• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Act201 term ppr  fuel & power (sec 04)
 

Act201 term ppr fuel & power (sec 04)

on

  • 522 views

 

Statistics

Views

Total Views
522
Views on SlideShare
522
Embed Views
0

Actions

Likes
1
Downloads
0
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Microsoft Word

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Act201 term ppr  fuel & power (sec 04) Act201 term ppr fuel & power (sec 04) Document Transcript

    • Fuel & Power
    • Fuel & PowerApril 12, 2013Page 2Submitted ToSharmin Shabnam RahmanSenior LecturerACT 201Date of Submission: 12th April 2013Submitted BySection 04Sl.No.Name I.D. E-mail ID1. Samiya Yesmin 11304043 samiya.yesmin@gmail.com2. Faiza Munira 11321037 faiza.m25@gmail.com3. Sawda Nusrat Haque 11305007 sawda009@gmail.com4. Abrar Aqib 10204035 abrar.aqib@gmail.com5. Nahian Noshin Mustafa 12204093 nahian505@gmail.com
    • Fuel & PowerApril 12, 2013Page 3LETTER OF TRANSMITTALDate: April 12, 2013Sharmin Shabnam RahmanSenior lecturerBRAC Business SchoolSubject: Submission of Term PaperDear Madam:We are pleased to submit our report on “Fuel & Power”, regarding three companies in thissector, for your evaluation.Working on this term paper has been very enlightening. We would like to thank you forgiving us this opportunity and to ask for your forgiveness regarding any mistake from ourpart.Yours sincerely,Samiya YesminFaiza MuniraSawda Nusrat HaqueAbrar AqibNahian Noshin
    • Fuel & PowerApril 12, 2013Page 4ACKNOWLEDGEMENTWe acknowledge our heartiest appreciation to Sharmin Shabnam Rahman ma’ambecause without her help it would be very difficult for us to collect the information about thereport and prepare it.We would also like to thank all the group members of our group for their sincereeffort in completing this report. Without the teamwork and assisting attitude of the groupmembers it would not have been possible in finishing this report.We would be thankful if this report comes to any benefit of our teacher as well as anystudents of our department.EXECUTIVE SUMMARYThis is a term paper regarding financial analysis of company data provided at theDhaka Stock Market. It is to learn how financial accounting comes to play practicallyregarding this aspect of the business. We have taken three companies from the fuel & powersector of Bangladesh to do this study. The companies are Power Grid Company ofBangladesh, Summit Purbanchol Power Company Limited and Jamuna Oil CompanyLimited. And we have done their Horizontal and Vertical analysis for the year of 2010 and2011, along with their ration analysis for 2011.
    • Fuel & PowerApril 12, 2013Page 5CONTENTSLetter of Transmittal ..................................................................................................................3Acknowledgement .....................................................................................................................4Executive Summary...................................................................................................................4List of Abbreviations .................................................................................................................51. Introduction......................................................................................................................62. Report Questions..............................................................................................................83. Analysis..........................................................................................................................103.1. Power Grid Company of Bangladesh Ltd. ........................................................103.2. Summit Purbanchol Power Company Ltd.........................................................153.3. Jamuna Oil Company Limited ..........................................................................134. Ratio Analysis:...............................................................................................................184.1. Ratio Analysis of Power Grid Company Of Bangladesh Ltd.: .........................194.2. Ratio Analysis of Summit Purbanchol Power Company Ltd...........................214.3. Ratio Analysis of Jamuna Oil Company Limited: ............................................225. Conclusion & Recommendation....................................................................................23Appendix …………………………………………………………………………………….24TABLE OF CHARTS-Fig 1- Sectoral Trunover, February 2013………………………………24LIST OF ABBREVIATIONS1. PGCB/ POWERGRID- Power Grid Company of Bangladesh2. SPPCL- Summit Purbanchol Power Company Limited3. JOCL/ JAMUNAOIL- Jamuna Oil Company Limited4. DSE- Dhaka Stock Exchange
