report

1. EXECUTIVE SUMMARY
A few comments on the organization and content of the report may be helpful to reader.
In doing so, I realize that some topics may be more important to some reader then to
other. For that reason, we have some advanced material appears in appendices. Our goal
is to help the reader who must compare financial position of these two companies.
First I focused on the essential element of this report. I have included here the
introduction of this report, objectives of the report, findings, methodology, so that the
reader can get ideas easily.
The second part is very important from the sense of this report. Here we have given our
recommendation of the report. We have tried out level best to give the commendation
neutrally. It also contains the conclusion of this report.
Introduction
This report is based on compare of two companies’ financial situation. It has been
prepared by me for the Financial Management Course (BBA-223).
This is based on two companies’ financial position which is helpful for the companies
and us to know the real situation.
Objective of Report
This term paper is prepared under submitted as a major requirement of the Financial
Management Course. Financial Management provides the facts needed to make informed
economic as well as operational control.

2. NABISCO BUSCUIT
Bhaia Group of Industries
BALANCE SHEET
AS AT 30 JUNE 2007

3. PARTICULARS 30 JUNE 2007 30 JUNE 2006
Increase/(Decrease)
Amount %
Assets
Current Assets:
inventory
Trade Debtors
Advance, Deposits &
prepayments
Cash & Cash Equivalents
Total Current Assets
Property, Plant &
Equipment:
Property, Plant &
Equipment
Investments (at cost)
Total Property, Plant &
Equipment
Total Assets
Liabilities & Owners’
Equity
Current Liabilities:
Current Portion of Long-
Term Loan
Short-Term Loan from
Bank(secured)
Liabilities for Goods
Liabilities for Expense
Liabilities for Others
Finance
Interest Payable
Workers’ Profit
Participation an Welfare
Funds
Income Tax Payable
Unclaimed Dividend
Total Current
Liabilities
Long Term Liabilities
Deferred Tax Liability
Long-Term Debt
Total Long Term
484,200,145
44,242,900
128,644,738
16,173,069
673,260,852
234,925,685
15,000,000
249,925,685
923,186,537
21,709,923
409,262,567
12,666,636
8,618,255
31,244
364,776
4,937,086
9,692,931
2,090,922
469,374,340
18,608,990
92,488,846
483,346,039
59,711,981
100,749,301
32,660,159
676,467,480
265,240,679
15,280,000
280,520,679
956,988,159
50,102,521
413,406,543
12,723,372
7,339,692
15,850
817,653
3,534,006
6,519,324
1,810,717
496,269,678
18,790,827
113,999,905
854,106
0.18%
(15,469,081)
(25.91%)
27,895,437
(16,487,090)
(3,206,628)
(30,314,994)
(280,000)
(30,594,994)
(33,801,622)
(28,392,598)
(4,143,976)
(56,736)
1,278,563
15,394
(452,877)
1,403,080
3,173,607
280,205
(26,895,338)
(181,837)
(21,511,059)
0.18%
(25.91%)
27.69%
(50.48%)
(0.47%)
(11.43%)
(1.83%)
(10.91%)
(3.53%)
(56.67%)
(1.00%)
(0.45%)
17.42%
97.12%
(55.39%)
39.70%
48.68%
15.47%
(5.42%)
(0.97%)
(18.87%)

4. NABISCO BUSCUIT
Bhaia Group of Industries
Income Statement

5. Olympic Biscuits
BALANCE SHEET
AS AT 30 JUNE 2007
PARTICULARS 30 JUNE 2007 30 JUNE 2006
Increase/(Decrease)
Amount %
Sales
Less: Cost of Goods Sold
Gross Profit
Less: Expense
Administration & Selling
Expense
Financial Expense
Total operating expense
Operating profit
Less: contribution to
worker’s participation &
welfare fund
Net profit before
taxation
Less: provision for tax
current tax
Deferred tax
Total provision for tax
Total profit after
taxation
985,454,208
(761,332,926)
224,121,282
(92,570,466)
(90,559,523)
(183,129,989)
40,991,293
(2,049,564)
38,941,729
(3,173,607)
181,837
(2,991,770)
35,949,959
925,498,835
(715,867,802)
209,631,033
(87,462,613)
(87,723,138)
(175,185,751)
34,445,282
(1,722,264)
32,723,018
(2,979,638)
(411,967)
(3,391,605)
29,331,413
59,955,373
(45,465,124)
14,490,249
(5,107,853)
(2,836,385)
(7,944,238)
6,546,011
(327,300)
6,218,711
(193,969)
(230,130)
(399,835)
6,618,546
6.48%
(6.35%)
6.91%
(5.84%)
(3.23%)
(4.53%)
19.00%
(19.00%)
19.00%
(6.51%)
55.86%
(11.79%)
22.56%

