Credit Management ^0 Performance Analysis of ACI Limited^

[Audio] Good morning everyone. I'm here to present my internship report on Credit Management & Performance Analysis of ACI Limited. While doing my research on ACI Ltd., I had the opportunity to gain knowledge of how the company manages its credit activities to ensure the successful execution of the organizational business goals and objectives. I also observed that the company implemented successful strategies to analyze its performance. By researching and understanding the company's practices, I have gained a greater knowledge and appreciation for the complexities of Credit Management and Performance Analysis. I am confident that the research I have done and the insights I have gained during my internship will help me in my career ahead..

[Audio] The slide is about the approval certificate of the report on Credit Management & Performance Analysis of ACI Limited prepared by Md Zahinul Islam Sikder. The certificate was issued by the Supervisor, Md. Humayun Kabir, a Senior Lecturer at the Department of Business Administration, East West University. This certificate confirms that the report was prepared solely by the student and only for academic purposes. The Supervisor also wishes the student success in life for his efforts..

[Audio] Md. Zahinul Islam Sikder has earned praise for the diligence and commitment he has shown in completing his internship report on Credit Management & Performance Analysis of ACI Limited. The report was created under the supervision of Md. Humayun Kabir and was submitted as partial fulfillment for the requirement for the award of the degree in Bachelor of Business administration from East West University. Md. Zahinul has declared it is only intended for academic purposes and not for any other purpose or to be used with the interest of the opposite party of the corporation..

[Audio] I am grateful to my supervisor Md. Humayun Kabir for providing me with the support, guidance and valuable insights throughout this project. I am also thankful to Mr. Mohammad Jafar Iqbal, Manager of Credit and Inventory, and Mr. Abdul Kuddos Ridwan, Assistant Manager, Credit Department, for their assistance and support throughout this project. Without their help, this project would not have been completed..

[Audio] This report provides deep insight into ACI Limited's approach to credit evaluation, credit monitoring, and control mechanisms. Financial indicators such as liquidity, solvency, efficiency and profitability of the company are compared to its peers in the industry. The impact of credit management on financial ratios, cash flow and revenue generation is evaluated. Findings demonstrate that ACI Limited has developed a proficient credit management system, resulting in satisfactory risk mitigation and customer satisfaction..

[Audio] Md. Zahinul Islam Sikder is presenting his internship report on Credit Management and Performance Analysis of ACI Limited under the supervision of Md. Humayun Kabir. Slide 6 provides an Introduction, which summarises the overall scope of the project, outlining the objectives, methodology, scope, limitations and summary of the internship. The report also includes a Company Overview, that details the history and products of ACI Limited..

[Audio] ACI Limited's credit management and performance analysis has been conducted through an in-depth research internship by Md. Zahinul Islam Sikder, supervised by Md. Humayun Kabir. The outcomes of the research illustrate ACI's devotion to secure credit practices, financial solidity, and general performance. This analysis provides a yardstick to not only direct their activities, but likewise inform and advantage other similar organizations. It covers a comprehensive review of their subsidiaries, joint ventures, credit policy, procedures, provisions, and financial performance evaluation..

[Audio] Solvency and market value ratios are calculated to measure ACI Limited's ability to meet its long term obligations. The solvency ratio assesses the company's long-term solvency while the market value ratio evaluates the company's market value in terms of debts, equity, assets, earnings and share prices. A summary of the findings as well as recommendations are provided at the end of this slide..

[Audio] This part of the presentation focuses on the financial performance of ACI Limited. We have various figures and charts that reveal the ratio of current assets to current liabilities, as well as other figures to measure profitability and turnover performance. We can also observe the Return of Assets and Return of Equity, as well as the debtors turnover ratio. All these data will provide us a better understanding of ACI Limited's performance with respect to credit management and analysis..

