Submitted To:

Shammem Ara Milli

Lecturer,Dept. of AIS
University of Comilla

Submitted by:
S.L
1
2
3
4
5
6
7

NAME OF STUDENTS
F.M. Golam Kibria Masum
Priya Saha
Md. Shajib Rahman
Balai Chandra Das
Bijoy Kumnar Debnath
Ishrat Jahan
Md. Nizam Uddin

CLASS ID
0906001
0906004
0906012
0906022
0906031
0906032
0906034

Students of 2nd Year 2nd Semester, 4th Batch

Dept. of Accounting & Information Systems
University of Comilla

LETTER OF TRANSMITTAL
May 06, 2012.
To
Shammem Ara Milli
Lecturer,
Department of Accounting and Information Systems
Comilla University.
Sub: Submission of Report Paper
Dear Madam,
It is our great pleasure that the opportunity to submit an elaborate
Term Paper on Performance Analysis of Rupali Life Insurance
Company Limited , as you have authorized us in this
semester.We have observed closely & studies different aspect of
the bank.
We tried our best to put meticulous effort for the preparation of
this Term paper. Any short coming or flaw may arise as we are
very much novice in this aspect. We will whole heatedly welcome
any clarification & suggestion about any view & conception
disseminated in our Term Paper.
Sincerely Yours
Md. Shajib Rahman
On behalf of the group
Department of Accounting and Information Systems
Comilla University.

ACKNOWLEDGEMENT
One of the most pleasant parts of submitting a Term Paper is the
opportunity to thank them who have contributed for it. This
acknowledgement is no exception.
In the process of preparing this report we received genuine
cooperation in collecting annual report and various Information on
this life insurance company from number of individuals whose
names are not possible to mention in this report but we would
remember them with our heart felt appreciation and gratitude.We
most sincerely express our thanks and gratitude to our honorable
course teacher Shammem Ara Mili for giving us this opportunity to
prepare this Term Paper.
And finally, we would like to say that we have tried heart and soul
to prepare this report accurately. However there might be some
errors and mistake, so we seek your kind consideration as we are in
the process of learning.

EXECUTIVE SUMMARY
Rupali Life Insurance Company Ltd. (RLI) is one of the well-reputed
commercial insurance company of the country. We really enjoyed the
team work. We believe that this will definitely help us to build our career.
The first section of this report is the introduction part. Introduction part
includes the background of the RLI, mission, vision and core objectives,
scope of the study. The second section of this report include financial
performance analysis through the ratio analysis and trend analysis of RLI.
Finally a recommendation and conclusion have been drawn on the basis of
the whole discussion.
The aim of the study is to provide a clear conscious about the comparison
of overall performance and risk management system, which will assist
strategy group and the management terms and also shareholders in making
correct decisions as how to penetrate the Bangladesh Insurance Company
and how to catch the maximum commercial opportunities in dealing with
Business partners in this country.

CONTENTS
S.L NO.

Particulars

Page No.

ABOUT INSURANCE
Insurance:
Insurance is defined as a co-operative device to spread the loss caused by a
particular risk over a number of persons who are exposed to it and who agree to
ensure themselves against that risk. Similarly, Insurance is a co-operative device of
distributing losses, falling on an individual or his family over a large number of
persons, each bearing an nominal expenditure and feeling secure against heavy loss.
Insurance has been defined to be that in which a sum of money as a premium is paid
in consideration of the insurers incurring the risk of paying large sum upon a given
contingency.

History Of Insurance:
The origin of insurance is lost in antiquity. The marine insurance is the oldest form
of insurance. The marine policies of the present forms were sold in the beginning of
fourteenth century by the Brugians. The Lloyds coffee-house gave an impetus to
develop the marine insurance. After marine insurance, fire insurance developed in
present form. It had been originated in Germany in the beginning of sixteenth
century. The fire insurance got momentum in England after the great fire in
1666.Fire insurance office was established in 1681 in England. After that, The Life
insurance developed at Exchange Alley. The first registered life office in England
was the hand-in-hand society established in 1696.The miscellaneous insurance took
the present shape at the later part of nineteenth century with the industrial
revolution in England.