    • Fuel & PowerApril 12, 2013Page 61. INTRODUCTION1.1. Report BackgroundPGCB, SPPCL and JOCL are among the leading companies of the fuel & powersector in Bangladesh. Financial analysis of such innovating and leading companies ofBangladesh has been very educational.1.2. Objectives- To learn how to interpret company annual report data- To learn how to do Horizontal and Vertical Analysis- To learn how to do ration analysis1.3. MethodologyWe have used secondary sources to collect data for this study. And we collectedsecondary information from the stock market reports available at Dhaka Stock Exchange.1.4. ScopeThe key focus of the report is the financial analysis of the annual reports of thecompany PGCB, SPPCL and JOCL. It covers the following aspects: Analysis of Balance Sheet and Income Statement. Vertical and Horizontal analysis of these two sheets for two consecutive years. Ratio Analysis of the three companies Comparison of the three companies’ analysis1.5. LIMITATIONTime constrainLimited knowledge in this field obstructed us from presenting a depth in analysisThough the three companies are from the same industry, there were lack ofinformation needed for the ratio analysis of each of the companies and thuscaused hindrance
    • Fuel & PowerApril 12, 2013Page 7Since the report is on fuel and power which is in fact a service orientedorganization, thus while calculating the ratios, some items were different andcaused some difficulty1.6. Organization BackgroundJamuna Oil Company Limited (JOCL) is a petroleum marketing companyserving the nation for the last four decades. Originally the name of company was PakistanNational Oils Limited which was formed in the year 1964. After independence the companywas renamed to Bangladesh National Oils Limited by an Ordinance of 1972. In the year of1973 Bangladesh National Oils Limited was renamed to Jamuna Oil Company Limited andregistered as a Private Limited Company on 12th May, 1975 under the companies act. It hasbeen functioning as a subsidiary of Bangladesh Petroleum Corporation (BPC) since 1977.As per decision taken by Government & BPC, the company was converted into a PublicLimited Company on 25th June, 2007Summit Purbanchol Power Company Limited (SPPCL), is one of the leadingBangladeshi Independent Power Producer (IPP) in Bangladesh in private sector providingpower to national grid. SPPCL was incorporated in Bangladesh on August 15, 2007 as aPrivate Limited Company. Summit Purbanchol Power Company Limited in the year 2009 hassuccessfully established two power plants of 33 MW capacity each, for sale of electricity toRural Electrification Board (REB) and Bangladesh Power Development (BPDB) on Build,Own and Operate basis at Rupganj, Narayanganj and Jangalia, Comilla respectively. In 2011SPL has commissioned another power plant of 102 MW capacity at Narayanganj underSummit Narayanganj Power Limited.Power Grid Company of Bangladesd Ltd. (PGCB) was established on the 21stNovember, 1996 as a fully BPDB owned company with an authorized capital of TK 10billion under the Power Sector Reform Program of the Government. PGCB has been runningunder the Company Act 1994.
    • Fuel & PowerApril 12, 2013Page 82. REPORT QUESTIONS2.1. Name & Sector of the Accounting Entity:The names of the three companies are Summit Purbanchol Power Company Limited,Jamuna Oil Company Limited and Power Grid Company of Bangladesh Limited. They arethe Fuel & Power sector.2.2. Fiscal Year of the entity. What is the difference between fiscal year andcalendar year?The Fiscal Year of these companies has started from May and ended in June. TheFinancial or Fiscal Year can be any 12 month period. But calendar year starts from Januaryand ends in December.2.3.Names of the financial statements prepared by the entity:The names of the Financial Statement prepared are Profit and Loss Account (IncomeStatement) and Balance Sheet.2.4. Number of years reported on each financial statement. If multipleyears are reported on, what you think is the rationale thereof?In most of the reports the number of years reported were two, and some had four yearsreport together. Multiple years are usually reported so that the results of consecutive yearscan be compared with each other.2.5.What is the expense categories reported in the income statement?What are the items included in each category?The expense categories reported in income statement are administrative expense,transmission expense, finance expense and income tax expense.
