PROJECT ON

FINANCIAL STATEMENT ANALYSIS

OF
D G KHAN CEMENT LTD
 SUBMITED TO:
SIR HAMZA MUKHTAR

SUBMITED BY:-
UMAR FAROOQ 2008-ag-197
QAMAR SHAHZAD 2008-ag-184
 AREA OF DISCUSSION
We conduct our analysis on following issues

Economy Analysis
Industry Analysis
Firm Analysis
 ECONOMY OF PAKISTAN
Pakistan economy is combination of industrial 26.8% ,
agricultural 19.6% and service sector 53.7% and industry
sector includes textile, cement, chemical, food processing,
steel, transport, clothing and paper products . Exports are
$17.78 billion and Imports are $30.99 billion. Economy of
Pakistan is the 27th largest economy of the world in term of
purchasing power and 48th largest in absolute dollar terms .
The economy has suffered in the past from internal political
disputes, a fast growing population , mixed level of foreign
investment and a costly ongoing confrontation with
neighboring India. However IMF approved government
policies , bolstered by foreign investment and renewed
access to global markets , have generated solid
macroeconomic recovery the last decade . Substantial
macroeconomic reforms since 2000 most notably at
privatizing the banking sector have helped the economy
 ECONOMIC GROWTH
In current year Pakistan economic growth rate is
decreased as compared to the previous year by 1.7% . The
growth is 4.1% where as the last year growth was 5.8%
Major factors , which cause in decrease in growth rate are
Internal factors
Political instability
Unstable law and order
Power resources crisis
War against terrorism
External factors
International financial crises
 GDP OF PAKISTAN
9 9

8 7.5
7 6.8

6 5.8 5.8
5
GDP
4

2
2
1

0
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
 COMPARISON OF GDP IN
10
SOUTH ASIA 10

9.2 9.2 9.2

9

8
7.5
7 .
6.8 6.7
6 6 6.3 6.3
5.8
5.8 PAKISTAN
5.6
5 INDIA
4.9
4.8 SRILANKA
4
BANGLADESH
3

1 2

0
2005-06 2006-07 2007-08 2008-09
 OTHER FACTORS OF
ECONOMIC GROWTH
Inflation
Remains the biggest threat to the economy , jumping to more
than 9% in 2005 before easing to 7.9% in 2006 . In 2008 following the surge
in global petrol prices inflation in Pakistan has reached as high as 25% . The
central bank is pursuing the tighter monetary policy while trying to preserve
growth.
Recent situation
The CPI inflation averaged 23.5% in July-February 2008-09 as against 8.9% in
the comparable period of last year.
The food inflation is estimated at 28.9%in July-February 2008-09 as against
13.0%in the comparable period of last year.
The non-food inflation stood at 19.3%, against 5.9% in the corresponding
period of last year.
The Wholesale Price Index (WPI) during first eight months of 2008-09 has
increased by 24.7%, as against 11.7% in the comparable period of last year.
Inflation in Pakistan has shown rigidity to monetary policy measures
because on one side there is a concretionary monetary policy and on the
other an expansionary fiscal policy.
 OTHER FACTORS OF ECONOMIC
GROWTH (CONTINUE)

MONETARY POLICY
Monetary policy stance of the SBP has
undergone considerable changes over the last seven years, gradually
switching from an easy monetary policy to the current aggressive tight
monetary policy stance depending on the inflationary situation in the
country. During FY08, the SBP continued with a tight monetary policy
stance, thrice raising the discount rate and increased the Cash Reserve
Requirement (CRR) and Statutory Liquidity Requirement (SLR).

In the monetary policy decision of 29 SEP 2009 the SBP policy rate was
decided 13%
And in the monetary policy decision of 24 NOV 2009 SBP policy rate was
lowered by 50 bps to 12.5%
INTEREST RATES IN PAKISTAN
14

12.5
12

10 10.2 10.6

8
8.5
INTEREST RATE
6

0
2005-06 2006-07 2007-08 2008-09
 OTHER FACTORS OF ECONOMIC
GROWTH (CONTINUE)
CAPITAL MARKET
Pakistan’s stock market has emerged as one of the fastest growing
markets in emerging economies in recent years. Local and foreign
investors’ confidence in the investment environment of Pakistan has
boosted the index to peak highs
Pakistan’s benchmarked stock market index - the Karachi Stock
Exchange - KSE-100 index has increased from 1,521 points on
June 30, 2000 to 12,130.5 points on May 30, 2008.
But latest financial crunch also effects the market index.
Now in DEC 2009 KSE 100 index is at 9072 points
Major factors of this decline are:
Political uncertainty
Uncertain law and order situation
War against terror
 PAKISTANS TRADING
EXPORTS:
In absolute terms, exports have increased from $ 15.3 billion to $ 17.78
billion

Major exported goods are textile goods , rice , leather goods , sports
goods , chemicals , carpets , cement etc.

