Olympic Industry Limited 5 years financial analysis...Niloy

1. A Report on OLYMPIC INDUSTRIES LIMITED.
2012-
2016
5th
April, 2017

2. 2 BBA - FIN – 54 (A)
Course Title: Corporate Finance
Course Code: FIN 431
Submitted to:
Mahjabeen Ferdous
Department of Business Administration
Stamford University Bangladesh
Submitted By:
Niloy Saha
BBA 054 16669
Rimon Khan
BBA 054 16679
Saiful Islam Saif
BBA 054 16695
Md. Rabiul Awal
BBA 042 13437
Stamford University Bangladesh
Debt’ of Business Administration
Program - BBA

3. 3 BBA - FIN – 54 (A)
Title: A REPORT ON OLYMPIC
INDUSTRIES LIMITED

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Letter of TRANSMITTAL
5th April, 2017
Mahjabeen Ferdous
Department of Business Administration
Stamford University Bangladesh
Subject: Submission of a Report on OLYMPIC INDUSTRIES LIMITED
Dear Madam,
It is indeed a great pleasure for us to be able to hand over the result of our hardship of the
FIN report on OLYMPIC INDUSTRIES LIMITED. This report is the result of the knowledge which
has been acquired from the respective course.
We tried our level best for preparing this report. The information of this report is mainly based
on Internet information. Some other details were gathered from the Web-side of that
company. All of us gave our hundred percent for making this report come together.
We, fervently hope that you will find this plan worth reading. Please feel free for any Query or
clarification that you would like us to explain. Hope you will appreciate our hard work and
excuse the minor errors. Thanking you for your cooperation.
Thanking You,
Yours Sincerely
For Stamford University Bangladesh.
 Niloy Saha
BBA 054 16669
 Rimon Khan
BBA 054 16679
 Saiful Islam Saif
BBA 054 16695
 Md. Rabiul Awal
BBA 042 13437

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Acknowledgment
In real sense, a project is a combined effort of student skill and knowledge under the precious
guidance of their experience and kind guidance of their training staff .Thus any project cannot
be accomplished to one’s satisfaction without proper guidance and the total cooperation of all
those involved in the project .So we are very thankful to the kind persons who have helped us
immensely during our whole BBA. At first we express our deep gratitude and sincere thanks to
God for providing us sufficient strength to make this repot successfully and also our respected
faculty Mahjabeen Ferdous for her valuable guidance interest and consistent encouragement to
us in the preparation of this project report. Then comes the contribution made by all those
respondents (employees) who attended the survey. Without their valuable input, this report
and research could not have been successful. Also, the co-operation of my group member, who
guided properly to get the information’s.
We also want to extend our greatest thanks to all those who are associated and contributed in
this project.

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Executive summary
Fundamental analysis of a business involves analyzing its financial statements and health, its
management and competitive advantages, and its competitors and markets. Fundamental
analysis is performed on historical and present data, but with the goal of making financial
forecasts .Fundamental analysis constitutes of conducting company stock valuation and
predicts its probable price evolution, making a projection on its business performance,
evaluating its management and make internal business decisions, calculating its credit risk. It
focuses exclusively on the company's business in order to determine whether or not the stock
should be bought or sold. The other major argument against fundamental analysis is more
practical than theoretical. These critics charge that fundamental analysis is too unscientific a
process, and that it's difficult to get a clear picture of a company's value when there are so
many qualitative factors such as a company's management and its competitive landscape.
However for practical practice we worked on Olympic industries Limited for its fundamental
analysis. We analyzed the competitive situation of the company and its price pressure in the
market environment. The way the financial position of the company is influenced by other
internal and external factors is analyzed through fundamental analysis. We calculated the ratio
that assisted to compare it financial position against some other variables. Ratio analysis
described the strength, profitability return of the company .By fundamental analysis we
calculated the intrinsic value of the Olympic industries limited which is calculated based on the
financial data given 2011-2016. Moreover we forecasted the particulars of financial statements
from 2012-2016. The derived intrinsic value is then compared to the market to take buy and sell
decision.