    • Fuel & PowerApril 12, 2013Page 92.6.Format of the Income Statement:2.7.What is the name of audit firm?The audit firms were Rahman Rahman Haq and ACNABIN chartered accountantsCompany NameCondensed Profit and Loss AccountFor the Year ended ***, ***YearRevenues **Transmission Expense **Gross Profit ****Administrative Expense **Results from operating activities ****Finance Income **Other Income **Finance Expense **Profit before contribution to WPPF ****Contributin to WPPF **Profit before Income Tax ****Income Tax expense **Current Tax **Deferred Tax **Profit after tax carried forward ****
    • Fuel & PowerApril 12, 2013Page 102.8.Categories of assets and liabilities used by the entity. Items included ineach category.The categories of assets and liabilities used by these entities are property, plant andequipment, capital work-in-progress, term loan interest bearing, interest payable, grant fromSIDA, deferred liabilities3. ANALYSIS3.1. Power Grid Company of Bangladesh Ltd.3.1.1. HORIZONTAL ANALYSISPower GridCondensed Profit and Loss AccountFor the Year ended June 30, 20112010 2011 Amount %Revenues 5,929,637,919 6,255,121,287 325,483,368 5%Transmission Expense (3,274,436,664) (4,574,983,949) (1,300,547,285) 40%Gross Profit 2,655,201,255 1,680,137,338 (975,063,917) -37%Administrative Expense (142,367,454) (210,594,022) (68,226,568) 48%Results from operating activities 2,512,833,801 1,469,543,316 (1,043,290,485) -42%Finance Income 909,081,121 931,493,210 22,412,089 2%Other Income 148,365,830 55,399,525 (92,966,305) -63%Finance Expense (1,231,898,300) (1,606,262,249) (374,363,949) 30%Profit before contribution toWPPF2,338,382,452 850,173,802 (1,488,208,650) -64%Contribution to WPPF (111,351,545) (40,484,467) 70,867,078 -64%Profit before Income Tax 2,227,030,907 809,689,335 (1,417,341,572) -64%Income Tax expense (620,019,354) 114,921,210 734,940,564 -119%Current Tax - 36,185,504 36,185,504 -Deferred Tax - (151,097,714) (151,097,714) -Profit after tax carried forward 1,607,011,553 924,601,544 (682,410,009) -42%
    • Fuel & PowerApril 12, 2013Page 113.1.2. VERTICAL ANALYSISPower GridBalance SheetFor the Year ended June 30, 20112010 2011 Amount %AssetsProperty, Plant and EquipmentBDT33,383,269,863BDT 35,676,781,529BDT2,293,511,6667%Capital work-in-progress 16,392,344,102 23,549,981,251 7,157,637,149 44%Total non-current Assets 49,775,613,965 59,226,762,780 9,451,148,815 19%Inventories 685,483,498 1,339,656,762 654,173,264 95%Accounts and OtherReceivables1,352,523,069 1,379,078,119 26,555,050 2%Advances, deposits and pre-payments657,724,742 3,981,843,413 3,324,118,671 505%Cash and cash equivalents 10,612,691,429 8,576,389,284 (2,036,302,145) -19%Total Current Assets 13,308,422,738 15,276,967,578 1,968,544,840 15%Total Assets 63,084,036,703 74,503,730,358 11,419,693,655 18%EquityShare Capital 3,643,581,000 4,190,118,100 546,537,100 15%Deposit for Share 8,288,522,908 9,738,181,386 1,449,658,478 17%Retained Earnings 4,117,625,249 5,853,349,465 1,735,724,216 42%Total equity attributable toequity holders16,049,729,157 19,781,648,951 3,731,919,794 23%LiabilitiesTerm loan-interest