To analyze the financial statement of NAVANA CNG Limited. To calculate the different financial ratios. To understand the implications in analyzing and interpreting the financial ratios. To identify the findings and raise possible recommendations for NAVANA CNG Ltd

1. Welcome to the Presentation
Bangladesh University of Business & Technology (BUBT)

3. Company Profile
NAVANA CNG Limited a sister concern of NAVANA GROUP was formed in 2004, and
has quickly emerged itself as the leading CNG service provider of Bangladesh. Its
years of experience are the standard setter of CNG industry.
NAVANA CNG Limited is the sole distributor of world famous CNG and LPG
conversion kit manufacturer LANDIRENZO s.p.a. Italy. NAVANA CNG Limited solely
represents the renowned manufacturer of CNG Refueling Station Technology Safe
s.r.l.
At present NAVANA CNG Limited is running 8 numbers of CNG conversion workshop
and 20 numbers of CNG refueling stations located as major cities. So far, Navana
CNG Limited has sold more than 211 numbers of refueling stations all over
Bangladesh, which is more than 60% market share in the industry. NAVANA CNG
Limited is an unlisted company. All unlisted companies are required to complete
certain procedures to get listing at Dhaka Stock Exchange (DSE).

4. Objectives of the Report
1. General Objectives
The main key objective of the report is to partial fulfillment of MBA Program.
2. Specific Objectives
There are some specific objectives also. This are
To Analyze Financial Performance of NAVANA CNG Limited.
To analyze the financial statement of NAVANA CNG Limited.
To calculate the different financial ratios.
To understand the implications in analyzing and interpreting the financial ratios.
To identify the findings and raise possible recommendations for NAVANA CNG Ltd.

5. Analyzing the Financial performance of NAVANA CNG
LIMITED by calculating different financial ratios

6. Authorized Capital and Paid up Capital
Year Authorized capital Paid Up Capital Reserve and Surplus
2007 200 51 123.04
2008 200 100 282.49
2009 500 300 327.16
2010 500 363 555
2011 500 436 747

7. Current Ratio
NAVANA CNG LTD.
Year Current Assets Current Liabilities Current Ratio
2007 440 206 2.14
2008 575 76 7.57
2009 466 196 2.38
2010 650 192 3.39
2011 892 235 3.80

8. Current Ratio
Graphical Presentation:

9. Net Working capital
Net Working Capital=Total Current Assets-Total Current Liabilities
NAVANA CNG LTD.
Year Current Assets Current Liabilities Net working Capital
2007 440 206 234
2008 575 76 499
2009 466 196 270
2010 650 192 458
2011 892 235 657

10. Net Working capital
Graphical Presentation

11. Fixed Asset Turnover
Fixed Asset Turnover=Sales/Net Fixed Asset
NAVANA CNG LTD.
Year Sales Net Fixed Assets Fixed Asset Turnover
2007 727 186 3.90
2008 984 287 3.42
2009 1236 587 2.10
2010 1368 548 2.50
2011 1392 576 2.42

12. Fixed Asset Turnover
Graphical Presentation

13. Total Asset Turnover
Total Asset Turnover=Sales/Total Asset
NAVANA CNG LTD.
Year Sales Total Assets Total Asset Turnover
2007 727 627 1.16
2008 984 879 1.12
2009 1236 1094 1.12
2010 1368 1235 1.10
2011 1392 1506 0.92

14. Total Asset Turnover
Graphical Presentation

15. Debt-Total Asset Ratio
Debt Ratio=Total liabilities/Total assets
NAVANA CNG LTD.
Year Total Liabilities Total Assets Debt Ratio
2007 452 627 0.72
2008 496 879 0.56
2009 467 1094 0.42
2010 317 1235 0.25
2011 323 1506 0.21

16. Debt-Total Asset Ratio
Graphical Presentation

17. Debt-Equity Ratio
Debt-equity Ratio =Long -term debt/stockholder’s equity
NAVANA CNG LTD.
Year Long-term Debt Stockholders’ Equity Debt-equity Ratio
2007 452.50 174.04 260%
2008 497.23 382.49 130%
2009 464.09 627.16 74%
2010 321.3 918 35%
2011 319.41 1183 27%

18. Debt-Equity Ratio
Graphical Presentation

19. Gross Profit Margin
Gross Profit Margin = (Sales-COGS)/Sales=Gross Profit/Sales X 100
NAVANA CNG LTD.
Year Gross Profit Sales Gross Profit Margin
2007 228 727 40.94%
2008 407 984 41.32%
2009 477 1236 38.58%
2010 601 1368 43.93%
2011 605 1392 43.44%

20. Gross Profit Margin
Graphical Presentation

21. Operating Profit Margin
Operating Profit Margin=Operating Profit/Sales X 100
NAVANA CNG LTD.
Year Operating Profit Sales Operating Profit Margin
2007 113 727 15.43%
2008 209 984 21.18%
2009 245 1236 19.80%
2010 401 1368 29.31%
2011 403 1392 28.98%

22. Operating Profit Margin
Graphical Presentation

23. Net Profit Margin
Net Profit Margin=Net Profit after Tax/Sales X 100
NAVANA CNG LTD.
Year Net Profit After Taxes Sales Net Profit Margin
2007 112 727 15.43%
2008 208 987 21.18%
2009 245 1236 19.80%
2010 291 1368 21.27%
2011 301 1392 21.62%

24. Net Profit Margin
Graphical Presentation

25. Return on Investment
Return on Investment=Net Profit after Tax/Total Assets X 100
NAVANA CNG LTD.
Year Net Profit After Taxes Total Assets Return on Investment
2007 112 440 25.45%
2008 208 575 36.17%
2009 245 466 52.57%
2010 291 650 44.76%
2011 301 892 33.74%