7. PARTICULARS 30 JUNE 2007 30 JUNE 2006
Increase/(Decrease)
Amount %
Assets
Current Assets:
Inventories
Sundry Debtors
Advance, Deposits &
prepayments
Cash & Cash Equivalents
Total Current Assets
Property, Plant &
Equipment:
Property, Plant &
Equipment (at cost)
Capital Work in Progress
Deferred Expense
Investment
Total Property, Plant &
Equipment
Total Assets
Liabilities & Owners’
Equity
Current Liabilities:
Loans
Interest Payable
Creditors’ for Goods
Creditors’ for Service
Accrued Expense
Advance Against Sales
Liabilities For Others
Finance
Lease Finance Current
Portion
Provision for Taxation
Unclaimed Dividend
Total Current
Liabilities
Long Term Liabilities
Long-Term Loan
(Secured)
Lease Finance Long-
Term
179,325,915
17,788,091
237,955,932
57,878,355
492,948,293
138,046,233
45,160,282
23,786,916
65,470,628
272,464,059
765,412,352
83,937,863
000
92,190,262
5,400,864
21,405,233
35,354,846
20,593,612
13,276,268
43,562,396
8,653,274
324,374,618
33,688,476
58,386,887
194,869,092
13,624,565
180,007,188
34,156,459
422,657,304
141,230,308
1,962,527
34,029,086
65,470,628
242,692,549
665,349,853
73,465,476
919,471
87,049,603
6,664,564
14,231,005
15,843,952
17,526,579
9,469,764
26,115,499
10,627,329
261,913,242
55,625,819
28,032,109
(15,543,177)
4,163,526
57,948,744
23,721,896
70,290,989
(3,184,075)
43,197,755
(10,242,170)
000
29,771,510
100,062,499
10,472,387
(919,471)
5,140,659
(1,263,700)
7,174,228
19,510,894
3,067,033
3,806,504
17,446,897
(1,974,055)
62,461,376
(21,937,343)
30,354,778
(7.98%)
30.56%
32.19%
69.45%
16.63%
(2.25%)
2201.13%
(30.10%)
0.00%
12.27%
15.04%
14.25%
(100.00%)
5.91%
(18.96%)
50.41%
123.14%
17.50%
40.20%
66.81%
(18.58%)
23.85
(39.44%)
108.29%

8. Olympic Biscuits
Income Statement

9. NABISCO Biscuits
Ratio Analysis:
PARTICULARS 30 JUNE 2007 30 JUNE 2006
Increase/(Decrease)
Amount %
Sales
Less: Cost of Goods Sold
Gross Profit
Less: Operating Expense
Administration Expense
Selling Expense
Financial Expense
Total operating expense
Operating profit
Add: Non Operating
Income
Less: contribution to
worker’s participation &
welfare fund
Net profit/(Loss) before
taxation
Less: provision for tax
current tax
Deferred tax
Total provision for tax
Total profit/(Loss) after
taxation
1,460,110,761
(1,172,379,583)
287,731,178
(54,637,366)
(152,652,576)
(28,880,513)
(236,170,455)
51,560,723
14,258,518
(3,134,250)
62,684,991
(17,446,897)
51,096
(17,395,801)
45,289,190
1,058,698,614
(868,041,025)
190,657,589
(43,293,940)
(90,267,081)
(33,776,121)
(167,337,151)
23,320,438
23,031,025
(2,207,213)
44,144,250
(13,222,191)
1,650,944
(11,571,247)
32,573,003
401,412,147
(304,338,558)
97,073,589
(11,343,417)
(62,385,495)
(4,895,608)
(68,833,304)
28,240,285
(8,772507)
(927,037)
18,540,741
(4,224,706)
(1,599,848)
(5,824,554)
12,716,187
37.92%
(35.06%)
50.92%
(26.20%)
(69.11%)
(44.49%)
(41.13%)
221.10%
(38.09%)
(42.00%)
42.00%
(31.95%)
(96.91%)
50.34%
39.04%