bearing(2009)39,428,415,143 44,660,367,822 5,231,952,679 13%Interest Payable 1,697,315,307 (1,697,315,307) -100%Grant from SIDA 140,377,926 125,638,246 (14,739,680) -10%Deferred liability-gratuity 328,218,950 513,935,448 185,716,498 57%Deferred tax-liability(2009) 1,879,162,378 2,119,972,683 240,810,305 13%Total Non-Current Liabilities 43,473,489,704 47,419,914,199 3,946,424,495 9%Term loan-interest bearing 1,790,359,768 1,808,318,493 17,958,725 1%Interest Payable 1,154,536,079 4,272,927,362 3,118,391,283 270%Liabilities for expense 122,341,304 320,974,260 198,632,956 162%Liabilities for other finance 187,377,601 863,756,589 676,378,988 361%Provision for taxation 306,203,090 36,190,504 (270,012,586) -88%Total current liabilities 3,560,817,842 7,302,167,208 3,741,349,366 105%Total Liabilities 47,034,307,546 54,722,081,407 7,687,773,861 16%Total Liabilities and Equity 63,084,036,703 74,503,730,358 11,419,693,655 18%
    • Fuel & PowerApril 12, 2013Page 12Power GridBalance SheetFor the Year ended June 30, 20112010 2011Amount % Amount %AssetsProperty, Plant and Equipment 33,383,269,863 52.92% 35,676,781,529 47.89%Capital work-in-progress 16,392,344,102 25.98% 23,549,981,251 31.61%Total non-current Assets 49,775,613,965 78.90% 59,226,762,780 79.50%Inventories 685,483,498 1.09% 1,339,656,762 1.80%Accounts and Other Recievables 1,352,523,069 2.14% 1,379,078,119 1.85%Advances, deposits and pre-payments 657,724,742 1.04% 3,981,843,413 5.34%Cash and cash equivalents 10,612,691,429 16.82% 8,576,389,284 11.51%Total Current Assets 13,308,422,738 21.10% 15,276,967,578 20.50%Total Assets 63,084,036,703 100.00% 74,503,730,358 100.00%EquityShare Capital 3,643,581,000 5.78% 4,190,118,100 5.62%Deposit for Share 8,288,522,908 13.14% 9,738,181,386 13.07%Retained Earnings 4,117,625,249 6.53% 5,853,349,465 7.86%Total equity attributable to equityholders16,049,729,157 25.44% 19,781,648,951 26.55%LiabilitiesTerm loan-interest bearing (2009) 39,428,415,143 83.83% 44,660,367,822 59.94%Interest Payable 1,697,315,307 2.69%Grant from SIDA 140,377,926 0.22% 125,638,246 0.17%Deferred liability-gratuity 328,218,950 0.52% 513,935,448 0.69%Deferred tax-liability(2009) 1,879,162,378 2.98% 2,119,972,683 2.85%Total Non-Current Liabilities 43,473,489,704 68.91% 47,419,914,199 63.65%Term loan-interest bearing 1,790,359,768 2.84% 1,808,318,493 2.43%Interest Payable 1,154,536,079 1.83% 4,272,927,362 5.74%Liabilities for expense 122,341,304 0.19% 320,974,260 0.43%Liabilities for other finance 187,377,601 0.30% 863,756,589 1.16%Provision for taxation 306,203,090 0.49% 36,190,504 0.05%Total current liabilities 3,560,817,842 5.64% 7,302,167,208 9.80%Total Liabilities 47,034,307,546 74.56% 54,722,081,407 73.45%Total Liabilities and Equity 63,084,036,703 100.00% 74,503,730,358 100.00%
