Act201 term ppr fuel & power (sec 04)

Fuel & Power
April 12, 2013
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Submitted To
Sharmin Shabnam Rahman
Senior Lecturer
ACT 201
Date of Submission: 12th April 2013
Submitted By
Section 04
Sl.
No.
Name I.D. E-mail ID
1. Samiya Yesmin 11304043 samiya.yesmin@gmail.com
2. Faiza Munira 11321037 faiza.m25@gmail.com
3. Sawda Nusrat Haque 11305007 sawda009@gmail.com
4. Abrar Aqib 10204035 abrar.aqib@gmail.com
5. Nahian Noshin Mustafa 12204093 nahian505@gmail.com

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April 12, 2013
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LETTER OF TRANSMITTAL
Date: April 12, 2013
Sharmin Shabnam Rahman
Senior lecturer
BRAC Business School
Subject: Submission of Term Paper
Dear Madam:
We are pleased to submit our report on “Fuel & Power”, regarding three companies in this
sector, for your evaluation.
Working on this term paper has been very enlightening. We would like to thank you for
giving us this opportunity and to ask for your forgiveness regarding any mistake from our
part.
Yours sincerely,
Samiya Yesmin
Faiza Munira
Sawda Nusrat Haque
Abrar Aqib
Nahian Noshin

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April 12, 2013
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ACKNOWLEDGEMENT
We acknowledge our heartiest appreciation to Sharmin Shabnam Rahman ma’am
because without her help it would be very difficult for us to collect the information about the
report and prepare it.
We would also like to thank all the group members of our group for their sincere
effort in completing this report. Without the teamwork and assisting attitude of the group
members 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 any
students of our department.
EXECUTIVE SUMMARY
This is a term paper regarding financial analysis of company data provided at the
Dhaka Stock Market. It is to learn how financial accounting comes to play practically
regarding this aspect of the business. We have taken three companies from the fuel & power
sector of Bangladesh to do this study. The companies are Power Grid Company of
Bangladesh, Summit Purbanchol Power Company Limited and Jamuna Oil Company
Limited. And we have done their Horizontal and Vertical analysis for the year of 2010 and
2011, along with their ration analysis for 2011.

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CONTENTS
Letter of Transmittal ..................................................................................................................3
Acknowledgement .....................................................................................................................4
Executive Summary...................................................................................................................4
List of Abbreviations .................................................................................................................5
1. Introduction......................................................................................................................6
2. Report Questions..............................................................................................................8
3. Analysis..........................................................................................................................10
3.1. Power Grid Company of Bangladesh Ltd. ........................................................10
3.2. Summit Purbanchol Power Company Ltd.........................................................15
3.3. Jamuna Oil Company Limited ..........................................................................13
4. Ratio Analysis:...............................................................................................................18
4.1. Ratio Analysis of Power Grid Company Of Bangladesh Ltd.: .........................19
4.2. Ratio Analysis of Summit Purbanchol Power Company Ltd...........................21
4.3. Ratio Analysis of Jamuna Oil Company Limited: ............................................22
5. Conclusion & Recommendation....................................................................................23
Appendix …………………………………………………………………………………….24
TABLE OF CHARTS-
Fig 1- Sectoral Trunover, February 2013………………………………24
LIST OF ABBREVIATIONS
1. PGCB/ POWERGRID- Power Grid Company of Bangladesh
2. SPPCL- Summit Purbanchol Power Company Limited
3. JOCL/ JAMUNAOIL- Jamuna Oil Company Limited
4. DSE- Dhaka Stock Exchange

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1. INTRODUCTION
1.1. Report Background
PGCB, SPPCL and JOCL are among the leading companies of the fuel & power
sector in Bangladesh. Financial analysis of such innovating and leading companies of
Bangladesh 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 analysis
1.3. Methodology
We have used secondary sources to collect data for this study. And we collected
secondary information from the stock market reports available at Dhaka Stock Exchange.
1.4. Scope
The key focus of the report is the financial analysis of the annual reports of the
company 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’ analysis
1.5. LIMITATION
Time constrain
Limited knowledge in this field obstructed us from presenting a depth in analysis
Though the three companies are from the same industry, there were lack of
information needed for the ratio analysis of each of the companies and thus
caused hindrance

