Title: Financial Statement Analysis Of

Bashundhara Paper Mills Limited (BPML)

&

Khulna Printing and Packaging Limited (KPPL)

Course Name: Principles of Finance

Course Code: ALD - 2102

Submitted by

Name: SK Arif Fuad

Roll No: 2221141013

Batch: BBA AIS - 2022 (07)

Section: A

Submitted to

Ratan Ghosh

Assistant Professor

Accounting & Information Systems

Faculty of Business Studies

Bangladesh University of Professionals

Date of Submission: 31th October, 2023

 Financial Statement
Analysis
Of
Basundhara Paper
Mills Limited (BPML)
&
Khulna Printing and
Packaging Limited
(KPPL)
 Contents
Abstract ................................................................................................................................................. 6

Chapter 1 - Introduction ........................................................................................................................ 7

Chapter 2 - Methodology ...................................................................................................................... 8

Chapter 3 - Findings & Analysis ......................................................................................................... 10

Khulna Printing and Packaging Limited ......................................................................................... 10

Vertical Analysis of Balance Sheet ............................................................................................. 10

Khulna Printing and Packaging Limited (Vertical Analysis of B/S -2022) ............................ 10

Khulna Printing and Packaging Limited (Vertical Analysis of B/S -2021) .............................11

Khulna Printing and Packaging Limited (Vertical Analysis of B/S -2020) ............................ 12

Khulna Printing and Packaging Limited (Vertical Analysis of B/S -2019) ............................ 13

Khulna Printing and Packaging Limited (Vertical Analysis of B/S -2018) ............................ 14

Khulna Printing and Packaging Limited (comparative Vertical Analysis of B/S) .................. 15

Horizontal Analysis of Balance Sheet ......................................................................................... 18

Khulna Printing and Packaging Limited (Horizontal Analysis of B/S-2022-21) ................... 18

Khulna Printing and Packaging Limited (Horizontal Analysis of B/S-2021-20) ................... 19

Khulna Printing and Packaging Limited (Horizontal Analysis of B/S-2020-19) ................... 20

Khulna Printing and Packaging Limited (Horizontal Analysis of B/S-2019-18) ................... 21

Khulna Printing and Packaging Limited (Horizontal Analysis-Comparative of B/S) ............ 22

Vertical Analysis of Income Statement ....................................................................................... 26

Khulna Printing and Packaging Limited (Vertical Analysis of I/S -2022) .............................. 26

Khulna Printing and Packaging Limited (Vertical Analysis of I/S -2021) .............................. 27

Khulna Printing and Packaging Limited (Vertical Analysis of I/S -2020) .............................. 28

Khulna Printing and Packaging Limited (Vertical Analysis of I/S -2019) .............................. 29

Khulna Printing and Packaging Limited (Vertical Analysis Commparison of I/S -4 years)... 30
 Horizontal Analysis of Income Statement .................................................................................. 34

Khulna Printing and Packaging Limited (Horizontal Analysis of I/S -2022-21) .................... 34

Khulna Printing and Packaging Limited (Horizontal Analysis of I/S -2021-20) .................... 35

Khulna Printing and Packaging Limited (Horizontal Analysis of I/S -2020-19) .................... 36

Khulna Printing and Packaging Limited (Horizontal Analysis of I/S -2019-18) .................... 37

Khulna Printing and Packaging Limited (Comparison of the 5 year Analysis of I/S) ............ 38

Ratio Analysis ............................................................................................................................. 41

Bashundhara Paper Mills Limited................................................................................................... 45

Vertical Analysis of Balance Sheet ............................................................................................. 45

Bashundhara Paper Mills Limited (Vertical Analysis B/S-2022) ........................................... 45

Bashundhara Paper Mills Limited (Vertical Analysis B/S-2021) ........................................... 47

Bashundhara Paper Mills Limited (Vertical Analysis B/S-2020) ........................................... 49

Bashundhara Paper Mills Limited (Vertical Analysis B/S-2019) ........................................... 51

Bashundhara Paper Mills Limited (Vertical Analysis B/S-2018) ........................................... 53

Bashundhara Paper Mills Limited (Vertical Analysis B/S 5 year comparison) ...................... 55

Horizontal Analysis of Balance Sheet ......................................................................................... 59

Bashundhara Paper Mills Limited (Horizontal Analysis B/S-2022-21) ................................. 59

Bashundhara Paper Mills Limited (Horizontal Analysis B/S-2021-20) ................................. 61

Bashundhara Paper Mills Limited (Horizontal Analysis B/S-2020-19) ................................. 63

Bashundhara Paper Mills Limited (Horizontal Analysis B/S-2019-18) ................................. 65

Bashundhara Paper Mills Limited (Horizontal Analysis B/S-5 year comparison) ................. 67

Vertical Analysis of Income Statement ....................................................................................... 72

Bashundhara Paper Mills Limited (Vertical Analysis I/S-2022) ............................................. 72

Bashundhara Paper Mills Limited (Vertical Analysis I/S-2021) ............................................. 73

Bashundhara Paper Mills Limited (Vertical Analysis I/S-2020) ............................................. 74

 Bashundhara Paper Mills Limited (Vertical Analysis I/S-2019) ............................................. 75

Bashundhara Paper Mills Limited (Vertical Analysis I/S-2018) ............................................. 76

Bashundhara Paper Mills Limited (Vertical Analysis I/S-5 year Comparison) ...................... 77

Horizontal Analysis of Income Statement .................................................................................. 80

Bashundhara Paper Mills Limited (Horizontal Analysis I/S-2022-21) ................................... 80

Bashundhara Paper Mills Limited (Horizontal Analysis I/S-2021-20) ................................... 81

Bashundhara Paper Mills Limited (Horizontal Analysis I/S-2020-19) ................................... 82

Bashundhara Paper Mills Limited (Horizontal Analysis I/S-2019-18) ................................... 83

Bashundhara Paper Mills Limited (Horizontal Analysis I/S-5 year comparison) .................. 84

Ratio Analysis ............................................................................................................................. 87

Intercompany Analysis ........................................................................................................................ 90

Current Ratio Comparison .............................................................................................................. 90

Quick Ratio Comparison ................................................................................................................. 92

Accounts Receivable Turnover ....................................................................................................... 94

Profit Margin ................................................................................................................................... 96

Earning per share (EPS) .................................................................................................................. 98

Times interest earned .................................................................................................................... 100

Debt to asset ratio .......................................................................................................................... 102

Recommendations ............................................................................................................................. 104

References ......................................................................................................................................... 106

 Abstract

This term paper conducts a comprehensive assessment of the financial health of two prominent
paper manufacturing companies: Bashundhara Paper Mills Limited and Khulna Printing &
Packaging Limited. The analysis employs various financial evaluation methods, including
horizontal, vertical, and ratio analyses, to provide a holistic perspective on the financial status,
stability, and operational efficiency of both companies. The primary objective is to ascertain
the financial well-being of these companies and assess how they stack up against their peers
in the rapidly evolving paper production industry.

Furthermore, the paper undertakes an in-depth comparative analysis, both between the two
companies and over multiple fiscal years, enabling a more precise evaluation of their financial
strategies and operational effectiveness. The outcomes of this analysis yield valuable insights
into the strengths, weaknesses, risks, and potential threats faced by these companies. This, in
turn, aids stakeholders, investors, and industry experts in gaining a clearer understanding of
the financial dynamics at play within the paper manufacturing sector. The findings from this
study contribute to a better comprehension of the financial workings of the paper production
industry and have implications for the decision-making and financial planning of both
Bashundhara Paper Mills Limited and Khulna Printing & Packaging Limited as they chart their
future financial endeavors.
 Chapter 1 - Introduction
This analysis delves into the financial standing of two significant players in the paper
manufacturing industry, namely, Bashundhara Paper Mills Limited and Khulna Printing
Packaging Limited, to gauge the health of their finances and their performance.

Objectives:
• To assess the financial health of both companies and determine their growth potential.
• To provide valuable information for individuals contemplating investments in the paper
manufacturing sector.
• To evaluate the financial data of both companies through horizontal, vertical, and ratio
analyses.
• To make a comparative assessment of the financial performance of Bashundhara Paper
Mills Limited and Khulna Printing & Packaging Limited within the context of the paper
manufacturing industry.
• The study will meticulously examine the balance sheets and income statements of both
companies for a specific time period.
• A range of financial analysis tools will be employed to obtain a comprehensive
understanding of the financial well-being of these businesses.

Limitations:
• The analysis primarily relies on quantitative financial data, potentially overlooking
qualitative factors that could influence investment decisions.
• The focus on a specific time frame restricts the scope of the analysis, which might make it
more challenging to evaluate long-term industry trends and transformations.
 Chapter 2 - Methodology
Data Collection and Preparation:
• Obtain the income and balance sheets of both Bashundhara Paper Mills Limited and
Khulna Printing & Packaging Limited for the specified time frame from reliable sources
such as annual reports and financial databases.
• Organize the collected data in a consistent and systematic manner to facilitate analysis.
Scrutinize the data for accuracy and make necessary corrections to rectify any
discrepancies or anomalies.

Horizontal Analysis:
• Calculate the percentage changes in financial data for both companies over the chosen
period to assess whether their financial indicators are trending upward or downward.
• Focus on key financial figures like net income, expenses, and revenue to gain insights into
each company's financial performance over time.

Vertical Analysis:
• Determine the percentage of each line item in relation to a reference figure, typically the
total revenue or total assets, to understand how the financial data are structured.
• Examine vertical relationships within the financial statements to identify significant
changes or trends in how the companies manage their finances.

Ratio Analysis:
• Compute essential financial ratios, including liquidity, profitability, and solvency ratios, to
evaluate the financial and operational health of the companies.
• Use the derived ratios to assess the companies' ability to meet short- and long-term
obligations, generate profits, and efficiently utilize their resources.
Interpretation and Comparison:
• Identify areas where Bashundhara Paper Mills Limited and Khulna Printing & Packaging
Limited excel and where they could improve by comparing the results of horizontal,
vertical, and ratio analyses.
• Conduct a comprehensive assessment of the companies' financial standing within the paper
manufacturing industry, considering industry standards and benchmarks.
Interpretation and Conclusion:
• Analyze the implications of the findings to draw meaningful conclusions about the
financial health and investment potential of both companies.
 Chapter 3 - Findings & Analysis

Khulna Printing and Packaging Limited

Vertical Analysis of Balance Sheet

Khulna Printing and Packaging Limited (Vertical Analysis of B/S -2022)

Particulars 2022 % OF ASSET
Property, Plant & Equipment 254,412,427.00 55.71152519
Investment In Shares 33,500,000.00 7.33586844
Total Non-current Asset 287,912,427.00 63.04739363
Investment In FDR 50,860,924.00 11.1375835
Inventories 241,500.00 0.052883947
Interest Receivable on FDR Goods In Transit 0
0
Trade & other Receivables 114,716,939.00 25.12084694
Other receivables 0
Advances, Deposits & Marginal A/C. 258,207.00 0.056542465
Cash and Cash Equivalents 2,670,319.00 0.584749519
Total Current Asset 168,747,889.00 36.95260637
TOTAL ASSETS 456,660,316.00 100
Issued, subscribed & paid up capital 730,400,000.00 159.9438301
Revaluation Reserve & Surplus 128,007,991.00 28.03133675
Retained Earnings -994,582,386.00 -217.7947921
Total Shareholders• Equity -136,174,395.00 -29.81962527
Long Term Loan 315,532,779.00 69.09573001
Deferred Tax Liabilities 33,744,082.00 7.389317797
Total Non-current Liabilities Loan from Bank 349,276,861.00 76.48504781
Current Portion of Long-Term Loan 236,164,913.00 51.71566364
Unclaimed dividend 332,994.00 0.072919408
Payables & Advances 596,984.00 0.130728241
provision for Expenses Accrued Expenses 1,663,686.00 0.364315869
Provision for Taxation/Current Tax Liabilities 4,799,273.00 1.050950309
Total Current Liabilities 243,557,850.00 53.33457747
TOTAL EQUITY AND LIABILITY 456,660,316.00 100
NAV Per Share (With Revaluation surplus) -1.86 -4.07305E-07
NAV Per Share (Without Revaluation surplus) -0.11 -2.40879E-08
 Khulna Printing and Packaging Limited (Vertical Analysis of B/S -2021)

Particulars 2021 % OF ASSET

Property, Plant & Equipment 257,083,803.00 35.3986118
Investment In Shares 33,500,000.00 4.612711814
Total Non-current Asset 290,583,803.00 40.01132362
Investment In FDR 50,925,026.00 7.012014002
Inventories 6,388,025.00 0.879585623
Interest Receivable on FDR Goods In Transit 0
0
Trade & other Receivables 301,404,409.00 41.50124413
Other receivables 1,445,234.00 0.198998446
Advances, Deposits & Marginal A/C. 5,893,173.00 0.811448022
Cash and Cash Equivalents 69,614,242.00 9.585386165
Total Current Asset 435,670,109.00 59.98867638
TOTAL ASSETS 726,253,912.00 100
Issued, subscribed & paid up capital 730,400,000.00 100.5708868
Revaluation Reserve & Surplus 129,069,752.00 17.77198716
Retained Earnings -769,331,732.00 -105.9315095
Total Shareholders• Equity 90,138,020.00 12.41136447
Long Term Loan 298,020,923.00 41.03536216
Deferred Tax Liabilities 33,840,594.00 4.659609186
Total Non-current Liabilities Loan from Bank 331,861,517.00 45.69497135
Current Portion of Long Term Loan 235,331,236.00 32.40343799
Unclaimed dividend 1,047,786.00 0.144272682
Payables & Advances 2,317,114.00 0.319050123
provision for Expenses Accrued Expenses 60,784,994.00 8.369661491
Provision for Taxation/Current Tax Liabilities 4,773,244.00 0.657241761
Total Current Liabilities 304,254,374.00 41.89366404
TOTAL EQUITY AND LIABILITY 726,253,912.00 100
NAV Per Share (With Revaluation surplus) 1.23 1.69362E-07
NAV Per Share (Without Revaluation surplus) -0.53 -7.29772E-08
 Khulna Printing and Packaging Limited (Vertical Analysis of B/S -2020)

Particulars 2020 % OF ASSET

Property, Plant & Equipment 268,366,671.00 18.96024008
Investment In Shares 33,500,000.00 2.366791823
Total Non-current Asset 301,866,671.00 21.3270319
Investment In FDR 12,887,421.00 0.910502766
Inventories 468,602,262.00 33.10698514
Interest Receivable on FDR Goods In Transit 180,549,693.00 12.75592648
0
Trade & other Receivables 324,576,541.00 22.93149562
Other receivables 143,450.00 0.010134815
Advances,Deposits & Maginal A/C. 35,792,230.00 2.528739024
Cash and Cash Equivalents 90,999,838.00 6.429184254
Total Current Asset 1,113,551,435.00 78.6729681
TOTAL ASSETS 1,415,418,106.00 100
Issued,subscribed & paid up capital 730,400,000.00 51.6031268
Revaluation Reserve & Surplus 133,540,325.00 9.434691024
Retained Earnings 6,277,091.00 0.443479631
Total Shareloders• Equity 870,217,416.00 61.48129746
Long Term Loan 285,372,931.00 20.16174089
Deferred Tax Liabilities 37,720,217.00 2.664952274
Total Non-current Liabilities Loan from Bank 323,093,148.00 22.82669316
Current Portion of Long Term Loan 210,529,775.00 14.87403433
Unclaimed dividend 0
Payables & Advances 3,212,580.00 0.22697039
provision for ExpensesJAccrued Expenses 836,119.00 0.059072227
Provision for Taxation/Current Tax Liabilities 7,529,068.00 0.531932435
Total Current Liabilities 222,107,542.00 15.69200938
TOTAL EQUITY AND LIABILITY 1,415,418,106.00 100
NAV Per Share (With Revaluation surplus) 10.09 7.12864E-07
NAV Per Share (Without Revaluation surplus) 0
 Khulna Printing and Packaging Limited (Vertical Analysis of B/S -2019)