[Audio] I am presenting my internship report on Credit Management & Performance Analysis of ACI Limited under the supervision of Md. Humayun Kabir. As part of my internship, I have collected and analyzed relevant data on the credit management and performance of ACI Limited. My report assesses the credit management processes followed, as well as the performance of the company and examines the factors that have led to success or failure. I have also proposed various strategies to ensure better credit management for improved performance of ACI Limited. It has been a great learning experience and I am excited to share my findings with you..

[Audio] I have compiled a report regarding my three-month internship at ACI Limited. During my internship, I had the great opportunity to learn about the company's operations in different areas including its corporate structure, financial performance, management processes and credit systems. Moreover, I was able to pinpoint areas of improvement and suggest highly useful recommendations. Additionally, the report provides an exhaustive overview of my experience and insights I gained throughout my internship. It is hoped that this report would be helpful to future interns in understanding the business operations of ACI Limited..

[Audio] I discussed the scope and limitation of the report presented by Md.Zahinul Islam Sikder, focusing on the analysis of ACI Limited's business and management performance. I gathered information from their published annual reports, documents, periodicals, website, research papers and journals to paint a picture of the company's performance. Although strict confidentiality about their financial and other information caused difficulty in obtaining certain data, I conducted thorough research and analysis of the company's performance to present a valid report..

[Audio] Today, I would like to present my report on Credit Management & Performance Analysis of ACI Limited. As part of the 12-week internship, I had the chance to gain insight into the company's organizational structure and the reporting hierarchy. By data entry and research, I was able to familiarize myself with the diverse SBUs of ACI including Health Care, Consumer Brands, Agribusiness, and Retail Chain. Furthermore, I had the opportunity to explore the types of credit customers, including Deposit Credit Customers and Credit to Dealers. My experience at ACI was marked by learning the importance of assessing and mitigating potential risks, as well as understanding ACI's business operations. I am proud to present my findings and hope that it will be beneficial to the people here. Thank you..

[Audio] ACI Limited is a publicly listed generic pharmaceutical company that manufactures a wide range of products, including pharmaceuticals, consumer brands, agribusiness and livestock. It has several subsidiaries, such as Advanced Chemical Industries, Advanced Pharmaceuticals Industries and Advanced Agro Industries. ACI is dedicated to utilizing the most recent technology and innovative research and development to manufacture top-notch products, all while adhering to the highest ethical standards in line with its corporate values and mission..

[Audio] ACI Limited has been providing exceptional products and services to their customers since 1992, and is a leading domestic company in Bangladesh. Being a founding member of the Global Growth Companies Community, recognized by the World Economic Forum, ACI Limited upholds exemplary quality management standards. Md Zahinul Islam Sikder is presenting his internship report on credit management and performance analysis of ACI Limited, supervised by Md Humayun Kabir. This report provides us with a valuable insight into the journey of ACI..

[Audio] ACI Limited is committed to creating a better quality of life for its customers, employees, and community. With a mission to provide top quality products and services, ACI strives to become the industry leader. The company values quality, continuous improvement, client centric transparency, innovation, fairness, and more. Now, let’s look at how a family overcame their fear of leaving home and made the brave decision to start a new life somewhere else..

8. 2.4 Management Organogram of ACI Limited. EXECUTIVE SECRETARY Legal. Insurance) ORGANOGRAM BOARD OF DIRECTORS CHAIRMAN & MANAGING DIRECTOR (H.R AdrhinJ (Operations) (Finance Account) COMPANY SECRETARY Divnl. Manager Area Manager Branch Manager SENIOR MANAGER (Audit) MANAGER (Audit) AUDIT TEAM.

