This report was prepared for Mr. The purpose of this report is to analyze the current financial condition of the cement manufacturing company Confidence cement Ltd and also get a closer ok at the cement industry of Ratio analysis of aramit cement.
This report analyzes the financial statements of of Confidence Cement Ltd. These companies are, Meghna Cement Ltd. Different companies have different methods to present their data. This poses to be a problem when we compare their financial conditions.
Moreover, to calculate the industry average, the ratios of only 5 companies have been used. As there are more companies in the cement industry, it does not give us a full view of the overall industry.
Various sources have been used to prepare this report. These sources are mainly secondary ones. The list of the sources is mentioned in the bibliography. At first, the report analyzes the comparative balance sheets and profit and loss account from Moving on, it calculates different ratios and finally compares them with the industry average.
Based on the information from the analysis, it suggests whether it would be profitable to invest in this industry or not. Industry Overview Cement sector is the largest increase sector in Bangladesh. The clinker, a raw material used in the production of cement, is imported from other countries like India, Thailand, Malaysia and China.
The country lacks limestone—a major raw material required to make cement. The only production stage performed in Bangladesh, to make cement, is importing the clinker and grinding it with gypsum to give pure cement. The first cement factory in the country was Chattak Cement Factory, which was established in the early when Bangladesh was a part of India.
This was the only integrated cement plant in the whole country because of the lack of raw materials. The first cement factory by the private sector was the Aynepur Cement Factory, which was established inhad a capacity of 30, TPA.
This was also an integrated cement plant, but it did not play any significant role in the cement industry because of irregular production and Other than these two factories, there are no other plants in the country.
All other cement production facilities that are in operation today are clinker grinding units, facilities where imported clinkers are ground to produce cement.
Bythere were as many as 56 cement grinding factories in the country with a total production capacity of Hyundai was the first multinational company to start up a local factory primarily to fulfill the demand of Jamuna Bridge. After the yearBangladesh government changed its rules as it withdrew the price control, and had a favorable tax control for the imported clinker.
As a result, the cement industry in the country began to develop after InBangladesh became self sufficient in cement production. Many multinational companies and entrepreneurs also started setting up their plants in the country because of the favorable duty structure imposed by the government for local production.
This included world leaders like Lafarge, Holcim, Heidelberg Scancem or Cemex — each now having their own plants. Now Bangladesh is producing surplus cement to its requirements and there are more companies than what the country needed. The Daily Star Bangladesh is having a Free Trade Agreement talk with Sri Lanka which means that Bangladesh may have good chance of exporting its surplus cement to Sri Lanka, and once it does that, the doors of other countries who lack cement industry, may also open up for Bangladeshi cement.
The cement industry in Bangladesh is riddled with lots of problems, which are hindering its growth. Most of the companies hardly utilize 50 percent of their production capacities as the supply vastly exceeds the demand.Analysis of Financial Statements of Cement Industry listed at Dhaka Stock Exchange.
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Uploaded by. The highest ratio of % was for Lafarge Surma Cement Ltd. which is more than double the industry average. However, Aramit Cement Ltd. got the 2nd highest Gross Profit Margin of % followed by % for Heidelberg Cement Ltd., % for Premier Cement Ltd. . View Essay - Ratio-Analysis (1) from FIN at Independent University, Bangladesh.
Ratio Analysis of Aramit Cement Ltd. & Confidence Cement Ltd Liquidity Ratio 1.
Current Ratio: Current Ratio. Ratio Analysis: Liquidity ratio Current Ratio Quick Ratio Net WCT Ratio Time To Ruin (days) Aramit () Industry Comarison with industry poor Not good Very Poor Poor Very Poor Cash Liquidity Ratio Cash Conversion Cycle Average (days) The Aramit cement did not have enough current asset to meet their Current liabilities.
Confidence Cement Ltd. was incorporated as a public limited company on May 2, with an authorized capital of Tk. ,, equally divided into 2,, ordinary shares with par value of .
Aramit Cement Limited (ARAMITCEM) Stock Price Chart, Technical Analysis Stock Price Chart. Intraday Stock Chart & Fundamental Information of Dhaka Stock Exchange (DSE) Bangladesh.