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BSRM, RSRM, and PHP float glass

Accounting term paper presentation

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BSRM, RSRM, and PHP float glass

  1. 1. TERM PAPER PRESENTATION ON FINANCIAL STATEMENT ANALYSIS OF BSRM STEEL, RSRM STEEL & PHP FLOAT GLASS INDUSTRIES LTD Md. Kowshick Ahmed ID: 16251009 Marketing -16 Section: A
  2. 2. EXECUTIVE SUMMARY The main focus of this report is on the Financial Statement Analysis of BSRM steels ltd, RSRM steels ltd and PHP float glass industries ltd. In order to focus on the financial performance of BSRM, RSRM and PHP float glass Limited, the study focuses on the financial statement and ratio analysis. The study has been conducted mainly based on secondary data which I collect from many sources like internet, journal, and company. Moreover, on the study describe the basic experience and objectives of the study. In this report I try to show here the companies income statement and balance sheet. I give the 3 companies Total Revenue, total expense, profit before income tax, profit after tax and earning per share of the three companies. I also show their current assets current liabilities, total equities and other data that are related to this topic. I also analysis their performance ratio and lastly show comparative analysis of BSRM steels, RSRM steels and PHP float glass industries.
  3. 3. Objectives of the Study Specific: • The main purpose of this term paper is to find out the financial performance of BSRM steels,RSRM steels and PHP float glass industries ltd. Broader: • The areas on which I will give emphasis are: • To find out the financial strength of BSRM, RSRM and PHP. • To find out the financial weakness of BSRM, RSRM and PHP. • To evaluate financial condition& performance of BSRM, RSRM and PHP. • Recommends solution related to their financial performance.
  4. 4. Methodology Research Design: For this term paper I randomly selected 3 companies. The selected companies are Bangladesh Steel Re-Rolling Mills- BSRM, Ratanpur Steel Re-Rolling Mills Limited-RSRM and PHP float glass industries ltd. It is descriptive in nature mainly based on secondary data. The study focuses on financial statement analysis using of ratio and measurement of performance of my selected companies.
  5. 5. Methodology The major portions of data source used in this report are from secondary sources. Finally, the collected data are classified, tabulated, analyzed, interpreted and presented in the form of research report thereafter. • Annual Report of BSRM, RSRM and PHP float glass industries ltd. • Websites • Statistical data • Prospectus
  6. 6. Findings and analysis Total Revenue Total Revenue Total Revenue BSRM RSRM PHP 2015 32,316,100,562 5,503,171,247 880,528,690 2014 38,535,936,754 4,766,995,506 775,481,990 0 5,000,000,000 10,000,000,000 15,000,000,000 20,000,000,000 25,000,000,000 30,000,000,000 35,000,000,000 40,000,000,000 45,000,000,000 Total Revenue 2015 2014 BSRM:38,535 million-2014 32,316 million-2015 RSRM:4766 million-2014 5503 million-2015 PHP:775 million-2014 880 million-2015
  7. 7. Findings and analysis BSRM Profit after tax for the year RSRM Profit after tax for the year PHP Profit after tax for the year 2015 2014 BSRM Profit after tax for the year 2,081,877,163 1,086,207,806 RSRM Profit after tax for the year 272,583,081 154,957,856 PHP Profit after tax for the year 754,698,321 120,779,206 2,081,877,163 1,086,207,806 272,583,081 154,957,856 754,698,321 120,779,206 PROFIT AFTER TAX BSRM Profit after tax for the year RSRM Profit after tax for the year PHP Profit after tax for the year BSRM:2080 million-2015 1086 mi-2014 RSRM:272 mi-2015 154 mi-2014 PHP:120 mi-2014 754 mi-2015