10. 30 June 2007
Current Assets
1. Current Ratio =
Current Liabilities
673,260,852
=
469,374,340
= 1.43:1
Current asset - Inventory
2. Quick Ratio =
Current Liabilities
673260852-484,200,145
=
469,374,340
189,060,707
=
469,374,340
= 0.40:1
Net Credit Sales
3. Receivable Turnover =
Account Receivable
985,454,208
=
44,242,900
= 22.27 Times
Cost of Goods Sold
4. Inventory Turnover =
Inventory
761,332,926
=

11. 484,200,145
= 1.57 Times
EBIT
5. Profit Margin = *100
Net Sales
40,991,293
= *100
985,454,208
= 4.16%
Net Income
6. Return on Assets = *100
Net Assets
35,949,959
= *100
923,186,537
= 3.89%
7. Return on Common Stockholders’ Equity
Net Income
= *100
Common Stockholders’ Equity
35,949,959
= *100
342,714,361
= 10.49%

12. Market Price per Share of Stock
8. Price-Earnings =
Earnings per Share
100
=
$2.25
= 44.44
Cash Dividends
9. Payout Ratio =
Net Income
22,400,000
=
35,949,959
= 0.62:1
Profit after tax
10. Net Profit margin =
Sales
35,949,959
=
985,454,208
= 3.65%
Total Debt
11. Total Equity =
Total Equity
580,472,176
=

13. 342,714,361
= 1.69:1
Olympic Biscuits
Ratio Analysis
30 June 2007
Current Assets
1. Current Ratio =
Current Liabilities
492,948,293
=
324,374,618
= 1.52:1
Current Asset - Inventory
2. Quick Ratio =
Current Liabilities
492,948,293 - 179,325,915
=
324,374,618
313,622,378
=
324,374,618
= 0.97:1
Net Credit Sales
3. Receivable Turnover =
Account Receivable
1,460,110,761
=

14. 17,788,091
= 82.08 Times
Cost of Goods Sold
4. Inventory Turnover =
Average Inventory
1,172,379,583
=
179,325,915
= 6.54 Times
Net Income
5. Profit Margin = *100
Net Sales
45,289,190
= *100
1,460,110,761
= 3.10%
Net Income
6. Return on Assets = *100
Total Assets
45,289,190
= *100
765,412,352
= 5.92%
7. Return on Common Stockholders’ Equity

15. Net Income
= *100
Common Stockholders’ Equity
45,289,190
= *100
322,651,549
= 14.04%
Total Debt
8. Debt to Total Asset Ratio = *100
Total Assets
442,760,803
= *100
765,412,352
= 57.85%
NABISCO Biscuits
Ratio Analysis:
30 June 2006
Current Assets
1. Current Ratio =
Current Liabilities
676,467,480
=
496,269,678
= 1.36:1
Current asset- Inventory
2. Quick Ratio =
Current Liabilities
676,467,480-483,346,039

16. =
496,269,678
193,121,441
=
469,374,340
= 0.39:1
Net Credit Sales
3. Receivable Turnover =
Account Receivable
925,498,835
=
59,711,981
= 15.50 Times
Cost of Goods Sold
4. Inventory Turnover =
Average Inventory
715,867,802
=
483,346,039
= 1.48 Times
EBIT
5. Profit Margin = *100
Net Sales
34,445,282
= *100
925,498,835
= 3.72%