ABOUT LIFE INSURANCE

Life Insurance:
Life insurance is different from other insurance in the sense that, here, the subject
matter of insurance is life of human being. The insurer will pay the fixed amount of
insurance at the time of death or at the expiry of certain period. At present, life
insurance enjoys maximum scope because the life is the most important property of
the society or an individual.

Life Insurance History:

Life insurance made its first appearance in England in sixteenth century, the first
recorded evidence in England being the policy on life of Willim Gybbons on June
18,1653.The life insurance developed at Exchange Alley. The first registered life
office in England was the hand-in-hand society established in 1696.The famous
Amicable Society for a perpetual assurance office started
Its operation since 1706.

ORIENTATION OF THE STUDY

Introduction:
Financial Institutions have historically have been distinguished by the types of services they
provide. In recent years Financial Institutions have diversified their services by creating new
subsidiaries that perform additional services or by merging with other types of financial
institutions RLI. was incorporated in Bangladesh as a insurance company. We have studied
about the overall activities of RLI This has given us the opportunity to know more on different
aspects of the company. So, we prepare our Term Paper on overall insurance system.

Financial Statement Analysis:

Financial Statement Analysis is the process of understanding the risk and profitability of a firm
(business, sub-business or project) through analysis of reported financial information,
particularly annual and quarterly reports.
Financial Statement Analysis is defined as the process of identifying financial strengths and
weakness of the firm by properly establishing relationship between the items of the balance
sheet and the profit and loss account.

Objectives Of The Study:

The objective of this study is to have a clear concept and some practical experience about
Financial Statement Analysis Systems of an organization. However, we had some textbook
knowledge but had little in real life, practice so ever.
This report is designed to know more about the overall banking Systems of RLL and analyze
the ratio of this organization and identify the financial condition of this organization. In
addition, the study seeks to achieve the following objectives.
To identify the activities & the management system of RLI.
To identify the objectives of RLI.
To know the contribution of RLI in national development.
To know about the process of ratio analysis systems.
To know the trend of the organization performance Analysis of RLI.

Scope of the study:

In spite of limitations we also enjoyed some facilities to complete our term paper. The
employees whose held a responsible post in all the departments helped us lot. They gave us all
essential data and conversed with us. Our honorable course teacher Shammem Ara Mlili also
helped us a lot. She gave us guidelines how to prepare our Term Paper more attractive and
perfect. This insurance company has given us the opportunity to observe their official
environment for the first time indeed. We got an opportunity to gather knowledge different
departments of this insurance company.

Methodology:
The Graphical methods have been use to represent the analysis of the report. The basic research
program is to represent the comparisons of performance analysis of RLI. Secondary sources of
data have been used for data requirements of the report. Secondary sources of data: Annual
report of Rupali Life Insurance Company Ltd. and different articles published in the journals &
magazines have been used.
Secondary Sources are:
Annual report of RLI.
Internet website of the RLI.
insurance companies Journals

Limitations:
Preparing the term paper we have faced some obstructions which are
Lack of proper information in the websites of both of the Bank.
Lack of required information in the annual report of both the bank.
Lack of necessary information in the journals and official publications of insurance
companies.
Inexperience and time constraint is the limitation restricting this report from being more
detailed.
Secondary data has been collected from the hand books, magazines, which may biased
to the insurance business.

Procedure
Analysis:

of

the

Financial

Statement

Statements, such as comparative statements, schedule of changes in working capital. There are
various methods or techniques that are used in analyzing financial table, common size
percentages, funds analysis, trend analysis and ratios analysis. Following are the most important
tools and techniques of financial statement analysis:1. Horizontal and vertical analysis ;
2. Ratios analysis.