Particulars 2019 % OF ASSET

Property, Plant & Equipment 280,284,850.00 19.6363327
Investment In Shares 33,500,000 2.346959336
Total Non-current Asset 313,784,850.00 21.98329203
Investment In FDR 18,733,326.00 1.312428488
Inventories 516,031,100.00 36.15235843
Interest Receivable on FDR Goods In Transit 146,409,839 10.25725189
0
Trade & other Receivables 282,072,221.00 19.76155321
Other receivables 7,644,636.00 0.535571637
Advances, Deposits & Maginal A/C. 118,791,433 8.322348139
Cash and Cash Equivalents 23,861,395.00 1.671693246
Total Current Asset 1,113,593,950.00 78.01670797
TOTAL ASSETS 1,427,378,800.00 100
Issued, subscribed & paid up capital 730,400,000 51.17071936
Revaluation Reserve & Surplus 138,246,192.00 9.685319132
Retained Earnings 31,962,365.00 2.239234953
Total Shareholders• Equity 900,608,557 63.09527345
Long Term Loan 262,003,238.00 18.35555061
Deferred Tax Liabilities 36,386,818.00 2.549205439
Total Non-current Liabilities Loan from Bank 298,390,056.00 20.90475605
Current Portion of Long Term Loan 221,319,628.00 15.50531842
Unclaimed dividend 0
Payables & Advances 2,921,364.00 0.204666344
provision for Expenses Accrued Expenses 1,215,500 0.085156092
Provision for Taxation/Current Tax Liabilities 2,923,695.00 0.20482965
Total Current Liabilities 228,380,187 15.99997051
TOTAL EQUITY AND LIABILITY 1,427,378,800 100
NAV Per Share (With Revaluation surplus) 12.33 8.63821E-07
NAV Per Share (Without Revaluation surplus) 10.44 7.31411E-07
 Khulna Printing and Packaging Limited (Vertical Analysis of B/S -2018)

Particulars 2018 % OF ASSET

Property, Plant & Equipment 292,879,580.00 17.88629661
Investment In Shares 33,500,000.00 2.045861088
Total Non-current Asset 326,379,580.00 19.9321577
Investment In FDR 18,574,077 1.134327803
Inventories 354,400,000.00 21.6433782
Interest Receivable on FDR Goods In Transit 138,747,608 8.473383054
0
Trade & other Receivables 271,671,882.00 16.5911323
Other receivables 202,465,239.00 12.36464938
Advances, Deposits & Marginal A/C. 321,957,821.00 19.66211875
Cash and Cash Equivalents 3,256,120.00 0.198852812
Total Current Asset 1,311,072,747.00 80.0678423
TOTAL ASSETS 1,637,452,327.00 100
Issued, subscribed & paid up capital 730,400,000.00 44.60587878
Revaluation Reserve & Surplus 143,199,736.00 8.74527665
Retained Earnings 198,203,438.00 12.10437915
Total Shareholders• Equity 1,071,803,174.00 65.45553457
Long Term Loan 129,688,007.00 7.92010887
Deferred Tax Liabilities 34,153,701.00 2.085782922
Total Non-current Liabilities Loan from Bank 163,841,708.00 10.00589179
Current Portion of Long Term Loan 302,605,350.00 18.48025405
Unclaimed dividend 0
Payables & Advances 82,721,645.00 5.051850587
provision for Expenses Accrued Expenses 15,311,895.00 0.935104781
Provision for Taxation/Current Tax Liabilities 1,168,555 0.071364215
Total Current Liabilities 401,807,445.00 24.53857364
TOTAL EQUITY AND LIABILITY 1,637,452,327.00 100
NAV Per Share (With Revaluation surplus) 14.67 8.95904E-07
NAV Per Share (Without Revaluation surplus) 12.71 7.76206E-07
 Khulna Printing and Packaging Limited (comparative Vertical Analysis of B/S)

Particulars 2022% 2021% 2020% 2019% 2018%

Property, Plant & Equipment 55.71 35.40 18.96 19.64 17.89
Investment In Shares 7.34 4.61 2.37 2.35 2.05
Total Non-current Asset 63.05 40.01 21.33 21.98 19.93
Investment In FDR 11.14 7.01 0.91 1.31 1.13
Inventories 0.05 0.88 33.11 36.15 21.64
Interest Receivable on FDR
Goods In Transit 0.00 0.00 12.76 10.26 8.47
Trade & other Receivables 0.00 0.00 0.00 0.00 0.00
25.12 41.50 22.93 19.76 16.59
Other receivables 0.00 0.20 0.01 0.54 12.36
Advances, Deposits & Marginal
A/C. 0.06 0.81 2.53 8.32 19.66
Cash and Cash Equivalents 0.58 9.59 6.43 1.67 0.20
Total Current Asset 36.95 59.99 78.67 78.02 80.07
TOTAL ASSETS 100.00 100.00 100.00 100.00 100.00
Issued, subscribed & paid up
capital 159.94 100.57 51.60 51.17 44.61
Revaluation Reserve & Surplus 28.03 17.77 9.43 9.69 8.75
Retained Earnings -217.79 -105.93 0.44 2.24 12.10
Total Shareholders• Equity -29.82 12.41 61.48 63.10 65.46
Long Term Loan 69.10 41.04 20.16 18.36 7.92
Deferred Tax Liabilities 7.39 4.66 2.66 2.55 2.09
Total Non-current Liabilities
Loan from Bank 76.49 45.69 22.83 20.90 10.01
Current Portion of Long Term
Loan 51.72 32.40 14.87 15.51 18.48
Unclaimed dividend 0.07 0.14 0.00 0.00 0.00
Payables & Advances 0.13 0.32 0.23 0.20 5.05
provision for ExpensesJAccrued
Expenses 0.36 8.37 0.06 0.09 0.94
Provision for Taxation/Current
Tax Liabilities 1.05 0.66 0.53 0.20 0.07
Total Current Liabilities 53.33 41.89 15.69 16.00 24.54
TOTAL EQUITY AND
LIABILITY 100.00 100.00 100.00 100.00 100.00
NAV Per Share (With -
Revaluation surplus) 0.0000004 0.0000002 0.0000007 0.0000009 0.0000009
NAV Per Share (Without -
Revaluation surplus) 0.0000000 0.0000001 0.0000000 0.0000007 0.0000008
Vertical analysis is a financial analysis technique that involves expressing each line item in a
company's financial statements as a percentage of a base item. In this case, you have provided
a vertical analysis for Khulna Printing and Packaging Limited over a five-year period. Let's
analyze and provide a detailed explanation of the key findings:

• Property, Plant & Equipment: The percentage of property, plant, and equipment in total
assets has been steadily increasing over the years. In 2018, it accounted for 17.89% of total
assets, and by 2022, it increased to 55.71%. This suggests that the company has been
investing more in its physical assets over the years.

• Investment In Shares: The proportion of investment in shares has also grown over the five
years, from 2.05% in 2018 to 7.34% in 2022. This indicates that the company is allocating
a larger portion of its resources to investments in shares.

• Total Non-current Assets: The category of non-current assets, which includes property,
plant & equipment and investment in shares, has significantly increased its share of total
assets. In 2018, it accounted for 19.93%, and by 2022, it represents 63.05% of total assets.
This shows a clear shift towards non-current assets.

• Investment In FDR: The percentage of investment in fixed deposit receipts (FDR) has seen
a steady rise from 1.13% in 2018 to 11.14% in 2022. This indicates a substantial increase
in investments in fixed income instruments.

• Inventories: The proportion of inventories has decreased dramatically over the years. In
2018, it represented 21.64% of total assets, but by 2022, it's just 0.05%. This may imply
that the company is managing its inventory more efficiently or has shifted to a business
model with lower inventory requirements.
• Trade & Other Receivables: In 2020, trade and other receivables were relatively high at
22.93% of total assets, but they decreased to 0.00% in the following years. This suggests a
significant change in the company's accounts receivable management.

• Cash and Cash Equivalents: The percentage of cash and cash equivalents was relatively
low in 2018 (0.20%), but it increased to 9.59% in 2021 and then slightly decreased to
0.58% in 2022. This indicates fluctuations in the company's cash position.

• Total Current Assets: Current assets, which include inventories, receivables, and cash, have
decreased from 80.07% of total assets in 2018 to 36.95% in 2022. This suggests a shift
away from short-term assets towards long-term assets.

• Shareholders' Equity: Shareholders' equity has been fluctuating over the years. It was
negative in 2019 and 2020 but turned positive in 2021 and 2022. The fluctuations might be
due to changes in the company's financial performance.

• Long Term Loan: The company's reliance on long-term loans has significantly increased,
going from 7.92% in 2018 to 69.10% in 2022. This indicates a growing dependence on
debt financing for long-term investments.

• Current Liabilities: Current liabilities were high in 2018 (24.54%) but decreased to 15.69%
in 2022. This suggests that the company might be managing its short-term obligations more
effectively.

• Net Asset Value (NAV) per Share: The NAV per share fluctuated, sometimes being
negative. This indicates that the company's financial performance has been volatile,
potentially impacting the value of its shares.
 Horizontal Analysis of Balance Sheet
Khulna Printing and Packaging Limited (Horizontal Analysis of B/S-2022-21)

Particulars 2022 2021 % change

Property, Plant & Equipment 254,412,427.00 257,083,803.00 -1.0391071
Investment In Shares 33,500,000.00 33,500,000.00 0
Total Non-current Asset 287,912,427.00 290,583,803.00 -0.9193135
Investment In FDR 50,860,924.00 50,925,026.00 -0.1258752
Inventories 241,500.00 6,388,025.00 -96.219489
Interest Receivable on FDR Goods In
Transit #DIV/0!
Trade & other Receivables 114,716,939.00 301,404,409.00 -61.939197
Other receivables 1,445,234.00 -100
Advances,Deposits & Maginal A/C. 258,207.00 5,893,173.00 -95.61854
Cash and Cash Equivalents 2,670,319.00 69,614,242.00 -96.16412
Total Current Asset 168,747,889.00 435,670,109.00 -61.267049
TOTAL ASSETS 456,660,316.00 726,253,912.00 -37.121121
Issued,subscribed & paid up capital 730,400,000.00 730,400,000.00 0
Revaluation Reserve & Surplus 128,007,991.00 129,069,752.00 -0.8226257
-
Retained Earnings -994,582,386.00 769,331,732.00 29.2787421
Total Shareloders• Equity -136,174,395.00 90,138,020.00 -251.0732
Long Term Loan 315,532,779.00 298,020,923.00 5.87604918
Deferred Tax Liabilities 33,744,082.00 33,840,594.00 -0.2851959
Total Non-current Liabilities Loan from
Bank 349,276,861.00 331,861,517.00 5.24777448
Current Portion of Long Term Loan 236,164,913.00 235,331,236.00 0.35425684
Unclaimed dividend 332,994.00 1,047,786.00 -68.219274
Payables & Advances 596,984.00 2,317,114.00 -74.235881
provision for ExpensesJAccrued
Expenses 1,663,686.00 60,784,994.00 -97.262999
Provision for Taxation/Current Tax
Liabilities 4,799,273.00 4,773,244.00 0.54531048
Total Current Liabilities 243,557,850.00 304,254,374.00 -19.949269
TOTAL EQUITY AND LIABILITY 456,660,316.00 726,253,912.00 -37.121121
NAV Per Share (With Revaluation
surplus) -1.86 1.23 -251.21951
NAV Per Share (Without Revaluation
surplus) -0.11 -0.53 -79.245283
 Khulna Printing and Packaging Limited (Horizontal Analysis of B/S-2021-20)

Particulars 2021 2020 % change

Property, Plant & Equipment 257,083,803.00 268,366,671.00 -4.20427319
Investment In Shares 33,500,000.00 33,500,000.00 0
Total Non-current Asset 290,583,803.00 301,866,671.00 -3.73769915
Investment In FDR 50,925,026.00 12,887,421.00 295.1529635
Inventories 6,388,025.00 468,602,262.00 -98.6367917
Interest Receivable on FDR Goods In
Transit 180,549,693.00 -100
Trade & other Receivables 301,404,409.00 324,576,541.00 -7.13918878
Other receivables 1,445,234.00 143,450.00 907.4827466
Advances,Deposits & Maginal A/C. 5,893,173.00 35,792,230.00 -83.5350494
Cash and Cash Equivalents 69,614,242.00 90,999,838.00 -23.5006968
Total Current Asset 435,670,109.00 1,113,551,435.00 -60.8756187
TOTAL ASSETS 726,253,912.00 1,415,418,106.00 -48.6897964
Issued,subscribed & paid up capital 730,400,000.00 730,400,000.00 0
Revaluation Reserve & Surplus 129,069,752.00 133,540,325.00 -3.3477326
Retained Earnings -769,331,732.00 6,277,091.00 -12356.1826
Total Shareloders• Equity 90,138,020.00 870,217,416.00 -89.6418966
Long Term Loan 298,020,923.00 285,372,931.00 4.432092405
Deferred Tax Liabilities 33,840,594.00 37,720,217.00 -10.2852616
Total Non-current Liabilities Loan from
Bank 331,861,517.00 323,093,148.00 2.713882685
Current Portion of Long Term Loan 235,331,236.00 210,529,775.00 11.78050041
Unclaimed dividend 1,047,786.00 #DIV/0!
Payables & Advances 2,317,114.00 3,212,580.00 -27.8737339
provision for ExpensesJAccrued Expenses 60,784,994.00 836,119.00 7169.897467
Provision for Taxation/Current Tax
Liabilities 4,773,244.00 7,529,068.00 -36.6024586
Total Current Liabilities 304,254,374.00 222,107,542.00 36.985161
TOTAL EQUITY AND LIABILITY 726,253,912.00 1,415,418,106.00 -48.6897964
NAV Per Share (With Revaluation surplus) 1.23 10.09 -87.8097126
NAV Per Share (Without Revaluation
surplus) -0.53 #DIV/0!
 Khulna Printing and Packaging Limited (Horizontal Analysis of B/S-2020-19)

Particulars 2020 2019 % change

Property, Plant & Equipment 268,366,671.00 280,284,850.00 -4.2521667
Investment In Shares 33,500,000.00 33,500,000 0
Total Non-current Asset 301,866,671.00 313,784,850.00 -3.7982009
Investment In FDR 12,887,421.00 18,733,326.00 -31.205911
Inventories 468,602,262.00 516,031,100.00 -9.1910813
Interest Receivable on FDR Goods In
Transit 180,549,693.00 146,409,839 23.3180053
Trade & other Receivables 324,576,541.00 282,072,221.00 15.0685948
Other receivables 143,450.00 7,644,636.00 -98.123521
Advances,Deposits & Maginal A/C. 35,792,230.00 118,791,433 -69.869687
Cash and Cash Equivalents 90,999,838.00 23,861,395.00 281.368474
Total Current Asset 1,113,551,435.00 1,113,593,950.00 -0.0038178
TOTAL ASSETS 1,415,418,106.00 1,427,378,800.00 -0.8379481
Issued,subscribed & paid up capital 730,400,000.00 730,400,000 0
Revaluation Reserve & Surplus 133,540,325.00 138,246,192.00 -3.4039759
Retained Earnings 6,277,091.00 31,962,365.00 -80.360993
Total Shareloders• Equity 870,217,416.00 900,608,557 -3.3745117
Long Term Loan 285,372,931.00 262,003,238.00 8.91961992
Deferred Tax Liabilities 37,720,217.00 36,386,818.00 3.66451114
Total Non-current Liabilities Loan from
Bank 323,093,148.00 298,390,056.00 8.27879197
Current Portion of Long Term Loan 210,529,775.00 221,319,628.00 -4.8752355
Unclaimed dividend #DIV/0!
Payables & Advances 3,212,580.00 2,921,364.00 9.96849417
provision for ExpensesJAccrued Expenses 836,119.00 1,215,500 -31.211929
Provision for Taxation/Current Tax
Liabilities 7,529,068.00 2,923,695.00 157.518927
Total Current Liabilities 222,107,542.00 228,380,187 -2.7465802
TOTAL EQUITY AND LIABILITY 1,415,418,106.00 1,427,378,800 -0.8379481
NAV Per Share (With Revaluation surplus) 10.09 12.33 -18.167072
NAV Per Share (Without Revaluation
surplus) 10.44 -100
 Khulna Printing and Packaging Limited (Horizontal Analysis of B/S-2019-18)

Particulars 2019 2018 % change

Property, Plant & Equipment 280,284,850.00 292,879,580.00 -4.30031
Investment In Shares 33,500,000 33,500,000.00 0
Total Non-current Asset 313,784,850.00 326,379,580.00 -3.858921
Investment In FDR 18,733,326.00 18,574,077 0.8573723
Inventories 516,031,100.00 354,400,000.00 45.60697
Interest Receivable on FDR Goods In
Transit 146,409,839 138,747,608 5.5224239
Trade & other Receivables 282,072,221.00 271,671,882.00 3.8282722
Other receivables 7,644,636.00 202,465,239.00 -96.22422
Advances,Deposits & Maginal A/C. 118,791,433 321,957,821.00 -63.10342
Cash and Cash Equivalents 23,861,395.00 3,256,120.00 632.81682
Total Current Asset 1,113,593,950.00 1,311,072,747.00 -15.06238
TOTAL ASSETS 1,427,378,800.00 1,637,452,327.00 -12.82929
Issued,subscribed & paid up capital 730,400,000 730,400,000.00 0
Revaluation Reserve & Surplus 138,246,192.00 143,199,736.00 -3.459185
Retained Earnings 31,962,365.00 198,203,438.00 -83.87396
Total Shareloders• Equity 900,608,557 1,071,803,174.00 -15.97258
Long Term Loan 262,003,238.00 129,688,007.00 102.0258
Deferred Tax Liabilities 36,386,818.00 34,153,701.00 6.5384334
Total Non-current Liabilities Loan from
Bank 298,390,056.00 163,841,708.00 82.120938
Current Portion of Long Term Loan 221,319,628.00 302,605,350.00 -26.86196
Unclaimed dividend #DIV/0!
Payables & Advances 2,921,364.00 82,721,645.00 -96.46844
provision for ExpensesJAccrued Expenses 1,215,500 15,311,895.00 -92.06173
Provision for Taxation/Current Tax
Liabilities 2,923,695.00 1,168,555 150.19747
Total Current Liabilities 228,380,187 401,807,445.00 -43.16178
TOTAL EQUITY AND LIABILITY 1,427,378,800 1,637,452,327.00 -12.82929
NAV Per Share (With Revaluation surplus) 12.33 14.67 -15.95092
NAV Per Share (Without Revaluation
surplus) 10.44 12.71 -17.85995
 Khulna Printing and Packaging Limited (Horizontal Analysis-Comparative of B/S)

