CHAPTER ONE

1.1 : Introduction :
Financial statements is a formal record of the financial activities and position of a business.
The key components of the financial statements are the income statement. Balance sheet and
statement of cash flows. The most important financial statement for the majority of users is
likely to be the income statement since is reveals a profit. Also the information listed on the
income statement is mostly in relatively current monetary value an s reorients a reasonable
degree of accuracy.

Profitability ratio is a class of financial metrice that are used to assess a business ability to
generate earning compared to its expenses and other relavent cost incurred during a specified
period time.

A statement of the assets liabilities and capital of a business and other organization at a
particular point in time detailing the balance of income and expenditure over the preceding
period.

The Balance sheet provides a picture of the financial health of a business at a given moment
in time usually the end of a month or financial year.

It can tell you if owe move money that what you currently value of your assets and the
overall value of the business. The cash flows statement (CPs) measure how well company
menage in cash position many how well the company generates cash to pay its debt
obligations and fund its operating expresses. The cash flow statement complements the
balance sheet and income statement and is a mandatory part of a company financial report
since 1987.

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1.2 : Objectives :
General objectives of the study is evaluate the profitability position of the selected company.

Specific objective :
 The calculate relevant ratio regarding profitability of the concern.
 The compare profitability position of the selected company over last 2 years.
 To evaluate the financial position performance of the company specially on the basic
of profitability.

1.3 Area of the study :

The study has been confined by giving inputs regarding profitability of selected company
over the last 2 years. Main focus of the study is to evaluate the financial performance of the
company regarding profitability.

1.4 Methodology :
Nature of the study : The study is mainly descripted in nature were presented and analyzed by
describing the last 3 years profitability position.

Source of Data : Data were collected from secondary source. Specially from published report
of the company other information has been collected form website and text book.

Tools of technique : some financial and statistical tools are used for analysis the relevant data,
mean, SD, CV, ration analysis the relevant data, mean, SD, CV, ration analysis are used.

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 CHAPTER - TWO

2.1 Company profile :

Beximco pharma Bangladesh limited is one of the largest producer of quality pharma in
Bangladesh. Beximco pharma Bangladesh Ltd is a member of beximco pharma group. The
group has 100 years of experience is producing product and is operating in more than 40
countries. It has around 53,000 employes and annual turnover of floro 11.1 billion. In
Bangladesh it represents two reputed brands Acme phara and square pharma. In 1998
Beximco phara group established it presence in Bangladesh by seeting up a floating terminal.
With onboard packing facilitics in the port of chittagong and by distributing the pharma two
the key market of Dhaka and chittagong. In 1998 Beximco phrma the group further
strengthened it position in Bangladesh and build a greenfield manufacturing plant near Dhaka
namely. Beximco pharma International limited with an installed capacity of 0.750 million
tons per year. In 2000 Beximco pharma group bought a minority position at. Chittagong
based company namely Chittagong pharmaa clinker grinding CO. Limited (CeeGcL) quickly
followed by the acquisition of a controlling stake. The plant in chittagong has an installed
capacity of 0.7 million tons per year. In 2003, the two companies were amalgamated and the
company's name was changed to Beximco pharma Bangladesh limited. Since 2004, the
company has diversified its product rang's the introducing Beximco medicine into the market.
The company also produce other types of cement namely ordinary porttand cement (OPC).
The company further incressed the capacity of its Kanchpur plant by seeting up another
grinding unit of 0.45 million tons per year that was commissioned in 2008. The company has
also incressed the capacity of its chittagong plant by Installing another grinding unit of 0.750
million tons per year which is on operation from the end of 2011 and the company
inaggurated the cement mill in 2012. Both the plants certified according to the globally
aplicalbe environment management system standards-14001. In 2014, the company installed
another cements SILO which a capacity of 800 mt in it kianchpur plant as a part of its SILO
project which will help to incress the productivity of the company.

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2.2 VISION :
 Corporate Image : Building worldwide growth by building a better word.
 Business culture : Building on local responsibility for internationals success.
 Employee policy : Building our business on the knowledge of our people.

2.3 MISSION :
 Market strategy : Building our growth on a solid base of earning.
 Customer philosophy : Building customer stratification Because their success in our
success.
 Quality standard : Building on quality products to build our reputation.

2.4 VALUE :
 Commitment to environment protection. Building on environmental care also makes
economics sense.
 Commitment to Innovation : Building on new Technology is determines our future
success.