1. Horizontal And Vertical Analysis :

Comparison of two or more years data is known as horizontal or trend analysis. Horizontal
analysis is facilitated by showing changes between years in both dollar and percentage form.
Vertical analysis is the procedure of preparing and presenting common size statements.

2.Ratios Analysis :
The ratios analysis is the most powerful tool of financial statement analysis. Ratios mean
simply, one number expressed in terms of another. A ratio is a statistical yardstick by means of
which relationship between two or more various figure can be compared or measured. Ratios
can be found by dividing one number by another number. Ratios show how one number is
related to another.
A) Profitability Ratios :
Profitability ratios measure the results of business operations or overall performance and
effectiveness of the firm. Some of the most popular profitability ratios are as under :Gross profit ratio,
Net profit ratio,
Operating ratio,
Return or shareholder investment or net worth,
Returns on equity capital,
Dividend payout ratio,
Earnings per share (EPS) ratio.
B) Liquidity Ratios :Liquidity ratios measure the short term solvency of financial position of a firm. Some of most
important liquidity ratios are as follows :-

10

Current ratio,
Liquid/Acid/Quick ratio.
C) Activity Ratios :Activity ratios are calculated to measure the efficiency with which resources of a firm have
been employed. Following are the most important activity ratios :Stock turnover ratio,
Receivables turnover ratio,
Average collection period,
Payable turnover ratio,
Working capital turnover ratio,
Fixed assets turnover ratio.
D) Long-Term Solvency Or Leverage Ratios :Long-term solvency or leverage ratios convey a firms ability to meet the interest costs and
payment schedules of its long-term obligations. Following are the most important long-term
solvency or leverage ratios :Debt-to-equity ratio,
Equity ratio,
Ratios of fixed assets to shareholders funds,
Ratios of current assets to shareholders funds,
Interest coverage ratio,
Over and under capitalization.

Reasons for choosing RLI:

Rupali life Insurance Company Ltd.(RLI) is one of the leading private owned commercial
insurance company in Bangladesh. It is incorporated in Bangladesh as a business company. RLI
has been maintaining its leading position among Private Sector Insurance Company of the
country in respect of its Premium, Investment & Profitability.

11

About Rupali Life Insurance Company

Limited (RLIC)
Rupali Life Insurance Company Limited (RLIC) was established in 2000. Today
Rupali Life, with its Head Office in Dhaka operates more then 1500 Agency
Offices throughout Bangladesh. Rupali Life Insurance Company Limited offers a
system to replace the loss of income that occurs when someone dies (usually the
person who produces the majority of income in a family situation). It is a contract
between you as insured person and RLIC that is providing the insurance if our
clients dies while the contract is in force, the Rupali Life Insurance Company
Limited will pay a specified sum of money free from income tax "Cash benefits" to
the person or persons beneficiaries or nominees. Our Life Insurance Plans do more
that just replace the loss of income that occurs after your date. It should also
provide money to cover the new costs that arise after your death funeral expenses,
taxes, probate costs, the need for housekeepers, child care, and so on. And those
cash benefits should provide for your families future needs as well, including
education for your children and part of all of your spouse's retirement needs. In
almost all the cases, your beneficiary can use the cash benefits in the way he or she
sees fit, without restriction. RLIC's policy of developing local talent to resource its
operations has greatly contributed to its success in understanding, meeting and
responding quickly to change customer needs and market conditions. We are
primarily staffed with local personnel who are constantly studying the needs of
individuals and developing innovative products to the specific requirements of each
district of Bangladesh. This long-standing approach is the foundation of our
leadership, because we understand local market needs and conditions. Local
awareness typifies RLIC's previous history and continues to this day.

12

We want to be the Leader of the insurer among the life insurance companies in Bangladesh,
providing integrated insurance services and prompt claim settlement.

To prove quality and innovative insurance product.

