The document provides information on various long term financing options for companies including venture capital, public and private placements, long term debt sources like term loans and private placements. It also includes details on BSRM's sources of financing, debt to equity trends over time compared to other companies, long term loan details and repayment schedules, information on a 12% convertible bond issue including valuation and repayment, and ratio analysis of BSRM's financial performance and position over several years.

2. Long Term Financing: Venture Capital

3. Long Term Financing: Public and Private Placement
Private Placement Parameter Public Bonds
Exempt from registration with SEC Registration Required to be a registration with SEC
Long term (up to 25+ years) Bullets or
amortizing structure
Tenor Long term (up to 25+ years) Bullets
with standard maturities
$20 million-$500 million in single
multiple structures
Issue Size >$300 million in a single issuance to
assure index eligibility
Fixed or floating Rate Generally fixed
None required Public rating Typically required
Minimal, no ongoing fees Fees Registration/rating fees placement
fees
Accredited Investors, typically
institutional single clubs or larger
groups buy and hold natures, smaller
investors base allows for amending
structure as needed
Investors Institutional investors sizable groups
can be active trader’s broad investor
base makes it difficult to change
terms post-funding

4. Long Term Financing: Long Term Debt
Public
Issues
Private
Financi
ng
1. Term Loans
2. Private Placements

5. Long Term Financing: Other Sources
Right
Offerings
Shelf
Registration

6. Company Act, 1994
Definition
Mortgages
It is specified in section 161 that
debenture is a certificate of loan
acknowledged by the company which
has a claim on the asset or not
A mortgage is a property created only for
securing the interest of the debt holders.
According to section 159, a mortgage for
a bond cannot be a floating charge or a
charge for securing the issue of debt, on
the uncalled share, on any immovable
property with interest therein, on any
book debts, on any movable property
except stock-in-trade.
1
2
3
4
Commission and
Discount
Commission, discount, or allowance is
recognized as payment to any third party
for the debt issuance procedures. It can
be made absolutely or, conditionally, or in
consideration of his subscription to the
debt.
Payment Receiver
Section 170 of the Company Act
recognized anyone who maintains the
mortgaged property or is entitled to the
payment from the debenture under the
name "receiver." A receiver can be a
person/company or collect payment on
behalf of a company.

7. SEC (Private Placement) Rules 2012
Conditions for
issuer
Registration of
Trustee
Application for
issue and
consent

8. BSRM: Source of Financing
39%
10%
51%
Portion of Financing
Equity Non-current liabilities Current liabilities

9. Debt Equity trend and industry comparison
1.53
1.64
1.73 1.7 1.75
2.08
2.18
1.92
1.28
1
0
0.5
1
1.5
2
2.5
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Debt Equity Ratio

10. Debt to Asset Ratio
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
BSRM ltd GPH Ispat RSRM Abul Khair steel BSRM steel
4%
49%
12%
17%
13%
Debt to Asset Ratio 2019-20

11. Long Term Loans
1
2
3
4
Agrani Bank Limited
Interest Rate: 12%
Project Loan
For meeting expenditure for capital
machineries
Security
i. Mortgage of land area of 1.98 acre and
building thereon.
ii. Hypothecation on all existing and
proposed machineries and furniture of
the project
iii. Personal guarantee of all directors of
the company.
Amount: BDT 111,936,000
1st Disbursement: December 2004
Tenure: 8 years
1st Payment: June 2007
Tenure: 8 years

12. Loan Repayment Schedule
Year Beginning balance of loan Installment Interest payment Principal
payment
Ending balance of
loan
Jun-07 111936000 11076307 6716160 4360147 107575853
Dec-07 107575853 11076307 6454551 4621756 102954097
Jun-08 102954097 11076307 6177246 4899061 98055036
Dec-08 98055036 11076307 5883302 5193005 92862031
Jun-09 92862031 11076307 5571722 5504585 87357445
Dec-09 87357445 11076307 5241447 5834860 81522585
Jun-10 81522585 11076307 4891355 6184952 75337633
Dec-10 75337633 11076307 4520258 6556049 68781584
Jun-11 68781584 11076307 4126895 6949412 61832171
Dec-11 61832171 11076307 3709930 7366377 54465795
Jun-12 54465795 11076307 3267948 7808359 46657435
Dec-12 46657435 11076307 2799446 8276861 38380574
Jun-13 38380574 11076307 2302834 8773473 29607101
Dec-13 29607101 11076307 1776426 9299881 20307220
Jun-14 20307220 11076307 1218433 9857874 10449346
Dec-14 10449346 11076307 626961 10449346 0

13. 12% Convertible Bond
12% Convertible Bond
Subscribers: Banks and
NBFs
Maturity: 5 years
Coupons Paid: quarterly
Convertibility
Amount: BDT 2000 million
Annual Coupon interest: 13%
Repayment will start from 2nd year and
88% of the total issue will be redeemed
over 4 years in equal installment except
100% of SABINCO portion that is BDT
27.6 million will be redeemed in cash.
Trustee: Eastern Bank Ltd
12% of the bond worth BDT 212.4 million
will be converted into ordinary share of
BSRM within 30 days after the end of the
first year except for SABINCO. .
The conversion will take place at BDT 38
per share with face value of BDT 10 per
share.
1
2
3
4

14. Annuity Valuation for Repayment
Present value of total collection
1332.552 million
Cost of capital
13%
Year
5
Compounding
Quarterly
PMT or annuity per quarter
91.7 million