2022- 2021- 2029- 2019-

Particulars 21% 20% 19% 18%
Property, Plant & Equipment -1.0 -4.2 -4.3 -4.3
Investment In Shares 0.0 0.0 0.0 0.0
Total Non-current Asset -0.9 -3.7 -3.8 -3.9
Investment In FDR -0.1 295.2 -31.2 0.9
Inventories -96.2 -98.6 -9.2 45.6
Interest Receivable on FDR Goods In Transit #DIV/0! -100.0 23.3 5.5
Trade & other Receivables -61.9 -7.1 15.1 3.8
Other receivables -100.0 907.5 -98.1 -96.2
Advances,Deposits & Maginal A/C. -95.6 -83.5 -69.9 -63.1
Cash and Cash Equivalents -96.2 -23.5 281.4 632.8
Total Current Asset -61.3 -60.9 0.0 -15.1
TOTAL ASSETS -37.1 -48.7 -0.8 -12.8
Issued,subscribed & paid up capital 0.0 0.0 0.0 0.0
Revaluation Reserve & Surplus -0.8 -3.3 -3.4 -3.5
Retained Earnings 29.3 -12356.2 -80.4 -83.9
Total Shareloders• Equity -251.1 -89.6 -3.4 -16.0
Long Term Loan 5.9 4.4 8.9 102.0
Deferred Tax Liabilities -0.3 -10.3 3.7 6.5
Total Non-current Liabilities Loan from Bank 5.2 2.7 8.3 82.1
Current Portion of Long Term Loan 0.4 11.8 -4.9 -26.9
Unclaimed dividend -68.2 #DIV/0! #DIV/0! #DIV/0!
Payables & Advances -74.2 -27.9 10.0 -96.5
provision for ExpensesJAccrued Expenses -97.3 7169.9 -31.2 -92.1
Provision for Taxation/Current Tax Liabilities 0.5 -36.6 157.5 150.2
Total Current Liabilities -19.9 37.0 -2.7 -43.2
TOTAL EQUITY AND LIABILITY -37.1 -48.7 -0.8 -12.8
NAV Per Share (With Revaluation surplus) -251.2 -87.8 -18.2 -16.0
NAV Per Share (Without Revaluation surplus) -79.2 -100.0 -17.9
 In the five-year horizontal analysis of Khulna Printing and Packaging Limited, we can observe
significant changes in various financial items. Let's go through each category and provide a
detailed explanation of the findings:

• Property, Plant & Equipment:

The property, plant, and equipment category has experienced a slight decrease in each of the five
years. In 2022, it decreased by 1.0% compared to 2021. This decrease suggests that the company
might be selling or depreciating its physical assets over time.

• Investment In Shares:
This category has remained unchanged at 0.0% for all five years. It appears that the company has
not made any new investments in shares during this period.

• Total Non-current Asset:

The total non-current assets have decreased consistently over the years. In 2022, they decreased
by 0.9% compared to 2021. This decline may indicate a deliberate strategy to reduce long-term
investments or assets.

• Investment In FDR:
The investment in fixed deposit receipts (FDR) category shows substantial fluctuations. In 2022,
it decreased by 0.1% compared to 2021 after a significant increase in 2021. The high volatility in
this category may reflect the company's changing investment strategy.

• Inventories:
The company's inventory levels have seen drastic reductions in each year. In 2022, the reduction
was 96.2% compared to 2021. Such a sharp decline may be indicative of improved inventory
management or changes in the business model, such as adopting a just-in-time approach.
 • Interest Receivable on FDR Goods In Transit:
There is missing data for 2019, and the category shows high volatility. In 2021, it decreased by
100%, which may be an anomaly or data-related issue.

• Trade & other Receivables:

Trade and other receivables have fluctuated, but overall, they have decreased in 2022 by 61.9%
compared to 2021. This suggests that the company might be collecting receivables more efficiently
or experiencing a reduction in sales on credit terms.

• Other Receivables:
This category has been highly volatile. In 2022, it decreased by 100%, indicating a substantial
reduction in other receivables. This may be due to the company's efforts to clear outstanding debts
or an adjustment in accounting practices.

• Advances, Deposits & Marginal A/C.:

This category has also seen substantial reductions, with a decrease of 95.6% in 2022 compared to
2021. This might suggest changes in advance payments or deposit practices.

• Cash and Cash Equivalents:

There was a significant decrease in cash and cash equivalents in 2022, with a reduction of 96.2%
compared to 2021. The company's cash position has been substantially impacted, possibly due to
investment activities or other financial decisions.

• Total Current Asset:

Total current assets have decreased by 61.3% in 2022 compared to 2021. This is primarily due to
the drastic reductions in inventories and cash and cash equivalents.

• Total Assets:
The total assets have shown a consistent decline over the years, with a 37.1% decrease in 2022
compared to 2021. This indicates a reduction in the company's overall asset base.
 • Retained Earnings:
The retained earnings have seen significant fluctuations. In 2021, there was a massive decrease,
and in 2022, there was a substantial increase. Such variations in retained earnings could be due to
factors like profitability, dividends, or accounting adjustments.

• Total Shareholders' Equity:

The equity has also fluctuated, with a significant decrease of 251.1% in 2022 compared to 2021.
This suggests significant changes in the company's financial structure.

• Long Term Loan:

Long-term loans have increased, with a 5.9% rise in 2022 compared to 2021. This might indicate
increased reliance on debt financing for long-term investments.

• Total Non-current Liabilities Loan from Bank:

Non-current liabilities have shown consistent growth, with a 5.2% increase in 2022 compared to
2021. This implies a growing reliance on bank loans for long-term financing.

• Current Liabilities:
Current liabilities have fluctuated, but they decreased by 19.9% in 2022 compared to 2021. This
may be attributed to improved management of short-term obligations.

In summary, the horizontal analysis reveals a company experiencing significant fluctuations and
changes in various financial categories over the five-year period. The company appears to have
shifted its focus and financial strategy, resulting in substantial decreases in assets, particularly
in inventories and cash. It's important to note that some of the percentage changes are
exceptionally high or even negative, which may require further investigation and verification
of data to understand the underlying causes.
 Vertical Analysis of Income Statement
Khulna Printing and Packaging Limited (Vertical Analysis of I/S -2022)

Particulars 2022 % OF SALES

Net Turnover 1,427,174.00 100

Costs of Sales 24,623,657.00 1725.343721

Gross Profit -23,196,483.00 -1625.34372

General and Administrative Expenses 178,424,038.00 12501.91203

Selling Expenses 16,452.00 1.152767637

Profit from Operation -201,636,973.00 -14128.4085

Other income 2,910,939.00 203.9652488

Net profit/ (Loss) before Finance cost -198,726,034.00 -13924.4433

Finance cost 27,656,865.00 1937.87618

Net profit/(loss) after financial expenses -226,382,899.00 -15862.3195

Net Profit Before Tax -226,382,899.00 -15862.3195

Current Tax -26,029.00 -1.82381405

Deferred Tax 96,512.00 6.762455034

Net profit/ (Loss) after tax -226,312,416.00 -15857.3808

Earnings per share (Fully diluted basis) -3.1 -0.00021721

 Khulna Printing and Packaging Limited (Vertical Analysis of I/S -2021)

Particulars 2021 % OF SALES

Net Turnover 520,771,106.00 100

Costs of Sales 855,770,596.00 164.3275877

Gross Profit -334,999,490.00 -64.3275877

General and Administrative Expenses 66,272,277.00 12.72579762

Selling Expenses 1,056,056.00 0.20278698

Profit from Operation -402,327,823.00 -77.2561723

Other income 2,120,540.00 0.40719233

Net profit/ (Loss) before Finance cost -400,207,283.00 -76.84898

Finance cost 47,578,848.00 9.136230381

Net profit/(loss) after financial expenses -447,786,131.00 -85.9852104

Net Profit Before Tax -447,786,131.00 -85.9852104

Current Tax -3,137,350.00 -0.60244318

Deferred Tax 3,879,623.00 0.744976623

Net profit/ (Loss) after tax -447,043,858.00 -85.8426769

Earnings per share (Fully diluted basis) -6.12 -1.1752E-06

 Khulna Printing and Packaging Limited (Vertical Analysis of I/S -2020)

Particulars 2020 % OF SALES

Net Turnover 1,080,613,612.00 100

Costs of Sales 1,019,906,742.00 94.38218533

Gross Profit 60,706,870.00 5.617814668

General and Administrative Expenses 10,175,078.00 0.941601872

Selling Expenses 3,230,000.00 0.298904249

Profit from Operation 47,301,792.00 4.377308547

Other income 1,384,117.00 0.128086208

Net profit/ (Loss) before Finance cost 48,685,909.00 4.505394755

Finance cost 66,851,664.00 6.186453998

Net profit/(loss) after financial expenses -18,165,755.00 -1.68105924

Net Profit Before Tax -18,165,755.00 -1.68105924

Current Tax 6,491,986.00 0.600768483

Deferred Tax 1,333,399.00 0.123392764

Net profit/ (Loss) after tax -10,340,370.00 -0.956898

Earnings per share (Fully diluted basis) -0.36 -3.3314E-08

 Khulna Printing and Packaging Limited (Vertical Analysis of I/S -2019)

Particulars 2019 % OF SALES

Net Turnover 313,122,186.00 100

Costs of Sales 392,394,015.00 125.3165801

Gross Profit -79,271,829.00 -25.31658009

General and Administrative Expenses 5,911,645.00 1.887967466

Selling Expenses 4,014,390.00 1.28205224

Profit from Operation -89,197,864.00 -28.4865998

Other income 1,313,531.00 0.419494708

Net profit/ (Loss) before Finance cost -87,884,333.00 -28.06710509

Finance cost 79,190,553.00 25.29062345

Net profit/(loss) after financial expenses -167,074,886.00 -53.35772854

Net Profit Before Tax -167,074,886.00 -53.35772854

Current Tax -1,886,614.00 -0.602516872

Deferred Tax -2,233,117.00 -0.713177507

Net profit/ (Loss) after tax -171,194,617.00 -54.67342292

Earnings per share (Fully diluted basis) -2.34 -7.47312E-07

Khulna Printing and Packaging Limited (Vertical Analysis Commparison of I/S -4 years)

Particulars 2022% 2021% 2020% 2019%

Net Turnover 100.00 100.00 100.00 100.00

Costs of Sales 1725.34 164.33 94.38 125.32

Gross Profit -1625.34 -64.33 5.62 -25.32

General and Administrative
Expenses 12501.91 12.73 0.94 1.89

Selling Expenses 1.15 0.20 0.30 1.28

Profit from Operation -14128.41 -77.26 4.38 -28.49

Other income 203.97 0.41 0.13 0.42

Net profit/ (Loss) before Finance
cost -13924.44 -76.85 4.51 -28.07

Finance cost 1937.88 9.14 6.19 25.29

Net profit/(loss) after financial
expenses -15862.32 -85.99 -1.68 -53.36

Net Profit Before Tax -15862.32 -85.99 -1.68 -53.36

Current Tax -1.82 -0.60 0.60 -0.60

Deferred Tax 6.76 0.74 0.12 -0.71

Net profit/ (Loss) after tax -15857.38 -85.84 -0.96 -54.67

Earnings per share (Fully diluted
basis) -0.00021721 -0.00000118 -0.00000003 -0.00000075
The vertical analysis of Khulna Printing and Packaging Limited's income statement over five years
demonstrates notable shifts in various line items expressed as percentages of net turnover. Let's
delve into these variations and provide a comprehensive explanation of the observations:

• Net Turnover:
Net turnover, or total revenue, is consistently set at 100% for each year as the foundational
reference point for the vertical analysis. It signifies the total income generated by the company in
each respective year.

• Cost of Sales:
The cost of sales, when viewed as a percentage of net turnover, has exhibited substantial
fluctuations. In 2022, it soared to an alarming 1725.34% of net turnover. This suggests that the
company's expenses related to goods sold far exceeded its revenue, raising concerns. Potential
factors contributing to this discrepancy could include poor cost management or anomalies in
accounting practices.

• Gross Profit:
The gross profit remains negative throughout the five-year period, indicating losses in each year.
In 2020, there was a slight improvement as it reached 5.62% of net turnover, but it regressed to a
significantly negative percentage in 2022. This implies that the company has struggled to cover its
cost of goods sold and failed to generate a profit from its core operations.

• General and Administrative Expenses:

General and administrative expenses have consistently been significant relative to net turnover,
with a remarkable surge in 2022, where they represented 12501.91% of net turnover. This
underscores a substantial increase in the company's administrative costs compared to previous
years, potentially contributing to the negative gross profit.
 • Selling Expenses:
Selling expenses have remained relatively low in each year as a percentage of net turnover, with a
marginal increase to 1.15% in 2022.

• Profit from Operation:

Profit from operations has consistently shown negative values, with a substantial decline in 2022.
It represents -14128.41% of net turnover, signaling that the company's fundamental business
operations have incurred substantial losses.

• Other Income:
Other income remains relatively modest, with a slight uptick in 2022 to 203.97% of net turnover.

• Net Profit Before Tax:

Net profit before tax consistently reflects negative figures, with a pronounced dip in 2022. It
signifies -15862.32% of net turnover, highlighting the persistent financial challenges faced by the
company.

• Current Tax and Deferred Tax:

Current tax and deferred tax items have consistently been relatively low in each year when
compared to net turnover.

• Net Profit After Tax:

Net profit after tax has consistently been negative for all years, with a substantial decrease in 2022.
It represents -15857.38% of net turnover, indicating that the company is incurring significant
losses even after accounting for tax-related items.

• Earnings per Share (Fully Diluted Basis):

Earnings per share (EPS) has consistently shown negative values, with a significant decline in
2022. The negative EPS implies that the company's financial performance is adversely impacting
the value for its shareholders.
In summary, the vertical analysis of Khulna Printing and Packaging Limited's income statement
underscores several worrisome trends. The company has persistently incurred losses, with costs of
sales and general/administrative expenses greatly surpassing its revenue. This underscores the
necessity for a comprehensive review of cost management, operational efficiency, and financial
sustainability. The negative gross profit and substantial operational losses demand a critical
evaluation of the company's business model and financial strategies. Furthermore, the negative
EPS suggests that the company's financial performance is detrimentally affecting the interests of
its shareholders.
 Horizontal Analysis of Income Statement
Khulna Printing and Packaging Limited (Horizontal Analysis of I/S -2022-21)

Particulars 2022 2021 %Change

-
Net Turnover 1,427,174.00 520,771,106.00 99.72594985
-
Costs of Sales 24,623,657.00 855,770,596.00 97.12263344
-
Gross Profit -23,196,483.00 -334,999,490.00 93.07566617

General and Administrative Expenses 178,424,038.00 66,272,277.00 169.2287727

-
Selling Expenses 16,452.00 1,056,056.00 98.44212807

Profit from Operation -201,636,973.00 -402,327,823.00 -49.8824189

Other income 2,910,939.00 2,120,540.00 37.27347751

Net profit/ (Loss) before Finance cost -198,726,034.00 -400,207,283.00 -50.3442235

Finance cost 27,656,865.00 47,578,848.00 -41.8715119

-
Net profit/(loss) after financial expenses -226,382,899.00 -447,786,131.00 49.44396815
-
Net Profit Before Tax -226,382,899.00 -447,786,131.00 49.44396815
-
Current Tax -26,029.00 -3,137,350.00 99.17035077
-
Deferred Tax 96,512.00 3,879,623.00 97.51233561
-
Net profit/ (Loss) after tax -226,312,416.00 -447,043,858.00 49.37579122
-
Earnings per share (Fully diluted basis) -3.1 -6.12 49.34640523
 Khulna Printing and Packaging Limited (Horizontal Analysis of I/S -2021-20)

Particulars 2021 2020 %Change

Net Turnover 520,771,106.00 1,080,613,612.00 -51.808

Costs of Sales 855,770,596.00 1,019,906,742.00 -16.093

Gross Profit -334,999,490.00 60,706,870.00 -651.83

General and Administrative Expenses 66,272,277.00 10,175,078.00 551.32

Selling Expenses 1,056,056.00 3,230,000.00 -67.305

Profit from Operation -402,327,823.00 47,301,792.00 -950.56

Other income 2,120,540.00 1,384,117.00 53.2053

Net profit/ (Loss) before Finance cost -400,207,283.00 48,685,909.00 -922.02

Finance cost 47,578,848.00 66,851,664.00 -28.829

Net profit/(loss) after financial expenses -447,786,131.00 -18,165,755.00 2365

Net Profit Before Tax -447,786,131.00 -18,165,755.00 2365

Current Tax -3,137,350.00 6,491,986.00 -148.33

Deferred Tax 3,879,623.00 1,333,399.00 190.957

Net profit/ (Loss) after tax -447,043,858.00 -10,340,370.00 4223.29

Earnings per share (Fully diluted basis) -6.12 -0.36 1600

 Khulna Printing and Packaging Limited (Horizontal Analysis of I/S -2020-19)

Particulars 2020 2019 %Change

Net Turnover 1,080,613,612.00 313,122,186.00 245.1092

Costs of Sales 1,019,906,742.00 392,394,015.00 159.919

Gross Profit 60,706,870.00 -79,271,829.00 -176.581

General and Administrative Expenses 10,175,078.00 5,911,645.00 72.11923

Selling Expenses 3,230,000.00 4,014,390.00 -19.5395

Profit from Operation 47,301,792.00 -89,197,864.00 -153.03

Other income 1,384,117.00 1,313,531.00 5.37376

Net profit/ (Loss) before Finance cost 48,685,909.00 -87,884,333.00 -155.398

Finance cost 66,851,664.00 79,190,553.00 -15.5813

Net profit/(loss) after financial expenses -18,165,755.00 -167,074,886.00 -89.1272

Net Profit Before Tax -18,165,755.00 -167,074,886.00 -89.1272

Current Tax 6,491,986.00 -1,886,614.00 -444.108

Deferred Tax 1,333,399.00 -2,233,117.00 -159.71

Net profit/ (Loss) after tax -10,340,370.00 -171,194,617.00 -93.9599

Earnings per share (Fully diluted basis) -0.36 -2.34 -84.6154

 Khulna Printing and Packaging Limited (Horizontal Analysis of I/S -2019-18)

Particulars 2019 2018 %change

Net Turnover 313,122,186.00 0 #DIV/0!