To emphasis highest customer satisfaction.
To create shareholders value.
To ensure corporate social responsibility to the society upheld by employment
and taking financial risks.
To ensure ethical standard in business operation and provide benefits and keep interest to the
policyholders and stakeholders.

To serve participants with best satisfaction.

To conduct transparent business operation ethically.
To create awareness of the life insurance.
To ensure the maximum output to shareholders against their input.

13

 Ekok Bima
Islami Jiban Bima ( Takaful)
Samajik Bima
Rupali Deposit Pension Scheme
Takaful Deposit Pension Scheme
Ruapli Khudra Bima takaful
Shariah & Sanchaya Bima
Al-Amanat Bima

Single Payment Endowment Assurance Plan-with profit.

Three Payment Endowment Assurance Plan with profit.
Five Payment Endowment Assurance Plan-with profit.
Mohorana Bima -withprofit.
Child Education Assurance Plan-with profit.
Takaful Deposit Pension Scheme.
Anticipated Endowment (takaful) Assurance -4 stage with profit.
Single Premium Endowment Assurance Plan.
Child Welfare Assurance Plan-with profit.
Hajj plan-with profit, Premium Back Term Assurance Plan-without profit
Premium Back Term Assurance Plan- with guaranteed profit

14

RATIO ANALYSIS
Liquidity Ratio
Current Ratio:

current ratio
8
6

6.57
4.599

4
2
0
current ratio

2009
4.599

2010
6.57

Interpretation: The current ratio is a popular financial ratio used to test a company's liquidity (also
referred to as its current or working capital position) by deriving the proportion of current assets
available to cover current liabilities. In theory, the higher the current ratio, the better. From this graph
it shows that RLIs current ratio is increasing year to year. This implies that they have short-term
assets (cash, cash equivalents, marketable securities, receivables and inventory) which are readily
available to pay off its short-term liabilities (notes payable, current portion of term debt, payables,
accrued expenses and taxes).

15

Profitability Ratio

Return on Assets:
return on assets
1.09
1.1
1.08
1.06
1.04
1.02
1

1.03

2009
1.09

return on assets

2010
1.03

Interpretation: This ratio indicates how profitable a company is relative to its total assets. The return
on assets (ROA) ratio illustrates how well management is employing the company's total assets to
make a profit. The ROA ratio is calculated by comparing net income to average total assets, and is
expressed as a percentage. From the graph, RLIs ROA ratio has decreased from 2009 to 2010.
That implies lower the return; the less efficient management is in utilizing its asset base.

Earning Per Share:

earning per share
2718.68
2130.86

3000
2000
1000
0

2009
2130.86

earning per share

16

2010
2718.68

Interpretation: Earnings per share are generally considered to be the single most important variable
in determining a share's price. It is also a major component used to calculate the price- to-earnings
valuation ratio. From the graph, we can compare the EPS from previous years and it indicates the
rate of growth RLI is earnings are growing that well.

Rate Earn On Stock Holders Equity:

return on stock holder's equity
30.44
30.5
30
29.5
29
28.5
28
27.5

28.48

2009
30.44

return on equity

2010
28.48

Interpretation:The rate earned on stockholders' equity, also known as the return on stockholders'
equity or just return on equity, expresses a relationship between a company's net income and its
stockholders' equity. The ratio indicates management's effectiveness in generating a return on the
shareholders' invested capital. Stockholders' equity is part of a company's balance sheet, while net
income is part of the income statement

Share Holders Equity On Total Assets:

Share Holders Equity On Total Assets
4.3

5
4

2.4

3
2
1
0
Share Holders Equity
On Total Assets

17

2009

2010

4.3

2.4

Interpretation:From the graph we can see that shareholders claim on the assets are decreasing
every year. This is good for the company.

