Cherat Cement Company Limited is a leading cement manufacturer in Pakistan that was established in 1981. It has an annual production capacity of 2.4 million tons and its plant is located in Village Lakrai, Khyber Pakhtunkhwa. The company enjoys strong brand loyalty in Pakistan and abroad. It focuses on quality management and has received ISO 9001 certification. The company has various regional offices and works in different sectors including marketing, dispatch, accounts, and computer systems. It has a diverse banking network and aims to optimize growth and returns through investments.
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Project Term Report - Lucky Cement, Strengthen the Dreams Sajjad Sayed
This project report has been developed to enlist problems that a Lucky Cement has at the moment. The recommendation for the resolution of problems have been suggested to Lucky Cement Management. My this report has helped Lucky Cement to Strengthen the Dreams
A study that will facilitate in knowing whether it is lucrative or not to invest in Tata Steel .
An extensive report on investment analysis which consist of both fundamental and technical analysis.
Organizational study on acc limited bangloreAbhinav Kp
Organizational study on acc limited banglore , BANGLORE , ACC LIMITED , OS REPORT , WONDERFUL REPORT , 76 PAGES , ALL ABOUT THE SALES UNIT IN BANGLORE , MBA PROJECT REPORT
Project Term Report - Lucky Cement, Strengthen the Dreams Sajjad Sayed
This project report has been developed to enlist problems that a Lucky Cement has at the moment. The recommendation for the resolution of problems have been suggested to Lucky Cement Management. My this report has helped Lucky Cement to Strengthen the Dreams
A study that will facilitate in knowing whether it is lucrative or not to invest in Tata Steel .
An extensive report on investment analysis which consist of both fundamental and technical analysis.
Organizational study on acc limited bangloreAbhinav Kp
Organizational study on acc limited banglore , BANGLORE , ACC LIMITED , OS REPORT , WONDERFUL REPORT , 76 PAGES , ALL ABOUT THE SALES UNIT IN BANGLORE , MBA PROJECT REPORT
Back Ground Information Brief History Kuwait Ce.docxjasoninnes20
Back Ground Information
Brief History
Kuwait Cement Company is a Kuwait Based company established in November
1968. The establishment of the company was done by experienced economists, due
to the need of such company in mist of the rising of modern construction of
buildings and houses at that time. Since then the company has been a major supplier
in the construction industry. The State of Kuwait has definitely supported and
encouraged this type of investment and establishment and any establishment that
would have an impact of reducing the crucial reliance on oil.
Objectives
Their objectives since establishment as stated by the chairman Rashed Abdulaziz
AlRashed on their website are as follows:
1- “Preserve the quality of its products.”
2- “Stabilize the cement prices in the local market.”
3- “Implement its ambitious plans of building an advanced and integrated industry that would serve
the country and its citizens.”
Organizational Structure
(The company follows a hierarchy structure, which is a traditional organizational
structure. Creating many levels of management and authority, lacking flexibility in
decision making and increasing time and duration of any decisions and information
to travel from entry level up to senior management.)
The Corporation major shareholders are three large investors in Kuwait, the first
one is Kuwait Investment Authority owning 29.363% of the shares. Kuwait
investment authority or KIA is a very successful and powerful company is the
finance and investment industry in Kuwait. it currently amongst its many
investment activities, manage the General Reserve Fund and the Future Generations
Fund. The second major shareholder is the National Industries Group (NIG) owning
26.121% shares, “NIG manages several and manifold activities in investment and shares, in
Building Materials, Petrochemicals, Oil & Gas Services, Mechanical Industries, Utilities, Real estate
Infrastructure, and Financial Services. Through the asset management expertise in managing
financial portfolios, equity shares, and direct investment has brought home creditable and laudable
profits to its shareholders…” (About, National Industries Group). The third major shareholder is Al-
Rashid Trading Contracting Company with 7.459% Shares. Al-Rashid Trading has representatives on
the board of directors.
Board Of Directors
The Executive Management
Chairman: Rashid
Abdulaziz Al-Rashid
Dr. abdulaziz Rashid
alrashid
Basil saad alrashid
Tamadir ahmad
alhouti
Jamal yousef
albabtain
Khalid Abdullah
alrabiah
Rasha abdulrahman
al mulhim
Abdullah
mohammad saad
Yacoub mohammad
alsagir
Yousef bader
alkharafi
CEO-
Abdulmutalib
esmael
behbehani
Debuty CEO -
Mishaal abdul
muhsin alrashid
COO- Rajesh
kumar sinj
Debuty COO-
Saad yousif
alsuwaidan.