Costs of Sales 392,394,015.00 15,650,954.00 2407.157168

Gross Profit -79,271,829.00 -15,650,954.00 406.4983834

General and Administrative Expenses 5,911,645.00 5,482,319.00 7.83110213

Selling Expenses 4,014,390.00 #DIV/0!

Profit from Operation -89,197,864.00 -21,133,273.00 322.0731166

Other income 1,313,531.00 1,461,866.00 -10.1469629

Net profit/ (Loss) before Finance cost -87,884,333.00 -19,671,407.00 346.7618051

Finance cost 79,190,553.00 65,869,354.00 20.22366729

Net profit/(loss) after financial expenses -167,074,886.00 -85,540,761.00 95.31610901

Net Profit Before Tax -167,074,886.00 -85,540,761.00 95.31610901

Current Tax -1,886,614.00 -8,771.00 21409.67963

Deferred Tax -2,233,117.00 -3,387,612.00 -34.0799064

Net profit/ (Loss) after tax -171,194,617.00 -88,937,144.00 92.48944738

Earnings per share (Fully diluted basis) -2.34 -1.22 91.80327869

 Khulna Printing and Packaging Limited (Comparison of the 5 year Analysis of I/S)

Particulars 2022% 2021% 2020% 2019%

Net Turnover -99.73 -51.81 245.11 #DIV/0!

Costs of Sales -97.12 -16.09 159.92 2407.16

Gross Profit -93.08 -651.83 -176.58 406.50

General and Administrative Expenses 169.23 551.32 72.12 7.83

Selling Expenses -98.44 -67.30 -19.54 #DIV/0!

Profit from Operation -49.88 -950.56 -153.03 322.07

Other income 37.27 53.21 5.37 -10.15

Net profit/ (Loss) before Finance cost -50.34 -922.02 -155.40 346.76

Finance cost -41.87 -28.83 -15.58 20.22

Net profit/(loss) after financial expenses -49.44 2365.00 -89.13 95.32

Net Profit Before Tax -49.44 2365.00 -89.13 95.32

Current Tax -99.17 -148.33 -444.11 21409.68

Deferred Tax -97.51 190.96 -159.71 -34.08

Net profit/ (Loss) after tax -49.38 4223.29 -93.96 92.49

Earnings per share (Fully diluted basis) -49.35 1600.00 -84.62 91.80
The horizontal analysis of Khulna Printing and Packaging Limited's income statement for five
years reveals significant changes in various line items. Let's analyze these changes and provide a
detailed explanation of the findings:

• Net Turnover:
The net turnover shows substantial fluctuations over the five-year period. In 2020, it increased
dramatically by 245.11% compared to the previous year. However, it decreased significantly by -
51.81% in 2021 and further dropped to -99.73% in 2022. The negative percentages in the last two
years indicate a decrease in revenue and may be a cause for concern.

• Cost of Sales:
The cost of sales as a percentage of net turnover also fluctuated significantly. In 2020, it increased
by 159.92%, which could be attributed to higher production costs. In 2021, it decreased by -
16.09%, possibly due to cost-saving measures. However, in 2022, it increased again by -97.12%,
raising concerns about cost management.

• Gross Profit:
The gross profit shows substantial variations. In 2020, it decreased by -176.58% due to the increase
in the cost of sales. In 2021, it decreased significantly by -651.83%, which could be a sign of
operational challenges. In 2022, it improved to -93.08%, but it is still negative, indicating that the
company is not generating a positive profit from its core operations.

• General and Administrative Expenses:

General and administrative expenses increased substantially in 2021 by 551.32%, which may be
due to increased administrative costs or accounting adjustments. In 2022, it further increased by
169.23%, which could be a sign of increased overhead expenses.

• Selling Expenses:
Selling expenses have fluctuated and been negative in some years, making it challenging to draw
concrete conclusions. The negative percentages in 2021 and 2022 may indicate unusual accounting
or business practices.
 • Profit from Operation:
The profit from operations experienced a severe decrease in 2021, with a percentage change of -
950.56%. This suggests a significant decline in operational profitability. In 2022, there was an
improvement, but the percentage is still negative at -49.88%.

• Other Income:
Other income shows positive percentages, with an increase in 2022 to 37.27%. This indicates that
the company may have generated additional income from sources other than its core operations.

• Net Profit Before Tax:

The net profit before tax displays significant variations. In 2021, it increased by 2365.00%,
suggesting a substantial improvement in pre-tax profitability. However, it decreased to -49.44% in
2022, indicating a return to losses.

• Finance Cost:
Finance costs have shown variations, with a decrease of -15.58% in 2021. However, in 2022, it
increased to -41.87%.

• Net Profit After Tax:

The net profit after tax had a substantial increase of 4223.29% in 2021, indicating a significant
recovery. However, it decreased to -49.38% in 2022, reflecting a return to losses.

• Earnings per Share (Fully Diluted Basis):

Earnings per share (EPS) had a positive change in 2021, with an increase of 1600.00%, suggesting
improved earnings per share. However, it decreased to -49.35% in 2022, indicating a decline in
earnings.
In summary, the horizontal analysis of Khulna Printing and Packaging Limited's income statement
shows a company with significant fluctuations and challenges in its financial performance. The
company has experienced a roller-coaster ride in terms of profitability, with periods of substantial
losses and recovery. The negative percentages in revenue, gross profit, and net profit are
concerning, suggesting that the company faces operational and financial hurdles. The variations in
expense categories also warrant a closer look, as increased expenses can impact profitability.
 Ratio Analysis

Liquidity Ratios 2022 2021 2020 2019 2018

Current Ratio 0.692845207 1.43193 5.01357 4.87605 3.26294

Acid-Test (Quick Ratio) 0.48196869 1.22419 2.6846 2.01413 1.53342

Receivables turnover 0.006859413 1.66386 3.56257 1.13093

Inventory Turnover 7.428483036 3.60332 2.07165 0.90161 0.08832

Profitability Ratios

Profit margin -158.573808 -0.8584 -0.0096 -0.5467 #DIV/0!

Asset Turnover 0.00241298 0.48632 0.76025 0.20433 0

Return on Common Stockholder Equity 9.831895583 -0.931 -0.0117 -0.1736

EPS 0.019539622 7.12994 14.7948 4.287 0

Payout ratio -0.00486054 -0.0098 -0.4255 0 0

Solvency Ratios

Debt to assets ratio 1.298196253 0.87589 0.38519 0.36905 0.34544

Times interest earned -7.18541433 -8.4115 0.72827 -1.1098 -0.2986

Analyzing the five-year ratio analysis of Khulna Printing and Packaging Limited provides insights
into the company's financial performance, liquidity, profitability, and solvency. Let's break down
each category and discuss the trends and implications:

Liquidity Ratios:

• Current Ratio:
This ratio measures the company's ability to meet its short-term obligations. The significant drop
in the current ratio from 5.01 in 2020 to 0.69 in 2022 indicates a potential liquidity issue. The
company might be struggling to cover its current liabilities with its current assets.

• Acid-Test (Quick Ratio):

This ratio is a stricter measure of liquidity as it excludes inventory. The quick ratio has also
declined significantly over the years, from 2.68 in 2020 to 0.48 in 2022. This suggests that the
company's ability to meet short-term obligations without relying on inventory has weakened.

• Receivables Turnover:
The decreasing trend in receivables turnover indicates that the company is taking longer to collect
its accounts receivable. This can tie up cash and impact liquidity.

• Inventory Turnover:
The increasing trend in inventory turnover suggests that the company is selling its inventory more
quickly. However, a very high turnover might indicate that the company is facing difficulty in
maintaining optimal inventory levels.

Profitability Ratios:

• Profit Margin:
The company experienced a drastic decline in profit margin, from a negative value in 2018 to -
158.57% in 2022. A negative profit margin is a significant concern, indicating that the company is
consistently incurring losses.
 • Asset Turnover:
The asset turnover is quite low, indicating that the company's assets are not being efficiently
utilized to generate sales. This could be due to issues with operations or asset management.

• Return on Common Stockholder Equity:

This ratio measures the return earned for common stockholders. The negative values in recent
years indicate that the company's profitability is insufficient to generate returns for its
shareholders.

• Earnings Per Share (EPS):

The EPS has fluctuated significantly, but it's generally quite low. This suggests that the company
is not generating significant earnings per share, which can be unattractive to investors.

• Payout Ratio:
The payout ratio is inconsistent but generally low. This might indicate that the company is not
distributing much of its earnings as dividends to shareholders.

Solvency Ratios:

• Debt to Assets Ratio:

The increasing trend in this ratio indicates that the company is taking on more debt in relation to
its assets. This could be a sign of increased financial risk.

• Times Interest Earned:

The consistently negative times interest earned ratio suggests that the company is not generating
sufficient income to cover its interest expenses. This is a significant concern for solvency and
suggests financial distress.
In summary, the five-year ratio analysis of Khulna Printing and Packaging Limited reveals
concerning financial trends. The company's liquidity has deteriorated, profitability is consistently
poor with negative profit margins, and its solvency is at risk due to increasing debt and an inability
to cover interest expenses. The company should consider improving its working capital
management, cost control, and debt management to reverse these trends and ensure long-term
financial stability. Investors and creditors should exercise caution when dealing with such a
financially troubled company.
 Bashundhara Paper Mills Limited
Vertical Analysis of Balance Sheet
Bashundhara Paper Mills Limited (Vertical Analysis B/S-2022)

Fiscal year is July-June. All values BDT Millions. 2022 % of Asset

Cash & Short Term Investments 644 1.84770758
Total Accounts Receivable 1016 2.91501693
Accounts Receivables, Net 722 2.07149825
Other Receivables 294 0.84351868
Inventories 8391 24.0747117
Finished Goods 1216 3.48883916
Work in Progress 1474 4.22906983
Raw Materials 4272 12.2568428
Progress Payments & Other 1430 4.10282894
Other Current Assets 709 2.0341998
Prepaid Expenses 410 1.17633557
Miscellaneous Current Assets 299 0.85786423
Total Current Assets 10760 30.871636
Net Property, Plant & Equipment 23673 67.9204682
Property, Plant & Equipment - Gross 31207 89.5363516
Buildings 5949 17.0683422
Land & Improvements 7462 21.4093074
Machinery & Equipment 15919 45.6733804
Construction in Progress 632 1.81327825
Transportation Equipment 640 1.83623114
Other Property, Plant & Equipment 590 1.69277558
Accumulated Depreciation 7534 21.6158834
Buildings 849 2.43587537
Machinery & Equipment 5960 17.0999025
Transportation Equipment 439 1.25953979
Other Property, Plant & Equipment 286 0.82056579
Total Investments and Advances 265 0.76031445
Other Long-Term Investments 265 0.76031445
Intangible Assets 156 0.44758134
Total Assets 34854 100

ST Debt & Current Portion LT Debt 5991 17.1888449

Short Term Debt 3994 11.4592299
Current Portion of Long Term Debt 1997 5.72961497
Accounts Payable 519 1.48906869
Income Tax Payable 123 0.35290067
Other Current Liabilities 681 1.95386469
Dividends Payable 3 0.00860733
Accrued Payroll 246 0.70580134
Miscellaneous Current Liabilities 431 1.23658691
Total Current Liabilities 7314 20.9846789
Long-Term Debt 13375 38.3743616
Deferred Taxes 1094 3.1388076
Total Liabilities 21784 62.5007173
Common Equity (Total) 13070 37.4992827
Common Stock Par/Carry Value 1738 4.98651518
Additional Paid-In Capital/Capital Surplus 1740 4.9922534
Retained Earnings 2894 8.30320767
Revaluation Reserves 6699 19.2201756
Total Shareholders' Equity 13070 37.4992827
Liabilities & Shareholders' Equity 34854 100
 Bashundhara Paper Mills Limited (Vertical Analysis B/S-2021)

Fiscal year is July-June. All values BDT Millions. 2021 % of Asset

Cash & Short Term Investments 556 1.93465

Total Accounts Receivable 768 2.67233
Accounts Receivables, Net 655 2.27913
Other Receivables 113 0.39319
Inventories 8114 28.2334
Finished Goods 1115 3.87975
Work in Progress 1455 5.06281
Raw Materials 3988 13.8766
Progress Payments & Other 1557 5.41773
Other Current Assets 797 2.77323
Prepaid Expenses 449 1.56234
Miscellaneous Current Assets 348 1.2109
Total Current Assets 10235 35.6136
Net Property, Plant & Equipment 18088 62.9389
Property, Plant & Equipment - Gross 24754 86.1338
Buildings 5381 18.7237
Land & Improvements 2682 9.33227
Machinery & Equipment 14617 50.8612
Construction in Progress 865 3.00985
Transportation Equipment 615 2.13995
Other Property, Plant & Equipment 567 1.97293
Accumulated Depreciation 6666 23.195
Buildings 726 2.52618
Machinery & Equipment 5292 18.414
Transportation Equipment 395 1.37444
Other Property, Plant & Equipment 252 0.87686
Total Investments and Advances 265 0.92209
Other Long-Term Investments 265 0.92209
Intangible Assets 151 0.52542
Total Assets 28739 100

ST Debt & Current Portion LT Debt 4792 16.6742

Short Term Debt 2635 9.16873
Current Portion of Long-Term Debt 2157 7.50548
Accounts Payable 472 1.64237
Income Tax Payable 173 0.60197
Other Current Liabilities 724 2.51922
Dividends Payable 4 0.01392
Accrued Payroll 236 0.82118
Miscellaneous Current Liabilities 485 1.6876
Total Current Liabilities 6161 21.4378
Long-Term Debt 13281 46.2125
Deferred Taxes 1184 4.11984
Total Liabilities 20627 71.7735
Common Equity (Total) 8112 28.2265
Common Stock Par/Carry Value 1738 6.04753
Additional Paid-In Capital/Capital Surplus 1740 6.05449
Retained Earnings 2582 8.98431
Revaluation Reserves 2053 7.1436
Total Shareholders' Equity 8112 28.2265
Liabilities & Shareholders' Equity 28739 100
 Bashundhara Paper Mills Limited (Vertical Analysis B/S-2020)

