INFORMATION TECHNOLOGY (IT) INDUSTRY

(DSE)
Amra Technologies Limited (ATL)
Amra technologies limited (ATL) is a pioneering technology company that has been dedicated
towards providing the banking market with the most advanced and revolutionary hardware,
software and connectivity solutions for close to three decades. The synonym of excellence, ATL
is trusted by all the leading local and foreign banks for its exemplary service that is always on the
rise owing to its highly talented and empowered human resources.
Previously known as Texas Electronics Limited, aamra technologies limited was initiated on
December 31, 2007 with a new name and newer visions and missions that promise to advance
Bangladesh in their business sector like never before. As of February 03, 2010, ATL has been
incorporated in Bangladesh as a Public Limited Company with the Office of the Registrar of
Joint Stock Companies and Firms.
ATL has throughout the years continued to provide comprehensive IT solutions and services that
include Systems Integration, Information System Outsourcing, Core Banking Software,
Switching and Network and Solutions, supply, implementation and maintenance. As a major
player in the IT sector of Bangladesh, ATL has developed its business model over the time
through carefully analyzing the emerging market trends of the Asia-Pacific region. The company
is investing in capacity and technology that will lead to sustainable, long-term growth and
profitability based on the value offered to clients.
aamras core focus is to consistently introduce the latest products while maintaining outstanding
customer services as it continues to explore newer horizons to deliver newer and better IT
solutions to its most valued premium asset its customers.
As aamra grows ever so competently, it promises to be the first to empower its customer base
with groundbreaking technological services that are specifically designed to improve the
efficiency of their business for the first time in the history of its industry in Bangladesh.

Working Capital Analysis of ATL

Ratio

2014

Current Ratio
CA

CL
CR

1,454,662,238
562,581,143
2.585693204

Quick Ratio
(CA
Inv)

CL
QR

1,454,662,238
793037293
562,581,143
1.176052474

Net Working Capital

NLB
+
WCR
NWC

Net Liquid Balance [NLB]

-438,145,476
1,330,226,571
892,081,095

Cash and Cash Equivalents

+
Marketable Securities
-

Notes Payable
Short-Term Debt or Current Portion of LongTerm Debt
NLB

10624087
0

448,769,563
0

-438,145,476

Working Capital Requirements (WCR)

Accounts receivables
+
Inventory
+
Prepaid Expenses
+
Others CA
Accounts Payable
Accruals& other CL
WCR

Working Capital Requirement / Sales

428,283,879
793037293
222461979
255000
39,042,139
74769441
1,330,226,571

(WCR/Sales)
WCR

Sales
WCR/Sales

1,330,226,571
1,016,522,973
1.308604534

Days Inventory Held (DIH)

Inventory

Cost of goods sold/365

DIH

793037293
810,389,100/36
5
357.184 Days

Days Sales Outstanding (DSO)

Accounts Receivables

Sales or Revenues/365
DSO

428,283,879
1,016,522,973/
365
153.782 Days

Days Payable Outstanding (DPO)

Accounts payables

39,042,139

Cost of goods sold/365

DPO

810,389,100/36
5
17.58 Days

Operating cycle
DSO
+
DIH

153.78
357.18

OC

510.96 Days

Cash Conversion Period (CCP)

OC
DPO

510.96

CCP

493.38 Days

17.58

InTech Limited:
Intech Online Limited, founded February 2000, is an internet Service Provider offering a
comprehensive array of products and services to commercial as well as residential subscribers
throughout the country. Founded on the belief that customer focus is the key to success in the
marketplace, InTech continues to experience growth driven by our loyal client base. As such,
InTech is continually searching for ways to provide outstanding service to its residential and
business consumers. By exceeding client expectations, InTech strives to define a new standard of
service for all of its customers.
During its initial operating days, InTech will offer the most popular services including dial-up
Internet access and web page hosting. Over the next few months, InTech will expand its product

line and service offering to meet the changing needs of the consumer. Included among the
additions are dedicated line connections, large managed dial-up services, VPN solutions, and
Internet consulting.
With its recent transformation into a public Limited Company, we boast a paid-up capital of Tk.
40 million at a market capitalization of Tk. 55 million as of February 2003.
Committed to provide the best solutions for seamless internet access, we only use award winning
equipments with excellent track record. Backed totally by CISCO and 3COM solutions, we
maintain highly stable connectivity round the clock. As such, Intech is continuously searching
for more ways to provide outstanding services to the business and residential communities.
InTech Online Limited (IOL) is pleased to introduce a brand new digital dial-up service based on
state of the art E-1 digital technology. This is the first of its kind from any of the ISP in
Bangladesh.
This will enable our valued clients to be connected to the net with the utmost ease and
convenience. To enable our clients get the most value for their money, we have set up Card
selling locations all over the city, so you can buy the card from a place next door to your house.