Major export partners are United States 22.4% UAE 8.3% UK 6%

China 5.4% Germany 4.7%

Exports of other manufactures and ’other items’ posted a handsome

growth of 33.2 percent 59.5 percent, respectively
 PAKISTANS TRADING
IMPORTS:
In fiscal year 2008-09 on account of an unprecedented rise
in import bills and some one-off elements in the shape of imports of wheat
and fertilizer. As a result, Pakistan’s trade and current account deficits
have widened substantially in this year contributing to serious
macroeconomic imbalances.
In absolute dollar term imports are $31 billion of worth which cause a high
trade deficit
Major import goods are petroleum , machinery , plastics , transportation
equipment , paper , iron , tea
Major import partners are China 14.7% Saudi Arabia 10.1% UAE 8.7% Japan
6.5% United States 5.3% Germany 5% Kuwait 4.9%
Imports of food group were up by 48.6 percent Imports of food group
accounted for 11 percent of total imports but contributed 16.3 percent in
the overall growth of imports in the current fiscal year
Imports of machinery increase of 6.9 reaching to $4.2 billion
 IMPORTS & EXPORTS
39.96
40 20
19.22
35 18
16.97
30.54
16 16.45
30
28.58 14 14.39
25 12
IMPORT EXPORT
20 20.59 10
(BILLION (BILLION
15 $) 8 $)
6
10
4
5 2
0 0
2005 2007 2005 2007
 Manufacturing
Manufacturing is the second largest sector of the economy.
This sector has recorded its weakest growth in a decade during
fiscal year 2007-08. Overall manufacturing posted a growth of 5.4
percent during the first nine months (July-March) of the current fiscal
year against the target of 10.9 percent and last year’s achievement
of 8.2 percent.

19 percent of GDP

Large-scale-manufacturing (LSM), accounting for almost 70
percent of overall manufacturing, registered a less-than-
satisfactory growth of 4.8 percent in fiscal year 2007-08

The relatively slower pace of expansion this year perhaps
exhibits signs of moderation on account of higher capacity
utilization, difficulties in textile and other important sectors such
as fertilizer, soap and detergent, vegetable ghee and cooking oil,
automobile sector, paper and paper board, and billets
 Investment In Pakistan
After reaching a record level of 22.9 percent of GDP in 2006-07, total
investments declined to 21.6 percent
Fixed investment decreased to 20 percent of GDP from 21.3
private sector investment however, registered a decline of 1.4 percentage
points - declining from 15.6 percent to 14.2 percent
Private sector investment was broad based. The energy sector has played a
key role in attracting private sector investment
Pakistan succeeded in attracting $3.6 billion worth of foreign investment in
the first ten months of the current fiscal year as against $5.9 billion
Almost 57 percent of FDI has come from three countries

U.A.E (15.4 %) UK (8.7%)

Norway (4.4%) Switzerland (4.1%)

Hong Kong (3.5%) Japan (2.9%)

 Foreign Investment
Communications Sector 30.4%

Financial Businesses 22.6%

Energy Including Oil And Gas And Power 16.6%

Trade 4.9%

The Three Groups, Namely Communication, accounted for over 2/3 of FDI
Banking, And Oil And Gas Exploration inflows in the country
INDUSTRY ANALYSIS
 INDUSTRY ANALYSIS
IMPORTANCE OF INDUSTRY IN PAKISTAN
Cement is one of major industries of Pakistan . Pakistan is rich in
cement raw material . The last few year have been a golden
period for cement manufacturers , when the government
increased spending on infrastructure development . During the
financial year 08 cement sales registered a growth of 31% to
17.53 million tons as against 13.5 million tones soled last year .
Exports stood at 3.7 million tons as against 1.8 million tons in
the last year , showing an increase of 110% .
Pakistan cement industry has a huge potential for export of
cement to neighbor countries like India , UAE , Afghanistan ,
Iraq and Russia
Industry achieved an overall growth of 32% with domestic demand
of cement increased by 24.95% where as exports increased by
111.86%
The overall growth achieved by cement factories for the year was
111.29% consisting of domestic and export markets at 71.02%
and 335.12% respectively
 CONTRIBUTION IN ECONOMIC GROWTH
During the last three years the large scale manufacturing sector is showing signs of moderating along with a subsequent
slowing down of the economy and has registered a growth of 4.8% during the current fiscal year.
The main contribution to this growth of 4.8% in July-march 2007-08 over last year are pharmaceuticals (30.7%) , wood
products (21.9%) , engineering products (19.5%) food and beverages (11.1%) petroleum (6.03%) and chemicals
(3.1%) cotton yarn (3%) cotton cloth (4.8%) sugar (33.9%) and cement (17.9%)