Share Holders Equity On Deposits & Borrowings:

Share Holders Equity On Deposits & Borrowings
1.6

1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0

0.37

Share Holders Equity

On Deposits &
Borrowings

2009

2010

1.6

0.37

Interpretation: The graph shows that this ratio is also decreasing. Shareholders claims on deposits
are decreasing which is good for the company.

Shares Holders Equity On Loans & Advances:

shares holder's equity on loans &

advance

4.3

5
4

2.4

3
2
1

0
shares holder's equity on
loans & advance

18

2009

2010

4.3

2.4

Interpretation:This graph shows that the percentage of shareholders claim on loans and advances
are fluctuating in the year 2009 & 2010. It indicates a balance situation. But in 2010 it has decreased
which is good for the company.

Profit Margin Ratio:

profit margin ratio
2.4
2.5
2

1.26

1.5
1
0.5
0

2009
1.26

profit margin ratio

2010
2.4

Interpretation:It measures the relation between sales and profit. It is calculated by dividing net
income by the operating revenues of the company. A high profit margin ratio is a sign of good
management. Here we see that RLI had a increasing profit margin from 2009 to 2010.

Debt Ratio:
debt ratio
2.4
2.5
2
0.96

1.5
1
0.5
0
debt ratio

2009
0.96

2010
2.4

19

Interpretation: The debt ratio compares a company's total debt to its total assets, which is used to
gain a general idea as to the amount of leverage being used by a company. A low percentage means
that the company is less dependent on leverage, i.e., money borrowed from and/or owed to others.
The lower the percentage, the less leverage a company is using and the stronger its equity position.
In general, the higher the ratio, the more risk that company is considered to have taken on. From this
ratio, RLI has high rate of debt ratio & year to year the increasing pattern is very high.

Debt Equity Ratio:

debt equity ratio
28.52
30
25
20
15
10
5
0
debt equity ratio

21.75

2009
21.75

2010
28.52

Interpretation: The debt-equity ratio is another leverage ratio that compares a company's total
liabilities to its total shareholders' equity. This is a measurement of how much suppliers, lenders,
creditors and obligors have committed to the company versus what the shareholders have committed.
To a large degree, the debt-equity ratio provides another vantage point on a company's leverage
position, in this case, comparing total liabilities to shareholders' equity, as opposed to total assets in
the debt ratio. Similar to the debt ratio, a lower the percentage means that a company is using less
leverage and has a stronger equity position. So, from the ratio, it is clear that RLIs debt ratio is
increasing every year; it indicates that they are using more leverage and they have a weak equity
position.

20

Cost Income Ratio:

cost income ratio
0.69
0.7
0.61

0.65
0.6
0.55
cost income ratio

2009
0.69

2010
0.61

Interpretation: Cost Income Ratio compares The Companys Operating Expense to its Operating
Income. The lower percentage indicates that the companys operating expense is less than its
operating income. From this graph its clear that in 2009 the rate is more than the rate of 2010.

TREND (For Performance Analysis)

In this section we calculate the trend of profit of RLI by using least square method.
For RLI the trend equation is,
Y=a+bX
The required equation of the straight line trend is Y =1920527037+ 644759706X
So, during 2009-2010 RLIs profit increased at a rate of TK 644759706

21

PERFORMANCE ANALYSIS
Dividends:
The board of director has recommended a stock dividends of 14% for the year 2010 on the
paid up capital of tk 82.50 millions .The record date is july11,2011 .Members of the company
whose name will appar in the depository register on the record date will be eligible to entitled
the dividend.

Bonus for the policyholders:

The are a provision in the Insurance Act ,that ,minimum 90% and maximum 97.5% of surplus
should have been distributed among the policyholders as bonus .The company has declared
policyholders bonus for the year 2010 for the valued enforce policyholders .A 2 year
comparative figure of policy bonus declared is appended below:
Term of policy

rate of eversionary bonus per thousands Tk

2009

2010

8 year to 14 years

Tk 15

Tk 20

8 year to 19 years

Tk 17

Tk 22

20 year to above

Tk 20

Tk 25

Credit Rating :
Keeping in the view the interest of policyholders and measures the risk of the insurer, credit
rating has been made mandatory for all life insurer at least once in every two years. Credit
rating agencies of Bangladesh (CRAB) has assigned BBB1 (Long Term) rating for the year
2009 based on the good financial security. Next rating should have been done in 2011 and
hoping better than previous.