Working Capital Analysis of INTECH

Ratio

2014

Current Ratio
CA

CL

75,870,727
5,689,902

CR

13.33427658

Quick Ratio
(CA
Inv)

CL
QR

75,870,727
4176815
5,689,902
12.60020155

Net Working Capital

NLB
+
WCR
NWC

492,125
69,687,700
70,179,825

Net Liquid Balance [NLB]

Cash and Cash Equivalents
+
Marketable Securities
-

Notes Payable
Short-Term Debt or Current Portion of LongTerm Debt

541715
0

49,590
0

NLB

492,125

Working Capital Requirements (WCR)

Accounts receivables
+
Inventory
+
Prepaid Expenses
+
Others CA
Accounts Payable
Accruals& other CL
WCR

63,056,738
4176815
8011774
82685
5,552,563
87749
69,687,700

Working Capital Requirement / Sales

(WCR/Sales)
WCR

Sales
WCR/Sales

69,687,700
77,609,265
0.897930163

Days Inventory Held (DIH)

Inventory

4176815

Cost of goods sold/365

DIH

27,894,966/365
54.65 Days

Days Sales Outstanding (DSO)

Accounts Receivables

Sales or Revenues/365
DSO

63,056,738
77,609,265/365
296.55 Days

Days Payable Outstanding (DPO)

Accounts payables

Cost of goods sold/365

DPO

5,552,563
27,894,966/365
72.65 Days

Operating cycle
DSO
+
DIH
OC

Cash Conversion Period (CCP)

296.55
54.65
351.211 Days

OC
DPO

351.211
72.65
278.55 Days

CCP

INTERPRETETION
Current ratio:
CR = Current asset/ current liability
From the above table and information it is found that current ratio of the INTECH is well enough
to cover the debt by its assets. In 2014 the total current assets of ATL was 2.58 times than the
current liabilities and INTECH was 13.33 times than the current liabilities.

CR
14
12
10
CR

8
6
4
2
0
ATL

INTECH

Quick ratio:
QR = (Current asset-inventory)/ Current liability
This indicates that company might fall in problem in problem to pay its current debt in the
emergency situation. As a result debtor may want to increase their cost (interest rate) for this
company which will make the company difficult to manage working capital. In 2014 the current
assets excluding inventories of ATL was 1.17 times than the current liabilities and INTECH was
12.60 times than the current liabilities. Here, INTECH is in a good position.

QR
14
12
10
QR

8
6
4
2
0
ATL

INTECH

Net Working capital:

The NWC value of ATL and INTECH are positive condition which means the companies are in a
good position. Among those companies, ATL has 892,081,095 NWC which is larger than the
INTECH has 70,179,825. So that, we can say ATL is stronger than INTECH.

NWC
1000000000
900000000
800000000
700000000
600000000
500000000
400000000
300000000
200000000
100000000
0

NWC

ATL

INTECH

Working capital:
WCR/sales
Working capital is a financial measurement of the operating liquidity available to a business. It is
also known as net working capital or working capital ratio. In 2014, the working capital ratio of
ATL is 1.30 and INTECH is 0.89.

WCR
1.4
1.2
1
WCR

0.8
0.6
0.4
0.2
0
ATL

INTECH

Days inventory held (DIH):

DIH = Inventory/ (cogs/365)
ATL hold their inventory for 357.08 days from the supplier supplies the inventories and INTECH
hold their inventory for 54.65 days from the supplier supplies the inventories.

DIH
400
350
300
250

DIH

200
150
100
50
0
ATL

INTECH

Days sales outstanding (DSO):

DSO = Accounts receivable/ (sales/365)
ATL sell out their inventories within 153.78 days and INTECH sell out their inventories within
296.55 days. Here, ATL is doing well.

DSO
1800
1600
1400
1200

DSO

1000
800
600
400
200
0
ATL

INTECH

Days payable outstanding (DPO):

DPO = Accounts payable/ (cogs/365)
ATL make out to pay their credit to lenders within 17.58 days and INTECH make out 72.65 days
to pay the credit to lenders. Here, INTECH is doing well.

DPO
80
70
60
50

DPO

40
30
20
10
0
ATL

Cash conversation period (CCP):

CCP = OC DPO

INTECH

ATL will get their receivable after 493.38 days where they have to payment their credit to
suppliers before 493.38 days and INTECH have to complete the payment within 278.55 days
where they will get receivable after 278.55 days which is good.

CCP
600
500
400

CCP

300
200
100
0
ATL

INTECH

Summary of Information Technology Industries ratio analysis with

industry average

Ratio

ATL

INTECH

Industry average

CR

2.58

13.33

7.95

QR

1.17

12.60

6.88

NWC

892,081,095

70,179,825

481130460

WCR to sales

1.30

0.89

1.09

DIH

357.18

54.65

205.91

DSO

153.78

296.55

225.16

DPO

17.58

72.65

45.11

CCP

493.38

278.55

385.96