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Table of Content…
NO Topic
Page
Number
I. Company Overview 08
II. Industry Overview 08
III. MISSION STATEMENT 09
IV. STAKEHOLDERS 11
V. EXPORTS 11
VI. BRANDS 11
VII. INVESTORS 11
VIII. SUSTAINABILITY 11
IX. MILESTONES 12
X. FOCUS AREAS 13
XI. INDUSTRY ANALYSIS 13
XII.
STATEMENT OF FINANCIAL
POSITION OF OLYMPIC
INDUSTRIES LIMITED
15
XIII.
STATEMENT OF PROFIT OR
LOSS AND OTHER
COMPREHENSIVE INCOME
16
XIV. CASH FLOW STATEMENT 17
XV. RATIO ANALYSIS 18
XVI. SALES & DISTRIBUTION 20
XVII. FACILITIES 20
XVIII. CONCLUDING REMARK 21

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OLYMPIC INDUSTRIES LIMITED
COMPANY OVERVIEW
Olympic Industries Limited was incorporated in 1979 as Bengal Carbide Limited and started its
commercial operation in 1982. The company was initially engaged in producing Dry cell Battery. Later
on, in 1996 the Company diversified its business into biscuit and confectionery items and in 2008, by
acquiring Tripti Industries Ltd., into ball pen industry. As per 2013 annual report, the Company has 6
lines of biscuit, 4 lines of confectionery item, 3 lines of ball pen and 3 lines of dry-cell battery. It also
produces biscuits under a third party manufacturing agreement with a processor in Chittagong. As on
June 30 2013, the capacity utilization of biscuit & confectionery, battery and ball pen segments were
70%, 40% and 57% respectively. The production facilities of the Company are situated at Kanchpur and
Bondar of Narayangonj. Among three business segments biscuit & confectionery unit generates 91.67%
revenue followed by battery (4.62%) and ball pen (3.71%). The Company produces Horlicks iscuits for
GlaxoSmithKline under a third-party manufacturing agreement.
It offers various products choices to customers in each revenue segment. As per the Company’s
proclamation, it is currently the market leader in the biscuit market and in second position in
the battery market in Bangladesh. It also enjoys economies of scale compared to other competitors in
the industry. The firm took initiative to export biscuits in 2013 and earn token revenue.
The Firm enlisted in the DSE and CSE in 1989 and 1996 respectively. Around 31.49% of shares of the
company are held by Sponsors whereas Institutional, General and Foreign Investors held 30.31%,
27.45% and 10.75% respectively.
INDUSTRY OVERVIEW
According to BBS data, the food manufacturing sector contributes 1.66% of Bangladesh's total GDP in
2009-10, where total production is 6,2203 MT. Over 100 automatic manufacturers and 4,500 traditional
factories are manufacturing bread and biscuits in the country. A projected market size of the automated
bread and biscuits is about BDT 2,370 core annually, except traditional bakery products. According to
Bangladesh Auto Biscuit & Bread Manufacturing Association (BABBMA), this industry is growing at 12-
15% per year. Olympic is the market leader securing around 16% market share followed by Al-Amin
(10.1%) and Pran (6.0%). Other participants .e.g., Globe, Danish, Romania, New Olympia etc. held less
than 5% each of the total market share in the auto biscuit business in Bangladesh. In dry-cell battery
industry, Quasem Drycells Limited is the pioneer in terms of Dry-Cell Manufacturing, where it has
successfully established its ‘SUNLITE’ brand as a leader and Olympic Industries Ltd. Is in the second
position in the battery market in Bangladesh.

