common Equity
863,537,568
Net Worth 1,344,606,957
Weight of Debt 3.72%
Weight of Equity
64.22%
Before Tax Cost of Debt 64.72%
Cost of Equity & Retained Earning 7.87%
Tax Rate 5.87%
Retained Earning 0
WACC
7.32%
Interpretation of WACC: For collecting every TK. 100, BD Lamps Philips has to incur a cost
of 7.32Tk on an average.

52. Page | 51
6: Stock Valuation
Dividends Paid over the 5 years period are as follows
Year 2008 2009 2010 2011 2012
Dividend 20945349 33572839 34615086 13591615 144826 g
Outstanding
Shares
7208160 7208160 7208160 7208160 7208160
Dividend Paid Per
Share
2.905783029 4.657615674 4.802208331 1.885587307 0.020091951
Growth Rate 60.3% 3.1% -60.7% -98.9% -24.07%
Present
Value
n=4 Future Value -71.16%
Average g -47.6%
Po for 2012 136805
Ke= 0.078723373
2012 2013 2014 2015
Dividend paid 144826 75888.824 39765.312 40162.96512
Dividend Paid Per Share 0.020091951 0.010528183 0.005516708 0.005571875

53. Page | 52
Terminal Year is 2015
g = 1%
g = -47.6%
2013 2014 2015
Terminal Value 2015 0.005571875 0.08110444
(.0787-.01)
PV of Terminal Value 0.08110444 0.064616376
PV of 0.005516708 0.00474111
PV of 0.010528183 0.009760066
Intrinsic Value of the share in the
year 2012
.064616+.00474111+.009760066 Tk 0.079117176
(𝟏+. 𝟎𝟕𝟖𝟕) 𝟑
𝐃 𝟐𝟎𝟏𝟒
𝐃 𝟐𝟎𝟏𝟑
(𝟏+. 𝟎𝟕𝟖𝟕) 𝟐
(𝟏+. 𝟎𝟕𝟖𝟕) 𝟏

54. Page | 53
Attached
Appendix