26. Return on Investment
Graphical Presentation

27. Return on Capital Employed
ROCE= Net profit after taxes/ Total capital employed X100
NAVANA CNG LTD.
Year Net Profit After Taxes Total Capital Employed Return on Capital employed
2007 112 627 17.90%
2008 208 879 23.72%
2009 245 1094 22.36%
2010 291 1235 23.56%
2011 301 1506 19.98%

28. Return on Capital Employed
Graphical Presentation

29. Return on Equity
Return on Equity=Net Profit after Tax/stockholder's equity X 100
NAVANA CNG LTD.
Year Net Profit After Taxes Stockholders’ Equity Return on Equity
2007 112 174.04 64.42%
2008 208 382.49 54.50%
2009 245 627.16 39.01%
2010 291 918 31.70%
2011 301 1183 25.44%

30. Return on Equity
Graphical Presentation

31. Earning Per Share
EPS= Earnings available for common stockholders/Number of Shares of common stock outstanding
NAVANA CNG LTD.
Earnings available for Number of Shares of common
Year common stockholders stock outstanding Earning Per Share
2007 112000000 20000000 5.60
2008 208000000 20000000 10.40
2009 244661587 36300000 6.74
2010 290789036 36300000 8.01
2011 300882758 43560000 6.91

32. Earning Per Share
Graphical Presentation

33. Interpretation
•Liquidity Ratios:
•Net Working capital: The NWC of Navana CNG is highly satisfactory level of 2007 to 2011.
•Current Ratios: The CR is positively increasing.
•Activity Turnover
•Fixed Asset Turnover: Navana CNG FAT is increasing decreasing trend it should be increase.
•Total Asset Turnover: Total asset are not efficiently used to generate sales, so company
should efficient to utilizing the company total assets.
•Debt Ratios
•Debt Ratio: It s shows greater indebtedness and high degree financial leverage to generate profit.
•Debt-Equity Ratio: This indicates better condition.
•Profitability Ratios
•Gross Profit Margin: The cost of goods sold is efficiently manage by Navana CNG
•Operating Profit Margin: The cost price effectiveness of the operation is positively increasing trends.
•Net Profit Margin: Success to achieve the cost effectiveness of operations and has positive trends.
•Return on Investment: It has increasing and decreasing trends so it should be done to positive
by utilizing the company assets.
• Return on Equity: Moderate level of ROE achieved from last five years.
•Return on Capital Employed: The ROCE is better and has increasing trends.
•Earnings per Share: They got very pessimistic EPS from Last years.

34. Findings
Ratio Analysis:
Liquidity Ratios:
The net working capital (NWC) of NAVANA CNG is satisfactory position all the last
five years from 2007 to 2011, because it showed a positive networking capital
which indicates a huge liquidity reserve of the company.
The short-term financial solvency of NAVANA CNG is strong.
Activity Ratios:
The capital turnover ratio of NAVANA CNG indicates that total capital was not
efficiently managed and utilized throughout the period from 2007 to 2011.
The average collection period is shorter which may discourage the credit sales.
The fixed assets of NAVANA CNG are efficiently used to generate sales.
The total asset turnover ratio of NAVANA CNG indicates that, total assets are
efficiently used to generate sales throughout the period from 2007 to 2011, as
they are acceptable limit.



35. Findings (Continued)
Debt Ratios:
The debt ratio of NAVANA CNG indicates a little indebtedness and lower degree of
financial risk, to generate profits during 2007 to 2011.
NAVANA CNG has adequate earnings to pay its interest charges.
Profitability Ratios:
NAVANA CNG is in the better condition regarding the operating efficiency during
the last five years as it has produced the acceptable operating profit margin.
NAVANA CNG has achieved an enough return on investment, which indicates the
effective management in generating profits with its available assets.
NAVANA CNG achieved a highly satisfying return on capital employed which
indicates the effective management in generating profits with its total capital
employed during 2007-2011.
NAVANA CNG has got very optimistic Earning per Share (EPS) during 2007 to
2011.

36. Conclusion
NAVANA CNG LTD is a sister concern of Navana Group is a trend
better in the CNG Industry. The company is always trying for better
environment friendly energy solution. Keeping that in mind the
company is expanding its operation in the Welding rod and uPVC
industry sector which the largest means for great achievement all
over the country. This is a demand of time, being successful in this
project will open a new window to save foreign currency. Getting listed
DSE will bring this company closer to the mass people and clearer of
its operation.

37. Recommendation
NAVANA CNG Limited can take the following recommendations into consideration:
NAVANA CNG Limited can increase its current assets more by enhancing the accounts
receivable and can decrease its current liabilities by reducing its bank overdraft and short term
loan. The company can try to increase its quick assets like-cash, accounts receivable and
marketable securities.
It also can reduce inventory to improve its inventory turnover ratio.
Company’s management should be more efficient in utilizing the company’s capital to
generate sales.
NAVANA CNG Limited is supposed to offer attractive credit policy to its customers by
extending credit period from 60 days to 90 days.
The company should try to utilize its fixed assets more efficiently to accelerate sales.
The company’s management should be more efficient in utilizing the company’s total assets
to generate sales. It should aim to achieve optimum capital structure by reducing debt capital
as well as by increasing equity capital to finance its total assets.
The company ought to enhance its earnings by accelerating its sales as well as by minimizing
its operating costs in order to get adequate earnings.

38. Bibliography
Books:
1. Lawrence J. Gitman “Principal of Managerial Finance”, 11th Edition (April
2004) Pearson edition
Website:
www.navanacng.com
www.navana.com
Annual Report:
1. Navana CNG Ltd., 2007
2. Navana CNG Ltd., 2009
3. Navana CNG Ltd., 2011