22

Capital Market Performance:

Rupali Life Insurance Ltd. has flooted shares foe general public in the year 2009. The highest
value is tk.3878 while the lowest value was tk 2050 accorss the year 2010. The3 market
analysis of shareholding of the company at the close of the year 2010 reveals a 22.63% holding
by investors account, 2.41% by Mutual funds,2.07% by Unit fund,7.80% by Institutions &
65.09% by general Public representing total 495500 shares.The secnerio establishes a trust &
sound confidence to the3 company by the investors.

Shares
2.41%
general public

22.63%

institution

2.07%

unit fund

65.09%

investors account

7.08%

mutual fund

Life fund:
During the year life of Rupali Life Insurance Company Ltd. Has been added to tk. 644.76
million Accumulated life fund for the year 2010 stood at tk. 2,242.91 million which is 40.34
higher than the previous year. This achievement was possible due to the strict cost control,
conservation commission schedule & efficient management.

life fund TK in million

2242.91

2500
2000

1597.15

1500
1000

2009-2010

500
0
2009-2010

2009

2010

1597.15

2242.91

23

Financial Result:
Financial results TK in million
2242.91

2500
2000

1606.91

1598.15

1260.11

1500

1022.93

1000

802.81

710.68

500

635.58

197.3

92.98

premium
income

life fund

investment

investment
income

2010

1606.91

2242.91

1022.93

197.3

manageme
nt
expenses
802.81

2009

1260.11

1598.15

710.68

92.98

635.58

Investment Analysis:
investment Analysis TK in million
1200

1022.93

1000
800

710.68

600
400
200
0
2009-2010

2009
710.68

2010
1022.93

24

Claim settlement:
Claim sattlement
300

283.27

172.81

250
200
150
100
50
0

2006-2010

2009
172.81

2010
283.27

Investment Income:

Investment income
197.3
200
150

92.98

100
50
0
TK in million

2009
92.98

2007
197.3

25

Value added-2010:
6.19%
0.02%

4.73% 0.14%

41.61%

1st year premium

Renewal premium
Group premium

47.31%

Interest,dividend & rent

Capital market income
Other income

Value distributed-2010:

value distributed

35.68%

44.44%
Management expenses
Claim payment
Other expenses

4.20%

Life Fund
15.68%

26

Claim payment-2010:

claim payment
1.41%
0.33%
5.91%
15.59%
Death claim
Maturity claim
Survival claim
Policy bonus

76.76%

surrenders

Total Assets:

Total Assets(TK. in million)

1706.01
2009
2010
2663.35

27

OTHER INFORMATION
Information Technology:
Keeping this in view that, there is no alternate way to render prompt and better services to the
policy holders. We are trying our best for our strengthened our IT department. Customers are
getting their policy information at once through SMS service. IT service points have been
covered through online. Moreover, Head Office is always ready to face any type of critical
situation very promptly. We are trying to provide super service to the customers; accordingly,
we are trying to adding value in the IT infrastructure.

Achievement in 2010:
The company has been able to procure a premium of tk. 1606.91 million in the year 2010
against tk. 1260.11 million in the previous year, yet many obstacle & limitations. A growth
reflects of 27.52% over the previous year .A comparative statement along wikth graphical
presentation showing the growth is appended below:

Business Achievment(in million taka)

900
800
700
600
500
400
300
200
100
0

1st year premium

2009
568.84

2010
751.71

2nd year premium

689.96

854.79

1.31

0.41

group premium

28

Business prospect for 2011

The year 2011 is a new challenging year for the company. To face these challenges successfully
the company has adopted a pragmatic marketing strategy. The company has projected a realistic
premium income of Tk. 2,000 million in the year 2011. Insallah our expectation would have
been achieved.