  8. 8. Findings and analysis 0 5,000,000,000 10,000,000,000 15,000,000,000 20,000,000,000 25,000,000,000 30,000,000,000 Total Assets Total Assets Total Assets BSRMRSRMPHP BSRM RSRM PHP Total Assets Total Assets Total Assets 2014 22,766,018,821 4,749,536,683 2,450,077,393 2015 26,940,052,392 4,803,178,731 4,426,597,454 Total Assets 2014 2015 BSRM:26,940 mi-2015 RSRM:4800 mi-2015 PHP: 4426 mi-2015
  9. 9. Findings and analysis 2014 2015 BSRM Total Equity and Liabilities 22,766,018,822 26,940,052,392 RSRM Total Equity and Liabilities 4749536683 4803178731 PHP Total Equity and Liabilities 2,450,077,393 4,426,597,454 0 5,000,000,000 10,000,000,000 15,000,000,000 20,000,000,000 25,000,000,000 30,000,000,000 Total equity and liabilities BSRM Total Equity and Liabilities RSRM Total Equity and Liabilities PHP Total Equity and Liabilities
  10. 10. Ratio Analysis (RSRM steels) • Current Ratio: Current ratio is an assessment of a firm’s short-term liquidity. It is computed by dividing current assets by current liabilities. NOTE: Here the assets of 31 December 2015,are 1.67.so we can say that the situation of assets and liabilities of 31 December 2015 is better than assets and liabilities 31 dec 2014. we can see that the company has 1.67 in current assets to cover each 1.00 in current liabilities. 2015 Times 2014 Times = 𝟐,𝟖𝟎𝟏,𝟓𝟕𝟓,𝟓𝟖𝟑 𝟏,𝟔𝟕𝟎,𝟔𝟏𝟓,𝟔𝟔𝟎 1.67 = 𝟐,𝟔𝟖𝟒,𝟓𝟕𝟒,𝟎𝟕𝟏 𝟐,𝟕𝟖𝟔,𝟎𝟔𝟔,𝟔𝟓𝟒 0.96 Current ratio = Current assets/Current liabilities
  11. 11. Ratio Analysis (RSRM steels) GROSS PROFIT RATIO: It indicates the total margin available to cover other expenses beyond cost of goods sold and still yield a profit. Gross profit ratio = 𝑮𝒓𝒐𝒔𝒔 𝒑𝒓𝒐𝒇𝒊𝒕 𝑵𝒆𝒕 𝒔𝒂𝒍𝒆𝒔 × 𝟏𝟎𝟎 NOTE: This ratio indicates the efficiency of operation of how products are priced. In 2015 gross margin ratio is increased than previous years. It is good for the company. 2015 Percenta ge 2014 Percenta ge == 𝟓𝟒𝟗,𝟒𝟒𝟐,𝟗𝟔𝟗 𝟓,𝟓𝟎𝟑,𝟏𝟕𝟏,𝟐𝟒𝟕 × 100 9.98 = 465,001,928 4,766,995,506 × 100 9.75
  12. 12. Ratio Analysis (BSRM steels) • Current Ratio: Note: A ratio under 1 indicates that a company's liabilities are greater than its assets and suggests that the company in question would be unable to pay off its obligations if they came due at that point. 2015 Times 2014 Times = 𝟖,𝟕𝟕𝟒,𝟒𝟓𝟏,𝟒𝟗𝟐 𝟏𝟏,𝟗𝟗𝟗,𝟐𝟐𝟗,𝟏𝟐𝟖 0.73 = 𝟏𝟎,𝟏𝟔𝟑,𝟕𝟑𝟖,𝟔𝟓𝟕 𝟗,𝟑𝟐𝟗,𝟕𝟓𝟎,𝟒𝟔𝟎 1.08
  13. 13. Ratio Analysis (BSRM steels) GROSS PROFIT RATIO: Note :This ratio indicates the efficiency of operation of organization. In 2015 gross margin ratio is increased than previous years. It is good for the company. 2015 Percentage 2014 Percentage = 𝟒𝟖𝟏𝟒𝟗𝟓𝟏𝟒𝟓𝟏 𝟑𝟑𝟒𝟗𝟑𝟐𝟐𝟖𝟔𝟓𝟏 × 100 14.37 = 3,488,014,384 38,571,105,303 × 100 9.04
  14. 14. Ratio Analysis PHP float glass Current Ratio: Note :It indicates that a company's liabilities are greater than its assets ,it is not good for the company. 2015 Times 2014 Times = 590393508 𝟖𝟒𝟑𝟖𝟐𝟎𝟎𝟕𝟕 0.69 = 𝟖𝟏𝟖𝟑𝟖𝟗𝟔𝟑𝟏 𝟏𝟖𝟔𝟓𝟗𝟐𝟖𝟑𝟖𝟑 0.43
  15. 15. Ratio Analysis PHP float glass • GROSS PROFIT RATIO • Note: the higher ratio is considered better . 2015 Percentage 2014 Percentage = 𝟐𝟑𝟑𝟕𝟐𝟒𝟓𝟕𝟔 𝟖𝟖𝟎𝟓𝟐𝟖𝟔𝟗𝟎 × 100 26.50 = 𝟐𝟐𝟕𝟒𝟒𝟖𝟓𝟏𝟑 𝟕𝟕𝟓𝟒𝟖𝟏𝟗𝟗𝟎 × 𝟏𝟎𝟎 29.32
  16. 16. Recommendation and conclusion ❶The BSRM steels Company should give more focus on general financial strength. The company should pay more attention towards the gross profit ratio and net profit ratio because both of these are showing an upward and downward trend. ❷The RSRM steels Company they should utilize maximum amount of its production capacity which leads to increase annual turnover as well as profit margin. They should have short-term as well as long-term solvency for financial strength. ❸finally the PHP float glass industries their gross profit and net profit is better than other 2 companies.
  17. 17. Thank You

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