    • Fuel & PowerApril 12, 2013Page 13Power GridCondensed Profit and Loss AccountFor the Year ended June 30, 20112010 2011Amount % Amount %Revenues 5,929,637,919 100.00% 6,255,121,287 100%Transmission Expense (3,274,436,664) -55.22% (4,574,983,949) -73%Gross Profit 2,655,201,255 44.78% 1,680,137,338 27%Administrative Expense (142,367,454) -2.40% (210,594,022) -3%Results from operating activities 2,512,833,801 42.38% 1,469,543,316 23%Finance Income 909,081,121 15.33% 931,493,210 15%Other Income 148,365,830 2.50% 55,399,525 1%Finance Expense (1,231,898,300) -20.78% (1,606,262,249) -26%Profit before contribution to WPPF 2,338,382,452 39.44% 850,173,802 14%Contribution to WPPF (111,351,545) -1.88% (40,484,467) -1%Profit before Income Tax 2,227,030,907 37.56% 809,689,335 13%Income Tax expense (620,019,354) -10.46% 114,921,210 2%Current Tax - - 36,185,504 1%Deferred Tax - - (151,097,714) -2%Profit after tax carried forward 1,607,011,553 27.10% 924,601,544 15%3.2. Jamuna Oil Company Limited3.2.1. HORIZONTAL ANALYSIS(All amounts below are in BDT millions)Jamuna Oil CompanyIncome StatementFor the year ended June 30, 2011Accounts details 2010 2011 Amount PercentageTotal sales 5802.84 7796.66 1993.82 34.40%Cost of Sales 5736.83 -7700.26 -13437.1 -234.20%Gross Income 66.01 96.37 30.36 45.90%Total Expense 41.55 -53.38 -94.93 -228.50%Other operating Income 6.07 17.58 11.51 189.60%Operating Profit 30.53 60.56 30.03 98.30%other Income 48.54 81.34 32.8 67.60%Net Profit 79.07 141.9 62.83 79.50%Workers Participation -3.95 -7.1 -3.15 79.70%NetProfit before tax 75.12 134.8 59.68 79.40%Tax Provision -18.71 -33.35 14.64 -78.20%Net profit After tax 56.41 101.45 45.04 79.80%Dividend 22.5 32.4 9.9 44%Net Asset 187.92 265.97 78.05 41.53%
    • Fuel & PowerApril 12, 2013Page 14Jamuna Oil CompanyCondensed Balance SheetFor the year ended June 30, 2011Accounts Details 2010 2011 Amount PercentageShare Capital 45 54 9 20%Capital Reserve 15.28 15.28 0 0%General Reserve 118 181 63 53.30%Proposed Stock And Cash 22 32.4 10.4 47.30%Un-Appropriated Profit 9.64 15.69 6.05 62.70%Total Sources Of Fund 187.92 265.97 78.05 41.53%Tangible Fixed Assets 26.46 31.48 5.02 18.90%Provision For Gratuity -13 -18.67 -5.67 43.60%Deferred Tax Asset 2.54 3.93 1.39 54.70%Investment 17.54 17.54 0 0%Current Assets 1231.93 1442.83 210.9 17.11%Current Liabilities 1077.54 1211.54 -950 -88.20%Net Current Assets 154.39 231.29 76.9 49.80%Net Assets 187.92 265.97 78.05 41.80%3.2.2. VERTICAL ANALYSIS(All amounts below are in BDT millions)Jamuna Oil CompanyCondensed Balance SheetFor the year ended June 30, 2011Accounts details2010 2011Amount % Amount %Share Capital 45 3.57% 54 3.65%Capital Reserve 15.28 1.21% 15.28 1.03%General Reserve 118 9.36% 181 12.20%Proposed Stock And Cash Dividend 22.5 1.78% 32.4 2.19%Unappropriate Profit 9.64 0.76% 15.69 1.06%Total Sources Of Fund 187.92 14.90% 265.97 17.98%Tangible Fiixed Assets 26.46 2.09% 31.88 2.16%Provision For Gratuity -13 -1.03% -18.67 -1.26%Deferred Tax Asset 2.54 0.20% 3.93 0.26%Investment 17.54 1.39% 17.54 1.19%Current Assets 1231.93 97.70% 1442.83 97.50%Current Liabilities 1077.54 85.40% 1211.54 81.93%Net Current Assets 154.39 12.24% 231.29 15.64%Net Assets 187.92 14.90% 265.97 17.98%
