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1. Course and Section No.: FIN 440.4 2.

Semester: Spring 2011

3. Date of Submission: 27.02.11 4. ID #: 081 397 030

5. Assignment # 2

Meghna Cement Mills Limited

Balance Sheet

Year 2007 2006 2005


Assets:
Current Asset:
Cash and bank balances 83467224 87355615 66369668
Trade debtors 240164354 255117098 272848466
Stock in trade 884801364 490771594 665230027
Stores and Spares 65207744 63302067 62366451
Advance, deposits and
prepayments 290731537 104737236 113213301
1564372223 1001283610 1180027914
Non Current Assets
Fixed Assets at cost less Acc.
Dep 1252083379 1318304013 1331953500
Deferred Revenue Expenditure 55,733,250 60433379 65133508
1307816629 1378737392 1397087008
TOTAL ASSETS 2872188852 2380021002 2577114922

Equity and Liabilities


Current Liabilities
Cash Credit Account 616684231 604881809 605241790
Loan Against Trust Receipt 490432655 276415369 417786932
Payable for sundry expenses 32272466 17268943 19425058
payable for goods supplied 91098968 92905664 78596503
payable for other finance 90754714 55671032 52543777
Advance received against sales 98564591 17710576 14492476
1419807625 1064853393 1188086536
Non Current Liabilities
Long Term Loan 619319928 582261549 707935037
Gratuity Payable 18553846 11945890 10233176
Deferred Tax Liability 195278495 192661235 0
833152269 787868674 718168213
1. Course and Section No.: FIN 440.4 2. Semester: Spring 2011

3. Date of Submission: 27.02.11 4. ID #: 081 397 030

5. Assignment # 2

Shareholder's funds
Share Capital 225004000 225004000 225004000
Reserve And Surplus 0 0 445856173
General & Loan Redemption
Reserve 166000000 166000000 0
Tax Holiday Reserve 170825416 185418494 0
Retained Earnings 57399542 -49123559 0
619228958 527298935 670860173
Total Equity & Liability 2872188852 2380021002 2577114922

Balance Sheet

Base year analysis

Year 2007 2006 2005


Assets:
Current Asset:
Cash and bank balances 126% 132% 100%
Trade debtors 88% 94% 100%
Stock in trade 133% 74% 100%
Stores and Spares 105% 102% 100%
Advance, deposits and prepayments 257% 93% 100%
133% 85% 100%
Non Current Assests
Fixed Assets at cost less Acc. Dep 94% 99% 100%
Deferred Revenue Expenditure 86% 93% 100%
94% 99% 100%
TOTAL ASSETS 111% 92% 100%

Equity and Liabilities


Current Liabilities
Cash Credit Account 102% 100% 100%
Loan Against Trust Receipt 117% 66% 100%
Payable for sundry expenses 166% 89% 100%
1. Course and Section No.: FIN 440.4 2. Semester: Spring 2011

3. Date of Submission: 27.02.11 4. ID #: 081 397 030

5. Assignment # 2

payable for goods supplied 116% 118% 100%


payable for other finance 173% 106% 100%
Advance received against sales 680% 122% 100%
120% 90% 100%
Non Current Liabilities
Long Term Loan 87% 82% 100%
Gratuity Payable 181% 117% 100%
Deferred Tax Liability NA NA 0%
116% 110% 100%
Shareholder's funds
Share Capital 100% 100% 100%
Reserve And Surplus 0% 0% 100%
General & Loan Redemption Reserve NA NA 0%
Tax Holiday Reserve NA NA 0%
Retained Earnings NA NA 0%
92% 79% 100%
Total Equity & Liability 111% 92% 100%

Balance Sheet

Common Size Analysis

year 2007 2006 2005


Assets:
Current Asset:
Cash and bank balances 3% 4% 3%
Trade debtors 8% 11% 11%
Stock in trade 31% 21% 26%
Stores and Spares 2% 3% 2%
Advance, deposits and prepayments 10% 4% 4%
54% 42% 46%
Non Current Assests
Fixed Assets at cost less Acc. Dep 44% 55% 52%
Deferred Revenue Expenditure 2% 3% 3%
1. Course and Section No.: FIN 440.4 2. Semester: Spring 2011

3. Date of Submission: 27.02.11 4. ID #: 081 397 030

5. Assignment # 2

TOTAL ASSETS 100% 100% 100%

Equity and Liabilities


Current Liabilities
Cash Credit Account 21% 25% 23%
Loan Against Trust Receipt 17% 12% 16%
Payable for sundry expenses 1% 1% 1%
payable for goods supplied 3% 4% 3%
payable for other finance 3% 2% 2%
Advance received against sales 3% 1% 1%

Non Current Liabilities


Long Term Loan 22% 24% 27%
Gratuity Payable 1% 1% 0%
Deferred Tax Liability 7% 8% 0%

