No. of No. of % ID No. of Audit % of 5.

2
Year Board Independ to Board Fees(B Audit
Meme ent total Meetin DT) fees Board of Director
brs Directors memb gs and Top
(ID) ers Management
2015 9 3 33.33 12 800000 . analysis:
% 014
%
2014 9 3 33.33 12 800000 .
% 017
%
2013 8 2 25% 9 800000 .
018
%
2012 9 2 22.22 9 730000 .
% 015
%
2011 9 1 11.11 6 111000 .
% 0 024
%

Here ,from the above information we can see in 2015& 2014 percentage of
independent directors to no of board members is 33.33% &no of board
meetings are 12 that was high compare to other years .it is actually the
indicator of the good corporate governance because independent directors
always work for to protect share holders interest.here audit fee of different
years are also mentioned in which in percentage of audit fee to its operating
expense is high in 2011.
5.3

Assets structure of the Company:

(Amount in Thousand BDT)

Type of the assets

Total
Year Assets
Current Property , Intangibl Long Capit
Assets plant e assets Term al
&Equipme Investme Work
nt nt & Fund in
Progr
ess
2015 1592581 - - - 295908
6 13665015 31
2014 1505644 - - - 270750
3 12018576 19
2013 - - - 184637
9950631 8513167 98
2012 - - - 150344
9172866 5861627 93
2011 - - - 131510
774415 5376634 49

Here, assets structure of the company for different years that indicates the
invesmet into different assets that the company raise through financing decision.In
2015 the company invest more in different assets compare to other years.
 total Total Curren Long Total Short Long Weig Weig
Assets Liabilit t Term Equity Term Term ht ht of
Yea ies Liabilit Liabilit Capita Capita of Equit
r ies ies l l y
Struct Struct Debt
ure ure
a b c d e c/a d/a b/a e/a
201 295908 149813 124502 253102 146095 50.62 49.37
5 31 12 86 6 29 42.07% 8.55% % %
201 270750 156115 141028 114635 57.66 42.33
4 19 08 36 150872 11 52.08% 0.55% % %
201 184637 956220 831476 124743 890159 51.78 48.21
3 98 8 9 9 0 45.03% 6.75% % %
201 150344 800155 702977 703294 53.22 46.77
2 93 3 7 971776 0 46.75% 6.46% % %
201 131510 723974 630070 591130 55.05 44.94
1 49 9 5 939044 0 47.91% 7.14% % %
5.4

Capital Structure of the company:

(Amount in thousand BDT)

Here ,capital structure of the company for different years which is give us the
information about fund structure that they raise form financing decision .if we look
at the above information in 2015 the capital structure of the company is 50.62%
(short term capital sturctue&long term capital structure) and 49.3%equity fund.the
weight of debt for company is larger than equity for above years that is not a good
sign for a company.
.

5.5
Dividend Policy Analysis:

year Cash Dividend Stock Dividend

Amount Dividend Payout ratio

2015 3300 - 56.45%

2014 3300 - 52.53%
2013 3720 - 76.41%
2012 3000 - 76.23%
2011 2520 - 98.8%
(Amount in million BDT)

Here , we can see that the company give cash dividend for different
years.above information also showing dividend payout ratio for the different
years that is determine the percentage of dividend to net profit after tax that
will be distributed as dividend for the particular year.cash dividend paid on
face value that means if we look at the year 2015 dividend per share 55 that
is 550% of face value that is actually declared cash dividend for that year.in
2011 d/p ratio 98.8% ,here the possibility of ke>rr in this situation 100% d/p
ratio will maximize the value of the firm.
5.6

Profitability Analysis

ROA Asset Margin ROE EPS(BDT)

Turnover
2015 44.61% 1.34 46.82% 40.20% 55
2014 42.60% 1.31 44.33% 54.79% 55
2013 51.47% 1.69 43.95% 55.31% 62
2012 45.97% 1.82 41.95% 56.045% 50
2011 39.89% 1.76 42.17% 43.14% 42
Average 44.90% 1.58 9.36% 8.04% 52.8

Here ,above showing the ROA ,Asset Turnover ,Margin ,ROE ,EPS for various
Years. ROA gives an idea as to how efficient management is at using its
assets to generate earnings.in 2013 shows the highest ROA parcentage
compare to others.Asset Turnover indicates the value of a company's sales or
revenues generated relative to the value of its assets. In average asset turnover is 1.58
that indicates the sales of the company that is 1.58 times of its asset. Profit margin
is part of a category of profitability ratios calculated as net income divided by
revenue, or net profits divided by sales .here the average margin 9.36% that
indicates that net income relative to revenue.here the average Roe is 8.04% that
indicates the company generates average 8.04%net income returned as a
percentage of shareholders equity. Here also show EPS that indicates the
percentage of earning relative to per share.
 Year Net operating cash flow Free cash flow
2015 14091988 2357002
2014 8786422 1392692
2013 6023998 1918126
2012 5358513 2279090
2011 3064213 837393
5.7

Cash Flow Analysis:

(Amount in thousand BDT)

Cash Flow Analysis

16000000

14000000

12000000

10000000
Net operating cash flow Free cash flow
8000000
(Amount in Thousand BDT)
6000000

4000000

2000000

0
2015 2014 2013 2012 2011

Here ,showing different years operating cashflow &free cash flow .In 2011
the amount of FCF is low compare to other years that indicates in 2011 the
company had low cash in hand that it can use for different parpouses
compare to other years.
5.8.Valuation and Market Performance Analysis

5.8.1 Market performance:

Year Total Market Capitalization Tobin's Q

No. of share x average market (total liability + total market
price(mn) capitalization)/total assets
2015 167502 6.166887033
2014 144024 5.896044173
2013 96186 5.727326956
2012 72504 5.354723501
2011 66930 5.639835195
5.8.2 Valuation under DCF method:

1: calculate of cost of equity for 2014 using CAPM (need to find beta, and average return of DSE
(Rm), consider the interest rate of saving certificate as Risk Free Rate of return (Rf))

CAPM = R + (Rm-R)

Covariance of Return of DSE and BATBC, Cov,BATBCM= 0.770334725537

2
Variance of DSE return, m = 0.880479832936

BATBC = 0.874903316035

R m =17.76%

R = 10.50%

Ke = R + (Rm- R)

Ke = .105+ .87(17.76 10.50)

Ke = 16.82%

The cost of equity of BATBC for 2014 is 16.82%

Step 2: calculation of cost debt (interest rate of the companys borrowing)

Cost debt or Kd = 6.9%

Step 3: calculation of WACC:

Tax rate of the company is 40%

WACC = {We*Ke + Wd*Kd (1-.40%)}

Beta 0..87
Rf 0.105
MRP 0.0726
ERP 0.063
Ke 0.1682
Rm 0.1776
Kd(1- 0.25) 0.0517

Wd 0.57
We 0.42
WACC 8.83%