[Audio] I would like to share some information on ACI Limited. The company has four main strategic business areas: Health Care, Consumer Brands, Agribusinesses and Retail Chain. These areas are further broken down into individual Strategic Business Units, such as Consumer Brand, Pharmaceuticals, Agribusiness, Crop care and PH, Animal Health, Fertilizer, Seeds, Vegetables and Foods. ACI has several subsidiaries, like ACI Formulations Limited, ACI Salt Limited, ACI Food Limited, ACI Motors Limited, ACI Pure Flour Limited, ACI Logistic Limited, Premiaflex Plastics Limited, and Creative Communication Limited. It also has joint-ventures with foreign or other companies, including Tetley ACI (Bangladesh) Limited, Asian Consumer Care (Pvt) Limited and ACI Godrej Agrovet Private Limited. This extensive range of products and services gives ACI its competitive edge..

[Audio] ACI Limited is a well-known company in Bangladesh that manufactures a wide variety of market leading products. These include consumer brands such as ACI Aerosol, ACI Mosquito Coil, and Savlon, as well as staples like salt, flour, and spices under the "ACI Pure" brand. ACI also has well-known product lines of Colgate, Nivea, Telley, Godrej & Dabur. Additionally, ACI Agribusiness provides crop protection, seed, fertilizer, ag machinery, and animal health products. It also supplies high-quality nutritional, veterinary and poultry drugs and immunizations. Furthermore, ACI provides hybrid rice, vegetable, and maize seeds, tractors and other agribusiness related products. These products and services all give ACI a competitive edge and help it remain a leader in the industry..

[Audio] ACI Limited has been setting the standard for excellence in Bangladesh for more than 25 years. It is especially known for two major subsidiaries, ACI Formulations Limited and ACI Salt Limited. ACI Formulations Limited specializes in crop protection chemicals such as insecticides, herbicides, and fungicides and also uses modern computerized machinery to develop innovative processes and products. ACI Salt Limited is praised for its vacuum evaporated, free flowing, and properly iodized quality, and is the proud recipient of the "BEST BRAND OF BANGLADESH AWARD 2008". ACI Food Limited also provides customers with quality food items, ice cream, and beverages. ACI Limited's commitment to excellence and high-quality products are essential for the economy and people of Bangladesh..

[Audio] ACI Group is a well-known business conglomerate that produces excellent products and invests in other ventures. Founded in 1986, ACI began as an agricultural company and has since expanded its operations into pharmaceuticals and consumer durables. Its Agribusinesses division is now Bangladesh's leading agricultural business, manufacturing and distributing a wide range of products from seeds to tractors and commercial vehicles. ACI products under its 'Pure' brand, including edible oil, pulses, sugar, and salt, are the market leaders in Bangladesh and have been exported to countries like Australia, the United Arab Emirates, Kuwait, Saudi Arabia, Bahrain, and Qatar. ACI Motors Limited, a subsidiary of ACI Agribusinesses, provides further service to rural communities with Sonalika tractors and other agricultural equipment from China. Financing options are also available to help farmers access these products. ACI is striving towards its goal of bringing significant socio-economic change to Bangladesh..

[Audio] ACI Limited has been a leader in the Bangladeshi market and has established three subsidiaries since 2008, each with a distinct area of expertise. ACI Logistics Limited has developed a retail chain across Bangladesh with international supply chain mechanisms, and ACI Premiaflex Plastics Limited and ACI Creative Communication Limited specialize in manufacturing and selling plastic products, printing on flexible media, and providing integrated communication services. Furthermore, in 2013 ACI Health Care Limited was founded, combining with the other four entities to make ACI Limited one of the most successful and respected corporations in the country..

[Audio] ACI Limited has implemented various strategies to foster a strong relationship with other companies. Its joint venture with the UK's Tetley Tea and India's Dabur has proven to be highly successful. Both companies have developed a wide variety of products, such as Tetley Tea, Dabur Honey, Dabur Chawanprush, Dabur Vatika Face Pack, Dabur Vatika Hair Oil, Vatika Shampoo and Dabur Amla Hair Oil, all of which are obtainable through ACI Big Brands. These products have gained considerable recognition in the Bangladesh market, leading to a successful outcome for this joint venture..