Shareholder's funds
Share Capital 8% 9% 9%
Reserve And Surplus 0% 0% 17%
General & Loan Redemption Reserve 6% 7% 0%
Tax Holiday Reserve 6% 8% 0%
Retained Earnings 2% -2% 0%

Total Equity & Liability 100% 100% 100%


1. Course and Section No.: FIN 440.4 2. Semester: Spring 2011

3. Date of Submission: 27.02.11 4. ID #: 081 397 030

5. Assignment # 2

Meghna Cement Mills Limited

Income Statement

Year 2007 2006 2005

Gross Sales 3756923254 3872559525 3397239468


Sales Net 2824358689 3367396868 2954896139
Less: Cost of Goods Sold 2480693391 3075067567 2705960316
GROSS PROFIT 343665298 292329301 248935823

Less: Other Expenses:


Administrative Overhead 47083157 34705020 30191450
Selling and Distribution Overhead 18203561 21014075 17411481
65286718 55719095 47602931
Trading Profit 278378580 236610206 201332892
Less: Financial Expenses 99849906 120127996 118067797
Operating Profit Before other
Income 178528674 116482210 83265095
Add: Non Operating Income 1033855 663917 451979
Total Profit 179562529 117146127 83717074
Deferred expense write-off 4700129 4700129 4700129
Profit/loss on sale of fixed asset 155606 0 0
Profit During the year before WPPF 175018006 112445998 79016945
Provision for WPPF 8334191 6082369 3910070
Net Profit Before Income Tax 166683815 106363629 75106875
Provision for income tax 18502792 1266922 0
Current Tax 16885532 1266922 0
Deferred Tax (Current year) 1617260 0 0
Net Profit After Income Tax 148181023 105096707 75106875
Tax Holiday Reserve 41657922 48658954 0
Profit after Tax Holiday Reserve 106523101 56437753 75106875
1. Course and Section No.: FIN 440.4 2. Semester: Spring 2011

3. Date of Submission: 27.02.11 4. ID #: 081 397 030

5. Assignment # 2

Income Statement
Common Size analysis

Year 2,007 2,006 2,005

Gross Sales 100.00% 100.00% 100.00%


Sales Net 86.97% 86.96% 88.47%
Less: Cost of Goods Sold 66.03% 79.41% 81.02%
GROSS PROFIT 9.15% 7.55% 7.45%

Less: Other Expenses:


Administrative Overhead 1.25% 0.90% 0.90%
Selling and Distribution Overhead 0.48% 0.54% 0.52%
1.74% 1.44% 1.43%
Trading Profit 7.41% 6.11% 6.03%
Less: Financial Expenses 2.66% 3.10% 3.53%
Operating Profit Before other Income 4.75% 3.01% 2.49%
Add: Non Operating Income 0.03% 0.02% 0.01%
Total Profit 4.78% 3.03% 2.51%
Deferred expense write-off 0.13% 0.12% 0.14%
Profit/loss on sale of fixed asset 0.00% 0.00% 0.00%
Profit During the year before WPPF 4.66% 2.90% 2.37%
Provision for WPPF 0.22% 0.16% 0.12%
Net Profit Before Income Tax 4.44% 2.75% 2.25%
Provision for income tax 0.49% 0.03% 0.00%
Current Tax 0.45% 0.03% 0.00%
Deferred Tax (Current year) 0.04% 0.00% 0.00%
Net Profit After Income Tax 3.94% 2.71% 2.25%
Tax Holiday Reserve 1.11% 1.26% 0.00%
Profit after Tax Holiday Reserve 2.84% 1.46% 2.25%
1. Course and Section No.: FIN 440.4 2. Semester: Spring 2011

3. Date of Submission: 27.02.11 4. ID #: 081 397 030

5. Assignment # 2

Income Statement

Base year Analysis

Year 2007 2006 2005

Gross Sales 111% 114% 100%


Sales Net 96% 114% 100%
Less: Cost of Goods Sold 92% 114% 100%
GROSS PROFIT 138% 117% 100%

Less: Other Expenses:


Administrative Overhead 156% 115% 100%
Selling and Distribution Overhead 105% 121% 100%
137% 117% 100%
Trading Profit 138% 118% 100%
Less: Financial Expenses 85% 102% 100%
Operating Profit Before other Income 214% 140% 100%
Add: Non Operating Income 229% 147% 100%
Total Profit 214% 140% 100%
Deferred expense write-off 100% 100% 100%
Profit/loss on sale of fixed asset NA NA 0%
Profit During the year before WPPF 221% 142% 100%
Provision for WPPF 213% 156% 100%
Net Profit Before Income Tax 222% 142% 100%
Provision for income tax NA NA 0%
Current Tax NA NA 0%
Deferred Tax (Current year) NA NA 0%
Net Profit After Income Tax 197% 140% 100%
Tax Holiday Reserve NA NA 0%
Profit after Tax Holiday Reserve 142% 75% 100%
1. Course and Section No.: FIN 440.4 2. Semester: Spring 2011