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Since the report is on fuel and power which is in fact a service oriented
organization, thus while calculating the ratios, some items were different and
caused some difficulty
1.6. Organization Background
Jamuna Oil Company Limited (JOCL) is a petroleum marketing company
serving the nation for the last four decades. Originally the name of company was Pakistan
National Oils Limited which was formed in the year 1964. After independence the company
was renamed to Bangladesh National Oils Limited by an Ordinance of 1972. In the year of
1973 Bangladesh National Oils Limited was renamed to Jamuna Oil Company Limited and
registered as a Private Limited Company on 12th May, 1975 under the companies act. It has
been functioning as a subsidiary of Bangladesh Petroleum Corporation (BPC) since 1977.
As per decision taken by Government & BPC, the company was converted into a Public
Limited Company on 25th June, 2007
Summit Purbanchol Power Company Limited (SPPCL), is one of the leading
Bangladeshi Independent Power Producer (IPP) in Bangladesh in private sector providing
power to national grid. SPPCL was incorporated in Bangladesh on August 15, 2007 as a
Private Limited Company. Summit Purbanchol Power Company Limited in the year 2009 has
successfully established two power plants of 33 MW capacity each, for sale of electricity to
Rural Electrification Board (REB) and Bangladesh Power Development (BPDB) on Build,
Own and Operate basis at Rupganj, Narayanganj and Jangalia, Comilla respectively. In 2011
SPL has commissioned another power plant of 102 MW capacity at Narayanganj under
Summit Narayanganj Power Limited.
Power Grid Company of Bangladesd Ltd. (PGCB) was established on the 21st
November, 1996 as a fully BPDB owned company with an authorized capital of TK 10
billion under the Power Sector Reform Program of the Government. PGCB has been running
under the Company Act 1994.

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2. REPORT QUESTIONS
2.1. 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 are
the Fuel & Power sector.
2.2. Fiscal Year of the entity. What is the difference between fiscal year and
calendar year?
The Fiscal Year of these companies has started from May and ended in June. The
Financial or Fiscal Year can be any 12 month period. But calendar year starts from January
and 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 (Income
Statement) and Balance Sheet.
2.4. Number of years reported on each financial statement. If multiple
years 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 years
report together. Multiple years are usually reported so that the results of consecutive years
can 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.

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2.6.Format of the Income Statement:
2.7.What is the name of audit firm?
The audit firms were Rahman Rahman Haq and ACNABIN chartered accountants
Company Name
Condensed Profit and Loss Account
For the Year ended ***, ***
Year
Revenues **
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 ****

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2.8.Categories of assets and liabilities used by the entity. Items included in
each category.
The categories of assets and liabilities used by these entities are property, plant and
equipment, capital work-in-progress, term loan interest bearing, interest payable, grant from
SIDA, deferred liabilities
3. ANALYSIS
3.1. Power Grid Company of Bangladesh Ltd.
3.1.1. HORIZONTAL ANALYSIS
Power Grid
For the Year ended June 30, 2011
2010 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 to
WPPF
2,338,382,452 850,173,802 (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%

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3.1.2. VERTICAL ANALYSIS
Power Grid
Balance Sheet
2010 2011 Amount %
Assets
Property, Plant and Equipment
BDT
33,383,269,863
BDT 35,676,781,529
BDT
2,293,511,666
7%
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 Other
Receivables
1,352,523,069 1,379,078,119 26,555,050 2%
Advances, deposits and pre-
payments
657,724,742 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%
Equity
Share 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 to
equity holders
16,049,729,157 19,781,648,951 3,731,919,794 23%
Liabilities
Term 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%

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Power Grid
Balance Sheet
2010 2011
Amount % Amount %
Assets
Property, 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%
Equity
Share 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 equity
holders
16,049,729,157 25.44% 19,781,648,951 26.55%
Liabilities
Term 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%

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Power Grid
2010 2011
Amount % 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 Limited
(All amounts below are in BDT millions)
Jamuna Oil Company
Income Statement
For the year ended June 30, 2011
Accounts details 2010 2011 Amount Percentage
Total 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%

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Jamuna Oil Company
Condensed Balance Sheet
Accounts Details 2010 2011 Amount Percentage
Share 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%
(All amounts below are in BDT millions)
Jamuna Oil Company
Condensed Balance Sheet
Accounts details
2010 2011
Amount % 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%