Subsidiaries
KCC did expand and build or create three subsidiaries, all operate in the
constructi ...
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a complete styduy of how strategic management concepts are actually practiced in practical world we have made different models of management for lucky cement after gathering a detailed information good luck :)
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Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
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The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
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Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
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Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
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What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
2. Executive Summary
Cherat Cement Company Limited is a Ghulam Faruque Group (GFG)
Company. It was incorporated in 1981 and started its production in
1984.It was the first Cement factory in private sector. This Company
is engaged in the manufacturing, marketing and sale of cement. The
company has a production capacity of 2,400,000 tons per annum
and 6,700 tons per day enjoys strong brand loyalty amongst its
customers both in Pakistan and abroad.
The shares of the company are listed on the Karachi, Lahore and
Islamabad Stock Exchanges and it is a recipient of Forbes “Asia
under a Billion Dollar” company award. The company has an ISO
9001:2008 certification.
3. The Cherat Company is amongst the pioneers of cement industry in
Pakistan and is the number 1 cement in its region. Quality is his
business; therefore, there are no compromises on Quality
Management. Cherat cement is not only one of the best qualities
cements in Pakistan
The plant of Cherat Cement is located at Village Lakrai, District
Nowshera, Khyber Pakhtunkhwa (KPK) Province. The Main Office of
Cherat Cement Company is in Karachi, Sales Office is in Peshawar,
Regional Office is in Lahore and in Islamabad they have also an
office.
4. Cherat Cement Company Limited (CCCL) is a Ghulam Faruque
Group Company. Its main business activity is manufacturing,
marketing and sale of Ordinary Portland Cement. The
Company is the number one cement in its region and amongst
the pioneers of cement industry in Pakistan. Our businesses
Quality; therefore, there are no compromises on Quality
Management. The Company’s annual installed capacity is 01
million tons of clinker. The plant is located at Village Lakrai,
District Nowshera, Khyber Pakhtunkhwa (KPK) Province.
.
5. Scope of the Work
Cherat Cement Company limited consists of the following six sections:
Booking
Planning and Coordination
Dispatch
Computer
Accounts
Marketing
Cherat Cement Company limited consist of above different sections ,
as described but being a student of BBA (Finance) we concentrate
more on account section.
6. Vision
Vision of the group is the growth through the best value creation for the
benefit of all stakeholders.
Mission
Invest in projects that will optimize the risk-return profile of the
Company.
Achieve excellence in business.
Maintain competitiveness by leveraging technology.
Continuously develop our human resource.
To be regarded by investors as amongst the best blue-chip stocks in
the country.
7. Projects of the Group
Greaves Carbon Products
Cherat Electric Limited
Cherat Cement Company Limited
Faruque Private limited
Greaves Cotton Air-Conditioning Pvt. Limited
Greaves Cotton Pakistan
Cherat Paper-Sack Limited
Mirpurkhas Sugar Mills
Zen soft Private
8. FINANCIAL BACKGROUND & BANKERS
The Company is considered liquid on all financial considerations
throughout its performances and has a strong financial
background. It is enjoying excellent relations with its bankers
and all necessary credit limits and facilities at most
competitive terms. Following are the existing bankers of the
company:
ABN Amro Bank
Allied Bank
American Express Bank
Bank Al-Habib Limited
Muslim Commercial bank Limited
National Bank Of Pakistan
Standard Chartered Bank
Soneri Bank Limited
Union Bank Limited
United Bank Limited
9. CURRENT MARKET SITUATION
Cherat Cement has come out stronger and better at the end of the
financial year 2016 and 2017. Cherat Cement Company has grown
and has proven that it has potential to sustain growth and
profitability. Now the company has a production capacity of 24 lack
tons per annum and enjoys strong brand loyalty amongst its
customers both in Pakistan and abroad. The shares of the company
are listed on the Karachi, Lahore and Islamabad Stock Exchanges
and it is a recipient of Forbes “Asia under a Billion Dollar” company
award.
