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Aci Financial Performance Analysis

In: Business and Management

Submitted By arafatbnk
Words 10980
Pages 44
Chapter 1

Introduction

1.0 Introduction

Financial analysis and performance evaluation of a company are vital facts for any company in today’s world. It includes different aspects of the company. This analysis assesses the viability, stability and profitability of the company. At some level every business decision involves financial analysis and valuation. Outside the firm, security analysts conduct financial analysis and valuation to support their buy/sell decision. This is necessary to price an initial public offering and to inform parties to sale, estate settlements, and divisions of property involving ongoing business concerns. Even credit analysts, who typically do not explicitly estimate firm value, must at least implicitly consider the value of the firm’s equity “cushion” if they are to maintain a complete view of the risk associated with lending activity. One of the aims of this study involves the use of analysis and valuation in order to know about the company’s current financial situation. Another aim of this report is to point out whether the share price of the company is overpriced/underpriced/accurately priced.

ACI Limited was established as the subsidiary of Imperial Chemical Industries (ICI) in the then East Pakistan in 1968. After independence, the company was incorporated in Bangladesh in 1973 as ICI Bangladesh Manufacturers limited as a Public Limited Company. In 1992, the company was divested to local management and the name of the company changed to Advanced Chemical Industries (ACI) Limited. The Company has diversified business interest in pharmaceuticals, agricultural including fishery & livestock and consumer brands. At present, ACI has three Strategic business units along with 11 Subsidiaries, 3 Joint ventures and 1 Associate. ACI is a fast growing company that has substantial contribution in the economy of Bangladesh. As it is continuing…...

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