2.5 Board of Directors

Chairman Dr. Albert Scheduer
Managing Director Jose marcelino ugrate
Director Daniel robert Fritz
Director Fong wei kurk
Director Simsockpeng
Independent Director Abdul awal Mintoo
Director Jasim Uddin Chowdhury. FCA
Company Secretary Md. Mostafizur Rahman

2.6 Balance Sheet :

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 Heidelberg cement Bangladesh Limited
Statement on Financial position
As the 31st December 2019

Particulars 2019 2018 2017

BDT.000 BDT.000 BDT.000
Assets :
Non-current
Propert plant and equipment 3,460.204 3,630.693
Capital work in progress 103.737 93.667
Intangible assets 342 626
3,584.283 3,724.986
Current assets :
Inventories 983.226 1,025.789
Trade and other receivable 1,024.479 994.116
Advance deposit prepayments 129.338 57.460
Cash and Cash equivalents 4,050.381 4,34.508
6,187.424 6,447.873
Total assets 9,771.707 10,172.859
Equity and liabilities :
Capital and reserves 565.036 565.036
Share Capital 605.657 605.657
Capital reserve 15.00 15.000
General reserve 5.600 5.600
Dividend equitation fund 4,584.554 5,329.709
5,778.847 6,2524.002
Non Current liabilities :
Supplies credit blacked 2.565 2.565
Guasi equity lon 122.636 122.636
ADP Loan 12.699 12.699
Vetirement benefit obigations 125.122 107.882
Deferred tax liability 574.460 633.476
Total non current liabilities 837.482 879.258
Current liabilities :
Trade and other payable 2,725.727 2,501.360
provision for other liabilities and charges 99.835 87.091
Undimmed dividend 171.790 120.977
Provision for income tax 185.026 60.171
Total current liabilities 3,182.378 2,769.599
Total liabilities 3.992.460 3,648.857
Total equity and liabilities 9,771.707 10,172.859

2.7 : Profile or los and other comprehensive Income :

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 Heidelberg cement Bangladesh Limited
Statement of profit or loss and other comprehensive income
for the year ended 31st December 2019

2019 2018
Particulars
BDT 000 BDT 000
Sales 10,485.084 10,504.500
Cast of goods sold (7,948.110) (8,491.983)
Gross profit 2,536.974 2,012,517
Other operating income
Ware housing distribution and selling Exp. 17,111 19,418
Administrative expresses (373.396) (272.698)
(478.213) (452.210)
Operating profit 1,702.475 1,307.027
Non operating expenses/income (17,939) 171
Net finance income 312.162 434.613
Contribution to works profit participation fund (99.835) (87.091)
Profit before tax 1,876.563 1,654.721
Income tax expenses (494.551) (475.166)
Current year (522.000) (440.00)
Prair year (31.577) (4.173)
Defrred tax income 59.016 (30.993)
Profit for the year 10,401.982 1,179.555
Other comprehensive income
Total comprehensive income 1,401.982 1,179.555
Earning per share (EPS) 24.81 20.88

CHAPTER - THREE

3.1 Data presentation and analysis :

Data analysis is the process of developing answers to questions through the examination
interpretation of data. The basic steps in analytic process consist of Identifying issues.

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determining the availability of suitable data, deeding on which methods are appropriate for
answering question of interest. Data analysis, presentational analysis is essential
understanding result from surveys, administrative and Pilot studies for providing information
on the data groups and analysis. Data were collected from Heidelberg cemen Bangladesh for
the year 2019 and 2018.

3.2 Based on Revenue :

3.2.1 : Gross profit ratio :
Year 31.12.2017 31.12.2018 31.12.2019
Gross profit (BDT.000) 2,307.864 2,012.517 2,536.973
Gross Profit Growth (%) - 13.00 -26.00
Gross Profit Mergin (%) 23.18 19.16 24.20

Comments : Gross Mergin of the company stands at 23.18% in 2019 which incressed from
19.16% in 2018. Please note, GPM was 23.18% in 2017. COGS Againest Sales were BDT
7.649 M in 2016 (76.82%) compered to BDT 8.492 M in 2018 (80% of sales). However
COGS against sales were BDT 7.948M in 2019 [70.80% of sales) which explained the
incress in GPM in 2019 from 2018.
3.2.2 : Net profit ratio :
Year 31.12.2017 31.12.2018 31.12.2019
Gross profit (BDT.000) 1,474,077 1,179.554 1,401,982
Gross Profit Growth (%) - (19.98) 18.86
Gross Profit Mergin (%) 14.80 11.23 13.37

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Comments : Net Profit Margin increased Slightly from 11.23% in 2018 to 13.37 in 2019.
operating cost against sales in 2019 were BDT 951M (9.07% of sales) via-a-vis 7.72% of
operating expencess over sales in 2018. Which mainly explained the Improvement in net
profit Margin. Furthermore, please note. income tax against sales in 2019 has been 4.72%
via-a-vis 4.52% in 2018.