    • Fuel & PowerApril 12, 2013Page 15Jamuna Oil CompanyIncome SheetFor the year ended June 30, 2011Accounts details2010 2011Amount % Amount %Total Sales 5802.84 100% 7796.66 100%Cost of Sales -5736.8 98.80% -7700.3 98.70%Gross Income 66.01 1.13% 96.37 1.23%Total Expenses 41.55 0.72% -53.38 -0.68%Other Operating Income 6.07 0.10% 17.58 0.22%Operating Profit 30.53 0.53% 60.56 0.77%Other Income 48.54 0.84% 81.34 1.04%Net Profit 79.07 1.36% 141.9 1.82%Workers Participation Fund -3.95 -0.06% -7.1 -0.09%Net Profit before tax 75.12 1.29% 134.8 1.72%Tax Provision -18.71 0% -33.35 -0.43%Net profit after tax 56.41 0.97% 101.45 1.30%Dividend 22.5 0.39% 32.4 0.41%Net Assets 187.92 3.23% 265.97 3.41%3.3.Summit Purbanchol Power Company Ltd.3.3.1. HORIZONTAL ANALYSISSummit PurbancholIncome StatementFor the Year ended 31-Dec-112010 2011 Amount %Revenue 1,141,751,963 1,145,014,718 3,262,755 0Cost of sales -485,125,850 -536,404,947 -51279097 10.57Gross profit 656,626,113 608,609,771 -48016342 -7.31Other income, net 1,876,380 1,414,272 -462108 -24.63Operating expensesGeneral and administrativeexpenses-46,568,132 -58,604,291 -1203615925.85Operating profit 611,934,361 551,419,752 -60514609 -9.89Finance income 4,325,062 15,523,423 11198361 258.92Finance costs -282,600,320 -171,673,261 110927059 -39.25Net finance costs -278,275,258 -156,149,838 122125420 -43.89Total comprehensive incomefor the year333,659,103 385,269,914 51610811 15.47
    • Fuel & PowerApril 12, 2013Page 16Summit PurbancholFinancial StatementFor the year ended 31-DEC-20112010 2011 Amount %Assets BDT BDT BDTNon-current assetsProperty, plant and equipment 3,063,320,106 2,950,721,090 -112,599,016 -4Intangible assets 195,833 145,833 -50,000 -26Total non-current assets 3,063,515,939 2,950,866,923 -112,649,016 -4Current assetsInventories 31,989,074 100,646,673 68,657,599 215Trade receivables 186,076,442181,504,880.00-4,571,562 -2Other receivables 362,500 -362,500 -100Inter company receivablesAdvances. deposits and prepayments 17,223,216 19,479,174 2,255,958 13Cash and cash equivalents 61,860,613 68,851,303 6,990,690 11Total current assets 297,511,845 370,482,030 72,981,185 25Total assets 3,361,027,784 3,321,348,953 -39,678,831 -1EquityShare capital 663,306,200 762,802,130 99,495,930 15Revaluation reserve 207,572,500 207,572,500 0 0Retained earnings 350,813,087 584,510,369 233,697,282 67Total equity attributable to equityholders of the company1,221,691,787 1,554,884,999 333,193,212 27LiabilitiesProject loan-non current portionRedeemable preference shares-non-current portion1,311,647,152 1,032,961,420 -278685732 -21.25Finance lease-non-current portionTotal non-current liabilities 1,311,647,152 1,032,961,420 -278685732 -21.25Trade creditors 53,677,552 30,482,036 -23195516 -0.43Others creditors and accruals 51,875,990 39,638,325 -12237665 -23.59Inter company payable 436,465,487 379,414,373 -57051114 -13.07Project loan-current portionRedeemable preference share-currentportion283,967,800 283,967,800 0 0Finance lease-current portion 1,702,016 -1703016 -100Total current liabilities 827,688,845 733,502,534 -94186311 -11.38Total liabilities 2,139,335,997 1,766,463,954 -372872043 -17.43Total equity and liabilities 3,361,027,784 3,321,348,953 -39678831 -1.18
