Corporate Financial Reporting of BOC Bangladesh Ltd

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CORPORATE VISION:

We shall be recognized as the leader in all business sectors in which we compete in Bangladesh

Our success will be build on our absolute dedication to the satisfaction of our customer through constant

Innovation, operational efficiency cost effectiveness and the talent of our people.

We shall always apply high standard integrity and responsibility of our activities.

INTRODUCTION:

Corporate Annual reports are widely used in understanding the Quality of corporate Governess. A well-designed annual report is an attempt to express, as much as possible, the 365 days activities of a company. In general a corporate annual report contains information’s such a statement of the chief executive officer, a statement from the chairman, composition of the board of directors, and financial statements vise , income statements, statements of retained earnings, balance sheet and a cash flow statement. It also includes notes and supporting schedules such as schedule of long-term assets, five to ten years performance statistics, information on human resources development and the auditor’s report.

The chief executive officer or the chairman’s report usually states the current operations of and future challenges for the company. The reports contain both opportunities and threats for the company and the shareholders. The disclosers of the composition of the board of directors are important. The directors in the board and their contribution and importance in the society are considered important by the shareholders. Most importantly the presence of outside independent directors in the board is considered necessary for good governance. Financial statements are considered the most important part of an annual report. Income statements quantifies the operation of a business and gain or loss from these operations, balance sheets the assets and liabilities of the business, and cash flow statement shows the liquidity position of the business. These three financial statements show the financial health of the business. In any particular year, these statements disclose the company’s current year end and the immediate previous state of financial performance. A company also discloses historical performance statistics for a period of five to ten years. Performance is measured in terms of profitability, liquidity, and solvency.

In guiding the preparation of the above financial statements, there is International accounting standards.  so far the  International  accounting standard committee(IASC) has developed 40 accounting standards(IASC 2002).The purpose of these standards is  to facilitate harmony in accounting practices by companies so that performance evaluation and  investment decisions become easier for the shareholders. One of these standards is adequate disclosure, which says that financial statements shall disclose all material information important for decision making.

The chairman’s report usually covers a short review of current activities, salient features of organization performance, strength of the organization and potential threats that may hamper the organizations future. A well designed report can help investors and other stakeholders in their investment decisions. A good report is one which can capture the past, present and future. It contains not only the achievements of the organization but also its weaknesses and opportunities lost. It also contains the policies and strategies under consideration to sustain the strengths and removes the barriers in the way of targeting the future opportunities 

While financial statements are historical in nature, they can still provide users with valuable insights. These users rely on financial statement analysis, which involves examining trends in key financial data, comparing financial data across companies, and analyzing financial ratios to assess the financial health and future prospects of a company. Here we focus our attention on the most important ratios and other analytical tools that financial analysts use.

In addition to stockholders and creditors, managers are also vitally concerned with the financial ratios. The ratios provide indicators of how well the company and its business units are performing. The specific ratios selected depend on the company’s strategy. For example, a company that wants to emphasize responsiveness to customers may closely monitor the inventory turnover ratio. Since managers must report to stockholders and may want to raise funds from external sources, managers must pay attention to the financial ratios used by external investors.

Historical Background BOC Bangladesh Ltd.:
Theoretical view:

BOC Bangladesh Ltd. Is a member of the Linde Group, a multinational company that has been present in Bangladesh for over 50 years with continuous expansion in operation and business with a modest appearance at the beginning BOC Bangladesh Ltd. Products are now part and parcel of all the industrial and economic activities of the country. Today the turnover of the company has exceeded tk.1.25 billion.BOC Bangladesh Ltd. Is a listed company in our market? This company listed in 1976.The registered office in 285 tejgoan I/A, Dhaka-1213.BOC Bangladesh Ltd is a member of the Linde Group having its head office in Munich, Germany has been present in Bangladesh for over 50 years with continuous expansion in operation and business.

Ø  Performance at a glance:

· Financial History