[Audio] ACI Godrej Agrovet Private Limited, a unique joint venture uniting two different backgrounds, offers integrated solutions to the Bangladeshi market. Established in 2004, it is committed to delivering quality poultry, aqua, cattle feed, and day-old chicks, intended for both commercial and socioeconomic improvement. Its catalogue of materials has constantly been broadened, with poultry feed and hatchery farming being one of the original offerings, and more recently, shrimp feed and cattle feed added to their range of products..

16. Chapter: 3. Credit Procedure of ACI Limited.

17. 3.1 Purpose of Credit Policy. At the Company, credit cannot be the sole method of generating sales, Credit may be given to.

[Audio] ACI Limited takes its responsibility to customers who have requested credit seriously. We have a rigorous process in place to ensure credits are granted with consideration and integrity. This procedure includes rigorous security exams, customer verification, and creditworthiness assessments. Customers must also submit an updated Micr check payable to ACI Limited alongside a completed application form with Annexure A. A thirty-day grace period is available for full payment though a curtailed period of fifteen days may be offered to some customers. Should payments not be made in a timely manner or unsold products be returned, the credit facility will be suspended. Consistent delays will lead to the cessation of the credit agreement and legal measures will be taken. Limits for the amount of credit will depend on the customer's potential with the possibility for change after a number of transactions. ACI Limited is devoted to granting credit in good faith and with customers' best interests in mind..

[Audio] ACI Limited manages credit effectively and performs analysis well to remain competitive in the market. To do this, it follows certain procedures. Before granting credit, a valid work order/buy order format, signed by the staff member with the authority to issue purchase requisitions, must be provided. Executive Director's special consent is also required for tender credit. Pre-approved short-term credit allows accounts to rotate within a month without the need for security collateral. These strategies enable ACI Limited to reach its targets and remain successful..

[Audio] Md. Zahinul Islam Sikder, an intern with us, has successfully worked on the Credit Management & Performance Analysis of ACI Limited under the guidance of Md. Humayun Kabir. We have established a Credit policy requiring an Area Sales Manager (ASM) or Area Sales Executive (ASE) to submit a request using the Annexure H form to the Head of Sales/Sales Manager (SM), which will then be reviewed and sent to the finance credit for authorization. The maximum STC credit for a single ASE/ASM is tk.80000 and customers can make multiple orders as long as the total sum does not exceed the approved credit limit. Unpaid STC by the end of the month will be collected from the related field workers. The MO/SO may be granted an additional 30 days to pay the fee with special permission. If not, the equivalent pay and monthly expenses will be deducted from the following month. Moreover, if sales earnings and products are stolen, the remaining STC credit will be deducted from its final payout as decided by the BM. Lastly, MO/SO must take back unsold goods from customer outlets and deliver them to the depot manager to make the necessary adjustments..

[Audio] Credit activities of ACI Limited is an efficient and effective process. It offers effective credit solutions for the customer's need. In this chapter, all the credit activities of the company are analyzed and the strategies are compared with other companies in the sector. In this paper, the credit approval process and collection activities of ACI Limited are analyzed. "In this slide I will talk about the analysis and management of credit activities of ACI Limited. Credit activities are a key area for financial institutions to ensure profit and growth. ACI Limited has adopted innovative strategies to manage their credit activities. In this chapter, I have critically analyzed these strategies and compared them with those of other companies in the sector. Additionally, the credit approval process and collection activities of the company are also analyzed. This has enabled us to arrive at a conclusion on the current position and future challenges that the company may encounter. With this analysis, it is possible to identify the areas that require improvement and take appropriate actions..

[Audio] Today I'm talking about ACI limited and their credit management and performance analysis. ACI limited have implemented their supply on credit policy based on the customer written order and the delivery of the goods will be done by the Distribution Department with a Credit Invoice or Delivery Challan. It is strictly prohibited for any employee or outside party to receive materials from the Distribution Department. Moreover, Central Credit Coding has been adopted to enhance control over credit operations. If any customer needs ACT's help in redistribution, they will receive the goods with a stamp and signature. Additionally, extension of Credit Limit and Days has been adopted. The credit limit will be raise according to their prior performance and potential but there are some required contractual conditions which must be met..