Item Units July-march July-march % change

2006-07 2007-08

Cotton yarn 000 tons 2132.6 2203.5 3.32

Cotton cloth Mln.sq.mtr 727.9 763.4 4.88

Sugar 000 tons 3247.6 4351.2 33.9

Cement 000 tons 16448 194014 17.95

 YEAR WISE INDUSTRY
25 24.22

20
18.22

16.36
15
13.66 CEMENT SALES
(MILLION TONS)
10 11.41
9.91

0
2003 2004 2005 2006 2007 2008
 PROPORTION OF INDUSTRY

ASKARI
D G KHAN
LUCKY
MAPLELEAF
PIONEER
OTHER

ASKARI D G KHAN LUCKY MAPLE PIONEER OTHERS

LEAF

7.6% 9.8% 12.7% 7.1% 5.5% 57.3%

 GOVERNMENT ATTITUDE
TOWARDS SECTOR
TAX STRUCTURE
Instead of providing relief in budget ,
sector was penalized with a 3% increase in sales tax to 18% .
Manufacturers have been able to pass on the increase to customers
but the situation is unlikely to continue
Since massive investment has been made in sector , any reduction
in price of cement can reduce profit margin of all the units

EXCISE DUTY
In budget 2008-09 the federal excise duty on
cement has been to RS=900 per tons from the existing base of
RS=750 per tons
 RATIOS OF DIFFERENT
INDUSTRIES
LUCKY FAUJI PIONEER D G KHAN
GROSS 29.35% 31.52% 10.2% 31.65%
PROFIT TO
SALES
OPERATING 24.49% 28.74% 8.3% 29.68%
PROFIT TO
SALES
PROFIT 21.495 22.76% 5.9% 27.34%
BEFORE TX
TO SALES
NET PROFIT 20.34% 18.66% 3.0% 25.27%
AFTER TAX
 PROFIT RATIO
30

25 25.27

20 20.34
18.66
15
PROFIT RATIO

10

0 3.0
LUCKY FAUJI PIONEER D G KHAN
 PROBLEMS TO THE INDUSTRY
Main component of cost is fuel . Pakistan cement industry has converted their
plants to coal to considering it to the cheapest fuel but its price in international
markets has gone up by more than 300% in the last one year which directly
relate increasing the cost of production
The burden of increased input costs has to be borne by the consumers . It is only
the government , which can provide relief to the consumers by cutting down or
abolishing the central excise duty
Unanticipated increase in interest rates or less than expected demand growth
create severe crises for the sector couple of year
Instead of appreciating the marketing skills of cement entrepreneurs to explore
new markets for cement , industry is being pressurized constantly without
realizing that reduction in cement exports will result in losses to industry
The freight charges are a massive 20% of the retail price . The plants located very
close to each other and tapping the same market will have to expand their
markets which will increase their freight expenses . It also increase competition
between these firms
Customer has no choice at all to switch between to brands of cement due to cartel
of cement manufacturers in Pakistan
 D G KHAN AS COMPARED TO
INDUSTRY
DGKC posted growth of 113% in export sales in the outgoing fiscal year also
improving its market share in the export market to 14% from 10% earlier
Coal prices , a major cost driver for cement industry have seen a sharp fall
due to global economic slowdown , result in increase in efficiency of DGKC
DGKC have been looking out for operational upgrades to reduce its energy
cost . In this regard two projects are initiated out of which cement grinding
mill has already started commercial production . It is said to be the worlds
largest vertical cement grinding mill with a capacity of 5000 tons per day it
is expected to reduce energy consumption from 45% to 32-35%
Another plus point is the increase in the portfolio value . DGKC has equity
investment in MCB Bank (9%) NISHAT Mills (13%) ADAMJEE insurance
(3%). All of these have seen a significant price increase since the start of
year up 53% , 84% , 5% respectively. Current market value of DGKC
equity portfolio comes to RS 38 per share . Hence equity portfolio alone
provides tremendous value to the investor
Firm Analysis
 COMPANY INFORMATION
DGKC , a unit of NISHAT group , is the largest cement manufacturing unit in
Pakistan with a production capacity of 5500 tons clinker per day. It is listed
on all stock exchange in Pakistan. DGKC was established under the
management control of state cement corporation of Pakistan (SCCP) in
1978 and start working in April 1986 with 2000 tons per day. Plant &
machinery was supplied by UBE industries of Japan.
NISHAT group acquire DGKC in 1992 under the privatization initiative of the
government. Group sets up a new cement production line of 6700 tons per
day clinker near KALARKAHAR, the single largest production line in the
country.
For continuous operations of the plant uninterrupted power supply is very
crucial company has its own power generation plant along with WAPDA
supply. The installed generation capacity is 23.84 MW.
DGKC production processes are environment friendly and comply with
WORLD’S BANK environmental standards. It has been certified for
environment management system “ISO 14001” by quality assurance
services Australia. The company also has certificate of ISO 9002 (Quality
Management System) in 1988 , so the only cement factory of Pakistan
having ISO 14001 & ISO 9002 both.
 VISION
To transform the company into modern and dynamic
cement manufacturing company with qualified
professionals and fully equipped to play a meaningful
role on sustainable basis in the economy of Pakistan.