    • Fuel & PowerApril 12, 2013Page 173.3.2. VERTICAL ANALYSISSummit PurbancholFinancial StatementFor the year ended 31-DEC-20112011 2010Assets Amount % Amount %Non- current assetsProperty, plant and equipment 2,950,721,090 88.57% 3,034,408,714 91.07%Intangible assets 145,833 0.00% 195,833 0.01%Total non -current assets 2,950,866,923 88.58% 3,034,604,547 91.07%Current assetsInventories 100,646,673 3.02% 31,989,074 0.96%Trade receivables 181,504,880 5.45% 186,076,442 5.58%Other receivables - - 1,251,271 3.76%Advances deposits and prepayments 19,479,174 0.58%Cash and cash equivalents 68,851,303 18.58% 61,860,613 1.86%Total currents assets 370,482,030 11.12% 297,511,845 8.93%Total assets 3,331,348,953 100.00% 3,332,116,392 100.00%Equity and liabilitiesshare capital 762,802,130 22.97% 663,306,200 19.91%revaluation reserve 207,572,500 6.25% 207,527,500 6.23%retained -earning 584,510,369 17.60% 321,901,695 9.66%total equity attributable to equityholders1,554,884,999 46.81% 1,192,780,395 35.80%Liabilitiesredeemable preference share non-currentportion1,032,961,420 31.10% 1,311,647,152 39.36%Total non-current liabilities 1,032,961,420 31.10% 1,311,647,152 39.36%Trade creditors 30,482,036 0.92% 53,677,552 1.61%other creditors and accruals 39,638,325 1.19% 51,875,990 1.57%inter -company payables 379,414,373 11.42% 51,875,990 1.57%project loan-current portion - - 436,465,487 13.10%redeemable preference shares-currentportion283,967,800 8.55% 283,967,800 8.52%finance lease –current portion - 1,702,016 0.05%Total current liabilities 733,502,534 22.08% 827,688,845 24.84%Total liabilities 1,766,463, 53.19%2,139,335,99764.20%Total equity and liabilities 3,321,348,953 100.00% 3,332,116,392 100.00%
    • Fuel & PowerApril 12, 2013Page 18SPPCLIncome StatementFor the year ended 31-Dec-20112011 2010Amount % Amount %Revenue 1,145,014,718 100.00% 1,141,751,963 100.00%Cost of sales -536,404,947 -46.85% -504,400,111 -44.18%Other income 1,414,272 0.12% 1,876,380 0.16%Gross profit 608,609,771 53.15% 637,351,182 55.82%Operating expensesGeneral and administrative expenses -58,604,291 -5.12% -46,568,132 -4.08%Operating profit 551,419,752 48.16% 592,660,100 51.91%Finance income 15,523,423 1.36% 4,325,062 0.38%Finance costs -171,673,261 -14.99% (282,600,320 -24.75%Finance costs, net -156,149,838 -13.64% -278,275,258 -24.37%Total comprehensive income for theyear395,269,914 34.52% 314,384,842 27.54%4. RATIO ANALYSIS:Investors look upon the profitability and market test ratios to analyze a company’sability to make profit and give dividends. Profitability is a very important measure of acompany’s operating success. Market test ratios help investors to assess the relative merits ofthe various stocks in the market.These ratios can be broadly classified into: Liquidity Ratios: These are used to indicate a company’s short term debt payingability. Thus these ratios are used to show the company’s capacity to meet the maturingliabilities to the interested parties. Profitability Ratios: This is an important source of a company’s operating success.These ratios use two sources:1. Company’s ability to recover costs and expenses using the income statement.2. The company’s ability to earn income on the assets employed using the balancesheet.