[Audio] Without greetings, beginning with Today, and without thanks: Colleagues, in order to establish successful credit facilities, let's review the criteria set by Md. Zahinul Islam Sikder in his internship report on Credit Management & Performance Analysis of ACI Limited. The proposal must include certain documents such as Annexure Al, Annexure A, Annexure B1 and Annexure C1. Additionally, if a deposit credit customer applies, the limit will be raised proportionately to the extra amount deposited. The amount of the purchase order will be used to establish the credit facilities for all other categories. Caution should be exercised while approving the extension request and only extend credit days for certain scenarios. A timely explanation of what is accessible to the customer, the aging schedule, and the movement of debtors should be assembled and distributed by Finance Credit. That is all for this slide, let's move on to the next..

24. Prior SMS notification:. When their outstanding receivables are set to mature, customers will receive an early notification.

[Audio] ACI Limited's Credit Management & Performance Analysis report includes a slide that presents the aging of debtors, outlining the doubtful debt percentages for different stages of debt, and the procedure for returning security documents to the customer. The procedure requires a letter from a designated party to be sent to the Head of Sales, which will be investigated by Finance-Credit. If it is determined that there is no balance owing, the security checks, guarantees and deposits will be returned promptly. ACI Limited is taking all necessary steps to ensure efficient credit management..

26. Chapter: 5. Performance Analysis of ACI. Limited.

[Audio] Ratio analysis, which is a form of financial statement analysis, is an important part of successful business operations. Ratios provide insight into how a business has performed over time and can detect areas of success and areas of potential improvement. This, in turn, helps external lenders to make more educated decisions when providing funds. Additionally, ratio analysis helps corporate decision makers to make prudent decisions for the organization's future. In essence, financial statement analysis is a key part of corporate governance, providing stakeholders with the data they need to make informed decisions about the enterprise..

[Audio] The Current Ratio of ACI Limited is an important indicator of its overall financial health. From the data for the five years between 2018 and 2022, displayed in Figure 1, it is evident that the Current Ratio is typically around 1.1 to 1.2 times, staying within a reasonable threshold, with 2021 having the highest value of 1.17 times. This provides assurance that ACI Limited is capable to pay off its short-term debt in an efficient manner..

[Audio] ACI Limited's quick ratio has been fluctuating over the past years, but is currently at 0.93. This indicates the company can satisfy its short-term liabilities without needing to rely on revenue from inventory. Compared to 2021 when the ratio was 0.90, this suggests a more stable financial position. With a quick ratio of 0.93, there is improved liquidity and the company is better equipped to cover its short-term obligations. Further analysis to determine the cause of fluctuations over the years is essential to gain a better understanding of the company's financial stability..

[Audio] ACI Limited has maintained a steady performance in terms of its profitability ratios over the past five years. The Gross Profit Margin has been roughly 24%, the Operating Profit Margin has been around 9%, and the Net Profit Margin has been roughly 5%. These metrics demonstrate ACI Limited's effective management of its financial resources. The Return on Equity has also stayed strong at approximately 23%, while the Return on Assets was 9%. This demonstrates ACI Limited's capability to produce returns on its investments during the 2019-2022 financial year..

[Audio] The graph shows that the gross profit margin of ACI Limited has had considerable fluctuation over the past 5 years. From 2018 to 2019, the margin increased 2.14 percent to 46.14 percent. However, it then dropped 3 percent in 2021 and 5.76 percent in 2022. This data provides an informative look into the financial performance of ACI Limited and further investigation can draw further interpretations..