MISSION STATEMENT
To provide quality products to customers and explore
new markets to promote sales of the company through
good governance and foster a sound and dynamic
team, so as to achieve optimum prices of products of
the company for sustainable and equitable growth and
prosperity of the company
 BOARD OF DIRECTORS
MRS NAZ MANSHA CHIARPERSON / DIRECTOR

MIAN RAZA MANSHA CHIEF EXECUTIVE / DIRECTOR

MR MANZRA MUSHTAQ DIRECTOR

KHALID QADEER QURESHI DIRECTOR

MOHAMMAD AZAM DIRECTOR

ZAKA UD DIN DIRECTOR

INAYAT ULLAH NIAZI CHIEF FINANCIAL OFFICER / DIRECTOR

 FIRM ANALYSIS
Overview of income statement
Income statement 2009 2008 2007 2006
Sales 18038209 12445996 6419625 7955665
Cost of sales -12358479 -10530723 -4387640 -3992822
Gross profit 5679730 1915273 2031985 3962843
Administrative expenses -141852 -111658 -104169 -121953
Selling expenses -1871517 -561465 -65122 -34352
Other operating expenses -795854 -581913 -139721 -191850
Other operating income 770137 847344 479420 294114
Profit from operations 3383258 1507581 2202393 3908802
Finance cost -2606358 -1749837 -467759 -450696
Share of loss of associates - -8674 -14163 -9573
Profit/loss before tax 776900 -250930 1720471 3448553
Taxation -251319 -197900 -98000 -1030078
Profit/loss for the year 525581 -53230 1622471 2418455
 FIRM ANALYSIS
Overview of balance sheet
Balance sheet 2009 2008 2007 2006

Capital and reserve 20918442 30528440 33923185 19268200

Non current liabilities 5969800 10250352 10430917 9020740

Current liabilities 15834799 12899306 7390229 6015436

Assets
Non current assets 29435449 33835927 32529377 24394481

Current assets 13287592 19842171 19214954 9909895

 FIRM ANALYSIS
Liquidity position 2009 2008 2007 2006
Current ratio 0.83 1.54 2.60 1.65
Acid test ratio 0.78 1.22 2.33 1.44
Cash ratio 0.50 1.18 2.31 1.43

Liquidity position
Liquidity position of company deteriorated
during the financial year 2009 due to decrease in current assets
and increase in current liabilities. Current liabilities of company
increase due to increase in trade payable, accrued markup and
short term borrowing. Current assets decline due to decline in
investments, cash and bank balance. Thus increase in current
liabilities and decrease in current assets result in a less
favorable liquidity position as compared to 2008.
 FIRM ANALYSIS
Activity ratios 2009 2008 2007 2006