Overall Evaluation
The Rupali Life Insurance Company Limited is now one of the most leading insurance
company in our country. It comes to its present position through a long process of its insurance
services. The financial position of RLI is increasing year to year. If we keep a glance to its
overall performance we can see that RLIs profit has increased at a rate of TK 644759706 during
2009-2010.So with the other consideration we may say that the company is in a moderate
situation. Therefore, its better for the company to increase its services, customer satisfaction
& social activities for achieving better position in future.

29

Appendix-1:
Current
Ratio: Item
Current
Ratio

Formula

2009

2010

Current
asset/current
liabilities.

151147807/3 2218849561/
2866005
337938561
=4.599
=6.57

ROA: Item

Formula

2009

Return on
asset

Net
1598147184/1
income/Aver 454479562=1.
age Total
09
assets

2242906889/21
84679320=1.03

Formula
Net
income/no.
of share
outstanding

2010
2242906889
/825000
=2718.68

Appendix-2:

Appendix-3:
EPS: Item
EPS

Appendix-4:
Rate Earn on Formula
Stock
Holders
Equity Item
Net Income
REOSHE
/Average
Stock Holder
Equity

2010

2009
1598147184/
750000
=2130.86

2009

2010

1598147184/
52500000
=30.44

2242906889/
78750000
=28.48

30

Appendix-5:
Share
Holder
Equity on
Total Asset:
Item
SHEOTA

Formula

2009

Share Holder 75000000/

Equity/Total 1706013189
Asset
=4.39

2010

82500000/
2663345450
=0.031

Appendix-6:
Share Holder
Equity on
Deposits &
Borrowings:
Item
SHEODB

Formula

2009

Shareholder
75000000/
equity/Deposi 46762369
ts &
=1.60
Borrowings

2010

82500000/
252403735
=0.37

Appendix-7:
Share
Holders
Equity on
Loans &
Advances
Item
SHEOLA

Formula

2009

2010

Share
Holders
Equity/Loans
& Advances

75000000/
2192100
=34.21

82500000/
2091667
=39.44

31

Appendix-8:
Profit
Margin
Ratio: Item
PMR

Appendix-9:
Debt Ratio:
Item
Debt Ratio

Formula

2009

2010

Net
1598147184/1 2242906889/
Income/Oper 266080444
1694917411
ating Income =1.26
=1.32

Formula

2009

2010

Total
Debt/Total
Asset

1631013189
/170601318
9
=o.96

2353240912
/266334545
0
=0.88

Appendix-10:
Debt Equity Formula
Ratio: Item
Total
debt/Share
holder
equity

Appendix-11:
Cost Income Formula
Ratio: Item
CIR
Operating
Expense/Op
erating
Income

2009

2010

1631013189
/75000000
=21.75

2353240912/
82500000
=28.52

2009

2010

873084895/
1266080444
=.69

1036217952/16
94917411=.61

32

Appendix-12:
Trend of
DBBL
Limited:
Year (x)
2009

Profit Tk. X =
in million (x - x)
(Y)
=(x2009.5)
15981471 - 0.5
84

2010

22429068 0.5
89
Y=
X = 0
38410540
73

n=

XY

2
X

0.25
79907359
2
11214534 0.25
45
XY=322 X2= 0.5
379853

The equation of the straight line trend is Y = a + bX

Since, X = 0, Therefore, a = Y / N = 3841054073 / 2= 1920527037
b = XY / X2 = 322379853 / 0.5 = 644759706
Therefore, the required equation of the straight line trend is Y =1920527037+ 644759706X
So, during 2009-2010 RLIs profit increased at a rate of TK 644759706.

33