15. Bond holder repayment schedule
YEAR LOAN AMOUNT
BEGINNING OF
THE YEAR
INSTALLMENT
PAYMENT
INTEREST PRINCIPAL LOAN AMOUNT
END OF THE YEAR
2015 Q1 1332552000 91651439 43307940 48343499 1284208501
Q2 1284208501 91651439 41736776 49914663 1234293838
Q3 1234293838 91651439 40114550 51536890 1182756948
Q4 1182756948 91651439 38439601 53211838 1129545110
2016 Q1 1129545110 91651439 36710216 54941223 1074603887
Q2 1074603887 91651439 34924626 56726813 1017877074
Q3 1017877074 91651439 33081005 58570434 959306639
Q4 959306639 91651439 31177466 60473973 898832666
2017 Q1 898832666 91651439 29212062 62439378 836393288
Q2 836393288 91651439 27182782 64468657 771924631
Q3 771924631 91651439 25087551 66563889 705360742
Q4 705360742 91651439 22924224 68727215 636633527
2018 Q1 636633527 91651439 20690590 70960850 565672678
Q2 565672678 91651439 18384362 73267077 492405600
Q3 492405600 91651439 16003182 75648257 416757343
Q4 416757343 91651439 13544614 78106826 338650517
2019 Q1 338650517 91651439 11006142 80645297 258005220
Q2 258005220 91651439 8385170 83266270 174738950
Q3 174738950 91651439 5679016 85972423 88766527
Q4 88766527 91651439 2884912 88766527 0

16. YTM (Yield to Maturity) on 12% convertible bond
Collection from bond except flotation cost (1500-17) = 1483 million
Quarter installment 91.65 million
Number of years 5
Portion of converting into ordinary share (1500-17-230) = 1253×12% = 150.36
million
Minimum value of ordinary share at the end
of 2nd year
150.36 × (57/38) = 225.54 million
YTM 15%

17. Year Interest Principal Total actual payments
2014 97500000 97500000
2015 183300000 27600126 210900126
2016 85892815 330000000 415892815
2017 128700000 330000000 458700000
2018 85800000 330000000 415800000
2019 42900000 330000000 372900000
Actual YTM

18. Actual Yield to Maturity
10.20%

19. 1. ShortTerm Solvency or
Liquidity Ratios
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
Current ratio 0.82 0.87 0.85 0.65 0.78 0.73 1.09 0.99 1.06 0.95 1.00
Quick ratio 0.37 0.45 0.36 0.20 0.35 0.31 -0.04 0.43 0.40 0.41 0.56
Cash ratio 28.33 26.93 30.07 32.43 24.95 18.83 146.67 59.31 55.71 54.29 31.06
2. LongTerm Solvency or
Financial Leverage Ratios
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
Total debt ratio 0.61 0.66 0.78 0.77 0.68 0.64 0.62 0.61 0.55 0.70 0.66
Debt-equity ratio 1.59 1.98 3.49 3.41 2.08 1.75 1.66 1.57 1.24 2.37 1.94
Equity multiplier 2.59 2.98 4.49 4.41 3.08 2.75 2.66 2.57 2.24 3.37 2.94
Times interest earned ratio 0.94 1.05 1.06 0.33 0.67 3.37 0.01 4.33 2.39 3.77 1.66
Cash coverage ratio 1.87 1.85 1.87 0.75 1.97 0.75 -0.13 1.08 1.74 2.11 2.42
Ratio Analysis

20. Ratio Analysis
3. Asset Utilization or
Turnover Ratio
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
Inventory turnover 2.23 3.55 2.59 2.21 1.14 0.81 0.75 1.38 2.80 2.25 3.19
Days' sales in inventory 163.53 102.96 140.76 165.35 320.57 447.95 489.64 265.32 130.3 161.99 114.35
Receivables turnover 12.72 11.81 8.41 17.96 9.94 8.96 18.75 21.25 25.86 28.58 22.03
Days' sales in receivables 28.69 30.91 43.39 20.32 36.71 40.74 19.47 17.18 14.12 12.77 16.57
Total asset turnover 0.59 0.91 0.90 0.70 0.31 0.16 0.35 0.40 0.83 0.85 0.94
Capital intensity 1.69 1.10 1.11 1.44 3.27 6.24 2.83 2.48 1.20 1.17 1.06
4. Profitability Ratios
Profit margin (PM) 0.03 0.03 0.05 0.01 0.06 0.04 0.01 0.11 0.03 0.09 0.04
Return on asset (ROA) 0.02 0.03 0.04 0.004 0.02 0.01 0.01 0.04 0.03 0.08 0.04
Return on equity (ROE) 0.04 0.08 0.19 0.02 0.06 0.02 0.01 0.11 0.06 0.26 0.12
ROE (DuPont analysis) 0.04 0.08 0.19 0.02 0.06 0.02 0.01 0.11 0.06 0.26 0.12

21. 5. MarketValue Ratios 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
Price-earnings ratio 12.28 6.19 6.64 38.41 43.54
Market to book ratio 1.00 1.00 1.00 1.00 1.00
EV multiple 18.59 13.68 10.80 13.42 26.69 130.05 -344.04 74.19 34.6
4
16.95 12.9
9
Ratio Analysis

22. Conclusion
Undervalued
Since Last 3 years. Before that some ups
& downs happened. So overall market
value ratios were also conclusive
enough.