3. Date of Submission: 27.02.11 4. ID #: 081 397 030

5. Assignment # 2

Meghna Cement Mills Limited

Cash Flow Statement

2007 2006 2005


A. Cash Flow from Operating Activities
Collection from turnover and other income 3344527646 3894172910 3350553110
Payment against purchase of raw materials &
others -3243762274 -3085716318 -2951205710
Payment against expenses and creditors -235124429 -285659553 -317049810
payment against interest -102125792 -121781730 -137571893
Total cash flow from operating activities -236484849 401015309 -55274303

B. Cash Flow From Investing Activities


Acquisiton of fixed assets -9324647 -60625761 -50373258
Disposal of fixed assets 186272
Total cash flow from investing activities -9138375 -60625761 -50373258

C. Cash Flow From Financing Activities


Long term loan 37058379 -125673488 -94361599
LTR account 214017286 -141371563 204809343
Cash credit 11802422 -359981 -4791111
Divident paid -21143254 -51998569 -21252320
Total cash flow from Financing Activities 241734833 -319403601 84404313

Increase/ Decrease in cash flow -3888391 20985947 -21243248


Opening Cash and Bank Balance 87355615 66369668 87612916
Ending Cash and Bank Balance 83467224 87355615 66369668
1. Course and Section No.: FIN 440.4 2. Semester: Spring 2011

3. Date of Submission: 27.02.11 4. ID #: 081 397 030

5. Assignment # 2

Ratio Analysis

Liquidity Ratios

2007 2006 2005 average STDEV growth


Current Ratio 1.1018 0.9403 0.99321 1.01177 0.082334183 6%
Quick ratio 0.4786 0.4794 0.4332 0.463733 0.026445668 5%
NWC to TA ratio 0.0503 -0.0267 -0.0031 0.006833 0.039449377 236%
Cash ratio 0.05878 0.08203 0.0558 0.065537 0.01436115 9%
Interval measure 1809.334 2227.337 2600.988 2212.553 396.0339142 -17%
Payables deferred ratio 31.5 19.68 20.3 23.82667 6.652528341 29%
Cash Conversion Cycle 101.7016 77.5404 92.2921 90.51137 12.17863518 8%

Asset Management Ratios

2007 2006 2005 average STDEV growth


Inventory turnover 3.6067 5.3201 4.4236 4.450133 0.857008112 -6%
Inventory turnover period 101.1983 68.6067 82.5108 84.10527 16.35419948 15%
Receivables turnover 11.405 12.7561 12.1337 12.09827 0.676246585 -3%
Receivables turnover
period 32.0033 28.6137 30.0813 30.23277 1.699868716 3%
Fixed asset turnover 2.1976 2.5411 2.1972 2.311967 0.198435388 1%
Total asset turnover 1.0923 1.3392 1.1924 1.207967 0.124183909 -3%
1. Course and Section No.: FIN 440.4 2. Semester: Spring 2011

3. Date of Submission: 27.02.11 4. ID #: 081 397 030

5. Assignment # 2

Debt Management Ratios

2007 2006 2005 average STDEV growth


Debt ratio 0.784405 0.778477 0.739685 0.767522 0.024289363 3%
Long term debt raito 0.2900757 0.331034 0.278671 0.299927 0.027536473 3%
LTD to debt ratio 0.3698034 0.425249 0.376743 0.390599 0.030208308 0%
Debt to equity ratio 3.638331 3.513609 2.841508 3.331149 0.428602543 14%
TIE ratio 2.7879704 1.969651 1.705231 2.154284 0.564489258 29%
Cash coverage ratio 3.4365929 2.533762 2.283275 2.75121 0.606628357 23%

Profitability Ratios

2007 2006 2005 average STDEV growth

operating profit margin 0.0740975 0.061099 0.059264 0.06482 0.008086689 12%

Net profit Margin 0.0394421 0.027139 0.022108 0.029563 0.008917612 34%

BEP 0.0969221 0.099415 0.078123 0.091487 0.011640082 12%

ROA 0.0515917 0.044158 0.029144 0.041631 0.011435269 34%

ROE 0.2392992 0.199311 0.111956 0.183522 0.0651233 49%

Growth Rate 21% 10% 8% 12.871 6.669859 65%


1. Course and Section No.: FIN 440.4 2. Semester: Spring 2011

3. Date of Submission: 27.02.11 4. ID #: 081 397 030

5. Assignment # 2

Market value ratios

2007 2006 2005 average STDEV growth

EPS 65.86 46.71 33.38 48.65 16.32667449 40%

PE ratio 5.4547525 6.588525 10.08838 7.377218 2.415397431 -26%

Book value per share 275.20798 234.3509 298.1548 269.2379 32.3181777 -2%
Market to book value
ratio 1.3053764 1.313202 1.129447 1.249342 0.103905556 8%

Payout ratio 0.142679 0.49467 0.74895 0.4621 0.304444989 -53%

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