Fiscal year is July-June. All values BDT Millions. 2020 % of Asset

Cash & Short Term Investments 523 1.89878

Total Accounts Receivable 1406 5.10456
Accounts Receivables, Net 1163 4.22234
Other Receivables 243 0.88222
Inventories 7540 27.3744
Finished Goods 1205 4.37482
Work in Progress 1182 4.29132
Raw Materials 3806 13.8179
Progress Payments & Other 1345 4.8831
Other Current Assets 875 3.17674
Prepaid Expenses 508 1.84432
Miscellaneous Current Assets 367 1.33241
Total Current Assets 10343 37.5508
Net Property, Plant & Equipment 16777 60.9098
Property, Plant & Equipment - Gross 22486 81.6367
Buildings 4633 16.8204
Land & Improvements 2682 9.73715
Machinery & Equipment 12665 45.981
Construction in Progress 1328 4.82138
Transportation Equipment 581 2.10935
Other Property, Plant & Equipment 556 2.01859
Accumulated Depreciation 5709 20.7268
Buildings 616 2.23642
Machinery & Equipment 4531 16.45
Transportation Equipment 344 1.24891
Other Property, Plant & Equipment 217 0.78783
Total Investments and Advances 265 0.9621
Other Long-Term Investments 265 0.9621
Intangible Assets 159 0.57726
Total Assets 27544 100
Liabilities & Shareholders' Equity 0
ST Debt & Current Portion LT Debt 5101 18.5195
Short Term Debt 3127 11.3527
Current Portion of Long Term Debt 1974 7.16672
Accounts Payable 726 2.63578
Income Tax Payable 317 1.15089
Other Current Liabilities 960 3.48533
Dividends Payable 302 1.09643
Accrued Payroll 238 0.86407
Miscellaneous Current Liabilities 420 1.52483
Total Current Liabilities 7104 25.7915
Long-Term Debt 11524 41.8385
Deferred Taxes 1189 4.31673
Total Liabilities 19817 71.9467
Common Equity (Total) 7727 28.0533
Common Stock Par/Carry Value 1738 6.3099
Additional Paid-In Capital/Capital Surplus 1740 6.31717
Retained Earnings 2177 7.90372
Revaluation Reserves 2073 7.52614
Total Shareholders' Equity 7727 28.0533
Liabilities & Shareholders' Equity 27544 100
 Bashundhara Paper Mills Limited (Vertical Analysis B/S-2019)

Fiscal year is July-June. All values BDT Millions. 2019 % of Asset

Cash & Short Term Investments 1682 5.85267

Total Accounts Receivable 3694 12.8536
Accounts Receivables, Net 2690 9.3601
Other Receivables 1004 3.49351
Inventories 7944 27.6419
Finished Goods 1404 4.88535
Work in Progress 1250 4.34949
Raw Materials 4274 14.8718
Progress Payments & Other 1017 3.53875
Other Current Assets 1136 3.95282
Prepaid Expenses 497 1.72936
Miscellaneous Current Assets 639 2.22346
Total Current Assets 14456 50.301
Net Property, Plant & Equipment 15298 53.2308
Property, Plant & Equipment - Gross 20097 69.9294
Buildings 3682 12.8119
Land & Improvements 2662 9.26267
Machinery & Equipment 10649 37.0542
Construction in Progress 2009 6.9905
Transportation Equipment 562 1.95553
Other Property, Plant & Equipment 412 1.43359
Accumulated Depreciation 4799 16.6986
Buildings 517 1.79895
Machinery & Equipment 3761 13.0867
Transportation Equipment 270 0.93949
Other Property, Plant & Equipment 186 0.6472
Total Investments and Advances 265 0.92209
Other Long-Term Investments 265 0.92209
Intangible Assets 167 0.58109
Total Assets 30186 105.035
Liabilities & Shareholders' Equity 0
ST Debt & Current Portion LT Debt 9825 34.187
Short Term Debt 8084 28.129
Current Portion of Long Term Debt 1741 6.05797
Accounts Payable 1417 4.93058
Income Tax Payable 265 0.92209
Other Current Liabilities 1006 3.50047
Dividends Payable - #VALUE!
Accrued Payroll 168 0.58457
Miscellaneous Current Liabilities 838 2.9159
Total Current Liabilities 12513 43.5401
Long-Term Debt 8437 29.3573
Deferred Taxes 1077 3.74752
Total Liabilities 22706 79.0076
Common Equity (Total) 7480 26.0273
Common Stock Par/Carry Value 1738 6.04753
Additional Paid-In Capital/Capital Surplus 1740 6.05449
Retained Earnings 1910 6.64602
Revaluation Reserves 2093 7.28279
Total Shareholders' Equity 7480 26.0273
Liabilities & Shareholders' Equity 30186 105.035
 Bashundhara Paper Mills Limited (Vertical Analysis B/S-2018)

Fiscal year is July-June. All values BDT Millions. 2018 Column1

Cash & Short Term Investments 1907 6.92347

Total Accounts Receivable 2491 9.04371
Accounts Receivables, Net 2194 7.96544
Other Receivables 298 1.08191
Inventories 7264 26.3723
Finished Goods 1012 3.67412
Work in Progress 775 2.81368
Raw Materials 4221 15.3246
Progress Payments & Other 1256 4.55998
Other Current Assets 1489 5.4059
Prepaid Expenses 571 2.07305
Miscellaneous Current Assets 918 3.33285
Total Current Assets 13152 47.7491
Net Property, Plant & Equipment 11471 41.6461
Property, Plant & Equipment - Gross 15346 55.7145
Buildings 2127 7.72219
Land & Improvements 2592 9.4104
Machinery & Equipment 7176 26.0529
Construction in Progress 2493 9.05097
Transportation Equipment 463 1.68095
Other Property, Plant & Equipment 376 1.36509
Accumulated Depreciation 3875 14.0684
Buildings 436 1.58292
Machinery & Equipment 3038 11.0296
Transportation Equipment 203 0.737
Other Property, Plant & Equipment 151 0.54821
Total Investments and Advances 265 0.9621
Other Long-Term Investments 265 0.9621
Intangible Assets 174 0.63172
Total Assets 25062 90.989
Liabilities & Shareholders' Equity 0
ST Debt & Current Portion LT Debt 10220 37.1043
Short Term Debt 8976 32.5879
Current Portion of Long Term Debt 1244 4.51641
Accounts Payable 667 2.42158
Income Tax Payable 431 1.56477
Other Current Liabilities 668 2.42521
Dividends Payable - #VALUE!
Accrued Payroll 148 0.53732
Miscellaneous Current Liabilities 520 1.88789
Total Current Liabilities 11985 43.5122
Long-Term Debt 3824 13.8832
Deferred Taxes 957 3.47444
Total Liabilities 17513 63.5819
Common Equity (Total) 7550 27.4107
Common Stock Par/Carry Value 1738 6.3099
Additional Paid-In Capital/Capital Surplus 1740 6.31717
Retained Earnings 1959 7.11226
Revaluation Reserves 2113 7.67136
Total Shareholders' Equity 7550 27.4107
Liabilities & Shareholders' Equity 25062 90.989
 Bashundhara Paper Mills Limited (Vertical Analysis B/S 5 year comparison)

Fiscal year is July-June. All values BDT 2022 2020 2019

Millions. (%) 2021 (%) (%) (%) 2018 (%)
Cash & Short Term Investments 1.85 1.93 1.90 5.57 7.61
Total Accounts Receivable 2.92 2.67 5.10 12.24 9.94
Accounts Receivables, Net 2.07 2.28 4.22 8.91 8.75
Other Receivables 0.84 0.39 0.88 3.33 1.19
Inventories 24.07 28.23 27.37 26.32 28.98
Finished Goods 3.49 3.88 4.37 4.65 4.04
Work in Progress 4.23 5.06 4.29 4.14 3.09
Raw Materials 12.26 13.88 13.82 14.16 16.84
Progress Payments & Other 4.10 5.42 4.88 3.37 5.01
Other Current Assets 2.03 2.77 3.18 3.76 5.94
Prepaid Expenses 1.18 1.56 1.84 1.65 2.28
Miscellaneous Current Assets 0.86 1.21 1.33 2.12 3.66
Total Current Assets 30.87 35.61 37.55 47.89 52.48
Net Property, Plant & Equipment 67.92 62.94 60.91 50.68 45.77
Property, Plant & Equipment - Gross 89.54 86.13 81.64 66.58 61.23
Buildings 17.07 18.72 16.82 12.20 8.49
Land & Improvements 21.41 9.33 9.74 8.82 10.34
Machinery & Equipment 45.67 50.86 45.98 35.28 28.63
Construction in Progress 1.81 3.01 4.82 6.66 9.95
Transportation Equipment 1.84 2.14 2.11 1.86 1.85
Other Property, Plant & Equipment 1.69 1.97 2.02 1.36 1.50
Accumulated Depreciation 21.62 23.19 20.73 15.90 15.46
Buildings 2.44 2.53 2.24 1.71 1.74
Machinery & Equipment 17.10 18.41 16.45 12.46 12.12
Transportation Equipment 1.26 1.37 1.25 0.89 0.81
Other Property, Plant & Equipment 0.82 0.88 0.79 0.62 0.60
Total Investments and Advances 0.76 0.92 0.96 0.88 1.06
Other Long-Term Investments 0.76 0.92 0.96 0.88 1.06
Intangible Assets 0.45 0.53 0.58 0.55 0.69
Total Assets 100.00 100.00 100.00 100.00 100.00
Liabilities & Shareholders' Equity
ST Debt & Current Portion LT Debt 17.19 16.67 18.52 32.55 40.78
Short Term Debt 11.46 9.17 11.35 26.78 35.82
Current Portion of Long Term Debt 5.73 7.51 7.17 5.77 4.96
Accounts Payable 1.49 1.64 2.64 4.69 2.66
Income Tax Payable 0.35 0.60 1.15 0.88 1.72
Other Current Liabilities 1.95 2.52 3.49 3.33 2.67
Dividends Payable 0.01 0.01 1.10 - -
Accrued Payroll 0.71 0.82 0.86 0.56 0.59
Miscellaneous Current Liabilities 1.24 1.69 1.52 2.78 2.07
Total Current Liabilities 20.98 21.44 25.79 41.45 47.82
Long-Term Debt 38.37 46.21 41.84 27.95 15.26
Deferred Taxes 3.14 4.12 4.32 3.57 3.82
Total Liabilities 62.50 71.77 71.95 75.22 69.88
Common Equity (Total) 37.50 28.23 28.05 24.78 30.13
Common Stock Par/Carry Value 4.99 6.05 6.31 5.76 6.93
Additional Paid-In Capital/Capital Surplus 4.99 6.05 6.32 5.76 6.94
Retained Earnings 8.30 8.98 7.90 6.33 7.82
Revaluation Reserves 19.22 7.14 7.53 6.93 8.43
Total Shareholders' Equity 37.50 28.23 28.05 24.78 30.13
Liabilities & Shareholders' Equity 100.00 100.00 100.00 100.00 100.00
 Vertical analysis, also known as common-size analysis, is a financial statement analysis that
expresses each line item in a company's financial statements as a percentage of a base item,
typically total revenue or total assets. In your case, you've provided the vertical analysis for
Bashundhara Paper Mills Limited for the years 2018 to 2022. Let's break down the analysis
for each of these years:

• Cash & Short Term Investments:

In 2018, it accounted for 7.61% of total assets, but by 2022, it had decreased to 1.85%. This
suggests a significant reduction in available cash and short-term investments over the five-year
period, which may indicate changes in the company's investment strategy.

• Accounts Receivable:
Accounts Receivable as a percentage of total assets increased from 9.94% in 2018 to 12.24% in
2019, but then gradually decreased to 2.07% in 2022. This fluctuation may indicate variations in
the company's credit policies or changes in the payment behavior of customers.

• Inventories:
Inventories accounted for 28.98% of total assets in 2018, and this percentage gradually decreased
to 24.07% in 2022. This may imply that the company managed its inventory more efficiently over
the five-year period.

• Net Property, Plant & Equipment:

This category showed a consistent increase, from 45.77% of total assets in 2018 to 67.92% in
2022. This suggests that the company invested significantly in property, plant, and equipment over
this period.

• Total Investments and Advances:

The percentage of total investments and advances declined from 1.06% in 2018 to 0.76% in 2022.
This indicates a reduction in long-term investments.
 • Intangible Assets:
The percentage of intangible assets remained relatively stable over the five years, ranging from
0.45% to 0.69% of total assets.

• Short-Term Debt:
Short-term debt as a percentage of total liabilities and equity decreased from 35.82% in 2018 to
11.46% in 2022, which may indicate a more conservative approach to debt management.

• Long-Term Debt:
The proportion of long-term debt to total liabilities and equity fluctuated, peaking at 46.21% in
2019 and then decreasing to 38.37% in 2022.

• Common Equity:
Common equity increased from 30.13% of total liabilities and equity in 2018 to 37.50% in 2022.
This indicates growth in the company's equity base relative to its liabilities.

• Revaluation Reserves:
Revaluation reserves showed significant fluctuations, reaching 19.22% in 2018 and then
decreasing to 7.14% in 2019 before gradually increasing to 19.22% in 2022. These changes may
be due to revaluation of assets.

In summary, the vertical analysis of Bashundhara Paper Mills Limited's financial statements
reveals trends and changes in the composition of its assets, liabilities, and equity over the five-year
period. These changes may be indicative of shifts in the company's financial strategy, investment
decisions, and debt management. It's important to consider the context and underlying reasons for
these changes to make informed assessments about the company's financial health and
performance.
 Horizontal Analysis of Balance Sheet
Bashundhara Paper Mills Limited (Horizontal Analysis B/S-2022-21)

Fiscal year is July-June. All values BDT Millions. 2022 2021 % chnage
Cash & Short Term Investments 644 556 15.8273381
Total Accounts Receivable 1016 768 32.2916667
Accounts Receivables, Net 722 655 10.2290076
Other Receivables 294 113 160.176991
Inventories 8391 8114 3.4138526
Finished Goods 1216 1115 9.05829596
Work in Progress 1474 1455 1.30584192
Raw Materials 4272 3988 7.12136409
-
Progress Payments & Other 1430 1557 8.15671162
-
Other Current Assets 709 797 11.0414053
-
Prepaid Expenses 410 449 8.68596882
-
Miscellaneous Current Assets 299 348 14.0804598
Total Current Assets 10760 10235 5.12945774
Net Property, Plant & Equipment 23673 18088 30.8768244
Property, Plant & Equipment - Gross 31207 24754 26.0685142
Buildings 5949 5381 10.5556588
Land & Improvements 7462 2682 178.225205
Machinery & Equipment 15919 14617 8.90743655
-
Construction in Progress 632 865 26.9364162
Transportation Equipment 640 615 4.06504065
Other Property, Plant & Equipment 590 567 4.05643739
Accumulated Depreciation 7534 6666 13.0213021
Buildings 849 726 16.9421488
Machinery & Equipment 5960 5292 12.6228269
Transportation Equipment 439 395 11.1392405
Other Property, Plant & Equipment 286 252 13.4920635
Total Investments and Advances 265 265 0
Other Long-Term Investments 265 265 0
Intangible Assets 156 151 3.31125828
Total Assets 34854 28739 21.2777063
Liabilities & Shareholders' Equity #DIV/0!
ST Debt & Current Portion LT Debt 5991 4792 25.0208681
Short Term Debt 3994 2635 51.5749526
-
Current Portion of Long Term Debt 1997 2157 7.41770978
Accounts Payable 519 472 9.95762712
-
Income Tax Payable 123 173 28.9017341
-
Other Current Liabilities 681 724 5.93922652
Dividends Payable 3 4 -25
Accrued Payroll 246 236 4.23728814
-
Miscellaneous Current Liabilities 431 485 11.1340206
Total Current Liabilities 7314 6161 18.7144944
Long-Term Debt 13375 13281 0.70777803
-
Deferred Taxes 1094 1184 7.60135135
Total Liabilities 21784 20627 5.60915305
Common Equity (Total) 13070 8112 61.1193294
Common Stock Par/Carry Value 1738 1738 0
Additional Paid-In Capital/Capital Surplus 1740 1740 0
Retained Earnings 2894 2582 12.0836561
Revaluation Reserves 6699 2053 226.302971
Total Shareholders' Equity 13070 8112 61.1193294
Liabilities & Shareholders' Equity 34854 28739 21.2777063
 Bashundhara Paper Mills Limited (Horizontal Analysis B/S-2021-20)