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Jamuna Oil Company
Income Sheet
Accounts details
2010 2011
Amount % 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.
Summit Purbanchol
Income Statement
For the Year ended 31-Dec-11
2010 2011 Amount %
Revenue 1,141,751,963 1,145,014,718 3,262,755 0
Cost of sales -485,125,850 -536,404,947 -51279097 10.57
Gross profit 656,626,113 608,609,771 -48016342 -7.31
Other income, net 1,876,380 1,414,272 -462108 -24.63
Operating expenses
General and administrative
expenses
-46,568,132 -58,604,291 -12036159
25.85
Operating profit 611,934,361 551,419,752 -60514609 -9.89
Finance income 4,325,062 15,523,423 11198361 258.92
Finance costs -282,600,320 -171,673,261 110927059 -39.25
Net finance costs -278,275,258 -156,149,838 122125420 -43.89
Total comprehensive income
for the year
333,659,103 385,269,914 51610811 15.47

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Summit Purbanchol
Financial Statement
For the year ended 31-DEC-2011
2010 2011 Amount %
Assets BDT BDT BDT
Non-current assets
Property, plant and equipment 3,063,320,106 2,950,721,090 -112,599,016 -4
Intangible assets 195,833 145,833 -50,000 -26
Total non-current assets 3,063,515,939 2,950,866,923 -112,649,016 -4
Current assets
Inventories 31,989,074 100,646,673 68,657,599 215
Trade receivables 186,076,442
181,504,880.0
0
-4,571,562 -2
Other receivables 362,500 -362,500 -100
Inter company receivables
Advances. deposits and prepayments 17,223,216 19,479,174 2,255,958 13
Cash and cash equivalents 61,860,613 68,851,303 6,990,690 11
Total current assets 297,511,845 370,482,030 72,981,185 25
Total assets 3,361,027,784 3,321,348,953 -39,678,831 -1
Equity
Share capital 663,306,200 762,802,130 99,495,930 15
Revaluation reserve 207,572,500 207,572,500 0 0
Retained earnings 350,813,087 584,510,369 233,697,282 67
Total equity attributable to equity
holders of the company
1,221,691,787 1,554,884,999 333,193,212 27
Liabilities
Project loan-non current portion
Redeemable preference shares-non-
current portion
1,311,647,152 1,032,961,420 -278685732 -21.25
Finance lease-non-current portion
Total non-current liabilities 1,311,647,152 1,032,961,420 -278685732 -21.25
Trade creditors 53,677,552 30,482,036 -23195516 -0.43
Others creditors and accruals 51,875,990 39,638,325 -12237665 -23.59
Inter company payable 436,465,487 379,414,373 -57051114 -13.07
Project loan-current portion
Redeemable preference share-current
portion
283,967,800 283,967,800 0 0
Finance lease-current portion 1,702,016 -1703016 -100
Total current liabilities 827,688,845 733,502,534 -94186311 -11.38
Total liabilities 2,139,335,997 1,766,463,954 -372872043 -17.43
Total equity and liabilities 3,361,027,784 3,321,348,953 -39678831 -1.18

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Summit Purbanchol
Financial Statement
For the year ended 31-DEC-2011
2011 2010
Assets Amount % Amount %
Non- current assets
Property, 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 assets
Inventories 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 liabilities
share 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 equity
holders
1,554,884,999 46.81% 1,192,780,395 35.80%
Liabilities
redeemable preference share non-current
portion
1,032,961,420 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-current
portion
283,967,800 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,
997
64.20%
Total equity and liabilities 3,321,348,953 100.00% 3,332,116,392 100.00%

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SPPCL
Income Statement
For the year ended 31-Dec-2011
2011 2010
Amount % 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 expenses
General 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 the
year
395,269,914 34.52% 314,384,842 27.54%
4. RATIO ANALYSIS:
Investors look upon the profitability and market test ratios to analyze a company’s
ability to make profit and give dividends. Profitability is a very important measure of a
company’s operating success. Market test ratios help investors to assess the relative merits of
the 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 paying
ability. Thus these ratios are used to show the company’s capacity to meet the maturing
liabilities 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 balance
sheet.