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MISSION STATEMENT
At Olympic, we believe that being a good business means contributing to the well-being of our workers,
our customers, our community, and our planet. We want to add value by making good products which
nourish people, all the while creating jobs and contributing to the Bangladesh economy.
They aspire to
 Maintain their leadership position in the biscuit industry by producing the best quality products for
their consumers that are unique, innovative and delicious
 Protect the interest of their shareholders through fiscal prudence
 Be an employer of choice while developing future leaders for their organization and the country
 Be stewards of social responsibility in Bangladesh through our initiatives.
They believe that quality and integrity is the recipe of our success. Now the leader in the biscuit market,
we were only able to get to where we are today by staying true to our core values and by developing
new quality products we believe our customers will love.
 They believe that a good business must be sustainable. So we want to take on goals which not
only give back to society, but which also hold their to a higher standard as corporate citizens. In
order to better guide our decisions, they have tied all of our projects to the Sustainable
Development Goals set out by the United Nations. We have chosen goals which are most
applicable to our line of work and which are closest to our employees’ hearts; those which
relate to nutrition, education, equity, and climate change. We are committed to CSR for the
long-run, and we welcome accountability for our actions. We commit to producing frequent
reports which are detailed and accessible to all our stakeholders.
They are committed to making a CSR program we can all be proud of.
They are committed to providing their workers with a better life by providing them the working
conditions they deserve, and the environment that helps them thrive.

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They are committed to providing their customers with products which are both healthy and delicious.
They are committed to giving back to their community by improving food and nutrition security, and
increasing access to education.
They are committed to ensuring that their planet stays healthy and plentiful.
In undertaking all our projects, their commit to considering gender issues and to actively contribute to
the elimination of discrimination against women.
Finally, their commit to holding ourselves accountable for the way we conduct business and for the
projects we engage in. their commit to continuously monitoring and evaluating the projects that we
fund or take on.

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STAKEHOLDERS
No CSR program is honest and solid without
changes from within. A company which is serious
about corporate responsibility must commit to
making itself better first. As such, they will focus
on projects which improve the life of workers,
their close communities, and the environments
we directly affect. After the first initial years, we
plan to expand their projects outward, eventually
reaching more distant communities and
stakeholders.
EXPORTS
Olympic is the largest biscuit manufacturer in
Bangladesh. We have seven biscuit production
lines, three confectionery lines and a bakery line.
Olympic’s products are synonymous with quality,
as represented by its market share and consumer
confidence in our products. Consumers buy our products because of our dedication towards producing
healthy, safe and hygienic products.
Olympic was the first biscuit manufacturer in Bangladesh to be ISO 22000 certified. All of our production
facilities are Halal certified, audited by Halal Bangladesh. We offer a majority of our products in
multilingual packaging and can provide as much flexibility as required for your specific requirements.
BRANDS
Energy Plus, Tip and Nutty are three of the most widely sold biscuits in Bangladesh and are all premier
constituents of our product portfolio. Over the past two decades, we’ve introduced new, unique and
innovative products never offered before in Bangladesh. And our entire team is working hard to cook up
new recipes to satisfy your every craving.
INVESTORS
Olympic is publicly listed on both national stock exchanges in Bangladesh. And we’re also a constituent
of the Dhaka Stock Exchange’s DSE30 index. We’re constantly thinking of ways to make our amazing
company even better. We think we’re pretty unique and we hope you’ll think so too.
SUSTAINABILITY
Living in Bangladesh, we have experienced first hand how important sustainable practices are to a
company and to its stakeholders. We have recently committed to taking on environmental, social and
governance challenges in order to become a better corporate citizen.

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MILESTONES

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FOCUS ARES
FOOD & NUTRITION
As a food company, they are concerned with all our stakeholders' nutrition. This is why we have decided to
channel their resources toward ensuring that our workers and their families are well fed. This means more than
just calories: we aim to eradicate all forms of malnutrition, including micronutrient deficiencies.
EDUCATION
They have so many talented colleagues which do not have access to the necessary education to reach their full
potential. We aim to create jobs, ensure good working conditions, and provide our workers with the tools they
need to help themselves. As Nelson Mandela said “Education is the most powerful weapon which you can use
to change the world.”
CLIMATE CHANGE
Bangladesh is one of the countries most negatively affected by climate change. We believe that it is everyone's
responsibility to save the planet. This is why we commit to reducing our carbon footprint, as well as the effects
of climate change in Bangladesh.
GENDER EQUITY
The most productive work environments are those where men and women are treated with equity. In
Bangladesh, as in all countries, there are still many gender disparities in the workplace. We aim to bridge the
gap by considering gender in every project we undertake and implementing policies which promote equity.
Industry analysis
Strengths
 Brand building capabilities
 Diversified product range
 The depth of distribution
 Low and mid price range of the products
 Industry catering to masses.
Weaknesses
 Dependence on retailers and grocery store
 Lack of technology up gradation
Opportunities