Fiscal year is July-June. All values BDT Millions. 2021 2020 % chnage

Cash & Short Term Investments 556 523 6.30975

Total Accounts Receivable 768 1406 -45.377
Accounts Receivables, Net 655 1163 -43.68
Other Receivables 113 243 -53.498
Inventories 8114 7540 7.61273
Finished Goods 1115 1205 -7.4689
Work in Progress 1455 1182 23.0964
Raw Materials 3988 3806 4.78192
Progress Payments & Other 1557 1345 15.7621
Other Current Assets 797 875 -8.9143
Prepaid Expenses 449 508 -11.614
Miscellaneous Current Assets 348 367 -5.1771
Total Current Assets 10235 10343 -1.0442
Net Property, Plant & Equipment 18088 16777 7.81427
Property, Plant & Equipment - Gross 24754 22486 10.0863
Buildings 5381 4633 16.145
Land & Improvements 2682 2682 0
Machinery & Equipment 14617 12665 15.4126
Construction in Progress 865 1328 -34.864
Transportation Equipment 615 581 5.85198
Other Property, Plant & Equipment 567 556 1.97842
Accumulated Depreciation 6666 5709 16.763
Buildings 726 616 17.8571
Machinery & Equipment 5292 4531 16.7954
Transportation Equipment 395 344 14.8256
Other Property, Plant & Equipment 252 217 16.129
Total Investments and Advances 265 265 0
Other Long-Term Investments 265 265 0
Intangible Assets 151 159 -5.0314
Total Assets 28739 27544 4.33851
Liabilities & Shareholders' Equity #DIV/0!
ST Debt & Current Portion LT Debt 4792 5101 -6.0576
Short Term Debt 2635 3127 -15.734
Current Portion of Long Term Debt 2157 1974 9.27052
Accounts Payable 472 726 -34.986
Income Tax Payable 173 317 -45.426
Other Current Liabilities 724 960 -24.583
Dividends Payable 4 302 -98.675
Accrued Payroll 236 238 -0.8403
Miscellaneous Current Liabilities 485 420 15.4762
Total Current Liabilities 6161 7104 -13.274
Long-Term Debt 13281 11524 15.2464
Deferred Taxes 1184 1189 -0.4205
Total Liabilities 20627 19817 4.0874
Common Equity (Total) 8112 7727 4.98253
Common Stock Par/Carry Value 1738 1738 0
Additional Paid-In Capital/Capital Surplus 1740 1740 0
Retained Earnings 2582 2177 18.6036
Revaluation Reserves 2053 2073 -0.9648
Total Shareholders' Equity 8112 7727 4.98253
Liabilities & Shareholders' Equity 28739 27544 4.33851
 Bashundhara Paper Mills Limited (Horizontal Analysis B/S-2020-19)

Fiscal year is July-June. All values BDT Millions. 2020 2019 % chnage

Cash & Short Term Investments 523 1682 -68.906

Total Accounts Receivable 1406 3694 -61.938
Accounts Receivables, Net 1163 2690 -56.766
Other Receivables 243 1004 -75.797
Inventories 7540 7944 -5.0856
Finished Goods 1205 1404 -14.174
Work in Progress 1182 1250 -5.44
Raw Materials 3806 4274 -10.95
Progress Payments & Other 1345 1017 32.2517
Other Current Assets 875 1136 -22.975
Prepaid Expenses 508 497 2.21328
Miscellaneous Current Assets 367 639 -42.567
Total Current Assets 10343 14456 -28.452
Net Property, Plant & Equipment 16777 15298 9.66793
Property, Plant & Equipment - Gross 22486 20097 11.8873
Buildings 4633 3682 25.8284
Land & Improvements 2682 2662 0.75131
Machinery & Equipment 12665 10649 18.9314
Construction in Progress 1328 2009 -33.897
Transportation Equipment 581 562 3.38078
Other Property, Plant & Equipment 556 412 34.9515
Accumulated Depreciation 5709 4799 18.9623
Buildings 616 517 19.1489
Machinery & Equipment 4531 3761 20.4733
Transportation Equipment 344 270 27.4074
Other Property, Plant & Equipment 217 186 16.6667
Total Investments and Advances 265 265 0
Other Long-Term Investments 265 265 0
Intangible Assets 159 167 -4.7904
Total Assets 27544 30186 -8.7524
Liabilities & Shareholders' Equity #DIV/0!
ST Debt & Current Portion LT Debt 5101 9825 -48.081
Short Term Debt 3127 8084 -61.319
Current Portion of Long Term Debt 1974 1741 13.3831
Accounts Payable 726 1417 -48.765
Income Tax Payable 317 265 19.6226
Other Current Liabilities 960 1006 -4.5726
Dividends Payable 302 - #VALUE!
Accrued Payroll 238 168 41.6667
Miscellaneous Current Liabilities 420 838 -49.881
Total Current Liabilities 7104 12513 -43.227
Long-Term Debt 11524 8437 36.5888
Deferred Taxes 1189 1077 10.3993
Total Liabilities 19817 22706 -12.724
Common Equity (Total) 7727 7480 3.30214
Common Stock Par/Carry Value 1738 1738 0
Additional Paid-In Capital/Capital Surplus 1740 1740 0
Retained Earnings 2177 1910 13.9791
Revaluation Reserves 2073 2093 -0.9556
Total Shareholders' Equity 7727 7480 3.30214
Liabilities & Shareholders' Equity 27544 30186 -8.7524
 Bashundhara Paper Mills Limited (Horizontal Analysis B/S-2019-18)

Fiscal year is July-June. All values BDT Millions. 2019 2018 % chnage
Cash & Short Term Investments 1682 1907 -11.799
Total Accounts Receivable 3694 2491 48.2939
Accounts Receivables, Net 2690 2194 22.6071
Other Receivables 1004 298 236.913
Inventories 7944 7264 9.36123
Finished Goods 1404 1012 38.7352
Work in Progress 1250 775 61.2903
Raw Materials 4274 4221 1.25563
Progress Payments & Other 1017 1256 -19.029
Other Current Assets 1136 1489 -23.707
Prepaid Expenses 497 571 -12.96
Miscellaneous Current Assets 639 918 -30.392
Total Current Assets 14456 13152 9.91484
Net Property, Plant & Equipment 15298 11471 33.3624
Property, Plant & Equipment - Gross 20097 15346 30.9592
Buildings 3682 2127 73.1077
Land & Improvements 2662 2592 2.70062
Machinery & Equipment 10649 7176 48.3974
Construction in Progress 2009 2493 -19.414
Transportation Equipment 562 463 21.3823
Other Property, Plant & Equipment 412 376 9.57447
Accumulated Depreciation 4799 3875 23.8452
Buildings 517 436 18.578
Machinery & Equipment 3761 3038 23.7986
Transportation Equipment 270 203 33.0049
Other Property, Plant & Equipment 186 151 23.1788
Total Investments and Advances 265 265 0
Other Long-Term Investments 265 265 0
Intangible Assets 167 174 -4.023
Total Assets 30186 25062 20.4453
Liabilities & Shareholders' Equity #DIV/0!
ST Debt & Current Portion LT Debt 9825 10220 -3.865
Short Term Debt 8084 8976 -9.9376
Current Portion of Long Term Debt 1741 1244 39.9518
Accounts Payable 1417 667 112.444
Income Tax Payable 265 431 -38.515
Other Current Liabilities 1006 668 50.5988
Dividends Payable - - #VALUE!
Accrued Payroll 168 148 13.5135
Miscellaneous Current Liabilities 838 520 61.1538
Total Current Liabilities 12513 11985 4.40551
Long-Term Debt 8437 3824 120.633
Deferred Taxes 1077 957 12.5392
Total Liabilities 22706 17513 29.6523
Common Equity (Total) 7480 7550 -0.9272
Common Stock Par/Carry Value 1738 1738 0
Additional Paid-In Capital/Capital Surplus 1740 1740 0
Retained Earnings 1910 1959 -2.5013
Revaluation Reserves 2093 2113 -0.9465
Total Shareholders' Equity 7480 7550 -0.9272
Liabilities & Shareholders' Equity 30186 25062 20.4453
 Bashundhara Paper Mills Limited (Horizontal Analysis B/S-5 year comparison)

2022-21 2021-20 2020-19 2019-18

Fiscal year is July-June. All values BDT Millions. (%) (%) (%) (%)

Cash & Short Term Investments 15.83 6.31 -68.91 -11.80

Total Accounts Receivable 32.29 -45.38 -61.94 48.29

Accounts Receivables, Net 10.23 -43.68 -56.77 22.61

Other Receivables 160.18 -53.50 -75.80 236.91

Inventories 3.41 7.61 -5.09 9.36

Finished Goods 9.06 -7.47 -14.17 38.74

Work in Progress 1.31 23.10 -5.44 61.29

Raw Materials 7.12 4.78 -10.95 1.26

Progress Payments & Other -8.16 15.76 32.25 -19.03

Other Current Assets -11.04 -8.91 -22.98 -23.71

Prepaid Expenses -8.69 -11.61 2.21 -12.96

Miscellaneous Current Assets -14.08 -5.18 -42.57 -30.39

Total Current Assets 5.13 -1.04 -28.45 9.91

Net Property, Plant & Equipment 30.88 7.81 9.67 33.36

Property, Plant & Equipment - Gross 26.07 10.09 11.89 30.96

Buildings 10.56 16.15 25.83 73.11

Land & Improvements 178.23 0.00 0.75 2.70

Machinery & Equipment 8.91 15.41 18.93 48.40

Construction in Progress -26.94 -34.86 -33.90 -19.41

Transportation Equipment 4.07 5.85 3.38 21.38

Other Property, Plant & Equipment 4.06 1.98 34.95 9.57

Accumulated Depreciation 13.02 16.76 18.96 23.85

Buildings 16.94 17.86 19.15 18.58

Machinery & Equipment 12.62 16.80 20.47 23.80

Transportation Equipment 11.14 14.83 27.41 33.00

Other Property, Plant & Equipment 13.49 16.13 16.67 23.18

Total Investments and Advances 0.00 0.00 0.00 0.00

Other Long-Term Investments 0.00 0.00 0.00 0.00

Intangible Assets 3.31 -5.03 -4.79 -4.02

Total Assets 21.28 4.34 -8.75 20.45

Liabilities & Shareholders' Equity

ST Debt & Current Portion LT Debt 25.02 -6.06 -48.08 -3.86

Short Term Debt 51.57 -15.73 -61.32 -9.94

Current Portion of Long Term Debt -7.42 9.27 13.38 39.95

Accounts Payable 9.96 -34.99 -48.76 112.44

Income Tax Payable -28.90 -45.43 19.62 -38.52

Other Current Liabilities -5.94 -24.58 -4.57 50.60

Dividends Payable -25.00 -98.68 - -

Accrued Payroll 4.24 -0.84 41.67 13.51

Miscellaneous Current Liabilities -11.13 15.48 -49.88 61.15

Total Current Liabilities 18.71 -13.27 -43.23 4.41

Long-Term Debt 0.71 15.25 36.59 120.63

Deferred Taxes -7.60 -0.42 10.40 12.54

Total Liabilities 5.61 4.09 -12.72 29.65

Common Equity (Total) 61.12 4.98 3.30 -0.93

Retained Earnings 12.08 18.60 13.98 -2.50

Revaluation Reserves 226.30 -0.96 -0.96 -0.95

Total Shareholders' Equity 61.12 4.98 3.30 -0.93

Liabilities & Shareholders' Equity 21.28 4.34 -8.75 20.45

In the horizontal analysis for Bashundhara Paper Mills Limited for the fiscal years 2018-2019,
2019-2020, 2020-2021, and 2021-2022. Here's a detailed explanation and description of the trends
and changes observed:

• Cash & Short Term Investments:

Between 2021 and 2022, there was a substantial increase in cash and short-term investments by
15.83%. This indicates that the company significantly increased its liquidity, possibly due to
improved cash management or changes in investment strategies.

• Accounts Receivable:
Accounts receivable increased by 32.29% from 2021 to 2022, following a significant decrease of
45.38% from 2020 to 2021. These changes may reflect shifts in the company's credit policies and
customer payment behavior.

• Inventories:
The company reduced its inventory by 7.47% from 2020 to 2021 but then increased it by 9.36%
from 2021 to 2022. These fluctuations could be due to changes in production or demand for
products.

• Net Property, Plant & Equipment:

Property, plant, and equipment experienced steady growth, with a 30.88% increase from 2021 to
2022. This indicates ongoing investments in physical assets, which can support future business
operations.

• Accumulated Depreciation:
Accumulated depreciation increased from 2018 to 2019 and continued to rise in subsequent years.
This suggests that the company is recognizing more depreciation expenses, possibly due to the
aging of its assets.
 • Total Assets:
Total assets increased by 21.28% from 2021 to 2022, reflecting the company's growth and
expansion efforts.

• Short-Term Debt:
Short-term debt fluctuated significantly, with a 51.57% decrease from 2020 to 2021, followed by
a 15.73% increase from 2021 to 2022. These changes may be indicative of the company's debt
management strategies.

• Current Portion of Long-Term Debt:

The current portion of long-term debt showed fluctuations, with a notable 39.95% increase from
2019 to 2020. These fluctuations may be related to the company's debt repayment schedule.

• Accounts Payable:
Accounts payable increased dramatically by 112.44% from 2019 to 2020, suggesting changes in
the company's payment terms with suppliers.

• Income Tax Payable:

Income tax payable fluctuated, with a notable decrease of 45.43% from 2018 to 2019. These
changes may reflect variations in the company's tax liability.

• Total Current Liabilities:

Total current liabilities decreased by 13.27% from 2021 to 2022, indicating a potential
improvement in the company's short-term financial obligations.

• Long-Term Debt:
Long-term debt increased by 120.63% from 2019 to 2020, signaling significant changes in the
company's long-term financing.
 • Total Liabilities:
Total liabilities increased by 29.65% from 2019 to 2020, reflecting changes in the company's debt
structure and obligations.

• Common Equity (Total):

Common equity increased steadily, with a 61.12% growth from 2018 to 2019 and a 4.98% increase
from 2020 to 2021.

• Revaluation Reserves:
Revaluation reserves experienced fluctuations but generally remained at high levels, suggesting
potential changes in asset revaluations.

In summary, the horizontal analysis provides insights into the changes and trends in Bashundhara
Paper Mills Limited's financial performance and position over the five-year period. These changes
can be indicative of the company's financial management decisions, business strategy, and
economic conditions in the industry.
 Vertical Analysis of Income Statement
Bashundhara Paper Mills Limited (Vertical Analysis I/S-2022)

Fiscal year is July-June. All values BDT Millions. 2022 % of Sales

Sales/Revenue 11238 100

Cost of Goods Sold (COGS) incl. D&A 9074 80.743905

COGS excluding D&A 8187 72.851041

Depreciation & Amortization Expense 887 7.8928635

Depreciation 880 7.8305748

Amortization of Intangibles 7 0.0622887

Gross Income 2164 19.256095

SG&A Expense 489 4.3513081

EBIT 1675 14.904787

Non Operating Income/Expense 145 1.2902652

Non-Operating Interest Income 1 0.0088984

Interest Expense 1153 10.259833

Gross Interest Expense 1153 10.259833

Pretax Income 668 5.9441182

Income Tax 160 1.4237409

Income Tax - Current Domestic 133 1.1834846

Income Tax - Deferred Domestic 27 0.2402563

Net Income 508 4.5203773

 Bashundhara Paper Mills Limited (Vertical Analysis I/S-2021)

Fiscal year is July-June. All values BDT Millions. 2021 % of Sales

Sales/Revenue 9283 100

Cost of Goods Sold (COGS) incl. D&A 7438 80.125

COGS excluding D&A 6456 69.5465

Depreciation & Amortization Expense 982 10.5785

Depreciation 974 10.4923

Amortization of Intangibles 8 0.08618

Gross Income 1845 19.875

SG&A Expense 499 5.37542

EBIT 1346 14.4996

Non Operating Income/Expense 58 0.6248

Non-Operating Interest Income 1 0.01077

Interest Expense 1000 10.7724

Gross Interest Expense 1000 10.7724

Pretax Income 404 4.35204

Income Tax -7 -0.0754

Income Tax - Current Domestic -2 -0.0215

Income Tax - Deferred Domestic -5 -0.0539

Net Income 411 4.42745

 Bashundhara Paper Mills Limited (Vertical Analysis I/S-2020)

Fiscal year is July-June. All values BDT Millions. 2020 % of Sales

Sales/Revenue 8544 92.0392

Cost of Goods Sold (COGS) incl. D&A 6748 72.692

COGS excluding D&A 5758 62.0274

Depreciation & Amortization Expense 990 10.6647

Depreciation 982 10.5785

Amortization of Intangibles 8 0.08618

Gross Income 1797 19.358

SG&A Expense 478 5.1492

EBIT - #VALUE!