Fuel & Power
April 12, 2013
Page 19
 Solvency Ratios: These ratios are the measures of the ability of the enterprise to
survive 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 current
liabilities. This ratio indicates the company’s ability to pay off its debts using
its immediately available assets. The higher the ratio is, the higher the ability of
the company to pay its liabilities.
Current Ratio= Current Assets ÷ Current Liabilities
PGCB FY2011
Current Asset 15,276,967,578
Current Liabilities 7,302,167,208
Current 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 may
occur in a particular period; therefore, net income includes the effect of such
things as extraordinary items and interest charges.
Profit Margin= Net Income/ Net Sales
PGCB FY2011
Net Income 986,892,735
Net Sales 6,255,121,287
Profit Margin 0.1577
b. Asset Turnover: This ratio shows the efficiency with which a company uses its
assets to generate its sale.
Total Assets Turnover = Net Sale ÷ Average Assets

Fuel & Power
April 12, 2013
Page 20
PGCB FY2011
Net Sale 6,255,121,287
Avg. Asset 15,276,967,578
Asset Turnover 0.409
c. Earnings per Share: The earnings per share of common stock are earnings
available to common stockholders divided by the weighted average number of
shares of common stock outstanding. This is the most used index for a company’s
operations and is important for both the stockholders and the creditors.
EPS = Net Income/ weighted average common shares outstanding
PGCB FY2011
Net Profit After Tax 924,601,544
No. of Common Shares Outstanding 327,872,887
EPS 2.82
d. Price-Earning Ration:
PER= Market price per Share/ EPS
PGCB FY2011
Market price per Share 70
EPS 2.82
PER 24.82
 Solvency Ratios:
a. Debt to total Asset ratio: This ratio measures the percentage of the total assets
that the creditors provide.
Debt to Total Asset Ratio= Total Debt/ Total Asset
PGCB FY2011
Total Debt 74,503,730,358
Total Asset 74,503,730,358
Debt to Total Asset Ratio 0

Fuel & Power
April 12, 2013
Page 21
4.2.Ratio Analysis of JAMUNAOIL:
b. Current Ratio:
Current Ratio= Current Assets ÷ Current Liabilities
JOCL FY2011
Current Asset 1442.83
Current Liabilities 1211.54
Current Ratio 1.19
c. Acid Test Ratio:
Acid Test Ratio = (Cash+ short term investment+ receivables) ÷ Current Liabilities
JOCL FY2011
Cash+ short term investment+receivables 17.54
Current Liabilities 1077.54
Acid Test Ratio 1.63
a. Asset Turnover:
Total Assets Turnover = Net Sale ÷ Average Assets
JOCL FY2011
Net Sale 7796.66
Avg. Asset 492.88
Asset Turnover 15.8

Fuel & Power
April 12, 2013
Page 22
4.3.Ratio Analysis of SPPCL:
a. Current Ratio: Current Ratio= Current Assets ÷ Current Liabilities
SPPCL FY2011
Current Asset 370,484,030
Current Liabilities 733,502,534
Current Ratio 0.50
b. Acid Test Ratio:
Acid Test Ratio = (Cash+ short term investment+ receivables) ÷ Current Liabilities
SPPCL FY2011
Cash+ short term investment+receivables 68,851,30 +200,984,054
Current Liabilities 827,688,854
Acid Test Ratio 0.25
c. Inventory Turnover Ratio:
SPPCL FY2011
Cost Of Sales 536,404,947
Average Inventory (31,989,074+100,646,673)/2
Inventory Turnover 6.51
a. Returns on Assets:
SPPCL FY2011
Net Income 395,269,914
Average Asset (31,989,074+100,646,673)/2
Return On Assets 4.80

Fuel & Power
April 12, 2013
Page 23
5. CONCLUSION & RECOMMENDATION
(Fig 1- Sectoral Trunover, February 2013)
As you can see from our analysis data that net profit and such are high making these
three companies (PGCB, SPPCL and JOCL) very profitable and their shares highly sought
after. And from the sectoral turnover graph (above), collected from DSK for the month
February 2013, we can see that fuel and power sector has the highest turnover rate- 17.44%.

Fuel & Power
April 12, 2013
Page 24
6. APPENDIX
1. 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.

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