10. ACCOUNTING SECTION
In Cherat Cement Company, there is a well established accounting
section which helps to keep a frequent check on all the transactions.
The accounts section keeps all the records of inflows and outflows.
The account section keeps all the records of transactions with
all the proofs. Then if somewhere the loss occurs or any fault occurs
in the transaction, can be easily checked from the account section.
Some of the main jobs performed by the accounts section in
Peshawar sales office are mentioned below:
PREPARATION OF VARIOUS TYPES OF VOUCHERS:
Cash Payment Voucher
Bank Payment Voucher
Journal Voucher
Cash Receipt Voucher
Bank Receipt Voucher
11. . PREPARATION OF THE BANK RECONCILIATION
STATEMENT
Bank reconciliation statement is prepared on daily basis in order to
check the accuracy of the company’s cashbook with the bank
statement.
CONFIRMATION OF DEPOSITE SLIP:
The accounts also carry a computerized record of the customer’s balance. Before any
order is booked for the customer, the deposit slip is to be confirmed from the
accounts section, if he has a credit balance the order is booked for him but if the
balance is in debit then he is not given any kind of supply.
POSTING OF PETTY CASH TRANSACTION IN TO GENERAL LEDGER:
General Ledger (GL) is a computerized ledger at CCCL. Each and every petty cash transaction
is posted into GL once or twice a week. The aim is to keep the system up to date.
12. CHECKING OTHER DISPATCH:
Every area or division has got specific prices for cement, these processes or rates are
checked with the printed address in the final dispatch plan, and if there are any
discrepancies then they are corrected according to the code numbers of the area.
CHECKING OTHER REPORTS:
The accounts section also perform the important job of verifying various types of
reports like booking schedule, booking journals, daily dispatch summary and
customer ledger etc. Usually the amount received in the reports is checked and
here after verified.
COLLECTION:
The main collection account of the company is in MCB, university town branch Peshawar. All
amount collected by almost all the banks is sent ultimately to this branch.
13. SWOT ANALYSIS
SWOT analysis is the analysis of a company’s strength, weaknesses, opportunities
and threats. Cherat Cement Company limited is a good company of cement
industry and the must need to maintain its position more goodly.
1. STRENGTHS:
HIGHT STANDARD:
Cherat Cement have Quality Control department, which never compromise on Quality. So it has join
reputation because of high quality.
ISO 9002 CERTIFIED:
Cherat Cement is ISO 9002 certified which give it high repute. And give customers a sense of quality and
great image in their mind.
LOCATION:
The factory is located in the center near main target markets i.e. Peshawar, Nowshera, Mardan &
Charsadda, So due to sound location, the company have high profit margin as compare to other
competitions.
14. DEVELOPING MARKETING & SOLE PROCEDURE:
The representatives of Cherat Cement Company Limited marketing department regularly visit
the market, they are therefore aware of the problems of retailers & customers.
USAGE OD OWN ELECTRICITY & PAPER SACK:
Cherat Cement produces his own electricity, which is situated inside the factory. Also they have
their own proper sack mill. These both give much benefit & minimize the cost of production
as compare to others.
RAW MATERIAL:
Another factor of strength for Cherat Cement is that raw material (Gypsum & others) are in
much quantity in the areas where factory is also located.
2. WEAKNESS:
LACK OF STAFF IN MARKETTING SECTION:
Due to high demand, the workload on marketing staff is high & it is difficult for them to control.
DELEGATION OF AUTHORITY:
In Cherat Cement Co. the authority is more centralized. Every department/section has a
manager who has the sole authority and there is no delegation to subordinates
15. SLOW DISPATCHES:
The Dispatches rate of Cherat Cement Company Limited is relatively low then others due to
demand and scarcity of transporters. It can affect the dealers & customers highly.
ADVERTISMENTS:
Although cement is an industrial product & there is not that much need of advertisement of it.
However Cherat Cement Company Limited needs somewhat advertisement in that market.
Cherat Co gives less emphasis to advertisement, (promotion) as compare to competitors.
3. OPPERTUNITIES:
HIGH DEMAND:
Cherat Cement Company has high demand because of improvement in construction sector
through housing schemes, & major projects by government. So it is an opportunity for
Cherat Cement to avail and make the profit.