Account receivable 35.09 times 41.02 times 58.78 times 105.79times

turnover

Account receivable 10.40 days 8.89 days 6.20 days 3.45 days
turnover in days

inventory turnover 13.73 times 13.19 times 16.83 times 24.40 times

inventory turnover in 26.58 days 27.66 days 21.69 days 14.96 days
days

Operating cycle 36.98 days 36.55 days 27.89 days 18.41 days
 FIRM ANALYSIS
40

35

30

25
AR turnover in days
20 IN turnover in days
Operating cycle
15

10

0
2006 2007 2008 2009
 FIRM ANALYSIS
Account receivable turnover of company is decreasing which
results in increase in account receivable in days which
indicates that company is going to be less efficient in collecting
its receivable , one factor can be due to increase in sales
Whereas company has shown efficiency in inventory
management because inventory turnover is increased and
thus inventory turnover in days has decreased
Overall operating cycle of company had increased because of
increase in account receivable turnover in days
 FIRM ANALYSIS
Debt 2009 2008 2007 2006
ratios(%)
Debt to 89% 76% 53% 78%
equity
Debt ratio 47% 43% 34% 44%
During financial year 08 the debt ratios of company rose because
the total debt increased in 08 mainly due to 63% increase in
the current liabilities which forms 55% of total debt. During
year 2009 the debt ratio again increase because of increase in
current liabilities and a major decrease in capital and reserve
from $30528440 to $20918442.
 FIRM ANALYSIS
Profitability 2009 2008 2007 2006
ratios(%)

G P Margin 31.5% 15.3% 32% 49%

Operating 18.75% 12% 34% 49%

profit margin

N P Margin 2.9% (0.43)% 25% 31%

 FIRM ANALYSIS
After experiencing in declining profitability during 2008, the
cement sector came back strongly to post a growth of 167%
in earning during first quarter (July-September) OF YEAR
2009, cement sector posted profit after tax of $1.3 billion in
first quarter as compared to $500 million in the last year
quarter. This growth was mainly due to depreciation of rupee
which result in increase of rupee based export sales.
However operating expenses and finance expenses of DGKC
caused the profitability to remain low in 2009. the oil cost,
electricity cost and raw material cost and material packing
cost increased in 2009. The selling expenses increase more
than 300% in 2009 administrative expenses also increased
by 31%. All these factors caused in decrease in profitability in
2009.
 FIRM ANALYSIS
Asset utilization 2009 2008 2007 2006

Sales to fixed assets74 54 43 108

Return on assets 2 1.85 3.8 23

Sales to total asset 42.25 23.22 124.79 23.19

 FIRM ANALYSIS
In 2008 asset management of DGKC improved as the inventory
turnover rate increased because the company earned sales
revenue more in proportion to increased inventory
In 2009 total asset turnover of company improved because the
management of company was effective in generating higher
sales revenue. The company performance in the area has
improved as full scale production from the newly inaugurated
KHIARPUR plant has augmented to sales
Common Size Analysis
 Balance Sheet
EQUITY AND LIABILITIES
Capital and Reserves 2009% 2008% 2007%
Authorized capital 23.4 19.2 19.3
Issued, subscribed and 7.1 4.8 4.8
paid up capital
Reserves 40.7 53.07 57.2

Accumulated profit / (loss) 1.11 (0.09) 3.4

Total 48.9 57.7 65.4

 Balance Sheet
NON-CURRENT 2009% 2008% 2007%
LIABILITIES
Long term finances 10.2 16.1 16.7

Liabilities against assets _ _ .002

subject to finance lease
Long term deposits 0.17 0.14 0.07

Retirement and other 0.18 0.10 0.07

benefits
Deferred taxation 3.3 2.5 3.1
 Balance Sheet
CURRENT 2009% 2008% 2007%
LIABILITIES
Trade and other 3.35 2.63 1.98
payables
Accrued markup 1.24 0.70 0.66
Short term borrowing - 21.2 14.61 7.62
secured
Current portion of non - 11.1 5.16 3.94
current liabilities
Provision for taxation 0.08 0.06 0.06
Total 37.25 23.38 14.58
 Balance Sheet
Assets
NON-CURRENT 2009% 2008% 2007%
ASSETS
Property, plant and 56.9 44.19 42.74
equipment
Assets subject to finance _ 0.009 0.25
lease
Capital work in progress 4.09 4.78 3.68

Investments 7.42 13.07 15.29

Long term loans, 0.39 1.00 0.38
advances and deposits
 Balance Sheet
CURRENT ASSETS 2009% 2008% 2007%