Non Operating Income/Expense 57 0.61403

Non-Operating Interest Income 2 0.02154

Interest Expense 923 9.94291

Gross Interest Expense 923 9.94291

Pretax Income 449 4.8368

Income Tax 164 1.76667

Income Tax - Current Domestic 51 0.54939

Income Tax - Deferred Domestic 112 1.20651

Net Income 286 3.0809

 Bashundhara Paper Mills Limited (Vertical Analysis I/S-2019)

Fiscal year is July-June. All values BDT Millions. 2019 % of Sales

Sales/Revenue 11039 100

Cost of Goods Sold (COGS) incl. D&A 9019 81.7012

COGS excluding D&A 8086 73.2494

Depreciation & Amortization Expense 934 8.46091

Depreciation 926 8.38844

Amortization of Intangibles 8 0.07247

Gross Income 2020 18.2988

SG&A Expense 558 5.05481

EBIT 1462 13.244

Non Operating Income/Expense 50 0.45294

Non-Operating Interest Income 76 0.68847

Interest Expense 1104 10.0009

Gross Interest Expense 1104 10.0009

Pretax Income 477 4.32104

Income Tax 186 1.68494

Income Tax - Current Domestic 66 0.59788

Income Tax - Deferred Domestic 119 1.078

Net Income 292 2.64517

 Bashundhara Paper Mills Limited (Vertical Analysis I/S-2018)

Fiscal year is July-June. All values BDT Millions. 2018 % of Sales

Sales/Revenue 10821 98.0252

Cost of Goods Sold (COGS) incl. D&A 8975 81.3027

COGS excluding D&A 8151 73.8382

Depreciation & Amortization Expense 824 7.46444

Depreciation 816 7.39197

Amortization of Intangibles 8 0.07247

Gross Income 1846 16.7225

SG&A Expense 481 4.35728

EBIT 1365 12.3653

Non Operating Income/Expense 52 0.47106

Non-Operating Interest Income 3 0.02718

Interest Expense 870 7.88115

Gross Interest Expense 870 7.88115

Pretax Income 494 4.47504

Income Tax -200 -1.8118

Income Tax - Current Domestic 199 1.8027

Income Tax - Deferred Domestic -399 -3.6145

Net Income 694 6.2868

 Bashundhara Paper Mills Limited (Vertical Analysis I/S-5 year Comparison)

Fiscal year is July-June. All values BDT 2022 2020 2019

Millions. (%) 2021 (%) (%) (%) 2018 (%)

Sales/Revenue 100 100 100 100 100

Cost of Goods Sold (COGS) incl. D&A 80.74 80.12 78.98 81.70 82.94

COGS excluding D&A 72.85 69.55 67.39 73.25 75.33

Depreciation & Amortization Expense 7.89 10.58 11.59 8.46 7.61

Depreciation 7.83 10.49 11.49 8.39 7.54

Amortization of Intangibles 0.06 0.09 0.09 0.07 0.07

Gross Income 19.26 19.88 21.03 18.30 17.06

SG&A Expense 4.35 5.38 5.59 5.05 4.45

EBIT 14.90 14.50 - 13.24 12.61

Non Operating Income/Expense 1.29 0.62 0.67 0.45 0.48

Non-Operating Interest Income 0.01 0.01 0.02 0.69 0.03

Interest Expense 10.26 10.77 10.80 10.00 8.04

Gross Interest Expense 10.26 10.77 10.80 10.00 8.04

Pretax Income 5.94 4.35 5.26 4.32 4.57

Income Tax 1.42 -0.08 1.92 1.68 -1.85

Income Tax - Current Domestic 1.18 -0.02 0.60 0.60 1.84

Income Tax - Deferred Domestic 0.24 -0.05 1.31 1.08 -3.69

Net Income 4.52 4.43 3.35 2.65 6.41

In the Comparison of the vertical analysis for Bashundhara Paper Mills Limited for the years 2018
to 2022. The following trends and changes is observed:

• Sales/Revenue:
This is set as the base item at 100% for all years. It represents the total revenue generated by the
company.

• Cost of Goods Sold (COGS) incl. D&A:

The cost of goods sold (COGS) including depreciation and amortization as a percentage of revenue
fluctuated but remained relatively stable, ranging from 78.98% in 2020 to 82.94% in 2018. This
metric indicates the proportion of revenue consumed by the direct costs associated with producing
goods and services.

• COGS excluding D&A:

The cost of goods sold, excluding depreciation and amortization, also showed variations but
generally followed the same trend as the COGS including D&A. It ranged from 67.39% in 2020
to 75.33% in 2018.

• Depreciation & Amortization Expense:

Depreciation and amortization expenses as a percentage of revenue fluctuated but increased over
the five-year period, from 7.61% in 2018 to 11.59% in 2020.

• Gross Income:
Gross income, which represents the profit after deducting the cost of goods sold, increased from
17.06% in 2018 to 21.03% in 2020.

• SG&A Expense:
Selling, general, and administrative (SG&A) expenses as a percentage of revenue ranged from
4.35% in 2022 to 5.59% in 2020. It reflects the company's operating and administrative costs.
 • EBIT (Earnings Before Interest and Taxes):
EBIT as a percentage of revenue fluctuated, with the lowest value in 2021 at 14.50% and the
highest in 2018 at 12.61%. EBIT represents the operating profit before considering interest
and taxes.

• Non Operating Income/Expense:

Non-operating income and expenses as a percentage of revenue fluctuated between 0.45% in 2019
and 1.29% in 2022.

• Interest Expense:
Interest expenses as a percentage of revenue increased over the five-year period, from 8.04% in
2018 to 10.80% in 2020. This reflects the cost of the company's debt.

• Pretax Income:
Pretax income as a percentage of revenue ranged from 4.32% in 2019 to 5.94% in 2022, indicating
the company's profitability before considering taxes.

• Income Tax:
Income tax expenses as a percentage of revenue showed fluctuations. It reached -1.85% in 2018,
which suggests a tax benefit for that year. This could be due to tax credits or incentives.

• Net Income:
Net income as a percentage of revenue fluctuated, with the highest value in 2018 at 6.41% and the
lowest in 2020 at 3.35%. It represents the company's bottom-line profit after all expenses,
including taxes.

In summary, the vertical analysis of the income statement for Bashundhara Paper Mills Limited
highlights the relative proportion of various financial metrics to total revenue over a five-year
period. It provides insights into the company's cost structure, profitability, and the impact of non-
operating items and taxes on its financial performance. These trends can help in understanding the
company's financial health and its ability to generate profit from its operations.
 Horizontal Analysis of Income Statement
Bashundhara Paper Mills Limited (Horizontal Analysis I/S-2022-21)

Fiscal year is July-June. All values BDT Millions. 2022 2021 % Change

Sales/Revenue 11238 9283 21.0600022

Cost of Goods Sold (COGS) incl. D&A 9074 7438 21.99516

COGS excluding D&A 8187 6456 26.8122677

Depreciation & Amortization Expense 887 982 -9.6741344

Depreciation 880 974 -9.650924

Amortization of Intangibles 7 8 -12.5

Gross Income 2164 1845 17.2899729

SG&A Expense 489 499 -2.004008

EBIT 1675 1346 24.4427935

Non Operating Income/Expense 145 58 150

Non-Operating Interest Income 1 1 0

Interest Expense 1153 1000 15.3

Gross Interest Expense 1153 1000 15.3

Pretax Income 668 404 65.3465347

Income Tax 160 -7 -2385.7143

Income Tax - Current Domestic 133 -2 -6750

Income Tax - Deferred Domestic 27 -5 -640

Net Income 508 411 23.6009732

 Bashundhara Paper Mills Limited (Horizontal Analysis I/S-2021-20)

Fiscal year is July-June. All values BDT Millions. 2021 2020 % Change

Sales/Revenue 9283 8544 8.64934

Cost of Goods Sold (COGS) incl. D&A 7438 6748 10.2253

COGS excluding D&A 6456 5758 12.1223

Depreciation & Amortization Expense 982 990 -0.8081

Depreciation 974 982 -0.8147

Amortization of Intangibles 8 8 0

Gross Income 1845 1797 2.67112

SG&A Expense 499 478 4.39331

EBIT 1346 - #VALUE!

Non Operating Income/Expense 58 57 1.75439

Non-Operating Interest Income 1 2 -50

Interest Expense 1000 923 8.34236

Gross Interest Expense 1000 923 8.34236

Pretax Income 404 449 -10.022

Income Tax -7 164 -104.27

Income Tax - Current Domestic -2 51 -103.92

Income Tax - Deferred Domestic -5 112 -104.46

Net Income 411 286 43.7063

 Bashundhara Paper Mills Limited (Horizontal Analysis I/S-2020-19)

Fiscal year is July-June. All values BDT Millions. 2020 2019 % Change

Sales/Revenue 8544 11039 -22.602

Cost of Goods Sold (COGS) incl. D&A 6748 9019 -25.18

COGS excluding D&A 5758 8086 -28.791

Depreciation & Amortization Expense 990 934 5.99572

Depreciation 982 926 6.04752

Amortization of Intangibles 8 8 0

Gross Income 1797 2020 -11.04

SG&A Expense 478 558 -14.337

EBIT - 1462 #VALUE!

Non Operating Income/Expense 57 50 14

Non-Operating Interest Income 2 76 -97.368

Interest Expense 923 1104 -16.395

Gross Interest Expense 923 1104 -16.395

Pretax Income 449 477 -5.87

Income Tax 164 186 -11.828

Income Tax - Current Domestic 51 66 -22.727

Income Tax - Deferred Domestic 112 119 -5.8824

Net Income 286 292 -2.0548

 Bashundhara Paper Mills Limited (Horizontal Analysis I/S-2019-18)

Fiscal year is July-June. All values BDT Millions. 2019 2018 % Change

Sales/Revenue 11039 10821 2.0146

Cost of Goods Sold (COGS) incl. D&A 9019 8975 0.49025

COGS excluding D&A 8086 8151 -0.7974

Depreciation & Amortization Expense 934 824 13.3495

Depreciation 926 816 13.4804

Amortization of Intangibles 8 8 0

Gross Income 2020 1846 9.42579

SG&A Expense 558 481 16.0083

EBIT 1462 1365 7.10623

Non Operating Income/Expense 50 52 -3.8462

Non-Operating Interest Income 76 3 2433.33

Interest Expense 1104 870 26.8966

Gross Interest Expense 1104 870 26.8966

Pretax Income 477 494 -3.4413

Income Tax 186 -200 -193

Income Tax - Current Domestic 66 199 -66.834

Income Tax - Deferred Domestic 119 -399 -129.82

Net Income 292 694 -57.925

 Bashundhara Paper Mills Limited (Horizontal Analysis I/S-5 year comparison)

Fiscal year is July-June. All values BDT 2022-21 2021-20 2020-19 2019-18
Millions. (%) (%) (%) (%)

Sales/Revenue 21.06 8.65 -22.60 2.01

Cost of Goods Sold (COGS) incl. D&A 22.00 10.23 -25.18 0.49

COGS excluding D&A 26.81 12.12 -28.79 -0.80

Depreciation & Amortization Expense -9.67 -0.81 6.00 13.35

Depreciation -9.65 -0.81 6.05 13.48

Amortization of Intangibles -12.50 0.00 0.00 0.00

Gross Income 17.29 2.67 -11.04 9.43

SG&A Expense -2.00 4.39 -14.34 16.01

EBIT 24.44 - - 7.11

Non Operating Income/Expense 150.00 1.75 14.00 -3.85

Non-Operating Interest Income 0.00 -50.00 -97.37 2433.33

Interest Expense 15.30 8.34 -16.39 26.90

Gross Interest Expense 15.30 8.34 -16.39 26.90

Pretax Income 65.35 -10.02 -5.87 -3.44

Income Tax -2385.71 -104.27 -11.83 -193.00

Income Tax - Current Domestic -6750.00 -103.92 -22.73 -66.83

Income Tax - Deferred Domestic -640.00 -104.46 -5.88 -129.82

Net Income 23.60 43.71 -2.05 -57.93

The horizontal analysis for Bashundhara Paper Mills Limited for the fiscal years 2018-2019, 2019-
2020, 2020-2021, and 2021-2022. Explanation and description of the trends and changes observed:

• Sales/Revenue:
Sales/revenue increased by 21.06% from 2021 to 2022, following an 8.65% increase from 2020 to
2021. This indicates growth in the company's top-line revenue.

• Cost of Goods Sold (COGS) incl. D&A:

The cost of goods sold, including depreciation and amortization, increased by 22.00% from 2021
to 2022, following a 10.23% increase from 2020 to 2021. This suggests increased expenses related
to production and the cost of goods sold.

• COGS excluding D&A:

The cost of goods sold, excluding depreciation and amortization, followed a similar trend as the
COGS incl. D&A, with a 26.81% increase from 2021 to 2022. This indicates a substantial increase
in the direct costs of production.

• Depreciation & Amortization Expense:

Depreciation and amortization expenses showed significant fluctuations. There was a notable
13.35% increase from 2019 to 2020, followed by a decrease of 6.00% from 2020 to 2021 and a
more substantial decrease of 9.67% from 2021 to 2022.

• Gross Income:
Gross income, representing the profit after deducting the cost of goods sold, increased by 17.29%
from 2021 to 2022, following a smaller increase of 2.67% from 2020 to 2021. This indicates
improved profitability before considering other expenses.

• SG&A Expense:
Selling, general, and administrative (SG&A) expenses fluctuated significantly. There was a
16.01% increase from 2019 to 2020, followed by a decrease of 14.34% from 2020 to 2021 and a
further decrease of 2.00% from 2021 to 2022.
 • EBIT (Earnings Before Interest and Taxes):
EBIT experienced substantial fluctuations, with no data provided for 2020. There was a significant
increase of 24.44% from 2019 to 2021, indicating changes in operating performance.

• Non Operating Income/Expense:

Non-operating income and expenses showed variations. A substantial increase of 150.00%
occurred from 2020 to 2021.

• Interest Expense:
Interest expenses fluctuated, with a significant increase of 26.90% from 2019 to 2021.

• Pretax Income:
Pretax income showed fluctuations, with no data provided for 2020. There was a substantial
increase of 65.35% from 2019 to 2021.

• Income Tax:
Income tax expenses fluctuated significantly, with a significant decrease of -2385.71% from 2019
to 2020, which suggests a tax benefit for that year. This could be due to tax credits or incentives.

• Net Income:
Net income increased by 23.60% from 2021 to 2022, following a substantial increase of 43.71%
from 2020 to 2021.

In summary, the horizontal analysis of the income statement for Bashundhara Paper Mills Limited
highlights the changes in various financial metrics over a five-year period. These changes can be
indicative of shifts in the company's financial performance, cost structure, profitability, and tax
implications.
 Ratio Analysis

Details 2022 2021 2020 2019 2018

Profitability ratios

Net margin (%) 4.52 4.43 3.35 2.64 6.41

Asset Turnover

Earning per share (EPS) 2.92 2.37 1.64 1.68 4.63

Return on asset (ROA)

Price earning ratio (PER) 18.49 18.81 24.85 37.52 20.75

Return on Capital Employed (ROCE) (%) 0.54 0.5 0.37 0.09 0.11

Payout ratio

Liquidity ratios

Current ratio 1.47 1.66 1.46 1.16 1.1

Quick Ratio 0.32 0.34 0.39 0.52 0.49

Accounts Receivable Turnover 11.06 12.09 6.08 2.99 4.34

Inventory turnover

Solvency ratios

Times interest earned 1.61 1.43 1.51 1.45 1.6

Debt to asset ratio 0.625 0.718 0.719 0.752 0.699

A detailed analysis of the five-year ratio data for Bashundhara Paper Mills Limited:

Profitability Ratios:

• Profit Margin (%):

The net margin measures the company's profitability as a percentage of revenue. Bashundhara
Paper Mills Limited's net margin has seen fluctuations over the five years. It increased from 2.64%
in 2019 to 4.52% in 2022, indicating an improvement in the company's ability to convert revenue
into profit.

• Earnings per Share (EPS):

EPS represents the earnings generated for each outstanding share. The company's EPS increased
steadily from 1.68 in 2019 to 2.92 in 2022, reflecting improved profitability per share.

• Price Earnings Ratio (PER):

The PER reflects the market's valuation of the company's stock relative to its earnings. The ratio
fluctuated over the years, with the highest value in 2021 at 37.52 and the lowest in 2019 at 20.75.
A higher PER suggests that investors are willing to pay more for each dollar of earnings.

• Return on Capital Employed (ROCE) (%):

ROCE measures the company's ability to generate returns on the capital employed in the business.
While the ROCE has remained low, it increased from 0.09% in 2019 to 0.54% in 2022, indicating
an improvement in capital efficiency.

Liquidity Ratios:

• Current Ratio:
The current ratio reflects the company's ability to meet short-term liabilities with its current assets.
It fluctuated over the years, with the highest value in 2021 at 1.66 and the lowest in 2018 at 1.1. A
ratio above 1 indicates that the company has enough current assets to cover its short-term
obligations.
 • Quick Ratio:
The quick ratio, which excludes inventory, indicates the company's ability to meet short-term
liabilities with its most liquid assets. The ratio also fluctuated, with the highest value in 2021 at
0.52. A quick ratio above 1 is generally considered healthy.

• Accounts Receivable Turnover:

This ratio measures how efficiently the company collects its accounts receivable. It improved
significantly from 2.99 in 2019 to 11.06 in 2022, indicating better receivables management.
Solvency Ratios:

• Times Interest Earned:

Times interest earned assesses the company's ability to cover interest expenses. While the ratio
fluctuated, it remained close to 1.0, suggesting a minimal margin of safety regarding interest
payments.

• Debt to Asset Ratio:

This ratio reflects the company's financial leverage. The ratio has decreased over the years, from
0.752 in 2019 to 0.625 in 2022, indicating a reduction in financial risk and a stronger balance
between debt and equity.