NEW MARKET COVERAGE:
As the Cherat Cement has high demand in the market. Because of high demand throughout
whole country Cherat Cement Company can over new market locally as well as in
Afghanistan. There are opportunity & potential for new markets in Northern areas and in
Northern Afghanistan.
16. AFGHANISTAN (EXPORT):
The Govt. of Pakistan has loosened the rules regarding export to Afghanistan regarding
cement. It cuts excise & sales tax 10 %. As the taxes are low to the export to Afghanistan
So the CCCL has opportunity to establish roots in Afghanistan and penetrate the market
because of high demand of its brand & image.
4. THREATS
NEW ENTRANCES:
Some new factories are entering in to the market which pose & threat t other existing
companies in terms of market like in Punjab, recently three new plants (companies) are
under construction.
SURVIVOR OF THE LATEST:
Cherat Cement Company Limited has small plants as compare to lucky and other who are
having large capacity to produce. So those who are having large plant can utilize in terms of
markets or reliability of its product.
17. LOOSING DEALER NETWORK:
Wholesaler provides more incentives to dealers or company. Live dealer need no to
deposit security in of wholesale also the dealer pry to wholesaler after the product
is sold Cherat Cement Company Limited take advance receipt also it takes
security from dealers. So this is the reason that Cherat Cement Company Limited
is losing the dealer network.
18. RATIO ANALYSIS
Accounting ratios attempt to highlight the relationships between significant items in
the accounts of a firm. Financial ratios are the analyst’s microscope; they allow
them to get a better view of the firm’s financial health than just looking at the raw
financial statements Ratios are used by both internal and external analysts.
Internal Uses
Planning
Evaluation of management
External Uses
Credit granting
Performance monitoring
Investment decisions
Making of policies
19. 1. LIQUIDITY RATIOS:
The Company has consistently maintained strong liquidity position due to better
working capital management policies. However, decline in the liquidity is
witnessed due to installation of new plant. This decline will be substantiated in
later year after completion of new plant.
CURRENT RATIOS:
This is a ratio of current assets to current liabilities. The current ratio shows how a
firm is able to cover its current liabilities with its current assets.
Formula: Current assets ÷ Current liabilities = Current Ratio
2017 2,004,822,000 ÷ 1,810,761,000 = 1.11
2016 2,266,600,000 ÷ 826,861,000 = 2.74
2014 2,905,175,000 ÷ 881,141,000 = 3.30
2013 1,533,642,000 ÷ 781,813,000 = 1.96
2013 1,289,206,000 ÷ 1,100,598,000 = 1.24
20. 0
1
2
3
4
2017 2016 2015 2014 2013
YEAR 2017 2016 2015 2014 2013
Current
assets
2,004,822 2,266,600 2,905,175 1,533,642 1,289,206
Current
liabilities
1,810,761 826,861 881,141 781,813 1,100,598
Currents
ratios
1.11 2.74 3.30 1.96 1.24
Interpretation
Cherat Cement has managed to create a good combination of the current assets and
liabilities making it financially sound and liquid enough to cover its liabilities. There is
however a substantial fall in the year 2017 and 2016 as compared to the industry
average. This phenomenon may be attributed to the large sum of short term running
finance taken to feed its growing operational costs during the year.
21. QUICK RATIO:
This ratio shows how a firm is able to cover its current liabilities with
the most liquid of its assets excluding the inventories which are not
so easily converted into cash.
Formula: (Short-Term Payments + Other Receivables + Short-Term Investments +
Cash) ÷ Current Liabilities = Quick ratio
2017 (993,623+13,586 +7,704+ 662,377 + 0000000 +23,002)÷1,810,761=
0.94
2016 (983,385 + 17,429 +16,453+ 167,405 + 600,118 + 18,354)
÷826,861= 2.18
2015 (1,181,254+ 18,028 +74,136+ 2,498 + 1,242,271+ 17,116) ÷881,141=
2.88
2014 (967,917 + 12,969 +33,634 + 59,806 + 000000+ 25,548) ÷781,813=
1.41
2013 (869,760 + 11,174 +37,283 + 14,758 + 00000+ 37,728) ÷1,100,598=
0.93
22. Year 2017 2016 2015 2014 2013
Quick ratio 0.94 2.18 2.88 1.41 0.93
0
1
2
3
4
2017 2016 2015 2014 2013
Interpretation
As it can be seen from the above table that although the ratios have been a
little higher than normal which is favorable but a major decline is visible in
2016to 2017 where the ratio is a lot less than normal. This can be due to
the fact that current liabilities have risen but the severity can also be
attributed to the high levels of inventory held by the enterprise.