3.2.3 : operating profit ratio :

Year 31.12.2017 31.12.2018 31.12.2019
Gross profit (BDT.000) 2,025,934 1,654,720 1,914,802
Gross Profit Mergin (%) 20.35 15.75 18.26

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Comments : Operating profit margin decreased to 15.75% in 2018 and slightly improved to
18.26% in 2019. However OPM was houvarning at around 20.5% in 2017, The deterioration
is mairly attributed to the sharp incress. in selling and general administration expense and
salary expense in the subsequen year.

3.3 : Based on Investment :

3.3.1 Return on investment :
Details 2019 2018
Return on investment = 1723572 1963234
= ×100 = ×100
NP after tax 10188507 9771707
×100 =16 . 92 % =20 . 09 %
Total assets

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Comments : Return on investment decreased in year 2019 from 2018. (20.09%) to (16.92%)

3.3 :2 : Return on Equity :

Details 2019 2018
NP after tax =
1723572
×100 =
1963234
×100
×100 5591610 5778847
Return on equity = Total captial
=30 . 82 % =33 . 97 %

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Comments : Return on Equity decreased in year 2019 from 2018 (33.97% to 30.82%)

3.3.3 : Return on total assets : ratio :

Return on assets measure the percentage o net changes after tax of the company on its total
assets.
Return on asset = (Net profit after tax : total asset)  100
Year 31.12.2018 31.12.2019
Net profit after tax 16,54,721 18,96,863

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 Total asset 37,24,986 35,84,283
Return on asset 44.42 53.52

Comments : Return of assets has increased in year 2019 from 2018 (44.42 to 53.52)

3.3.4 : Earning per share ratio :

EAT
EPS = No. of ordinary share

Year EPS
2015  22.85
2016  26.09
2017  20.88

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 2018  24.81
2019  26.69

Comments : It is found that EPS decreased of the company fluctuate from 20.88 (2017) to
26.69 (2019).

3.3.5 : Dividend per share :

Year EPS
2015  05.00
2016  38.00
2017  38.00
2018  30.00
2019  3.00

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Comments : It is found that DPS increased of the company fluctuate from 5 (2015) to 30
(2018-2019).

CHAPTER - FOUR

4.1 Summary of finding

 Gross margin of the company stands at 23.18% in 2019 which increassed from 19.16% in

2018.

 Net profit margin increassed slightly from 11.23% in 2018 to 13.37% in 2019. operating

cost Against sales in 2019 were BDT 951 M (9.07%) of sales. Vis-a-vis 7.72% of

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 operating expencess over sales in 2018. Which mainly explained the improvement in net

profit margin.

 Operating profit margin decreased to 15.75% in 2018 and slightly improved to 18.26% in

2019. However, OPM was hovering at around 20.35% in 2018. The deterioration is

mainly attributed to the sharp incress in selling and general administration expense and

salary expense in the subsequent years.

 Return on investment decressed in year 2019 from 2018. (20.09% to 16.92%). Return on

Equity decressed in year 2019 from 2018 (33.97% to 30.82%) return of assets incressed

in year 2019 from 2019 (44.42 to 53.52) it is fond that EPS of the company fluctuate from

20.88 to 26.69 from 2015 to 2019.

4.2 : Recommendation :

This working capital management related recommended are of the statement of year ended

2015, 2016, 2017, 2018 and 2019.

4.3 : Huge amount of IDLE cash :

HCBL have to much Idle Cash because of their efficiency in working capital management

and conservation collection procedure. They were keeping lost of retained earnings in

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Bangladesh and not investing in new project. To any scope they can remit this money by

giving more cash dividends. By giving cash dividends more they add can more there to value

parent company. In 2010 they have delcared that they mare using their own found of Tk 1260

million expand their production by double in chittagong factory.

4.4 Conservation credit policy :

HCBL Credit policy not very flexible. They have huge Idle fund to finance their A/R

But they are not doing this. In this satwed market they have the scope incress ales. But

they are not attemping for it. They are not willing to rate risk. But in Business. They

should maek more fixible credit policy to incress their sales add to agin more market

share.

4.3 : Conclusion :

 The company has maintained a consistent and stable growth other the years.

 Despite the stable growth, the liquidity and leverge ratio have deterioted during 2018-

2019.

 The reason could be attributed to the relatively order for the slowdown in infara structural

development project.

 The company habited fine performance in mavgin management of it product. How every

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 during this time, the company has undertaken BMRE program in small scale. Coursing

and increases in term loan counteract in 2018 after the general election 2019.

 Overall condition of the company is stable at the moment

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