Stores, spares and 6.87 4.42 2.89

loose tools
Stock-in-trade 2.10 0.85 0.57
Trade debts 1.20 0.70 0.57
Investments 18.22 29.00 32.72
Advances, deposits, 2.12 1.50 0.57
and other receivables
Cash and bank 0.57 0.43 0.22
balances
 PROFIT AND LOSS ACCOUNT
2009% 2008% 2007%
Sales 100 100 100
Less:CGS 68.50 84.6 68.34
Gross Profit 31.5 15.4 31.65
Less:
Administrative expenses (0.78) (0.89) (1.62)
Selling and distribution expenses (10.37) (4.52) (1.01)
Other operating expenses (4.42) (4.67) (2.17)
Impairment on investment (1.42) - -
Add: Other operating Income 4.27 6.80 7.47

Profit from Operations 18.78 12.1 34.32

 PROFIT AND LOSS ACCOUNT
2009% 2008% 2007%
Profit from operations
Finance cost (14.5) (14.05) (7.28)
Share of loss of associated - (0.069) (0.22)
company

Profit before Tax 4.34 (2.019) 26.82

Less: Tax (1.39) 1.58 (1.52)

Net Profit 2.92 (0.439) 25.2

Index Analysis
 Balance Sheet
EQUITY AND LIABILITIES

Capital and Reserves 2009% 2008% 2007%

Authorized capital 100 100 100
Issued, subscribed and 119.9 100 100
paid up capital
Reserves 58.72 93.13 100
Accumulated profit / (loss) 27.00 (2.89) 100

Total 61.66 88.67 100

 Balance Sheet

NON-CURRENT 2009% 2008% 2007%

LIABILITIES
Long term finances 50.37 96.82 100

Liabilities against assets 100

subject to finance lease
Long term deposits 92.82 92.98 100

Retirement and other 197.23 135.51 100

benefits
Deferred taxation 88.76 81.21 100
 Balance Sheet
CURRENT 2009% 2008% 2007%
LIABILITIES
Trade and other 139.73 133.39 100
payables
Accrued markup 155.21 106.43 100
Short term borrowing – 299.99 192.67 100
secured
Current portion of non - 233.26 131.59 100
current liabilities
Provision for taxation 100 100 100
 Balance Sheet
Assets
NON-CURRENT 2009% 2008% 2007%
ASSETS
Property, plant and 110.07 103.88 100
equipment
Assets subject to finance _ 3.85 100
lease
Capital work in progress 91.77 130.47 100

Investments 38.80 83.13 100

Long term loans, 84.77 265.62 100
advances and deposits
 Balance Sheet

CURRENT ASSETS 2009% 2008% 2007%

Stores, spares and 196.21 153.66 100

loose tools
Stock-in-trade 304.88 154.45 100
Trade debts 356.31 253.85 100
Investments 45.97 89.06 100
Advances, deposits, 303.39 341.17 100
and other receivables
Cash and bank 209.89 194.85 100
balances
 PROFIT AND LOSS ACCOUNT
2009% 2008% 2007%
Sales 280.98 193.87 100

Gross Profit 279.5 94.25 100

Less:
136.17 107.18 100
Administrative expenses
2873.86 862.17 100
Selling and distribution expenses
569.60 416.48 100
Other operating expenses

Add: Other operating Income 160.63 176.74 100

Profit from Operations 153.61 68.45 100

 PROFIT AND LOSS ACCOUNT
2009% 2008% 2007%
Profit from operations
Finance cost 557.20 374.08 100
Share of loss of associated
company 61.24 100

Profit before Tax 45.15 (14.58) 100

Less: Tax 256.44 100

Net Profit 32.39 100

 FIRM ANALYSIS
STRENGTH:
Availability of raw material
Imported machinery & plant
Increasing volume of export
Availability of foreign investment & loan
Maximum capacity utilization
Growing demand of housing projects
Increasing government expenses on development
Laboratory testing facilities meeting international standards
Dependence on coal despite of furnace oil
Cheaper labor
High quality of cement
 COMMENTS
As a finance manager we consider all possible aspects of the economy,
industry and of firm. There is a positive potential in the market and
industry regarding investment point of view.
The financial health of the company as compared with its competitor and
industry is good and the firm is leading in sales, profit and investment
sectors. So as investor and manager point of view we invest or
finance the firm because of these factors:
1. Increasing sales trend
2. Adequate liquidity
3. Comfortable business risk
4. Potential in market
5. High profit and performance
6. Good capital structure