23. 2. FINANCIAL LEVERAGE (DEBT) RATIOS:
Shows the extent to which the firm is financed by debt. The objective of
the company is to utilize financing resources at it most favorable
situation level. Financial leverage in current year is higher due to
debt drawdown for financing the expansion project. This effect will
be offset in later years with enhanced profitability from greater
sales.
DEBT TO EQUITY RATIOS:
The magnitude of debt contributed in the financing of the firm is shown by debt to equity ratio.
Formula: [Total Debts ÷ Shareholder’s Equity]:1 = Debt to Equity Ratio
2017 [6,321,784,000 ÷ 9,140,188,000]:1 = 0.69:1
2016 [1,437,795,000 ÷ 8,026,041,000]:1 = 0.18:1
2015 [1,566,700,000 ÷ 4,864,268,000]:1 = 0.32:1
2014 [1,355,472,000 ÷ 3,709,029,000]:1 = 0.36:1
2013 [2,023,980,000 ÷ 2,687,584,000]:1 = 0.75:1
24. Year 2017 2016 2015 2014 2013
Total debts 6,321,784 1,437,795 1,566,700 1,355,472 2,023,980
Shareholder’
s equity
9,140,188 8,026,041 4,864,268 3,709,029 2,687,584
Debt to
Equity ratio
0.69 0.18 0.32 0.36 0.75
0
0.2
0.4
0.6
0.8
2017 2016 2015 2014 2013Interpretation
The computation of this ratio brings to life the fact that Cherat cement has
not been able to feed its financing through equity as its ratios are
considerable higher than the favorable “1 or less”. The debt to equity ratios of
Cherat Cement are all less than 1 which means that it can easily fulfill his
liabilities.
25. DEBT TO TOTAL ASSET RATIO:
Total debt to asset ratio gives us an estimate of total amount of debt
that is being used in asset or the proportion of an asset that can be
used to feed the debt.
Formula: Total Debts ÷ Total Assets = Debts to
Total Assets Ratio
2017 6,321,784 ÷ 15,461,972 = 0.40
2016 1,437,795 ÷ 9,463,836 = 0.15
2015 1,566,700 ÷ 6,430,968 = 0.24
2014 1,355,472 ÷ 5,064,501 = 0.27
2013 2,023,980 ÷ 4,711,564 = 0.43
26. Year 2017 2016 2015 2014 2013
Total debts 6,321,784 1,437,795 1,566,700 1,355,472 2,023,980
Total assets 15,461,972 9,463,836 6,430,968 5,064,501 4,711,564
Debt to total
Assets ration
0.40 0.15 0.24 0.27 0.43
0
0.1
0.2
0.3
0.4
0.5
2017 2016 2015 2014 2013Interpretation
Cherat Cement is in a favorable state in this regard as its debt is covered by a larger
base of asset although it does not match the cement industry median of 0.20. It is
none the less in a respectable state but the situation may get worse if it keeps on
funding itself on debt. This phenomenon can be seen from the 2017 ratio where it
shows a tendency to grow unless the proportion is curtailed.
27. CONCLUSION
Industrial development is the primary requirement of any economy. Similarly the
cement industry of a country is a very important sector of its economy. In fact, it is
so important that is per capita consumption is gauge of the economic activity in a
country. Cement manufacturing is classified as heavy industry requiring high
investment.
Cherat Cement Company Limited is not only one of the best qualities cements in
Pakistan, but in the entire region due to its natural favor ”the limestone” which is
one of the best quality reserve in the world and in export contribution to total sales,
Cherat Cement is on 2nd position.
Cherat Cement Growth is Affect due to the last 10 years instability of the government,
the investors are unwilling to invest in Pakistan, which leads to reduction of
construction work, which affects the Cherat cement company. The inflation rate is
increasing day by day and the earning power of common man is low, due to which
the consumption of cement has decreased. Due to insufficient financial resources
and no saving habit of the common people of Pakistan, do not have surplus money
for the purpose of constructing houses.