1. Following are the Income Statement and the Balance sheet of ACI Formulations Limited for the year 2018 and 2019. Finance costs are the interest expenses. A new CFO was appointed and he wanted to know about the results of the ratios for 2019 in the following areas: Liquidity, Activity, Debt Management and Profitability.

Calculate the following ratio in 2019 and comment on it:

1. Net Profit Margin

ACI Formulations Limited Statement of profit or loss and other comprehensive income In Taka Note 26 27 28 For the year ended for the year ended 30 June 2019 30 June 2018 4,025,285,890 4,127,465,958 (2,814,616,591) (3,100,967,609) 1,210,669,299 1,026,498,349 5,109,758 6,594,472 (799,954,438) (690,177,273) 415,824,619 342,915,548 (224,760,871) (171,020,345) 191,063,748 171,895,203 (9,553,187) (8,594,760) 181,510,561 163,300,443 Revenue Cost of sales Gross profit Other income Administrative, selling and distribution expenses Operating profit Finance costs, net Profit before contribution to WPPF Contribution to WPPF Profit before tax Income tax expense Current tax Deferred tax income/(expense) 29 30 31 (63,149,803) 10,093,093 (53,056,710) 128,453,851 (40,544,336) (7,721,122) (48,265,458) 115,034,985 Profit after tax