    • Fuel & PowerApril 12, 2013Page 19 Solvency Ratios: These ratios are the measures of the ability of the enterprise tosurvive over a long period of time.4.1. Ratio Analysis of POWERGRID: Liquidity Ratios:a. Current Ratio: This is calculated by dividing current assets by the currentliabilities. This ratio indicates the company’s ability to pay off its debts usingits immediately available assets. The higher the ratio is, the higher the ability ofthe company to pay its liabilities.Current Ratio= Current Assets ÷ Current LiabilitiesPGCB FY2011Current Asset 15,276,967,578Current Liabilities 7,302,167,208Current Ratio 2.09 Profitability Ratios:a. Profit Margin: It indicates the net amount of profit on each sales or each revenue.The amount of net income includes all types of non-operating items that mayoccur in a particular period; therefore, net income includes the effect of suchthings as extraordinary items and interest charges.Profit Margin= Net Income/ Net SalesPGCB FY2011Net Income 986,892,735Net Sales 6,255,121,287Profit Margin 0.1577b. Asset Turnover: This ratio shows the efficiency with which a company uses itsassets to generate its sale.Total Assets Turnover = Net Sale ÷ Average Assets
    • Fuel & PowerApril 12, 2013Page 20PGCB FY2011Net Sale 6,255,121,287Avg. Asset 15,276,967,578Asset Turnover 0.409c. Earnings per Share: The earnings per share of common stock are earningsavailable to common stockholders divided by the weighted average number ofshares of common stock outstanding. This is the most used index for a company’soperations and is important for both the stockholders and the creditors.EPS = Net Income/ weighted average common shares outstandingPGCB FY2011Net Profit After Tax 924,601,544No. of Common Shares Outstanding 327,872,887EPS 2.82d. Price-Earning Ration:PER= Market price per Share/ EPSPGCB FY2011Market price per Share 70EPS 2.82PER 24.82 Solvency Ratios:a. Debt to total Asset ratio: This ratio measures the percentage of the total assetsthat the creditors provide.Debt to Total Asset Ratio= Total Debt/ Total AssetPGCB FY2011Total Debt 74,503,730,358Total Asset 74,503,730,358Debt to Total Asset Ratio 0
    • Fuel & PowerApril 12, 2013Page 214.2.Ratio Analysis of JAMUNAOIL: Liquidity Ratios:b. Current Ratio:Current Ratio= Current Assets ÷ Current LiabilitiesJOCL FY2011Current Asset 1442.83Current Liabilities 1211.54Current Ratio 1.19c. Acid Test Ratio:Acid Test Ratio = (Cash+ short term investment+ receivables) ÷ Current LiabilitiesJOCL FY2011Cash+ short term investment+receivables 17.54Current Liabilities 1077.54Acid Test Ratio 1.63 Profitability Ratios:a. Asset Turnover:Total Assets Turnover = Net Sale ÷ Average AssetsJOCL FY2011Net Sale 7796.66Avg. Asset 492.88Asset Turnover 15.8
    • Fuel & PowerApril 12, 2013Page 224.3.Ratio Analysis of SPPCL: Liquidity Ratios:a. Current Ratio: Current Ratio= Current Assets ÷ Current LiabilitiesSPPCL FY2011Current Asset 370,484,030Current Liabilities 733,502,534Current Ratio 0.50b. Acid Test Ratio:Acid Test Ratio = (Cash+ short term investment+ receivables) ÷ Current LiabilitiesSPPCL FY2011Cash+ short term investment+receivables 68,851,30 +200,984,054Current Liabilities 827,688,854Acid Test Ratio 0.25c. Inventory Turnover Ratio:SPPCL FY2011Cost Of Sales 536,404,947Average Inventory (31,989,074+100,646,673)/2Inventory Turnover 6.51 Profitability Ratios:a. Returns on Assets:SPPCL FY2011Net Income 395,269,914Average Asset (31,989,074+100,646,673)/2Return On Assets 4.80
    • Fuel & PowerApril 12, 2013Page 235. CONCLUSION & RECOMMENDATION(Fig 1- Sectoral Trunover, February 2013)As you can see from our analysis data that net profit and such are high making thesethree companies (PGCB, SPPCL and JOCL) very profitable and their shares highly soughtafter. And from the sectoral turnover graph (above), collected from DSK for the monthFebruary 2013, we can see that fuel and power sector has the highest turnover rate- 17.44%.
    • Fuel & PowerApril 12, 2013Page 246. APPENDIX1. Annual report of Jamuna Oil 2010 and 2011.2. Annual report of Summit Purbanchol 2010 and 2011.3. Annual report of Power Grid 2010 and 2011.