17. Net Income
6. Return on Assets = *100
Total Assets
29,331,413
= *100
956,988,159
= 3.82%
7. Return on Common Stockholders’ Equity
Net Income
= *100
Common Stockholders’ Equity
29,331,413
= *100
327,927,745
= 8.95%
Market Price per Share of Stock
8. Price-Earnings =
Earnings per Share
100
=
$2.25
= 44.44
Cash Dividends
9. Payout Ratio =

18. Net Income
20,800,000
=
29,331,413
= 0.71:1
Profit after tax
10. Net Profit Margin =
Sales
29,331,413
=
925,498,835
= 3.17%
Total Debt
11. Total Equity =
Total Equity
602,060,610
=
327,927,745
= 1.84:1
Olympic Biscuits
Ratio Analysis
30 June 2006
Current Assets
1. Current Ratio =

19. Current Liabilities
422,657,304
=
261,913,242
= 1.61:1
Current Asset - Inventory
2. Quick Ratio =
Current Liabilities
422,657,304 – 194,869,092
=
261,913,242
1,058,698,614
=
261,913,242
= 0.87:1
Net Credit Sales
3. Receivable Turnover =
Account Receivable
1,058,698,614
=
13,624,565
= 77.71 Times
Cost of Goods Sold
4. Inventory Turnover =
Inventory
868,041,025
=

20. 194,869,092
= 4.45 Times
Net Income
5. Profit Margin = *100
Net Sales
32,573,003
= *100
1,058,698,614
= 3.08%
Net Income
6. Return on Assets = *100
Total Assets
32,573,003
= *100
665,349,853
= 4.90%
7. Return on Common Stockholders’ Equity
Net Income
= *100
Common Stockholders’ Equity
32,573,003
= *100
296,385,495
= 10.99%

21. Total Debt
8. Debt to Total Asset Ratio = *100
Total Assets
368,964,358
= *100
665,349,853
= 55.45%
Current Ratio
Current Ratio Nabisco Biscuit Olympic Biscuits
2007 1.43:1 1.52:1
2006 1.36:1 1.61:1
Nabisco 2007 Olympic 2007 Nabisco 2006 Olympic 2006
1.43
1.52
1.36
1.61
CURRENT RATIO
Current Ratio
Quick Ratio

22. Quick Ratio Nabisco Biscuit Olympic Biscuit
2007 0.40:1 0.97:1
2006 0.39:1 0.87:1
Nabisco 2007 Olympic 2007 Nabisco 2006 Olympic 2006
0.4
0.97
0.39
0.87
QUICK RATIO
Quick Ratio
Receivable Turnover
Receivable Turnover Nabisco Biscuit Olympic Biscuits
2007 22.27 82.08
2006 15.50 4.45

23. Nabisco
2007
Olympic 2007 Nabisco 2006 Olympic 2006
4.3
2.5
3.5
4.5
RECEIVABLE TURNOVER
Receivable Turnover
Inventory Turnover
Inventory Turnover Nabisco Biscuit Olympic Biscuits
2007 1.57 6.54
2006 1.48 4.45
Nabisco 2007 Olympic 2007 Nabisco 2006 Olympic 2006
1.57
6.54
1.48
4.45
INVENTORYTURNOVER
Inventory Turnover
Profit Margin

24. Profit Margin Nabisco Biscuit Olympic Biscuits
2007 4.16 3.10
2006 3.72 3.08
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Nabisco 2007 Olympic 2007 Nabisco 2006 Olympic 2006
4.16
3.1
3.7
3.08
Profit Margin
Return on Assets
Return on Assets Nabisco Biscuit Olympic Biscuits
2007 3.89 5.92
2006 3.82 4.90

25. Nabisco 2007 Olympic 2006 Nabisco 2007 Olympic 2006
3.89
5.92
3.82
4.9
RETURN ON ASSETS
Return on Assets
Return on Common Stockholders’ Equity
Return on Common
Stockholders’ Equity
Nabisco Biscuit Olympic Biscuits
2007 10.49 14.04
2006 8.95 10.99
Nabisco 2007 Olympic 2006 Nabisco 2007 Olympic 2006
10.49
14.04
8.95
10.99
RETURN ON COMMONSTOCKHOLDERS’
EQUITY
Return on CommonStockholders’ Equity