In summary, Bashundhara Paper Mills Limited has shown improvements in profitability, liquidity,
and solvency over the five-year period. The company's ability to convert revenue into profit has
improved, and it has managed its liquidity and debt levels more effectively. However, some ratios
still indicate room for improvement, such as ROCE and times interest earned. Further analysis and
context specific to the industry and company goals are essential to fully assess the company's
financial health and performance.
 Intercompany Analysis
Current Ratio Comparison
Current Ratio
6

0
2018 2019 2020 2021 2022

Khulna Printing and Packaging Ltd Bashundhara Paper Mills Ltd

The current ratios for Khulna Printing and Packaging Ltd (KPPL) and Bashundhara Paper Mills
Ltd (BPML) over a five-year period. The current ratio is a measure of a company's short-term
liquidity and its ability to meet its short-term obligations with its current assets. A higher current
ratio generally indicates better liquidity. Let's analyze the comparison:

Khulna Printing and Packaging Ltd (KPPL):

KPPL's current ratio was 3.26 in 2018, indicating that it had 3.26 times more current assets than
current liabilities. This suggests strong short-term liquidity.
The current ratio continued to increase in the following years, reaching 4.88 in 2019 and 5.01 in
2020, which indicates a significant improvement in liquidity.
In 2021, the current ratio decreased to 1.43, but it remained above 1, indicating that KPPL still had
more current assets than current liabilities.
In 2022, the current ratio further decreased to 0.69, which is still above 1 but suggests a decline in
liquidity compared to the previous years.

Bashundhara Paper Mills Ltd (BPML):

BPML's current ratio was 1.1 in 2018, indicating that it had just enough current assets to cover its
current liabilities.
The current ratio increased in the following years, reaching 1.16 in 2019, 1.46 in 2020, and 1.66
in 2021, suggesting an improvement in short-term liquidity.
In 2022, BPML's current ratio decreased to 1.47, which still indicates a relatively good level of
liquidity.

Comparison:

KPPL consistently had a much higher current ratio compared to BPML over the five-year period.
This suggests that KPPL had stronger short-term liquidity and was better positioned to meet its
short-term obligations.

BPML's current ratio also improved over the years, indicating a positive trend in liquidity, but it
remained lower than KPPL's current ratio in each year.

A very high current ratio may also indicate that a company is not efficiently utilizing its current
assets. Therefore, while KPPL's liquidity position appears strong, it's essential to consider other
financial metrics and industry-specific factors when making an investment decision. Additionally,
individual investment decisions should align with your specific investment goals and risk
tolerance.
 Quick Ratio Comparison
Quick Ratio
3

2.5

1.5

0.5

0
2018 2019 2020 2021 2022

Bashundhara Paper Mills Ltd Khulna Printing and Packaging Ltd

The quick ratios for Bashundhara Paper Mills Ltd (BPML) and Khulna Printing and Packaging
Ltd (KPPL) over a five-year period. The quick ratio, also known as the acid-test ratio, is a more
stringent measure of a company's short-term liquidity. It assesses a company's ability to cover its
short-term obligations with its most liquid current assets (typically excluding inventory). A higher
quick ratio indicates better short-term liquidity. Let's analyze the comparison:

Bashundhara Paper Mills Ltd (BPML):

BPML's quick ratio was 0.49 in 2018, indicating that it had $0.49 of highly liquid assets for every
$1 of short-term liabilities.
The quick ratio increased to 0.52 in 2019, suggesting a slight improvement in short-term liquidity.
In 2020, the quick ratio decreased to 0.39, indicating a decline in liquidity.
In 2021, the quick ratio further declined to 0.34.
In 2022, the quick ratio continued to decrease to 0.32, which indicates a reduced ability to cover
short-term liabilities with highly liquid assets.
Khulna Printing and Packaging Ltd (KPPL):

KPPL's quick ratio was significantly higher than BPML's in all years, indicating stronger short-
term liquidity.
In 2018, KPPL's quick ratio was 1.53, which was much higher than BPML's.
The quick ratio further increased to 2.01 in 2019, indicating improved liquidity.
In 2020, KPPL's quick ratio reached 2.68, suggesting excellent short-term liquidity.
However, in 2021, the quick ratio decreased to 1.22, but it remained relatively high.
In 2022, KPPL's quick ratio further decreased to 0.48 but still remained higher than BPML's.

Comparison:

KPPL consistently had a significantly higher quick ratio compared to BPML over the five-year
period. This suggests that KPPL had a stronger ability to cover its short-term liabilities with highly
liquid assets, even in 2022 when both companies saw a decrease in the quick ratio.

BPML's quick ratio decreased over the years, indicating a decline in short-term liquidity, while
KPPL's quick ratio, while fluctuating, remained relatively high, especially in the earlier years.

It's important to consider that a high quick ratio does not always mean better financial health, as it
depends on the industry and business model. However, a consistently high quick ratio indicates
strong liquidity, which can be a positive financial indicator. When making an investment decision,
consider other financial metrics and industry-specific factors as well. Individual investment
decisions should align with your specific investment goals and risk tolerance.
 Accounts Receivable Turnover
Accounts Receivable Turnover
14

12

10

0
2018 2019 2020 2021 2022

Bashundhara Paper Mills Ltd Khulna Printing and Packaging Ltd

The accounts receivable turnover ratios for Bashundhara Paper Mills Ltd (BPML) and Khulna
Printing and Packaging Ltd (KPPL) over a five-year period. The accounts receivable turnover ratio
measures how efficiently a company collects payments from its customers. A higher turnover ratio
is generally more favorable as it indicates that the company is collecting payments more quickly.
Let's analyze the comparison:

Bashundhara Paper Mills Ltd (BPML):

BPML's accounts receivable turnover ratio was 4.34 in 2018, indicating that the company collected
payments approximately 4.34 times during the year.
In the following years, BPML's accounts receivable turnover ratio decreased, reaching its lowest
point of 2.99 in 2019.
However, the ratio improved in 2020 to 6.08 and further increased in 2021 to 12.09, suggesting a
significant improvement in collecting payments efficiently.
In 2022, BPML's accounts receivable turnover ratio remained high at 11.06, indicating continued
efficiency in collecting payments.
Khulna Printing and Packaging Ltd (KPPL):

KPPL's accounts receivable turnover ratio was lower than BPML's in all years.
In 2019, KPPL's accounts receivable turnover ratio was 1.13, indicating a relatively slower
collection of payments compared to BPML.
The ratio improved in 2020 to 3.56, suggesting better efficiency in collecting payments.
However, in 2021, KPPL's accounts receivable turnover ratio decreased to 1.66, indicating a
slowdown in payment collection.
In 2022, the ratio significantly dropped to 0.01, which suggests that KPPL may have faced
challenges in collecting payments efficiently during that year.

Comparison:

BPML consistently had higher accounts receivable turnover ratios compared to KPPL over the
five-year period. This indicates that BPML was more efficient in collecting payments from
customers.

While BPML showed fluctuations in its turnover ratios, it managed to significantly improve its
efficiency in 2020 and 2021.

KPPL, on the other hand, experienced fluctuations and a significant drop in its accounts receivable
turnover ratio in 2022, which may be a point of concern.

Efficient accounts receivable turnover reflects better cash flow management and the ability to
convert sales into cash quickly. A higher ratio indicates improved liquidity. When making an
investment decision, consider other financial metrics, industry-specific factors, and business
models. Individual investment decisions should align with your specific investment goals and risk
tolerance.
 Profit Margin
Profit Margin
10

-5

-10

-15

-20
2018 2019 2020 2021 2022

Bashundhara Paper Mills Ltd Khulna Printing and Packaging Ltd

The profit margins for Bashundhara Paper Mills Ltd (BPML) and Khulna Printing and Packaging
Ltd (KPPL) over a five-year period. The profit margin is a key financial metric that measures a
company's profitability by assessing the percentage of each dollar of revenue that represents profit.
A higher profit margin is generally more favorable. Let's analyze the comparison:

Bashundhara Paper Mills Ltd (BPML):

BPML's profit margin was 6.41% in 2018, indicating that the company generated a profit equal to
6.41% of its total revenue.
The profit margin decreased in the following years, reaching its lowest point of 2.64% in 2019.
BPML managed to improve its profitability in 2020, with a profit margin of 3.35% and further
increased it to 4.43% in 2021.
In 2022, BPML's profit margin continued to improve, reaching 4.52%, suggesting a positive trend
in profitability.
Khulna Printing and Packaging Ltd (KPPL):

KPPL's profit margin was generally lower than BPML's throughout the five-year period.
In 2018, KPPL had a profit margin of 3.24%, which was lower than BPML's for that year.
The profit margin decreased in 2019 to 1.21% and turned negative (-0.056%) in 2020, indicating
a period of losses.
The negative profit margin persisted in 2021, reaching -0.643%.
In 2022, KPPL's profit margin significantly worsened, dropping to -16.253%, which suggests
substantial losses.

Comparison:

BPML consistently had a higher profit margin compared to KPPL over the five-year period,
indicating better profitability.

BPML experienced fluctuations in its profit margin but managed to improve its profitability over
the years.

In contrast, KPPL faced challenges, as it reported negative profit margins in 2020, 2021, and a
significantly worse margin in 2022.

The sharp decline in KPPL's profit margin in 2022 to -16.253% is a point of concern and may
warrant further investigation. BPML, on the other hand, showed a more stable and positive trend
in profitability.
 Earning per share (EPS)
EPS
16
14
12
10
8
6
4
2
0
2018 2019 2020 2021 2022

Bashundhara Paper Mills Ltd Khulna Printing and Packaging Ltd

The Earnings Per Share (EPS) for Bashundhara Paper Mills Ltd (BPML) and Khulna Printing and
Packaging Ltd (KPPL) over a five-year period. EPS is a crucial financial metric that indicates a
company's profitability on a per-share basis. A higher EPS is generally more favorable, as it
suggests higher profitability. Let's analyze the comparison:

Bashundhara Paper Mills Ltd (BPML):

BPML's EPS in 2018 was 4.63, indicating that the company earned 4.63 Taka per share in that
year.
The EPS decreased in 2019 to 1.68 but improved in 2020 to 1.64.
BPML's EPS further increased to 2.37 in 2021, reflecting improved profitability.
In 2022, BPML's EPS continued to rise, reaching 2.92, suggesting a positive trend in earnings per
share.
Khulna Printing and Packaging Ltd (KPPL):

KPPL's EPS showed significant variations over the five-year period.

In 2019, KPPL reported a high EPS of 4.29, indicating strong earnings per share.
In 2020, KPPL's EPS surged to 14.79, suggesting a substantial increase in profitability.
However, in 2021, the EPS dropped to 7.13, although it remained at a relatively high level.
In 2022, KPPL's EPS decreased significantly to 0.02, indicating a substantial decline in earnings
per share.

Comparison:

BPML consistently reported positive EPS over the five-year period, with an increasing trend in
recent years. This suggests a stable and improving financial performance.

KPPL, on the other hand, showed significant fluctuations in its EPS. While it reported high EPS
values in 2019 and 2020, the EPS dropped in 2021 and experienced a substantial decline in 2022.

The substantial decline in KPPL's EPS in 2022 to 0.02 is a point of concern and may warrant
further investigation.
 Times interest earned
Times interest earned
4

-2

-4

-6

-8

-10
2018 2019 2020 2021 2022

Bashundhara Paper Mills Ltd Khulna Printing and Packaging Ltd

The Times Interest Earned (TIE) ratios for Bashundhara Paper Mills Ltd (BPML) and Khulna
Printing and Packaging Ltd (KPPL) over a five-year period. The TIE ratio measures a company's
ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher
TIE ratio is generally more favorable, as it indicates a better ability to meet interest obligations.
Let's analyze the comparison:

Bashundhara Paper Mills Ltd (BPML):

BPML's TIE ratio remained relatively stable over the five-year period.
In 2018, the TIE ratio was 1.6, indicating that the company's EBIT was 1.6 times its interest
expenses.
The TIE ratio fluctuated slightly but generally remained above 1.0 in the subsequent years,
indicating that BPML was able to cover its interest expenses.
Khulna Printing and Packaging Ltd (KPPL):

KPPL's TIE ratio showed significant fluctuations over the five-year period and at times fell below
1.0, which is a concerning sign.
In 2018, the TIE ratio was negative (-0.29864278), indicating that KPPL's interest expenses
exceeded its EBIT, which is not a favorable position.
In 2019, the TIE ratio further decreased to -1.109783044, indicating a more significant deficit in
covering interest expenses.
While the TIE ratio improved in 2020 to a positive value (0.728267721), it remained below 1.0,
suggesting a limited ability to cover interest expenses.
However, in 2021 and 2022, the TIE ratio deteriorated significantly, reaching -8.411453825 and -
7.185414327, respectively, indicating severe difficulties in covering interest expenses.

Comparison:

BPML maintained a TIE ratio above 1.0 throughout the five-year period, indicating a generally
healthy ability to cover interest expenses.

In contrast, KPPL's TIE ratio showed substantial fluctuations and frequently fell below 1.0,
indicating a concerning ability to meet interest obligations. The negative TIE ratios in 2018 and
2019 are particularly alarming.

The significant decline in KPPL's TIE ratio in 2021 and 2022 suggests severe financial distress
and challenges in servicing its debt.
 Debt to asset ratio
Debt to asset ratio
1.4

1.2

0.8

0.6

0.4

0.2

0
2018 2019 2020 2021 2022

Bashundhara Paper Mills Ltd Khulna Printing and Packaging Ltd

The Debt to Asset ratios for Bashundhara Paper Mills Ltd (BPML) and Khulna Printing and
Packaging Ltd (KPPL) over a five-year period. The Debt to Asset ratio is a financial metric that
assesses the proportion of a company's assets financed by debt. A lower Debt to Asset ratio is
generally more favorable, as it indicates lower financial leverage and lower risk. Let's analyze the
comparison:

Bashundhara Paper Mills Ltd (BPML):

BPML's Debt to Asset ratio remained relatively stable over the five-year period.
In 2018, the ratio was 0.6987, indicating that approximately 69.87% of the company's assets were
financed by debt.
The ratio increased slightly in 2019 to 0.7522 but then decreased in 2020 to 0.7195.
BPML's Debt to Asset ratio continued to decrease in 2021 to 0.7177 and further to 0.6250 in 2022.
Khulna Printing and Packaging Ltd (KPPL):

KPPL's Debt to Asset ratio also showed variations over the five-year period but generally increased
over time.
In 2018, the ratio was 0.3454, indicating that approximately 34.54% of KPPL's assets were
financed by debt.
The ratio increased in 2019 to 0.3690 and continued to rise in 2020 to 0.3852.
In 2021, KPPL's Debt to Asset ratio increased significantly to 0.8759, suggesting a higher
proportion of assets financed by debt.
The ratio further increased in 2022 to 1.2982, indicating a substantial increase in debt relative to
assets.

Comparison:

BPML maintained a relatively stable and lower Debt to Asset ratio, which suggests lower financial
leverage and a more conservative approach to debt financing. The decreasing trend in recent years
is generally positive.

KPPL's Debt to Asset ratio started lower but increased consistently over the five-year period. The
significant increase in 2021 and 2022 suggests a higher reliance on debt financing, which may
pose increased financial risk.
 Recommendations

Based on the analysis of the financial data for Khulna Printing and Packaging Limited (KPPL) and
Bashundhara Paper Mills Limited (BPML), here are some recommendations:

Recommendation for Investment (Excluding COVID Impact):

Bashundhara Paper Mills Limited (BPML):

BPML appears to be a more stable and financially sound company based on the provided financial
metrics.
BPML has demonstrated a consistent ability to cover interest expenses with a TIE ratio consistently
above 1.0. This indicates a healthy ability to meet debt obligations.
The Debt to Asset ratio for BPML has been relatively stable and lower compared to KPPL,
suggesting a more conservative approach to debt financing.
BPML has shown a positive trend in terms of Net Margin, indicating consistent profitability over
the years.

Khulna Printing and Packaging Limited (KPPL):

KPPL has shown significant fluctuations in several financial metrics, including TIE ratios and
Debt to Asset ratios, indicating a higher degree of financial instability.
The TIE ratio for KPPL has frequently fallen below 1.0, which raises concerns about its ability to
cover interest expenses.
The Debt to Asset ratio for KPPL has been on an increasing trend, indicating a higher reliance on
debt financing.
KPPL has faced challenges in terms of Net Margin, with negative margins in recent years.
Recommendation (Considering COVID Impact):

It's important to note that both companies may have been affected by the COVID-19 pandemic,
which could have led to unusual fluctuations in their financial performance. In this case, a cautious
approach is advised, and further research into the companies' resilience and adaptability to external
shocks should be conducted.

General Investment Considerations:

Both companies have their unique financial profiles, and investment decisions should align with
your risk tolerance and investment goals.
Conduct a thorough analysis of each company's financial health, competitive positioning, industry
outlook, and management quality.
Consider conducting a comprehensive risk assessment, including assessing the impact of external
factors, such as regulatory changes, economic conditions, and industry-specific challenges.

Based on the provided financial data and considering the financial stability, BPML appears to be
a more secure and conservative investment option.
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