[Audio] ACI Limited's operating profit margin has shown an overall positive trend over the years, with percentages of 7.84%, 7.62%, 13.88%, 13.77%, and 12.08% in 2018, 2019, 2020, 2021, and 2022 respectively. This demonstrates a steady increase in the rate throughout the period, apart from the slight dip in 2022. This indicates the company's effectiveness in managing their profit and revenue, while effectively controlling costs to optimize their performance..

[Audio] The net profit margin of ACI Limited has seen a fluctuation over the last four years, from 2018 to 2022. In 2018 the margin was 6%, before a decrease to 2.44% the following year. In the subsequent three years, however, a more positive trend has resurfaced, with margins of 7.41%, 8.89% and 7.87% in 2020, 2021 and 2022 respectively. This indicates that the financial decisions taken by the management of ACI Limited have had a positive effect on the company..

[Audio] Md. Zahinul Islam Sikder has presented a thorough analysis of ACI Limited's credit management and performance. The Return on Assets (ROA) graph of ACI Limited showed a 3.69% ROA in 2018, which then steeply decreased to 1.32% in 2019. From 2020 to 2021, there was an uptick in the ROA that ultimately made its way up to 4.61% in 2021 before decreasing to 4.07% in 2022. This data indicates that ACI Limited has displayed an increase in effectiveness and is proficiently utilizing its assets to maximize profits..

[Audio] Analysis of the Return on Equity of ACI Limited over the 5 year period 2018-2022 reveals an overall significant improvement. The Return on Equity began at 9.24% in 2018, dropping to a low of 3.71% in 2019, before increasing dramatically to 12.11% in 2021 and settling to 10.83% in 2022. These results demonstrate the successful utilization of stockholders' capital in driving profit growth for ACI Limited..

36. 5.5 Efficiency Ratio. Efficiency ratios are measures of a company’s capacity to utilize its resources and manage its.

[Audio] ACI Limited's Total Assets Turnover indicates how the business utilizes its assets to generate income. Data from 2018 to 2022 reveals a consistent decrease in assets turnover, from 0.59 times in 2018 to 0.51 times in 2022. Conversely, the Inventory Turnover Ratio exhibited a unique pattern. It began strongly in 2018 with a ratio of 2.45 times, and then dropped to 2.25 times in 2019, followed by a gradual rise in 2020, 2021, and 2022 at 2.39 times each year. This implies that ACI Limited is efficiently managing their inventory and assets to generate revenue..

[Audio] Figure 9 shows that total assets turnover has been decreasing steadily from 0.59 in 2018 to 0.51 in 2022. The decrease of 0.08 over 4 years indicates an inefficiency in using the assets to generate sales. The average turnover of 0.54 and minimum turnover of 0.51 show that more than half the years have seen weaker than average turnover. The figures for fixed assets turnover are also lower, dropping from 2.43 in 2018 to 2.15 in 2022, a clear indication that ACI Limited has not been able to use its fixed assets effectively to generate sales. Overall, this data suggests that the company has not been able to allocate its resources well to generate sales..

39. Figure 10 Fixed Assets Turnover. Interpretation: A fixed asset turnover ratio is a financial ratio that measures a business’s ability.

[Audio] At ACI Limited, we have seen a drastic improvement in the Debtors Turnover Ratio over the years, going from an average of 4.35 in 2018 to 10.01 in 2022. This illustrates the success of our credit management and performance analysis processes, and serves as a testament to the hard work of our employees and the leadership of our supervisor, Md. Humayun Kabir..

[Audio] The findings of the report show that ACI Limited's receivable turnover ratio has improved over the years, with their "Average Sales Collection Period" decreasing from 83.91 days in 2019 to 36.46 days in 2022. This indicates that the company's collection methods have become more effective, resulting in higher cash inflows. Such impressive results demonstrate the capability of the company. We would like to extend our congratulations and thanks to Md. Zahinul Islam Sikder and his supervisor Md. Humayun Kabir for producing such an impressive report. Thank you..