14. 14 BBA - FIN – 54 (A)
 Bangladesh Biscuit Manufacturers Association (BBMA) estimates annual growth of around 20%
in next couple of years.
 Growing demand of Sugar free cream crackers & diet biscuits.
 A package of fiscal incentives provided by government
Threats
 Fluctuations in the prices of raw materials, transportation costs &distribution
 Entry of ITC (having very good distribution channels) in to biscuitindustry)
 Emerging local bakery products

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RATION ANALYSIS
Current ratio, also known as liquidity ratio and working capital ratio, shows the proportion of current
assets of a business in relation to its current liabilities.
Current Ratio Interpretation: Acceptable current ratio aloes vary from industry to industry. Generally, a
current ratio of 2:1 is considered to be acceptable. The higher the current ratio is, the more capable the
company is to pay its obligations. Current ratio is also affected by seasonality. There, OLYMPIC has
1.9728 which it good and show good asset.

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Z Score Comment:
X1 = Working Capital / Total Assets
X2 = Retained Earnings / Total Assets
X3 = Earnings Before Interest and Taxes / Total
Assets
X4 = Market Value of Equity / Total Liabilities
X5 = Sales / Total Assets
Z score bankruptcy model:
Z = 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + .999X5
Zones of Discrimination:
Z > 2.99 -“Safe” Zone
1.81 < Z < 2.99 -“Gray” Zone
Z < 1.81 -“Distress” Zone
Here, Olympic Industries Limited’s
companies last 5 years Z Score is more than 2.99.
so, that company is Safe or Not bankruptcy.

20. 20 BBA - FIN – 54 (A)
SALES & DISTRIBUTION
Olympic has one of the most extensive sales and distribution networks in Bangladesh, with 1,887 sales
representatives across all 64 districts of the country. Building on the resources of our 754 strategically
positioned distributors, our products are available at over 1,000,000 retail outlets across Bangladesh.
Breadth and availability of our products in even the most far-reaching or remote corners of the country
is our forte.
Olympic works very closely with retailers of all sizes, ranging from tea stalls to general stores to large
supermarkets. Olympic has invested in 100,000+ co-branded store signage to prominently affirm the
availability of our products. Our sales force is equipped with the latest technology to ensure seamless
sales operations and to capture pertinent market data.
FACILITIES
Olympic operates seven biscuit lines across two production facilities. We also operate three
confectionery lines and one bakery line. A majority of our machinery has been procured from Italy and
India.
We have always purchased cutting edge, modern machinery. In 2010, we made an even greater
commitment to industrial automation. Each biscuit lines procured after 2010 has a high degree of
automation, including technologies such as bulk handling, continuous mixing and dual-fuel burners.
With our ISO 22000 certification and implementation of SAP ERP, Olympic is the only biscuit
manufacturer in Bangladesh to have full backward traceability of all of our products. This allows us to
implement strong quality control checks and continually improve our processes.
Our modern machinery, alongside our dedicated, hard-working operations, maintenance and quality
control teams, create a unique combination of manufacturer experience unparalleled in Bangladesh

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Concluding Remark
Olympic Industries Limited is one of the longest running manufacturing-based companies in Bangladesh.
The Company changed their business focus over the period from steel
Production to battery production and now to the biscuits & confectionery segment. It has successfully
penetrated the biscuits & confectionery market and set itself as the market Leader. As on today, 14
days RSI and 14 days MFI of the firm were 63.31 and 89.59 respectively.
Source:
Annual Reports,
the Financial Express,
the Daily Star,
https://www.youtube.com/channel/UCkdR_PnIfxe1FKN1kz27ewg
Olympics’ website: http://olympicbd.com/,
http://www.investopedia.com/